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Feasibility studies in the development of mining projects are fundamental to most investment decisions. It is important that the issues addressed and the degree of detail involved in feasibility studies are consistent with the investment decisions to be taken. Emphasis should be placed on a thorough analysis of critical project parameters prior to detailed investigations being undertaken into other activities which are not relevant to the decisions at hand. Therefore, the issues to be decided upon should be influenced significantly by the stage of development of the project and by the reliability of technical and financial information used in the study. Some of the more critical parameters of feasibility studies are commodity prices, inflation rates and discount rates. Advice is given on the selection of these inputs and also on their application in the feasibility study as the project progresses through its various development stages. The feasibility study should involve not only a formal evaluation of project economics but also an analysis of all project related risks and a comparative analysis of projects competing in

Jan 1, 1983

The purpose of any feasibility study is to determine whether a particular investment or management program will enhance shareholder wealth by, for example, producing an economic return in excess of the cost of equity capital.The threshold rate of return conventionally used in gold feasibility studies is higher than the cost of equity capital, meaning that some viable projects are wrongly described as being sub-economic with their development deferred.Is the industry failing to fully realise its potential? Aside from important technical considerations that determine the cost of exploiting inground inventories, feasibility studies need to incorporate expectations about future gold prices, exchange rates, interest rates and tax rates.Rather than revert to speculation, insights from capital markets give a rigorous framework in which these parameters can be determined for feasibility purposes. Separate questions sometimes, and then inadequately, addressed by feasibility studies include: ò Is it optimum? Many projects are expanded soon after project commissioning - what does this say about the quality of the initial feasibility study? Moreover, does the rate of extraction really matter? ò What is it worth? Although feasibility studies are designed to address viability rather than valuation, such studies are never- theless used by the industry as further evidence that the equity markets have got it wrong again! More likely the problem is with the financial slide rule being used. ò Can it be debt financed? The bankable feasibility study has entered the vocabulary of the gold mining industry but what does it mean? Does it matter anyway how the project is to be Financed?

Jan 1, 1991

By S. K. Kawatra

Feasibility studies of the on-stream analysis of lead in mineral slurries by S. K. KAWATRA. P. Eng. (Canada). Ph.D. (Australia). M.Sc. (India) (Visitor) Instruments for the measurement of lead in mineral slurries by the use of isotopes can be based on the absorption of Iow-energy gamma rays, backscattering of beta particles, or X-ray fluorescence. The merits of each method are discussed, and the reasons for the selection of the beta-backscattering technique are given. A system using this technique has been designed, constructed, and tested on samples of concentrates from an industrial concentrator.

Jan 8, 1976

By J Kok

"In some underground mines it has been observed that the primary focus during feasibility studies is to determine the best way to mine the defined orebody. Some studies have been conducted without sufficient consideration of the ventilation and cooling requirements or the risk from exposure to associated airborne pollutants caused by the mining operations.Following the hierarchy of control to manage risk, numerous problems of the ventilation systems in some underground mines could have been avoided if sufficient consideration was given to the ventilation requirements to manage heat, airborne pollutants and leakage during the feasibility study phase. If the constraints and hazards were well defined and understood at the time of the study, efforts could have been made to eliminate or substitute the hazards to decrease the risk. Some of these problems include but are not limited to: primary fan locations heat loads diesel exhaust ventilation design based on the production requirement fire/emergency response strategies.This paper highlights areas in the ventilation discipline that are sometimes overlooked during feasibility studies. It will also highlight the importance of the Ventilation Specialist during these studies. Experience and knowledge of best ventilation practices must be applied in feasibility studies.As a result of adequate consideration to all ventilation aspects in the feasibility study phase, risks will become lower in terms of health, safety, production loss and equipment downtime caused by heat.CITATION:Kok, J, 2014. Feasibility studies – what should be considered in terms of ventilation, in Proceedings 12th AusIMM Underground Operators’ Conference 2014, pp 197–204 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 24, 2014

By R Aseervatham

The fast tracked mine development strategy attempts to blend feasibility studies and engineering/commissioning functions into a streamlined process. In this compressed process, environmental issues are difficult to control with respect to the optimisation of operational environmental performance. This paper presents a standard mine development process with specific focus on environmental issues, and contrasts this against Rio TintoÆs recent fast track experiences on the Hail Creek project (Australia), the Baranj project (India) and the Gokwe North project (Zimbabwe).

Jan 1, 1999

By F. Milton Lewis, Edward S. Frohling

The information which is required for' a preliminary feasibility study and the additional information which is required for the final feasibility study on a new mineral deposit are discussed. The preliminary feasibility study is made from very little information and at a minimum cost to the owner. However, the outline for the preliminary report is similar to the one used in the final report. In this manuscript, it is assumed that the results from the preliminary study are favorable and the owner authorizes a final feasibility study by an outside engineering company. The type of organization for completing this final feasibility study is described. The final reports includes all information and data relative to this new mineral deposit. This information is presented so that it may be understood by financial people as well as by technical people.

Jan 1, 1978

By Takashi Sasaoka

About 200 M tons of coal were imported into Japan in 2007 and Indonesia was its second largest exporter, accounting for about 30 M tons (12% of the total imported coal). Indonesia produced about 200 M tons of coal, about 75% of which was exported in 2007. As the Indonesian government has decided on an energy policy wherein 33% of the country?s primary energy demand will be met by coal by the year 2025, the domestic demand for coal has increased dramatically in recent years. Over 99% of the coal produced in Indonesia comes from surface mines. However, the conditions of surface mines are worsening each year: the stripping ratio is increasing, approaching the economic ratio, and the infrastructure for coal from inland mining areas is insufficient for such intense mining operations. To meet the demand for coal in Indonesia and the rest of the world, underground mines have to be developed. However, mining engineers and/or miners in Indonesia do not have a lot of experiences, expertise and know-how concerning the plans and operations of an underground coal mine. In addition, the industry faces a lot of problems which include poor conditions such as a steep coal seam, groundwater problem, stability of highwall, etc. Under these situations, a mine targeted in this research attempts to develop a new underground mine from an open-cut highwall because the stripping ratio in the surface mining area has almost reached the limitation of economic value. This paper discusses the possible development of a new underground coal mine from an open-cut highwall by means of field observation and numerical analysis.

Jan 1, 2009

By Takashi Sasaoka

About 200 M tons of coal were imported into Japan in 2007 and Indonesia was its second largest exporter, accounting for about 30 M tons (12% of the total imported coal). Indonesia produced about 200 M tons of coal, about 75% of which was exported in 2007. As the Indonesian government has decided on an energy policy wherein 33% of the country?s primary energy demand will be met by coal by the year 2025, the domestic demand for coal has increased dramatically in recent years. Over 99% of the coal produced in Indonesia comes from surface mines. However, the conditions of surface mines are worsening each year: the stripping ratio is increasing, approaching the economic ratio, and the infrastructure for coal from inland mining areas is insufficient for such intense mining operations. To meet the demand for coal in Indonesia and the rest of the world, underground mines have to be developed. However, mining engineers and/or miners in Indonesia do not have a lot of experiences, expertise and know-how concerning the plans and operations of an underground coal mine. In addition, the industry faces a lot of problems which include poor conditions such as a steep coal seam, groundwater problem, stability of highwall, etc. Under these situations, a mine targeted in this research attempts to develop a new underground mine from an open-cut highwall because the stripping ratio in the surface mining area has almost reached the limitation of economic value. This paper discusses the possible development of a new underground coal mine from an open-cut highwall by means of field observation and numerical analysis.

Jan 1, 2009

By H Dehghan Jan Abadi, K Shahriar

The iron ore district of Gol-e-Gohar (GEG) is located 60 km south-west of the city of Sirjan, in the Kerman Province of the Islamic Republic of Iran. Six exploration targets have been identified and iron ore has been mined from one area with dry and wet concentrate products sold. Prior to mining commencing in 1999, the proven reserves were estimated at 265 million tonnes (Mt) in 2004 and 40 Mt of 100 Mt overburden has since been mined. Of the six exploration targets, the largest anomaly in the GEG district is Deposit No 3. This paper discusses economic considerations focusing on mine extraction and construction of a concentration and pelletising plant to process ore from Deposit No 3 of GEG. Planned capacity of 10 Mt product (concentrate and pellet) per year is targeted to commence in 2011, and nominal capacity by 2014. The economical evaluation and analysis is one of the most important stages in the feasibility study of mine development. Financial calculations including the provision of financial resources, operation period revenue, loss and profit statement, cash flow, net cash flow, internal rate of return and net present value have been undertaken as part of the feasibility study. The feasibility study operating plan assumes a large open pit mine containing proven reserves of approximately 250 Mt. The feasibility study assumed an economic return of $80 per tonne iron pellet. The economic study determined that Deposit No 3 of GEG can be economically developed by open pit mining followed by magnetite separation and flotation to generate iron concentrate and pellets.

Jan 1, 2007

By H. Gharahbagheri, S. Shafiei Zadeh, H. Hassan Nejad, Reza Roostaazad

In this paper, dissolution of vanadium from mining residue, in which vanadium is associated intimately with magnetite ore, was investigated via both bacterial ( aerobic and anaerobic) and fungal activity. Although bacterial activity was tangible, it could not reduce and dissolve vanadium in both aerobic and anaerobic experiments. However, in fungal leaching, after 30 days about 36.9% and 29.7% of vanadium was dissolved for a pulp density of 10 and 30 g/l, respectively. At the end, the concentration of metabolites usually produced by fungal activity was optimized and oxalic acid was chosen as the main agent for the leaching process.

Jan 1, 2014

By El-Ansary M

Estimation of in-situ resources and recoverable ore reserves for the Boddington Gold Mine feasibility study was done by applying an essentially "classical" ore reserve method. This relied completely on customized graphics-based computer software requiring close co-operation and interaction between geologists and mining engineers. All geological and mining outlines were interpreted and digitized manually. Classification of selectively mineable reserves into ore, marginal and waste categories was done using a method involving convolution, devised by Dr S Carras of the Systems Research Institute of Australia, and Mr R Hooper of Kinhill Stearns. The estimation process was complicated by the frequently conflicting requirements of the various joint venture partners. The resulting ore reserve figures therefore satisfied only the most general expectations of each partner.

Jan 1, 1987

By D S. Nicholson, T Marshall

Reserves of high-grade quartz gravel, lignite and timber suitable for the production of silicon metal and ferrosilicon on large scale occur within 40 miles of Bluff Harbour. Undeveloped hydroelectric power resources on the Clutha River are located within 50 miles of the most promising quartz gravel deposits while opencastable lignite, potentially suitable for electric power production, occurs in the same locality as the quartz gravels. A preliminary study of production economics indicates that the commercial feasibility of silicon/ferro-silicon production would depend mainly on the cost of electric power, total capital cost of plant, and the market value of the products. The proximity of Bluff Harbour is advantageous for the export of products.

Jan 1, 1971

Reserves of high-grade quartz gravel, lignite, and timber suitable for the production of silicon metal and ferrosilicon on large scale occur within 40 miles of Bluff Harbour. Undeveloped hydroelectric power resources on the Clutha River are located within 50 miles of the most promising quartz gravel deposits while opencastable lignite, potentially suitable for electric power production, occurs in the same locality as the quartz gravels. A preliminary study of production economics indicates that the commercial feasibility of silicon/ferrosilicon production would depend mainly on the cost of electric power, total capital cost of plant, and the market value of the products. The proximity of Bluff Harbour is advantageous for the export of products.

Jan 1, 1971

By Marshall T, Nicholson DS

Reserves of high-grade quartz gravel, lignite and timber suitable for the production of silicon metal and ferrosilicon on large scale occur within 40 miles of Bluff Harbour. Undeveloped hydroelectric power resources on the Clutha River are located within 50 miles of the most promising quartz gravel deposits while ooencastable lignite, potentially suitable for electric power production, occurs in the same locality as the quartz gravels. A preliminary study of production economics indicates that the commercial feasibility of silicon/ferro-silicon production would depend mainly on the cost of electric power, total capital cost of plant, and the market value of the products. The proximity of Bluff Harbour is advantageous for the export of products.

Jan 1, 1971

By Yoshio Masuda

Cobalt-rich crust in rich Co, Ni, Mm and Pt will be a potential resources for island country such as Republic. Marshall Islands. This study was conducted for Marshall Islands by the President Kabua?s request. It covers crust resources, CLB mining, processing, and economic estimation, and study concluded feasible veiw.

Jan 1, 1991

By L. J. Park, A. D. Thomas

Gladstone Pacific Nickel Limited (GPNL) is proposing to develop the Marlborough nickel deposit in central Queensland and the Yarwun Refinery in Gladstone, Australia. The project proposes to connect the two sites with a DN 500, single pump station slurry pipeline, transporting up to 4 Mtpa of nickel laterite ore as slurry 180 km from Marlborough to Gladstone. Slurry viscosity is a key parameter influencing pipeline design. Not only is the slurry viscosity relatively high, requiring pumping at low concentrations, around 30% by weight, but the viscosity (yield stress and plastic viscosity) increases with shearing or agitation. It is argued that the viscosity changes can be analysed in terms of total energy input, including energy input during grinding. The slurry viscosity is therefore expected to increase along the pipeline and the pumping concentration must be low enough such that the increase in yield stress does not cause transition to laminar flow towards the end of the pipeline. The base viscosity of two ore types is determined using a rotational viscometer for minus 212 micron slurries. Viscosity variations with ore particle sizes of d99 212, 425 and 600microns are investigated. For each of these particle sizes the expected increase in viscosity during pipeline transport is simulated on a laboratory scale by agitation with a turbine mixer in a baffled container to give the same equivalent unit energy input as will occur in the pipeline. Tests were also conducted on the d99425 micron slurry in a 2.7 metre diameter DN 200Wheelstand, rotated for the 23 hour transit time and at a similar relative velocity as in the pipeline. Based on the Wheel stand test results the yield stress is expected to increase by a factor of 3.1during pipeline transit. The preliminary design allows for a reduced pumping concentration to accommodate this increase in yield stress towards the end of the pipeline.

Jan 1, 2007

By Young C. Kim

Use of geostatistics to solve mining problems is gaining importance as the cost of developing new mines is increasing and there is a need to mine more marginal deposits. But, until recently, coal companies have shown little or no interest in geostatistics. However, the stringent quality controls on coal burning has led to a surge in interest in improved methods for estimating clean coal characteristics. Until now, most of the geostatistical applications have centered on the problems of estimating in-situ coal characteristics (Sabourin, 1975; Wood, 1976, 1979; Fang and Stark, 1976; Pauncz and Nixon, 1979; and Knudsen et al., 1980). Little work has been done in applying geostatistics to coal washability, except that by Armstrong (1980). Applying geostatistics to coal washability basically means the estimation of cleaned coal characteristics, with the aid of geostatistics. Cleaned coal estimation plays a very important role in overall emission control strategy, as can be seen by the general flow diagram of such a strategy shown in Figure 1. The scope of this paper is limited to one aspect of the overall emission control strategy shown in Figure 1; namely, the prediction of cleaned coal characteristics using geostatistics.

Jan 1, 1982

By A. Engelbrecht, B. North, B. Oboirien

"There is large electricity generation potential in discard coal, both in stockpiles and current arisings. Power stations with a combined capacity of up to 18 GW electrical (GWe) could be fuelled by discard coal. Modern circulating fluidized bed combustion (CFBC) boilers, with capital costs comparable to equivalent pulverized fuel (PF) boilers, are capable of utilizing discard coal at a high efficiency while reducing sulphur dioxide (SO2) emissions though the use of limestone sorbent for ‘in-situ’ capture.A detailed economic assessment of the feasibility of electricity generation from discard coal, comprising material and energy balances and the construction of a discounted cash flow (DCF) table, shows that it is also potentially attractive from an economic perspective. A base case analysis shows positive net present values (NPVs) and an internal rate of return (IRR) of 21.4%. Sensitivity analyses on critical parameters show that the economic viability is heavily dependent on parameters such as coal cost and the value of electricity. The project becomes unattractive above a coal price of approximately R300 per ton and at an electricity value below approximately 59c per kilowatt-hour (kWh).Site- and project-specific information such as the delivered cost of coal, location and efficacy of sorbents, and effective value of the electricity produced can be used as input to the economic analysis to evaluate siting options and sorbent source options for such a power station."

Jan 1, 2015

By T. Tamenti

The purpose of the project was to conduct a feasibility study to determine if the current operating bottom dump trucks that haul coal should be replaced with rear dump trucks. The engineering availability of the bottom dump trucks was lower than targeted while the operating costs are the highest of all coal haulers within the Anglo Coal opencasts. To determine if it is feasible to replace the current bottom dump trucks with rear dump trucks, a production profile simulation was conducted to determine the number of rear dump trucks that would be required to meet the annual coal hauling requirements. The total capital and operating costs of these rear dump trucks were also determined using a total cost of ownership model. These were compared with the current costs of the bottom dump trucks to determine if it is financially feasible to replace the bottom dump trucks with rear dump trucks. Having considered the capital outlay that would be required to replace the bottom dump trucks with rear dump trucks as well as their respective operating costs, it was concluded that the current bottom dump trucks should be replaced with rear dump trucks. Other factors were considered in coming to this conclusion.

Jan 1, 2007

By T. Tamenti

The purpose of the project was to conduct a feasibility study to determine if the current operating bottom dump trucks that haul coal should be replaced with rear dump trucks. The engineering availability of the bottom dump trucks was lower than targeted while the operating costs are the highest of all coal haulers within the Anglo Coal opencasts. To determine if it is feasible to replace the current bottom dump trucks with rear dump trucks, a production profile simulation was conducted to determine the number of rear dump trucks that would be required to meet the annual coal hauling requirements. The total capital and operating costs of these rear dump trucks were also determined using a total cost of ownership model. These were compared with the current costs of the bottom dump trucks to determine if it is financially feasible to replace the bottom dump trucks with rear dump trucks. Having considered the capital outlay that would be required to replace the bottom dump trucks with rear dump trucks as well as their respective operating costs, it was concluded that the current bottom dump trucks should be replaced with rear dump trucks. Other factors were considered in coming to this conclusion.

Jan 1, 2007