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By John Reilly

Traditional methods of project procurement of have remained virtually unchanged in the U.S. infrastructure construction industry for more than 50 years. The traditional method, Design-Bid-Build (DBB), uses a two-step process that separates planning and design from construction. Design is generally done by the public agency and their consultants and the subsequent construction contract is procured from the private sector, almost always by a “low-bid” approach. This method has worked well for many projects, delivering quality work for the lowest bid price. This is particularly true for those projects where the work, and the public agency’s management procedures, are well understood by the contracting community and there is relatively low uncertainty in the work or conditions, particularly geotechnical conditions for underground construction. However, concerns exist with the DBB process. It is time consuming because all planning and design work must be completed prior to beginning any construction work and it is of concern for complex or large projects, plus those with significant risk, where the separation of design and construction, in conjunction with pressures resulting from the low-bid environment, often result in substantial cost and schedule increases. Frequently, these increases occur in a non-productive, inefficient, adversarial work environment leading to claims, disputes and costly litigation (Quick 2002).

Jan 1, 2007

By T Hayward, G Lane, M Phillips

In December 2004 Phu Bia Mining Ltd commissioned Ausenco International Limited to conduct a feasibility study for its Phu Kham copper-gold project located in Laos. The feasibility study for a mining and processing operation treating 12 Mtpa of ore averaging 0.56 per cent copper and 0.25 g/t gold to produce an anticipated annual average 200 000 t of concentrate containing 25 per cent copper was completed in early 2006. The plant design incorporates a single processing line and includes a gyratory crusher, overland conveyor, coarse ore stockpile, SAG and ball mill grinding circuit, flotation circuit including regrind and three stages of cleaning, concentrate dewatering and concentrate load-out facilities. The Phu Kham copper-gold mineralisation comprises two principal styles: stockwork-disseminated and banded-massive sulfide within skarn limits. Primary copper in both mineralisation styles occurs as chalcopyrite and secondary copper sulfide minerals. Skarn includes the copper and gold mineralisation contained in pyrite, silicate, magnetite and haematite skarns, and in quartz-pyrite altered sediments. Both the stockwork-disseminated and banded-massive sulfide ores contain relatively high proportions of pyrite relative to the copper and gold mineralisation. Thus, the flotation metallurgy of the Phu Kham orebody is characterised by the need to reject a high proportion of the pyrite during differential flotation to yield a concentrate grade of approximately 25 per cent copper. The rejection of pyrite is accompanied by the rejection of some copper and gold and can result in modest metallurgical recovery. Consequently, the greater the pyrite content, the lower the expected copper and gold recoveries. The relative pyrite content is expressed on the basis of sulfur:copper ratio. For Phu Kham ores, the sulfur:copper ratios are in the range eight to 14 on a blended annual basis, but can be greater than 20 in the skarn components. Higher grades of copper and gold are also present in the skarn mineralisation. The design concepts for the concentrator were influenced by the need to provide a low capital cost approach for the project due to the relatively low grade of the ore and the modest metallurgical recovery. The concepts used to minimise capital cost whilst retaining operating and maintenance flexibility are discussed, together with the metallurgical challenges imposed by the high pyrite mineralisation.

Jan 1, 2007

By M. Xiao Bo

In recent years, there has been a heightened interest in the hydrometallurgical processing of sulfide ores and concentrates (especially copper sulfide ores and concentrates) mostly in the USA and Chile. Currently, hydrometallurgical operations account for about 30% of the primary copper production. In the present research, the leaching phenomena of IOCG (iron-oxide hosted copper-gold) ores and concentrates were studied. The IOCG ore, which is characterized as having a predominant amount of magnetite with fine chalcopyrite, is currently the center of attention for new copper resources. Heap leaching of IOCG ore is desirable because of its low cost. However, the leaching characteristics of the ores and concentrates and the mechanisms of copper leaching require investigation. This study defines the factors, which affect the leaching operation, such as the ORP, pH and oxidizing agents. Based on these results, the optimal leaching conditions are provided for pilot column leaching test and ultimately, commercial operations.

Jan 1, 2007

By R Polmear, G Mauger

You wouldnÆt start excavating before testing core samples, so why would you approve a project plan before all factors have been identified, reviewed and addressed? Even a champion sports team made up of the best players canÆt produce optimal results without a well understood and agreed game plan. Could an F1 racing team produce their outstanding performance without rigorous evaluation and testing of the factors for successful performance? Why would we expect a capital works project team to be able to get it right without an understanding and an involvement in setting and implementing the overall game plan and without an understanding of all stakeholder requirements? For International PowerÆs Hazelwood (IPRH) mine in Victoria, the challenge was development and delivery of a 40 year mine plan, ultimately involving relocation of existing mine operations into an adjacent new coal field, land acquisitions and major environmental and other approvals to allow diversion of three streams, a highway, an Over Dimension route and other infrastructure in a political and environmentally sensitive atmosphere. The lessons from International Power HazelwoodÆs (IPRH) experience are: that the clear set of project principles and guiding values ensured delivery of a robust plan; a robust plan can withstand significant change; and value management (VM) played an important role in providing assurance, to all, that the plan was sound at both the strategic and micro levels. This Hazelwood mine project included five major VM workshops. The first was a critical review process in addition to design and cost reviews. This VM workshop was used to analyse, at a high level, the preferred coal mining sequence and design concepts, together with the interaction between design elements, risks and costs. In addition to this, the workshop provided an agreed common pathway for all downstream decisions. A second VM study was conducted to ensure that the proposed plan and design for relocation of the conveying systems from the existing mine into the new field were planned for optimum achievement from a whole of life cost, time, operational and maintenance perspective, plus the logistics of continuing operations while relocating assets. A third study followed to review the Conveyor Transfer Alliance and review functional design. A fourth VM study workshop was formed at the start of Phase 2 Alliance to ensure that the best value for money was being achieved through the current design, schedule and project arrangements and that all interfaces between parties had been reviewed and responsibilities were clear and understood. Other studies are outlined later in this paper. This paper details the evaluation criteria and processes used in the project evaluation that led to the WestField Mine Development.

Jan 1, 2007

By J. G. Bruwer

Paper written on project work carried out in partial fulfilment of B Eng Met Surface coatings persisting on zircon particles, after being leached in an acidic solution, are believed to be the cause of zircon misplacement during the electrostatic separation of heavy mineral beach sands. Electrostatic separation is employed to separate non-conductive zircon particles from more conductive rutile particles. Surface coatings on zircon particles are believed to render the non-conductive zircon particles more conductive, resulting in the contamination of the more conductive rutile stream with zircon particles. Resistivity measurements, X-ray photoelectron spectroscopy (XPS) and scanning electron microscopy (SEM) were performed to compare the surface characteristics of zircon particles found in the different product streams following electrostatic separation. XPS analysis showed that no significant difference exists in the outermost layer of the zircon particles found in the different streams. SEM analysis showed the existing surface coatings on zircon particles from different product streams to have similar chemical compositions. Resistivity measurements confirmed the results obtained from both the XPS and SEM analysis; no significant differences in the resitivities were observed. From the results obtained it suggests that surface coatings present on zircon particles are unlikely the primary cause of zircon misplacement. Zircon losses can possibly be a result of machine related aspects. Key words: XPS; SEM; resistivity measurements; electrostatic separation; heavy mineral sands.

Jan 1, 2007

By G A. Davis, D G. Laughton

The great variability of mineral and energy prices has motivated some governments to incorporate a windfall profits tax into their mineral taxation regimes. Windfall profits taxes are a means for governments to capture additional mineral revenue when mineral prices are considered higher than some historic level. Governments need to be aware of the effects of such contingent taxes on the exploration, development and operating decisions of mining companies. Mining companies need to be able to calculate the full impact of windfall profits taxes on the economics of their projects. This paper examines the valuation of a multi-phase copper-gold project in the presence of a windfall profits tax. Real options Monte Carlo simulation is used to characterise the different exposures of the mine owner and of the government to the risky cash flow streams that they receive from the project. The results highlight that Monte Carlo simulation paired with the real option valuation method is able to account appropriately for the differing risk exposures, while the traditional discounted cash flow valuation model is not. Our key conclusion for governments and mining companies is that the impact of contingent tax and royalty terms can and should be assessed using advanced valuation techniques, and the results used to improve contract designs under the constraint of actual and perceived fiscal system stability.

Jan 1, 2007

By M. Stefanakis

Respect for the people is one of the main values of S&B. Such respect needs to be manifested by actions ensuring the bodily and spiritual integrity of personnel in pursuing their work. The ultimate target is to achieve zero accidents by developing the culture and infrastructure required to support it. Within this framework, the following proactive safety practices were introduced in 2004 and are implemented at S&B Greek sites: (a.) Management Safety Visits (MSVs) of shop floor operations to address safety attributes of work guidelines, (b.) Monitoring compliance with critical work guidelines, using a ?safety barometer? tool. The proactive nature of both above systems, facilitates communication with employees on safety behaviors and their adoption in our facilities at Milos and Fokis, has been successful. Above all, these practices corroborate the management?s concern for the people and its commitment to continuously improve the working environment.

Jan 1, 2007

By N. Kubo

Sumitomo Toyo Copper Smelter and Refinery was commenced in 1971, and its production capacity of sulfuric acid was 550tpd at the beginning. In 2001 Toyo Copper Smelter and Refinery projected to expand its copper production capacity to 450,000tpy, and now the project is still in progress. To achieve this expansion project, 4,000tpd of sulfuric acid production capacity is necessary to the acid plant. So as a part of this project, the construction of the new converting and absorbing line and the improvement of the existing converting and absorbing line were carried out from 2001 until 2005. Then the production capacity of these 2 lines has already reached the target, 4,000tpd of sulfuric acid. Moreover, at the design of the new line, we adopted several latest technologies and materials in order to construct the world's leading acid plant. Basing on the operation performance of the new line, we have improved the existing line in 2005. Both of these 2 converting and absorbing lines are working quite well and contribute to big energy saving and excellently stable operation. Cu2007

Jan 1, 2007

By M. Hagfors

When establishing an underwater testing site for the energy measurements of the explosives, the dimensions of the measuring pool have to be measured to find out what is the maximum weight for the test charge. Secondly one has to decide the distance between the pressure gauge and the shooting point. Thirdly the pool has to be calibrated because of the reflections of the explosions by measuring the bubble periods of the calibration charges. The calibration shots can also be used to estimate the minimum weight of the explosive charge for the reliable energy measurements by calculating the shock, gas heave and total energy values and their standard deviations.

Jan 1, 2007

By N Bennett

This paper examines the practical and economic benefits of using bulk emulsion explosives in underground development mining; compared to ANFO, ANFO derivatives and packaged explosives. The key economic benefit of bulk emulsion is the replacement of relatively high cost packaged explosives with a bulk product. Key practical benefits include water resistance, improved coupling of explosive, reduced toxic gas production, increased shock energy and improved manual handling through the use of bulk products. Each of the benefits is proven using a variety of measurements and field results in order to quantify them. Where possible, dollar values are determined so that the benefits can be shown to translate into savings for the mine operator. The results show that, despite the difference in price between ANFO and bulk emulsions, bulk emulsions are most capable of delivering the lowest total cost of blasting. The savings potential of the introduction of bulk emulsion systems can result in an improvement in drill and blast costs for a mine operator, or a significant increase in profit margin for a contract mining company.

Jan 1, 2007

By P. Roy

Smelting or converting of sulphide concentrates and mattes in a batch operation presents a challenge when directing the off- gas to a conventional acid plant. The Hindustan Zinc Ltd. (a division of the Vedanta Group of companies) Chanderia Lead Zinc smelter was presented with such a challenge that was met with the adoption of the Cansolv® SO2 Scrubbing System. The Ausmelt top submerged lance technology used at Hindustan Zinc generates a furnace gas stream that containsbetween 0.1 vol% and 12 vol% SO2 during the three stages of batch smelting. Cansolv® SO2 Scrubbing Technology captures the SO2 to ensure that treated flue gas exits the facility at a concentration below 100 ppmv SO2 and it releases SO2 in a controlled fashion, to more closely match the needs of the existing acid plant. The application of a regenerable scrubbing system to capture SO2 from a batch-operated furnace and convert it to acid in a conventional acid plant was a first of its kind in the world. This paper provides an update on the design and operation of the Hindustan Zinc SO2 recovery system and suggests two improvements to the basic flow sheet that optimize the cost of SO2 scrubbing further.

Jan 1, 2007

By S. Weiss, E. Espinoza

The El Sauzal gold-silver deposit is a high-sulfidation, epithermal precious-metals deposit hosted by an east-dipping sequence of dacitic and rhyolitic pyroclastic and debris-flow units of probable Oligocene age. Total gold production since startup in late 2004 is approximately 450,000 oz. of gold. Above the sulfide boundary gold is mainly disseminated as small grains interstitial to alunite, kaolinite and quartz. The majority of the ore is found in quartz-alunite-kaolinite altered rock that mantles tabular to irregular silicic cores of vuggy, residual quartz ±kaolinite ±dickite. Grade domains are modelled as subhorizontal to east and southeast-dipping. Higher-grade domains cut across alteration zones and also coincide with transitions from vuggy quartz to quartz-alunite-kaolinite. The highest grades are commonly found marginal to vuggy quartz in transitional, hematite-rich quartz-kaolinite and quartz-alunite-kaolinite rock.

Jan 1, 2007

By S. E. Pérez-Fontes

An experimental study on the oxidation of chalcopyrite (CuFeS2), pyrite (FeS2), covellite (CuS) and chalcocite (Cu2S) particles was conducted by means of differential scanning calorimetry (DSC) and thermogravimetric analysis (TGA) techniques. The oxygen concentration in the process gas was set to 40% and 70% (by volume) and a heating rate of 40°C/min was used. Response variables included the temperature of incipient reaction, the total exothermic heat of reaction, particle mass, morphology and mineralogy of the reacted particles. Based on the experimental data and phase stability calculations, reaction mechanisms were proposed to represent the behavior of the particles during oxidation. The reaction mechanisms were verified by X-ray diffraction (XRD) analyses of the oxidized particles and by thermochemical and mass balance calculations to reproduce the DSC and TGA data. Overall kinetic models were developed to represent the evolution of the exothermic heat of reaction as a function of time.

Jan 1, 2007

By Helmut Westermayr, Michael Tergl

DESCRIPTION OF PROJECT Geographic Setting The Kops II plant is a pumped storage scheme of the hydroelectric power producer ‘Vorarlberger Illwerke AG’ which is currently under construction in the Austrian Province of Vorarlberg. The plant is located at the end of the Montafon valley and will be fed with water coming from the Silvretta mountain range (Figure 1) Description of Plant The Kops II plant shall be operated as a pumped storage plant with three highly flexible and quickly controllable power generating units. Each unit shall have a capacity of 150 MW and shall be equipped for both turbine operation and pump operation. The Kops II plant uses the existing Kops Lake as upper storage reservoir and the existing Rifa balancing reservoir as lower storage reservoir. All major plant components of the Kops II scheme are located below ground. Total investment costs areapprox. 360 million Euro. Construction Lots The construction works for the Kops II plant, which were subdivided into three lots, were launched in September 2004. It is planned that the first power generating unit shall go on line in the year 2007. The completion of the overall project and the operation start-up of the second and third unit are envisaged for the year 2008. Lot 1—Pressure Tunnel. The 5.5-km-long pressure tunnel forms the connection between the Kops Lake and the beginning of the pressure shaft. The tunnel was excavated by the use of a double-shield TBM. Lot 2—Pressure Shaft and Surge Chamber. The approx. 1.1-km-long pressure shaft was excavated by TBM, advancing from bottom to top. Featuring an inclination of80%, the pressure shaft overcomes a difference in height of approx. 700 m. Lot 3—Power House Cavern and Tailrace Structure. The power house cavern, which is being built approx. 150 m inside the mountain, forms the core of this plant. The power house is designed to accommodate three power generating units, and the transformer cavern is forseen to accommodate three transformer units. The tailrace structure serves the purpose of conveying the water to the lower storage reservoir during turbine operation and as water intake during pump operation (Figure 2).

Jan 1, 2007

By Zou Dingxiang

Rock blasting in the project of “Site Formation and Associated Infrastructure Works at Choi Wan Road and Jordan Valley” is the largest urban blasting project in the history of Hong Kong and also is rare in the world. More than 6.2 million of in-situ rock has to be excavated by blasting. The site is located in the center area of eastern Kowloon peninsula, surrounded by highways, registered cut slopes, high-rise residential buildings, MTR subways and the public utilities. The complex situations bring great difficulties and risks to the blasting works. A bird-view photo of the site is shown on Picture 1.

Jan 1, 2007

By J. G. Wiese

Reagents are added to the flotation process of Merensky Reef ores to achieve specific functions that enable the separation of valuable minerals from gangue minerals on the basis of the difference in their surface properties. However, due to the complexity of the process, the various interactions that occur as well as the incomplete liberation of the ore and range of minerals present, it is difficult to quantify the behaviour of each of the reagents. More specifically, changes made to achieve a particular outcome may have secondary effects that can override the desired effect. If all the effects and interactions can be accounted for, it is possible to manipulate reagent suites and obtain better overall metallurgical performance. This paper discusses the effect of the addition of copper sulphate at different operating points of the recovery of the sulphide minerals. Batch flotation tests indicated that the recovery of chalcopyrite was not affected when operating conditions were varied, whereas pentlandite recovery was strongly affected by the point of reagent addition, and pyrrhotite recovery was enhanced by copper sulphate addition, irrespective of the point of addition, with the extent being dependent on the ore source. Floatable gangue was activated by copper sulphate in the presence of the dithiophosphate collector. Froth stability was also affected by copper sulphate addition.

Jan 1, 2007

By E. Best

In 2003, Phelps Dodge Mining Company decided to pursue the design and construction of a Central Analytical Laboratory to provide chemical analyses for their Arizona and New Mexico operations. This centralized approach was selected in place of refurbishing six (6) older laboratories that operated at the various Phelps Dodge sites, and which would not have permitted full automation and use of robotics. The new lab was designed by the Process Technology Center (PTC) Material Characterization Group in cooperation with IMP Group. The Central Analytical Service Center (CASC) encompasses fully automated sample preparation of blast holes and geological samples weighing up to 15 kg/sample. The CASC also includes the first "wet chemistry module" worldwide to be operated by robotics systems to perform Total Cu, Acid Soluble Cu, and Quick Leach Tests (QLT), and a fully automated lab for electrowon copper cathode. The new lab also offers flexibility for handling specialty samples and analyses by either semi-automated or manual mode. Data handling and transfer is accomplished using the commercially available StarLIMS system. Commissioning was accomplished within five (5) months of startup during which the CASC also handled 86% of a full production load. The 24/7 lab operation has already exceeded its design capacity, has achieved considerable savings in operating cost, reduced sample preparation errors, and significantly increased analytical quality.

Jan 1, 2007

By N. Magdalinovic

This paper analyzes the basic elements important for sustainable development in the sphere of metal mineral raw materials and offers one of the possible ways of defining the index of sustainable development.

Jan 1, 2007

By G MacDonald, B Forsyth, D Corkery, T

An investigation was carried out at Diavik Diamond Mines Inc (DDMI) to identify and quantify the mechanisms through which ammonium nitrate (AN) was entering the mine discharge water. The goal was to develop and complete an investigation of the potential AN loss mechanisms in order to assess their contribution to ammonia in the mine water system. The initial phase of the project involved the collection and analysis of blasting and water quality data that were used to determine the mechanisms by which the ammonia enters the mine water system and to establish a baseline data set for comparison with results from future trials designed to reduce AN loss. Three potential options for reducing AN loss were identified through the first phase of the project. The second phase of the project involved conducting a series of monitored trials with changes made to the drilling and blasting process. The results of these trials were compared to the baseline data set to determine if the changes introduced for the trials had reduced AN losses while producing satisfactory blast results. This paper describes the process for the collection of the baseline data, provides an analysis of the resulting data, discusses the changes made to blasting operations in order to minimise AN loss and describes the results observed subsequent to these changes.

Jan 1, 2007

By D. Jepsen

Land access and tenure certainty for exploration and mine development is absolutely critical to the foundation of a healthy, sustainable and environmentally-sound mineral exploration and mining sector. Without certainty, mineral exploration will be severely eroded, resulting in reduced possibility of discovering and developing new mines. The development of positive relationships based on a shared commitment of understanding, mutual respect and trust by First Nations and the mineral sector can provide this increased business certainty and social and economic benefits for local First Nations. As a sector, we face many challenges in regard to building relationships with First Nations. The root solution to addressing these challenges lies in recognizing and understanding the unique cultural differences that exist between indigenous people and the business community. From the Canadian perspective, the First Nations culture differs vastly from non-Aboriginal culture. It is equally as imperative that cultural differences be acknowledged and respected at home as they are when seeking business opportunities in other countries. The traditional “business” approaches and relationships that one understands and incorporates with one’s contractors, legal counsel, investors and Board are generally not be the best approach for the introductory and subsequent meetings with indigenous peoples. This paper is written from the perspective of my experiences accumulated over the past ten years, first as Manager of Aboriginal Affairs for one of the largest forest companies in British Columbia and now, as President and CEO of the Association for Mineral Exploration BC (AME BC). My opinions are not necessarily endorsed by AME BC. Before the gritty issues of consultation and benefit sharing are dealt with, it is worthwhile to clear up the confusion surrounding terminology. “Indigenous Peoples” is used in a global context; “Aboriginal Peoples” is used in the Canadian context therefore includes Métis, Inuit and First Nations Peoples. The term “First Nations”, in the context of British Columbia, perhaps has its roots in the fact that treaties have largely not been settled. Therefore it is important to reaffirm that British Columbia was not discovered. First Nations have resided in British Columbia since time immemorial.

Jan 1, 2007