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By R. S. Shoemaker, R. M. Darrah

Expanded markets for copper in the past few years and a consequent search for new ore bodies have revitalized the widely known but seldom applied method of producing copper called heap leaching. Heap leaching is defined here as the process applied to oxide ores which have been mined solely for the purpose of leaching. In this case, all costs of mining the ore become a part (and a substantial one, as will be shown) of the cost of the copper produced, whereas in dump leaching the mining cost has already been accounted for as a stripping cost for the sulfide ore. Of course, with newly opened ore bodies, stripping costs may be divided through accounting procedures, between the copper produced by the mill and that obtained by leaching, but in general this type of operation must be economic on the basis of the sulfide ore alone. Heap Leaching Requires Low Capitalization Heap leaching, as a beneficiation method, is unique in that it is the only process used for the recovery of a metal in which the time involved from mining the ore to metal production is measured in months instead of hours or at the most, days. Then too, after the ore body has been depleted and mining has ceased, metal production will continue for some substantial period of time. Heap leaching is also unique because unlike any other method of beneficiation, metal recovery cannot be accurately forecast ahead of time and recovery will never approach that of a conventionally milled sulfide ore or even that of a vat leached oxide ore. Counter-balancing this drawback, however, is the relatively low capital expenditure necessary to put a heap leaching operation into production and the consequence that smaller ore bodies which would not support the higher capital cost involved in a vat leaching plant can be made into producers. Stated more simply, in heap leaching the operator accepts low recovery in exchange for low capital costs and low break even point. Whether the operator chooses vat leaching with its higher recovery and higher capital costs, is a mater of economics which depends in part on the nature of the ore to decide. For instance, an ore that will vat leach in 7 to 10 days using 7 pounds of sulfuric acid per pound of copper produced might use double or triple that amount of acid during the months that are required for heap leaching.

Jan 12, 1968

By R. S. Shoemaker

Expanded markets for copper in the past few years and a consequent search for new ore bodies have revitalized the widely known but seldom applied method of producing copper called heap leaching. This term should be differentiated from dump leaching in that the latter is applied to dumps of mixed oxide and sulfide ores (although either may predominate) that have been too low grade to beneficiate and have, therefore, been stripped off the higher grade underlying sulfide ores. Heap leaching is defined here as the process applied to oxide ores which have been mined solely for the purpose of leaching. In this case, all costs of mining the ore become a part (and a substantial one, as will be shown) of the cost of the copper produced, whereas in dump leaching the mining cost has already been accounted for as a stripping cost for the sulfide ore. Of course, with newly opened ore bodies, stripping costs may be divided through accounting procedures, between the copper produced by the mill and that obtained by leaching, but in general this type of operation must be economic on the basis of the sulfide ore alone. Heap leaching, as a beneficiation method, is unique in that it is the only process used for the recovery of a metal in which the time involved from mining the ore to metal production is measured in months instead of hours or at the most, days, Then too, after the ore body has been depleted and mining has ceased, metal production will continue for some substantial period of time. Heap leaching is also unique because unlike any other method of beneficiation, metal recovery cannot be accurately forecast ahead of time and recovery will never approach that of a conventionally milled sulfide ore or even that of a vat leached oxide ore. Counter-balancing this drawback, however, is the relatively low capital expenditure necessary to put a heap leaching operation into production and the consequence that smaller ore bodies which would not support the higher capital cost involved in a vat leaching plant can be made into producers. Stated more simply, in heap leaching the operator accepts low recovery in exchange for low capital costs and the break even point, that is, where the operator should go to vat leaching with its higher recovery and higher capital costs, is a matter of economics and also, to a great extent, a matter for the nature of the ore to decide. For instance, an ore that will vat leach in 7 to 10 days using 7 pounds of sulfuric acid per pound of copper produced might use double or triple that amount of acid during the months that are required for heap leaching.

Jan 1, 1968

By John J. Borkert, Carl E. Gerity

In situ mining offers a new and proven method of exploiting sedimentary uranium deposits. The feasibility and economic evaluation of exploiting a uranium reserve by either open pit or underground mining should also include a similar study for in situ mining. This report compares the economics of mining several hypothetical uranium deposits at various depths, grades and reserve sizes by open pit and in situ mining. The evaluation process evolved establishing, where possible, common geological and logistical parameters to both methods of mining. The various assumptions that are unique to either open pit or in situ mining were also drafted, where possible, as equal and common functions to be used in each economic evaluation of the reserve models. After the various parameters were defined, they were programmed to an economic analysis of the various hypothetical uranium deposits by the selected mining method. From the vast array of cost evaluations, total capital and operating cost per pound U308 produced, DCF-ROI, and total net profits before State and Federal taxes were selected as the most meaningful results to compare. From the various geologic parameters used, it was determined that the economic viability of a mining venture is most sensitive to a depth-grade thickness ratio. The three selected evaluation products were plotted against the various depth-grade thickness ratios of the hypothetical uranium deposits. The results of the economic cost analyses show in situ mining generally to be a better method to maximize total net profits and to maximize return on investment.

Jan 1, 1979

By Scott A. Stebbins

Cost evaluation models constructed specifically to evaluate the economic potential of an individually motorized railcar system of ore and waste transport demonstrate that the approach may be considerably more cost effective than traditional rubber-tired haulage methods. The system design places a motorized drive unit on each railcar, as opposed to the more common configuration in which a series of un-motorized cars trail behind a single locomotive. These motorized railcars are directed to various load and dump points by a computerized dispatch system, and as such have the advantage of operating unmanned. In addition, the tractive effort of the rail-type drive system is noticeably more efficient than that of the rubber-tired mode of transport. The savings are realized primarily through comparative reductions in the requirements for labor and, to a lesser degree, energy.

Nov 1, 2011

By Frank H. Skelding

A new, large mine is about to be born. Many years and millions of dollars have been invested in exploration. An orebody has been found and proven. All necessary political and legal work to establish rights and conditions for development are complete. The feasibility studies are favorable. Financing has been arranged. Board approval has been given to proceed. The time has come to engage a contractor to design and build the new facilities in a location, as is the common case today, far re¬moved from the centers of advanced technologic development where the minerals will ultimately be used. A select list of Engineering and Construction (E&C) companies is asked to prepare proposals. At this point the common viewpoint among mining companies is that the company's sole remaining problem, a major one to be sure, is to select qualified contractors to design and build the project at the lowest cost and shortest time possible so that production can start generating a return on investment. The purpose of this discussion is to explore the viewpoint of the large E&C contractor toward such projects. It differs in important ways from that of the client mining company and it is these differences and the reasons for them that must be understood by the client if severe difficulties and misunderstandings with the contractor, starting at the beginning of contract negotiation and continuing through design and construction to final startup are to be avoided or minimized. Often enough, the difference is in degree, not kind, which only serves to obscure the fact that a difference exists.

Jan 1, 1975

By Bianca Foggiatto, Marcos Bueno, Rajiv Chandramohan, Eddie McLean, Greg Lane

"With the increasing depletion of high-grade ore deposits, smarter mineral processing solutions are required to achieve sustainable and economic methods for mining and processing low-grade deposits. In order to make the treatment of low-grade deposits economically viable, large quantities of rock need to be mined and processed. The associated infrastructure costs (power, water supply, accommodation and support services, waste storage) result in a substantial penalty on the project, from both capital and operating cost perspectives. As a consequence, the challenge for the mining industry is to overcome the associated rise in energy and water consumption as well as increased project complexity when processing large amounts of low grade ore. Ore sorting technologies have been used for many years, predominantly on small projects, enabling the upgrade of marginal ores. Several sorting methods based on characteristics including specific gravity, radiometry, colour, particle size, grade and other detectable physical characteristics have been employed. The challenge for large low-grade ore bodies is to crush and sort at coarser rock size in order to minimise specific energy consumption in comminution and to reduce waste disposal costs. For large projects, the understanding of the economic impact of ore sorting is limited. The economic drivers include plant head grade improvement; sorting infrastructure capital, operating and maintenance costs; waste material handling and other environmental costs related to waste disposal. This paper analyses the economic impact of ore sorting in a large mineral processing operation. The focus of the analysis is to compare NPVs for a circuit including screening and ore sorting stages. A project for processing an Australian copper sulphide ore is considered as an example for this study."

Jan 1, 2014

By James H. Dye, N. E. Norman

There will be about 300 raise boring machines used worldwide by late 1981, attesting to the acceptance of this drilling system by the mining and construction industries. Over the past few years, many articles have cited the advantages of raise boring: •improved safety; •faster completion of the raise; •elimination of sublevels; •cost reductions; •better structural characteristics of the opening; •labor reduction; and •noise abatement. The relative importance of each advantage varies from mine to mine. When analyzing the total economics of raising, each advantage must be considered. The factors having the most effect on economics are fixed costs, direct costs, and comparative savings versus conventional methods.

Jan 3, 1981

By A. P. LeBis

This article attempts to relate the concept of utility to the risk involved when only a small number of projects (compared to their probability of occurrence) are accessible to a firm and to quantify utility when other financial and physical parameters are known.

Jan 1, 1978

By Fritz Eder, Rick Hendrickson

The quantities requires decisions growing demand for large of oxygen by gold smelters today that economic and operational be made regarding their selection providing electrical power, water, communications, sewage facilities and access roads. Liquid storage and supply system is of the system. decisions most appropriate oxygen supply Key factors affecting such are discussed in the following.

Jan 1, 1990

By John Gill

THE purpose of this paper is to invite attention away from the obvious, direct monetary costs of oil-field overdevelopment (as dis-tinguished from "social costs") to a consideration of the role played by the exercise of freedom to create even allegedly excessive1 plant facilities in contributing to the maintenance of equilibrium in the whole economy and in promoting material progress. The obvious and most commonly discussed effect of overdevelop-ment of oil fields is illustrated by the allegation that already the excessive development of the East Texas field has cost upward of $162,000,000;2 in other words, the drilling of 12,500 wells more than the number esti-mated as the requirement for economical recovery of the reserve has unnecessarily raised the total cost of development that amount. Many other illustrations of so-called excessive development of oil pools could be presented. Some of them, like Cushing, Powell and Long Beach, might be drawn from the era antedating widespread discussion in the trade of such matters as optimum well spacing, reservoir energy, the conservation rate of depletion of reserves, etc. Numerous other cases can be found in the records of the current era, which began with the introduction of rationalized restriction of production. Besides East Texas, there may be mentioned Oklahoma City, Centralia and, more recently, the town-lot development of Bloomingdale, Michigan.

Jan 1, 1939

By Scott K. Palm

The initial intent of the Hazard Communication Standard (HCS) was to improve worker health by providing more information about the hazards of chemicals used in the workplace. However, the impact of the HCS goes well beyond worker right-to-know. There are direct costs associated with compliance. In addition, labelling and hazard communications can provide a competitive advantage to producers of minerals that have not been identified as hazardous. Often, the lack of hazardous information about a substance is due to the lack of scientific study, rather than an indication of product safety. Currently, industry and regulators sometimes give known hazards greater weight than unknown risks.

Jan 1, 1991

By E. C. Wright

FOR many years the cost of making pig iron and steel in the Birmingham district has been about the lowest in the United States. The close proximity of the important raw materials such as coal, iron ore, limestone, and the large available scrap supply made it possible to assemble all of the important ingredients necessary for steel-making with only nominal costs for transportation. Both iron ore and coal were being mined in this district at one time for about $1 per ton from underground operations. At that time mining wages were low everywhere and the labor rate in the South was considerably below that of other mining districts. This situation persisted until the emergence of labor unions as an economic and political force, emigation of southern labor to northern plants, and continued growth of industry in the South in the years following the depression of 1932. Since that time union organizing of miners and steel workers throughout the nation has increased labor costs in mining and steelmaking. This influence has been felt particularly in underground mining operations since the proportion of labor cost to total cost is still high. The previous advantage in basic labor rate in the South has been almost entirely eliminated by the equalization of labor rates in basic industries by national unions.

Jan 12, 1950

By D. V. Bush

There has been a great deal of evaluation and discussion on the economics of semi- autogenous grinding versus conventional grinding circuits. This paper will not discuss the merits of one system over the other, but rather will discuss the Henderson Mill's approach toward achieving the most economical milling conditions in its existing SAG mills.

Jan 1, 1985

By Hugh Douglas

In the past two years recent increases in silver prices over levels that prevailed for many years have changed supply/demand patterns. On the supply side, a silver mining boom is in progress in the United States and elsewhere. On the demand side, traditional uses of silver by individuals are dropping while industry is conserving. These changes will alter the supply/demand balance and bring about more moderate rises in silver prices, which in turn will impact the mining industry.

Jan 1, 1981

By L. R. Verney

A number of interrelated factors influence the economics of the sulphide smelting of copper, lead, zinc and nickel. This paper discusses these factors, mainly from a US point of view, and shows how they affect the cost of construction and operation of new and existing plants. The paper shows how metallurgical plant construction costs and the consumer price index have increased at a much faster rate than metal prices thereby making some metal mining and production operations within the USA, Canada and the EEC less profitable than operations elsewhere. This in turn inhibits new "grass roots" metallurgical developments. It is explained how retrofit of existing pyrometallurgical plants can be a more viable development than the construction of "green field" plants, especially if such retrofit improves, energy efficiencies, overall operating costs and reduces emissions of sulphur and other toxic wastes. Some aspects of metallurgical plant operation are examined, especially for copper and nickel, to show how changes in operating practices may develop in order to improve overall smelting economies, especially when developed in conjunction with objective retrofit. The paper also examines some financial aspects, especially insofar as the disparity between terms for loans offered to third world countries and the USA and the EEC are concerned and also comments upon the need, especially within the USA, for legislation to permit rapid depreciation of capital. Specific comments are made about environmental aspects, including the lack of uniformity of pollution control legislation and how environmental considerations may have some bearing of the location of future smelting operations.

Jan 1, 1983

By Lawrence S. O’Rourke

Pricing for tantalum raw materials experienced explosive increases in the period 1978-1979, and-similar declines over 1980-1982. The causes for this are examined. Negative effects on the industry are highlighted. Analysis is provided of subsequent structural changes within the industry which minimize probability of future pricing excursions. Data on markets, sources of material, and outlines of concentration and extractive processes are reviewed. The conclusion is reached that expanded sources, future flat demand, and a broader international base of industry participants are principal forces in this restructure. Flat demand is reviewed as a function of increasing application of tantalum, but in more cost effective forms. This is driven by technical advance, notably in electronics applications.

Jan 1, 1986

By R. H. O. Wagner

"This paper describes the bench testing, pilot plant studies of alternative flowsheets, to determine the feasibility of gold recovery, by carbon in pulp extraction, in the Schumacher Mill gold flotation tailings. The economics were calculated based on pilot plant recoveries and actual industry operating costs.The economics of the carbon in pulp treatment of the gold flotation tailings were not justifiable. The economics of desliming the gold flotation tailings followed by carbon in pulp treatment were marginal, but favourable. INTRODUCTIONPamour Porcupine Mines, Limited is a gold, silver and copper producer located in Timmins, Ontario. In 1983 the head grade of Pamour's gold ores averaged nine one hundredths of a troy ounce of gold per short ton.Pamour operates two area mills to concentrate the gold ores. Free milling gold ores are processed at the Pamour One Mine mill, whereas the refractory carbonaceous gold ores, and complex gold, silver, and copper sulphide ores, are processed through the Schumacher Mine mill.The complex Schumacher mill feed ores do not all react favourably to flotation methods, consequently this study was commissioned to investigate the feasibility of the carbon in pulp cyanidation of the Schumacher mill gold flotation tailings. These tailings contain ten to fifteen percent of the gold in the mill feed. During the study period, the average grade of the Schumacher mill flotation tailings was nine one thousandths of a troy ounce of gold per ton, or one quarter of a gram of gold per metric tonne."

Jan 1, 1984

By Bernard J. Reddy

This paper describes in detail the economic forces affecting cobalt supply, demand, and prices. The major factors that will determine the growth or decline in the use of cobalt in each of its applications are discussed. The flows of cobalt from mine to refinery are described on a company-by-company basis. The paper concludes with a discussion of how the characteristics of the supply and demand sides of market interact to determine cobalt prices.

Jan 1, 1986

By Norman Patton

THE subject assigned is so broad that thorough discussion is well-night impossible within the space allotted, and further, few specific data are available upon which to predicate conclusions concerning the efficiency of present methods of distributing anthracite. This paper treats briefly the various agencies through which both primary and secondary distribution are effected, the methods of transportation and the general interrelation of production, demand, inventories and price. AVENUES OF DISTRIBUTION "Three distinct types of primary distribution are common in the marketing of anthracite. First, though not most important, is the sale by the producer, or operator, direct to the consumer. These sales, other than to employees and the local trade, are generally confined to steam sizes for industrial uses, and are consigned to the sidings or docks of the consumer. Sales of this type often are so closely priced to compete with oil and bituminous that the addition of even a small dealer's margin is sufficient to increase the cost to the point where the business might be lost. Second, the operator sells to a wholesaler or broker for subsequent resale, either to a retail dealer for clearance through his yard or direct to large consumers. Usually this method of distribution is employed by the smaller operators, who do not find it economically feasible to maintain extensive sales organizations. In most instances, the wholesaler retains some 5 per cent for his services, paid, of course, by the producing company whose anthracite he handles. He may, and frequently does, handle the output of several different companies, suited to the varying needs of the

Jan 1, 1935

By Mark David Rankin

This paper represents a general assessment of the primary factors driving the market for mobile offshore drilling rigs and the utility of those factors as choice variables for the offshore drilling program planner.

Jan 1, 1982