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It is difficult, and probably inadvisable, to frame rigid rules for the valuation of alluvial deposits, for such deposits are very diverse in type, varying, for example, according to the mineral sought and according'to the complexity of the deposit which, on one hand, may be a narrow welldefined alluvial strip at the bottom of which is a continuous mineral lead, or, on the other, may be a broad alluvial flat with discontinuous patches of the valuable mineral occurring at different levels throughout the alluvium.However, some definite procedure in valuation must be adopted when dealing with anyone deposit, and the fundamentals of such a procedure are applicable to almost all alluvial deposits.The methods described in this paper are based very largely on the valuation of a specific deposit and, although an attempt has been made to keep the discussion as general as possible, it contains some statements which, if traced to their origin, spring from the writer's association with that deposit. Such statements must be interpreted with sufficient flexibility to be appropriate to whatever area the reader may have in mind.The subject of valuing an alluvial deposit falls naturally into two divisions: The valuation of each borehole; the valuation of the deposit as a whole. The following discussion is therefore dealt with under these two headings.Some general matters are mentioned in a third section.

Jan 1, 1950

By W. Robert Power

Dimension stone includes a wide variety of natural materials that are put to an equally wide variety of uses. It is possible to classify dimension stone according to the end use to which the stone is put or according to the lithology of the stone. Both schemes are used by the United States Bureau of Mines in the annual Minerals Yearbook. The 1969 Yearbook lists 15 specific uses and has additional miscellaneous catagories. The same Yearbook lists five specific rock types or lithologies, and also includes a miscellaneous category. In a short presentation it would hardly be possible to list and define all these categories, much less discuss the evaluation of deposits with regard to all possible combinations. Besides, I am only slightly familiar with some of the uses and their requirements. I have therefore chosen to limit my remarks to some special problems in evaluating dimension stone that is to be cut and finished to specific sizes, tolerances, and finishes for use in buildings and some monuments. This use class is called cut stone in the Minerals Yearbook. In terms of dollar value it is the largest single use category. In 1969 the dollar value of cut stone was $29,122,000 which is more than twice the value of the next largest category. For those of you who are interested in other use applications of dimension stone I suggest that you start with recent articles by Bowles (1960), Currier (1960), and Barton (1968).

Jan 1, 1972

State ownership of mineral in the ground is not newthe Regalian Right is an ancient concept. And the compulsory purchase of land and the minerals beneath it by the State or a body approved by the State (Fitzgerald, 1952) was a principle well established and enforced in practice over a hundred years ago, when such powers became a practical necessity during the period of railway building in Britain and elsewhere:The acquisition of mineral properties which stand in the way of public construction projects still goes on. But in recent years nationalization is being increasingly undertaken as part of the planned use of national resources, for the closer regulation of economic activities, or merely, so it would seem, as a matter of political expediency or national pride. For instance, the unsevered coal in Britain came under State ownership in 1938 in an attempt to simplify a complex pattern of freehold titles which were impedingplanned mining operations. Later, unsevered minerals became a factor in negotiations arising under various town and country planning acts. The acquisition of the Rio Tinto mines by the Spanish Government implies political aspirations. Or State purchase may even be accidental: it was the easiest course for the Sierra Leone Government consequential upon its failure to prevent widespread trespass over legally-held diamond privileges in 1955.This paper has been prompted by problems that have arisen when properties containing unsevered mineral have been expropriated by the Crown in New Zealand: expropriations, it is true, that have been on a small scale in rela...

Jan 1, 1957

By Lyon F. Terry

ACCEPTED current practice for A the valuation of mineral property is based upon Hoskold's theory and valuation tables first published in 1877, and popularized by Herbert Hoover's "Principles of Mining" issued in 1909. In more recent years the procedure has been developed further in the course of the extensive valuation work required for Federal taxation purposes. The 1-aluation of oil and gas properties and of mines is based upon the same principle-the estimation of the present worth of future net revenues. However, in valuing oil and gas properties the method used for discounting future revenues differs somewhat from that adopted for mines, owing principally to the nature of the re- source. production from oil and gas properties usually declines from year to year, whereas coal and ore de- posits are adapted to a more uniform rate of output.

Jan 1, 1940

Reservoir Engineering has developed into an art. One phase of this art is forecasting the futi. perf ormance of oil and gas reservoirs for property valuations. A discussion of the necessity for oil property valuation isgiven. A brief 'discussion of the four most common methods is included and the engineering method is explained in more detail. As an example of oil property valuations, a producing oil lease in Shackelford County, Texas, USA is evaluated.' The recommendations and conclusions arrived at frun the results obtained are presented.

Jan 1, 1962

By D. C. McKechnie

To the examining engineer, the ever-recurring problem involving the valuation of ore in a prospect presents at different times highly divergent aspects- some entirely physical or mathematical, others essentially personal. The majority of the problems discussed in this paper are obvious to the engineer, and need little elaboration. By the prospector and the general public, however, a number of these questions are often and completely over-looked, or else approached in such a way as to produce final results which are, to say the least, misleading and at times decidedly erroneous. While the purpose of this paper is to deal with prospects or potential mines, many of the problems considered apply equally well to mines with developed ore reserves. As the usual showings on a prospect consist chiefly of a few open-cuts and a limited amount of underground development work, an estimation of the actual ore reserves is a question of minor import, and seldom enters appreciably into an estimation of the probable value of the particular property. The physical valuation of a prospect mainly involves the consideration of such subjects as the general geological features exposed, the strength and type of mineralization, the width and persistence of any associated veins, shear zones, fractures or contact zones, together with the possible grade, size, and continuity of any ore-bodies that may there occur.

Jan 1, 1930

By Ying Gu

Automated mineralogy methods and tools, such as the Mineral Liberation Analyzer (MLA) and the QEMSCAN, are now widely used for ore characterization, process design and optimization. Several case studies published recently demonstrate that large gains can be obtained through grinding and flotation optimization guided by automated mineralogy data. However, since automated mineralogy can only provide the information pointing to where the process gains can be made, it does not directly impact the production gain. Thus, a question is often asked: how to value the contribution of automated mineralogy to process improvement of a particular plant. This appears to be a difficult question. On close examination however, it is found that this is essentially a question of the value of information and it is reasonably well documented in various other industries. Hubbard (2010), in chapter 7 ?Measuring the Value of Information?, dealt with exactly this type of problem. The value of information is the reduced risk of an investment and opportunity loss. The methods Hubbard developed can be applied to estimate the value of automated mineralogy, as well as metallurgical test work, which also produces information that reduces the risk of investment. This paper first introduces Hubbard?s theory on the value of information and how to measure it. It then applies his methods to estimate the value of automated mineralogy, using Anglo Platinum?s fine grinding project as an example. In this case, the value of automated mineralogy includes the reduction in investment risk worth US$ 62.5million, in project rejection worth US$197 million and in opportunity loss worth US$320 million. In the end, a general model is developed to allow the simulation of the value of automated mineralogy in different mining operations constrained by different parameters.

Sep 1, 2012

By M L. van Kampen

The recent (2005) amendments to the Resource Management Act 1991 have made it clear that there is no obligation on an applicant to consult. However the importance and value in consulting with the community, particularly before commencing a major project, cannot be understated.   This paper looks at the provisions of the Resource Management Act as they relate to consultation and public participation in the process, and will discuss the benefits of consultation both before an application is filed and following the filing of the application. Engaging with the local community can help shape a project to better fit the community, engender support and address opposition. In short, taking the extra step to what is legally required, can help smooth what is potentially a bumpy road. Examples in practice of the value of consultation are given.

Jan 1, 2006

By S L. Martin, M Wimberger

The binary indicator coding of assay and lithological data according to a single criterion or multiple criteria is a powerful technique for representing mineralised shapes through the modelling of probabilities. This can be as simple as using a single indicator to model the probability of occurrence of a condition, usually a grade threshold or a lithology, but it can also be used with a number of categories. Case studies are presented to show the power of this approach, where the geological controls on mineralisation or on the distribution of a rocktype or alteration, often coupled with mineralisation, are unclear. The categorical approach is often used as a de facto grade filter in disseminated or stockwork mineralisation. The ultimate expression of the indicator formalism is in multiple indicator kriging (MIK), where a conditional distribution of probabilities is generated for each estimation panel. This has applications in recoverable resource estimation, as the input for continuous or categorical simulation, where the distribution of sample grades is multimodal, or when there are superimposed mineralisation events with different orientations. However, in some cases, MIK is being used as an excuse for ignoring a quality geological interpretation. Examples from the public domain show the abuse of the categorical and MIK approaches to modelling probabilities, together with a plea for greater consideration of the geology.

Mar 22, 2022

By Keith Jones, Largo Albert

"Decelerometer testing of a rigid guide system in a mine shaft pro vides usefuI information to operating and maintenance people. High acceleration/deceleration rates can lead to high maintenance costs to bath conveyances and shaft and can also present an operating risk . Possible disastrous results in the shaft have been avoided by restricting the maximum conveyance speed until the shaft and/ or conveyance problems have been solved.The test instrument is a valuable aid especially during commissioning or updating of a hoisting installation. High acceleration/deceleration rates also lead to reduced hoist rope life. During the past fourteen years, a total of 15,000,000 feet of testing was performed in 74 assorted shaft compartments.Based on this experience, it is possible to establish acceptable conveyance maximum speeds provided that all other conditions in the shaft compartment are normal. The body of the paper will present examples of several tests made under actual operating conditions.IntroductionMore and more mine operators are recognizing the real value in the use of the decelerometer for determining the state of shaft guide alignment in their shaft compartments , not only during the initial mine start-up periods, but also on a regular basis while the mine is in production.Decelerometer testing, is a technique in which an accelerometer , commonly known as a decelerometer, is used for measuring conveyance acceleration/deceleration in a lateral plane. lts purpose is to determine the severity of shock loads produced by misaligned shaft guides. Testing is performed by mounting the instrument on the conveyance and operating the conveyance (empty and loaded) at various speeds up to and including full speed . However, full speed may not be attained due to conditions indicated by the tests. These conditions may present an operating risk to the plant."

Jan 1, 1984

By Michael Forbes, Rick Jeuken

The challenge of managing geological uncertainty in mine planning is central to optimizing resource extraction while minimizing risks and costs. This paper introduces a novel approach to coal mine planning by integrating chance-constrained programming to address the uncertainty inherent in mining operations. The main takeaway from this work is the demonstration that focusing on reducing the variance of high-quality coal blocks, rather than low-quality ones, can lead to better blending outcomes, higher profitability and more efficient resource utilization. The study presents a case study of a coal mining operation, using chance-constrained programming to manage the uncertainty surrounding coal property predictions, specifically the predicted coke strength after reaction (CSR).

Jan 1, 2025

By D Thomas, B Gallagher

Valuable data for geotechnical interpretation and integration into effective Australian underground mine planning may often be available, yet is not always fully appreciated or utilised, particularly in the early stages of mine planning or in due diligence studies. There may be considerable benefits associated with early prioritisation of geotechnical evaluation and impact on mine planning. Unidentified, misinterpreted, or ill-defined adverse geological and related geotechnical resource characteristics can pose significant business risk to underground coal projects and operations. Preliminary resource definition in the early conceptual mine planning stages attributes significant focus (entirely warranted) on resource quality and structural geology constraints. Yet detailed geotechnical data analysis and interpretation, which may have a substantial down stream impact and sensitivity with respect to future mine planning strategies, at times is given lower priority, or scoped and resourced in the later stages of a bankable feasibility study. Through extensive mine planning experience and observation of downstream process impacts, it has been found there is often data available for geotechnical analysis that does not readily stand out or is not adequately understood or utilised, available at the early (conceptual) stages of mine planning. Part of the issue may be that exploration geologists are not necessarily experienced geotechnical engineers and do not necessarily recognise or understand all important parameters. Subject to appropriate application of experienced professionals data can be manipulated to provide key geotechnical hazard assessment at minimal cost, and provide a framework for understanding and optimising the mine planning process. Although there is no single prescribed strategy for resource evaluation from a geotechnical perspective, potential business risks and mitigation approaches can and should be adopted at the conceptual mine planning stage. There has been a recent focus in the metals industry to provide a reporting framework for geotechnical classification of mining projects. This paper outlines the strategies and gives examples of key analyses adopted in mine planning and discusses the relative merits of adopting a reporting framework as a tool for geotechnical classification in mine planning.

Jan 1, 2005

By Alexander Fleischanderl

Steel market has become somehow unpredictable and requires quick adjustment in production conditions to survive in the harsh market environment. Steel production is not anymore driven by output records, but by efficient cost reduction measures to remain competitive under strongly varying production conditions. Energy efficient production and flexible raw material scenarios have become decisive factors to succeed and survive in our industry. Such scenarios have to be carefully investigated to be well prepared to adopt production steps continuously. The paper analyses various process opportunities to optimize energy and raw material consumption in the production route. Off-gas treatment systems have still a huge untapped potential to recover energy from the hot waste gases. This is valid for the EAF mini mills as well as for the integrated route. Various examples for waste heat recovery systems including resulting benefits are discussed for the EAF, agglomeration, blast furnace, direct reduction and BOF. New innovative bag-filter systems feature extremely low emission levels at lowest pressure loss and sound emission conditions. Also improved control and automation solutions support the operators to minimize the operation and maintenance costs of their off-gas system. Steelmaking by-products shall not be considered as residues, but as a valuable and cheap raw material source. The paper presents some show cases how to valorize slags as well as utilizing coke and iron oxide fines to increase productivity and minimize raw material cost. A new process for highly flexible converter steelmaking allowing for extraordinary high HBI and scrap rates above 50% and improved yield is discussed and evaluated

Oct 30, 2017

By J. P. Burland

The paper describes a number of recent case histories in the United Kingdom where field instrumentation and measurements have played a major role in the design and construction of excavations, piles and foundations. It is shown that the design and construction procedures for deep excavations in London Clay are based almost entirely on the results of field measurements. Examples are given of successful application of such measurements. The present understanding of the behaviour of bored piles in stiff clays and their design is based on a number of instrumented pile loading tests. The results of these tests have led to a radically new concept of pile design in which the piles operate at their full shaft capacity under working loads thereby resulting in considerable savings in design and construction. Some examples of the successful application of this concept are given. Finally it is shown that the present knowledge of the stiffness properties of chalk is based entirely on field observations. An example is given of how direct field measurements were used to solve a foundation problem at the base of a coffer-dam in chalk.

Jan 1, 2010

By Z. Konstantinovic, M. Ahrens

Due to the large installed electrical power and the large number of electric drives in minerals and mining plants power factor compensation and harmonic filtering has always been an important issue. For the design of harmonic filter and power factor compensation installations several approaches can be taken. The paper describes different concepts and their advantages and analyzes special requirements and design considerations for minerals and mining plants. It also highlights areas where problems can occur and which points need to be addressed carefully. Optimized designs and solutions are discussed in case studies and the resulting energy savings and benefits for the plant operation are shown.

Jan 1, 2007

By D Cooke

In 2010, Kalgoorlie Consolidated Gold Mines (KCGM) was Australia’s largest gold producer, with total annual production of 788 000 ounces. Of the gold produced by KCGM in 2010, 95 per cent was extracted from the Fimiston open pit, also known as the Superpit. The Fimiston operation encompasses the historic Golden Mile, from which more than 55 million ounces of gold have been extracted from the world-class Fimiston lode style mineralisation.The operational performance of the KCGM Fimiston open pit was reviewed for the period between 2005 and 2010. Key performance metrics reviewed included mined tonnes and grade, cost per ounce of gold produced and the mine to mill reconciliation trends. The years 2007 and 2008 were characterised by a decline in performance against key performance metrics. The ore zones were diluted, with the excess tonnes mined resulting in lower grade and an increase in the cost per ounce. Poor reconciliation between ore mined, the ore reserve model and the grade control polygons was also observed.A series of improvement initiatives were implemented in late 2008. As a result of changes made to the grade control and mining practices, the site performance recovered. Unplanned dilution was reduced, which had a positive impact on mined grade. The lower tonnes combined with higher grade reduced the cost per ounce to below budgeted levels in 2009 and 2010, enhancing the profitability of the operation. The operational performance between 2005 and 2010 was compared to the turnover statistics for the KCGM geology department over the same period. Turnover accelerated between 2005 and 2007, peaking at an annualised rate of 43 per cent. With the onset of the Global Financial Crisis and the implementation of retention initiatives, turnover reduced significantly between 2008 and 2010. A strong consistent correlation was observed between the turnover trends in geology and the performance of the grade control function and resultant site metrics.The cost of turnover is known intuitively, however, rarely quantified. To evaluate the benefit of the improved performance, a detailed financial model was used to quantify the impact of the grade control function. In 2010, the headgrade exceeding budget by just four per cent contributed an additional A$24 M of value to KCGM. In contrast, if the 2008 performance had been replicated in 2010 (-9 per cent on headgrade), the result would have removed A$61 M in value from the business. The KCGM experience between 2005 and 2010 demonstrates the value of human capital in a mining operation and the importance of a high performing geology grade control team to the profitability of a mining operation.

Aug 22, 2011

By Douglas Brand

"The data that many mineral processing plants make use of, is provided by samples taken from sampling systems which are inadequately designed or improperly maintained, and therefore cause detrimental effects to plant operations, production planning and metallurgical accounting! Poorly designed or maintained sampling systems will likely produce low probability samples which give the operator a false sense of security of the product and the process. If data is the basis for action (Flintoff, 1992, p.2), then using the resulting suspect or bad assays by operators, control systems, or metallurgist and administration personnel will act and make decisions which may adversely affect the profitability of a processing plant. Here we will discuss some of the fundamental sampling problems, propagation of errors and a method to estimate what impact this has on an operations Net Smelter Return.INTRODUCTIONIn order to control a mineral processing plant at its best potential, it is necessary to obtain the best possible measurement results of the metal or mineral in question. The sample which is delivered to a measuring instrument, or lab, needs to be of the highest probability to be able to achieve this. This paper will discuss the effects of sampling errors on grade / recovery and grade / Net Smelter Return (NSR) and provide a method to estimate the monetary advantages of using probabilistic sampling in a processing plant.REVIEW OF SAMPLINGSampling, by definition, is the removal of a small representative portion from a total consignment, or flow, for the purpose of accounting or process control.• A sample can only be considered representative, if each and every increment collected, in each of the sampling stages, is representative.• Each particle of the sampling lot must have the same probability of being included in the final sample.• If both of the above conditions are met, then the final sample will be representative of the complete sampling lot.It is commonly known that in order to take truly representative and probabilistic sample, best practices indicate that:• The total stream should be sampled.• The sample cutter should intersect the sample at right angles to the flow.• The sample cutter should travel through the stream at a linear and constant speed and the speed deviations should be less than 5%."

Jan 1, 2016

The value of incentive payments in the mining industry by K. SMITH, A.R.S.M., B.Sc. (London) (Member) This paper reviews the history of incentive payments in the mining industry, and gives some indication of the magnitude of improvement that has been achieved by this means in the past. The objective is to promote a more general belief in the efficacy of these methods, and thus to encourage their wider and more effective application by mining engineers in general, and by the rising generation in particular. It is concluded, from a consideration of current productivity levels in the gold-mining industry (still South Africa's leading revenue earner), that further substantial improvement can be achieved by a better understanding of the time-tested principles of incentive payments.

Jan 5, 1974

By O. Norman Lotter

There are many scales of innovation in the pursuit of concentrator performance improvement, including paradigm change, inventive change and incremental change. All are important, but the last is low risk, low cost and has a relatively high probability of success, given the right metallurgical skills. Seeking continuous improvement is also essential to ensure that performance does not decline over time due to ore type changes, personnel changes, equipment wear and other factors. When properly implemented, these small gains offer a very high rate of return for the project cost because they are made from marginal, not total, operating costs of the plant. To be effective this approach requires plant trials that use designed structure and appropriate statistics to test the observed differences arising from the old and new process treatments, be they a change in flotation reagent, in grind, pulp density, etc. However the pursuit of small but financially significant performance gains is often regarded as fruitless because of the range of variance in plant data, and the consequent difficulty of ‘proving’ that a benefit has been achieved. Opportunity for improvement is thus sometimes relegated to the realm of the impossible, or at best, treated with skepticism. Operations managers prefer to look for the larger gains, which are easier to demonstrate and prove. Unfortunately, these are seldom to be found; rather, a large gain can be more easily made by executing a series of small recovery improvements that are together equivalent to the ephemeral single large gain. In this paper we advocate a policy of continuing improvement driven by rigorous performance testing protocols and a formal ‘risk analysis’ approach to judging the efficacy of changes implemented in the plant. Following these simple procedures allows rational decisions to be made on the basis of quantifying risk and reward. In particular we consider the choice of hurdle rate for decision-making which best balances risk and reward. It is shown through case studies from actual industrial practice that this approach is practical and delivers significant financial value to the operation.

By John C. Luck Jr.

"DEVELOPMENT of oil emulsion mud dates back to the early days of rotary drilling when oil was added to the drilling mud solely for the purpose of freeing stuck drill pipe. After the drill pipe was freed, and drilling resumed, this oil was considered a contaminant. Efforts were made to remove the oil but some of it remained and was emulsified with the drilling mud, thus forming a mechanical emulsion.During the late 1930's, operators found that adding crude oil to drilling muds seemed to alleviate 'sticky-hole' problems and so oil was allowed to remain in the mud. This practice was adopted when it was found that faster drilling rates and longer bit life were obtained. These observations led to the development of emulsion drilling muds. During the past five years their application has become more widespread because of the lower fluid losses obtained, greater lubrication qualities, faster penetration rates, and generally better hole conditions.An emulsion may be defined as a two-phase system consisting of a mixture of either finely divided oil droplets in water or of finely divided water droplets in oil. The surrounding liquid is known as the continuous phase. The emulsifiers reduce the interfacial tension, making the droplets tend to repel each other so that they remain dispersed and stabilized. These emulsions are classified as oil-in-water or as water-in-oil, depending upon whether water or oil, respectively, is the continuous phase. Briefly, close inspection shows that they consist essentially of globules of• the one liquid suspended in a continuous mass of the other liquid. Oil emulsion muds are usually of the oil-in-water type. Two basic types of emulsifiers •commonly used in Canadian muds are soaps and lignites."

Jan 1, 1954