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By Michael Samis

The real option valuation method is often presented as an alternative to the conventional discounted cash flow (DCF) approach because it is able to recognize additional project value due to the presence of management flexibility. However, these two valuation methods can be separated on a more fundamental level by their differences in risk discounting. Real option valuation applies the risk-adjustment to the source of uncertainty in the cash flow while the DCF method adjusts for risk at the aggregate level of net cash flow. This seemingly small difference is the reason why the real option method is able to differentiate between projects according to each project?s unique risk characteristics while the conventional DCF approach cannot. This paper provides an overview of the real options and DCF valuation frameworks and discusses the differences in risk discounting that exist between the two methods. Using grade-school mathematics, this paper clearly demonstrates how, with real options, a unique project risk discount can be calculated which is directly linked to the project?s unique risk profile. It also highlights why the DCF method fails in this regard and shows why a call to ?increase the Risk-Adjusted Discount Rate? is an incomplete solution at best. Finally, a heap-leach project and satellite reserve development project are valued with both techniques and the difference in investment conclusions is explained in terms of the risk-discounting concepts discussed here.

May 1, 2003

By J Wu

Swirl Flow Technology (SFT), a novel approach for agitation in large industrial slurry tanks, was jointly developed and patented by CSIRO and Queensland Alumina Ltd (QAL). Currently, SFT is used in 16 alumina precipitation tanks at QAL, with the first installation in January 1997. This paper provides insight to the underlying fluid dynamics, which were investigated through pilot-scale experiments. A key finding was that SFT produces tank wall velocities approximately four times that of conventional draft tube agitator systems for the same power input, whilst for solids suspension, much less power is needed. SFT is energy efficient and practical in scaling suppression as demonstrated by the full-scale experience at QAL.

Aug 8, 2011

By M. Deniz Turan, HASAN NIZAMOGLU, MÜCEVHER TURAN, RAMAZAN ORHAN

Tailings, or flotation waste, formed during copper production may be considered in the class of valuable wastes because of the amount of copper they contain. With the decreasing grade values of copper ores, the utilization of wastes like tailings that carry certain amounts of copper as secondary sources has become a necessity in both the economic and environmental senses. This study was carried out with the aim of using ammonium derivatives for the recovery of copper from tailings waste produced during copper production and utilizing their complex formation characteristics. In the conditions of six hours of leaching at 30 °C in the presence of 22.5 percent ammonium hydroxide and 100 g/L ammonium persulfate, 91.47 percent of the copper was transferred into the solution, while iron was not transferred, indicating that copper can be selectively recovered from tailings.

By Y T. J Kwong

With the recent emphasis worldwide on environmental protection and sustainable development, finding an enriched mineral deposit no longer guarantees mining development. Only if the identified resource can be exploited in an environmentally-friendly manner is it possible that a mine may be developed. Designed primarily to aid with exploring for similar deposits of a particular type, traditional genetic ore deposit models tend to ignore the fact that all mineral deposits are characterised by type-specific environmental signatures. In fact, how an ore deposit can be mined, the commodities of interest extracted and the resultant mine wastes managed are all largely dictated by the geology and mineralogy as well as the environmental setting of the deposit. An environmental ore deposit model integrates such related information to identify the environmental challenges associated with mining an ore deposit of a particular type and facilitates the selection a suitable combination of methods to minimise environmental risks and impacts. Given that environmental management consumes a large portion of the budget for a modern mining project, making informed decisions at all stages of mining development can reduce the overall project cost. Through case examples, this paper demonstrates how environmental ore deposit models may be useful in mine permitting, active mining and in site decommissioning. It is only through an innovative and flexible approach that the mining industry can shed its tarnished image and gain the social license to mine.

Aug 22, 2011

By Rob Thomas

It is generally agreed that standing support should be installed in roadways that will for various reasons, be holed through with a longwall. Considering the magnitude of the associated abutment loading in conjunction with the need to ensure that the material used is cuttable, some form of cementitious support is often used.

By James J. Meadows, Jason D. Pampena, Emanuele G. Cauda, Lauren G. Chubb

Exposure to respirable crystalline silica (RCS) can cause serious and irreparable negative health effects, including silicosis and lung cancer. Workers in coal mines have the potential of being exposed to RCS found in dust generated by various mining processes. The silica content of respirable dust in one single mine can vary substantially over both time and location. The current monitoring approach for RCS relies on the use of traditional air sampling followed by laboratory analysis. Results generated using this approach are generally not available for several days to several weeks after sampling, and this delay prevents timely and effective intervention if needed. An alternate analytical method is needed to reduce the time required to quantify the RCS exposure of mine workers. The National Institute for Occupational Safety and Health (NIOSH) has developed a new method using commercially available portable infrared spectrometers for measuring RCS at the end of the sampling shift. This paper will describe the application of the new field-based RCS analytical process for coal mines, including the use of the new method with the existing Coal Mine Dust Personal Sampler Unit. In a case study conducted by NIOSH with a coal mine operator in West Virginia, field-based RCS analysis was completed at a mine site to evaluate the new technique. The RCS analysis results obtained by the field-based method in this case study showed sufficiently strong correlation with results obtained by the MSHA standard laboratory analysis method to allow the mine operator to use the field-based method for evaluating process improvements.

By Roland B. Hoag, Roger G. Webber

Sulphate concentration in groundwater is a good measure of the extent of oxidation of sulphides, provided that sulphide minerals are the primary source of the sulphate. A study was conducted near the Eustis Mine in Quebec to determine where and how the sulphate in groundwaters originated. Atmospheric precipitation is the only source of sulphate other than oxidation of sulphides, and in this study area it is equal to 0.01,. millimole per litre. The oxidation of sulphides can be divided into subsurface oxidation (mainly inorganic processes) and surface oxidation (including both organic and inorganic processes) . The maximum sulphate concentration due to subsurface oxidation of sulphides depends on the solubility of 0 2 in water and is 0.25 millimole per litre. Surface oxidation is, therefore, responsible for any amount greater than atmospheric plus subsurface contributions (0.29 millimole per litre). Surface inorganic oxidation occurs in waters with a pH greater than 15 and is controlled by the kinetics of the oxidation processes. Organic (bacterial) surface oxidation is dominant only in acid (pH< 1.5) waters. The bacterial action accelerates the oxidation of sulphides, and large quanttties of sulphate may be introduced into solution.

Jan 1, 1976

By Paul F. Ziemkiewicz, Aaron Noble, Christopher R. Vass

Many modern industries rely on rare earth elements (REEs) to produce products that are essential to both civil and defense applications. In a prior study (Vass et al., 2019), we showed that REE grades in acid mine drainage (AMD) and associated byproduct precipitates from AMD treatment (AMDp) warrant evaluation as a feedstock for REE production. The current work extends that effort through a broad survey of 141 AMD treatment sites in Northern and Central Appalachia. In this study, 185 raw AMD and 623 AMDp field samples were obtained and analyzed to assess the REE and major metal concentrations. Results show that an average of 282 μg/L and 724 g/t of REEs occur in AMD and AMDp, respectively. Additionally, both basins contained similar distributions of REEs, and these distributions tended to favor heavy and critical REEs when compared with traditional REE ore deposits. 

By D Laurence

Mining cycles have come and gone and with them there have been dramatic swings in the levels of interest and student entry into minerals-related education programs, hence graduate supply to the industry. So what is the problem? These trends will keep happening and the industry will keep on keeping on – or will it?This paper discusses recent trends in Australian minerals education programs and some international examples, together with some of the more recent initiatives taken by both the minerals education sector and the industry, such as the Minerals Tertiary Education Council (MTEC) and MEA. The real problem is that things will not just keep going the way they have over recent decades – there will come a time when there is no longer a supply of minerals academics available to provide the educational programs; and universities will simply shut down subcritical mass mining programs and invest in the much more lucrative programs such as commerce, law, medicine, etc. By the time this starts to happen it will be at least ten years too late for any last-minute reactive response by industry, if they were to try and avert such a consequence. International experience with mining programs bears out this scenario quite clearly.It is therefore timely for industry individual mines and mine management to take a much more strategic look at their role in the education sector. Sustainable mining also means sustainable minerals education – without one, the other will not function over the long-term. There is a pressing need for long-term strategic buy-in by industry into the education sector – not just for the good times, but also through the tough times. This means much more than a scholarship here or there, but includes such commitments as major industry-university research partnerships; collaborative recruitment initiatives and much more. The paper will discuss a range of such issues, problems and opportunities to address these important issues through strategic, comprehensive, long-term commitments by industry and equally significant and appropriate responses by the education sector. We care – do you?

Mar 21, 2011

By Soner Top

In this study, a process to separate manganese and iron from manganiferous iron ores by reductive acid leaching followed by magnetic separation was conceived and experimentally tested. In the leaching process, sulfuric acid was used as lixiviant and oxalic acid was used as reductant. The experimental results showed that the manganese and iron separation was optimal when the concentrations of the sulfuric acid and oxalic acid were 0.75 M and 30 g/L, respectively, at a temperature of 80 °C, a solid/liquid ratio of 67 g/L, stirring speed of 400 rpm and leaching duration of 60 min. Under these conditions, 90.49 percent and 6.78 percent of Mn and Fe were dissolved, respectively, from the ore sample in a size fraction of smaller than 106 µm. It was determined that the leaching of manganese from the ores was a second-order reaction with activation energy, Ea, of 53.38 kJ/mol. The leaching residues obtained under the optimal conditions were subjected to wet high-intensity magnetic separation tests to recover the remaining iron content. This separation process produced a concentrate containing 56.20 percent Fe and 1.79 percent Mn with iron and manganese recoveries of 56.83 and 66.73 percent, respectively. To the best of our knowledge, this is the first time that a magnetic separation process was used on a residue obtained from the reductive acid leaching of manganiferous iron ores to recover iron.

By C I. Edwards

Phosphorous is typically present in iron ore either in the mineral apatite, Ca5(PO4)3OH, or associated with the goethitic fraction of the ore. In this paper, we present results that show that phosphorous associated with the goethitic fraction can be removed with a heating pretreatment around 300 176;C for 1 h, followed by a caustic leach with 1 - 5 M NaOH, or a leach with sulfuric acid at pH 0.5. The heating pretreatment is considered to dehydroxylate the goethite to form a haematite intermediate phase, ‘protohaematite’, that reacts during the leach making the phosphorous accessible to the leachant. In the acid leach, ten to 15 per cent of the sample was dissolved to obtain a leach product with 0.08 per cent P. In the caustic leach, as no weight loss occurs, it is proposed that iron species associated with the protohaematite have either not dissolved or have reprecipitated at the high pH values of the leach.For an ore containing apatite as the source of phosphorous, a leach with sulfuric acid dissolved the apatite, lowering the phosphorous levels in the sample. The sample treated contained carbonate minerals (including siderite) that also reacted with the acid, and in practice a balance between the dissolution of the apatite and the carbonate minerals may be needed to minimise acid consumption.

Jul 11, 2011

By Panshi Xie, Xicai Gao, Yi Luo, Youfu Zeng, Yongping Wu, Shenghu Luo

For the first time, surface subsidence prediction theory was used to investigate roof movement around longwall face mining in a steeply dipping coal seam. A physical simulation experiment was conducted to quantitatively study the roof migration patterns, the gob materials, and the characteristics of bed separation and compression caused by mining two adjacent panels to gain a better understanding of ground control issues in multipanel mining in steeply dipping seam. This approach provides an in-depth analysis of the movement of the roof. Compared to movement observation of survey point using total station, the Photogrammetry Analysis for Physical Modeling of Mine Subsidence Program (PAPMMSP) method is easier to perform, faster and yields the much higher accuracy required for scale physical modeling. It is also a more effective observation method for underground-mining physical simulation experiments.

By Turan Uysal, Thierno Saidou Barry, MURAT ERDEMOGLU, Mustafa Birinci

Nonbauxite ores such as aluminum silicate clays and coal fly ashes have been widely considered as potential resources of alumina (Al2O3). The interest focused on these ores is due to their high alumina content. Over the years, in countries where there are little or no bauxite reserves or where the recovery of existing bauxite ores to produce alumina with the Bayer process is not economical, alternative processes have been explored. Among these processes, acid leaching is seen as the most attractive process. In the acid leaching process, heat treatment for thermal activation to destruct the refractory structure of the minerals in the ores is generally recommended as a pretreatment method. Recently, the applicability of high energy ball mills, which are useful for mechanical activation as a pretreatment method before leaching, has attracted much attention. This is a short summary of our previous review [1], giving the details of alumina manufacturing from thermally and mechanically activated clays and coal fly ashes by acid leaching.

By Sean Dessureault

The mining industry has used fleet management systems (FMSs) for decades. These systems were developed long ago in large truck-and-shovel mines, where hardware sales were the core business driver for vendors. These traditional models can be overhauled in the era of the Internet of Things (IoT), Big Data, gamification and low-cost tablet technology. Relatively low-cost tablets are ubiquitous in modern life, and they are packed with communication radios and sensors like Global Positioning System (GPS) and inertial measurement units used widely for games, fitness measures and navigation. These powerful computer devices provide the same, if not more, sensing capability than traditional fleet management hardware, all at a fraction of the cost and without complicated cables or challenging supply lines. 

By B Taylor

The Perseverance deposit is the most southerly known economic copper/gold deposit within the Cobar gold field. The deposit is situated approximately 12 km to the south-southeast of Cobar and is essentially blind to surface with the top of economic mineralisation occurring 750 m below ground level.Based on the December 2010 resource estimate (inclusive of reserves and net of depletion) the deposit contains 3 011 000 tonnes at 6.1 g/t Au and 0.90 per cent Cu (590 000 oz of gold and 28 000 tonnes of copper). The deposit is comprised of four principal lenses, the Perseverance, Hulk, Zone B, and Hercules lenses. In excess of 90 per cent of the known resource tonnes are contained within the Perseverance and Hulk lenses. The deposit is shear related and hosted within lower Devonian rocks of the Cobar Basin. The competency contrast of rhyolites juxtaposed against sediments by the Peak-Perseverance shear is the principal control on mineralisation. Both the Perseverance and Hulk lenses are primarily hosted by brecciated rhyolites juxtaposed against Chesney formation sediments across the Peak-Perseverance shear. This faulted rhyolite sediment contact roughly defines the global orientation of the deposit. The Perseverance lens continues within the shear for up to several hundred metres beyond the extent of the faulted rhyolite sediment contact. Mineralisation within the shear beyond the faulted rhyolite contact zone is hosted by sheared silicified sediments. The Perseverance lens remains open at depth and to the south.The Zone B and Hercules lenses, which are significantly less important in tonnage terms, are hosted by rhyolite breccias within the main body of the rhyolite and appear to be only tenuously related to the Peak-Perseverance shear. Within the Perseverance lens, the presence of northeast trending high grade breccia veins developed oblique to the north-south trending shear system has led to the development of steeply north plunging high grade ore shoots within a globally north-south trending mineralised domain. These high grade shoots have limited horizontal continuity but significant down plunge extent.The presence of coarse gold and the resulting strongly skewed nature of the gold grades, in conjunction with controls on mineralisation which are not parallel to the mineralised domain, has led to predictive difficulties regarding stope performance.Strong heterogeneity of the gold content of the ore and geological controls on mineralisation which are not parallel to the global trend of the mineralisation impose a set of difficulties which sound geological control is helping overcome.

Aug 22, 2011

By Chaoxun Zhao, TAIYOU LI, JIAQI JIN, Chen-Luh Lin, Jan D. Miller

A large portion of the energy consumed in copper concentrators is used to reduce the particle size of the feed by crushing and grinding. The cost of metal production could be reduced if low-grade particles of centimeter size were removed prior to further processing. Two copper sulfide ore samples (3 × 1 cm) from Arizona were analyzed by micro X-ray computed tomography (Micro-XCT) to determine the grade of copper sulfide in each particle. For copper ore sample A, a significant number of particles contained very low amounts of copper, while some particles had copper sulfide grains of millimeter size. Based on Micro-XCT, it was expected that 85 percent of copper for sample A could be recovered at 65 percent of mass rejection during preconcentration by sorting. However, in sample B (a different copper ore), distribution of copper sulfide was dispersed primarily in each ore particle, so for the particle size class of 3 × 1 cm, liberation of copper sulfide and gangue minerals was not significant. In view of the XCT results, dual-energy X-ray radiography was used as a basis for sorting. Pilot-scale X-ray sorting of sample A (10 × 1 cm) showed 31 percent rejection of a 0.08 percent Cu gangue product with a corresponding recovery of 90 percent copper.

By X S. Li

The modern mechanical excavation machines have enough power for cutting hard rock. The ‘bottle neck’ which limits the use of machines for hard rock excavation is ‘cutting tool’. To cut hard and abrasive rock, CSIRO has been developing Super Material Abrasive Resistant Tools (SMART*CUT). SMART*CUT technology replaces the tungsten carbide (WC) tip of conventional pick with thermally stable diamond composite (TSDC) and attaches the TSDC tip to steel tool body with CSIRO worldwide patented bonding technology. This paper introduces the key features of SMART*CUT, compares its performance with conventional WC tipped tools, discusses the challenges faced by SMART*CUT and the further developments needed for successful application of SMART*CUT to mining industries.

Nov 22, 2011

By X Dahe

SLon vertical ring and pulsating high gradient magnetic separators possess excellent mineral processing ability and have been widely applied to process oxidised iron ores. SLon centrifugal separators are applied to clean the SLon magnetic concentrate and remove quartz and other gangue minerals associated with a small portion of magnetite.This paper introduces the application of this technology in Hai Nan, Da Hong Shan and An Shan for processing oxidised iron ores.

Jul 11, 2011

By Morrison R. S, Doennilan N

Recent mapping (1989-1992) by the Northern Territory Geological Survey in the Tennant Creek 1:250 000 map sheet area has resulted in substantial revision of the lithostratigraphy of the Tennant Creek Block (Donnellan, Hussey, and Morrison, in press). Briefly, the former Warramunga Group (Dunnet and Harding, 1967; Dodson and Gardener, 1978) is divided into the Warramunga Formation, and an overlying less deformed volcano-sedimentary succession, the Flynn Subgroup. The latter is conformably overlain by the Tomkinson Creek Subgroup of the Tomkinson Creek province in the north of the Tennant Creek Inlier. These two Subgroups constitute the Churchills Head Group which is essentially equivalent to the Hatches Creek Group of the Davenport province to the south of the Inlier.

Jan 1, 1994

By Anton Sroka, Antoni Tajdus, Axel Preusse, Krzysztof Tajdus

"In Europe, the magnitude and range of mining deformation predicted on the surface have been, in most cases, determined using methods based on Gauss' influence function (e.g., Knothe's theory, Ruhrkohle method, Stochastic method). The increase in the application of numerical methods (finite element method FEM, finite difference method FDM, etc.) provides an opportunity to offer a different approach in describing mining deformations. However, this phenomenon is very complex, and due to numerical limitations, a two dimensional analysis was made (in plane strain) in most cases. Such 2D models could not accurately describe the mining geometry and geological conditions. The authors of this paper carried out the calculations in 3D models which describe a mining situation and the character of the strata in one Upper Silesian Polish mine. Furthermore, the authors include some tips for three-dimensional modeling.INTRODUCTIONThrough the years, many numerical models have been used to describe a phenomenon of underground mining exploitation influence on the ground surface. However, such rock masses are highly disturbed (cracks, fractures, changes in water conditions, etc.), and it is very difficult to suitably describe, in a mathematical manner, such materials. Therefore, many of the numerical models created have been corrected in various degrees.At first, models widely used to describe the behavior of strata in the region of exploitation appeared as elastic models, where scientests assumed that a whole strata behaved in a linearly elastic manner, according to Hook's law. Those models have been modifed to received suitable VALUES (of settlement and range of subsidence troughs. Scientests created this amongst others: elastic models with contact between the rocks layers (Shippam, 1975; Salamon, Chugh and Yang, 1993), elastic models with no tension (Chrzanowska-Szostak, 1988), and elastic models with a contact on the subsidence limit plane (Tajdus K., Tajdus A., 2005). However, in most cases, those models did not bring the expected results and the differences between shapes of measured and the calculated subsidence trough were substantial."

Jan 1, 2010