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By S. Rideout

As Assistant Director for Program Support for the Office of Surface Mining Reclamation and Enforcement (OSM), a bureau of the U.S. Department of the Interior, I am responsible for the regulatory and abandoned mine land programs under the Surface Mining Control and Reclamation Act of 1977, which governs the environmental impacts of coal mining. My perspective is influenced by my current position and my previous positions in government and private industry. Sustainability is a cooperative effort of many parties and can only be achieved if each assumes their responsibilities for making it happen. I will highlight some of my thoughts on the role of government in achieving sustainability in the mining arena.

Jan 1, 2007

By M. L. Smith

A new approach to strategic planning, the Life of Business Optimisation System (LOBOS) optimises production systems from the scale of stopes in a single mine to an entire business strategy consisting of multiple mines and products competing for capital and processing capacity. LOBOS has optimised cash flow for a wide variety of operations, including large metalliferous or coal mines and as an aid to high-level strategic business optimisation solution to multi-mine/processing/product complexes. This paper discusses the application of optimisation technology to strategic planning with an emphasis on project evaluation with examples on the application of LOBOS to a variety of recent projects.

Jan 1, 2007

By R. Tinsley

Project-finance risk assessment is mature and approached systematically. Mining industry due diligence remains fragmented with specialists addressing different aspects of the project such as reserves/JORC, environmental impact, commodity market, even financial analysis/ modelling. Each professional has a natural tendency to believe that the risk factors they have examined are the key ones necessary to be reviewed, as if their review will stand in isolation from others in the way a project materialises. By first laying out the project risk categories and risk matrices, this paper examines the due diligence process with a keen eye to the risk assessment and overlap/interaction. Some cross fertilisation of due diligence techniques from other industry sectors is placed into the mining context. Six case studies are then presented with regards to due diligence features in each project's feasibility review or financial information/ offering memorandum. A power case first shows the differences between the due diligence expectations of banks versus bond financings. Then some Australian and Indonesian mining development cases are analysed to see the due diligence learning points. Some of these were project/due diligence failures. The conclusion focuses on the value of a systematic risk assessment for project evaluation, all from the project-finance perspective.

Jan 1, 2007

By W. Mackenzie

The development of a resource project inevitably requires the investigation of a vast range of issues across most engineering disciplines - mining, metallurgical, chemical, civil, electrical, mechanical and environmental - as well as the geosciences. It is also a characteristic feature of the resource industry that no two orebodies - and hence no two development projects - are the same. So these technical issues have to be addressed to a greater or lesser extent in evaluating any resource project's development potential. Not surprisingly then, technical issues tend to predominate when assessing the development potential of a project in the process typically referred to as `doing a feasibility study'. But the principal purpose of a `feasibility study' is to determine whether a development opportunity makes good business sense, not just whether it is technically possible. Resolution of technical issues is often seen as the primary focus of a feasibility study, whereas in reality, these technical issues are the basis upon which an asset delivery and business plan is built. This is not to say that technical issues are unimportant - they are a prerequisite to the demonstration of a project's viability. The feasibility study process must therefore demonstrate that not only have the technical issues been satisfactorily addressed, but also that the broader commercial, economic and social issues have been considered in the development of a comprehensive business plan, which includes an assessment of the risk-reward profile of the proposed development. This paper will present a framework for the conduct of `feasibility studies' and provide guidance to minimum standards and best practice.

Jan 1, 2007

By A. Morley

It is difficult to evaluate exploration properties in a manner that is transparent, repeatable and easily re-calculated to cater for different geological interpretations, but the risk-based assessment methodology, the Geological Risk Method, developed and described by Lord et al (2001) attempts to satisfy all these criteria. This paper examines a case study example based on valuations of exploration projects conducted by SRK Consulting using this methodology, and describes some of the advantages and limitations of the method.

Jan 1, 2007

Develop a mobile manipulator that one person can use to lift and maneuver 50- to 600-pound loads. It can be used in maintenance shops and mines to reduce lifting accidents (Figure 1 and 2). Background Lifting heavy items is one of the leading causes of injury in the workplace. Mine Safety and Health Administration statistics showed that, in 2004, back injuries accounted for over 20% of all injuries (1,699 cases) and resulted in 110,000 lost days of work. Forty-one percent of those injuries resulted from materials-handling or maintenance activities.1 In addition to back injuries, lifting injuries include hernias, ruptures, sprains, and strains resulting from losing control of the item being lifted. Factors associated with accidents are weight of the item being lifted, awkward postures, inadequate handholds, and the working environment itself. High accident rates were noted when lifting items that ranged from 50 to 600 pounds, particularly in tight working quarters where maneuverability was critical. Research indicated that a mobile lifting arm would eliminate many lifting accidents in environments where other lifting devices (fork lifts, overhead cranes, mobile A-frames) would not be practical. NIOSH has built a first-generation mobile manipulator unit designed to be used on hard, level floors such as in a shop. The complexity of motion, number of moving parts, compact design, and design constraints of the manipulator required advanced computer-aided design work (Figure 3). As a result of the design work, thirty-eight claims are included in the patent applications. NIOSH will be conducting field trails and working with manufacturers to put the manipulator into industrial use.

Dec 1, 2006

The NIOSH Office of Mine Safety and Health has released communication products about flyrock safety in the form of informational brochures, flashcards, and toolbox talk materials. Both the mining and construction industries are targeted with these helpful communication tools. These new products can be used as refresher training for employees and as introductory safety materials for onsite visitors.

Dec 1, 2006

Objective To characterize the roof fall risk associated with underground limestone mining. Background During the first 5 years of this decade, more than one-fourth of the underground mining fatalities occurred as the result of fall of ground. The large openings in underground stone mines present limitations in observing ground conditions because of floor-to-roof heights ranging from 20 to 60 ft or more. Generally, the status of ground conditions in under-ground stone mines is based on observation and experience obtained during mining development. Some mines use monitoring instruments to gain information on roof conditions, but this practice is typically focused and localized to address issues in a particular area or section of the mine. The Roof Fall Risk Index (RFRI) described here provides a method of systematically characterizing the risk of roof falls to enhance the safety of mine workers. Approach As in many industries, a defective product signals the potential for failure. Similarly, defective rock or strata in an underground stone mine presents a potential risk. Assessing ground conditions relative to the concentration of defects observed provides a way to index or rate these conditions and the subsequent risk. Through observations at approximately 50 underground limestone mines in the United States, strata defects were categorized to develop a quantitative method for determining the RFRI. This method is specifically geared to underground lime-stone mines because strata defects are difficult to see and limited by the experience and knowledge of the observer. Overall, 10 defect categories were deter-mined: 3 that relate to geology, 4 that result from mine development, 2 that are indicative of the roof profile, and 1 that addresses moisture or water flow (see RFRI Chart 1). The defect categories are also weighted to reflect the conditions indicative of roof or strata movement or separation (categories 4 through 8). These weights are multiplied by the assessment value to determine the total category value. The benefit of using monitoring techniques to gain information on roof conditions is also factored into the RFRI for overall assessment of an area in the mine. Each defect category is assessed with a value of 1 to 5 based on parameters as defined in each defect category, with 5 indicating the highest degree or level of defect. The assessment value of 3 is also used when information on a parameter is unknown. The parameters for the defect categories are illustrated in RFRI Chart 2 for use in determining the assessed value. How It Works The RFRI provides a means to categorize the risk for roof falls in underground stone mines. The concept of this calculation is aimed at providing an indication of the level or degree of defect relative to the area of the mine examined. The RFRI for the calculation produces a distribution where RFRI values approaching 0 represent a stable condition and those ap-proaching 100 represent an unstable condition.

Oct 1, 2006

By Nobuyuki Okamoto

The 21-year long-term Japan-SOPAC Cooperative Deep-sea Mineral Resources Study Programme was completed in March 2006. The Programme, which commenced in 1985, has seen numerous marine research surveys being conducted within the Exclusive Economic Zones (EEZs) of 12 SOPAC member countries (Figure 1). The various research and government institutions that have been closely involved in this longstanding Programme include: the Japan International Cooperation Agency (JICA); Japan Oil, Gas and Metals National Corporation (JOGMEC) (formerly, the Metal Mining Agency of Japan, MMAJ) and relevant ministries of the participating Pacific Island governments.

Sep 24, 2006

By Tetsuo Yamazaki

The Kuroko-type seafloor massive sulfides (SMS) in the western Pacific have received much attention as sources for economic recovery of gold (Au), silver (Ag), copper (Cu), zinc (Zn), and lead (Pb). Since the end of the 1980s, the Kuroko-type SMS have been found in the back-arc basins and on oceanic island-arc areas. In Okinawa Trough (Halbach et al., 1989) and on the Izu-Ogasawara Arc (Iizasa et al., 1999) are the typical representatives in the Japan’s EEZ. They yield a higher concentration in Au and Ag than the SMS found in ocean ridge areas (Rona, 1985). Similar formation processes with the Kuroko ore deposits on-land in Japan have been expected and outlined by many researchers (Sillitoe, 1982; Scott, 1985). The higher Au and Ag contents have increased the chances for profitable mining operation, which is under consideration by a private company (Malnic, 2001). Information about the resource potential of the targeted Kuroko-type SMS deposit, such as the amount of SMS ore body, the inside structure, the mean metal yields, and the geographical details are necessary for a technical and economic validation analysis for the development. The Sunrise Deposit of Myojin Knoll on Izu-Ogasawara Arc in the Japan’s EEZ is selected as a target for the technical and economic validation analysis. The relatively higher amount of information on its resource potential is the reason why the deposit is selected.

Sep 24, 2006

By Janine Lahr, Peter E. Halbach

The Manus Spreading Ridge is located within the EEZ of Papua New Guinea and lies in the Manus Basin ENE of the PNG Island and N of the Island New Britain. The divergent backarc spreading system is caused by the subduction of the Solomon plate in the South under the Bismarck plate in the North along the lineament of the New Britain trench. The rate of divergence is relatively high compared to other back arc spreading systems and amounts up to 12 cm/year [3]. Since submarine volcanism and associated hydrothermal circulation as important parts of the oceanic heat transfer system are also dependent on the rate of spreading, hydrothermal fluid venting and respective deposition of polymetallic sulfides can be expected there. In late 1985 first indications for hydrothermal activity were observed on a swell within the central rift valley of the Manus Spreading Centre during a photographic survey of the seafloor by an expedition of the Hawaii Institute of Geophysics with the American RV Moana Wave [1]. Detailed geological investigations including successful sampling were first carried out in June 1990 within the scope of the OLGA II research project (conducted by Prof. Tufar, Marburg) using the German RV Sonne equipped with a deep-sea television sledge and Tvcontrolled grab systems. Simultaneously a research cruise with the Russian RV Akademic Mstivlav Keldysh took place using the manned submersible Mir; the findings of the OLGA II cruise were immediately used for planning and organization of the Mir dives [3]. The massive sulphide samples which we used for our geochemical and mineralogical studies originate from the hydrothermal fields 1 and 2 and are from grab stations of the OLGA II expedition [4].

Sep 24, 2006

By Sally Philpot, Siân E. Boyd, Hubert L. Rees, Emma Bee, Carla Houghton, Ceri James, Silvana N. R. Birchenough, S. Limpenny David, A. Coggan1 Roger, Koen Vanstaen

Every year approximately 22 million tonnes of marine sand and gravel are dredged form British waters. The eastern English Channel (EEC) contains substantial reserves, a proportion of which have been identified by the aggregates industry for potential future exploitation. The main aim of this study is to produce broadscale marine habitat maps of the EEC area. The UK aggregates industry has formed a consortium of representatives (the eastern English Channel Association), and have sponsored an initial baseline survey and follow-up sampling programmes as part of a Regional Environmental Assessment (REA) covering a patchwork of aggregate prospecting areas. To complement this effort, a large-scale geophysical survey was conducted in 2005 to place the REA in a wider spatial context and, thereby, to help assess the environmental significance of any future impacts arising from commercial aggregate extraction over the broader region of the EEC.

Sep 24, 2006

By Daisuke Monoe, Kisaburo Nakata, Rika Takeuchi, Tetsuo Yamazaki, Tomoaki Oomi, Tomohiko Fukushima

There are generally two methane passes in conjunction with the seafloor natural cold seepages, as is schematically shown in Fig. 1. The first pass consists of the coupled anaerobic oxidation of methane and anaerobic sulfate reduction, as well as sulfur oxidation in the bacterial mats and immobilization thereafter in the sediment layer and on the seafloor. Through the first pass, calcium and organic carbonates are formed in biological and chemical processes from the methane (Luff and Wallmann, 2003; Luff et al., 2004). The detailed structure of the seafloor methane consumption process unit and its biological and chemical processes were introduced in Yamazaki et al. (2005). The other pass consists of direct bubbling into the water column. Through this pass, organic carbonate is formed with biological oxidation, and a small amount of the methane escapes into the atmosphere. Methane flux is supplied to these two passes through the sediment layer from the deeper structures. The structure of the methane supply process unit was introduced in Yamazaki et al. (2006).

Sep 24, 2006

By Tetsuo Yamazaki

Metal market prices rose drastically in 2006, and most broke historical records as shown in Figs. 1-4. This increase has been basically driven by economic growth in Asian countries, especially China. The growth trend is expected to continue for several years. Then, India will follow the same growth trend. Their metal demands keep the price levels high for 20 years or more. One more additional important factor on the metal market prices is hedge funds come into the market. Japan imports all metals for domestic use from overseas. The amounts imported were 1.27 million tons in copper, 0.32 million tons in lead, 0.59 million tons in zinc, 0.20 million tons in nickel, and 1.18 million tons in manganese, respectively in 2006 (Source: http://www.jogmec.go.jp/j_resourse/index.html#03). Though mainly we import the concentrates and our domestic customer smelters take the part of metallurgical leaching, the payment necessary for purchasing the concentrates is estimated about US$ 10 billions in 2006. The payments in 2005 and in 2003 were about a half and a quarter of the 2006, respectively. Japan must have effective counter measures to reduce the future payments.

Sep 24, 2006

By Alan Foley

The Portable Remote Operated Drill was developed in Sydney, Australia in the 1990’s. The device is a platform for many in-situ seabed sampling and coring tasks. The range of tools developed for use in PROD’s magazine now includes gas detectors, vane testers, penetrometers and corers. This paper presents aspects of the soils testing undertaken in deepwater since 2005, focusing on testing of methane hydrates and reefal accumulations. The varied selection of tools carried in PROD’s magazines allow the unit to perform several functions from the seafloor in one deployment.

Sep 24, 2006

By H. I. Chesalova, M. Ye. Melnikov, A. M. Asavin

The discovery of iron-manganese ores on the surface of underwater mountains was made more than a half century ago. During this time the basic ideas about the thermodynamics of the processes of hydrochemical reactions in the sea water have been developed by scientists and are revealed in geochemical and mineralogical differences between the deposits from the seamounts and the nodules of the sea bottom. The distribution of the dissolved metals, oxygen, carbonic acid and organic matter in the overlying ocean waters of seamounts in the deep ocean to depths more than 5,000 m has been studied in some detail (e.g. J.R. Hein, P. Halbach. G.B. Baturin, Ye.M., S.I. Andreev, L.I. Anikeyeva, [1-6]). In recent years scientists from YUZMORGEOLOGY have completed detailed geological survey work on the Magellan Seamounts in the Pacific Ocean. The results of drilling the ore body and geophysical and photo surveys have also been described [4]. Previous ideas about the general covering of seamount surfaces with iron-manganese crusts have been changed based on ground-truth surveys. This study examines the complex concentric-zone or spotty arrangement of the most densely covered sections, the strong dependence of the thickness of crust on the geomorphologic features, and the potential influence of the underlying substratum. One established geochemical heterogeneity in the composition of ores, also frequently inversely proportional power dependence on directions was observed. The development of a numerical model of the formation of the ore crust on the seamounts is currently a high priority.

Sep 24, 2006

By Robert Goodden

It is well known that diamonds are found in Kimberlite pipes within the earth’s crust and are also discovered where erosion has released them to be concentrated by rivers in trap sites within alluvial gravels. Few people are aware however, that diamonds are now being found in significant quantities at sea. And that the rugged marine environment has ensured that the quality of diamonds in the sea is predominantly gem quality. Shortly after intrusion of Kimberlites into the host rocks of the karoo in the Cretaceous period massive erosion occurred when torrential rivers carried diamonds from their Kimberlitic source rocks down the rivers and into the sea. In the sea they have been subject to a transporting and concentrating dynamic, which has deposited them in trap sites along the West Coast of Africa for hundreds of kilometers. In the last 60 million years the sea level along the West Coast has varied in steps from the current sea level to – 300m. With time at each beach level the sea has reconcentrated the diamonds previously carried down. These old beach levels exist at roughly 10 meter intervals. Each previous sea level now provides a target for marine miners. Marine diamond mining was started 46 years ago by the first pioneer, a Texan, Sammy Collins. Collins brought the potential of marine diamonds to the attention of major mining companies. With now outmoded technology Collins had days when he recovered pockets of high grade gems worth several million dollars; an excitement hard to equal in any walk of life. Amongst marine miners there is still a strong pioneering spirit but the industry has matured and now aims to consistently produce over two million carats of gems a year. The potential resource is huge stretching up to 30 kilometers offshore along the West Coast of Africa from South Africa to Angola.

Sep 24, 2006

By E. Moriguchi, K. Tamaki, A. Okuda, K. Iizasa, C. Honsho

The northern Izu-Ogasawara Arc is characterized by an abundant distribution of submarine calderas along the volcanic front to the back-arc rift zones. In many of these calderas hydrothermal activities are observed. Among these calderas, hydrothermal ore deposits with economically feasible quality and amounts are hosted at two calderas, the Myojin Knoll Caldera and Beyonnaise Knoll Caldera. We conducted two research cruises in 2005 and 2006 to investigate further hydrothermal activities and ore deposits in these calderas and to complete the geological and geophysical mapping in the area. We discovered a strong signature of hydrothermal activity in the Myojin-sho Caldera using AUV capabilities. Newly obtained geological and geophysical data clarified the relationship between back-arc rifting tectonics and hydrothermal activities in the area. Five calderas (two of them newly found) and numerous (>200) volcanoes are mapped in the area. Complete SeaBeam coverage showed a distinct feature of the back-arc rifting activity and its relationship to the submarine calderas on the volcanic front. The back-arc rift zones composed of four segments separated by E-W trending volcanic ridges. Three of the calderas are located in the rift zone and are heavily deformed by the rift normal faulting that typically trend NNW-SSE. As the Beyonnaise Caldera is located in a swarm of faulting zones at the eastern end of the back-arc rift, the formation of the hydrothermal ore deposits found in the Beyonnaise Caldera are apparently affected by these faulting activities. Newly found submarine calderas are located in the rifting zone and are heavily faulted.

Sep 24, 2006

By H. L. Gibson, U. Schwarz-Schampera, Mark Hannington

Ancient ore deposits provide important clues for the understanding of the origin and distribution of modern submarine hydrothermal systems. An analysis of the formation conditions, tectonic settings, and preservation of ancient seafloor mineral deposits from the recent geological past to the late Archean sheds light on the time-space relationships and diversity of mineral deposit types likely to be found in the modern oceans. Microplate tectonics that characterized ancient ore-hosting greenstone belts were strikingly similar to those active in volcanic arc environments of the western Pacific today. In such complex settings, oblique collisions, opposing subduction zones, and rapid changes in stress regimes (e.g., from compressional to tensional and back to compressional) were common, causing juxtaposition of diverse styles of mineralization. The world-class base metal deposits of the late Archean Abitibi greenstone belt of Canada, for example, were formed within a relatively short time span of ~20 m.y., in response to successive arc rifting, back-arc basin development, and exhumation of accretionary complexes along major arc-parallel crustal-scale faults. Similar processes and environments are important settings for metallogenesis in modern submarine volcanic arcs. Active marginal basins of similar size and representing similar stages of evolution are well represented in the western Pacific today and contain a similar suite of mineral deposit types. Examples from the eastern Manus Basin and adjoining New Ireland Basin (PNG) and in the Lau-Tonga-Kermadec arc-backarc system illustrate these similarities. Certain gold-rich volcanogenic massive sulfide deposits at the southern margin of the Abitibi greenstone belt (e.g., Bousquet and LaRonde deposits in the eastern Blake River Gp.) may be important ancient analogs of newly discovered gold-rich black smoker deposits found along the active fronts of today's submarine volcanic arcs.

Sep 24, 2006

By Raúl Veramendi

El presente texto describe la aplicación del sistema electrónico en las operaciones de voladura de la mina Cuajone. En ese sentido, los detonadores electrónicos son usados para incrementar la fragmentación en la voladura de rocas aplicando los tiempos de retardo óptimos entre taladros para conseguir la interacción de ondas (Ondas P y S) que incrementa y maximiza los esfuerzos de tracción.

Sep 19, 2006