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By B. Berhe, R. D. Lawrence, J. Hinzer

"The fortunes of mining companies and their implied value are tied to cycles - both economic and commodity – within which they operate. Hence the determination of appropriate future metal prices is one of the most critical factors faced by mineral valuators especially for advanced projects. Price, and hence revenue, is usually the most sensitive input to the valuation model. Empirical studies of past forecasts show that the success rate for commodity price forecasting is very poor. This paper explores various approaches and comments on their strengths and weaknesses. We conclude that careful evaluation of long-term metal prices is a key element and is hardly a luxury that can be left to simple averages or rules of thumb. INTRODUCTION Discounted Cash Flow (""DCF"") analysis, is well suited for the valuation of advanced mineral development assets, for which there are identified mineral resources and some form of economic assessment (Pre-Feasibility or Feasibility Study). The DCF method is also the most commonly used method for determining value for such assets. It provides a means of relating the magnitude of expected future cash flows from profits (or losses) to the magnitude of the initial cash flow (investment) needed for capital expenditures to purchase or to develop an asset for commercial production. The method proves useful in making investment decisions as it allows for the quantification of the Net Present Value (“NPV”), as well as the Internal Rate of Return (IRR) and Payback Period on initial investment capital. Valuation by its very nature is a forward-looking exercise. The DCF method attempts to estimate the NPV of expected future cash flows, by selecting factors that will likely affect future cash flow based on informed analysis. One of the most critical and sensitive factors is the determination of appropriate future commodity prices. “The variables that have the greatest impact on a DCF evaluation are the reserves, the metal prices, and the discount rate.”1 The determination of future commodity prices for valuation purpose or during M&A negotiations is a hotly contested issue. There are a number of analysts, institutions and specialized commercial data suppliers that provide both short and long-term commodities price forecasts. Also, the use of an aggregated mean for all available forecasts, or consensus forecasted prices for valuation purposes is not uncommon. The methods used in making forecasts for each forecaster may vary and in many cases may not be publically disclosed. Nonetheless, the aggregated mean of all forecasted commodity prices of reputed institutions is usually taken to “represent the market’s view of likely future commodity prices.”"

Jan 1, 2016

By D. H. Garcia

The mining industry responded to public concerns about use of cyanide by developing a voluntary certification to allow companies to demonstrate their commitment. The International Cyanide Code (Code) establishes standards for the manufacture, transportation and use of cyanide. Key concepts in closure planning to comply with the Code are to decommission all facilities related to cyanide operations and to provide a financial assurance mechanism for those activities. Code requirements may differ from state-specific regulations, but requirements are based on closure goals for protection of the human health and the environment. Only issues related to cyanide operations are required to be included in decommissioning demonstrations. For example, the disposal method of cyanide solution holding tanks and the cost must be included in the closure plan, but information regarding closure of roads is not required. Closure costs must be based on a third-party contractor as opposed to internal budgets. Compliance with the closure requirements of the Code allows companies to show their stockholders, lending institutions, and the public that their operations are environmentally responsible.

Jan 1, 2010

By A. G. Moon

Kennecott Copper Corporation's Chino Mines Division concentrator is located in Hurley, New Mexico. Construction of the concentrator was started in 1910 and its capacity was progressively increased over the years to the present nominal 20, 425 t/d of ore (22, 500 stpd). The principal copper minerals present in the ore are chalcopyrite and chalcocite with much of the chalcotite intimately associated with pyrite. Lime is used to depress pyrite, and flotation at a high pH or alkalinity is required for optimum recovery of chalcocite with good rejection of the pyrite. Regrinding is also required to liberate chalcocite-pyrite middling grains. Accurate control of the lime addition is necessary to obtain both optimum metallurgy and minimum lime usage. At low pH levels, flotation cell control is difficult due to excess froth, but excessively high pH levels can go unnoticed because froth characteristics do not change from those experienced at the deisred pH. With manual control of the lime addition, the desired pH can be exceeded for periods of up to two hours. In 1972 a major renovation of the flotation and regrinding circuits was com¬pleted and at that time a new lime distribution and control system was placed in operation. Limestone is obtained from a nearby quarry west of Hurley. The limestone is crushed, sized and fed to a rotary kiln and the quicklime product is stored prior to slaking. The lime is slaked, as required, in a mixing tank-classifier type slaker and the lime slurry is pumped to a concentrator storage tank from which it is distributed through a conventional closed loop system. The current average lime usage rate is approximately 6 kg/t of ore (12 lb per st).

Jan 1, 1976

By James A. Finch, Xiang Zhou, Yue Hua Tan

Methods to determine frother functions, control of bubble size and froth properties, are now widely used. Some collectors also exhibit frother functions which are less understood. Using a water-air system in a mini-mechanical flotation cell setup, this paper determines bubble size and water overflow rate for three amine collectors: one primary amine (dodecylamine, DDA) and two commercial ether amines (Flotigam® EDA and Flotigam® 2835-2L) and their combination with two common frothers, MIBC (methyl isobutyl carbinol) and PPG 425 (polypropylene glycol, molecule weight 425). Compared to the frothers, the amines were less effective in reducing bubble size, giving larger minimum size and the two commercial amines showed evidence of coalescence at low concentration. In blends, at fixed frother dosage, frother eliminated the coalescence but as amine concentration increased the amines dominated bubble size. Water overflow was a strong function of reagent type. For fixed 1-cm froth depth, PPG 425, Flotigam® 2835-2L and to a lesser extent DDA produced overflow while MIBC and Flotigam® EDA did not. In blends with frother overflow increased except with Flotigam® EDA. Mechanisms are briefly explored. The principal benefit of blending identified is the elimination of coalescence if residual concentration of the two commercial amines is below ca. 10 ppm.

By K. Heasley, A. Yassien, A. Khair, S. Peng

There are three major components of a fully grouted roof bolt which primarily determine its ability to develop and sustain load: the steel rebar, the resin annulus, and the rock/grout interface. The untensioned, fully grouted roof bolt is subjected to loading only when the surrounding rock deforms. Vertical rock deformation is generally a result of strata sagging and bedding plane separation, whereas horizontal deformation is typically a result of bedding plane sliding. These two types of deformation create different types of internal loads with-in the roof bolt, tensile stress for vertical rock deformations and shear stress for horizontal rock deformations. Also, as a result of the mutual load transfer between the rock and bolt, shear stress will be developed along the grout/rock interface. According to the exact bolt loading conditions, different failure modes may occur: bolt axial failure, bolt shear failure, and shear failure along the grout/rock interface. Understanding these possible failure modes and their root causes is the key to eliminating roof failures in underground mines employing fully grouted resin bolts. Using ABAQUS 5.8, a finite element model was developed to simulate the components of the fully grouted bolt and its interaction with the surrounding roof strata. Several models were conducted to investigate how load transfer occurs between the rock and the bolt under different geological and mining conditions. The effects of bed-ding plane location and properties, and strata sequence on bolt stability were studied. Also, the effects of hole roughness on bolt stability were discussed. Bolt axial failure was not observed within the range of the studied parameters; however, a combination of high overburden depth, a bedding plane located at 2 to 3 ft from the roofline or a low coefficient of friction along the bedding plane caused strata sliding and shears failure in the bolt. Also, in the case of a weak immediate roof, the shear stress at the grout/rock interface could exceed its ultimate capacity lead to slippage.

Jan 1, 2004

By Dennis Ofiara, Michael Lewis

An experimental 1.75 meter Shaft Boring Machine was designed and manufactured by The Robbins Company. The drill was used by contractor Drillcon Raise AB to drill test shafts at an SKB underground test facility. SKB is the Swedish authority responsible for safe management of nuclear waste materials. This “SBM1.8” Shaft Boring Machine was used to drill shallow test shafts ingranitic rock at SKB’s Aspo underground laboratory. The drill used a unique vacuum mucking system. The bored shafts were held to very strict tolerances for bore diameter, straightness, and verticality. This drill was launched and operated from a mobile launcher. Headroom and working space were limited. The SBM1.8 drill produced acceptable test holes. SKB will carry out several studies to determine the suitability of this geology, and of this technique, for safe nuclear disposal. In addition to future use at SKB, many applications are foreseen, particularly in the civil construction industry.

Jan 1, 2005

By R. J. Thompson

Well-designed and maintained haul roads are the key to minimizing truck haulage onroad hazards and costs, as well as increasing productivity. In practice, however, designing and managing a haul road for optimal performance is often difficult to achieve, especially when resources assigned to design and construction are constrained. By understanding how a road design is developed from geometric, structural, functional and maintenance considerations and, critically, the interplay between these components in design and operation, optimal performance can be achieved. This paper briefly summarizes the evolution of mine haul road design, from the seminal USBM work of Kaufman and Ault in 1977, through to current geometric, structural, functional and maintenance management design components. These augmented design and management guidelines have been developed over the past decade, both in response to the requirements of mine operators for safer and more efficient haulage systems, the truck manufacturers’ requirements for a more predictable and controlled operating environment and the recognition of human factors as a significant contributor to haulage accidents. While the human factor is the most problematic to address in a road design, the paper shows that the more that is known about human error, the better a road can be designed to accommodate those actions or non-standard practices that would, on a poorly designed road, invariably escalate an error into an accident.

Jan 1, 2010

By Anna Sukhanova, Svetlana Babaeva, Sergey Andreev, Victor Beltenev

"The Zenith-Victoria /1/ and Jubileynoye /2/ hydrothermal fields have symmetrical structural position on the Mid Atlantic Ridge (Fig. 1). In order to compare the evolution of hydrothermal systems, we conducted mineralogical and geochemical studies of SMS from both sites.Radiochemical and geochemical investigations of massive sulfides of the Zenith-Victoria field distinguishes three major stages of evolution: initial, interim and final represented by Fe-S, Cu-Fe and Zn-Fe types of SMS respectively /3/. In this talk, we describe the results of geochemical analysis of massive sulfides from the Zenith-Victoria field. Geochemical varieties of SMS are considered to be indicators of the evolutionary stages of the hydrothermal system."

Sep 1, 2014

By C. Rodriguez, T. BoBo

Comminution, being the energy intensive part of a mining operation receives much scrutiny by cost controllers, CEO’s, investors and others as the mining industry goes “back to basics” to reverse the decline in productivity which occurred during the mining super cycle. Blasting is the first and lowest cost per ton stage in the comminution value chain. The basic principle that effective blast design can optimize fragmentation from the Run of Mine (ROM) ore muck pile to improve productivity through digging, loading and crushing to grinding and increase mine site profits has been well documented. Benefits of controlling fragmentation in the blast include reduced wear on equipment, faster loading, increased truck loads while detecting oversize rocks at the muck pile can reduce the frequency of a blocked primary crusher. A second basic principle is a measure of particle size distribution (PSD) at each unit operation in the comminution cycle allows engineers to manage blast design to produce fragmentation in the ROM ore most suitable to optimize downstream unit processes to improve mine site productivity and profits. Split-Online® systems have measured PSD of rocks on conveyors from the primary crusher to the SAG mill for over 20 years. Split-Engineering partnered with various mining companies to develop Split-ShovelCam® to automatically measure fragmentation from shovels and excavators working the ROM muck pile. This paper takes the reader “Back to Basics” by discussing the use of real time fragmentation analysis at the muck pile as an important parameter to optimize energy factors required for each blast. Case studies are given. INTRODUCTION The basics of mining are: • Explore for and find economic resources of valuable minerals • Mine rocks containing valuable minerals using blasting • Crush and grind rocks to liberate valuable minerals (comminution) • Recover valuable minerals for sale Comminution is an energy intensive process which accounts for a major proportion of mine site costs. Effective blasting can improve comminution and deliver significant reductions to mine site unit costs, (CEEC, 2016). Engineers, scientists, builders and even philosophers have long promoted the phrase “measure to manage”; the premise being “you can’t improve what you don’t measure”. Blast Engineers measure fragmentation in ROM ore for feedback to manage energy input in the design of blast patterns to optimize the ROM product size for downstream operations, whether they be for ROM Leach or feed into the primary crusher.

Jan 1, 2019

By Madan M. Singh

Increasingly, geotechnical data are being collected for various types of coal development projects. In many cases, a specific design concern is addressed. However, many data collection programs are not intended to immediately support mine design activities or to resolve a specific concern. The following discussion describes some current geotechnical approaches in mine planning, development of reserves, and peripheral activities. Types of Data Collection Programs Geotechnical data collection is increasingly becoming a part of standard coal exploration programs, performed along with stratigraphic evaluations and coal quality tests. The aims of such programs vary. The purpose of the exploration may be to fill out the portfolio on a block of reserves that is to be sold, leased, or held for potential future development. In such a case, a generic suite of geotechnical data are collected. The resulting engineering reports may touch on the more well known mining problems of the area, but detail may be lacking. The geotechnical data are mostly intended to enhance the saleability of the package. Mine design alternatives are generally not addressed.

Jan 1, 1985

By J. F. T. Agapito, R. R. Goodrich

Yield pillars have been used for many years to help reduce stresses near mine openings and improve roof and floor stability. A yield pillar is often defined as a pillar that fails but retains residual strength. Stress transfer occurs through the roof and floor after the peak strength of the pillar is reached. High stresses are transferred from around the openings onto abutments that can be barrier pillars or unmined ground. This mechanism, often referred to as pressure arching, is possible as long as the width of yield pillars is less than the critical width above which stresses cannot be carried by the overburden. Significant stress transfer also can occur due to small amounts of pillar and/or floor yielding before the peak strength is reached. This is accomplished in a quasi-elastic manner with little or no visible roof and pillar fracturing or floor heave. Long-term stability may be achieved when stresses and mechanical properties are favorable to pre-failure yielding. This paper gives practical examples where improvements in stability and resource recovery were achieved with this mechanism. Yielding was assessed by comparing measured and calculated vertical pillar stresses. Results indicated that calculated stresses in the pillars were 25 to 40 percent higher than the measured stresses, demonstrating significant arching load transfer to the abutments. Pre-failure yielding is probably often present but unintentional in both development and production areas. Better recognition and use of this mechanism should lead to improved designs as mines become deeper.

Jan 1, 2001

By Neha Shukla, Nikhil Dhawan

The current study examines the extraction of rare-earth elements from trichromatic phosphor of discarded tube lights via baking processes. The Y2O3: Eu3+ (YOX) and BaMgAl10O17: Eu2+ (BAM) phases completely decomposed during acid and alkali baking with > 90% Eu and Y extraction. Prior, selective acid leaching of the YOX phase enhanced the acid baking process at a lower temperature (< 230 ℃). Feed acid baking showed a maximum 87% Tb, 36% La, and 17% Ce extraction at 500 °C, 0.5 h, 1 ml/g H2SO4, and alkali baking yielded 16.1% Tb, 86% La, and 73% Ce at 300 ℃, 0.5 h, 50 wt.% NaOH. The acid baking of the acid-leached phosphor yielded 72% Tb, 95% La, 63% Ce, ~ 95% Y, and Eu extraction at 300 °C, 0.5 h, 1.05 mL/g H2SO4. Lower Tb extraction during the acid baking of acid-leached phosphor can be attributed to the formation of Ba3Tb( PO4)3 and BaTbO3 phases. Insoluble Si3Tb5 phase formation and partial decomposition of CeMgAl11O19: Tb3+ (CMAT) phase in the alkali baking route leads to lower Tb extraction. The acid baking process is suitable for extracting Tb, Eu, and Y, whereas the alkali baking process is suitable for La and Ce. The thermal analysis of phosphor and flux interaction depicts that alkali baking is less energy-intensive than acid baking. In comparison, the one-step acid baking process and the two-step alkali baking process yielded desirable extraction results (87% Tb, total RE (rare earth) 78.5% and 50.4% Tb, total RE 59.3%). The product yield in the acid and alkali baking route of feed, acid-leach phosphor is 36%, 29%, and 39%, 28.2%, respectively, with ~ 98% mixed rare-earth oxide purity.

May 5, 2022

By D. Kruse

Top-down constructed large-diameter (up to 90 m or 300 ft) shaft design and constructability issues present an interesting suite of challenges and opportunities highlighted in this paper. The study covers 2D and 3D finite element models used to analyze various failure modes, evaluate the shaft liner and internal structures&apos; response to seismic loading, assist in segment design and assess final structural design tradeoffs. Efforts to achieve economic advantage over conventional heavy civil practices have prompted innovative solutions for ring and segment design, ring build assembly and annulus backfill grouting. Intended for soft ground conditions, relationships between soil parameters and structure design are also explored. Mining Engineering, 2011, Vol. 63, No. 9, pp. 81-88. Official publication of the Society for Mining, Metallurgy and Exploration, Inc.

Jan 1, 2011

By S. T. Murray

The European industrial minerals industry and its markets are largely self-sufficient. The companies who are members of the Industrial Minerals Association (IMA-Europe) number around 150 contributing 5 billion Euros to the EU?s GDP and range in size from global publicly quoted corporations to small family owned private companies. Their means and capability to implement sustainable development vary considerably. However the leading companies provide an excellent set of best practices, which IMA as a trade association with recognised core competencies in the field of sustainable development is ideally placed to promulgate throughout its membership. As an active participant in the EU Voluntary Scheme for SDI reporting IMA is not only working to increase the level of response to the SDI questionnaire but is also developing with its members a new sustainable development charter which its members will voluntarily adopt as a guiding principle for their implementation of sustainable development This work will be a consultative process involving all IMA?s section members as well as other trade associations, NGOs and MEPs. Public awareness of the benefits of minerals and their contribution to sustainable development has been raised by IMA?s awareness campaign now being followed by a more targeted programme aimed at MEPs. Further work in the future will consider product stewardship and life-cycle analysis. IMA is already positioning itself with the help of its members to assimilate the minerals industry of the accession territories in the sustainable development process.

Jan 1, 2003

By Douglas Beahm

Energy Metals Corp. (EMC) holds numerous mineral properties in the northern portion of the Great Divide Basin. The JAB property is one of several potential properties being planned for development as a satellite facility to the greater Antelope uranium project. A National Instrument 43-101 Technical Report was completed for the JAB property. This report estimated total measured and indicated mineral resources on the property totaling 1.6 kt (3,555,022 lbs) U3O8 contained in 2.2 Mt (2.4 million st) at an average grade of 0.073 percent U3O8 at a 0.25 grade times thickness (GT) cutoff in accordance with CIM Standards on Mineral Resources and Reserves. The JAB property is located in Sections 13, 14, 15, 16, 21, 22 and 23, Township 26 North, Range 94 West, approximately Latitude 42° 14’ North and Longitude 108° 00’ West (Fig. 1). This property consists of unpatented mining lode claims and Wyoming state mineral leases com-prising approximately 850 hm2 (2,100 acres).

Jan 1, 2007

By Baojie Zhang

The main goal of this study was not only to investigate the effectiveness of the FGX Dry Separator for removing pure rock from run-of-mine coal producing a better feed stock for conventional coal preparation plants but also to optimize the FGX Dry Separator performance for producing a salable clean coal product without using the conventional wet coal preparation processes. A Model FGX-1 Dry Separator with feed throughput capacity of 10 tph was extensively tested at the Illinois Coal Development Park using two coal samples having distinctly different cleaning characteristics. Statistically designed experimental programs were conducted to indentify critical process variables and optimize FGX Dry Separator performance by systematic adjustments of critical process variable parameters. The coal cleaning performance of the FGX Dry Separator was evaluated for the particle size range of 63.5 x 4.76 mm in most cases, although FGX Dry Separator feed consisted of nominal -63.5 mm run-of-mine coals. The best cleaning performance obtained from the FGX Dry Separator is described by specific gravity of separation (SG50) and probable error (Ep) values of 1.98 and 0.17, respectively. The SG50 and Ep values for individual size fractions were as follow: 1.90 and 0.12 for the +50.8 mm size fraction, 1.95 and 0.18 for the 50.8 x 25.4 mm size fraction, 2.01 and 0.19 for the 25.4 x 12.7 mm size fraction, and 2.03 and 0.23 for the 12.7 x 4.76 mm size fraction. These process efficiency measures produced a clean coal with ash content of 13.38% from a feed coal with ash content of 34.45%. Ash content of tailings and middlings streams were 85.09% and 39.57%, respectively. Total sulfur contents of corresponding streams were 3.87%, 4.68%, 6.87%, and 4.62%. For a relatively easy to clean Illinois No 6 seam coal (Cleaning Index: 0.72), only about 0.42% of the clean coal (i.e., 1.6 float fraction) present in the feed was lost to the tailings stream. For a relatively difficult to clean coal (Cleaning Index: 0.53), about 0.98% of the clean coal present in the feed was lost to the tailings stream.

Jan 1, 2012

By Paloma Lazaro, Moe Momayez

Heat-related illnesses (HRI) are relatively common in both hot surface and underground mining operations. When workers are exposed to extreme heat or strenuous work in a hot environment, they become prone to heat stress. Heat strain is the result of the body’s response to external and internal heat stress. It is therefore vital for the conditions leading to heat strain be detected and treated in a timely manner. Heat-related illnesses are manifested by exhaustion and heat stroke. The predicted heat strain (PHS) [ISO 7933 (2004)] model has been developed to predict the health condition of the worker in terms of core body temperature and water loss. The PHS model tested in this study is based on eight physical parameters that are measured at different intervals during a work shift. They include air temperature, humidity, radiation, air velocity, metabolic rate, clothing insulation, posture, and acclimatization. The model predictions are then compared with a direct physiological measurement, such as core body temperature. We present the results of an extensive study that monitored and predicted body’s response to heat stress under different environmental and working conditions. The PHS model provided reliable results in most instances in comparison with other prediction methods currently in use in the field.

By Paloma Lazaro, Moe Momayez

Heat-related illnesses (HRI) are relatively common in both hot surface and underground mining operations. When workers are exposed to extreme heat or strenuous work in a hot environment, they become prone to heat stress. Heat strain is the result of the body’s response to external and internal heat stress. It is therefore vital for the conditions leading to heat strain be detected and treated in a timely manner. Heat-related illnesses are manifested by exhaustion and heat stroke. The predicted heat strain (PHS) [ISO 7933 (2004)] model has been developed to predict the health condition of the worker in terms of core body temperature and water loss. The PHS model tested in this study is based on eight physical parameters that are measured at different intervals during a work shift. They include air temperature, humidity, radiation, air velocity, metabolic rate, clothing insulation, posture, and acclimatization. The model predictions are then compared with a direct physiological measurement, such as core body temperature. We present the results of an extensive study that monitored and predicted body’s response to heat stress under different environmental and working conditions. The PHS model provided reliable results in most instances in comparison with other prediction methods currently in use in the field.

By Jack E. Brockway

As tunnel boring machine technology has expanded, so has its range of application. Tunneling machines (TBM&apos;s) are tackling tasks today that fifteen years ago were considered "inappropriate". A case in point is incline/decline TBM boring. An incline or decline bore presents peculiar design considerations that differentiate it from a horizontal bore. This paper reviews those design considerations as they apply to TBM&apos;s, backup, muck handling and other tunneling subsystems. In addition, several abbreviated case studies are presented. By the review of real life tunneling techniques as well as design considerations, the "appropriateness" of TBM incline/ decline boring today becomes apparent. INCLINE Introduction In contemplating the impact of incline versus horizontal tunnel boring system design, the obvious consideration is gravity. Up-hill boring can be quite different than horizontal boring. Muck, water and machine weight all tend to slide down the incline. In addition, hydraulic and lubrication systems if unaltered, will find their fluids pooled in the lower corners contentedly ignoring such higher elevation items as gears and bearings. In order to address this inherent gravity problem, a review of

Jan 1, 1983

By David K. Hylbert

This study investigated roof falls in room-and-pillar drift coal mines in eastern Kentucky and utilized geologic methods for predicting roof conditions in advance of mining. In the Highsplint mine, the roof was classified in four categories or conditions: Condition A and B (Laminated Shale), Condition C (Rolling Sandstone with Shale in Pockets) and Condition D (Zone of Major Sandstone Roll(s)). Structure contour and isopach maps of the Darby coal bed and associated immediate roof rocks were used to project axial trends of the sandstone roof. Trend mapping in the mine and on outcrop provided more detailed control for roof projections.

Jan 1, 1978