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By F. E. Lathe

The method of feeding blast-furnaces to be described below is simply the application of well-known principles, and an attempt to carry that application to its logical conclusion. It does not involve radical changes in equipment, nor does it require unusual skill on the part of the furnaceman. In fact, much of its value lies in its very simplicity. Before giving details of the method it will be well to consider briefly the conditions under which it was used at the Nickelton plant of the British America Nickel Corporation, in the Sudbury district, before that plant closed down. The Sudbury nickel ore consists chiefly of pentlandite, chalcopyrite and pyrrhotite in a gangue of norite or greenstone. The proportions of sulphide and gangue vary widely in different mines, the former constituting about 45 per cent of the total in the British America sorted ore. The gangue is fairly uniform in analysis, carrying about 55 per cent Si02, 18 per cent A120 3, 13 per cent FeO and smaller quantities of CaO, MgO, Na20 and K20. The ore has been frequently described as refractory, a word which seems suitable when one considers the many unsuccessful attempts to smelt it pyritically, as well as the high percentage of coke normally used at all the plants in the district.

Jan 1, 1925

A mathematical model of a decision is represented by the table in Figure 4. The numbers in the matrix are a measure of the effectiveness of each alternate for an objective. In this case, it is the per cent of desired profit that is satisfied by each alternate for each objective. By adding all of the values in a row, we have a measure of which alternative is best for both objectives. However, if you think that alternate 1 is necessarily better than alternate 2, you are wrong. Why? Because the weight of the objectives may not be equal. It could just be that this plant can sell more than it can produce, so that the loss in profit represented by increased sales is more than twice as important as reductions in costs. (See Figure 5). In that case, let us weigh objective 1 as 30 per cent and objective 2 as 70 per cent. It must also be obvious that the sum of all the "objective weights" must equal 100 per cent. Now, by evaluating our alternates according to their weights. we find that alternate 2 is better than alternate

Jan 1, 1964

By Olli Haavisto, Juha Timperi

"Accurate on-line assays of mineral slurries are the basis for effective operation of flotation circuits. Typically the elemental content measurements are obtained by an X-ray fluorescence (XRF) analyzer, which samples the process lines and performs the analysis concurrently line-by-line. For a more frequent measurement of each slurry line the XRF measurements can be complemented with reflectance spectrum information. In reflectance spectroscopy the absorbance properties of the slurry in the visible and near-infrared wavelength range are analyzed. The advantage of reflectance spectroscopy is that measurements can be obtained quickly and simultaneously from several slurry lines. However, since the shape of the spectrum is only indirectly affected by the slurry elemental contents, frequent calibration of the measurement against the XRF analyzer is necessary. This study elaborates the combination of reflectance spectrum analysis with XRF. Results of laboratory tests for different slurries are presented and the operation of the system in a copper-zinc flotation plant is demonstrated.IntroductionElemental analysis of mineral flotation slurries is the most important factor in evaluating the performance of concentration processes. Timely on-line assays are also used as the basis for controlling the circuits and ensuring that the grade and recovery targets are reached. X-ray fluorescence (XRF) is the dominant technology in on-line elemental slurry analysis, and typically centralized XRF analyzers are used. The advantage of a centralized analyzer is that one measurement probe can be used to acquire the data from several slurry lines. This reduces the overall operating cost of the system when compared to distributed analyzer system design with several measurement probes requiring maintenance and spare parts. Slurry samplers are installed in the interesting process flows and representative sample flows are brought to the analyzer, where the slurry is further sampled and measured consecutively by the XRF analyzer. Due to the centralized structure of the analyzers and consecutively measurement of the sampling lines the sampling interval per slurry line can be relatively long. In larger concentration plants with several sampling lines a typical assay interval is in the range of 10-20 minutes."

Jan 1, 2016

By Cindy Schiewek

Industrial injury occurrences are an ongoing concern for Mine Operators. Along with the personal suffering of injured workers comes an increase in compensation and productivity costs. Growing recognition of repetitive stress and bodily injuries, accompanied by recent studies, validates the assumption that a relationship exists between ergonomic injuries and machine design. Intuitively, there is a belief that an ergonomically designed machine will reduce repetitive stress injuries through design and education however; quantifying this belief has been a challenge for Mine Operators. Sandvik Tamrock has undertaken a project aimed at developing a business model to assist in quantifying the benefits of ergonomic intervention. This model focuses on distinguishing and quantifying this method of intervention to allow for a better evaluation of the machine. For simplicity, the project initially focused on the Face Drill Jumbos. The target of the project was three fold: !" Recognition of the cost drivers for compensation; ergonomic injuries !" Identification of the relationship between ergonomic machine design, and the decrease of the negative effects associated with the cost drivers !" Systematic prioritization for ?prevention by design? The project findings substantiate the expected reduction in injuries and compensation claims. Based on all ergonomic intervention studies conducted, each case showed a reduction in compensation cost; through prevention by design, one can reduce the amount of potential risk. The paper addresses the resources and methodology used, along with the findings and its relevance to the issues that face the Mining industry.

May 1, 2003

The Industrial Minerals Milling Section of the Mineral Processing Division has been engaged for the past three years in a study of the separation of minerals, by means of electronic sorting equipment, on the basis of their colour. Considerable knowledge of the subject has been built up. Because the object of this study is application as a means of beneficiation, a number of examples of the separations achieved are presented. Introduction T 0 the mineral collector, the colour of a mineral may be pleasing, even fascinating; to the mineralogist, student or professional, it may also be practical. It serves, to some extent, as a distinguishing feature in many minerals, and helps to fix with reasonable accuracy the identity of a few. It may now become a useful tool of the mineral dresser. The idea of using a difference in colour as a means of separation of one mineral from another is not new. Hand sorting dates back to ancient time. However, the means by which this can be done mechanically was developed only during the past decade. As far as the Mineral Processing Division is concerned, interest dates from March, 1960, when the following item was observed in the

Jan 1, 1965

By R. P. van Hille, N. Mooruth

Remediation of acid rock drainage (ARD) was performed within a linear flow channel reactor (LFCR) via a floating sulphur biofilm (FSB). A full sulphur species material balance was conducted in order to characterize the sulphide oxidation. The reactor was able to achieve an 82% and 93% conversion of sulphide with a hydraulic residence time of 2 and 5 days respectively. 92% and 55.5% of the converted sulphide reported to the biofilm as sulphur for the 2 and 5 day residence times respectively. The mass transport limitations within the biofilm were identified via a dissolved oxygen gradient profiling system.

Jan 1, 2011

By K. Meyer

"The largest cost centres of the David Bell Mine concentrator are grinding, leaching and effluent treatment. Optimizing results during the 6th year of operation are listed below: o SAG mill slurry density control and operating strategies improved liner life and media consumption by 10 and 25%, respectively.o Poly-met liners clad the SAG mill except for the feed end. Lower noise levels and reduced mill downtime have resulted in an improved and more efficient workplace (time required for liner changes is 2 to 3%).o A comparative grinding media study using seven different marked media at the same time showed media wear rates range 120 to 198 mg/kWh and ball mill charge replacement frequencies of 8.3 to 13.1 per year, and that a meaningful wear test must include all media to be tested at the same time in the same mill. High quality carbon steel cylinders had the best economics.o Pre-aeration, using pure gaseous oxygen is accomplished in pipe reactors. Small bubble generators provide oxygen in the first three leach tanks. 1500 to 3000 kg of oxygen is consumed per day. Leach kinetics have improved and trends indicate increases in gold recovery of three to seven ounces per day at reduced costs. Effects of reduced cyanidation of accessory metals on the effluent treatment plant will be discussed in a separate paper."

Jan 1, 1991

By Karl J. C. Harries

"1.1. WHAT ARE AGREEMENTS AND HOW ARE THEY FORMED?In order to have an agreement, at common law, there must be an offer, acceptance of that offer, and consideration passing between the parties. In addition, the material terms (i.e. the basics or substance) of the agreement must be discernible, preferably by means of documentation. Although these concepts may appear simple and straightforward, the law relating to them is voluminous and complex. Some brief comments are worthwhile.• Offer/acceptance: Both offer and acceptance should be in writing, but they need not be. The actions, conversations, and/or correspondence of the parties may constitute either or both of them. Notwithstanding, the local law or practice of a jurisdiction will impose some specific requirements for certain types of agreements. If these requirements are not met, the agreement may be unenforceable. For example, Ontario’s Mining Act requires transfers of unpatented mining claims to be evidenced in writing and recorded.1• Consideration: Consideration is usually thought of as being money, but it can be virtually anything, even “the premises” (i.e. the mutual covenants or promises contained in the agreement itself). In addition, if one party, relying upon the offer of another, does something to his detriment, then the doing of the act can be considered to be an acceptance of the offer and, under the legal concept of “detrimental reliance”, can also be consideration. Whether or not detrimental reliance exists will depend upon the circumstances of each case.2• Material terms: The requirement that the material terms of an agreement must be discernible does not mean that all of the terms of an agreement must be documented or even have been considered, just the basic or material ones. In addition, it will be up to a judge to decide what is material – not necessarily the parties. In order to establish the material terms, a Court may look at all relevant documentation and may hear oral evidence. It will resist “writing the agreement”"

Jan 1, 2003

By S. Castro, L. Gutiérrez, L. Uribe

"Use of lime in seawater as a pyrite depressant decreases Mo recovery in flotation of Cu- Mo sulfide ores. When technology that uses sodium metabisulfite (MBS) to depress pyrite is applied, the process is carried out at pH 6.5–7.5, the range where Mo recovery is higher than the usual pH 11.0–12.0 when lime is applied. Redox conditions and chemical reactions involved in depression mechanisms of pyrite by MBS, or sodium sulfite, in seawater are investigated and discussed based on the acidifying effect of MBS, oxidation of sulfite ions by dissolved oxygen, and the role of catalyst of some metal cations (e.g., copper ions) adsorbed on pyrite’s surface.RÉSUMÉ L’utilisation de chaux dans de l’eau de mer comme agent déprimant de la pyrite réduit la récupération de molybdène (Mo) dans la flottation de minerais sulfurés de Cu-Mo. Lorsque l’on applique la technologie utilisant du métabisulfite (MBS) de sodium comme agent déprimant de la pyrite, le procédé se fait à un pH de 6,5 à 7,5, gamme dans laquelle la récupération de Mo est supérieure au procédé habituel utilisant un pH de 11,0 à 12,0 lorsque l’on applique de la chaux. Les conditions de réduction-oxydation (redox) et les réactions chimiques impliquées dans les mécanismes de dépression de la pyrite par le MBS (ou sulfite de sodium) dans de l’eau de mer sont étudiées et débattues sur la base de l’effet acidifiant du MBS, de l’oxydation des ions sulfites par de l’oxygène dissous et du rôle de catalyseur de certains cations métalliques (par exemple les ions de cuivre) adsorbés à la surface de la pyrite. INTRODUCTIONThe copper industry is aware of the difficulties of floating Cu-Mo sulfide ores in seawater. Molybdenum recovery is partially depressed when lime is used to reject pyrite. In plant practice, sodium metabisulfite (MBS) has been demonstrated to be the most promising option for replacing lime in seawater."

Jan 1, 2017

By Selwyn G. Blaylock

I.-THE HISTORY OF THE SYSTEM TO trace the history of the development of the Co-operative Committee System in The Consolidated Mining and Smelting Company of Canada, Limited, one must look backward about twenty years. In 1915 and 1916, the first years of the W ar to really affect Canadian life, there were sixteen hundred men working in the Trail plant. These men were, on the whole, a splendid body of men and pa trio tic to the core. They were almost one hundred percent organized, ninety-five percent of them be-longing to the Union of the Western Federation of Miners. Most of the tradesmen belonged to their craft unions as well. For example, there were ? local machinist, steel workers', electrician, boiler maker, bricklayer, and carpenter unions. The Company had always maintained an open-shop policy and refused to enforce membership in any union, but recognized the right of every man to belong to unions. The only exceptions have been the I.W.W. and the One Big Union. Both of these organizations have always been fought by the Company. By 1916, membership in the Western Federation being practically 100 per cent, the Company recognized this organization's authority to make agreements, and a wage and hour agreement was drawn up and signed by the Company and the local officials of the Union, and ratified and signed by the Head Office of the Union in Denver, Colorado. This agreement was for the duration of the war.

Jan 1, 1936

By S. Nakamura, M. Takaoka, Y. Mizuno, T. Kusakabe

"Mercury is produced as a byproduct from gold mines and, historically, has been transferred to recyclers and used for various industrial processes and products. However, under the Minamata Convention on Mercury, adopted in 2013,the intentional use of mercury in processes or products will be minimized in the world. Surplus elemental mercury should be treated as a hazardous waste and consequently, should be converted to a more stable chemical form for long-term storage or permanent disposal. A stabilization method has been developed to react mercury and sulfur using a planetary ball mill. The planetary ball mill can produce high-energy conditions and enable samples to react within a short period of time. A series of tests has been conducted to confirm that mercury sulfide can be produced using a bench scale machine with 2400 mL pot. Under a suitable experimental condition with 25 mm ball diameter, 30%of ball filling rate and 1.05 of molar ratio of S/Hg, a powdered mercury sulfide product was successfully obtained in 60 minutes. The leach ability and atmospheric emission from the product was extremely low. This stabilization method would contribute to an environmentally sound mercury management strategy for the gold industry.INTRODUCTIONDue to its unique physical and chemical properties, mercury has numerous applications, including in industry and medicine. However, mercury and its compounds are highly toxic. For example, in Japan, methyl mercury in waste water caused Minamata disease in the 1950s, which affected large numbers of people (Minamata Disease Municipal Museum, 2001). In recent years, environmental pollution caused by emissions and releases of mercury into the atmosphere, waterbody and land by various emission sources such as coal fire plants, artisanal and small-scale gold mining (ASGM), non-ferrous metal industries, waste incinerations etc. has also become a significant problem. To protect human health and the environment from anthropogenic emissions and releases of mercury and its compounds, the Minamata Convention on Mercury was adopted in 2013(UNEP, 2013)Because ground gold ore typically contains mercury at 0 to 100 ppm, mercury is often produced as a byproduct from gold mines (UNEP, 2016). In gold mining operations, mercury can be released from the ore by roasting or by leaching in cyanide solutions and recovery onto activated carbon. According to Yanget al. (2016), 85.1%of mercury in a concentrate was vaporized during a roasting process. Both processes finally discharge elemental mercury as a byproduct. In the USA, more than 100 ton of mercury was discharged from large-scale and industrial gold mining (Miller, 2004)."

Jan 1, 2017

The major factors limiting the establishing of vegetation on the shale and sandstone wastes at Minto are high exchange acidity and low pH (shale pH 4-5, sandstone pH < 4). In the first revegetation program (1967-74), 3.8 million trees were planted without grading on 4,000 acres (red, jack and scots pine and black locust). White dutch and sweet clover, birds-foot trefoil and red top were established in selected areas, and ponds were stocked with brook trout. In the second phase of reclamation, beginning in 1979, a comprehensive plan will be initiated which will allow for forest production, wildlife development and recreational activities.

Jan 1, 1977

By Mark Sherman

"One of the main functions of a process technology and engineering services provider is to select grinding equipment that will meet the client’s throughput rate target. Prudent risk mitigation strategies would suggest that throughput rate estimates be cross-checked using a variety of techniques.Whilst some comminution circuit designers have estimated specific energy requirements via the manipulation of the Bond specific power equation e.g. Barratt’s Grindpower and OMC’s FSAG approach, other designers have opined that the Bond Indices have no role to play in the calculation of SAG mill specific power. As a result, they have developed their own specific energy estimating methodologies, e.g. SMCC’s Drop Weight based power methodology, SPI, SAGDesign, etc. Each method has its supporters and its critics.The challenge facing the engineering provider is how to nominate an SAG mill based circuit throughput rate estimate when faced with significantly disparate specific energies calculated by the different methodologies. This challenge is exacerbated via the continuing evolution of contemporary circuit configurations such as two stage pebble crushing some of which incorporate HPGR technology as the second stage of pebble crushing.The methodology presented in this paper shows that the Bond Indices are an excellent tool for estimating the specific energy requirements for SAG mills in SAB, SABC and SSS circuits. The method accommodates primary crushed feeds, partial and or fully secondary crushed SAG mill feeds, and emulates the impact of pebble crushing on SAG specific energy. As a result, the new Bond Index based method has provided an additional tool for increasing Fluor’s confidence when predicting SAG mill based circuit throughput rates. Based on this outcome, the author proposes that the decades old conundrum of using Bond Indices to calculate SAG specific energies for SAG mill based circuits has been solved."

Jan 1, 2012

By S. Deonarain, L. S. Schultz

"This paper details the process and methodology followed to rehabilitate a rectangular ventilation shaft, situated in the Free State region of the Witwatersrand Gold Fields in South Africa. The shaft consists of seven compartments where self-mining of the sidewalls had taken place and damage to the decayed steel work in the shaft had taken place, thus limiting access down the shaft. The paper will provide some insight into the successes and challenges encountered during the project and may provide some learnings for future projects of a similar nature. INTRODUCTION The ventilation shaft forms part of the Phakisa Mine, situated in the Welkom area of the Free State province of South Africa, and is located in the Southern part of the Witwatersrand Basin, one of the world’s largest known and richest gold deposits (Figure 1).As is typical in South African gold mines situated in the Witwatersrand basin, the shaft is 1 770 metres deep (below collar). The shaft was sunk during the early 1940’s and comprised a rectangular shape with 7 compartments, used for both rock hoisting and men and material winding, respectively, with a single lift “Mary-Anne” compartment. Early in 2003, the mine decided to change the shaft from a downcast hoisting shaft to an up-cast ventilation shaft. The conveyances, ropes, winders and headgear (head frame) were removed and replaced with a high volume fan delivering 323m³/s of air at a pressure of 4.2Pa on surface. The up-cast velocity in the shaft was 6.5m/s, however this reduced significantly with the scaling of the shaft and the restrictions at shaft bottom. Although Harmony had converted the shaft from a downcast service shaft to an up-cast ventilation shaft some years back, the shaft steel work in the barrel of the shaft was left intact. Over the years, the steelwork in the shaft had decayed (rust and grime) and portions of this steelwork fell down the shaft. Concurrent with the decaying steel work, portions of the shaft lining had collapsed and it was getting progressively worse."

Jan 1, 2019

By Robert E. McIvor

"The design/optimization of the pump and cyclones to maximize grinding circuit efficiency first requires a concise understanding of, and clearly defined specifications for, desired grinding circuit performance. Subsequently, the pump and cyclone performances that provide the desired grinding circuit performance can be defined. Once the performance requirements of each process unit are determined, selection of physical equipment parameters that will deliver those performances can be carried out.The Functional Performance Equation shows that there are two distinct efficiencies in closed circuit ball milling. One of these, “Circuit Classification System Efficiency” (CSE), is the fraction of “coarse” material inside the ball mill upon which grinding energy is deliberately expended, versus the remaining fraction of “fines” or finished size material inside the mill, upon which grinding energy is wasted (on over-grinding). The role of the pump and cyclones is to maximize CSE, which is the desired grinding circuit performance. The obtainable target CSE for any given circuit can be estimated, for example, by referring to a plant data base of CSE’s. Design/optimization guidelines then allow us to specify the pump and cyclone performances that will achieve the target CSE.This paper outlines the step-by-step, systematic method of pump and cyclone selection which maximizes CSE. Numerous examples of its successful application are provided.THE FUNCTIONAL PERFORMANCE EQUATIONObservation of the feed and product size distributions going into and discharging from the mill in grinding circuits with low versus high circulating load ratios initially led to the definition of “Circuit Classification System Efficiency” (or CSE, McIvor, 1988a), and subsequently the discovery of the Functional Performance Equation (McIvor, 1988b; McIvor et al, 1992). The CSE is the fraction or percentage of “coarse” (usually in reference to the plus P80) size material inside the mill, versus “fines” or product size material finer than the circuit P80. It can be readily calculated by taking the average of the percentage of said coarse material in the mill feed and mill discharge streams. As this also represents the percentage of the mill energy expended on targeted, coarse size material, it is directly proportional to overall grinding circuit efficiency and production rate. This is all clearly expressed in the Functional Performance Equation for ball milling circuits, for which the derivation has often been presented (e.g. McIvor, 2006)."

Jan 1, 2011

By Zhong Zhang, Xijia Wu, Prakash C. Patnaik

"The integrated vehicle health management (IVHM) aims to provide life cycle management decisions for military platforms and their propulsion systems with reduced life cycle cost and increased operational readiness and safety. Among all the issues of IVHM, understanding the physics of failure and predicting lifetimes of the critical components are at the core: the decision makers have to know when and how components may fail in order to plan ahead. The difficulties to tackle failure problems lie in determining the material response to cyclic and dwell loading in a hot and/or corrosive environment, which all combined to induce multiple deformation and damage mechanisms, resulting in mix-mode failures. Decisions on component replacement (material substitution) and mission planning must be based on quantitative knowledge of the failure physics to mitigating the risk. This paper addresses the critical failure issues including creep, low cycle fatigue (LCF), thermomechanical fatigue (TMF); and presents a mechanism-based approach to life prediction. The mechanism-based approach, by its physics, is widely applicable over the entire operational spectrum of both structures and engines, and therefore is suitable for IVHM purposes."

Jan 1, 2015

The 14MW SAG mill at Tarkwa, Ghana, experienced a frozen drop charge incident on 10 February 2010. This caused downtime of 112 hours, a repair cost of $200k and production loss of 162,000 tons, corresponding to a loss of $8.9M. A new locked charge protection system was installed on the two Tarkwa mills on 30 July 2010, mitigating this risk. This system calculates the ore angle in real time while the mill is starting up and trips the mill if the ore angle exceeds a trip angle setting. The calculation of the ore angle is derived from the mill motor rotor currents only - no mechanical transducers are required. The head of Gold Fields West Africa, Peter Turner, says of the new system: "This is excellent work and the type of technology that has had and will continue to have, major opportunity cost impacts on our business."

Jan 1, 2012

By H. Fuchs, W. Hilger, E. Prosser

"The Lone Gull discovery of Urangesellschaft Canada Limited was made in 1974 as a result of extensive exploration activities for unconformity related uranium deposits in the Baker Lake area of the Northwest Territories. The structurally controlled mineralization is hosted in Aphebian metasediments and intrusive granitic stocks located approximately 2 km south of the unconformity between the Lower Proterozoic Aphebian and the Middle Proterozoic The/on Formation.The original discovery was made with a helicopter mounted radiometric system during systematic prospection over the unconformity. Diamond drilling was first carried out in 1977 and continued, with an interruption in 1981, to the present. A total of 25,500 metres and 199 holes have been drilled and outlined three ore zones. Preliminary geological reserves are estimated at some 16 million kgs. U30 8 at an average grade of approximately 0.4%.IntroductionUrangesellschaft initially entered exploration in Canada as a participant in joint ventures in 1968, and was incorporated in Canada in 1974 as Urangesellschaft Canada Limited. Subsequently, UG was among the first companies to apply exploration criteria developed from the Athabasca Basin, namely the Middle Proterozoic unconformity over Archean/ Aphebian basement, for selection of exploration targets in the geologically similar Thelon Basin.The Baker Lake area in the Keewatin District of the Northwest Territories was selected from the extensive Thelon Basin because it had the best accessibility (Fig. 1). The hamlet of Baker Lake located close to the geographical centre of Canada, is largely an Inuit settlement with a population of approximately 1,100 inhabitants. The distance from Baker Lake to the Lone Gull property is about 80 km. Baker Lake is connected to the tidewater of Hudson's Bay via Chesterfield inlet and is serviced by scheduled domestic flights several times weekly from Churchill, Manitoba, about 650 km to the south."

Jan 1, 1986

By Charles Camsell

If it were necessary to preface a discussion of the mineral position of the Empire by justifying one&apos;s interest in that subject, there are two points that at once suggest themselves by way of vindication. Tremendous Growth of MINERAL Consumption The first of these points has to do with the general question of the world&apos;s mineral consumption. Most thinking persons appreciate in a more or less vague way the vital rôle that has been, and is being, played by mineral products in building up the material side of our modern civilization. But, apart from that casual and almost subconscious appreciation, very few have any precise knowledge of the extent to which the growth and the operation of our vast present-day industrial structure has been made possible by, and only by, a tremendous increase in the consumption of mineral products of all kinds. The increasing use of minerals confronts us today at almost every turn. It does not matter in what direction we look-at the expansion and the change in transportation facilities, in the air as well as on land and on sea; at the increasing mechanization, not only in factory and mill but even in our domestic life; or at the constantly widening use of machinery for all phases of farm production-everywhere we meet the same phenomena of rapidly growing uses of equipment produced mainly from minerals. Without resorting to any tiresome statistics, a few figures may suffice to indicate with what enormous strides the world&apos;s mineral consumption has been advancing. The figures for recent years may be open to objection on the plea that, ever since the outbreak of the world war, conditions have hardly been sufficiently normal to give us trustworthy data-we have been living under extremes either of depression or of abnormal stimulation. During the last decade before the war, however, from 1903 to 1913, the world was moving along in a quietly prosperous manner; and we have figures, or at least reasonably reliable estimates, as to the growth in mineral consumption during that decade.

Jan 1, 1932

By Júlio C. Lúcio

Consider the case of a mining company with N investment opportunities in projects of different commodities. The problem is: since the company has limitation of capital, equipments, technical staffs, etc, what is the best portfolio of production projects in order to maximize expectations from shareholders? In the no-longer past, the traditional method for the selection of portfolio of projects was the rank-an-cut method. But, this does not properly account for the risk to which the company is exposed. The Markowitz?s Mean-Variance is an advance because the risk of the NPV can be estimated at the level of the company or even division of the corporation. The final product of the Markowitz?s model is the efficient frontier, in which, the manager can clearly understand the maximum return from existing assets and the associated risk level - but this model does not recommend which one is the best portfolio. In this paper we present a model to select the best portfolio considering not only economic indicators, but also requirements of production, constraint in investments, etc. We show that if investors are diversified, managers should select projects with highest return, regardless of risk. However, in practice, if bonuses of managers are tied to their performance, the choice for portfolio with lower return and risk can happen. Numerical application considering typical portfolio of large mining company is used as example.

May 1, 2009