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By Angus W. Davis

The case of the P. G. E. railway is a peculiar one. Traversing, as it does, to a large extent, a mineralized country there are as yet no producing mines along its route although I am convinced that mines will be developed in the region tributary to the railway. The Fitzimmons group of claims, a copper property near Mons station, 37 miles from Squamish is now (unless recently relinquished) under bond to the Granby Company. On Cadwallader creek, in the upper Bridge river country, certain gold properties, referred to later, are being developed. Prospectors are fairly active in the Pemberton meadows area. There are also a large number in the Bridge river, Gun creek, and Whitewater districts. East of Marguerite station some development work is being prosecuted on some copper claims located there. In addition here and there throughout the entire route of the railway prospecting is being undertaken. At Hat creek, 15 miles from Pavilion station there is an enormous deposit of lignite. It is by no means certain that this coal can be profitably mined and hauled to the railway, but as a cheap fuel it offers possibilities in the recovery of by-products by destructive distillation. Logical procedure would ? indicate the expenditure of considerable money on development and, if results justify, the construction of a spur from the main line to the deposit.

Jan 1, 1925

On the 26th of June 2000 a hydraulic fill retaining barricade failed at the Bronzewing mine in Western Australia. The barricade failure resulted in the release of 19,000 m3 of saturated hydraulic fill into the mine and caused the deaths of three miners. Following this tragic accident, the practices and procedures of mines using hydraulic fills came under intense scrutiny by regulatory bodies and mining companies. At this time, the use of hydraulic fill at Normandy?s zinc/copper Scuddles mine was suspended and waste rock became the sole backfill material in use underground. By 2003, development of the adjacent Gossan Hill mine had progressed to a point where a self supporting fill material was required to enable full recovery of high grade ore. Cemented hydraulic fill (CHF) was identified as the optimal fill type and work began on designing appropriate management procedures and controls to ensure the safe implementation. This work included definition of the fill properties, plant design and construction, reticulation system design, design of stope barricades and drainage systems and fill placement control and monitoring practices. CHF placement began on 16th July 2004 and has continued to date. Significant operational experience has since been gained in areas including plant performance, fill product quality assurance, barricade construction, stope drainage and in-situ performance.

May 1, 2007

By W. Kempson

"Mining Companies have producing assets in increasingly diverse portions of the world. It is not uncommon that the owner, the design team, the mine contractors and the operators are all based in different countries. While these assets are always subject to the regulatory requirement of those countries there have not been international standards available to review and evaluate these assets. This becomes particularly important when considering safety critical items such as tailings dams, vertical shaft systems and autonomous vehicles to highlight a few. The work currently being completed in ISO ensures these standards will be available and will be generated by and subscribed to on an international basis, thus removing the potential for patriotic partisanship and ensuring safe and predictable systems are installed. This paper will discuss the benefits of the international standards, the structure of the teams and working groups who are generating these standards as well as the process by which the standards are generated. This will allow insight into the creation of the standard and will aim to demonstrate the “neutral” and technically strong manner in which the generation of these standards is achieved. In addition, the paper will discuss the standards which have been produced in the last five years as well as the current standards which are in place. The finale will discuss upcoming work and the timelines in which it is anticipated these will be completed. INTRODUCTION Mining Companies have producing assets in increasingly diverse portions of the world. While these assets are always subject to the regulatory requirement of those countries, there have not been international standards available to review and evaluate these assets. This becomes particularly important when considering safety critical areas such as vertical shaft systems, tailings dams and autonomous vehicles to highlight a couple. The work currently being completed in the International Organization for Standardization (ISO) ensure these standards will be available and will be generated by and subscribed to on an international basis, thus removing the potential for patriotic partisanship and ensuring safe and predictable systems are installed. The ISO/TC 82 – Mining was founded in 1955. This was an active committee until it was thought that the standards at the time were adequate and the Technical Committee was put on “Care and Maintenance”. In 2012 countries lobbied ISO to pull this committee from dormancy and restart it, this happened in in the same year."

Jan 1, 2019

By W. D. Sinclair, R. J. Cathro, E. M. Jensen

"The Cash is one of the largest porphyry copper-molybdenum Deposits found in Yukon to date. It is 80 km northwest of Carmacks, within the unglaciated portion of the Dawson Range, and is associated with the Big Creek fault, an important tectonic feature. Part of the mineralized zone is blanketed by up to 70 m of alluvial drift . The remainder is covered by a relatively thin residual soil layer. The mineralized zone, however, was not detected by conventional stream-sediment sampling because pathfinder elements, such as Cu and Mo, have not been geochemically dispersed into the main drainage system. The deposit was discovered by a combination of soil analysis and inspection of rock fragments from small pits.Twenty widely spaced, shallow drill holes have outlined an areaover 2700 m long and 550 to over 1000m wide that grades more than 0.1% copper equivalent (% CuE = % Cu + (5 x % MoS2)). Two smaller zones grading over 0.4% copper equivalent occur within the larger area. The limits of the widest end of the deposit have not been delineated.The Cash deposit is fairly typical of high-level, calc-alkaline porphyry copper-molydenum occurrrences in the Canadian Cordillera {cf, CIM Special Volume 15) and is representative of most prospects in the Dawson Range. It is associated genetically with a subvolcanic complex of small, irregular stocks and dykes of feldspar porphyry and related breccias of Late Cretaceous age. Copper and molybdenum sulphides occur along fractures, in quartz veinlets and disseminated in feldspar porphyry and in older metasedimentary and intrusive rocks. Higher-grade zones of copper and molybdenum have associated potassic alteration. Phyllic alteration is, in part, superimposed on potassic alteration. Argillic alteration occurs locally.This paper describes the history of the discovery and the geochemical and geophysical characteristics, together .with the regional geology, and the nature and distribution of the host rocks, hypogene mineralization and hydrothermal alteration."

Jan 1, 1981

By Neil H. Brown

Outline ? Cameco - Cigar Lake ? Cigar Lake Mine Development ? MDS #1 ? MDS #1 Improvements ? MDS #2 ? MDS #2 Improvements Pending ? Acknowledgements Mine Development System ? Mining methods tested and developed over the years ? Construction began officially in 2005 ? Water inflow events in 2006 and 2008 ? Successful dewatering and re-entry in 2010 ? Remediation continues ? Production target is mid-2013

Oct 1, 2010

By Georges Houlachi, Akram Alfantazi, Michael Mahon, Maysam Mohammadi

Corrosion resistance of the lead-based anodes directly influences the purity of the final product in the zinc electrowinning process. The anodic MnO2 layer that is electrodeposited on the anodes during this process can protect the anodes against corrosion. Sand-blasted anodes generate a uniform, adherent and shiny MnO2 layer, which gradually blisters and eventually sloughs off after several weeks. In this study, we attempted to develop a new method to stabilize the MnO2 protective layer on the anodes during the electrowinning process by providing suitable nucleation sites for electrodeposition of this layer. MnO2 particles (P80=40µm) were used as seed material for this purpose. Different techniques of galvanostatic and cyclic voltammetry polarizations, scanning electron microscopy (SEM) and atomic absorption spectroscopy (AAS) were employed to investigate the performances of the MnO2-seeded lead anodes. The experimental results showed that growth of the MnO2 layer is influenced by the MnO2 seed particles on the anode surface. The MnO2 layers electrodeposited on the MnO2-seeded lead anodes were uniform and strongly adherent to the substrate. This layer was more stable than those formed on the PbAg anode without MnO2 seeding. This could provide the anode with a higher level of corrosion protection. Moreover, formation of undesirable MnO2 mud in the electrolyte and the rate of manganese consumption were decreased when the MnO2-seeded lead anodes were polarized. These observations could be attributed to the different properties of the electrodeposited MnO2 layer on this anode in comparison with that formed on the PbAg anode.

Jan 1, 2016

By Emilio Giuseppe Sarno Severi

Mining and Petroleum Similar Industries ?Asset Intensive ?Exposed to market volatility ?Highly Risky Operations ?Scarcity of Experienced and Trained resources ?Operating in diverse countries with different cultures ?Increasing Environmental and Safety Regulations

Nov 1, 2011

By P. J. Le Roux

"Mining worldwide and definitely in South Africa, is constantly under pressure to reduce its cost structure so as to sustain profitability. In underground gold mines where an open stope mining method is employed, dilution often has a significant effect on the viability of sustaining profits. Target Mine practices Open Stope mining Method and it was found that in some open stopes dilution was in excess of 10%, which has a significant impact on the sustainability of the mine.Dilution in excess of 10% can result in the reduction of the recovered grade from 5,5 to 4,5 grams per ton (g/t). The reduction of 1 g/t in recovered grade results in a potential loss of about ZAR21 Million per month bases on a gold price of ZAR240 000 per kilogram. Based on Life of Mine projections the potential loss of income could be as much as ZAR3,3 Billion. A reduction in dilution would have the opposite effect. There are a number of factors which affect dilution of which falls of ground in open stopes is a major contributor. The falls of ground can be attributed to a number of factors such as beam failure as a result of a larger than normal expected roof area (hydraulic radius too large), poor ground conditions, and poor blasting. The cost of damage to or loss of trackless equipment as a direct result of the falls of ground in open stopes, is very significant. The review of financial figures has indicated that this could be as high as ZAR491 million. This combined with the added cost of transport, hoisting, secondary blasting, milling and plant treatment costs of ZAR293 results in an estimated opportunity loss of ZAR784 million.Currently there is a significant amount of data available in the mining industry which could be effectively used to develop suitable back analysis techniques but to date this has not been used effectively. If dilution can have such an impact on current and future mining ventures then the optimization of back analyses for the prediction of dilution in open stoping could assist significantly in the reduction of dilution in massive open stopes. Rockmass classifications, geotechnical information, blast techniques, blast design, the stress strain environment and hydraulic radius all have an effect on, or play a role in the evaluation of dilution. Each of these factors will be taken into consideration to ultimately determine a measurable or calculated percentage of dilution in massive open stopes.The amount of overbreak in an open stope can be determined by subtracting the planned stope volume in m3 from the actual measured final stope volume in m3, which is obtained from the CMS (cavity monitoring system). This is in turn divided by the planned stope volume in m3 to determine the percentage overbreak. The CMS wireframe is imported into the geological model and its grade re-evaluated. From this the actual percentage dilution for this open stope can be determined. The dilution obtained can result in a major reduction of recovered grade for the open stope, but can also increase the recovered grade. The latter is normally the exception rather than the rule.When analysing data from Target mine the following was achieved:• Using 11 years of data a method of measuring and predicting the percentage dilution in open stoping was developed. This took into account rock mass quality, stress-strain state, and the hangingwall hydraulic radius (size of stope hangingwall exposed).• Implementation of this prediction method resulted in a reduction in falls of ground in open stopes. The benefit of this was a reduction in the damage to mechanised equipment resulting from less falls of ground which had a positive effect on the profit margins of the mine. As a direct result the recovered grade from the open stopes increased due to the reduction in the amount of dilution.• A design criterion, Dilution Stress-Strain Index (DSSI), was developed which allows the user to calculate, with certainty, the stability of the open stope and determine if m"

Jan 1, 2015

By H. G. Wang

The production process of a coal mine can often be interrupted by all kinds of events scheduled or unscheduled and thus often needs gas drainage for a temporary or long-term sealed area. Gas drainage has a relatively high risk, therefore attention must be paid to its design to keep the process safe. Based on the conservation laws of mass and constituents, and under the conditions of the allowable gas concentration limit in the return air route, the relationship between gas concentration and gas drainage flow rate as a function of time during the drainage process is discussed in detail to build a mathematical model of gas drainage from a sealed area. With respect to the gas drainage process, two different conditions need to be considered: one with a methane free fresh air supply, the other with a low gas concentration. This paper presents the derived mathematical models for these situations and then shows that they can be incorporated into one model with some modification. This combined model can be employed to determine the optimum gas drainage flow rate with the shortest drainage time. The application is coded using the C# programming language within the .NET framework. Finally, the application program developed by the author is used to validate the mathematical model through an example of gas drainage with varying rate.

Aug 1, 2013

By D. M. Xue, T. B. Li

"With the increase of human engineering activities, global climate change and active plate tectonics movement, the giant landslide frequently occurred in southwest China, which caused huge property and human losses. Besides, the potential landslides pose severely threaten to the construction and operation of airports, railways, highways and power stations etc. In order to provide accurate guidance for the landslide investigation, stability analysis and mitigation, the giant landslide is redefined according to landslide volume, depth of slip surface, complexity of landslide mechanisms, and degree of landslide mitigation difficulty, and classified with the typological classification approach based on the twofold attributes of landslide behavior including formation mechanisms and reactivation features. Finally, the threefold particularity of the giant landslide is also summarized, which enables a more effective landslide mitigation design.INTRODUCTIONWith the increase of anthropogenic activities, global climate change and active plate tectonics movement such as continual uplifting of Qinghai-Tibet plateau and strong earthquakes, the occurrence of giant landslides was in ascending trend in southwest China (Huang, 2009), which caused serious destruction, and greatly endangers such engineering construction from safety, time and economic aspects as airports, railways, highways, power stations, etc. Giant landslides have huge scale, complex formation/reactivation mechanisms and mechanical behavior. They may not be identified during the hazard investigation, but may be firstly initiated or reactivated due to the following engineering activities, heavy rainfall or strong earthquakes. Consequently, the landslide mitigation is inevitable and costly. However, it is difficult to control the deformation of giant landslide with lack of a correct understanding of genetic mechanisms (Marui, 2012; Zhang, 2000) and the excessive large sliding forces of the slide blocks calculated by the conventional limit equilibrium method. For instance, the failure of anchored pile wall for the No.102 giant ancient landslide (Zhu et al., 2012) and stabilization measures for the Sidi Rached viaduct landslide(Guemache et al., 2011); four rows of piles had not prevented the occurrence of the No.12 landslide in a high fill slope in the Panzhihua airport (Li et al., 2012)."

Jan 1, 2015

"The Upper Mannville unit commonly consists of interbedded marine and non-marine sands and shales, but in northwestern Alberta the unit consists of marine shales of the Spirit River Formation. A thick tongue of marine shale (Clearwater Formation) ex-tends eastward into the Athabasca area below sandy Grand Rapids beds. Correlation of Upper Mannville rocks to the southeast is difficult, but in the Cold Lake area a thick sandy depositional cycle (Mannville ""C"" of this paper) appears to be approximately correlative with the Clearwater Formation. In the Lloyd-minster region, tongues of marine sedimentary rock occur in the lower part of the Upper Mannville unit. Most of the Upper Mannville oil occurs in the Grand Rapids Formation at Wabasca, in the thick ""C"" unit and younger Mannville sands at Cold Lake, and in the Sparky and General Petroleums sands of the Lloydminster region (Figure 2).The Lower Mannville unit was deposited on an erosional surface of considerable relief that truncated the Jurassic and older strata of the Western Canada basin. Continental, probably fluviatile, sedimentation persisted over much of the Western Canada basin during deposition of the Lower Mannville unit, but an Arctic or Boreal sea lay over part of northern Alberta. At the end of the depositional episode, the sea transgressed southward and eastward (Figure 3) and re-worked the Bullhead and McMurray sands of northern Alberta into the glauconitic Bluesky and Wabiskaw sands. Topography on the sub-Cretaceous erosion-al surface had a considerable effect on the deposition of the Lower Mannville (Rudkin, 1965), and the highest hills on this surface were not completely on-lapped by Lower Mannville sediments (Figure 3). The coarser elastic material was derived both from a western Cordilleran region and from an eastern Canadian Shield region (Glaister, 1959, p. 620; Mellon, 1956)."

Jan 1, 1966

By G. Capobianco

"The coal industry is an important part of Canada's economy - as an energy source, employer, and generator of export earnings. Coal comprises 71% of our fossil energy and with rapidly advancing handling and burning technology will clearly play a major role in our national energy mix, eventually as synthetic gases and liquids.International coal markets are very competitive and Canada is disadvantaged by long rail hauls to port, and a heavy tax burden. However, high mine productivity has allowed us to increase our markets.Currently, domestic markets are dominated by coal use for electrical generation, a market with significant growth opportunities.Strong growth is expected in export thermal markets, while metallurgical coal demand is projected to show little or no growth in the medium term. IntroductionThe coal industry is a vital part of the Canadian energy scene .• Coal supplies 17% of Canada's energy.• On a per capita basis, Albertans use more energy in the form of coal than they do oil and gas.• The value of Canada's exports of coal last year was equal in value to all the cars we imported from Japan.• Coal is our largest single export to our seco nd largest trading partner, Japan.• The value of coal produced in Canada exceeds the value of any other single mineral produced in thi s country.• In Alberta, the safety record for coal mines is on a par with that of department store clerks.• The coal industry employs about 25% of the total number of people employed in all metal mines in Canada, directly and indirectly accounting for about 50 000 jobs.Coal comprises 71% of Canada' s hydrocarbon energy resources on a crude oil equivalent basis . This is more than double our oil sands resource and dwarfs our conventional crude oil and gas resources (Fig. I). In the short term, coal as a solid fuel plays a significant part in the Canadian energy scene. In the longer term, coal, in the form of electricity and eventually liquids and gases, has a tremendous role to play. In 1986, Canada produced 57.8 million tonnes, slightly down from the record high of 60.8 million tonnes in 1985. Our exports in 1986 were 26.0 million tonnes, a growth of 53% in three years."

Jan 1, 1988

By P. Scinto, P. Hudson

"Modern day ore bodies are becoming increasingly harder, more abrasive and lower grade. The Mako deposit is located in Senegal and consists predominantly of primary mafic and felsic lithology that are both very competent and very abrasive ores (Axb < 30, BWi >20 and Ai >1.0). The deposit was initially discovery in 2010 and the Toro Gold management team fast tracked the Mako Project through development and into production to achieve its first gold pour in January 2018. The comminution circuit comprises primary crushing single stage SAG milling with recycle crusher (1oCR SS-SAC). The mill reached design throughput and grind size seven weeks after first ore. The Mako project marks another successful international application of single stage milling, which represents a simple and easy to operate comminution circuit for small-to-mid size projects with a low capital cost. This paper describes the ore interpretation, comminution modelling, grinding circuit selection and design, as well as an overview of the commissioning and ramp-up of the mill.INTRODUCTION The Mako Gold Project is operated by Toro Gold Ltd., which holds a 90% interest in the project. The project is located in south-eastern Senegal in the Kedougou region, close to the Gambia river and township of Mako. The Mako deposit lies in the “Kenieba Window” of eastern Senegal and western Mali, which hosts a number of gold mining operations and development projects. The Mako Gold Project has an estimated life of 8 years with overall recoverable gold estimated at 924 koz. The process plant is designed to treat 1.8Mt/a of ore and produce 128 – 143 koz of gold per annum. Lycopodium Minerals Pty Ltd (Lycopodium) was appointed to provide feasibility studies and EPCM services for the greenfield project. Forming part of consultancy services provided by Lycopodium, Orway Mineral Consultants (OMC), a subsidiary of Lycopodium, was involved in the design, commissioning, ramp up and ongoing post commissioning support of the comminution circuit."

Jan 1, 2019

By P. C. Benedict

Introduction and Summary The Northern Empire mine is a mile east of Beardmore, and 100 miles northeast of Port Arthur, district of Thunder Bay, Ontario. Production started in March, 1934, and terminated in September, 1941. During this period, the mill treated 425,866 tons of ore, from which 153,103 ounces of gold were recovered. The lowest level from which ore was mined was the 1900, but considerable drifting was performed on the 2075 level and 800 feet on the 2415, the deepest level. The following description of the geology of the mine is recorded by the senior author but is based on the observations and complementary mapping of both authors. The vein strikes about N.72°E. and has an average dip of 80°S. (Figure 1). In stoped sections, the quartz averaged about two feet wide. On the 1725 level it was drifted on continuously for more than 7,000 feet, but in the mine as a whole practically no commercial ore was found beyond points 1,400 feet west and 1,800 feet east of the shaft. Conspicuous wall-rock alteration extended throughout this section but not much beyond its limits. There was some splitting of the vein and widening of the alteration halo on the lower levels. The average general colour of the quartz changes with depth. It may be generalized, from top to bottom, as light grey to dark grey to brownish. The brownish quartz first appeared near the bottom of the ore.

Jan 1, 1947

By Paul Graham

Presentation Focus ? What is LTUG / What do we do? ? History of LTUG ? Examples of Benefits from LTUG Participation ? Encourage Participation What is LTUG? ? An informal gathering of surface mining companies to discuss and work issues of common interest and to share information and best practices around large tires.

May 1, 2008

By K. Soucek, J. Ptácek, A. Hastíková, R. Kukutsch, P. Konícek, P. Waclawik

"Cable bolts are used frequently as a secondary support system (with steel arch support) in difficult stress-strain conditions of deep coal mines. The load transfer mechanism of cable bolts depends on several factors, such as the strength, deformation and geometric properties of the bolts, resin and the surrounding rock mass so-called cable-resin-rock system (CRR system). The bonding length and bolt/borehole diameter ratio strongly influence the final bearing capacity of the CRR system.The study presents the behaviour of CRR system during a pull-out test which is usually used in the carboniferous rock mass in the Czech part of the Upper Silesian Coal Basin. A series of 28 pull out tests were performed on 3-m-long cable bolts, with various combinations of borehole diameters and bonding lengths, to understand this behaviour. Boreholes were drilled into a solid rock mass consisting of fine-grained sandstone to guarantee similar conditions during the pull-out tests. Video inspection and measurement of borehole diameters were performed to determine their quality and real diameters. Three characteristics were observed from pull-out test results: ultimate pull-out load; displacement of the end of bolt and system stiffness. Numerical modelling by FEM (Finite Element Method) was used to determine the stiffness of the CRR system for variable bolt/borehole ratios and bonding lengths each under constant load. A linear elasto-plastic model and a mohr-coulomb model were used for cable and resin-rock respectively. The results of the experiment may contribute significantly to improving of the methodology of cable bolts installation as well as the design of used cable bolts."

Jan 1, 2015

By Y. Bai, J. J. Liu, D. Q. Li, S. Z. Liu, X. T. Wang

"This paper presents the results of an industrial test using 8 t/d of Baotou concentrate (50% REO) of a clean metallurgical process, which includes: 1. Roasting with H2SO4 at low temperature (220~260 0C) in a batch roasting furnace followed by water leaching to obtain a leach liquor as feed with a yield of >95% RE and Th, recovering F as fluoride, producing a leach residue amounting to 1/3 of an equivalent high temperature residue and containing <0.03% Th and radioactivity < 3×104 Bq/kg compared to the normal high temperature residue containing 0.2-0.3% Th and 1×105 Bq/kg. 2. Separating Th with N1923 and extracting RE by P507 has been completed in mixer-settlers. Test results indicate that the ThO2 product has a purity of > 95% with a yield of 99%, and the RE has a yield of >95%, in which ThO2/REO <5×10-6, and that P507 loaded RE connect straight with separating RE using P507-HCl system. 3. Treatment and multipurpose use of "three wastes" (water, gas and solids) are discussed in some detail."

Jan 1, 2014

By D. Wolfe, R. Cleminson

"The Aurora North mine has been operating for more than ten years, and is the source of over half of Syncrude’s bitumen production. The hydrotransport systems at Aurora experience high rates of wear, and mission lengths on current slurry pumps are nominally 1,500-2,000 hours. Recent work has enabled a better understanding of the significant adverse effect of large particle impingement damage to impeller vane leading edges - which is the known life determining issue for Aurora hydrotransport pumps. A new pump design has been developed and installed at Aurora, incorporating significantly increased impeller diameter and pumping vane lengths. The new pumps are expected to triple Aurora’s previous mission length for hydrotransport pumps. Part II of this paper will share actual hydraulic and wear performance observed in the first several months of operation, and draw comparisons relative to what was expected for these pumps in design / development.INTRODUCTION Slurry Pumps are Critical Equipment at Syncrude Slurry pumps are a key component in Syncrude’s operations. In a typical Aurora application, each 5000 HP pump stage helps move over 8,000 dry tonnes per hour of oil sand, plus an equal volume of process water that has been added to create the slurry. The average impeller life in oil sand hydrotransport service at Aurora has been nominally 1,500 to 2,000 hours, or 12 to 16 million tonnes of oil sand pumped. Generally, the slurry pump application at Aurora has proven very difficult to improve due to the unique combination of high sand abrasivity, 125 mm (5”) large particle top size (lumps), and high flow rate relative to basic pump size; a factor that results in unduly high impeller vane leading edge speeds for the service conditions."

Jan 1, 2014

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 Dina Aloi

The need to be seen as responsible neighbours and good corporate citizens is a critical success criteria for mining companies. To be seen as responsible requires both achieving responsible performance, and making that good performance visible to the community, legislators, investors, and other stakeholders. This has broadened the skills required for the successful operation of a mining company to include social sciences, public affairs, communications, and environmental sciences. Mining companies still look to technical specialists to achieve the core of that good performance - broadly characterized as a sustainable operation. However, the degree of understanding that those specialists have of the requirements for sustainability and overall Corporate Social Responsibility has a tremendous impact on the overall performance of the project and company. In her keynote address to the Sustainability for Profit session, Dina will outline some of the key areas in which technical employees and consultants can contribute to achieving successful sustainable mining operations.

Jan 1, 2010