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By Mike McKevitt

We are trying to promote a concept and a change in management?s approach to the iterative process of grade control. This is important as grade control must routinely try and achieve the long term objectives set by the mine plan ??BackgroundBackground ??Factors contributing to variation from planFactors plan ??Basis of OptimisationBasis Optimisation ??Ore Block Optimisation processOre process ??Operating mine examplesOperating examples ??Chain of Mining. ??Intention is to highlight the need for repeatable and consistent materialand material-type classification to remain consistent with the Life of Mine Plan ??We can drill another hole or reWe re-optimise a plan, but once excavated, the final decision has been made ??The grade control decision is the last decision made in the resource exploitation sequence.

May 1, 2009

By G. M. Behrend

"AbstractMeasurement and control systems in minerals processing plants are usually well thought out and designed. The criteria and design parameters have been interpreted correctly.However, these systems often fail to perform satisfactorily or break down altogether as a result of in-plant conditions which are unpredictable and over which the instrument systems designer has no direct control. The foresight necessary to anticipate the problems and allow for them in the systems design can only be generated by experience.This paper lists the most common of these problems and offers practical methods for their solution. It then follows with an analysis of instrument installation practices and comments on special points that need watching.Finally, instrument maintenance is discussed with a view to achieving good maintenance at the best possible economy.Good MeasurementGeneralTHE MINES and mineral processing plants of the nineteen seventies, after decades of sensible caution, have now committed themselves to extensive automatic control. X-ray analyzers are freely specified. Sample acquisition systems are efficient and automated, computers are reliable and relatively cheap, and computer control systems in conjunction with the new analyzers are operating in a good many plants and are proving to be profitable.The sight of shift foremen and floor operators assembled in front of a TV-tube and taking a computer data display as gospel truth is quite common now, and yet was quite unthinkable only ten years ago."

Jan 1, 1977

By V. I. Birss

Planar solid oxide fuel cells (SOFCs) offer great promise as stationary power generation devices, primarily due to their flexibility in terms of fuels, high energy conversion efficiency (when both electricity and heat are captured), and their relatively low fabrication costs. However, the anode performance can be compromised by such factors as exposure to certain sulfur-containing fuels and the deposition of coke when using hydrocarbon fuels. In terms of the cathode, its performance is limited primarily by the slow kinetics of the oxygen reduction reaction, while its lifetime can be negatively affected by factors related to the corrosion of currently used stainless steel interconnect materials. This talk will present an overview of these challenges and some possible solutions to these problems. The presentation will also focus on how electrochemical methods can be used to evaluate and improve the performance of SOFC anodes, cathodes, and interconnect materials. In addition, recent promising research efforts directed towards performance enhancement of SOFCs through the use of nanoscale electrocatalysts will be discussed.

Jan 1, 2005

By P. A. Tichauer

Arbitration is a flexible method for dispute resolution that gives control to the disputing parties while still maintaining a clear and well-structured decision making process. It responds to the desires of the parties for a resolution that is fair, binding and enforceable and is guided more by pragmatism, efficiency, effectiveness and equality than by a need to comply with the legal procedures and practices of any single country or jurisdiction. Arbitration is particularly well suited for the resolution of disputes pertaining to international commercial agreements which are often present in the metallurgical sector. This paper provides a simplified outline of the features and advantages of arbitration as well as commentary regarding certain prerequisites in order for arbitration to be binding and enforceable.

Jan 1, 2015

By W. Hunka

PACIFIC PETROLEUMS, Ltd. first discovered commercial quantities of gas in the Peace River area in 1952. Development of gas wells in this area is quite ex-pensive due to low penetration rates. To improve the economics, the potential of the wells in many cases had to be increased. At that time, well stimulation was still in its infancy in Canada and in this area, in particular, no treatment of any consequence had been attempted. Therefore, trial-and-error was the only means available to determine the stimulating technique that would give optimum results. Various fluid treatments were available and these were used wherever the application was warrant-ed. This paper covers acid fracture and explosive treatments as carried out on various gas-bearing horizons.

Jan 1, 1958

By J. E. Shigley

The gemological properties that allow natural emeralds and blue sapphires to be distinguished from other gemstones are summarized in this paper. A variety of synthetic and laboratory-treated emeralds and blue sapphires are also encountered in the jewelry industry today. Gemologists distinguish these latter materials from their natural counterparts based primarily upon features seen with magnification, such as inclusions and/or growth zoning. In some cases, however, these observations and standard gem-testing methods are insufficient, and the use of non-destructive analytical methods, such as optical spectroscopy and chemical analysis, are required for positive identification. The commercial value of synthetic and treated gems are much less, and can be insignificant in comparison to that of an important untreated natural gemstone. Identification of synthetic and treated gem material is essential to maintaining integrity in the jewelry industry. Loss of consumer confidence in the gemstones sold at the jewelry counter could have a negative impact on the exploration and mining of natural emerald and blue sapphire.

Jan 1, 1998

By E. W. Thorton

"This paper is intended to show that grinding media can effect flotation results, and in some instances the results are vastly different. I do not suggest that autogenous grinding is beneficial in the separation of all complex base metal ores, in fact I know of a case where autogenous grinding would be disastrous to any selective flotation. I do however contend that prospective flow sheets and reagent balances of any complex base metal ores should be tried with both types of grinding. I feel fortunate that the paper to be presented later in this meeting by Rene Klymouski will, I think, compliment and perhaps explain some of the results of my research.This paper will be in four parts. The first part deals with a literature survey on the subject. Surprisingly enough, very little information has been printed on the subject. The second part deals with results obtained in bench scale tests on an ore from Chester Mines Limited. It was in these tests that we realized that steel grinding was giving us serious problems. So bench scale tests are shown giving results with a stainless steel grind, a mild steel grind and a grind in a ceramic mill with ceramic billets.The third part of the paper deals with results obtained in the Mines Branch Pilot Plant, when again we ground the ore with three different types of grinding media. Incidentally, this has been the only pilot plant test made at the Mines Branch in which flotation products were made on both steel grinding and autogenous grinding on the same ore. The fourth part deals with two other New Brunswick ores and is intended to show that changing the grinding media effects ores other than that of Chester Mines Limited."

Jan 1, 1973

By G. C. Milligan

"A regional mapping program, conducted by the Nova Scotia Department of Mines, has shown that the George River Group of pre-Middle Cambrian rocks consists of a wide range of sedimentary and volcanic rocks, intruded by syenite, granite, granodiorite and lesser amounts of gabbro and diorite. Together, these rocks support the high ground of northern Cape Breton Island. Over this large area, the metamorphic grade ranges from low to extremely high.The rocks were folded prior to emplacement of the intrusions in Middle Cambrian time, and there was also post-Mississippian disturbance and faulting, but the structural history and pattern are still only imperfectly understood.Sulphide mineralization is known at Meat Cove, Lime Hill and in a number of smaller deposits. The most Cavour-able host rocks appear to be magnesian Iimestone, or schists derived from shales. Ail known sulphide bodies have an associated halo of retrograde metamorphism; in some cases, this is extensive enough to be used as a prospecting aidA vein of nickel-bearing sulphides has recently been re-discovered in the former gold mine at Second Gold Brook-an association which appears to be unique."

Jan 1, 1971

By André Laplante, Robert C. Dunne

"The role of flash flotation in precious metal recovery is reviewed. Interacting flash flotation and gravity recovery is discussed. The GRG test can be used, when linked to the behaviour of gold in grinding and classification units, to predict the recovery of GRG by flash flotation. The Cadia mill in New South Wales is used as a case study of circuit design, performance and simulation. It is shown that high throughput coarse grind applications such as Cadia require very effective fine GRG recovery systems in the primary grinding loop, which are more consistent with flash flotation than batch centrifuge concentrators (BCCs). BCCs can effectively recover a significant fraction of the GRG from flash concentrates, as predicted by laboratory testing and confirmed at a growing number of mill sites.INTRODUCTIONThe GRG test was designed to characterize Gravity Recoverable Gold (GRG) ten years ago (Woodcock and Laplante, 1993; Laplante et al, 2000), in response to the need to predict how much gold could be recovered from the main circulating load of grinding circuits using centrifuge concentration. The amount of GRG is not itself a prediction of gravity recovery: the performance of a gravity circuit nested in a circulating load also depends on the type and size of unit used, how much of the circulating load is treated, and how many times GRG is recycled and presented to the recovery circuit. The GRG test was first used in a simulator to predict gravity recovery (Laplante et al, 1995), and indeed most of the early tests targeted ores or prospective ores for which gravity recovery was an obvious match. As the test became more accepted, more and more samples returned a verdict that precluded the use of gravity recovery, or made it marginal. Typically, such ores are either copper-gold or base metal ores in which the GRG content is often fine (largely below 105 um) and ranges from 8 to 33%. Extensive simulation and plant sampling tests, either published (Laplante et al, 1997) or proprietary, show that full scale gravity recovery for these applications is generally below lo%, and can be as low as 2%. Not in all cases are such low recoveries economically unjustifiable, since there is documented evidence (Darnton et al, 1992) that a significant proportion of the gold recovered, at least in the case of base metal ores, would not have reported to the copper or zinc concentrate and received NSR credits."

Jan 1, 2002

By G. Lee, E. T. C. Spooner

"Molybdenum mineralization at Boss Mountain is hosted by the Triassic Takomkane quartz monzodiorite batholith and is associated with a Cretaceous monzogranite stock. Ore has been mined from a sheeted vein system that describes a partial annulus centred upon the apical region of the stock and from subvertical breccia pipes that emanate from the stock. Molybdenite precipitation is coincident with CO2 effervescence from a dilute (1.9 mole o/o NaC/ equivalent) hydrothermal fluid over a temperature range of 250°C to 370°C at a pressure of approximately 350 bars, interpreted to be greater than or equal to the lithostatic load and equivalent to a depth of 1.3 km or less.IntroductionThe chemical and thermal constraints on molybdenum transport and deposition to form molybdenum ore deposits are not well understood. To address this problem, the Boss Mountain mine in central British Columbia, operated by Noranda Mines Ltd., was chosen as a well-described (Soregaroli and Nelson, 1976), relatively small and simple example of a Cordilleran Mo~ deposit. It is situated on the northeast slope of Takornkane Mountain, 10 km west of the community of Hendrix Lake (N.T.S. 93A/2W; latitude 52°06'N, longtitude 120°56'W). Access is from 100 Mile House by nearly 90 km of road, the first 50 km of which are paved."

Jan 1, 1995

By A. J. Neale, B. C. Flintoff

"In most mineral processing operations the term audit is usually reserved for the exercise of checking financial records and/ or safety practices. While these activities are time consuming, no one disputes their necessity or value. If we subject these areas to such careful scrutiny, why is it that we don't normally apply the same principles to critically examine process operation. After all, the operating efficiency of the plant impacts directly on the measures of profitability.A mineral processing plant is a complex system that has a number of distinct, but mutually dependent elements: process equipment, instrumentation, operating policies, maintenance policies, control strategies and people. To ensure maximum economic performance, in the dynamic environment that characterizes a concentrator, requires a periodic review of each of these areas. However, to be useful, the study must be based on sound metallurgical principles and be conducted in a highly focused manner. Experience teaches us that the exercise is very revealing and potentially very rewarding.This paper will discuss the process audit process and illustrate its potential value through illustration taken from plant studies.IntroductionThe last twenty years have seen tremendous technological and organizational changes sweep the minerals industry. Process control systems, on-stream analyzers, and gold recovery techniques barely conceived twenty years ago are now incorporated in virtually all new installations in an effort to maximize operating efficiencies. In conjunction with these developments, changes in the way plants are managed, down-sizing of technical staff, reduction in the size of operating crews, and the flattening out of the management structure have significantly reduced operating costs. As a result, plants are making more efficient use of our natural resources, minimizing the costs of production, and in turn maximizing operating profits. Or are they?"

Jan 1, 1991

By J. M. Menacho, J. M. Reyes

"Batch and continuous regrind tests were conducted in 3 kW and 15 kW tower mill units, respectively. Single particle size classes of a chilean copper sulphide concentrate were employed in the batch tests, while a fraction of the plant stream was deviated to the continuous unit operated under different conditions.Results are interpreted in terms of the simplified grinding kinetic model energy-based and conveniently adapted to this application. Based on the above figures plus some industrial data supplied by MPSI Inc., a scale-up relationship was developed for the apparent specific rate of breakage siE, as a function of the net power draw P, i.e.siE = siE text (P/P test) 0.089This equation fit very well the available data at the three scales and its application to regrind 4400 t/day of rougher copper concentrate from 70% below 325 Tyler mesh to 95% below same mesh, involves around 30% energy-saving compared to standard ball mill for same grinding task.INTRODUCTIONImpact and abrasion-attrition breakage are two extreme mechanisms present in any grinding system in a proportion defined by specific design and operating conditions. Impact breakage is generally efficient for coarse grinding, while abrasion-attrition is adequate to produce fine particles. Efficiency of conventional tumbling mills decreases as fineness of the product increases, even though distribution of applied stresses is always much stronger than internal force distribution in the particles. On the other hand.in a vertically stirred ball mill like the tower mill, distribution of applied stresses and particle strengths are in the same order of magnitude, making possible nearly ideal abrasion conditions (1).Tower mill configuration includes a cylindrical body vertically mounted and provided with a central screw with flights to produce circulation of balls moved up through the inner region to return down by the external space. Fresh material can be fed into the top , center or bottom in order to assure appropriate agitation of suspended particles. Size reduction and evacuation rates should compensate settling of coarse particles to avoid sanding of the screw. Detailed description of the tower mill and its operation have been given elsewhere (2),(3)."

Jan 1, 1989

By BARRY BANNATYNE

Non-swelling bentonite has been quarried in Manitoba by Pembina Mountain Clays Limited since 1941. It occurs in several thin layers near the base of the Pembina Member of the Upper Cretaceous Vermilion River Formation, and is quarried from the narrow outcrop belt along the slope of the Manitoba Escarpment. It is marketed both as natural and activated bentonite for a variety of specialized uses. Percolation of acidic water through bentonite has produced a naturally activated bentonite with good absorbent properties; these properties are enhanced by treatment with sulphuric acid to produce an activated bentonitefor decolourizing petroleum and vegetable oil.

Jan 1, 1984

By E. V. Manlapig, K. R. Rahal, J-P Franzidis

"The Floatability Characterisation Test Rig or FCTR is a highly instrumented, mobile flotation pilot plant built by Baker Process (now EIMCO) for the AMIRA P9 Project for use in flotation plant modelling and simulation studies. With the Mintek Floatstar system controlling the level in every cell, and the facility for full stream sampling on all streams, the FCTR is a unique tool for producing data of sufficient quality for flotation plant modelling. The plant was commissioned at Lonmin's Karee and Eastern Platinum concentrators in 1999/2000, and completed a number of test work programs to investigate the effect of power input and regrinding on metallurgical performance. Lonmin's experience with the FCTR has caused it to build two of its own to undertake further projects on its various mines. This paper describes the design of the FCTR and the features that make it a unique research tool, and the benefits derived by Lonmin through their experience with the unit.INTRODUCTIONAs part of the Australian Mineral Industries Research Association (AMIRA) P9 project, a new model for flotation has been developed, in which the overall recovery, R, of the jth floatability class of the ith size class of a particular mineral, is given as (Savassi, 1998):"

Jan 1, 2002

By A. Ouellette, E. Nilsson

"Preventative maintenance is a burden for equipment users but a demand from the machine suppliers to ensure performance. Machine availability depends on preventative maintenance being followed.Mining equipment is becoming more and more sophisticated and productive, yet less and less time is available for preventative maintenance. Manufacturers invest in reducing costs, simplifying operating requirements, and lowering maintenance requirements, but it is the users who must invest more heavily in the advanced maintenance systems to keep the units operating.IntroductionPreventative maintenance has been, and still is a key factor in avoiding disturbances in production due to equipment downtime. Manufacturers ask for it in extensive maintenance schedules, check lists, programs, etc. often with a ""threat"" that, if not performed, the machine guarantee will not be valid. Modern mining and construction machinery has become sophisticated, like all other machinery, with elaborate hydraulic, electric and electronic systems and computerized controllers. Maintenance organizations within the mining industry have grown to heavy cost centres just to keep up the availability of the equipment.It is difficult for machine manufacturers to have maintenance programs that suit every user. International suppliers have to deal with different cultures, education levels, environments, organizations, etc. Maintenance programs recommended by manufacturers often do not meet some user's needs while they are ""overkilling"" to others. Preventative maintenance schemes recommendations of what to do, in what frequency, etc.) usually fit mechanical components in the equipment, e.g. wear measurements, crack indications, lubrication, oil changes, etc. But how does one perform preventative maintenance on huge hydraulic systems, electrical and electronic systems and computers? Failures in these systems usually occur without any warning and are more or less impossible to predict. Another difficulty in creating effective preventative maintenance programs for these kinds of systems is the relatively low volume of mining and construction equipment that is produced per year. For example, although Atlas Copco is one of the largest manufacturers in the world of underground blast hole drilling machines, the company still does not produce more than a few hundred drilling jumbos per year. These are made in more than 10 different models, with different systems and components, and very often are custom adapted to the end user's requirements."

Jan 1, 1992

By T. R. Raponi

"The Williams Mine, Canada's largest gold mine, processes over 6,000 t/d of ore utilizing SAG/ball milling, leaching and CIP, carbon stripping, electrowinning and refining to produce gold dare bullion.Grinding accounts for over 50% of milling costs with grinding media, power and mill liners making up over 75% of grinding costs. Since 1991, several changes in these areas have been made which have significantly reduced costs, while fineness of grind and mill recovery have both been increased.This paper discusses the changes made in the grinding circuit over the past few years and assesses their impact on operating costs and mill operations.IntroductionThe Williams Mine is located in the Hemlo area of northwestern Ontario, about 40 km east of Marathon. It is operated by the Williams Operation Corporation, which is equally owned by Teck Corp. and Homestake Canada Inc. Canada's largest gold mine, the Williams Mine commenced operation in October 1985 at a rate of 3, 000 t/d. Mill throughputs have typically exceeded design, averaging 3, 397 t/d in 1986, and 3,380 t/d in 1987. In August 1988, production was increased to 6,000 t/d. Throughput averaged 4,212 t/d in 1988. Production increased over the next few years averaging 5,477 t/d in 1989, 6,248 t/d in 1990, 5,987 t/d in 1991, and 6,283 t/d in 1992. With a recovery of over 95.5%, production for the first three quarters in 1993 is averaging 6,408 t/d.GeologyThe main ore body is a steeply dipping conformable zone of microcline-quartz-muscovite rock. It occupies the contact zone between hanging wall metasedimentary rocks and foot wall felsic quartz feldspar porpyritic rocks of possible volcanic or subvolcanic intrusive origin. The ore body is enveloped by muscovite schists which are thickest on the footwall side. The schist is enriched with tourmaline, pyrite, and green mica containing vanadium and barium. The ore body contains pyrite and barite which occurs mostly in laminae and bands to veinlets and breccia fillings. The gold occurs as free (native) grains, 20 to 30 µm in size at grain junctions of the microcline and quartz. Visible gold is rare in the main zone. There are commonly two or more discernable layers of economic value which are separated by weakly gold mineralized material which usually consists of muscovite schist, barite rich zones or sulphide poor-microcline-quartz rock and in the upper and western fringes by biotite rich schist with feldspathic fragmental characteristics. Molybdenite is a common constituent as very fine disseminated grains in the microcline-quartz rock and is most prominent with gold enrichment. Stibnite and realgar are two of the more common accessory sulphides."

Jan 1, 1994

By R. Ramírez, N. Aslin, G. Ríos, T. Bravo, A. R. Almansa

Lacy copper has been an on-going concern at Atlantic Copper for at least 10 years and was first reported to Glencore Technology in mid-2010. Over the past 12 years, many of the plates were replaced due to age and general deterioration however; plate passivation and lacy copper issues have persisted. After analyzing all the possible causes of this phenomena, it was found that the problem is caused by a degradation of stainless steel as a consequence of the deposition of Sb oxides. These deposits act as passivating agents of stainless steel, which reduces the density of copper nuclei, causing defective copper deposit, with low thickness and ductility. After doing several tests for reducing/removing the phenomena, the over-riding factor was found to be the anode-cathode overlap. An adequate overlap eliminates the problem of "lacy copper". This was verified during an eight month trial with anodes extended 2.5cm in length. Longer anode not only avoids the appearance of lacy copper, but also recovers cathodes that already have lacy copper. On the other hand polishing of plates only gives rise to a temporary solution that requires on-going polishing, to avoid the re-appearance of lacy copper. INTRODUCTION The electrolytic copper refinery of Atlantic Copper in Huelva (Spain) was commissioned in 1970 with an initial capacity of 40,000 t of cathodes per year. In 1975 the copper refinery was expanded to 108,000 t/year. From 1994 to 1996, a new expansion together with the implementation of ISA permanent cathode technology led to a capacity of 215,000 t/y. Since 1995, a progressive increase in the current density up to 350 A/m2 has been accomplished, which together with an increase in the number of cells from 1,120 to 1,204, has led to the present cathode production capacity of 290,000 t/y A lack of copper deposition in the lower part of the steel permanent cathodes was first reported in 2010. This phenomenon is known as “Lacy copper” because of the appearance of the copper deposit as it can be seen in Figure 1. The occurrence of this phenomena was relatively low and was assumed to be originated by an excessive anode scrapping. Nevertheless, in December 2015 Lacy Copper was observed in a significant amount of copper cathodes giving rise to the following issues: Increased tramp copper – housekeeping and maintenance problems Poor appearance of cathode deposit and untidy looking bundles

Jan 1, 2019

By Philip J. Guerney, S. O’ Leary, André R. Laplante

"Concentration of dense mineral phases (s.g. greater than 7) for characterisation of individual particles and mineral grains by electron microscopy is a well established technique for the detection and characterisation of valuable mineral phases. This presentation describes the type of data that can be generated when both the concentration and characterisation steps are carried to higher levels than typical. The concentration step is the gravity recoverable gold (GRG) protocol that has been used for over 100 ore samples. This protocol yields three concentrates that represent three progressive degrees of grinding and liberation. Three ore samples were subjected to the GRG protocol and three size classes of each concentrate were characterised using the mineral liberation analyser (MLA), an automated, EDX-based tool. This presentation briefly presents GRG and MLA technology, and then focuses on the results obtained: photos, images and databank, the latter used to evaluate the extent of particle liberation and particle shape.INTRODUCTIONThe practice of gravity concentration prior to characterization of mineral samples using electron beam microscopy is solidly established. Typically, a dense liquid such as tetrabromoethane (density: 2.97 g/cm3) is used to reject the light phase, typically carbonates and silicates. The heavy phase, mostly sulphides, oxides and precious metals, is then mounted in a polymer matrix and examined using beam microscopy.Both the pre-concentration and the sample preparation/examination steps have seen significant advances over the past ten years, but are not without problems. A major issue of preconcentration is that most dense liquids used are toxic, tetrabromoethane being a prime example. More recently, a dense liquid with little or no toxicity (sodium polytungstate, distributed by Sometu Inc.) has become commercially available, but its use is limited to relatively low s.g. splits around 3 g/cm3. Dense liquids are viscous, and their use is limited to particles coarser than 37 µm, although centrifuge separation can probably lower this limit to around 10 µm. Magnetogravimetric separators can achieve much higher specific density cuts, but upgrading below 100 µm or in the presence of magnetic minerals remains a problem. The use of centrifuge separators such as the 3-in Knelson Concentrator (KC MD3) or the Falcon 4-in SB (SB4) is particularly attractive since these units can easily process large masses (by laboratory standards) and achieve a cut density well above those of dense liquids."

Jan 1, 2003

By Euler De Souza

Backfilling in Canadian mines has been practised for close to 100 years and evidence anticipates the application of mine fill technology at an increasing rate during the foreseeable future. The evolution of backfill technology is closely related to the advancement of modern mining methods and the development of new backfill technology continues to evolve. The authors, after conducting extensive surveys of backfill practices in underground mines across Canada, have concluded that, because backfill operations employ large quantities of cement and experience large costs associated both with backfilling practice and cement use, opportunities exist for reducing backfill energy costs and enhancing the application of alternative cementing agents in backfill. Consequently, the authors have developed an alternate, equally effective and lower cost binder agent replacement for cement, and incorporated waste glass into the development of a lower cost backfill (glassfill). This paper presents the results of two design stages associated with the development of glassfill: strength development and flow performance. The advancement of this technology has reached a stage that should promote industrial implementation within the Canadian mining industry. A number of Canadian mining operations exhibit potential for plant optimization through possible binder source replacement, and might thus realize associated reductions in backfill and energy costs.

Apr 1, 2005

By John A. Wells, Leticia Conca, Kenneth G. Thomas

"Since about 2002 there has been significant capital cost escalation, not inflation, in the mining industry causing turmoil for successful project completion. Project capital costs have more than doubled and some cases tripled in this time period. This has rendered many projects to be economically challenged and in some cases not viable. In addition higher than expected operating costs have further adversely affected project metrics such as NPV and IRR. Capital cost increases for projects have been widely reported globally. This current paper reviews three items. Firstly, why such capital increases and the various components that make up capital estimates. Secondly, it looks at reasons why preliminary estimates, for example at scoping and pre-feasibility level, have been lower than the ultimate constructed costs. Such increases and differences in estimates have caused major problems for mine builders and have led to a general nervousness on the part of those providing project finance. Thirdly, what discipline is needed in project execution in an attempt to mitigate such capital increases. The paper will hopefully give a better understanding of the various issues and factors involved for those in the mining industry.INTRODUCTION The years 2012 and 2013 were a turbulent time for the mining industry. The European economic crisis, politics, metal price volatility and a wave of changes of CEO´s in some of the major mining companies all contributed to a challenging couple of years. Two issues stood out. First, the huge increases reported in the capital costs of projects, where increases of 100% - 300% were not uncommon and in some cases exceeded that during the first decade of the 21st century. Second, company write downs related to takeovers during the boom and the stabilization/correction in commodity prices. These have led to great uncertainty, made it difficult (or impossible) to raise project financing costs, contributed to the changes at CEO level and placed many projects either on hold or cancelled altogether. It is commonplace now to read of companies talking of reduced capital expenditure and making a complete review of their projects and operations to contain costs."

Jan 1, 2014