Search Documents

By Richard P. Graff

Author?s note: Diversity in practice exists in the application of Generally Accepted Accounting Principles (GAAP) for purchase price allocations with respect to the recognition of Value Beyond Proven and Probable Reserves or VBPP, as defined by the Emerging Issues Task Force (EITF) in EITF 04-3: ?Mining Assets: Impairment and Business Combinations?. This diversity appears to arise from differing interpretations of what constitutes sufficient information to value components of VBPP in business combinations. Concerned with this diversity in practice, respected members of the mining community formed a working group which prepared an issues paper that discussed this diversity and provided recommendations for recognition and valuation of VBPP in business combinations. The working group then submitted this paper to the EITF, requesting further guidance be issued on the concept of VBPP. In conjunction with the submission to the EITF, the working group also provided this paper to the United States Securities and Exchange Commission (SEC) for review and comment. The EITF discussed this issue at its May, 2008 agenda committee meeting. However, it declined to add this topic to the EITF agenda for further consideration. Absent additional guidance on VBPP from the EITF, the working group submitted a proposed definition of VBPP to the U.S. Securities and Exchange Commission for its consideration. The following article, which is consistent with the issues paper that was submitted to the EITF and the SEC, discusses the components of and valuation techniques for VBPP. The correspondence with the U.S. Securities and Exchange Commission, which includes the proposed definition of VBPP by the working group, is attached as Appendix 1 to this article.

Jan 1, 2008

By J. Pinkley

In June of 2002 Hilti North America received the first MSHA permissible approval for usage of a powder actuated tool device in a gassy mine atmosphere. The purpose of this paper is to discuss the implementation of this commonly utilized tool technology in the construction industry, to the underground gassy mining industry over the course of the last 5 years. Prior to June of 2002, underground gassy mining industry had attached materials such as ventilation curtains, power cables, communication cables, signage, and other materials by either manually driving individual spads or nails into the mine roof or rib or by attachment to existing roof bolt bearing plates. The Hilti DX 460 powder actuated tool is portable, durable, and lightweight (4.5 pounds). The Hilti DX 460 powder actuated tool system is powered by Hilti .27 caliber permissible explosive boosters. The energy force of the Hilti .27 booster?s acts on a captive piston principle in the Hilti DX 460 powder actuated tool, that applies the setting force for the direct fastening to the individual fastener chosen for the application by the end user. Each year Hilti can be called upon by MSHA to provide booster materials for re-testing per our Hilti DX PAD 1/00 approval.

Jan 1, 2008

By Douglas B. Silver

Traditional cycle theory would postulate that if you have a supply shortage relative to demand, the price will increase because buyers will incrementally increase the price they are willing to pay to ensure that their needs are fulfilled. As prices rise, more supply will be brought on and will eventually exceed demand. This supply excess will cause the price to decline as producers have to lower their prices to sell their goods. What is interesting is that cycles are simply volatility over time. Without the time factor, volatility simply goes up and down. When we add the time element, a cycle is created. This cycle can be big or small. In mining?s case, we are talking about a Super Cycle ? a big cycle. But a Su-per Cycle can be formed in two ways. It can form by either increasing the wavelength or the volatility. If these two elements are combined, a Super Cycle is formed. It is bigger than the normal cycle in terms of time duration and extent of volatility. A recent study (Fig. 1) conducted by Cuddington and Jarrett showed an interesting proof of Super Cycles and suggests that these cycles last between 15 and 30 years. So, what causes a Su-per Cycle? Is it a convergence of unrelated events or a consequence of related events? In a global community everything is related. Equilibrium theory would also take the position that a Super Cycle is a consequence of events.

Jan 1, 2008

By Frank Palkovits

All technologies move through a cycle from infancy to maturity. Thickened tailings have moved into the young adulthood phase of its development. Many mining companies like the idea of reducing their water-taking and water disposal issues. This limits the risks associated with traditional surface water-covered tailings facilities and the reduced dilution possible through underground disposal of thickened or paste tailings. Just as home theater systems advertised as ?plug and play? are rarely quite that straightforward, implementing and improving a thickened-tailings system has its challenges. However, the technology has also developed in recent years so it is more accessible. Some success factors have emerged because of the new technologies. Is thickened tailings the right solution? The first step in success with thickened tailings should be whether it is, in fact, the right solution for a particular mine. And, if so, what type of thickening is best. The answer depends on several factors, including: ? Grain size: The grain size that is optimal for maximizing mill recovery is some-times not suitable for thickening. Other mineralogical factors, such as mica content, may also influence whether the tailings are suitable. ? Water issues: Available water does not always have the purity necessary for the process. Another issue to consider is that if water is in short supply, as is increasingly often the case, thickening may be a way to reduce the need to both take and dispose of water.

Jan 1, 2008

By Kumar Vikram

Rich reserve of prime quality limestone in east khasi hills of India and abundant quantity of low-cost fuel (Natural Gas) in Bangladesh made Lafarge Surma cement limited a joint venture company of Lafarge France and Cementos Molins Spain to envisage an integrated cement plant at Chatak District-Sylhet) a bordering town of Bangladesh. Since April 2006 the single flight 17 km Long Belt Conveyor (LBC) built by M/S Larsen & Toubro Ltd. (L&T), ECC Division an engineering and construction company of India, is feeding limestone/shale to the Lafarge Surma cement plant. This engineering marvel was created on a turnkey basis with technology support of M/S Aumund France

Jan 1, 2008

By Emad Iskander

The seepage forces generated around pressurized water tunnels in rock are investigated using the analysis tools of geomechanics. The theoretical background of the two-phase material behavior is explained and the equations of motion and continuity are presented. Applications on two case studies typically occurring in practice deal with the required minimum rock cover for a pressurized tunnel and the separation between two tunnels carrying different heads. The rock mass behavior as described by the Mohr-Coulomb and Hoek-Brown material models is investigated by numerical analyses and the results are compared. The effect of key material parameters on the safety factors and the associated modes of failure is discussed.

Jan 1, 2008

By Jan M. Mutmansky

Since 1973 when the first edition of the SME Mining Engineering Handbook was published, many significant changes have occurred in the US mining industry. The industry went through a fairly prosperous period immediately after 1973, but then many economic pressures came to bear on mining companies, particularly in the metal and coal branches of the industry. These pressures changed both the mining methods used and the general economics of the mining methods. As a result, the industry today is different in many ways titan it was in 1973. A general summary of some of the more important changes that have come about will be provided here as well as some assessment of the effects of these changes on the choices of mining methods. In the metal mining industry, the most significant trends were increased surface mining, the use of larger and more efficient equipment, and increased technology and automation. The primary impetus for these changes was unprecedented competition from foreign producers. In many cases, this competition came about because of the nationalization of foreign mines and the tendency for these mines to become a source of foreign exchange. Under these circumstances, the mines could be operated even though they were not profitable. As a result, domestic

Jan 1, 2008

By I. Tsolas

This paper presents the use of non-parametric approach (i.e., data envelopment analysis, DEA) for the development of environmental sustainability indicators in mineral processing using environmental, economic and/or integrated indicators (i.e., indicators that interrelate two dimensions of sustainability). A case study based on real publicly available data is presented to illustrate how the proposed approach can be implemented in practice. The merit of this approach, which is based on the productive efficiency framework, is that it provides environmental sustainability indicators that can be used internally for benchmarking purposes and externally for sustainability reporting.

Jan 1, 2008

The National Institute for Occupational Safety and Health conducted laboratory and field tests to evaluate the effectiveness of dust collector bags for reducing dust liberation and operator exposure from a roof bolter?s dust collection system. The laboratory tests evaluated the bag?s effectiveness to contain dust and the effect on canister filter loading in both a bag and bagless condition. The dust emissions from the collector?s exhaust were also measured in each condition during laboratory testing. Laboratory results show that nearly 100 percent of the test dust fed into the collector was captured by the dust bags. Loading and pressure drop on the dust collector?s canister filter is greatly decreased when using the bags, enabling longer periods of drilling without filter removal/cleaning. The field results showed that, even though dust standards were met, respirable dust in exhausted emissions was reduced around the bolter. Laboratory and field results show that benefits from use of the bags are realized in all areas of operator exposure.

Jan 1, 2008

By C. L. Van Dover

Organisms living at hydrothermal vents are adapted to catastrophic disturbances in their environment caused by processes such as tectonic activity and mineralization that shift the locus of fluid flux and volcanic eruptions that pave over active systems and reset the hydrothermal cycle. The scientific community appreciates this risk of natural, local loss of species, genetic, and habitat diversity. The risks of more profound loss of diversity and ecosystem function and health as a consequence of additive commercial activities in hydrothermal systems are unknown, and are not the same across all deep-sea hydrothermal systems. Vent communities differ from one ocean basin to another, as do the geological settings and geochemical dynamics of vent systems. Communities on the East Pacific Rise represent one end-member in the catalog of hydrothermal vent communities. In these systems, the life cycle of a hydrothermal field is on approximately the same time scale as the lifespan of the species that live there. From studies of the 1991 and subsequent eruptions at 9N on the East Pacific Rise, we understand the rapidity with which new vents are colonized when nearby brood stocks are available to repopulate the system. Almost instantaneously, microbial biofilms and mats form, followed quickly by invasion of mobile opportunistic organisms (especially crabs, copepods). In a matter of a few months, a predictable succession of sessile organisms recruits, grows, and reproduces. Within two to three years, the system returns to levels of species diversity that begin to match those of the pre-eruption condition. Vents on the Mid-Atlantic Ridge (MAR) represent a different end-member, with catastrophic disturbance rare relative to the life span of the organisms that make up the bulk of the biomass. We have no experience with an eruptive event or other major transformation of venting activity on the MAR and thus have no knowledge or insight regarding the time it would take for the biological diversity to return to pre-cataclysmic levels.

Jan 1, 2008

By Mohammad R. Jafari

The Camp Dresser & McKee (CDM)/Hatch Mott MacDonald (HMM) joint venture has been engaged by the New York City Economic Development Corporation (NYCEDC) to provide engineering ser-vices in connection with the replacement of two existing siphons which cross New York Harbor between Staten Island and Brooklyn. The project involves the construction of a 72-inch diameter pipeline within a 12-foot diameter tunnel beneath the New York Harbor. The tunnel will be constructed using either slurry or an earth pressure balanced (EPB) tunnel boring machine (TBM). This paper presents the results of an extensive geotechnical field and laboratory testing program including advanced frozen soil tests (uniaxial compressive strength tests, triaxial tests, and uniaxial creep tests), in-situ vane shear and pressure meter testing, and a marine geophysical survey (seismic reflection technique) to ascertain the complex subsurface conditions along the tunnel alignment and shaft locations. The paper will also discuss the design and construction aspects and the challenges associated with each component of this project.

Jan 1, 2008

By K. Pietruszka

The article presents the concept of the application of the Finite Element Method (FEM) and ABAQUS software in the global monitoring of changes in the rock mass and on the surface of the area, as a result of backfilling the workings. Waste materials applied for stabilizing old mining workings can have a strong influence on the rock mass and surface. According to the regulations, this process should be carefully monitored, especially in terms of the safety of surface structures and rock mass stability. The article presents the concept of an analytic and graphic presentation of the results of the measurements of old workings, applying the Finite Element Method and ABAQUS software in model studies. The main purpose of such interpretation of the geodetic observations results is the application of methods providing wide possibilities to present the geometry of workings, their changes and the influence of the rock mass and surface.

Jan 1, 2008

By Ludger Suarez-Burgoa

At the Porce III Underground Powerhouse Complex in Colombia, the observational method (Peck, 1969), was used to provide information to an underground wedge and a 2D Finite Element Method numerical models, both used to estimate the mechanical behavior of the hoisting rock mass. The observation process consisted in collecting fault events in the field and in interpreting Multiple Point Borehole Extensometers and Surface Convergence Displacement Points readings. The calibrated models were employed to predict the behavior of the pillars formed between the machine and transformer caverns. The observational method is an important activity during excavation of large openings and provides arguments to understand the rock mass mechanical behavior.

Jan 1, 2008

By John Heter

An alum/sulfur deposit (USDA organic registered) was mined underground for alunite (K,Na) Al3 (SO4)2 (OH)6 from the early 1900s to the 1930s. It is now being mined as an open pit quarry. A larger assemblage of minerals is included with this method (Alunite, Potassium?Alum, Jarosite, Gypsum, Native Sulfur and K-feldspar). This assemblage of minerals provides the necessary requirements as a Volcanic Soil Conditioner Sulfur-Potash. Heart of Nature? Company has been marketing this product to farmers on the west coast as a (1) pH reducer, (2) soluble sulfur and potassium source for plant growth and (3) soluble calcium. Recently, a new market has been tapped. This product has been found to solve many odor, bacteria and algae problems faced in the dairy industry.

Jan 1, 2008

The development of information concerning mesothelioma in South Africa started with the 1959 finding of Dr. J. Christopher Wagner of cases of mesothelioma in persons living in the vicinity or working in crocidolite mines in Cape Province. After more than 40 years, the data from South Africa now provide important insights into the differences in mesothelioma risk associated with different asbestos fiber-types. Three case series reports and one analytical report were reviewed in this session. In total, information on 504 proven cases was presented. There were 28% of cases arising from occupational exposure in mining, 35% from non-mining occupations, 23% from environmental exposures; 14% where no exposure was established and 9% where the exposure was unknown. Among the 129 cases for which occupational exposure and asbestos fiber-type were established, 115 cases were associated with occupational exposure to Cape crocidolite; 1 case associated with occupational exposure to Transvaal crocidolite and 9 cases with occupational exposure to amosite (grunerite asbestos) and 4 cases with occupational exposure to mixed fiber-types. There were no cases associated with chrysotile asbestos. There were 33 cases of environmental mesothelioma linked to Cape crocidolite exposure and 2 to exposure to amosite and crocidolite but none to Transvaal amosite alone or to chrysotile. The evidence shows that amosite is capable of causing mesothelioma but that the major risk in South Africa is associated with Cape crocidolite.

Jan 1, 2008

By Julian Prada

Tunneling requirements are presenting designers with greater challenges. The design and construction of the 2000-ft long unidirectional twin highway tunnels for the approach to one of two bridges of the Louisville-Southern Indiana Ohio River Bridges (LSIORB) Project is no exception. Excavation under low cover, beneath an historic site, with each tunnel of 70-feet wide and 50-feet high dimensions will set precedents for US highway tunnel excavation size. To investigate ground conditions to supplement final design of the highway tunnels, an exploratory tunnel excavated through karstic limestone and shale will be located within the confines of the proposed final alignment. With the LSIORB Project, Jefferson County, Kentucky and Clark County, Indiana will have improved cross-river mobility between them. The Indiana Department of Transportation (INDOT) and the Kentucky Transportation Cabinet (KYTC) are developing the LSIORB Project jointly, in coordination with the Federal Highway Administration (FHWA). Section 4, one of six sections, as shown in Figure 1 is the East End Kentucky Approach and Connections to I-265. Key elements of Section 4 are the twin three-lane highway tunnels under the historic Drumanard Estate. The property is located on the north side of US Highway 42 (US 42) at the intersection with the Gene Snyder Freeway (also KY841) as shown in Figure 2. One aspect of the project consists of the excavation of an Exploratory Tunnel along the southbound alignment tunnel. At the time of preparation of this paper, KYTC has not awarded the Exploratory Tunnel Contract. This paper will focus on the planned geotechnical investigation program that will occur during excavation of the exploratory tunnel and how the design of the twin highway tunnels will incorporate the findings to achieve an innovative and efficient configuration.

Jan 1, 2008

All aspects of precious metals processing were featured at a symposium held Oct. 3-6, 2007, at Loews Ventana Canyon Resort in Tucson, AZ. Although billed as "Precious Metals Processing: Advances in Primary and Secondary Operations," the symposium also looked at economic, regulatory and environmental issues affecting the precious metals industry. The symposium was sponsored by SME; The Minerals, Metals & Materials Society (TMS); and the International Precious Metals Institute (IPMI). It included workshops, technical presentations, guest speakers and social activities. Mining industry management, process engineers, equipment manufacturers, consultants, metals marketers, academics and others involved in the precious metals industry attended the conference. Needless to say, with gold nearing $25.721g ($800/oz) and platinum pushing $41.801g ($1,300/oz) at the time of the meeting, the mood among the attendees could not have been more positive. The symposium was privileged to have Father Ernest S. Sweeney, professor of Latin American History at Loyola Marymount University, as a guest speaker. Sweeney, a Jesuit priest, provided a colorful account of the history of mining in Arizona and the surrounding region of North America (Fig. 1). He described the importance of the mining industry and said, "To go down into the bowels of the earth to extract its riches for the benefit of all of us is an awesome task deserving our sincere respect and gratitude." However, he warned the industry that: "The ever increasing de¬mands on the mining community for the protection of the environment calls for endless efforts to maintain ethical standards in a business filled with risk, uncertainty and frustrations." Sweeney noted that the Spanish conquest of the Americas was driven by the three fundamental motives of "God, glory and gold." He noted that gold was the basic, most powerful driving force of the conquest and occupation of the Spanish empire. The first European to explore Arizona was the Franciscan missionary Marcos de Niza. He came to Arizona in 1539 in search of the fabled Seven Golden Cities of Cíbola. Sweeny noted that Spanish explorers were consumed, as Cortes himself described it, "with a burning fever that only gold could cure." Sweeney told the story of some of these early explorers, including Francisco Vázquez de Coronado who "mounted an expedition in pursuit of gold and rich empires to conquer." Coronado passed through Arizona and discovered the Grand Canyon. "Coronado returned to Mexico exhausted, bankrupt and disillusioned, but with a wealth of new knowledge of the borderlands of the Spanish empire," said Sweeney. He then described the colorful history of early gold, silver and copper exploration and mining in Arizona, including the famous tale of the Lost Dutchman's Mine. In a luncheon address, David Kanagy, SME's executive director, introduced the attendees to the upcoming OneMine. org Web site. Kanagy told the audience" One-Mine.org will be a collaborative digital library that will

Jan 1, 2008

By Arthur Darby

The city of Kuala Lumpur was founded in 1857 by miners seeking tin near the confluence of the Klang and Gombak rivers. The rapid development of the city and surrounding area since independence has led to more rapid runoff during rainstorms and to gradual canalisation of the rivers with some restricted sections. The outcome has been more frequent and more severe floods (Abdullah 2006). At the same time the centre of Kuala Lumpur has become a modern inter-national city with tall office buildings, hotels, and shopping centres connected by a network of wide roads and commuter rail systems. With these the cost of dislocation during floods has risen as has the cost of making good damage afterwards. The Government of Malaysia considered these consequences unacceptable and sought ideas from the private sector for a solution. Potential solutions consisted of variations on the themes of bypassing the city centre with a flood relief tunnel or of providing off channel storage or a combination of both. Since under Malaysian law a tunnel cannot be constructed under private property unless this is first purchased or agreement reached with the owner, it was necessary for most of the tunnel alignment to run below existing heavily congested roads. After considering these facts Gamuda Berhad and MMC Berhad, two leading Malaysian development and construction companies, decided to propose to Government an innovative solution in which the tunnel would be used to carry road traffic except during floods.

Jan 1, 2008

By Graham G. W. Mustoe

Energy losses are important factors in a conveyor's performance and design. A significant energy loss due to belt sag within a conveyor system occurs when shearing motion between the bulk material particles occurs as the material moves along the belt. An initial analysis of these phenomena was performed using the discrete element method, which is a general-purpose numerical modeling technique for analyzing the mechanical behavior of particulate materials. The software used in this work was Overland Conveyor Company's, Chute Analyst Professional, a discrete element computer code designed specifically for analyzing bulk materials transportation and handling problems.

Jan 1, 2008

When the 2008 Olympic Games begin in Beijing, China is September it will not only mark the end of the journey for the Olympic torch and the thou-sands of participating athletes, but the games will also mark the culmination of a massive amount of construction in the city. On display for the world to see will be 31 new and refurbished venues including the 91,000-seat National Stadium called the ?Bird?s Nest? and the aquatics center, called the Water Cube. What will not be featured as prominently on the television cameras broadcasting the games around the world will be the network of tunnels built beneath the city. But that infrastructure of rail lines will be of critical importance to the games. While preparing to host the world, China added a subway tunnel that will include four stops in the Olympic Park. The 4.4-km (2.7-mile) subway line that runs through the complex of stadiums, gymnasiums and parks began trial operations in June. Prior to the opening of that line, Beijing's No. 5 subway line, which runs through the heart of the city from north to south, opened in October. That 27.6-km (17-mile) line took nearly five years to build and includes 23

Jan 1, 2008