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By G. V. Campbell, O. T. Holdsworth, M. G. Nelson

A senior design project is required by all accredited mining engineering degree programs. Often referred to as the capstone of a student’s education, this project is expected to include all the important components of the preliminary economic assessment of a mineral prospect, including orebody modeling, grade and reserve estimation, selection of mining and processing methods, preliminary mine design, access and utilities, environmental compliance and reclamation, and financial analysis. Two of the authors (Campbell and Holdsworth) completed a senior project in 2021. They analyzed the Akie zinc deposit located in Canada. This paper summarizes the economic analysis portion of that project. The two primary objectives of this economic analysis were risk reduction and integration of economics and engineering. Addressing risk is important as risk is one of the primary concerns in mining investments. Risk reduction was the primary concern through the entirety of this economic analysis. Integration of financial analysis and engineering design was the first component of a risk reduction design. This allowed for financial and engineering design to be optimized in conjunction with one another. This produced benefits from both a financial and an engineering prospective. From a market, economic, and financial risk perspective, risk was reduced by forecasting multiple metal price scenarios, and then addressing the Akie project’s economic viability at each price point. Lastly, risk was address through consideration of nontraditional financing options. The project also sought to minimize financial and human capital risk, by proposing mutually beneficial cooperative social relationships and favorable work, schedules. Description of that work is not included in this paper.

Mar 2, 2022

By W. K. Utt

This report discusses U.S. Bureau of Mines' research involving modem vehicle position determination techniques in surface mining. The applications would include haul trucks, power shovels, and drilling rigs. Accurate position determination of these vehicles in near real-time is expected to result in safer and more efficient mining operations. The requirements for a vehicle position monitoring and warning system were determined. After screening several concepts, the global positioning system (GPS) and a radar positioning system were selected for further evaluation. A state-of-the-art GPS receiver was taken to a surface mine to assess the feasibility of receiving the satellite signals. A state-of-the-art radar positioning system was evaluated with regard to accuracy.

Jan 1, 1995

By M. Visnjic

Open Pit Mine Production scheduling under commodity price uncertainty suffers from an exponentially increasing problem size as simulations and real options flexibility are used to generate and evaluate multiple production schedules. Robustness evaluation techniques attempt to evaluate a production schedule that is generated on a single set of economic parameters against several varying prices and sources of uncertainty. This approach is invalid as the corresponding optimal LOM mine plan will change for each set of evaluation parameters. Using commodity market futures and treasury bonds as production schedule economic input parameters provides fully price and time-value-of-money risked scheduling parameters that maintain a deterministic problem size. This paper will provide comparative analysis of project NPV’s coming from traditional price uncertainty evaluation based on a single fixed LOM mine plan using varying prices versus evaluation based on varying LOM plans that are both generated and evaluated using varying prices. When cross evaluating constant price mine plans against simulations, the upside potential and downside risk of a project are significantly misrepresented. INTRODUCTION The life of mine (LOM) production scheduling problem seeks to answer the question of from where and when to extract a given block within the ultimate pit limit as well as where and when to process it. Solving this problem takes into account the constraints of extracting any particular block while seeking to maximize the net present value (NPV) of the mineral asset as a whole. A direct driver of the value of a block, and there for the entire asset, is the market price of the commodity in question. Complications arise when an optimal production schedule is attempted to be solved under price uncertainty. Many solution methodologies have been proposed in an attempt to optimize under this criterion, yet there are three salient aspects that are overlooked during this process. They are: • Generating a single production schedule and evaluating it against many simulated price paths. • Failing to understand the mechanism describing particular commodity price behavior • Inappropriate risk adjustment In an effort to address these aspects of production scheduling under commodity price uncertainty, we propose a methodology to define the economic parameters as input that is applicable to most if not all production scheduling approaches. This methodology will not only simplify the production scheduling process in terms of establishing block value but utilizes the risk adjustment of real options valuation to avoid the arbitrary blanket risk adjustment of traditional discounted cash flow valuation. Our findings conclude that attempting to optimize around individual price paths is futile and using a market risk adjusted single price forecast provides a justified economic basis for production scheduling while maintaining the same problem size as a deterministic production scheduling problem.

Jan 1, 2019

By David Mast, Irwan Halim, Seung Han Kim

Fermilab is constructing a large underground cavern in Limestone to house scientific equipment. The cavern will have a complex L-shaped geometry and about 215-foot depth with relatively shallow rock cover, with service/egress shafts accesses into the cavern. Three-dimensional analytical models were developed to study the ground behavior and support performance. Multiple rock constitutive and failure models were evaluated. The models were significantly impacted by the high lateral in-situ earth pressure at the site. This paper will describe the design approaches that were taken to optimize the cavern arch geometry to allow safe construction in shallow rock, and permanent support requirements.

Jun 13, 2021

By Evgueni Jak

Pyrometallurgy is an important sector of modern industrial society actively participating in solving current environmental, economic, materials scarcity and other challenges. Recent advances in analytical methods, experimental techniques, thermodynamic, phase equilibria and process modelling tools provide new opportunities to increase the productivity of pyrometallurgical reactors, the treatment of complex feeds and metal recoveries. Fundamental theoretical models can now be used to make a significant next step towards the development and implementation of computerised models describing real industrial processes—Virtual Reactors, and computer-aided smart-decision-making systems that may be called Pyro-GPS by analogy to GPS; these developments can facilitate knowledge-based improvement and optimization strategies. The implementation of these improvements require ongoing collaboration between researchers, industry and government

By Nikhil Dhawan, Shrey Agrawal, Ashwini Kumar

The current study investigates sericite clay as an alternative source of potash and alumina. The alumina and potash content in the sericite is approximately 35 and 10%, respectively, compared with 50–55% in bauxite ore. Muscovite and illite phases are stable, and direct leaching is found to be ineffective. Here, planetary ball milling was performed, which provided dissociation of stable phases to relatively reactive phases. The milling led to a five-fold increase in the surface area, resulting in enhanced leaching kinetics even at low acid concentration. The statistical design obtained optimal conditions of 8 h of milling followed by leaching in 1.73 M HCl at 75 °C, yielding 82% alumina extraction in precipitate with 85% purity in γ-alumina form and 63% potassium dissolution in sylvinite phase. The yield of the precipitate was ~65–68%, and the acid leach residue contained primarily silica.

By Brian Mangogna, Clay McNail, Weishi Mang, Adam Steimel

Together with innovatively applying modern flotation reagents and developing the breakthrough mill enterprise expert control and operating system, Doe Run Buick Mill constructed an advanced large copper rougher scavenger to process its complex Pb\Zn\Cu ore more efficiently. The scavenger circuit, featuring its own motor control center, air blower, multiple reagent loops and FrothSense+™ camera, operates both mechanically and chemically to maximize copper recovery and under expert control. Such scavenger features can be applied to zinc rougher circuits for all Doe Run mills to maximize Cu recovery during Cu special runs when the zinc rougher becomes a copper rougher scavenger.

Feb 1, 2025

By J. L. Vanderbeek

The SAG milling of ores with markedly variable grinding rates presents definite process control challenges. Decisions must be made regarding the selection of the most appropriate combination of mill volumetric load level, percent solids, and mill speed for the combination of ore types being processed at the moment. An investigation was performed concerning the effects of these parameters. General results are presented.

Jan 1, 1985

By E. Harrison

The Greens Creek Ore Bodies are located approximately 18 miles southwest of Juneau, Alaska in an area on Admiralty Island classified as a non-wilderness national monument. An area-wide stream sediment geochemistry program targeted the deposit in October of 1973. Today, after 37,000 meters of combined surface and underground diamond drilling, three ore zones are known to exist with total reserves approaching 4.1 million tonnes. Lying within moderately folded metasediments of an undetermined age, these orebodies are thought to be of seafloor exhalite orgin and contain unusual and impressive amounts of gold, silver, lead, zinc and copper.

Jan 1, 1986

Obtaining financing for mining and exploration projects has been difficult for the last several years, particularly for junior companies. Today, though, the purse strings of investors appear to be loosening, leaving the industry with many questions about financing in the coming years. How have capital markets and exploration spending changed? Are there signs of improvement? Where has capital been raised in private, public markets, stock exchanges, private equity, etc.? What companies successfully raised capital in the last year? How are they spending it? How are traditional and alternative funding sources investing in mining? What are the issues mining companies need to know about when tapping alternative sources of capital? Those were some of the questions that were answered at the Current Trends in Mining Finance conference, sponsored by SME and the New York Section April 26-28. Held in New York City, the conference attracted 115 professionals who work on the finance and economic side of the mining industry. Three of the conference organizers talked with Mining Engineering about the conference and the state of financing in the industry today. Tim Alch (TA) is managing director with Behre Dolbear & Co. Alan Oshiki (AO) is executive vice president with the Abernathy MacGregor Group. Henry Weingarten (HW) is managing director with the Astrologers Fund Inc. Here is what they had to say.

By D. Goffaux

In less than two years, Stratmin has discovered, explored, developed, financed and put into production by open pit, a large graphite mine. The deposit, hinted by airborne electromagnetic survey, was discovered in September 1987 through various ground geophysical surveys, diamond drilling and trenching. The open pit started production in February 1989, feeding a nearby leased mill at Notre-Dame-du-Laus (Quebec), having a processing capacity of 400 tons per day. A new 1,000 tonne per day mill was built at the mine site, in Lac-des-lies (Quebec) and began production in April 1990. The Lac-des-lies graphite operation is currently one of the largest of its kind in the world. Mine and mill facilities are operated by Stratmin Graphite, jointly owned by Stratmin Inc. (75%) and Imetal-France (25%), a wholly owned subsidiary of Imetal (France). From initial exports limited to Japan and United States, Stratmin Graphite is now exporting in fourteen different countries, attesting to the very high quality of its products, with grades ranging from 92% to 97% carbon. Among the numerous graphite deposits discovered in Canada, Stratmin Graphite Inc. has emerged as the leader and virtually the sole crystalline graphite producer in North America, operating on a continuous basis.

Jan 1, 1992

Several major impediments threaten the successful delivery of tunnel and under-ground construction projects. In addition to technical design and construction risks associated with tunnel projects, many of which are well understood, budgetary pressures, funding constraints and the complexity of procuring, administering and executing multiple concur-rent projects in a large program could also have a catastrophic impact on the program?s objectives. Contributing factors often include poorly managed design, procurement, construction, managerial, organizational, market and stake-holder risks, as well as nonconforming inputs or outputs to the costs and schedule, or any other potential inabilities to deliver the required or desired results. A strategy to prevent ?failure? of a project requires a proactive and holistic approach to risk management. Through planning, identification, analysis, management, monitoring and control of the project?s risks (both threats and opportunities), attention to management of risk will in-crease the probability and impact of positive events and decrease the probability and impact of events adverse to a project?s objectives.

By Elwyn H. King, Thomas R. Kuesel

I. CONCEPT MARTA's Peachtree Center Station is being mined out of hard rock, directly beneath Atlanta's central business district, with minimal surface disruption during construction. Its cost is competitive with that of a conventional cut-and-cover alternative owing to its design concept, which utilizes the rock as a primary structural and architectural material. II. PLANNING The station was originally planned for cut-and-cover construction. However, Peachtree Street is unusually narrow for a main business street (generally 78 feet (24 m) between building lines) and cut-and-cover construction would therefore be very disruptive to surface traffic and severely restrict access to adjacent buildings, including Peachtree Center, Atlanta's showcase business/commercial complex. (See Fig. 1.) Tunneling had been considered, but was initially thought [ ]

Jan 1, 1979

By C. Garcia, J. J. Opazo, A. Potulsha, T. Comi

"Sierra Gorda SCM is a joint venture partnership of KGHM International (owned by KGHM SA, Poland), Sumitomo Metal Mining and Sumitomo Corp. (Japan) operating in northern Chile. The Sierra Gorda openpit mine and coppermolybdenum processing plant will become one of the largest mines in the world. The need for optimum production efficiency and sustainability has driven the creation of the most modern, wellinstrumented mine in Chile. This article contains a general review of the project including geology and history.This was a fast-track project going from greenfield site acquisition to mill startup in 10 years. Highly experienced and motivated engineers and technical staff have overcome many significant challenges resulting in a rapid ramp-up of production capacity. A potential expansion to double the production rate in the fourth year of operation has also been intensely studied.The Sierra Gorda property is located in the Atacama Desert of northern Chile, in the District of Sierra Gorda, Region II of Antofagasta, Chile (Fig. 1). There is almost no precipitation in this area. The mine site is generally flat with some rolling hills. The project is located about 5 km (3 miles) from the village of Sierra Gorda at an elevation of approximately 1,700 m (5,600 ft) above mean sea level. The village is near a highway and railway line. The city of Calama, home of the famous Chuquicamata Mine, is located about 60 km (37 miles) northeast of Sierra Gorda. In addition, the SG mine is in the midst of numerous other mines including Spence, Esperanza, Mantos Blancos, El Tesoro, Lomas Bayas, Gabriela Mistral, El Abra, Radomiro Tomic and Escondida, to name a few.The primary organizational value at Sierra Gorda is "Zero Harm." This includes employees, contractors, the environment, the community, plant facilities and mine equipment. A cornerstone of this program is called 5X5S (five by five S), which combines the lean principles of 5S with the safety model of taking five steps back and thinking about the task at hand for five seconds, five minutes, the time it takes to assess and manage the risk. "People caring about people" promotes proactive engagement in the safety of coworkers and others at work and at home."

Jan 1, 2014

By G. D. Hood

The U.S. Bureau of Mines investigated rapid froth flotation through the use of more efficient bubble-particle collisions that improved the overall flotation kinetics. An in-line static mixer efficiently mixed the air bubbles, water, and ore, rapidly attaching the hydrophobic mineral to the bubble surface. As the mixture entered the flotation chamber, the hydrophobic mineral was already attached to the bubbles and was quickly floated away from the remaining ore pulp. A rougher concentrate containing 4.5 pct copper was obtained from a western porphyry copper ore containing 0.67 pct copper. Over 99 pct copper was recovered from the ore at a rate 7 times faster than conventional flotation.

Jan 1, 1991

By B. K. Slone

The depth at which it becomes more economical to use slope access as opposed to box-cut access for near-surface coal reserves, termed "transition depth," can be established for a given coal property by considering cost estimates for those parameters that determine respective access method. Fourteen parameters that influence access cost were identified and ranges determined. A Transition Depth Formula was developed to permit determination of the better method of accessing a reserve, given such information as highwall slope, road width, total bench width, pit dimensions, road grade, belt component costs, pumping costs, and cost of overburden removal and reclamation. In most cases, in Appalachia, studies indicate that the transition depth ranges between 20 and 30 m.

Jan 1, 1998

By M. Ziegler

The article deals with the use of a digital twin in the assessment and optimization of a conveyor system in the Chilean copper mine. This example shows that a digital twin is initially just a new (albeit powerful) tool with which the system behavior can be examined. The benefits for the customer arise through the system identification and automatic detection of critical deviations from the target state. This knowledge allows mine management to react and coordinate operational and/or maintenance counter measures to insure optimal performance of their conveyor system. The information derived from the BeltGenius digital twin also allows mine management to gain a clear perspective of the overall efficiency of their conveyors, which will be invaluable for future conveyor component selections.

Mar 2, 2022

By Stanley M. Moos

The Pueblo Viejo gold/silver mine, located in the Dominican Republic, started production in early 1974 processing ores averaging 4 g/tonne gold and 20 g/tonne silver at a rate of 7,250 tonnes/day. The ore milled is a silicified siltstone with average work index of about 8 that occurs as an extensive oxide capping of a primary sulfide orebody. The sulfide ores are refractory to conventional treatment process and extensive research work is now in progress to develop a treatment process for them. The ore deposit has a long history having been mined by the indigenous Arawak Indians (for some time in the early sixteenth century) prior to the arrival of the Spanish and then by the Spaniards. In the early 1950?s, Italian engineers attempted to process the sulfide ores. Mining by the Indians and Spanish was abandoned because of low grade and little coarse gold in the oxide ores and by the Italians because of the refractory nature of the sulfide ore. In 1969, Rosario Resources geologists discovered that there existed sufficient reserves of oxide ore for a viable mining operation and accordingly, the plant was designed, built and brought into production.

Jan 1, 1979

By George J. Saulnier

The U.S. Geological Survey has developed mathematical-modeling techniques to assess potential impacts on the hydrologic system resulting from mining of coal and oil shale in northwestern Colorado. Potential impacts of oil-shale mining on ground-water hydrology have been simulated using a quasi-three- dimensional finite-difference model. The model has been used to simulate hypothetical mine-dewatering operations at two proposed oil-shale mines. Dissolved-solids distribution and solute transport were simulated with a three- dimensional finite-difference model that was used to evaluate the effects of flooding in hypothetical abandoned mines. The potential impacts of coal and oil-shale mining on watersheds were investigated using a digital watershed model. This deterministic physical- process model predicts responses of the hydrologic system to modifications resulting from mining in basins having snow as the major source of runoff and recharge. Potential impacts of coal development on surface-water quality were investigated using a river-quality assessment model.

Jan 1, 1979

By P. M. Pettit

Hydrologic investigations at Gold Quarry began in 1989 and continued through 1991. Hydro-stratigraphic units include Tertiary sedimentary rocks, Paleozoic siltstones and carbonates. These units display complex and variable aquifer parameters as a function of faulting and hydrothermal alteration, creating compartmentalized hydrologic domains. Testing has included step-tests, spinner production logs and constant discharge tests. Two Three-Dimensional Finite Element Models have been developed, one for optimizing the pit dewatering system and the second for predicting regional impacts of dewatering. Aquifer testing and long term pumping have been used to calibrate both Finite Element Models.

Jan 1, 1992