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By Robert E. Gray

The vat leaching operation at the Yerington Mine was started in October, 1953. The original plant facilities consisted of primary and secondary crushing, eight leaching vats, precipitation launders, sulfuric acid plant and the necessary maintenance, warehouse and administrative facilities. By 1961, 35,000,000 tons of oxide ore had been removed from the mine exposing the underlying sulfide ore body. A 5,000 ton per day concentrator was constructed and put into operation to treat the sulfide ore in November, 1961. The original crushing plants were used for both oxide and sulfide ores. By adding a third crushing shift for six days per week, the treated ore was increased from 12,000 to 17,000 tons per day. To balance the oxide and sulfide ore reserves, the concentrator was expanded to 13,500 tons per day in 1967. Again, no additional crushing facilities were added. It was anticipated that the treatment rate of oxide ore would be reduced from 12,000 to 9,000 tons per day. Instead, the addition of two crushing shifts per week, and improved operating procedures, increased the treated ore to 26,500 tons per day, 13,000 tons to the vat leaching and 13,500 tons to the concentrator.

Jan 1, 1975

By T. M. “Mike” Gurr

"U. S. marketable phosphate rock production for the 2018 crop year (July 1, 2017 to June 30, 2018) showed an increase to 27.7 Mt (30.5 million st) from the 2017 crop year production of 27.1 Mt (29.8 million st), as reported to the U. S. Department of the Interior by the mining companies operating in the United States during crop year 2018 (Table 1). Domestic consumption decreased in the 2018 crop year to 23.9 Mt (26.3 million st), as compared to the 27.2 Mt (30 million st) consumed in crop year 2017. U.S. imports of phosphate rock increased to 3 Mt (3.3 million st) for the 2018 crop year from the 1.81 Mt (1.9 million st) for crop year 2017. Imports of phosphate rock were from Peru and Morocco. There was an increase of 2.85 Mt (3.1 million st) in producers’ stocks from 7.45 Mt (8.2 million st) in crop year 2017 to 10.3 Mt (11.3 million st) in crop year 2018 (Table I).For calendar year 2018, Florida and North Carolina phosphate rock production accounted for 75 percent of the total U.S. production, with the balance being produced in Idaho and Utah. The Florida and North Carolina percent of U.S. production is declining. U.S. production of 25.7 Mt (28.3 million st) in calendar year 2018 was produced by five companies at 10 mines in four states and accounted for approximately 9.6 percent of the world production of 267.7 Mt (295 million st) for calendar year 2018 (Table 2).In calendar year 2018, U.S. phosphate production decreased by 2.2 Mt (2.4 million st), while companies increased stocks of phosphate rock by 1.7 Mt (1.9 million st). The domestic production for calendar year 2018 of 25.7 Mt (28.3 million st) represents 78.4 percent of the domestic production capacity of 32.8 Mt (36.1 million st).At present, China reportedly produces more than 50 percent of the world’s phosphate rock. As a result of planned expansions, Morocco production has increased from 27 Mt (30 million st) in 2017 to 33 Mt/a (36 million stpy), which is approximately 12.3 percent of the world’s production, moving ahead of the U.S. production. In calendar year 2018, the U.S. phosphate rock production was 25.7 Mt (28.3 million st), which is less than 10 percent of the world’s production of phosphate rock (Fig. 1)."

Aug 1, 2019

By Liming Yuan, Wei Tang, RICHARD THOMAS, JOHN SOLES

Lithium-ion (Li-ion) battery pack fires pose great hazards to the safety and health of miners. A detailed experimental study has been conducted at the National Institute for Occupational Safety and Health’s (NIOSH) Pittsburgh Mining Research Division (PMRD) to investigate the effectiveness of different fire suppression systems on Li-ion battery pack fire extinguishment. Tests were conducted in a well-ventilated container. Two sizes of battery packs (12 V and 24 V) were heated by heater strips to trigger thermal runaway and fire. Water mist with different flow rates, ABC powder, type D dry chemical, and water mist with F500 additives were used as the fire suppression agents. Multiple thermocouples were installed on the battery packs to measure the temperature evolution during the tests. The results indicate that the water mist with F500 additives is the most effective suppressant among the agents tested. Dry chemicals, however, do quench the fire for a moment, but cannot prevent re-ignition of the battery since they do not provide enough cooling. The findings of this paper can be used to develop safer battery fire suppression techniques in mining environments.

Jan 1, 2024

By R. D. Auten

This paper is primarily a report on the process of using oolitic aragonite, as received from Marconi& Ocean Industries, Ltd. without further processing, for a major portion of the raw feed to a rotary kiln producing cement clinker. Oolitic aragonite is a high purity calcium carbonate material, dust free, with the appearance of a course, white sand. It is farmed when under the right conditions of temperature ocean currents, and ocean floor topography. The calcium carbonate will precipitate into small spherical particles on the ocean floor. These oceanic conditions are correct to cause precipitation of the calcium carbonate near Ocean Cay in the Bahama Island chain. The present growing deposit near Ocean Cay is in the billions of tons and is mined by a relatively shallow-operation hydraulic dredge. The aragonite thus formed is en orthorhombic crystaline form of calcium carbonate with a specific gravity of approximately 2.9. At a temperature of 505°C. (940F), the aragonite converts to the hexagonal crystal of calcite with a specific gravity of 2.6 to 2.7. This change in specific gravity weakens the structure of the particles but the individual pieces are still fairly hard. When the material is then calcined at 900°C (1650°F), the particles retain their shape but become soft and will break up under finger pressure.

Jan 1, 1978

Your thoughts on the current status of the global minerals industries? The global economic, technological, social and political changes of the last two decades of the 20th century resulted in the emergence of a restructured minerals industry. This industry is now based on a new cost-cutting philosophy; utilization of modern technology; productivity gains rather than production tonnages; diversification of mineral markets; and globalization of exploration, mining and processing. Quantity and tons used to be the focus. The emphasis today is on remaining competitive in the marketplace by lowering per-unit production costs as much as possible. What factors and trends will impact the minerals industries in this, the 21st century? A number of parameters will impact minerals operations and shape the future sustainability and growth of the minerals industries. Increased demand for minerals will be accompanied by the demand for technical advancements. We will also see a continued emphasis on health and safety, environmental stewardship, and education and training. Let me elaborate.

Jan 1, 2002

By Marion Loomis

Environmental regulation is an ever growing cost to the mining industry. Requirements for such items as air quality modeling, hazardous waste disposal, selenium concentration in water and sagebrush planting consume more of the mining industry’s resources each year. The mining industry is willing to make the necessary financial commitments to assure that the air, land and water resources are adequately protected and restored. However, it is sometimes difficult to explain to management and stockholders why money should be spent on a specific issue when science and common sense indicate it is being wasted. Common sense and sound science should dictate how mining is regulated.

Jan 1, 1994

By Charles H. McGuirk

The movement of iron ore, limestone and-coal on the great lakes involves an intricate transportation network between mine, dock, vessel, railroad and consumer. The system requires that stockpiling be performed at certain points in the pipeline because of the seasonal closing of the lakes, traditionally, this has been accomplished at origin and destination with a substantial cost. Impact to both the shipper and consumer, From the time that the raw material is removed from the ground, expeditious handling and movement to final destination is threatened by a series of potential delays. An initial movement from mine or processing plant to the upper lake port must be coordinated between rail equipment and dock facility, As each vessel is loaded, a schedule must be developed which routes the cargo to an unoccupied lower lake port. However, if the vessel is not delayed by unpredictable weather conditions on the lake, the boat may still arrive at a port congested with other vessels awaiting their turn to unload.

Jan 1, 1973

By F. C. Bond

History The breaking and shaping of rock was one of man's earliest occupations. In the Paleolithic Age long before the dawn of history, arrow¬smiths and the makers of stone axes, hammers, knives, scrapers, spears, and borers were highly respected members of society. In early historical times stones for building blocks, roads, and city walls were shaped by slaves and convicts, who also did most of the mining. However, great artists erected beautiful stone sculptures, while gifted architects planned imposing temples and monuments. Until well into the 19th century nearly all rock was broken laboriously by hand. The small rock required by John MacAdam for his macadamized roads in England in the 1820s was produced by women and boys seated alongside the roadside with hand hammers and legs wrapped with rags. Eli Whitney Blake, a nephew of the Eli Whitney who invented the cotton gin, developed the first successful jaw crusher before 1870. The gyratory conical crusher soon followed. Comparative tests established its large capacity advantage over the jaw crusher, as well as its greater cost for a given feed size. Both types have been in use for more than 100 years. Crushing rolls appeared before 1900. Thomas A. Edison made very large diameter rolls which were excessively long; they failed because of shaft deflection. Various types of disk crushers and edge runner rolls appeared about this time. The older methods of reducing rock were adaptations of other processes. The stamp battery of dropping weights effected crushing by simulating heavy hammer blows; the much earlier arrastre, in which heavy stones were dragged in a circular path over the ore by animal power, came from the prehistoric method of grinding grain between two rubbing stones, while the jaw crusher was adapted from simple squeezing devices. But the tumbling grinding mill was not just an adaptation; it was an invention, because it required thinking on a somewhat higher order-there was no prototype. Its nearest antecedents were probably the small closed tumbling drums used in England more than a century ago for cleaning and polishing small iron castings. The date of the first tumbling mill actually used to grind rock is unknown, but it was later than the American Civil War (1861¬1865). It was almost certainly a closed or batch mill in which rock was placed and rotated until it reached the desired particle size. It could have been operated either wet or dry. The first published refer¬ence to such a batch mill was one introduced by Alsing in England (1870) for the grinding of calcined flints for pottery work.21 There are several rather indefinite reports of grinding mills in the early 1890s, including an overflow ball mill in the Helena and Livingstone reduction plant in Montana which may have been the first of its kind. 11 Many of the first mills, which were called tube mills, used hard rock both as grinding media and as mill lining. The rock used was preferably stone from the Normandy and Danish beaches, when it could be imported. This remarkable siliceous stone was already widely used for grist mills throughout America, and its resistance to wear was greatly respected. The decade of the 1890s saw the development of tumbling mills with continuous feed and discharge and their extension into different industrial uses. By 1895 some experience had been accumulated. Iron grinding balls were being tested and the proper speed of rotation was being determined. The Clark Patent tube mill was featured in an E. P. Allis bulletin of 1890, which may have been the first published description of a tube mill. More than 1,000 Gates tube mills had been built by Allis-Chalmers before 1913. Many of these were used in gold mining, espe¬cially in South Africa. The 5 x 22-ft size was particularly favored for grinding portland cement; the use of tumbling mills in the manufac¬ture of cement began about 1900. A great deal of attention was paid to the mill lining. Metal was then relatively expensive, and the general approach was to trap some of the rock grinding media into mill lining pockets. This rock would then absorb the wear and protect the metal lining. In the first ten years of the 20th century there were several different types of pocketed liners, with different manufacturers advancing the superior claims of their patented arrangements. The Osborne liner, developed in South Africa, was probably the most successful. 21 Another item which attracted much attention was size classifica¬tion within the mill and in ancillary equipment attached to the mill and rotating with it. The Krupp type, with interior screens protected inside the mill lining, was developed quite early in Germany, possibly before 1890. The Dorr reciprocating rake classifier (1907) had not yet been invented, and many strange and impractical screening and classifying devices were proposed. In these unsatisfactory machines the two separate processes of size reduction and classification were combined into one operation. It was many years before recognition came that a machine is most efficient when it is designed for one specific purpose. There was much industrial wastage before the opera¬tions of grinding and classification were finally separated. After 1900 the grinding of portland cement raw material and of cement clinker required large numbers of tumbling mills. Most of the raw material was then ground dry. This was also the heyday of gold mining. The old stamp mills that were used in great numbers for grinding gold ore did not grind sufficiently fine to liberate all of the gold, and the new tube mills were installed following the stamps. After 1910 larger diameter tum¬bling mills with larger grinding media were developed. These could receive the finely crushed ore directly, and the inefficient stamp batter¬ies were gradually eliminated. The Rand in South Africa was the greatest gold producer, treating immense quantities of rather low-grade but consistently free milling gold ore. The first tumbling mills, or tube mills, went into operation there in 1904. They were so successful that within a few years no new stamp batteries were installed in the district, even though old ones continued to pound away until after 1950.3 The early tube mills on the Rand all employed Normandy or Danish pebbles, which had to be imported at considerable expense. Their reported wear was as low as 4 lb per ton ground. 4 Many of the mills were lined with the same tough Danish stone cemented into place, while others used the pocketed steel Osborne liner. It was in 1907 on the Rand that an important test was made using hard native ore for grinding media in place of the expensive imported pebbles. 3 This ore, called banket, did not wear as well as the renowned Danish pebbles, but the cost per ton of grinding was definitely reduced. Many of the tube mills on the Rand were soon grinding with native ore. This was the beginning of the development now called autogenous grinding, in which the ore grinds itself. This is treated under a separate heading. See Subsection 3C, Chapter 4. Gold mining was important in America also, and its grinding history follows that of the Rand. Danish pebbles were replaced by native ore in Santa Gertrudis, Mexico, in 1913, 4 and in Consolidated Gold Fields, Nevada, in 1914. 5 Other properties followed suit. However, it gradually became apparent that the capacity of a given mill could be almost doubled if rock grinding media were re¬placed by cast iron or steel grinding balls. In order to increase plant grinding capacity many rock media mills were converted to iron grind¬ing media in the second decade of the present century. In some mills the motor size was doubled; other mills were cut in two and another motor was provided for the second half. Grinding mills began to assume a more modern appearance. Crushing rolls were formerly much used following crushing in jaw or gyratory crushers and preceding grinding in ball mills. How¬ever, the roll surfaces wore rapidly, and skilled maintenance was required to obtain even wear. Rod mills could take feed of the same crusher product size and reduce it finer. The first rod mill was con¬structed by Mine and Smelter Supply Co. and was tested in Canada

Jan 1, 1985

By Edward I. Erlich

1984 saw the 30th anniversary of a momentous event in Soviet geology-the discovery of kimberlites in Siberia, an event that vaulted the Soviet Union to second rank among the world's producers of both gem and industrial diamonds. There are many legends associated with this story, legends about those who predicted the discovery and those who achieved it in the field. The story told here unfolded during the field campaigns of the 1940s through 1960s, as witnessed by the authors and their companies of an earlier generation. This story illustrates science, chance, and human emotions at work, resulting in a blend of conviction, courage, bureaucratic sniping, and competition for glory. At the same time, it is an illustration of the workings of the Soviet exploration system. In a broader sense, it is the realization of the Russian image-boundless natural wealth, indomitable ingenuity, and the rigid political economic system that permeates the Russian landscape as well as the people. Most accounts of the Siberian diamond saga begin with statements such as, "This discovery confirmed the predictions of...", or "It was a result of predictions of one of the greatest Soviet geologists, Academician V.S. Sobelov...". These are only part of the truth. It had become apparent even in the 1930s that the Siberian Platform contained one of the Earth's greatest Basaltic provinces, described in a monograph by Sobolev...; and at the end of the thirties, G.G. Moor of the Institute of Arctic Geology found alnoites, similar in many ways to kimberlites. At the same time, the famous polar geologist, N.N. Urvantsev found other kimberlite like rocks in the southern Taymir Peninsula, adjacent to the Siberian Platform. In publications describing these rocks, Moor and Urvantsev mentioned for the first time the possibility of finding diamondiferous kimberlites similar to those in South Africa. Unfortunately, Urvantsev spent little time in the field between terms in concentration camps. Moor was considered by his superiors to be no more than a good descriptive petrographer; they suggested to him that his conclusions should be backed up by more highly regarded specialists. Thereupon, Moor asked Sobolev to coauthor a paper with him and this became the widely quoted prediction about diamonds in Siberia. Another early paper should also be mentioned, an unpublished paper found by M.I. Rabkin in the geological archives of the Norilsk Metallurgical Plant, written by Yu. M. Sheinmann when he worked in the concentration camp there in the late forties. This report placed the probable location of yet-to-be-discovered kimberlites within less than 100 km of their correct location.

Jan 1, 1990

By Joseph Clare

It’s not the 1960s anymore. Upgrading wastewater pipelines in the current era demands the latest trenchless technology to minimize impacts. King County Wastewater Treatment Division in Seattle, Washington is designing a nearly mile long Direct Pipe® influent sewer combined with microtunneling to replace a 1960s era trunk sewer constructed along and within Coal Creek and its natural area. Trenchless installation using Direct Pipe® and microtunneling was chosen due to reduce impacts to residential neighborhoods, natural creek environments, and the constraints of topography

Jun 13, 2021

By NARAYAN K. BHAGAT, ARVIND K. MISHRA, Aditya Rana, M. M. Singh

The paper presents an innovative directional controlled blasting (DCB) technique for excavating unstable slopes along the Konkan railway in India without disturbing the traffic. New empirical formulae for small geometry blasting to estimate burden and throw were developed. A unique sequence of firing and excavation with powder factor varying between 0.04 and 0.39 kg/m3, irrespective of the actual free face, was used for rock blasting. The process controlled the throw of blasted material over the track and resulted in a smooth and stable wall. The slope angle was changed from 80–82 to 45–47 degrees, and possible wedge, planar and toppling failures were eliminated. No incident of rockfall and slope failure along these slopes has been observed after the stabilization.

By A. Janwong

Ion exchange technology is becoming more prevalent for metal recovery from low concentration solutions. The products of ion exchange are typically a metal free stream (product stream) and a concentrated metal stream (byproduct). The metals in the concentrate stream are usually precipitated and returned to the process or discarded. The unique features of emew® technology enable metals to be recovered directly from the concentrated stream. The advantage of the IX-emew® combination is the ability to have two product streams: 1) clean metal free solution and 2) metal product for sale. In addition to recovering metals from solution, it is also possible to separate metals from each other and recover more than one metal product. In this paper, examples of IX-emew® combinations are detailed including the recovery of copper, nickel and cobalt from an industrial waste stream, recovery of nickel from a spent electroless nickel plating solution and recovery of cobalt from an hydroxide cake.

Feb 23, 2014

By Nick Chlumecky

INTRODUCTION Column-type supports are used to prevent roof falls in underground excavations. The first individual column supports were made from timber that was cut to fit the irregular heights of mine seams. Because the seam height of the material removed varied throughout the mine, timber posts generally could be used only once. During the I 920s, steel friction props began to appear in British and European mines, and, by the 1950s, thousands of these props were being used. However, the steel friction props were heavy, difficult to install, and difficult to recover. Furthermore, the friction props could not be preloaded, and their yielding behavior was rather erratic. In 1946, hydraulic props were introduced in En¬gland, and, within a few years, they replaced friction props throughout Europe. The first application of hy¬draulic props in the United States occurred in the 1950s, during early experiments with longwall mining. Modern technology and high-production mining procedures have combined to make the use of hydraulic props a very acceptable method of providing temporary heavy-duty support for production areas. In areas such as development headings, where only modest roof loads are expected, lighter-duty jackscrews, ratchet jacks, and light hydraulic props are used. ADVANTAGES OF HYDRAULIC SUPPORTS The acceptance of hydraulic supports has been wide¬spread during the past 25 years, proving their reliability and effectiveness in preventing roof falls. Some of the advantages provided by hydraulic supports are: 1) Individual hydraulic props can be installed within 30 sec, resulting in a minimum exposure of per¬sonnel and equipment to an unsupported roof. 2) Hydraulic props can be preloaded to more than 4.5 t (5.0 st), increasing the frictional resistance between the rock strata. Thus, the roof is kept tight, improving the behavior of the unsupported ground. 3) If gradual roof sagging or bottom heaving im¬poses an irresistible force, the hydraulic prop yields gradually and continues to support the ground. 4) The support capacities of the hydraulic props most widely used range between 10 and 20 t (11 and 22 st). Their support capacities are maintained during yielding to an irresistible force. 5) Hydraulic props can be recovered rapidly. Where no other supports are provided for the roof, as in pillar¬ing operations, the hydraulic props can be recovered by remote means. 6) The length of hydraulic props is readily adjust¬able allowing them to be reused in seams where roof height varies. 7) Studies of mining operations indicate that the use of hydraulic props increases both personnel safety and mine productivity. DESCRIPTION Figs. I and 2 illustrate typical hydraulic props used in mines in the United States. Fig. I illustrates a prop

Jan 1, 1982

By Gary Peach, Khalid Saif Al-Khayareen, Vigil Fernandez, Furqan Hameed

The Musaimeer pump station and outfall project (MPSO) is in Doha Qatar. This technical paper will discuss and explain the three major stages of geotechnical investigation employed. Stage one the tender geotechnical data and how this was used to design the TBM and identify various areas of risk. Stage two was the selection of supplementary geotechnical investigation methodologies. Stage three was the geotechnical investigation by specialist equipment installed on the TBM and providing further data on a real time basis as the TBM was advancing. Analysis of all the data will be provided along with the lessons learned.

Jun 23, 2024

By Steve Kral

Amax Coal Industries Inc.'s Delta Mine is a medium-sized. high-sulfur coal producer that has lived up to the challenges posed by nearly six decades of a highly competitive domestic coal market. The mine now faces one of its biggest challenges - the same one staring at the dozens of other high-sulfur producers in the Midwest - the Clean Air Act Amendments of 1990. The 59-year-old mine, located in the coal fields of southern Illinois, has remained one of the state's oldest continuously operating mines by rolling with the ups and downs of the coal market and by incorporating new technologies and innovative productivity improvements into its operation.

Jan 1, 1993

By Mark E. Emerson

1967 will be remembered as the year the world realized it was running out of silver. In May of this year a new era in tin the history of the white metal was begun as the power of the U.S. Treasury to regulate world .silver markets was staggered by one of the most intense speculative flurries in recent times. In the past few months the price of silver has risen from $1, 29 to over $1.80 per troy ounce and with it have spiraled the prices of a host of silver-bearing consumer items. Legislation has, been enacted to conserve our coinage and meager silver stocks and today large quantities of non-existent silver are trading hands at a fast pace on the commodity exchanges throughout the world. Now that the price of silver has been set loose, forces are in motion to dull the world's appetite for silver. At the same time there is strong incentive to provide greater quantities of silver to satisfy the world's hunger' for the metal.

Jan 1, 1967

By R. Asmatulu

According to Darcy's law, the rate of filtration should increase with increasing pressure drop across a filter cake. In centrifugal filtration, the driving pressure is created by the centrifugal forces applied in the free water on the surface of a filter cake. However, the pressure drop can become negative when the free water surface disappears, which makes it difficult to achieve low cake moistures. In hyperbaric centrifugal filtration, this problem is overcome using air pressure to restore the pressure differential. In the present work, various mineral and coal fines have been subjected to hyperbaric centrifugal filtration tests. The laboratory tests show that the moistures of various mineral fines, such as copper and zinc concentrates, phosphate, talc, kaolin clay, and precipitated calcium carbonate, can be reduced substantially below that achieved by conventional centrifuges. Similar promising results have also been obtained with various coal fines in laboratory and pilot-scale test programs and in full-scale plant demonstrations.

Jan 1, 2012

By L. E. Garner

Aggregate resources should be considered primary factors in urban development. Resource planning is essential because land values, previous construction, or zoning restrictions often preempt exploitation of aggregate deposits within an urban area. Sequential land use practices allow development of areas prior to urban development. Population and aggregate consumption trends in Austin, Texas, indicate that substantial quantities of reserves will be lost to future development. Aggregate materials are present in nearby seas. However, a comparison of transportation and reclamation costs indicates that reclaiming land after mineral extraction can be significantly cheaper than transporting materials longer distances.

Jan 1, 1979

By A. G. Yapo, T. W. Camm

"Mining plays a key role in the development of modern civilization as a source of essential raw materials and provider of essential fuels, producer of jobs and a factor in support of the international balance of monetary payment (Camm, 2014). Professionals in mining locate, develop, design and manage ore deposits in an environmentally safe and profitable manner. As mineral deposits become increasingly scarce, new challenges face the industry. A current trend is to an increased emphasis on underground mining techniques for deeper deposits. Operations are safer now than before as companies understand better their work environment and the importance of mining responsibly.A continual challenge for the industry is accurately reflecting the costs and selling price of ore. An enduring characteristic of mining is the situation where the market typically determines the price of a commodity; the main control a company has on the bottom line is to control the cost of production.An attempt to bring light and clarity to the cost of their business will give a better idea to investors on the true profitability of the mining business. Gold producers face this struggle to accurately reflect the cost of production while also seeking to attract the interest of the investment community (Hill, 2013). In order to have a consistent format to report on their production costs, leading gold producers, through their alliance inside the World Gold Council (WGC), worked on the adoption of a new cost framework: the all-in sustaining cost (AISC) and all-in cost (AIC).Since 1996, the traditional cash cost reporting has focused only on the mining and processing costs incurred in mining an ounce of gold, which included the costs of goods sold (labor, energy, and consumables costs) and royalties (Table 1). But cash cost reporting ignores many important aspects, like sustaining capital, general and administrative expenses and site rehabilitation at the end of the mine life (Whelan, 2013). The cash cost was used to attract many investors into the business. In fact, the high gross margin (sales minus cash costs) has been promoted in past decades by the industry instead of the net or operating margin. As a result, even when the gold price was high, nearly $61/g ($1,900/oz) in August 2011, gold producers were not reporting excessive profits in their cash flow/income statements, to the disappointment and incomprehension of investors (Milstead, 2014). The truth was simply that the other costs omitted in the traditional cash cost were reducing the apparent profits.The disconnect led to a need for more accurate cost reporting in order to win back investor confidence and provide better understanding of gold mining economics. In 2012, the senior gold mining companies, including Gold Fields, Barrick Gold Corp. and Newmont Mining Corp., worked with the WGC to develop a new measure. This resulted in the June 2013 publication of the new framework AISC and AIC, which has been widely embraced by the sector since Jan. 1, 2014 (WGC, 2013).The adoption of the new cost template would have the dilemma of showing the real profitability of gold mine properties, which might alleviate taxes from governments and legislators, but it might also scare off investors toward more lucrative industries if not winning back their confidence."

Jan 9, 2017

By Clement K. Chase, J. A. Eisele, Paul D. Chamberlain, Terry Laverty, Lee Rice, Larry Sevenker, Albert G. Law, Daryl Tweeton, John Peters

"Name your poison," wrote Forbes, Jan. 3, 1983, in an article describing the plight of much of the mineral industry as it entered the new year. "To ask which (mining) segment is better these days is almost like asking which of several stones would make a better life preserver." "The scene has seldom seemed darker or apparently less promising," said the Mining Journal in June 1982. And the Northern Miner described the year as the third in a "3-year drought which has completely dried up (company) coffers." Thus, 1982 became the worst year for much of the mining industry since the Great Depression. Low prices, commodity surpluses, output reductions, layoffs, temporary and permanent closures, and financial losses made headlines as the general recession continued to hurl blows at an industry facing strong foreign competition, increased government regulations, and plummeting market demand. At fault were tight US monetary policies and the resulting high interest rates that, while forcing inflation to slow, also threw the economic wheels of the country into reverse gear. Automobile production, housing starts, consumer durable sales, and capital spending all fell dramatically. US industrial production fell about 8.5% in 1982, with the GNP dropping by 1.7%. Production Value Not a single mineral escaped this recession. According to the US Bureau of Mines, US nonfuel production value dropped for all but four out of 21 metals and 14 out of 44 nonmetals. Production quantities increased for only gold, lead, and zirconium among metals and for only six nonmetals. Total nonfuel mineral production value dropped a whopping 21% from 1981 levels, the largest decline since 1938 and the first since 1971. Production value was estimated at $20 billion. Metal commodities showed heavier losses than nonmetals-37% vs. 12%-because of their link to depressed automobile and construction industries. Prices From peaks in early 1980, prices of precious and base metals, ferrous and nonferrous metals, and virtually every mineral dropped to 30-month lows in June 1982. Gold dropped to $9.64/g ($300/oz) compared to a high of $27/g ($850/ oz). Silver was quoted below 164/g ($5/oz) versus a $1.61/g ($50/oz) high. Copper was offered at a five-year low of $1.22/kg (55.5¢/lb) compared with a high of $3.30/kg ($1.50/lb). Lead went for 53¢/kg (24¢/lb) versus $1.21 (554). Nickel begged for buyers at $4.19/kg ($1.90/lb) compared to a high price of $7.72/kg ($3.50/lb). Molybdenum was available at or below $8.82/kg ($4/lb), down from a high of $44/kg ($20/lb). Cobalt went for $11/kg ($5/lb) versus $55/kg ($25/lb). Adjusted for inflation, increased currency costs, and currency devaluation, many of these prices are the lowest reached in decades. Financial Profits & Losses Low prices severely impacted companies' earnings, turning profits into sometimes disastrous or fatal losses. Robert Norton, director of the US Bureau of Mines, noting there has been a recession in the mineral industry for years, said, "Profit rates as related to invested capital have been considerably lower (for mining) than those of other industries. Mineral industry profits have been subject to greater cyclical swings and debt equity ratios have been significantly greater than

Jan 5, 1983