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By M. P. A. Hames, D. R. Beaumont

INTRODUCTION Legend has it that when Isembard Kingdom Brunel was confronted with the cost and consequences of one of his bridges having failed, he responded cheerfully that the event had saved investors and taxpayers a fortune because it prevented him from repeating the same design at several other locations. To meet the demands of rejuvenating and expanding the transportation system in an era of industrial growth Brunel and his contemporaries introduced bold designs and many innovations. Great advances in design and construction techniques resulted, yet these too had their practical limits as the story tells. In the gold mining industry today we face the same challenge of expansion, yet designers must respond mindful of economic restraints. Is innovation the answer? It has two meanings; to bring in novelties and to make changes. Distinguishing between improvement and novelties, or simply recognizing the benefits and limitations of new ideas over proven technology is part of good design. This paper will illustrate the practical aspects of selecting appropriate solutions to a design problem by examining a variety of examples common throughout the industry. Since a variety of engineering disciplines contribute to the design of a gold processing plant, and each has some old wisdom to impart or new development to boast this paper is divided into the different areas of expertise involved.

Jan 1, 1987

By Peter N. Loncar

Most miners dream of finding a gold mine sometime during their mining careers, but not very often do such dreams come true. On the tenth day of September, 1962, our dream of finding gold came true when the results of the third drill hole were received. This was undoubtedly one of the most exciting days of our lives. Little did we realize then that this was the beginning of a major discovery destined to became one of the largest gold mines in the country. Discovering and mining gold is not entirely new, however, to Eureka. County a old Lynn Mining District in northeastern Nevada. Since 1900 there has been sporadic activity, mostly consisting of small lode mines and placers. These have produced totally about $300,000; and existence of our orebody would probably have remained unknown had it not been for the United States Geological Survey. The USGS extensively mapped the Roberts Mountain Thrust and published a paper indicating that mineral occurred along this fault and in some places was gold bearing. Utilizing this information, our Newmont Exploration geologists located an area in which: drills were brought in to test their theories. By keeping flexible in our thinning and working, we were able to bring a raw prospect to a producing mine with ore reserves of eleven million tons in a short three-year period.

Jan 1, 1965

By E. C. Wilson

The knowledge concerning the lubrication of open gearing for mining machinery has contained many unknowns and at its best has relied to a great degree on a "Rule of Thumb" procedure. It will be within the scope of this paper to explain what we have learned to date and what must be learned in the future. The results in the lubrication of open gearing have spanned the spectrum of unsatisfactory to satisfactory. With the advent of larger mining machinery, we are faced with the necessity of a more thorough knowledge of open gear lubrication. We have avail- able, better steels for the gearing, advanced technology and machinery for cutting proper tooth profiles, and better means of aligning the teeth in the gear train. This has made it possible to transmit more horsepower through the same size gear set than ever before, if we have the proper lubrication to complement the factors previously mentioned. We have set up computer programs which can calculate the data fox the tooth forms, the correct operating center distances, the contact stresses, the bending stresses, and the PVT factor of the gear teeth. This program does not, at the present, have sufficient data available to calculate the type of lubricant which should be used.

Jan 1, 1968

By M. L. Harris

In underground mines, coal dust explosions are prevented by the addition of rock dust sufficient to render the coal dust inert. The National Institute for Occupational Safety and Health (NIOSH) has developed a hand-held instrument that uses optical reflectance to measure the explosibility of a rock dust and coal dust mixture. This instrument is called the Coal Dust Explosibility Meter (CDEM). In this study, NIOSH personnel accompanied Mine Safety and Health Administration (MSHA) inspectors on their routine band surveys in five and three underground coal mines in MSHA District 2 (PA) and District 11 (AL), respectively. While underground, NIOSH personnel and MSHA inspectors used the CDEM to assess the explosibilities of the dust samples. The values of percent incombustible content (% IC) determined by the CDEM agreed well with those obtained later by low temperature ashing (LTA) in both MSHA and NIOSH laboratories. Further, the meter identified some samples as potentially explosible that LTA analysis had found to possess sufficient rock dust for inerting. The CDEM provides more information on the hazards in the mine. Rapid identification of areas with explosible dust mixtures using the CDEM allows for immediate intervention rather than a wait of several weeks for laboratory analysis.

Jan 1, 2008

By D. Parks, A. Miller, M. McNinch, R. Jacksha, H. Nickerson

Each year hundreds of mine workers are involved in machinery-related accidents. Many of these accidents involve inadequate or improper use of lockout/tagout (LOTO) procedures. To mitigate the occurrence of these accidents, new safety methods are needed to monitor access to hazardous areas around operating machinery, improve documentation/monitoring of maintenance that requires shutdown of the machinery, and prevent unexpected startup or movement during machine maintenance activities. The National Institute for Occupational Safety and Health (NIOSH) is currently researching the application of Internet of Things (IoT) technologies to provide intelligent machine monitoring as part of a comprehensive LOTO program. This paper introduces NIOSH’s implementation of an IoT-based intelligent machine monitoring system to improve safety during operation and maintenance at a concrete batch plant. INTRODUCTION Of the hundreds of machinery-related accidents occurring every year in the mining industry, incidents involving stationary machinery at surface mines continue to be amongst the most frequent [1]. A National Institute for Occupational Safety and Health (NIOSH) study showed that the majority of fatal accidents involving stationary machinery at surface mines occurred at sand and gravel (38%) and stone (26%) operations. Of these accidents, entanglement in conveyor components were the most common cause of fatal accidents (48%) [2]. The same study stated that one-third of these accidents involved improper lockout/tagout (LOTO) procedures as a contributing factor. The U.S. Mine Safety and Health Administration (MSHA) acknowledged this problem, stating in a recent request for information (RFI) [3]: “Since 2007, there have been 17 fatalities related to working near or around belt conveyors, of which 76 percent were related to miners becoming entangled in belt drives, belt rollers, and discharge points. Factors that contribute to entanglement hazards include inadequate or missing guards, inadequate or an insufficient number of crossovers in strategic locations, and/or inappropriate lock out/tag out procedures. Systems that can sense a miner's presence in hazardous locations; ensure that machine guards are properly secured in place; and/or ensure machines are properly locked out and tagged out during maintenance would reduce fatalities [3].” In response to this problem, NIOSH’s Spokane Mining Research Division (SMRD) is exploring the potential application of Internet of Things (IoT) technologies to provide cost-effective intelligent machine monitoring systems for improved worker safety [4, 5]. SMRD partnered with Central Pre-mix CRH Company (Central Pre-mix) to develop and install a proof-of-concept wireless IoT solution to monitor machinery and conveyors during operation and maintenance. The primary goals of the system were to provide real-time monitoring of access points and facilitate the planning and execution of LOTO procedures

Jan 1, 2019

By Samuel M. Brock

Problems related to strip and auger coal mining have grown with the development of the industry and the economy. New technology has produced equipment that has made mining by surface methods not only highly productive, but potentially highly destructive of water resources and natural environments. On the other hand, growth of the economy has produced an increased demand for clean water, and created new demands for amenity values that natural environments provide. Thus, opposing forces have created conflicts in resource use. And these conflicts have made surface mining highly controversial. Resolving the controversy will require the solving of complex economic and social problems. The essence of the economic problem created by surface mining is that, in the absence of proper regulation, substantial costs resulting from the process are borne by the public rather than the mine operator.

Jan 1, 1968

By Donald J. Donahue

Ladies and Gentlemen: As we begin these three crowded days of technical and economic discussion of problems faced by mining and metallurgical engineers, it seems appropriate at this Keynote Session to consider the future of this industry from which we derive our livelihood, It is also appropriate at this international meeting to view our industry on a world-wide basis. First, let us assess the world's future needs for minerals - the needs which it is our industry's task to meet. Next, let us look at what supplies of minerals may be available to meet those needs. I will speak of this first in terms of the physical availabilities of minerals. Finally, we can consider some of the social or institutional factors which will condition the world's mining industry as it goes about its task of discovering, developing, producing, and delivering the minerals needed to meet the world's demands. Let me give you a foretaste of my conclusions. First, future world demands upon our industry will be enormous, eclipsing anything that we have known up to this point. Second, there is strong evidence that our earth's crust contains a sufficient physical quantity and variety of minerals to meet forthcoming needs for as long a period ahead as one can envisage.

Jan 1, 1974

By S. K. Kawatra

Outokumpu Electronics has designed a new on-line coal slurry ash analyzer, based on an instrument developed at Michigan Technological University. The primary goal was to build an accurate instrument at the lowest possible cost. The instrument determines ash content from measurements of x-ray backscatter, iron Ka fluorescence, and low-energy y-ray absorption. It is capable of measuring the ash content with a standard error of 1.1% ash over an analysis range of 9-21% ash and 7-22% solids. The analyzer was tested on coals from United States, Poland, Great Britain and the USSR.

Jan 1, 1992

By Theodore J. Williams

Computer control has been one of the fastest moving and most glamorous fields of industrial development in the past decade. A review of this period shows some truly remarkable accomplishments in both system development and applications. In addition, work now under way promises results which will continue the rate of progress of the past. This paper will review the history and status of the field of computer control and point out the major breakthroughs which have occurred. It will analyze the present trends and extrapolate them to predict the early future developments in the field.

Jan 1, 1968

By R. J. Hickson

From 1993 through 1999, Cyprus Amax Minerals successfully completed eight major construction projects around the world. Six greenfield mines were brought into production, an ongoing operation was completely modernized and an environmental issue was appropriately remediated. The projects stretched over three continents: from arctic Russia to the Atacama Desert, from sea level to an elevation of 4,900 m (16,00Oft), from city suburbs to remote wilderness and from a low of US$130 million to more than US$ 1billion. The operations included open-pit and underground mines, mill and leach facilities and involved gold, copper, molybdenum and coal. The diversity of these projects inspired Cyprus Amax to create a "best-practices” project-management protocol to steer corporate expansion in the new millennium. This paper summarizes these best practices, while highlighting the project-management pirfalls to avoid.

Jan 1, 2000

By Kwame Awuah-Ofei, Sisi Que, Shaochun Yuan, Yumin Wang, Ziwei Ding

This research sought to facilitate improved stakeholder analysis in mining by providing further insights into the preferences of local community members using discrete choice theory. While recent research has demonstrated the usefulness of discrete choice theory in mining stakeholder analysis, no previous work has examined which discrete choice model (DCM) is most suitable. This paper provides a research note on a case study in a mining community that was performed to compare three DCMs. After a thorough examination of the benefits and deficiencies of all models, this study concludes that the conditional logit model stratified by questions is the most useful DCM for mining stakeholder analysis. The recommendation is based on the usefulness and accuracy (ability to match the survey data) of this model.

Jul 25, 2022

By A. E. Koski

This paper describes the implementation of specialized software in mine planning at the Cleveland-Cliffs’ managed Empire Mine on Michigan’s Marquette Iron Range. The application puts together years of mining experience on the eastern end of the Marquette Range beginning in the early 1960’s. The Empire Mine, in its thirty-fifth year of production, uses the software to model a complex and highly variable low grade magnetite orebody, capturing the economics of mining and processing to the final product. With special attention given to geostatistical methods, the software is used for all geologic modeling, ore reserve estimation, ore control, pit design and short and long range planning.

Jan 1, 1999

By Manuel Bernales, Aldo Leon, Alexandra Carlier, Bern Klein, Andre Xavier

Mining companies and governments at both the local and national levels recognize that Participatory Environmental Monitoring and Surveillance Committees (PEMSC) are necessary mechanisms for meaningful engagement at the community level. In many cases, PEMSCs are established as volunteer initiatives by mining companies or by the mining communities themselves. In Peru however, they can also be recommended by the government as way to address social conflict. Most PEMSCs are launched while a mine is in operation and have the objective of monitoring both water quality and quantity. Many established committees are currently evolving and adopting a more comprehensive approach, as well as expanding their initial scope from a river or micro-basin focus and watchdog agenda, to a broader regional integrated resources management view. This paper examines the origins of Participatory Environmental Monitoring and Surveillance Committees in Peru. It also discusses the typology of these committees, and the scope of their work. Furthermore, it looks at the challenges faced by these committees, as well as existing opportunities for mining companies, governments, and civil society. Finally, this study presents a governance model that could contribute to the long-term existence of these committees. This discussion is further informed by the results of a national workshop that took place in October 2016 in Peru, in which over 200 representatives from 22 monitoring committees, government and mining companies participated.

Jan 1, 2017

By T. W. Camm

"Search Amazon.com using the keyword “leadership,” and you are rewarded with a list of over 144,000 titles. There is no shortage of books and articles, many of them well written, with excellent ideas. So why is there still a constant cry for effective leadership in organizations? Often, the person in charge has personal blinders that prevent them from seeing or understanding how to implement the newest leadership idea or method. Either deliberately or subliminally, there is a disconnect from learning about leadership, and actually modelling and implementing what has been learned. Some current research in leadership theory can provide insight and tools to address this issue. INTRODUCTION Let’s start with a discussion of terms. Pseudo is defined by Webster (2015) as “Being apparently rather actually as stated.” Synonyms include affected, assumed, contrived, fake, false, phony, pretended, and artificial. Antonyms for pseudo provide additional clarity, especially when we consider terms normally associated with effective leadership: genuine, natural, unaffected, unforced. A similar type from my world of academia is a pseudointellectual, “A person exhibiting intellectual pretentions that have no basis in sound scholarship” (Dictionary.com, 2015). This is a person pretending to have an interest in intellectual activities for status; a fraudulent intellectuality. The thought of applying the term pseudo to leadership first occurred to me while reading Power and Innocence by Rollo May (1972). In discussing the dynamics of power, and how the innocent are often victims of the exercise of power, especially the more aggressive and destructive types of power, he saw two types of innocence. The first he called authentic innocence, which he described as a childlike clarity that carried into adulthood. The second type he called pseudoinnocence, a type of naïveté that makes a virtue of powerlessness, weakness, and helplessness; being more childish than childlike (p. 48-50). Just as there is the potential for pseudoinnocence and pseudointellectuals, it is also possible to experience pseudo leadership. (I hope the gentle reader is not troubled by my decision to use pseudo leadership as two separate words, in contrast to the use of compound words for pseudoinnocence and pseudointellectual cited above. Since there is no official definition of pseudo leadership, I have exercised my author’s prerogative to treat it as two words, both because I think in this particular application this makes the most sense, and also I think it is easier to read). As we will see, there are numerous theories applied to leadership. What is so troubling to many of us in organizations, there are a myriad of “leaders” in companies espousing pet theories, but very few instances where the actions of these individuals match their words. This is a particularly important problem when we look at the effect this has on the day to day operations of a mine, and where effective leadership (or its absence) can have a profound impact on both productivity and safety."

Jan 1, 2016

By Doug Harding

The Niagara Tunnel Project (NTP) is a 10.4-km- (6.5- mile-) long, 14.4-m (47.5-ft) bored tunnel that will run under the city of Niagara Falls from the Upper Niagara River to the Sir Adam Beck power station. The completed project will enhance the capacity of the Sir Adam Beck power station by adding 500 m3 /sec (17,657 cu ft/sec) of water through the tunnel. The project uses the world?s largest hard-rock tunnel boring machine (TBM) at 14.4 m (47.5 ft) in diameter to excavate the tunnel. Features of the project include the use of a high performance (HP) main beam TBM, state-of-the-art ground support and tunnel logistics systems. A continuous conveyor is used for muck transport from the TBM to the disposal area In June 2004, the Ontario government announced that Ontario Power Generation (OPG) had been given approval to proceed with the third tunnel under the city of Niagara Falls ? the first two tunnels were constructed in the 1950s using drill-and-blast techniques. The third tunnel, appropriately named the Niagara Tunnel Project (NTP), consists of a 10.4-km- (6.5-mile-) long TBM-bored, concrete-lined tunnel with a finished diameter of 12.5 m (41.1 ft). In August 2005, OPG the selected of Strabag of Austria, one of the largest construction companies in Europe, as the contractor to build the NTP at a price of C$600 million. In September 2005, Strabag selected The Robbins Co. of Solon, OH to design, manufacture and deliver a new 14.4- m- (47.5-ft-) diameter high performance, state-of-the-art main beam hard rock TBM to be used in the excavation of the tunnel. To meet the aggressive construction schedule as requested by OPG/Strabag, the TBM needed to be sup-plied as ready-to-bore within a 12-month period after the contract was awarded to Robbins.

Jan 1, 2008

General. Data for the operating information given in the 15 tables in this chapter was obtained from voluminous questionnaires sent to over 100 operating companies in 1972. There has been a considera¬ble change since then in supply and power costs and many companies have had expansions or revisions since that time, so it must be realized that information is valid for the year 1972. This is true except for the three new properties of Sacaton, Metcalf, and Pinto Valley. These three operations started up since 1972 and all information for them was obtained in 1975. The questionnaires were sent to all major copper properties throughout the world as well as to many smaller units and to some mines that had complex or unusual conditions. Properties for which no information is given did not submit completed questionnaires. Several operations were unable to supply information requested be¬cause of company policy prohibiting it. However, data is presented for 75 different operating properties. The reference number of the left-hand column is the same for all 15 tables of data. If the company had several operating properties as of 1972, then subsequent properties use the same number but a different letter. For example, Anaconda's property at Butte, Mont., is IA, whereas Anaconda's (now Anamax) Twin Buttes property in Arizona is IB. Table I gives general data for the properties including exact loca¬tion, milling rate, pertinent assay values and recoveries, and a brief listing of ore and gangue minerals. It was not possible to obtain any more information from the properties in Chile except that given in Table I. Crushing. Crushing plant operating data is given in Table 2. This table gives data on the crushers, feeders, and screens used at each property. The data obtained on feeders was confusing, but, rather than completely eliminate this information, it was decided to report it as given. The confusion lies only in the description of where the feeder is located. Where a primary feeder is listed it was not possible to determine if this feeder was on primary feed or primary discharge. For secondary feeders it is known that the feeder listed usually is feeding the secondary crushers, but at some properties it is handling the secondary crusher discharge. The same reasoning holds true for tertiary feeders-they handle either tertiary feed or discharge. This table contains a voluminous amount of data. A column giving tons per day per square foot of screen area would have been very informative, but some properties included circulating load in the feed rate and others listed new feed only, so calculations were meaningless. Autogenous Mills. The use of autogenous or semiautogenous mills for any property must be given serious consideration in the future. Table 3 lists data for four properties that are fully autogenous and four more semiautogenous mills that use balls to supplement the chunks of ore. This method of grinding is especially applicable when the ore is of such a nature that crushing problems would be severe, such as when ore is wet or sticky or contains a lot of fines. Paradoxically, it should also be considered when ore is tough and hard and blocky because then the competency of the ore means it can serve well as the grinding media. Where the ore varies greatly in hardness, as at Cyprus Pima and Lornex, semiautogenous grinding has been especially beneficial with capital costs and operating costs both 10-20% lower than could be obtained with conventional crushing and grinding. Rod Mills. For a great many years the standard milling operation used two- or three-stage crushing followed by open circuit rod mills and then ball mills in closed circuit with classifiers of some kind. A surprising number of properties crush to the fine size of about 3/8 in. and then use ball mills only, in closed circuit, with no rod mills. It is difficult to say whether rod mill-ball mill circuits or ball mill only is the best. One can be certain of two things: (1) the argument will go on for a long time and (2) for some mills one method obviously was superior over the other. As ball mills of 14, 15 ft, and larger came into use, more properties like Duval Sierrita (16b ft diam by 19 ft long) and Bougainville (18 x 21 ft) were built with single-stage ball mill grinding. Although there are larger rod mills used, especially in the iron ore industry, the largest rod mills on copper ore are at Twin Buttes (14 x 18.5 ft) and at Gibraltar (13'A x 20 ft). Table 4 lists operating data for rod mills. If a company is listed in Table I

Jan 1, 1985

By James R. Aggson

This paper summarizes the research effort that was conducted as part of a cooperative agreement between the U.S. Bureau of Mines, Denver Mining Research Center and the Pittston Company. The objective of this investigation was to further the understanding of the floor heave ground control problems that have plagued underground mining of the Beckley coalbed in southern West Virginia. Floor heave is both economically and structurally undesirable. Floor heave is accompanied by a redistribution of stresses and loads that are associated with an underground opening. This redistribution of stresses may cause roof or pillar problems that otherwise would not have occurred. The floor heave that occurs in the Beckley coalbed is not cons1dered to be caused by "squeezing" or plastic flow of the materials involved. The "squeezing" type floor heave is normally associated with relatively weak floor members that contain significant amounts of clay mineralization. The floor members in the Beckley coalbed are competent, relatively strong materials which fail in a manner that can best be described by the term "buckling." This buckling-type failure is indirectly related to the time-dependent deformation properties of the materials involved, but is considered to be more of a slender column, or panel, type failure than a "squeeze" or "flow"-related failure. The Beckley coalbed has had a history of floor heave ground control problems. The Glen Rogers mine, which opened in the 1920's, experienced extensive floor heave. In a report dated April 1929, James P. Keatley of the West Virginia State Department of Mines described the floor heave in the Glen Rogers mine. Several observations listed in the Glen Rogers report that appear to be consistent with current observations follow: 1. Water plays no apparent part in the floor heave process. 2. No evidence of gas has been found in the floor. 3. The thickness of the overburden, which varies from 183 to 396 m (600 to 1300 ft), has no relationship to the floor heave. In the conclusions of the 1929 report on the Glen Rogers mine, Keatley states, "A statement in brief as to the cause (of floor heave) would lie that an undetermined natural condition doubtless augmented by former and present mining methods causes the bottom to heave." As this report will show, Mr. Keatley's insight into the problem was most accurate. The "undetermined natural condition" is the existence of a biaxial, horizontal, compressive stress field. This stress field is in excess of that which would be expected from gravity loading. This stress field and the material properties of the floor rock combine to cause the floor heave that has been experienced. The floor heave that occurs in the Beckley seam generally occurs as arching, with a tension fracture, near the center of the floor span or as a break near the rib followed by vertical deflection (of the floor) at the rib and sloping of the floor across the entry. Examples of the floor heave are shown in Figures 1 and 2. The two types of floor heave are merely different manifestations of the same basic failure mechanism. When the entries experiencing floor heave were identified on a map of the mine under investigation, it was apparent that there was a relationship between the floor heave and the direction of the entries. The main entries, which are used for ventilation and haulage, experienced the majority of the floor heave. This directional relationship suggested a directionally related loading mechanism, or more specifically, a biaxial, horizontal stress field that exceeds what would be expected by gravity loading. Since the main entries were oriented at a bearing of N25oW, it was hypothesized that the maximum compressive component of the horizontal stress field was at 90° to these entries or at a bearing of N65oE. An in Situ testing program was developed to test this hypothesis and investigate the floor heave problem.

Jan 1, 1978

By E. Hughes, D. Akers, D. Stopek

The Upgraded Coal Interest Group (UCIG), focuses on clean, low-cost options for coal-based power generation via pre-combustion, co-firing and reburn options. Its mission is to preserve and expand the economic use of coal for energy. By reducing the fuel costs and environmental impacts of coal-fired power generation, existing units become more cost effective and thus new units utilizing advanced combustion technologies are more likely to be coal-fired. Two great forces are reshaping the power generation industry, the Clean Air Act Amendment and deregulation of generation. The Clean Air Act Amendment is forcing change by making it necessary for power producers to plan for reducing emissions of sulfur and nitrogen oxides and possibly trace elements. At the same time, deregulation of generation is forcing utilities to focus their attention closely on the short term impact of any change on cost of power. Fuel is a utility's largest cost element; maximum fuel flexibility will be a utility's best weapon in an environment of rapid change. In a regulated environment, a utility was limited in how involved he might get into fuel supply, in a purely deregulated environment he need only be guided by the impact on the bottom line. It is clear that these two forces will promote a close look at factors such as coal upgrading which can have an impact on the availability of low sulfur coal or emission of NOX and trace elements.

Jan 1, 2000

By B. Kraus

Many of us who have interacted with senior executives from leading oil and gas companies over the last few years on the subject of HSE performance have observed a marked shift in their engagement on this aspect of their business performance. There seems to be a shared impression that HSE performance will have markedly increased impact on their businesses going forward. On the back of this very real concern, many are taking material actions to secure a step change in their safety and environmental performance: hiring respected mainstream operational personnel to lead their HSE function; investing in capacity/skills development for HSE professionals to increase their effectiveness in addressing the needs of the business; taking a hard look at the efficacy of established management and audit programs (too much paper, not enough results?); investing in information management systems so they can have access to real time reliable performance indicators; and, critically, initiatives to reduce accident statistics (especially focused on fatalities and contractors? activities) and deliver meaningful reductions in their environmental footprints. Underpinning all of these actions is a clear sense that substantial, very well-intentioned activity and investment in HSE aspects of the business has not been hitting the mark and yielding too little return in terms of performance improvement. The very serious recent events on the US Gulf Coast and at a refinery in the US Pacific Northwest have added fuel to this fire. The need for approaches which will secure a step-change in performance on the front line in the global oil and gas industry has never been greater.

Jan 1, 2011

By William Mayrsohn

INTRODUCTION The net smelter return (NSR) calculations made on various smelter-refiner alternatives, is usually done by taking the gross metal value less metal deductions, smelter-refiner charges and transportation-insurance costs. An important further step in the calculations is the financial charges imputed by refining time, transportation delays, to the time gold is returned (if tolled) or paid for if bought by the refiner. Metal that is priced in advance of payment also requires a forward premium that the mine may or may not be getting. This is a hidden cost that is often omitted from the calculations. Segmentation of each of the above costs are vital to see where improvements can be made through negotiations, better choice of metal pricing or transportation alternatives. BASIC NSR CALCULATIONS SMELTER-REFINER CHARGES Payable Metals - Treatment Refining Charges: Since these can vary from one smelter to another, the effect of a $25 per ounce price increase/decrease should be calculated and kept in mind. This effect is compared to differences in refining/treatment charge and a total smelter/refiner cost on a cost per ounce of dore, gold, or a dry ton of concentrate. Transportation - Insurance: Research has to be done on transportation alternatives perhaps with some assistance from the smelters, railroads or trucking companies. For dore, the U.S. postal service is viable and inexpensive. For railroads, deal with the regional office ie., B&N El Paso, if production warrants regular bulk shipments. Spot rates tend to be higher. A small mine producing concentrates usually goes to the nearest smelter due to extremely high transportation costs. Here is where a refiner can help. Insurance-Quotes for rates on dore/ concentrates are easily obtainable, but the mine has to shop for the best rates. Your insurance broker is the best source of this information. Differences between Mine and Smelter/Refiners Metal losses can be caused by the following: - Concentrate dry weight differences caused by moisture determination or faulty scales (often at the mine). - Sample bias by poor preparation practices on either side ie., grinding of the sample removing gold; or a poorly mixed concentrate. Dore bullion has no such difficulties.

Jan 1, 1987