Search Documents

By V. O. Tenorio, A. M. Sanzana

"INTRODUCTION This report summarizes a research about mines which are transitioning from surface to underground mines. It is a guide to make strategic decision in these increasing amount of mines. Capital and operating costs are linked with major strategic decisions in the exploitation of an ore body. This is the reason to analyze costs related to this transitioning world trend. There are multiple reasons for transitioning from Open-Pit (OP) to Underground (UG) mining. The primary economic incentive for going UG is that the cost per unit of ore from OP mining eventually exceeds that from UG extraction. This is due to the excessive amount of waste that must be extracted when the depth of the pit increases. In addition, the reduced footprint of UG operations contributes to diminish the environmental impact on the surface. Furthermore, it becomes more difficult to find new, easily accessible ore deposits. Then, a cost model helps to guide strategic decisions in the transition from OP-to-UG mines. Objectives • Propose a methodology to guide strategic decisions in the transition from OP to UG mining. • Create an integrated cost model based on existing OP and UG individual cases. • Identify and characterize a group of mines transitioning from OP to UG. • Analyze operating and capital costs of a particular transitioning from OP to UG mine. MAIN CONCEPTS Open Pit Mining (OP) The main decisions in OP mines are: Cut-off grade, Stripping Ratio (SR), equipment size, stockpiling, pushback sequencing and processing capacity. The stripping ratio is measured as the tonnage of waste required to be removed to reach and extract one tonne of ore. The material extracted from an OP exploitation can be classified as waste and ore. This classification depends on the cut-off grade. The cut-off grade indicates the minimum amount of material with economic value in a block. The waste from the mine is going to the waste dump and the ore is going to stockpiles where will be store and then going to the processing plant (leaching or concentrator). The waste of this process is going to the tailing pond big pools. And the product is sell in the market. Another important issue is the mining capacity which is going to define the investment in mining equipment. Underground Mining (UG) The first decision to be made in order to open an underground mine is selecting the mining method. Caving methods are the more productive and have lower operating costs. There are three caving methods: Block Caving (BC), Panel Caving (BC) and Sublevel Caving (BC). The access development could be an horizontal adit or a straight or downspiral decline. A shaft could be used for inclined or vertical access. Other key issues are: equipment capacity, cut-off grade and production sequencing."

Jan 1, 2016

By Christian F. III Baiz

Introduction A new mining agenda is before us. Born of government policies and world economies, the years ahead will show reduced growth. Metals, mining, and most other natural resource industries are inflation dependant and capital intensive. For these, a long period of contraction of outmoded and costly capacity will evolve. In some cases, this will be supplanted by new, lower cost capacity. But this will occur only if the cost of production - including cash operating and debt service costs - comes in at or below current market conditions. The industrial outlook for metals mining can be characterized as bearish. A US bank economist said mining companies planning their five-year forecasts should take current market conditions and straight-line them to the end of the decade. With low growth and low inflation, the real price of metals will remain flat or decline slightly. As a result, capital funding will be problematic. The low-cost producer will succeed. That means only the producer with low cash costs and low principal and interest costs per unit of production, will succeed. Gaining a perspective One must look back 30 years to see the evolution of the capital markets, for metal mine financing. This period can be divided into two economic periods. The 1950s were a time of stable economics. Mining companies earned and reported good profits. They had good corporate creditworthiness. In essence, mining companies of the 1950s were highly self-reliant. When equity infusions were needed, they were easily obtained. Financial management kept long-term debt low. Fixed rate, long-term financing was readily available in the long-term bond markets. The commercial banks of the 1950s were rarely used by the mining industry. When necessary, mining companies went to the banks for short-term financing - the kind that was needed for working capital requirements. Changing rhythms In the old rhythm there was an orderly market. Even into the mid-1960s, 75% of world annual copper production was controlled by eight companies: two in the UK, one in Belgium, and five in the US. During times of poor market demand, these producers would control supplies to the market. They took their losses out of retained earnings. Capital was easily restored during the ensuing good times. The new rhythm called for copper to be an economic means to a political end. Third World copper producers brushed aside the market fundamentals of commodity economics. Yet, the political solutions of these countries - their lack of response to the market - have seldom achieved their original objectives. Each commodity has its own old and new rhythm. Aluminum may have a similar rhythm, coming 10 to 20 years later than copper. By the late 1960s, changes were occurring. Inflation was on the rise. Ore reserve quality was falling. As a result, capital expenditures were necessary to maintain existing output. These costs created an increase in corporate leverage, thus adding to inflation and rising interest rates. Indicators A comparison of the gross national product (GNP) deflator index, consumer price index, and the metal mining deflator index is instructive. (Fig. 1 and Table 1). With 1972 equal to 1, note that the metal mining deflator reached its lowest point in 1967. From that point, the metal mining deflator has accelerated severely for 16 years. Only two minor downturns occurred during the business recessions of the mid-1970s and the early 1980s. In essence, Fig. 1 shows that while GNP has grown modestly, a miner's dollar in 1972 would require $3.48 in 1980. This is an almost 17% compounded growth rate over that eight-year period. Beginning in the late 1960s, for the first time in mine financing, the risk of success shifted from the corporate balance sheet to third parties. Limited-resource financings were taken up by banking syndicates that accepted certain of these risks. The lender needed to be well acquainted with the types of risks to be evaluated. These include resource quality and quantity, construction and completion, capital and operations costs, market risks, force majeure, and political and exchange rate risks. Project financings became the basis whereby mining companies were able to maintain their borrowing capacities. In essence, the lender was willing to share some of the project risk while only receiving lenders' returns on these investments. Over the last two decades, mineral project financings have become highly complex transactions involving multicurrency, multi-

Jan 8, 1985

By Steve Skelhorn

Over the recent years, major advances have been made in design of precast concrete segmental tunnel liner. Starting from basic, parallel sided rings, we now have state of the art, universal rings incorporating custom tapers to suit individual requirements. At planning stage, the ring diameter is normally fixed and the ring geometry is one of the first items to be assessed. Obvious factors such as TBM layout and curve radius can constrain geometry; however, there others factors that should be considered in order to optimize production. This paper takes a look at the history of the segmental rings and criteria for ring selection, including: general ring geometry;; individual segment geometry; ring taper, and ring width. This paper also explores optimization of ring with a focus on constructability.

By G. Biles, K. Loughran, R. Anand

The Eskay Creek Mine, a high-grade gold and silver underground mine in northwestern British Columbia started operations in late 1994. For the first three years of operation, ore was crushed to minus 2 inch; blended to satisfy smelter terms and direct shipped to smelters in Japan and Canada. Before commencing the above operations, preliminary evaluations had indicated that an extremely complex metallurgical facility, requiring a large capital investment, would be required to recover the precious and other economic metals. Subsequently markets for raw ore were identified and underground mining and ore transportation operations, at a nominal production rate of 300 tonnes per day, were commenced. Exploration diamond drilling in 1995 and 1996 discovered additional lower grade mineralised zones, which are less economic or uneconomic as direct shipping ore. Test work demonstrated that these lower grade zones could be upgraded to marketable concentrates in a simple flotation mill. The mill was built in 1997 and has been in operation since late 1997. The mining rate now has increased to 400 tonnes per day including 250 tonnes per day of the direct shipping ore and 150tonnes per day of the mill ore. Prime Resources Group Inc. wholly owns the Eskay Creek Mine. Homestake Canada Inc. owns 50.6% of Prime’s shares and manages and operates the mine on Prime’s behalf. This paper discusses the mining and milling operations as well as ore shipment and smelter contracts' administration.

Jan 1, 1999

By A. Cole, F. Porretta

Barrick Gold recently implemented an oxygen roasting process to treat carbonaceous ore from its Goldstrike property in Nevada. One of the key project challenges was the design of the roaster gas cleaning system, which was driven by the requirements of a strict air permit and the need to achieve very high reliability. The roaster gas systems include multiple stages of wet particulate collection, a dual alkali SO2 scrubber, mercury scrubbing, CO oxidation and NOx reduction. This paper describes the gas system, the influence of regulations on project implementation, and performance of the system.

Jan 1, 2002

By K. Burke, G. Zhan, A. Mayer

A cover with capillary barrier effects (CCBE) is being constructed on the AA Leach Pad at the Barrick Goldstrike Mine site near Carlin, Nevada. The purpose of the cover is to eliminate/minimize infiltration of meteoric waters into the leach pad. Laboratory and numerical analyses indicate that Carlin Formation siltstone (TCS), a locally available material, has the necessary hydrologic characteristics when placed on the leach pad to act as a CCBE. A pilot study has been conducted on a small-scale test cover placed on the AA Leach Pad to examine the cover performance under irrigated conditions. The preliminary test results demonstrate that the designed cover is capable of preventing meteoric water infiltration.

Jan 1, 2001

By J. R. Kunkel, V. Lishnevsky

At mine sites, the operational and required storage volumes of solution and water storage ponds and reservoirs are usually calculated based upon a water-balance approach. Many climatological variables including precipitation, air temperature, solar radiation, pan evaporation and relative humidity along with operating parameters, are used in the water-balance model. The water-balance model often seeks to find a “critical period” of wet or dry climatological sequences which result in a “maximum” pond storage volume or water demand. The problem with this approach is that the designer usually does not know when the project will come on line in relation to the historical record. To avoid this pitfall, we use a more robust approach. In the more robust method, the water-balance calculations begin in each year of the historic climatological record. This method results in the same number of water-balance runs (or realizations) as the number of years of climatological record. Results of this type of analysis guarantee that the critical period or maximum required pond volume will be found if it is assumed that the historical climatological record repeats itself or if a synthetic time series is used. In addition, this method permits calculation of the likelihood (probability) that a given pond volume will be equaled or exceeded in any given month of the operational life of the facility. In this paper, the results of the sizing of a heap leach pad solution pond are presented along with the probabilities of a given solution pond size being equaled or exceeded based on the robust water-balance approach.

Jan 1, 2002

By P. C. Fletcher, E. Kaya

The Bond grindability testing procedure has been standardized to measure the same grindability values, i.e. Bond work index (BWi), for the same ore when tests are performed in different laboratories or by different operators. This is accomplished by the standardization of mill dimensions, tumbling speed, grinding ball charge weight and distribution, sample ore charge weight in the mill and operating practice. The results of this investigation reveal that the Bond work index grindability values may differ substantially with different standard Bond ball mills. This paper will review the results.

Jan 1, 2002

By A. Juganda, Jr. Bogin, S. Saki, R. Gilmore, J. Brune, J. Grubb, S. Lolon

"In longwall mines, atmospheric or barometric pressure fluctuations can disturb the pressure balance between the gob and the ventilated working area of the mine, resulting in a phenomenon known as “gob breathing”. Gob breathing triggers a gas flow across the gob and the working areas and may result in a condition where a methane accumulation in the gob flows into the face area forming an explosive mixtures. This paper discusses results of Computational Fluid Dynamics (CFD) modeling carried out to analyze this phenomenon and its impact on the explosive mixture development under a bleeder-ventilated longwall gob panel scheme. Modeling results indicate that the gas inflow and outflow across the gob and the formation of Explosive Gas Zones (EGZs) are directly affected by the barometric pressure changes. Methane gas and EGZs in the gob expand out toward the face and bleeder entries during the falling barometric pressure. Where methane zones interface with mine air, EGZ fringes may form along the face and in the bleeder entries. When the atmospheric pressure increases, an ingression of oxygen into the gob is observed that can also increase EGZs in volume. The findings from this study help assess the methane ignition and explosion risks associated with fluctuating atmospheric pressures. INTRODUCTION Methane explosions continue to be a daunting risk for underground coal miners, although the number of related fatalities and injuries in the U.S. coal mining industry has steadily decreased since the establishment of the U.S. Bureau of Mines in 1910. Still, the consequences of a methane explosion are often disastrous with multiple fatalities and property damage often leading to permanent shutdown of the mine. Methane is formed during the coalification process and is released from the coal seam to the mine atmosphere when the coalbed is disturbed by mining or natural causes such as earthquakes. If not properly diluted by appropriate mine ventilation, this methane may accumulate in the active mine workings and gob areas. Researchers at the Colorado School of Mines have developed numerical models showing how and where explosive methane may accumulate in gob areas. Historical mine explosions appear to show a connection between mine explosions and fluctuating barometric pressure as a result of stormy weather. McIntosh (1957), Boyer (1964), and Kissell et al. (1973) studied the influence of barometric drops on major coal mine disasters in the United States prior to 1970. Their statistical analyses found that a majority of these disasters occurred in the fall and winter months when the barometric pressures were influenced by unstable weather conditions and noted increased methane content in the mine workings during times of falling pressure. Studies conducted by Fauconnier (1992) and Hemp (1994) found similar connections between methane explosions and barometric pressure fluctuations in a majority of gas explosions in South African mines. Ten out of twelve major mine explosions with five or more fatalities in the U.S. after 1970 were found to have occurred during the months of November through April when barometric pressure swings were more abrupt and intense (Lolon et al., 2015)."

Jan 1, 2016

By J. H. Kempton

Refinement of environmental procedures can produce significant cost savings at most mines. Grouting permeable aquifers reduces water pumping and disposal costs. Stable groundwater quality supports reduced groundwater monitoring; and for contaminated groundwater, in-situ or natural restoration should be evaluated. Waste-rock characterization can be minimized using fewer (but more representative) samples, inexpensive surrogate analyses (e.g., NAG instead of humidity cells), and appropriate tests (e.g., avoid meteoric tests on sulfide). Selective waste-rock handling should be compared to random emplacement, which is often cheaper and more stable. Finally, incorporating schedule uncertainty in modeling allows the flexibility to revise mine plans within permits.

Jan 1, 2000

By L. K. Marshall

The importance of high quality underground mine ventilation is readily apparent. The principles of primary and auxiliary mine ventilation, however, are sometimes less readily apparent. The first article in this two-part series discusses some general aspects of primary and auxiliary ventilation. Next month's article will detail considerations involved with auxiliary mine ventilation.

Jan 1, 1982

By T. G. Hayes

Economic and environmental regulations in the coal industry have required companies to evaluate their current blasting method of loosening in-situ coal. This paper will review ripping vs. blasting thick in-situ coal seams, handling frozen active coal stockpiles and proper stockpile conditioning and reclaiming. How basic operating technique can improve job efficiency, productivity and cost per ton.

Jan 1, 1995

By Y. I. Rabinovich, S. C. Brown

In the Florida phosphate industry, fatty acid collectors are used to separate phosphate ore from silica during the rougher flotation stage. However, the presence of multivalent ions (in particular Ca++) in the processing water has been reported to result in the activation of silica with respect to oleate adsorption, rendering it floatable. Hence, adequate separation may not be achieved during the rougher flotation stage. In this study, the direct measurement of surface inter-action forces via atomic force microscopy was used to delineate possible mechanisms for calcium activation under phosphate flotation conditions at oleate/calcium concentrations both above and below the calcium dioleate precipitation limit.

Jan 1, 2004

By I. Gombköto, G. Földing, G. Mucsi, B. Csoke, J. Faitli, B. Kovács

This paper summarizes the main achievements of our previous project entitled "Development of a technological system producing quality guaranteed fly-ash based binder". Furthermore, this study deals with the laboratory experience of lignite fly ash utilization for two different goals. On the one hand the fly ash was tested as a binder; on the other hand it was investigated as an underground mine backfill material. Considering the first goal, the utilization of a mixture of mechanically activated fly ash and lime for producing an independent binding composition has been assessed involving determination of relationship between the degree of activation of fly ash and the strength of the obtained concrete. The results confirmed that this hydraulic binder is suitable for construction of stabilization and capping layers or base layer. Regarding the backfilling application, this paper presents laboratory experiments, their results including settling tests, hydraulic permeability and strength measurements and dense slurry technology related results.

Jan 1, 2011

By A. Yehia, M. I. Al-Wakeel

Flotation behavior, of magnesite and dolomite pure minerals was studied separately. Rice bran oil (a source of fatty acid ) was used as a collector for both minerals . The aim of this study is to find a separating zone in the flotation of these pure minerals to be used in the separation of their mixture. Factors affecting the flotation process, such as pH and collector, were studied. It was found that magnesite can be separated, from its mixture with dolomite, in the pH range of 5-7. At this pH range flotation recovery of dolomite reaches~98% where magnesite reaches ~20% only. Besides, the effect of collector concentration on the flotation shows that the separation of magnesite from dolomite is feasible at a collector concentration of 3x10-4 M. At such concentration, dolomite recovery reaches ~98%, where magnesite reaches 25%. The differences in the flotation behavior of dolomite and magnesite were investigated by studying the adsorption isotherms of rice bran oil on magnesite and dolomite surfaces. The adsorption study indicates that while there is an excessive adsorption on dolomite surface, the adsorption density on magnesite was restricted to be lower than monolayer capacity. The adsorption behavior of dolomite and magnesite was discussed in the light of their solubility and crystal structure. It was found that due to the higher solubility of dolomite than magnesite, Ca2+ and Mg2+ ions are available and more reactive on dolomite surface increasing collector adsorption. In addition, it was indicated that dolomite mineral has a crystal lattice structure more compatible to the geometry of the fatty acid carboxylic group than magnesite. However, the adsorption of collector on dolomite surface is more compact and more regular than on magnesite surface.

Jan 1, 2000

By D. Z. Mraz, R. S. Jones

Unlike in coal mines where caving methods are used, the subsidence over potash mines in Saskatchewan, Canada, is a function of gradual mining convergence. Because of the presence of high pressure water aquifers over the evaporite salt formations, the mines have to be designed as regionally stable and no caving is allowed. The extracted area converges gradually and the convergence is mainly a function of the extraction and the mining method employed. Consequently, the subsidence rate is very slow and the bridging of the over-lying strata is a considerably more important phenomenon than elsewhere. The paper evaluates a case history of convergence and subsidence in a deep potash mine in Saskatchewan.

Jan 1, 1986

By Daniel Tao, Jike Qiao, Hao Ren, Feifei Ji, Gonglun Chen

The floatation of niobite was studied using a number of collectors at various dosages and solution pH’s. Octyl diphosphonic acid was found to be an effective collector for niobite flotation with good selectivity. A flotation recovery of 91.2% was obtained with 140 mg/l octyl diphosphonic acid at pH’s less than 5.0. Infrared absorption spectroscopy (IAS) and X-ray photoelectron spectroscopy (XPS) were used to characterize the interactions of niobite with octyl diphosphonic acid. Species distribution diagram of octyl diphosphonic acid and niobium species was used to elucidate the flotation behavior of the mineral with octyl diphosphonic acid. A chemical adsorption mechanism of niobite with octyl diphosphonic acid was proposed. Keywords: octyl diphosphonic acid, electrokinetic measurements, niobite flotation, XPS.

Jan 1, 2005

By Gordon S. Thomas

The problem of how best to exploit a reserve has vexed mine planners and design engineers since mining began. The cyclic nature of the mine design-scheduling problem, combined with the lack of good mathematical tools for tackling it, have ensured that it has been, and will continue to be, a major challenge for operations researchers working in mining. This paper reviews the current state of the art in pit optimisation and scheduling algorithms. Starting from the inception of the first block models in the late 1950's, it progresses through the developments and applications of the Moving Cone algorithm, the Lerchs Grossmann 3D Graph Theory algorithm and some of the heuristics, to the new artificial intelligence techniques that are being applied today. Along the way, it discusses the limitations of the various approaches and lays the foundations for the research that is currently being undertaken by CSIRO and others in the field of mine production scheduling and control.

Jan 1, 1996

By Kerry Burns

Contrary to active subsidence, which occurs concurrently with mining operations, or is completed within a few days following coal extraction, delayed subsidence may take many years to appear at the surface after coal mines are abandoned. There are two principal morphological types of delayed subsidence: troughs, which are shallow depressions, and sinks, which are steep-sided crown pits. Both types are damaging to surface structures, and a variety of methods have been introduced to deal with the problem, ranging from subsidence insurance to site restitution. In planning insurance or restitution measures, a predictive model is of value in estimating the magnitude of the problem and the size of long-term budgetary commitments. Only one model is known, which was developed for the Bureau of Mines by GAI Consultants of Monroeville (l,2,3). The GAI model is presented in qualitative terms. This report develops a formal basis for the model and tests a numerical implementation on one of the best-described study areas, Allleqheny County in Pennsylvania.

Jan 1, 1982

By Michael Feroz, Marcus Jensen, James E. Lindell

The Southern Nevada Water Authority (SNWA) operates two water-intakes in Lake Mead, located 20 miles east of Las Vegas, Nevada. Severe drought has caused decline in lake level by 85 feet since 2000 and future declines are expected. SNWA will construct a third deep-water intake to ensure existing water system capacity. This paper describes expected construction challenges for the new project that consists of: an intake structure and tunnel beneath the lake, pumping station, pipeline to connect existing treatment facility, and interconnecting underground adits. The project will be completed in the year 2012 for total estimated cost of approximately $600 million.

Jan 1, 2007