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There has been some confusion over the selection of discount rates when performing stochastic simulations of a project's net present value (NPV) using risk- adjusted discounting techniques. Some argue that lower discount rates should be used when performing stochastic valuation simulations. This creates higher NPV values and improves the attractiveness of a project. Others argue that the discount rate should not be lowered for these simulations. This paper exposes the source of this confusion. It demonstrates that stochastic simulations do not remove the risk inherent in a project and, therefore-do not improve a project's value to the risk-averse investor. Risk-adjusted discount rates should, therefore, not be adjusted downward when performing stochastic NPV simulations. Stochastic simulations are, however, shown to he useful in several aspects of project valuation.

Jan 1, 1996

By Alan Bauer

In recent years there has been increasing interest in employing the technique of explosive casting in strip mines. Explosive casting, applied to dragline mining, describes the procedure whereby the overburden is horizontally displaced by blasting causing a portion of the material to be thrown into the previously mined cut. Therefore, it is not necessary to subsequently excavate this waste with the stripping equipment. In addition, allowing the overburden unrestricted movement during the blast most often results in improved fragmentation and enhanced machine productivity. The method is receiving attention because the capital and maintenance costs of stripping equipment has risen rapidly in relation to explosives costs. Improved productivity is necessary to maintain unit costs at an acceptable level.

Jan 1, 1983

By C. Ford, R. E. Salas Rojas, J. P. Contreras Rodriquez, S. A. Pierce

Heightened environmental consciousness has resulted in the development of various international accords dealing with natural resource management. This international awareness is now being translated into regional and local initiatives that proactively implement collaborative environmental management programs. One such program was recently initiated in northern Chile in recognition of the interconnection of Andean salars. Cooperative efforts between industry, governmental agencies and academic professionals have resulted in the implementation of simultaneous environmental monitoring of flora and fauna in the salars of northern Chile. This coordinated effort is leading to an improved understanding of the migratory patterns of South American fauna, as well as improved access to an expanded database for the multiple user groups associated with the Andean salars. The El Abra Mine is actively participating in these coordinated monitoring efforts.

Jan 1, 1999

By J. Duncan Wilkins

Introduction In difficult times such as these, there is a strong reaction to the current way of doing things. Typical reactions that we have all heard are "There has to be a better way," "We're pricing ourselves out of business," "We have to improve our productivity," and "We have to have more cooperation," between union and management and employees and management. All of these comments have at their roots one common factor - getting the maximum amount for your dollar. The other factor inherent in these statements is productivity. I have not yet met a person in our industry who has not expressed the opinion that we should, and that we can, improve our productivity. Reducing Labor Costs In light of these factors I suspect we have all spent a fair amount of time examining our labor costs. For some of us, labor costs are a high proportion of our total cost of doing business. To alleviate the impact of these costs, we have generally done four things. We have reduced our number of employees, shut down operations for appropriate periods, sought concessions from union employees, and placed freezes on wages, salaries, and other benefits on nonunion employees. These approaches have been made to improve current shortfalls in our cash positions - to tide us over, as it were - or to provide us with a chance for survival. These are short-term measures that help to bring immediate relief, but can pose significant problems (or challenges), for the longer term. For instance, what do we do when times improve? How much do things have to improve before we do anything? By seeking concessions from unions in bad times, what do we do when unions come to us in good times? It is a rather sad and critical fact that we have grown too fat during the good times and too thin during the bad. In the first case, we have failed to optimize our earnings. In the second, we have cut ourselves too far. Consequently, when good or better times have arrived, we have had to bulk up our requirements to meet production commitments. In mining, for example, when times become tough, we tend to reduce our development plans so that when times improve we have to really "sock it to 'em," so that we can maintain productive capacities. We should plan ahead a little more to reduce the amplitude of our cyclical wavelength, so that in good times profits are optimized and in bad time we are better able to take the strain. Of course, forecasting cycles is not a refined art, but if we properly control our work force levels and costs at all times, and therefore optimize our productivity, we would be more able to withstand the problems we face today. Unfortunately, it appears that it takes bad times to bring us to a realistic appraisal of our way of managing our businesses. Labor Practices Not all of the problems now faced are due to low metal prices. Inflation has played a major role in bringing costs to a frightening level. Trade unions alone can not be blamed for high inflation levels over the past several years, popular though that notion is. Contract negotiations, after all, require two parties. Indeed, our current levels of labor cost are due to two factors: • We have felt obliged to keep our employees whole, relative to the cost of living. • We have felt obliged to maintain our competitive position relative to our peers, in order to maintain our ability to attract and retain a skilled, efficient work force. In the first case, our felt obligation has been applied without due recognition of the factor of performance, either in individuals or groups. Average, even mediocre performers, have been amply rewarded for their average work and mediocrity, while the good performers, no doubt receiving more for their good work and effort, have not perhaps appreciated the slight premium for their effectiveness. The rather predictable result of this practice has been that the average and mediocre stay that way (why change?), while some (certainly not all) of the good performers have said "It's not worth it," and slipped into the warm, cosy pool of the average and mediocre. In the second case, that of maintaining competitiveness with other companies' employees, we have compounded an already serious problem of lack of skilled tradesmen by paying higher and higher prices for the existing pool to maintain comparability without improving the flow of more skilled people through sound and sufficient training programs. We have the rather dubious pleasure of paying more and more for the same problems. Compensation is either mutually agreed, as with unions, or it is unilaterally applied, as with nonunion employees. Generally, there is more flexibility available to the employer when dealing with nonunionized groups than there is with unionized groups. Sometimes that flexibility has not been used well, most often be-

Jan 11, 1983

By Eduardo Rojas, Pedro Landeros

El Teniente Mine expansion plans are currently under development and construction stages through an integrated project strategy that will allow the continuity of future mining. The deepest sector corresponds to Andes Norte Project that faced rockburst risks during tunneling in a completely different manner, implementing different actions for the mitigation of seismic hazard and seismic risk management, based on the following main aspects: rock mass preconditioning techniques such as destress blasting and hydraulic fracturing, improvement of rock support design with the inclusion of elements with higher energy dissipation capacities, use of mechanized equipment for the most critical activities in addition to re-entry protocols and improvements in geological, geomechanical and seismic data collection procedures to reduce the uncertainty of rock mass behavior. The current seismic risk management strategy integrates all of these elements and is the basis of construction methodologies in use, supporting the technical feasibility of tunneling in high-stress environments.

Apr 26, 2022

By R. F. Winkle

Shortly after World War II, considerable impetus was given to use of truck haulage in open pit mines by the manufacture of large off-highway trucks. Mine management was quick to utilize this more flexible approach to open pit operation and in the ensuing years much time and energy has been spent to improve the basic concept. Dramatic progress has been made in drilling, blasting, loading and hauling with much emphasis placed on equipment improvement. In general, haul roads in open pit mines and quarries have received rather perfunctory treatment in studies of surface mining operations. Their importance to the successful pit operation requires more than a brief sentence saying, "Good haul roads must be maintained." Haulage costs account for approximately one-third of total mining costs including general costs and about 90 percent of the total loading-haulage cycle time is consumed in travel, hence, good haul road planning, construction and maintenance are mandatory for a viable operation.

Jan 1, 1976

By Paul E. Rosten

This paper describes some of the latest improvements that have been incorporated or planned by the Cleveland-Cliffs Iron Company to reduce operating costs and improve pellet quality. The Cleveland-Cliffs Iron Company operates and manages mining, beneficiation, and pelletizing operations in Michigan, Canada, and Western Australia. This paper deals with the grate-kiln pelletizing operations at Republic, Humboldt, Tilden, Empire, and Pioneer in Michigan, and the Adams and Sherman in Ontario, Canada. Table I characterizes .each operation in regard to location, ore type, pellet capacity and date that pellets were first produced. All of the operations with the exception of Pioneer and Tilden, utilize downdraft-two-pass grate cycles of drying followed by preheating. Pioneer utilizes an all-downdraft, three-pass grate cycle which consists of three drying zones followed by the preheat zone. The Pioneer and Tilden cycles have been described previously. (1) (2)(3) Tilden utilizes a three-pass grate cycle with a stage of updraft drying, followed by two downdraft drying stages. Recuperation systems which supply hot gases to a drying zone from second stage cooling were designed and furnished for Tilden I. Tilden II will be identical. Empire IV will also be furnished with a recuperation system. The Adams grate-kiln system was retrofitted with a recuperation system. This paper will summarize some of the efforts that are in effect or planned for grate-kiln pelletizing systems to (1) reduce operating and maintenance costs, (2) reduce energy requirements, (3) improve product quality, and (4) meet environmental standards.

Jan 1, 1977

By M. A. Giralico

Solvent Extraction (SX) technology has undergone significant refinements including outright process changes to achieve greater copper production rates with lower organic entrainment levels. LIGHTNIN has completed a detailed study aimed at improving on the conventional Holmes & Narver and Davy Power Gas type impeller designs1 by optimizing the mixing through the use of high efficiency pumper turbines instead of making system changes as others are doing. Since each individual installation requires a different design head and flow, LIGHTNIN has developed the R320 "family" of high efficiency, curved blade pumper turbines. These impellers are designed to maximize head and flow while reducing entrainment through lower power consumption, less shear generation and turbulence, elimination of air incorporation, production of the optimum droplet distribution, and lower tip speeds. These improvements also maintain the required mass transfer and copper recovery of the traditional impeller designs. The R320 impeller benefits have been quantified using Laser Doppler Velocimetry (LDV) and proven in multiple domestic and foreign installations at flow rates exceeding 15,000 GPM. Design comparisons of this improved impeller type versus traditional technology impellers in head, flow, power and entrainment are presented for review. In addition, the inherent benefits of axial flow, high efficiency impellers like the A3 1 0 and A6000 in auxiliary mix chambers will be discussed. The high flow, low shear characteristics of these patented impellers provide the necessary dispersion stability for mass transfer while speeding phase disengagement in the settlers due to low power and low shear input.

Jan 1, 1995

By B. Elevli

Production scheduling of an open-pit mine is one of the most important steps in open-pit mining. The production schedule of a mine defines the distribution of cash flows and as a result directly influences the net present value (NPV) and overall economic feasibility of a project. Although the need to plan and operate a mine with an optimum production schedule has been obvious for some time, the methods used to obtain such a schedule have not been. The current practice for doing is to do it by hand on the basis of trial and error analysis. In an attempt to improve the way production scheduling is currently done, a new computer based production scheduling algorithm is developed. This paper describes the fundamentals of this newly developed heuristic scheduling algorithm and its application on a gold deposit. The results coming from a case study show that the schedules based on the new method provides improved cash flows compare to a manually done production schedules.

Jan 1, 1989

By Rollien R. Wells

The Bureau of Mines was created in 1910 by an act of Congress and subsequently directed to: "...conduct inquiries and scientific and technologic investigations concerning mining, and the preparation, treatment, and utilization of mineral substances with a view to improving health conditions, and increasing safety, efficiency, economic development, and conserving resources through the prevention of waste ..." Under this broad charter, the Bureau's responsibilities have changed and grown from an almost exclusive concern with coal and coal mine safety to the present emphasis on a full spectrum of mineral producing and consuming problems. In the past 30 years, the domestic consumption of coal, oil, gas, metals, and industrial minerals has more than quadrupled, in parallel with the rapid and enormous growth in industrial production. Of the scores of metals and nonmetals essential to the Nation's progress and security, many are scarce and difficult to wrest from domestic sources. Reserves of some ores are dwindling. Available ore resources are becoming leaner and more difficult to treat. In recognition of this many faceted problem, the Bureau has engaged in a continuing quest for new and improved technology to enable economic exploitation of marginal minerals and fuels, to find substitutes for minerals in short supply, and to create better materials to meet the expanding and diverse requirements of the growing economy. The current central concern of the Bureau is focused on meeting projected fuel, metal, and mineral demands at the lowest real cost by recovery from available resources by new and improved technology that minimizes waste, hazards, and social and environmental problems.

Jan 1, 1970

By Paul Clifford

The Florida Institute of Phosphate Research (FIPR) is an independent, state of Florida research agency. It was created in 1978 to conduct research to enhance the competitiveness of the Florida phosphate industry. The institute also conducts research to prevent, minimize or rectify environmental impacts caused by the industry. And it helps educate the public concerning phosphate-related technology and issues. FIPR is funded by a severance tax on the industry and is governed by a five-member board of directors appointed by the governor. FIPR's research is playing a role in enhancing the competitiveness of the Florida phosphate industry. Its technology research program seeks to improve surface mining and pipeline transportation while reducing the energy cost for pumping phosphate matrix. It is developing new and improved methods of beneficiation and fertilizer production. This includes new process flowsheets and on-line analyzers and process control methods. FIPR is also developing uses for the phosphogypsum byproduct of phosphoric acid production and evaluating the risks associated with its uses.

Jan 1, 1998

By Mark Leggett, Kevin Roberts

The need to modernise and increase the safety provision of older road tunnels raises challenges in maintaining the operation of the tunnel during such improvement works. The Mersey Kingsway twin road tunnels located in Liverpool UK, constructed in the late 1960s, have had three new cross passages constructed to allow emergency evacuation from one tunnel to the other tunnel and provide safer access for emergency services. The 3200m long road tunnels are lined with an unusual reinforced concrete steel-faced segmental lining with a paint finish. Construction of the cross passages occurred during night possessions with the tunnels returned to normal operation during the daytime. Constructed through water bearing sandstone and lined with precast concrete segments, the passages required advance ground treatment and support works. This paper presents the historical background to the Mersey Tunnels and describes the procurement strategy, design and construction approach adopted for these important safety improvements.

Jan 1, 2003

By Brendan Parker, Joseph Skrypniuk

Boddington Gold Mine1 (BGM) commenced production in 1987 and is currently ranked as the second largest gold producer in Australia. In a strategy to improve plant efficiency, constraints to plant performance were identified and prioritised with a view to maximising benefit for minimal expenditure. After identifying that leach kinetics and circuit residence time were major constraints, the introduction of oxygen was identified as having the greatest potential for the delivery of sig­nificant cost benefits. The application of oxygen, initially by conventional tech­niques, and subsequently by installation of Atomaer's Filblast gas shear reactor, improved gold recovery, reduced the resi­dence time constraint and enabled higher mill throughput to be achieved. Additional benefits included operation at lower pulp densities and a reduction in reagent usage. A significant reduc­tion in unit operating cost resulted from these benefits. This paper quantifies the above benefits in a format accept­able to both metallurgists and accountants by integrating the findings in a techno-economic perspective.

Jan 1, 1996

By M. Cambridge

The extractive industries are currently, and will continue to be, major contributors to the world economy, particularly in the developing world where economic growth is dependent upon a sound supply of primary materials. However, tailings dam and other mine failures have been very much a feature of recent anti-mining publicity, particularly in Europe, and thus instrumental in inhibiting new mine developments. Although, superficially, the record of dangerous incidents might support the anti-mining position, closer inspection suggests otherwise. This paper reviews the failures which have occurred over the last 50 years and demonstrates that, though poor practice is an ongoing problem for the industry, the record is one of improvement in both design and practice. Examples are provided of significant events which have led to dramatic advances in design and operation. The paper assesses the improvements made in technology and practice, and concludes that historic events must continue to form the underlying basis for design and operation of future mining projects.

Jan 1, 2005

By Lothar Baumann, Wilhelm Knickmeyer

In mechanized roadheading predominantly two methods of rock breakage are applied at present: the cutting method by means of picks and the cutting/crushing method by means of roller cutters. Both systems meanwhile reached a high degree of technical development and consequently show very few possibilities of further improvement. While application of hard-metal picks is limited by rock hardness, the roller cutters require a high specific thrust, and, accordingly, heavy carrier systems. Roller-cutter equipped tunneling machines are therefore only cost-effective in hard-coal mining if the high investments for transport and assembly are justified by a corresponding length of road to be headed. The limit for acceptable cost-effectiveness is at present a minimum heading length of approximately 3 km. In order to improve the specific cutting performance of roller cutters by activation, Bergbau-Forschung carried out a research project sponsored by the Commission of the European Communities and the provincial government of

Jan 1, 1981

By Donald E. Zipperian

The studies described in this paper have established that flotation conducted in a column cell provided with gas generation by aspiration into surface tension lowered water, may considerably increase the efficiency and particle size range of a flotation process. Operation of a DEISTER FLOTAIRE ® Cell at several Southwest United States flotation plants under continuous rougher, scavenger and cleaner conditions has demonstrated the main positive features to be: (a) higher capacity per unit volume than conventional flotation equipment, (b) improvement of flotation of plus 0.210 m particles, (c) improved flotation of particles minus 0.037 m.

Jan 1, 1984

By I. E. Lewis, W. R. Hopkins

Flowsheet improvements, such as series/parallel SX plant configurations, discontinuation of plant sumps and improved filter pumping concepts, the use of in-settler baffle systems, and the Krebs and combined mixer-settler designs offer opportunities to reduce SX plant cost. Today's plants employ permanent cathodes and mechanical stripping, and the increased capital cost can be offset by labor savings and higher current densities. The wider use of HDPE and new cell construction materials also reduce capital cost. The "Portelex" type of relocatable design embodies such new, cost-saving measures in a simple basic plant. Organic inventory and losses are reduced by new, fast-settling, hybrid organic reagents with improved kinetics and selectivity.

Jan 1, 1991

By R. A. Jankowsi, S. K. Ruggieri

Airborne respirable dust levels on longwalls can be reduced if operators approach the dust control problem in a logical and fundamental manner. This can be accomplished through the proper application and continued use of effective dust control techniques. The Bureau of Mines is currently assessing the effectiveness of longwall dust control techniques in use today to provide mine operators with guidelines for selecting the most appropriate control technology. This paper presents a fundamental approach to the problem of shearer dust control. Three dust control techniques to be discussed are: deep cutting/increased pick penetration for reducing the amount of respirable dust generated; drum water sprays/improved water supply system to suppress the amount of airborne respirable dust; and improved external water spray system, the "shearer-clearer," to push the dust close to the face. The techniques have been evaluated in field trials and have been shown to be both practical and effective in applications to control shearer generated dust.

Jan 6, 1985

By W. E. Anderson

As part of a larger study to identify factors influencing the practical operating life of wire rope used on large draglines in surface coal mining, field trips to operating surface coal mines were made during late 1975. Wire rope performance information was obtained from personnel at thirteen mine sites west of the Appalachians. Seventeen pieces of equipment, utilizing buckets ranging from 30-to 220-cubic-yard capacity, were documented. We have judged that U.S. surface coal mining draglines, 30 yards and larger, can be represented as 120 machines having 60-cubic-yard buckets, moving 1.8 x 10 yards of overburden during 6,650 hours of productive availability per year. Based on our limited field study, we have calculated that downtime resulting from rope-related causes averages 105.6 hours per year for each (typical 60-yard) dragline. The total lost production from this source alone is thereby estimated at about 25 x 10 yards annually. Although study findings did not reveal anything about dragline rope life that wasn't known or practiced by one operator or another, most operators could expect improved rope life by periodic review of their practices and by adopting or adapting one or more life-improvement measures employed at other sites. Since rope productivity was found to vary by about five to one, among the sites studied, we believe considerably improved average performance is possible. As little as ten percent overall improvement would mean increased national productivity exceeding two million yards of solid overburden removal, and associated savings in rope costs alone of some two million dollars annually, not to mention any reduction of labor-related expenses. This report outlines preliminary findings which may prove useful to many operators in extending wire rope life, thereby lowering expenses and increasing surface coal mining productivity. Some of these modifications or adjustments in maintenance/operating practices would not require capital investment. We did not find anyone who had tried cost reductions by using presocketed dump

Jan 1, 1977

By S. Gering, R. Ruiz, C. H. Calderon-Arteaga, J. Barrios

"INTRODUCTION Located in the northeast corner of Zacatecas State, Mexico, the Peñasquito Operation is comprised of the Peñasco and Chile Colorado (Brecha Azul) deposits. Open pit mining (pre-stripping) began in 2010 and full production commenced during 2011. The open pit mines feed both a sulphide concentrator (mill) and a heap leach pad. The project is owned by Goldcorp, Inc. Penasquito is a poly metallic deposit with Au, Ag, Zn and Pb being recovered as payable metals. As a consequence of lower grade ores expected with advancing mine-life Peñasquito is facing a declining metal production profile. To maximize returns and asset value plant modifications including the addition of a carbon pre-float circuit and a pyrite leach circuit to improve recovery are currently being undertaken. This carbon pre-float circuit will enable the recovery of precious and base metals from carbonaceous sediments. This material is currently being stockpiled. With the associated increase in complexity in the process circuit, the requirement of the ore control system to accurately predict ore feed characteristics is critical to maximizing metal recovery at the Penasquito operation. The addition of the carbon pre-float circuit was also a key driver in allowing the Chile Colorado open pit to be developed. These conditions alongside Goldcorp’s drive to increase profitability, and maximize net asset value has created challenges. These challenges are numerous and are multifaceted, however the ability to accurately route materials from the ore control system is critical to site success, and some of these challenges have been overcome by the adoption and implementation of a new ore control (OC) technology. Examples of these technological innovations in the ore control program are discussed in this paper and include improvements in geo-modeling, material routing and reconciliation. Successful implementation of these elements has led to significant improvements in selectivity, performance, and data management, while reducing the variance between planning and execution, thus helping to drive overall improvement across the operation."

Jan 1, 2018