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By Thomas O’Neil

Part 2 of this article continues with a discussion of features that distinguish contemporary investment analysis in mining from earlier methods. Part 1 traced the evolution of evaluation methodology from the traditional and discounted cash flow methods to the present. Quantitative investment models of the past 20 years played an important role in mine evaluation, but a new integrated approach to mine investment decision-making is now developing because of growing economic, technical, and political uncertainties. One of those uncertainties -inflation-was discussed in Part 1. Increased Risk At a time when mineral production technology and analytical evaluation tools have never been more sophisticated, it may seem anomalous to claim that mining ventures are riskier. Whereas technical risk has, indeed, been notably reduced, business risk the chance of a major loss due to market factors-has increased. This has been caused by two factors: the rapidly rising capital requirements of new projects and increasingly unpredictable future economic conditions. These difficulties are compounded by the long lead times of large, new mining projects. Rising Capital Requirements A $100 million investment is no longer considered to be a large mining project in most cases. For a large metal mining project, the total cost of the concentrator alone can exceed $100 million. Amoco Minerals' Thompson Creek molybdenum mine being developed in Idaho will cost over $350 million, for a relatively modest sized (23-kt/d or 25,000-stpd) ore operation with no extraordinary features. For a major grass roots copper operation producing blis¬ter or refined copper, the capital requirements are billions of dollars, not millions. Project costs are higher for two reasons. One, the projects themselves are larger; and two, the capital cost per unit of production is rising rapidly. Projects are larger because lower grade ores, yielding smaller margins, must be mined in greater volume-particularly in view of the high fixed costs of modern technology. When analysts contemplate any capital project, an important consideration is the minimum economic size of the facility. This is the smallest size that can be built and still be competitive on a total unit production cost basis. In the conventional copper smelting business, for example, a production rate of at least 91 kt/a (100,000 stpy) of blister copper is about the absolute minimum for reducing unit fixed costs to competitive levels. Clearly, many variables affect the minimum economic size of a mining facility, but with few exceptions that size continues to grow. Unit capital costs of new mining projects also are continuing to rise. The accompanying table shows that the capital costs in primary copper production have risen faster than the cost of living. Of particular note is the capital charge of over $1.70/kg (77411b) required for a new, fully integrated facility in 1981. Thus, the mid-1982 copper price would not even cover the cost of capital for a new copper producing complex without considering the direct operating costs for such a facility. The breath-taking costs of new mining projects are caused by factors such as increasingly complex technology, the rising social costs of creating attractive living and working conditions for employ¬ees, and the expenditures re¬quired for environmental protec¬tion. For whatever reasons, how¬ever, unit capital costs in mining continue to exhibit staggering growth rates. Future Economic Conditions Risk is not only a function of the size of the potential loss-an im¬portant measure of which is the capital intensity of mining dis¬cussed above-but also of the like¬lihood of incurring the loss. It is here that the ever increasing lead times of mining projects and the glaring limitations of economic forecasting are so important. In comparison to nearly all other in¬vestments, mining has more capi¬tal at stake for a longer period of time before commercial uncer¬tainty is resolved by distant eco¬nomic conditions that are subject to high forecasting errors. A sobering example of the pre¬ceding points occurred with the Lakeshore copper mine in south¬ern Arizona that Hecla Mining Co. undertook to finance and manage in 1969. The project was a joint venture of Hecla and the El Paso Natural Gas Co. and included two mines-one producing oxide ore and a second in the sulfide zone¬and a complex processing facility producing both electrowon cop¬per cathodes and copper precipi¬tates. The project originally was

Jan 12, 1982

By A. J. Thompson

The Metropolitan Transportation Authority (MTA) East Side Access project (ESA) will, when it is complete, provide a new link to the east side of Manhattan from Long Island, NY that, linked with the Second Ave. Subway currently under construction, will assist in relieving overcrowding at Penn Station as well as the Lexington Ave. subway. ESA will bring Long Island Railroad (LIRR) directly from Long Island into a new station located 37 m (120 ft) beneath the existing Grand Central Terminal (GCT) located in the heart of Manhattan. It will connect the LIRR?s mainline tracks in Queens, via the existing 63rd Street Tunnel under the East River, to a new terminal constructed within, and beneath, the historic Grand Central Terminal.

Jan 1, 2012

By J. R. Boldt, C. M. Kleemann, V. N. Mackiw, B. Meddings, J. A. MacLellan, E. J. Maney, D. E. Halter, D. J. I. Evans, J. Honkasalo, M. F. Dufour

The technology employed in the processing of nickel- and cobalt¬bearing ores is a continually developing process for utilizing the natu¬ral resources available at a given time. Most of the nickel-bearing ores of commercial importance fall under the category of sulfide or lateritic ores. While the occurrences of both types of ore have been known for over a century, until 1960 sulfide ores largely from Cana¬dian mines have constituted the chief source of production for com¬mercial nickel in the Free World. Sulfide ores are readily amenable to some physical means of concentration, but the lateritic ores are not readily concentrated, and to compete economically with the sulfide ores only the high-grade garnierite ores (a type of lateritic ore) found in New Caledonia were processed to any great extent up to the time of World War II. Around 1960, a gradual shift in emphasis towards latetitic ores as a commercial source of nickel became evident. See Fig. 1. New discoveries of sulfide ores, usually located underground, had not kept pace with the steadily increasing demand for nickel. The lateritic ores, found near the surface of the earth, could be readily surveyed and mined. Lower cost processes were being developed for the extrac¬tion of nickel from lateritic ores and for a time it appeared that, based on pre-OPEC economics, the lower grade lateritic ores-down to 1.2% nickel-could satisfy an increasing share of the world demand for nickel. The sharp increase in the price of crude oil in the 1970s, however, slapped an economic damper on the lateritic ores. Processes for treat¬ing lateritic ores consume large amounts of energy; as the nickel industry entered its deep recessionary period in 1981-83, nickel pro¬duction from lateritic ores became less and less profitable than from sulfide ores. At the same time, new sulfide ores were discovered and brought into production, notably in Australia and South Africa. The chapters in Section 17 were prepared in 1973. Recent improvements in mineral dressing techniques since then include Inco's pyrrhotite separation process which can remove additional pyrrhotite from nickel concentrates, resulting in reduced sulfur dioxide emission from the Sudbury smelter, by some 25%. The chapters in this section dealing with nickel are grouped in line with the two broad categories of nickel ores. Starting with the description of nickel and cobalt ores in Chapter 2, Chapter 3 deals with the processing of sulfide ores, and Chapter 4 deals largely with lateritic ores. The intermediate steps to produce a suitable feed for extraction plants and refineries are similar in principle within the same categories, although dissimilar between sulfide and lateritic ores. Thus Inco in Canada employs flotation and so does Western Mining Corp. in Australia, although Inco's plants were started before World War II, and that of Western Mining only recently in the late 1960s. Treatment subsequent to the ore dressing step, however, shows some interesting differences. The earlier parts deal mostly with established and conventional practices, leaning heavily on pyrometallurgy in both

Jan 1, 1985

By John E. Litz, Charles W. Kenney, Wayne Carter

Refractory gold ore pretreatment processes continue to receive much attention. This paper compares the relative economics of treating ores by oxygen pressure oxidation, roasting and bacterial oxidation with or without preconcentration by froth flotation. Capital and operating cost estimates for each method of pretreatment were prepared and these estimated costs and ore sulfide grades then are used to compare the process economics. The study indicates that the most significant item affecting the economics is the amenability of the ore to flotation. The cost benefits of flotation are $10-13 per tonne ore processed (2%-4% s=, 10:1 ratio of concentration). In most cases bacterial oxidation has the lowest overall cost, especially if less than complete oxidation of the sulfides will give acceptable recovery, however bacterial oxidation has yet to be practiced on a large scale. In all situations pressure oxidation shows the highest cost. However, the cost differences between the treatments are small, less than $7 per tonne.

Jan 1, 1990

By R. Y. Wan, J. D. Miller, P. L. Sibrell

Three different refractory carbonaceous gold ores from the Carlin operation in northeastern Nevada were investigated to characterize the effect of passivation treatments on the nature of the carbonaceous material. The carbonaceous material was chemically isolated from the ores and passivated residues, and examined by FTIR spectroscopy, elemental analysis, and gold adsorption capacity. The main component of the carbonaceous material in these ores was found to be a naturally occurring activated carbon-type compound. Hydro-carbons were detected on rare occasions, but no evidence was seen for humic acids. Ore samples were passivated by autoclaving, or by treatment with sodium hypochlorite or gaseous chlorine. In some of the passivation tests, a new peak was observed in the IR spectra of the isolated carbonaceous material, that was due to carbonyl functionalities. However, all of the passivation treatments tested decreased preg robbing significantly. This suggested that the appearance of the carbonyl peak was due to the severity of the conditions during passivation, rather than the method used.

Jan 1, 1990

By D. E. Munson, T. M. Torres, D. A. Blankenship

The Thermal/Structural Interactions (TSI) In Situ Tests are a series of large scale, well instrumented tests that have been constructed at the Waste Isolation Pilot Plant (WIPP) in southeastern New Mexico. As a precursor to the TSI tests, a ventilation drift (Room D) was mined, drilled and instrumented. This room provided the contractor an excellent area to practice controlled construction methods and was a proving ground for construction monitoring and documentation methods. All gages in this first room have been monitored since their initial installation, which has provided a small, but representative, data base. These data also were the first to be available from any TSI area for analysis. This paper discusses the construction activities in Room D and the data generated from the construction and drilling. Deformation of the room is compared briefly to numerical calculations that used a rather simple creep model as a reference. The constitutive model for salt, it appears, must be improved before it can predict the underground deformations.

Jan 1, 1986

By Y. Boissonnas

INTRODUCTION, The transalpine rail routes in Switzerland are well over one hundred years old. As the established routes no longer meet the demands of the continually increasing volumes of rail traffic between north and south, two new routes through the Alps were planed. The old Gotthard rail line is in fact a mountain railway. The northern and the southern access ramps?with a maximum speed of 80 km/h and a maximum slope of 2.2%?reach the old Gotthard rail tunnel at an elevation of approximately 1,100 m above sea level. This is approximately 900 m higher than the city of Milan. In 1992, the Swiss electorate people voted with an overwhelming majority in favor of the project to build the new base routes through the Alps. The Swiss voted again in 1998 in favor of the financing proposal for the new infrastructure. Swiss Federal Railways together with the BLS Lötschbergbahn were commissioned for the realization and management of the Gotthard and Lötschberg routes. AlpTransit Gotthard Ltd., founded by Swiss Federal Railways, was given the task of managing the design and realization of the Gotthard route until the start of regular service. In the meantime the shorter Lötschberg Base Tunnel was open to traffic in 2007

By Tom Martin

Mega projects present unique challenges with regard to estimating costs. With such projects, which may span decades, these challenges often begin as soon as a project is conceived. The importance of having a sound, resource based estimate avail-able early in the process cannot be overstated because it provides the basis for ongoing project decisions. For the final phase of providing an updated cost estimate, often while bidding by contractors is underway, the Engineer?s Estimate (EE) must incorporate present market conditions; account for possible volatile material price swings; be based on actual labor and fringe costs; rely on meaningful productivity rates; and accommodate any recent technology advances while identifying and allowing for risk factors. This paper explains the benefits associated with consultants adopting a contractor?s estimating approach when preparing the Engineer?s Estimate on mega projects like the various tunneling projects in New York City.

By Paul L. Bearden

The accumulation, handling, and utilization of sludges formed from wet process phosphoric acid is one of the major problems in the industry. The purpose of this paper is to explain some of the considerations and techniques that can be employed to provide some measure of control over the problem. An acid made from a Central Florida phosphate rock is used to illustrate the effects of one process design approach used to provide one type of control. Other approaches or techniques are discussed on a general basis. In every case, the discussion is purposely limited to conventional dihydrate processing in which phosphoric acid is produced from the filter at a strength of approximately 30% P205 and is subsequently concentrated to higher strengths such as 44 and 54% P205.

Jan 1, 1966

By W. Z. Choi

A combined size reduction- liberation model of grinding has been developed to predict the product size distribution for both free and locked particles. The model is an extension of the population balance model for size reduction. Locked (or composite) particles have been subdivided into discrete classes of different compositions to obtain more detailed information. The model has been tested on a sphalerite ore from Tennessee. Liberation data have been obtained using an areal scanning technique on microscope images of polished particle mounts.

Jan 1, 1985

By Dan Mackie

Since the production prototype continuous vat leaching pilot plant was installed at Ariel Resources in Costa Rica in 1995, the test results and lessons learned have been invaluable in plotting the future of this method. Vigorous test programs in base and precious metals as well as design developments for studies have shown the advantages, economically, technically, and environmentally that favor this method over current practices in heap leaching and stirred tank leaching. Much larger individual vats have been developed with throughputs as high as 5000 t/d with larger vats envisaged, and there has been a trend towards using vats with ground ore. Five projects are slated to begin detailed engineering this year, three in precious metals and two in copper. Of particular interest to future producers is the ability to deposit d,y, detoxified tailings at a fraction of the cost of conventional methods. Proprieta,y work is ongoing which promises to eliminate the need for tailings dams when using other methods of processing such as flotation. This is of particular importance in light of dam failures around the world in recent years.

Jan 1, 2000

By Stuart K. Nicol, Malcolm D. Engel, Neville T. Moxon

Ion flotation of gold is a process continuing to be developed to selectively beneficiate dilute aurocyanide liquors using a novel surface­active complexing agent. Aeration of these liquors causes accumulation of the precious metal species in the froth concentrate produced in a flotation column. Successful development of ion flotation for concentrating solids-free liquors would offer a low--cost method for recovering specific metals from heap leach runoff or waste tailings solutions. The cost of constructing and operating a 100 tph gold ion flotation facility has been compared with the relevant carbon adsorption plant costs. Reductions in operating costs of 25% and installed capital of 40% are possible in relevant expenditure areas. For an 'average' processing plant, this equates to annual operating savings of A$ 170 000 and a capital saving of A$ 515 000, with a three-point increase in total (mine and plant) site DCF ROI. High gold inventories are eliminated and the number of processing steps is reduced. The application of gold ion flotation will initially be confined to heap leach operations in the western U.S.A., although use of the process in mine abandonment programmes elsewhere is also an area of future development.

Jan 1, 1992

By J. J. Kollé

A compressed-water hydraulic pulse generator (HPG) for nonexplosive blasting of rock and con¬crete is described Energy is stored in the HPG by compressing water to ultrahigh pressure. A large, fastopening valve discharges the com¬pressed water, resulting in a high-energy impulse. The HPG can be used for small-scale bench blasting by discharging the water through a nozzle that is closely fitted into a borehole. A bench blasting system requires an HPG, a drill and an indexing mechanism to allow insertion of the HPG nozzle into a drilled borehole. Systems with discharge energies ranging from 40 to 250 kJ have been used to excavate hard rock, including andesite, granite and quartzite. The largest system can excavate 15 t/h (16.5 stph) of massive quartzite based on a 2-min cycle time for hole drilling. Blasting with an ultrahigh-pressure hydraulic pulse generator was demonstrated as an effective means of excavating hard massive rock under the confined conditions of a tunnel opening or underground sloping panel. Hydraulic blasting provides a continuous mechanized mining capability that is well suited for deep-level mining and urban excavation sites where explosives are prohibited

Jan 1, 1997

By J. J. Kollé

A compressed-water hydraulic pulse generator (HPG) for nonexplosive blasting of rock and concrete is described. Energy is stored in the HPG by compressing water to ultrahigh pressure. A large, fast-opening valve discharges the compressed water, resulting in a high-energy impulse. The HPG can be used for small-scale bench blasting by discharging the water through a nozzle that is closely fitted into a borehole. A bench blasting system requires an HPG, a drill and an indexing mechanism to allow insertion of the HPG nozzle into a drilled borehole. Systems with discharge energies ranging from 40 to 250 kJ have been used to excavate hard rock, including andesite, granite and quartzite. The largest system can excavate 15 t/h (16.5 stph) of massive quartzite based on a 2-min cycle time for hole drilling. Blasting with an ultrahigh -pressure hydraulic pulse generator was demonstrated as an effective means of excavating hard, massive rock under the confined conditions of a tunnel opening or underground sloping panel. Hydraulic blasting provides a continuous mechanized mining capability that is well suited for deep-level mining and urban excavation sites where explosives are prohibited.

Jan 1, 1998

By Chelsea Woodward

The Spokane Research Laboratory of the National Institute for Occupational Safety and Health has demonstrated a prototype hydrogen-fueled mining vehicle as an alternative to diesel equipment in underground mines. Safety and control systems were added to allow a 70-kW rubber-tired hydrogen vehicle, originally developed by the U. S. Bureau of Mines and Hydrogen Consultants, Inc. (now Hydrogen Components, Inc., of Littleton, CO), to be tested. This work began in late 2000 and culminated with a Mine Safety and Health Administration fire safety review and field tests at the Stillwater Mine in Nye, MT, in 2004.

Jan 1, 2006

By Rolf Lange

Introduction The Harzwasserwerke, a public body of the Federal State of Lower Saxony, supplies drinking water to an area bordered by Braunschweig, Bremen, the Northern and the Western edges of the Harz-Mountains. From the very beginning in 1928, the Harzwasserwerke have been systematically constructing reservoirs in the western Harz which have the function of collecting and storing the frequently occuring flood waters as well as providing drinking water. The Grane-Reservoir with a capacity of 45 Million cu.m., the last of the big reservoirs, was built in 1968-1970. A system of connecting tunnels effectively enlarges the natural catchment area of this reservoir and the surplus waters of the Oker and Radau valleys - where floods occur particularly during the spring - are being conducted to the reservoir. By building the 4.800 m long "Radau-Tunnel", the waters of the Radau valley will now also be used more efficiently and its surplus waters will pass to the Grane Reservoir via this new tunnel and the Oker-Grane-Tunnel which was finished in 1970. The Project The Radaustollen has been planned and put out to tender by the Harzwasserwerke as a conventional "Freispiegelstollen". The horseshoe profile has a cross-section of 8 m2. Lining was required only in disturbed rock areas; lining of the whole tunnel was not necessary. The gradient of the tunnel is 4 % 0 rising = 25 m over the total length of 4.800 m.

Jan 1, 1979

By B. Gigas, M. Preston, M. Giralico

Optimized mixer settler designs will now handle total flows of over 6,000 m3/hr.Computational Fluid Dynamics (CFD) is a timely and predictable tool for design development. Lightnin has the capability of using numerical analysis methodology to evaluate flow patterns and phase separation. CFD can show performance differences between changes, in mix tanks, in settler geometry, and in liquid depth, against variable flow rates. Understanding the differences allows the development of optimized designs. This paper focuses on the major design components of the mixer settler and how technological advances will lead to further improvements, when designing for today’s largest flow plants.

Jan 1, 2004

By Jacek B. Stypulkowski

This paper discusses the challenges faced by the design team of the under-river crossings of electric transmission feeders in New York City, a densely populated urban area. The under-river crossing of a 345 kV feeder was initially designed as Horizontal Directional Drilling (HDD), but was redesigned as a utility tunnel because of site con¬straints on both sides of the river. Multiple studies addressed location, available tech-nologies and costs. Multiple soil investigation phases addressed design aspects of HDD, as well as tunneling. Contractual issues varied from a design build alternative with Geotechnical Data Report (GDR) to design tender approach with GDR & Geotechnical Baseline Report (GBR).

By K. C. Shaver

Detailed examination of the Sloan Ranch diamond prospect has shown that the Sloan 1 diatreme, the Sloan 2 dike, and the Sloan 3 horizontal sheet complex are all parts of the same kimberlite complex. Geologic mapping, geophysics, soil chemistry, test pitting, and drilling all helped to delineate the structure. Bulk sample testing yielded moderate grades with encouraging gem-to-industrial ratios, but no large stones were recovered. These test results, along with supporting mineral chemistry data, suggest that the Sloan Ranch complex is analogous to sub- economic occurrences located near the margins of the Archean cratons in southern Africa.

Jan 1, 1987

The OptiPit® software program is developed based on expertise gained at the Colorado School of Mines (CSM) using Mixed Integer Linear Programming (MILP) techniques. This program has been developed to satisfy the need in the mining industry for a multi-time period schedule and cutoff grade optimization tool that handles large scale open pit and underground mining operations involving many dumps, stockpiles, complex processing options and blending requirements. The current software (or earlier development versions) has been beta tested and used on various large scale projects within Placer Dome Inc., Newmont Mining Corporation, and Phelps Dodge Corporation since 2003. Through the use of this software, these companies experienced additional value creation by optimizing mine sequences, cutoff grades, material process flows and stockpiles under complex operational and processing constraints. This paper will present simple case study results to demonstrate the power of OptiPit® when used as a cutoff grade optimization tool. Furthermore, the paper will show, by example, how significant the difference in the Net Present Value (NPV) of a given project can be, depending on whether results are obtained by way of cutoff grade optimization using OptiPit®, or by using traditional breakeven cutoff grade approach.

Jan 1, 2007