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By Derek du Preez, Andrew Hall, Timothy M. Pelech

Net Present Value (NPV) derived from Discounted Cash Flow (DCF) analysis remains the dominant metric for evaluating mining projects despite its well-documented inability to capture managerial flexibility under uncertainty. DCF assumes that all risks are perfectly priced by financial markets. This is an unlikely assumption for volatile commodity prices, geological variability, or the array of mining technical and operational risks present on all mine sites. Real Options Analysis (ROA) was developed to remedy this limitation by explicitly valuing the ability of managers to defer, expand, scale, switch, or abandon investments as new information emerges, and to capture upside and mitigate downside risks. While ROA is philosophically correct and routinely shows an uplift in project value compared with DCF, its practical application at industrial scale is severely constrained, ROA faces the reality of a combinatorial explosion in complexity of decision trees, Monte Carlo simulations and other models required when multiple interdependent or sequential options exist across numerous mining zones and time periods. The AMC Hill of Value® (HoV) process adopts the same intellectual foundation as ROA, that flexibility has economic value, but operationalizes it through a far more robust and scalable architecture. It is built on parametric relationships, rapid scheduling, and multi-objective evolutionary optimisation. HoV can evaluate millions of compound, interdependent real options in a single optimisation run, delivering resilient, adaptive strategies that preserve managerial flexibility while simultaneously optimising NPV, mine life, risk exposure, and other corporate objectives. This paper demonstrates that HoV is the practical, industrial-scale embodiment of real options thinking in mining: it discovers, ranks, and translates the most valuable real options into strategic mine plans, overcoming the scalability barriers that have prevented widespread adoption of classical ROA.

Feb 22, 2026

By J. P. McKinney

Benchtop experiments were performed, in which an electric field was used to enhance separation of water from phosphatic clay suspensions from a central Florida mine. A constitutive relationship was established that relates the increase in solids content to operating time and the applied electric field. An upper limit to the degree of separation was found to be a function of electric field, and the time required to achieve this limiting value was also a function of electric field. The energy requirement for removal of water ranged from 1.25 to 175 Wh/kg water removed as a function of the electric field. A mathematical model was developed that provided good agreement to the experimental values and served to validate the constitutive relationship.

Jan 1, 2011

By Kyoosang Yoo

The report presents the results corresponding to the analysis of a lining system for tunnels in soil and soft rock in creep-active ground. The purpose of the analysis is to evaluate the performance of a lining at each construction stage. The steps include: 1. Accurate representation of the initial undisturbed state of stress 2. Excavation, 3. Lining installation 4. Injection of mortar and its curing, and 5. Short-, medium- and long-term creep behaviour in the surrounding soil/rock. The response of a prototype tunnel is simulated using the computational finite element framework MSC.marc2008.

Jan 1, 2010

By Charles W. Rountree

Industrial Engineering in the industrial world is a relatively new field, having been conceived about the turn' of the century by Frederick W. Taylor, who was not satisfied with the hit-or-miss methods of evaluation and estimation. Through crude Industrial Engineering techniques never before used, he completely changed the bricklaying industry so that work accomplished was more than doubled. To help us better understand what we mean by Industrial Engineering, I think a very simple definition Is in order. Industrial Engineering is a scientific approach to problems in cost, production and operations: and is designed to provide a means of increasing producitivity and reducing costs through standards measurement and standardization of the best methods, practices and equipment, There are many complicated definitions, but pure and simply, it all boils down to providing the means for increasing productivity and reducing the cost. Industrial Engineering has been applied in manufacturing since Frederick W. Taylor?s time and in the last 20 years has grown in stature by leaps and bounds. It is a basic function of successful manufacturing companies and is an accepted fool firmly entrenched in manufacturing organizations. You may know of some successful manufacturing companies that do not employ Industrial Engineers as such, but someone in that organization is doing Industrial Engineering work. They have standards and controls whether they call it Industrial Engineering or not. The manufacturing industry has benefited from this tool; other wise, it would have been discontinued long ago.

Jan 1, 1958

By T. W. Beck

Drilling into coal mine roof strata to install roof bolts has the potential to release substantial quantities of respirable dust. Due to the proximity of drill holes to the breathing zone of roof bolting personnel, dusts escaping the holes and avoiding capture by the dust collection system pose a potential respiratory health risk. Controls are available to complement the typical dry vacuum collection system and minimize harmful exposures during the initial phase of drilling. This paper examines the use of a bit sleeve in combination with a dust hog-type bit to improve dust extraction during the critical initial phase of drilling. A twisted-body drill bit is also evaluated to determine the quantity of dust liberated by comparison to the dust hog-type bit. Based on these laboratory tests, the bit sleeve may reduce dust emissions by one-half during the initial phase of drilling before the drill bit is fully enclosed by the drill hole. Because collaring is responsible for the largest dust liberations, overall dust emissions can also be substantially reduced. The use of a twisted-body bit has minimal improvement on dust capture compared to the commonly used dust hog-type bit.

Feb 27, 2013

Komatsu America International has introduced two new hydraulic excavators. They can work in congested and confined areas. The tight tail swing radius of the PC128US-2 and PC22-8USLC-2 enables the excavators to minimize the work space. The units can operate in confined work settings that are inaccessible or counterproductive to traditional machines. Even the door is designed for tight working conditions. A convex door slides open along the exterior curve of the cab, rather than swinging out on hinges past tracks. And the excavators’ tight tail swing design allows them to load within the track width of the machine.

Jan 1, 2000

The MINER Act of 2006 mandated that all underground coal mines must install and maintain refuge chambers. Refuge chambers serve as a temporary shelter in case of emergency. Several factors affect the performance of a refuge chamber: heat production inside the chamber and introduction of CO when chamber doors are opened are two major factors. This study examines the CO purging process and to determine total air quantity and time necessary to lower the CO con-centration to safe levels for different inlet/outlet configurations using three-dimensional simulation technique. The study uses Reynolds Averaged Navier Stokes and continuity equations along with the spe-cies transport model assuming uniform air mixing. The heat transfer of any kind is neglected and the purging process is assumed to take place isothermally. The standard k-e model is utilized for simulating turbulence in the flow field. This research provides useful guidelines in developing an efficient strategy for purging refuge chamber. Keywords: Airlock chamber, Purging, Carbon monoxide, Turbulence

Feb 27, 2013

Mine design and selection of ore processing capacity depend upon a correct estimate of the grade-tonnage distribution. The estimate must reflect what can be recovered and processed. The McCoy/Cove operation in central Nevada, USA, is a gold and silver mine. Case studies of recoverable reserve estimation for gold and silver were made using multiple indicator kriging and the log-affine variance correction. From this model, the grade-tonnage distribution was constructed. Optimal pits were generated by utilizing the distribution, and the results were compared with the pit generated by ordinary kriging. Studies indicate that the proposed method for multi-metal recoverable reserve estimation is more accurate than ordinary kriging in terms of both tons and the grade. Using recoverable reserves for mine design will maximize global recovery of mineral resources.

Jan 1, 1997

By Edie Trimmer

Utah statute defines sovereign lands as "those lands lying below the ordinary high water mark of navigable bodies of water at the date of statehood, and owned by the state by virtue of its sovereignty." The lands within the bed of Great Salt Lake (GSL) are, by this definition, sovereign lands, acquired at statehood in 1896 in accordance with the "equal footing" doctrine, granting each state control and ownership of navigable waters and the lands underneath those waters within its borders. Under public trust doctrine, the state, as trustee for the people, bears responsibility for preserving and protecting the right of the public to use of the waters for navigation, commerce, fishing, recreation, and wildlife habitat. Also by statute, sovereign lands are defined as "state lands," to be managed by "multiple use sustained-yield principles." The Division of Forestry, Fire and State Lands is given management authority for sovereign lands and, as manager, has responsibility to prepare comprehensive plans, initiate studies of the lake and its resources, implement comprehensive plans through state and local entities, and coordinate the activities of various divisions within the Department of Natural Resources (DNR). The Division of Forestry, Fire and State Lands also has responsibility for management of mineral leasing on sovereign lands. The many resources on the lake--water, minerals, wildlife, recreation, archeological and historical values--are managed by as many state agencies which occasionally creates conflicts. The brines of GSL contain several ions that crystalize into valuable minerals during evaporation. The major ions in the lake are, in order of relative abundance, chloride, sodium, sulfate, magnesium, and potassium. Mineral products which are currently extracted from lake brines are sodium chloride, magnesium chloride brine which can be sold as flake magnesium chloride or further processed into magnesium and chlorine gas, and potassium sulfate. Mineral products which have potential for extraction include gypsum, sodium sulfate, and trace amounts of lithium, boron, and bromine. The GSL contained an estimated 4.3 billion short tons (st) (3.9 billion metric tons [mt]) of dissolved salts in 1998. Utah Geological Survey (UGS) estimates of the dissolved salt content in GSL have fluctuated from 4.0 to 5.5 billion st (3.6 to 5.0 billion mt) due to the dynamic conditions in the lake as salts are precipitated and redissolved, and due to the diversion of brines from GSL, such as the West Desert Pumping Project. The lake has four areas of varying salinity, separated by dikes or other man-made structures: north arm and Stansbury Bay brines at near saturation (25 to 27 percent total dissolved solids [TDS]); the main body of the south arm with concentrations ranging from 7 to 15 percent TDS as lake elevations fluctuate; the waters in Farmington Bay at approximately 3 to 5 percent TDS; and Bear River Bay at <1 to 7 percent TDS. The percent TDS in Bear River Bay fluctuates with lake level, and changes in Bear River inflow. The transfer of salts from the south arm to the north arm has raised questions about the viability of the mineral and brine shrimp industries. The UGS and the U.S. Geological Survey (USGS) continue to monitor salinities at designated sites on the lake to document changing lake salinity. A recurrent theme is that placement of dikes and diversions can have significant and rapid impacts on various conditions in the lake. Hydrocarbon resources on the lake are significant, but presently undeveloped. The hydrocarbons are low gravity (4 to 9 degree API) and tar-like, contain high nitrogen concentrations, and up to 12 percent sulfur. The unusual characteristics of the oil have been the subject of studies by chemists at Weber State University and University Louis Pasteur de Strasbourg. However, these resources are difficult, and at present, uneconomic to extract using current technology because of the nature of the hydrocarbons, and production in "an offshore, highly saline environment." Oolitic sand deposits make up many of the beaches and shorelines around the lake. Because of their high calcium carbonate content, oolites have been used by Magnesium Corporation of America (MagCorp) and its predecessors for acid neutralization and dike construction. Oolites are also used in very minor amounts in flower drying. The Utah Division of Oil, Gas and Mining reports up to 130,000 st (118,000 mt) mined annually by MagCorp from U.S. Bureau of Land Management (BLM) lands adjacent to GSL. Currently, there are twelve producing mineral leases which generated slightly more than $1,000,000 in royalties during calendar year 1998. IMC Kalium Ogden Corp. (IMC Kalium) produces potassium sulfate and magnesium chloride from brines concentrated through solar evaporation in Bear River Bay and Clyman Bay. By-product sodium chloride is transferred to IMC Salt, which packages and sells the salt. MagCorp produces magnesium metal from brines concentrated in Stansbury Bay. Cargill Salt produces sodium chloride from brines provided by MagCorp under a lease agreement. Morton Salt produces salt at the southeast end of Stansbury Island. Lastly, North Shore Limited produces cocentrated brines for use in dietary and mineral/vitamin supplements near Spring Bay in the north arm of the lake. Producers of magnesium, potash, and salt from GSL contribute significantly to the value of metals and industrial minerals in Utah. Together these companies contribute approximately $240 million in gross value, or 18 percent of the value of the state&apos;s nonfuel mineral production. Most of this production is exported.

Jan 1, 2001

By A. K. Kelly

Potash was first discovered in Saskatchewan in 1943 but its continuous extraction did not begin until 1962. In the years since then, potash has played an important role in the economic and political life of the province. And, as is well-known, the most eventful time in the life of the industry occurred in 1975 when the Government of Saskatchewan decided to become a major participant in potash production. To understand that decision, however, requires an understanding of the economic development of Saskatchewan and of relations between the industry and the government prior to 1975. This year, Saskatchewan celebrates its 75th year as a province. For most of those years, we have been an agrarian economy and society, dependent on exports of cereal grains, mostly wheat, for a livelihood. Even today, agriculture accounts for about 25% of the province&apos;s Gross Domestic Product (Economic Review, 1979, p. 7) and difficulties in agriculture spread rapidly to the rest of the provincial economy. The difficulties and risks that go hand in hand with being a "one crop" economy were known as long ago as 1920 but were not fully appreciated until the combination of depression and drought in the 1930&apos;s turned the prairie grain- belt into a dustbowl. Some idea of the severity of the depression is revealed by the following data: in 1928, Saskatchewan produced 321 million bushels of wheat. By 1931, the total fell to 132 million bushels and, in 1937, to a mere 37 million bushels. The value of agricultural products sold off farms fell from $273,000,000 in 1928 to a meagre $51,000,000 in 1937. The impact of such a fall of agricultural incomes was catastrophic since about 70% of the population of some 921,000 persons lived in rural, agriculture-dependent areas (Britnel.1, 1939, p. 14).

Jan 1, 1980

By O. A. Bascur

In recent years, metal-producing companies have increased their investment in automation and technological innovation, embracing new opportunities to enable transformational change. Transformation to a digital plant can fundamentally revolutionize how industrial complexes operate. The abundant and growing quantity of real-time data and events collected in the grinding and flotation circuits in a mineral processing plant can be used to solve operational issues and optimize plant performance. A grade recovery model is used to identify the best operating conditions in real time. The strategy for increasing the value of instrumentation in current plants is reviewed. An optimal Gaudin size distribution model provides augmented information from traditional sensors to find the optimal grind cut size to reduce metal losses in the flotation circuits. Sensors in flotation circuits enable an estimate of the recovery and determination of the optimal froth depth and aeration using an air hold up flotation model. A strategy of classifying data for on-line generation of insights to using operational intelligence tools is described. The implementation of a recovery/grind strategy with industrial examples in non-ferrous mineral processing is presented.

By C. Haycocks

The evolution of longwall mining is briefly traced from its inception in England in the 1620&apos;s. In the beginning this method recovered 90% of coal with roof closure controlled by packs and walls. Mechanization began with kerf cutting, crude face conveyors, and improved face support. Full face mining was accompanied by the introduction of self-advancing hydraulic supports. U.S. longwalls evolved a retreating system to recover blocks of coal outlined by room and pillar panels. Computer control combined with the most modern technology has greatly increased productivity. Past trends are used to predict future technological directions.

Jan 1, 1997

By Carl G. Schwenk

Rusk County is located in the northwestern portion of the state of Wisconsin, roughly 130 miles east of Minneapolis (Figure 1). The topography is generally flat with dairy farming the principal activity. Forest and swamp lands are common, as well as pasture and cultivated ground. Rusk County falls near the southern terminus of the Precambrian Shield and is covered by a thick layer of glacial drift. Outcrops are quite rare, but the few available exposures indicate that the subsurface is comprised of steeply dipping metamorphosed volcanics and sediments of Early Proterozoic age. A thin section of flatlying Cambrian sandstone is sometimes found directly under the glacial till. The depth to Precambrian basement has been recorded to be as great as 150 feet beneath the surface.

Jan 1, 1976

By M. C. Roberts

Currently, mineral producers are suffering through a major downturn in prices for their products, even though it has only been a few years since they were enjoying high prices. From an historical perspective, the current situation is another of the cyclical down-turns that often reoccur every 5 to 7 years or so. This paper uses time trend decomposition techniques to identify the cycles and statistical methods to find the duration of these cycles for a variety of mineral prices. Given some idea of how long and severe these cycles typically are, the mining industry can better plan to weather the downturns and take advantage of the upturns. For example, timing investments in new projects to take advantage of the cyclical upturns can dramatically improve project profitability.

Jan 1, 2000

According to the previous research, it is found that the thickness of cover is mostly less than 100 m for highwall mining system. However, for most of the Chinese surface coal mines, the mining depth is over 150 m; on the other hand, the shovel-truck is the most common mining technology. As a result, a lot of residual coal will be remained around end-walls. Considering these facts, the calculated methodology of highwall mining system under thick cover is presented in this paper. Meanwhile, numerical simulation of highwall mining system under thick cover was carried out. The outcome shows that the calculated methodology for pillar stability of highwall mining system under thick cover presented in this paper is acceptable. In other words, the highwall mining system is feasible to extract the residual coal around end-walls in Chinese surface coal mines. Thus, not only coal recovery ratio can be improved, but also can increase the production life of surface coal mines in China.

Jan 1, 2012

By M. Howe

This is a study of the impact of cyanide from mining waste on riparian communities, primarily vegetation, near Whitewood Creek, down-stream from Homestake Gold Mine in Lead, South Dakota. Cyanide is used in gold processing and the effluent, until fairly recently, was discharged directly into Gold Run Creek which empties into Whitewood Creek. Vegetation, soil, and water were collected from four different sites over a six month period, and samples tested for cyanide concentration. Data indicate a relationship between cyanide in soil and its uptake by certain plants, also, that the Homestake cleanup effort has made the stream viable again.

Jan 1, 1983

By J. R. Hunter

The present is rooted in the past. This is particularly true in the case of mining operations. Coal mining in the United Kingdom is considered an old Industry comprising today 246 Coal Mines many of which have worked coal reserves in their locality for over 100 years. More than half the current producing mines lie in the Yorkshire and Midlands coalfields. They are in the oldest age group and produce 70% of the Industry&apos;s output. Some 50% of the remaining U.K. workable reserves amounting to approximately 98,000 million tons are still available to these regions. Fig. 1 Over the past two decades a gradual erosion of demand for coal in the U.K. has virtually halved the Industry&apos;s capacity. The number of Mines has reduced by 53% during the past 10 years. Productivity has increased by some 42% mainly through improvements in the central coalfields which has enabled costs to remain broadly competitive with oil.

Jan 1, 1976

By Richard E. Steffens

The underground portion of Duke Power Company&apos;s Bad Creek Pumped Storage Project in northwestern South Carolina consists of a powerhouse cavern (132 m. long, 23 m. wide, 50 m. high), 407 meters of shafts and approximately 3615 meters of tunnel, both lined and unlined, with diameters varying from 4.2 meters to 9.0 meters. A case history is presented, including the early pilot tunnel exploratory work and how this affected design, the design of the project, and the excavation, rock support and tunnel lining work. Problems and experiences encountered during the construction are given. The effects of high horizontal insitu stresses in the granitic gneiss are discussed along with solution taken.

Jan 1, 1989

By W. Choi

The present study revealed that the bioleachability of a chalcopyrite flotation concentrate is influenced by the semiconductor properties of CuFeS2. The overall reaction of biooxidation,

Jan 1, 1991

By N. P. Widodo

The ventilation measurements by tracer gas method at Pongkor gold mine show that effective diffusion coefficient, E, at straight airways indicated a similar range of measured one by the laboratory experiments which can be estimated by Taylor equation. On the other hand, E of the curved airways in the mine was estimated as larger than that of the straight ones (1.5 to 32 times than that obtained by the Taylor equation and these have been compared with the data measured in Kushiro coal mine, Japan). The curved mine airways, with small curvature against airway radius and complex velocity profile, possibly give concentration ? time curves with long tailings, thus those airway conditions could make larger E. Laboratory experiments of gas diffusion by a pulsed injection of small amount gas, into straight and curved airways, have been conducted in order to investigate a range of E in mine airways. The plots of E against Reynolds number show that the present laboratory results of straight-long airways are almost close to one calculated by Taylor equation. On the other hand, the values of E measured at curved single-direction airways were smaller than that of the straight airways, which may be due to effects by secondary vortexes flow in the curved airways.

Jan 1, 2009