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By Moussa Wone, V. Nasri, F. Guimbal, D. Andre

The Magenta underground station was constructed in the heart of Paris in saturated soft soil and at shallow depth. To investigate the surface settlement and the deformation of the concrete liner, innovative techniques combined with a vast campaign of monitoring were applied. The monitoring data and a simple three-dimensional ?nite element analysis were used to assess the accuracy of the two-dimensional ?nite element model originally utilized in the design of the station. The deformation of the concrete liner was monitored using vibrating wire extensometers. Their performance was validated by the data obtained from monitoring and also by a simpli?ed ?nite element analysis.

Jan 1, 2003

By R. E. Lindstrom

The mineral bastnasite is utilized to describe alternate processes for the extraction and separation of the rare-earth elements by solvent extraction. The rare earths can be acid-leached directly or fused with NaOH before acid leaching. Cerium, the major constituent, can be recovered by fractional precipitation, fractional leaching, or solvent extraction with tri-nbutyl phosphate. The latter process is capable of producing 99.5-percent pure CeO2 at 98+ percent recovery. Lanthanum is subsequently recovered by fractional precipitation or solvent extraction with a nitrogen-based extractant. A 20-stage mixer-settler operation with a primary amine extractant results in a 95-percent pure La203 fraction at 96 percent recovery. Europium is amenable to extraction from most of the remaining rare earths with an organophosphate extractant. Selective stripping of the europium, followed by reductive precipitation, produces high-purity Eu203. Another possibility for europium purification involves the differential extraction of europium with an amine followed by a sub- sequent reducing strip. Separation of the remaining elements is more difficult but can be accomplished with amine or quaternary ammonium extracts. Typical separation factors achieved are 3. 8 for praseodymium-neodymium and 10. 5 for neodymium-samarium.

Jan 1, 1967

By Bradley Johnson

Introduction Since its creation in 1910, the Bureau of Mines has conducted a wide-ranging program of research on mining technology. Over the years, the Bureau has perhaps become best known for its accomplishments in mine health and safety technology, a field that has been the object of much public attention. Nevertheless, the Bureau's program in other areas of mining technology has always been strong and remains so today. A distinguishing feature of the current effort is its tendency to concentrate on high-risk, high-gain projects. Throughout the federal research establishment, the Administration's policy has been to phase out short-term research that could be performed by private industry, in favor of long-terms projects that industry cannot usually afford to fund. This tendency is evident in the following account of the highlights of the Bureau's current mining technology research program. Underground Mining Technology Fragmentation. Research studies on fragmentation have focused on nonexplosive concepts. If successfully developed, these concepts would lend themselves to continuous automated operation and reduce time and costs of fragmentation in underground mines. A special laboratory-scale device to investigate ripper cutting was designed and fabricated in 1982. Experiments were conducted with large drag cutters to develop an efficient cutting technique for hard rock. Tests were successfully conducted with 76- and 152-mm (3¬and 6-in.) bits in rocks up to 138-MPa (20,000-psi) compressive strength. Because of the success of these initial tests, larger-scale proof-of-concept tests are planned. To prepare for these tests, a tester capable of cutting a 1.8-m (6-ft) opening was fabricated. This device will allow ripper cutting to be carried out at full scale, and will also allow mucking and holddown requirements to be investigated. Preliminary estimates indicate that this concept has the potential to double excavation rates while reducing costs up to 30%. Mobile Hydraulic Monitor. A mobile hydraulic monitor system was designed, fabricated, and used to mine the St. Peter sandstone at an average rate of 22 t/h (25 stph) from a face in Martin-Marietta's foundry sand mine at Clayton, IA. A slurry transport system worked in tandem with jet cutting, resulting in a continuous mining and transport system. Problems with spray from the jet hitting the sandstone showed that a remote-controlled mobile monitor was needed at a station 15 m (50 ft) from the face, so the operator would have a clear view of the face and be safely out of the backwash. Crushers. Research on crushing systems to improve efficiency in underground mines is continuing. Final testing of a low-profile, portable crusher for underground applications has begun. A system for handling oversize feed to the crusher was conceived and tested. Underground crushing systems, portable enough to be kept near the face, offer considerable improvement in materials handling because main haulage by conveyor is often less costly. Hoists. Research to increase hoisting efficiency and speed and to reduce energy requirements has led to experimental ore skips. The skips feature guide rollers to improve riding characteristics, bearing improvement at critical locations, and weight savings of about 1.8 t (2 st). An experimental aluminum skip was installed last year at Kerr McGee's Church Rock mine. Performance is being monitored under production conditions. A portable service hoist for low-cost, efficient movement of men and supplies in raises between mine levels was designed, fabricated, and tested on the surface. The hoist has maximum equipment payload of 570 kg (1,250 lb) at

Jan 11, 1983

By Pierre Mousset-Jones

I wish to submit this discussion item on an article published in the August issue of MINING ENGINEERING by Wala and Altman on the use of canonical diagrams for mine ventilation networks. The advent of computer graphics and plotting has enabled complex underground mine layouts to be displayed and plotted in a variety of three-dimensional formats that very closely represent the actual mine layout. This enables the ventilation engineer, who is familiar with the mine, to display the network pressures, quantities, resistances, and fan locations in a way that can be understood by everyone working at the mine. This is important if the ventilation engineer needs to discuss changes in ventilation with production personnel, or escapeway procedures with union personnel. While I can see some of the potential advantages in the canonical ventilation network diagram described by Dr. Wala, it appears to me that the fact that the diagram has no visual equivalence with the actual mine layout means that most mine personnel will find such a diagram almost incomprehensible. The authors have alluded to certain advantages with the canonical diagram. However, I find it difficult to see that these outweigh the fact that almost everything listed can be duplicated in isometric diagrams, and in a manner that is easily understandable to everyone in the mine from the miner to the mine manager. Perhaps the authors could show a clear example comparing an isometric with a canonical portrayal of a mine network showing the information that is immediately available from the canonical network that is not obvious in the isometric diagram. There is in this country a severe problem with the need for ventilation engineering and expertise to be used and accepted by mine management as a necessary part of mine planning. It seems to me that to introduce the requirement for further explanation so that management can understand a canonical network display will hinder more than help the recognition that ventilation engineering needs at so many mines in this country. However, I can see that the canonical approach does have its place in assisting the practicing mine ventilation engineer, wherever he or she exists in the organization chart for a typical mine. In this case, could the authors please indicate the availability of the computer program to compute and plot the canonical diagram for a mine ventilation network.

Jan 1, 1990

By W. R. Reed, S. Klima, J. Driscoll, T. W. Beck

"Tests were conducted to determine properties of four foam agents for their potential use in longwall mining dust control. Foam has been tried in underground mining in the past for dust control and is currently being reconsidered for use in underground coal longwall operations in order to help those operations comply with the Mine Safety and Health Administration’s lower coal mine respirable dust standard of 1.5 mg/m3. Foams were generated using two different methods. One method used compressed air and water pressure to generate foam, while the other method used low-pressure air generated by a blower and water pressure using a foam generator developed by the U.S. National Institute for Occupational Safety and Health. Foam property tests, consisting of a foam expansion ratio test and a water drainage test, were conducted to classify foams. Compressed-air-generated foams tended to have low expansion ratios, from 10 to 19, with high water drainage. Blower-air-generated foams had higher foam expansion ratios, from 30 to 60, with lower water drainage. Foams produced within these ranges of expansion ratios are stable and potentially suitable for dust control. The test results eliminated two foam agents for future testing because they had poor expansion ratios. The remaining two foam agents seem to have properties adequate for dust control. These material property tests can be used to classify foams for their potential use in longwall mining dust control. IntroductionAbout one-half of U.S. underground coal is produced by longwall mining, which allows for mining high volumes of coal but generates significant amounts of coal mine dust. This can lead to overexposures for longwall miners and possibly occupational respiratory diseases, including black lung and silicosis, which have no cure and can be disabling or fatal. The only method to avoid these occupational illnesses is through elimination of exposure to respirable coal mine dust and crystalline silica (quartz). The current occupational exposure limit for respirable coal mine dust is 1.5 mg/m3 during each shift that a miner is exposed in the active workings of the mine or in mine facilities (Mine Safety and Health Administration (MSHA), 2015a). When respirable quartz is present, the mine must maintain average concentrations at or below 0.1 mg/m3. If the mine exceeds the 0.1 mg/m3 respirable quartz dust concentration, then the applicable respirable dust standard is reduced, calculated as 10 divided by the percent quartz present (MSHA, 2015b)."

Jan 1, 2018

By Paul Soros

The Conneaut, Ohio, terminal of the Bessemer & Lake Erie Railroad was the first rail-to-ground-to-water coal terminal on the Great Lakes. Compared to the traditional method of holding coal in railroad cars at the ports for dumping their contents into vessels, it provided for: a. Immediate train turn-around independently of vessel arrivals. b. Winter storage of coal at the port, permitting year round shipment by the mines and year round operation of the railroad.

Jan 1, 1969

By Koehler Stout, Leroy Friel

INTRODUCTION Hydraulic sand fills have been extensively used in the United States in deep metal mines since 1940, and hydraulic fills have been placed in coal mines in Europe for many years. Numerous surface hydraulic fills exist in Appalachia for the disposal of coal mine waste and throughout the United States for the disposal of other mining, manufacturing, city, and paper company wastes. Hydraulic fills, as they are now deposited in stopes in mines, are often deposited at near minimum density and hence provide very little support to stope walls and pillars. If the support strength of fills could be increased, perhaps ground conditions in deep mines could be improved making them safer and more efficient. Surface fills deposited at higher densities could be covered with top soil upon which grass could be planted. The purpose of this paper is to describe procedures where the support strength of hydraulic fills can be considerably increased, and the focus of the paper is on applications to deep mines. In deep mines the objective of increased fill strength is to reduce heavy ground problems, improve destressing techniques, reduce or eliminate rock burst incidences, provide better working conditions, provide wall support so that more or all ore pillars can be removed, and improve mine safety, efficiency, and reduce surface environmental problems. The authors have shown that it is possible to improve fill strength used in deep mines. This paper reports the slurry filling procedure, fill testing techniques, and some recommendations for application in deep mines. Some of the reasons for low strength hydraulic fills are:

Jan 1, 1979

By J. C. Norman

The boron review did not arrive in time for publication in the June issue. The United States was the world's largest producer and consumer of boron compounds during 1992. The US Bureau of Mines estimated that boron mineral concentrate and chemical production in the United States totaled 1Mt (1.1 million st) in 1992, yielding 521 kt (574,000 st) of B203 for a total estimated value of $333 million. That was about 20% less than 1991 revised production figures, and less in value by $107 million. The United States continues to provide essentially all of its own boron supply while maintaining a strong position as a source of sodium borate products and boric acid to foreign markets. Domestic employment in the mining and beneficiation of boron products in 1992 was about 900 people, the same as in 1991. In 1988, 1250 people worked in the boron industry. The Bureau estimated that total world production of boron in 1992 was about 3 Mt (3.3 million st), or about 1.2 Mt (1.3 million st)of B2O3. World production in 1992 was about equal to revised 1991 levels. US production Mines and processing operations in southern California were the only domestic sources of boron mineral concentrates and chemicals. US producers, in order of quantity of production, included:

Jan 1, 1993

By Jay Jones, William D. Rech

The Henderson Mine developed a water treatment system in 1985 to meet the NPDES requirements for its mine water discharge. Unacceptable levels of Zinc and Manganese formed the basis for the design and operation of the treatment system. Since initial start up, this system has reliably removed metals from the mine water and facilitated low cost compliance with water standards. The potential addition of a bio- monitoring requirement to the NPDES Permit in 1990 has added a second dimension to the metals removal process. This paper will review the history of Henderson's success at developing a low capital treatment system for metals removal and the anticipated effects of bio-monitoring upon this system based upon preliminary bio-monitoring screening.

Jan 1, 1991

By J. E. Oberholtzer, M. G. Fernald

INTRODUCTION Approximately six years ago the U.S. Bureau of Mines (USBM) developed a data acquisition system (DAS) specifically designed for measuring radon levels and other environmental parameters during studies of means to control radiation hazards in underground uranium mines. The DAS system records data in machine readable form using a paper tape punch, which represented the state-of-the-art at that time for a moderate cost output device. However, the use of paper tape as a recording medium for field studies is somewhat unwieldy. Reducing the raw data required either that the tape be shipped to a computer center equipped with a high-speed paper tape reader or that the tape be transmitted at low speed over the telephone lines to a remote computer. Transmitting, at ten characters per second, the data from a 10-channel DAS taking Four readings per hour would require about 30 minutes For each 24-hour day's data. Telephone lines from remote mine sites are often of marginal quality and data errors can be introduced during transmission. Paper tape punches are also prone to occasional punching errors. Both problems make it necessary to carefully check for and correct data errors, a process which is possible because each DAS produces an independent printed data record, but the error checking and correction process can be quite laborious. Aware of recent advances in microcomputer technology which have brought the price of a personal computer down to about the cost of a paper tape punch 5-10 years ago, the Bureau decided to explore the feasibility of using a low-cost personal computer in the field to process DAS data in real time. On behalf of the Bureau, Arthur D. Little, Inc., developed a simple interface circuit which permits an Apple II computer to accept data from one or two DAS units as it is being transmitted to the paper tape punches. Computer software converts each measurement to appropriate engineering units, e.g., radon concentration, Working Levels, air velocity, temperature, or barometric pressure. The computer also calculates 1-hour and 8-hour running averages of all converted data and prints those results as soon as they are obtained on a line printer located at the test site for immediate inspection. After development, the system was used continuously and successfully for a 5-month period at a Utah uranium mine. DAS DESIGN AND MODIFICATION Each of the two USBM data acquisition systems used in this work consists of two separate modules. A multiplexer module located below ground near the measurement transducers acquires signals from each of nine tranducers. Six input channels were devoted to measurements of radon or Working Level. The outputs of those transducers, photomultiplier tubes or G-M tubes, respectively, are digital pulse trains which are accepted directly by the mutliplexer. Three channels were used for environmental parameters--air velocity, temperature, and/or barometric pressure. Each of the environmental tranducers is fitted with dedicated linearizing and voltage-to-frequency conversion circuitry so that the outputs to the multiplexer are also pulse trains having frequencies of one tenth of the value of the measured parameter expressed in the appropriate engineering units. A 100-Hz reference signal was input into the tenth channel for use in monitoring system integrity and performance. All ten pulse trains are then timeseries multiplexed into a signal line for transmission to the above-ground data acquisition module. Above ground, the composite signal is de-multiplexed into ten separate lines, each of which is connected to a digital counter which converts the pulse train to a numerical value. The acquisition of each set of readings is initiated by an adjustable "scan cycle comparator" timer. The acquisition process proceeds in three phases. First, radon and Working Level channels are counted for an extended period of time, typically 5-10 minutes depending on activity, because of the low pulse rates involved. Then the other four channels are counted for ten seconds, and finally, all ten readings, along with the Julian day and time of day are output serially onto paper tape and printed on a strip printer. When the scan cycle comparator reaches its preset time (15-minute cycle times were used in this work), it resets itself, initiates another readout cycle, and begins timing again. The only modification made to the data acquisition systems used in this work was to disconnect the scan cycle comparator in one unit, which became the "slave" and bring in the scan cycle comparator signal from the other unit, the "master", to initiate data acquisition cycles in the slave. Synchronizing the two data acquisitions in this fashion and using two slightly different radon counting times insured that the two systems never attempted to output data to the Apple II at the same time. THE APPLE II COMPUTER The Apple II computer used in this work was equipped with 48 KBytes of semiconductor random access memory (RAM), two floppy diskette drives, a Centronics Model 730 impact matrix printer and a modulator for driving an ordinary color television as a video display device. A single California Computer Systems Model 7720A dual 8-bit bidirectional parallel input/output (I/O) card was installed in the Apple to accept the digital data from both data acquisition systems. This card is

Jan 1, 1981

By E. F. Nelson

The 1970s have witnessed the completion and successful start-up of several new non-ferrous metallurgical operations in the Western Hemisphere which utilize large semi-autogenous mills in the grinding circuits. These facilities' are arranged either as single-stage circuits, or in a two-stage configuration n with ball mills. Another major concentrator, designed with an autogenous mill, ball mill, crusher (ABC circuit), is presently under construction and scheduled for start-up late this year. The large primary mills employed in these circuits have high diameter-to-length ratios and are designed to accept a very coarse feed, i.e., the product of a primary gyratory crusher, or run-of-mine ore. This characteristic obviates the need for a secondary-tertiary crushing plant or, in selected cases, even a primary crusher, which is a basic requirement in feed preparation for conventional grinding mills. This paper discusses three such grinding circuits and, presents operating data for two of them: the Island Copper Mine of Utah Mines, Ltd., near Port Hardy, British-Columbia,- and the Pueblo Viejo Cyanide Leach Plant of Rosario' Dominicana, S.A. on the island of Hispaniola. The design criteria for the Cyprus Bagdad Concentrator under construction' at Bagdad, Arizona, are also included. Data pertinent to these circuits are tabulated in the Summary.

Jan 1, 1977

By S. J. Schatzel, J. D. Addis, V. Gangrade

In longwall mining, ventilation is considered one of the more effective means for controlling gases and dust. In order to study longwall ventilation in a controlled environment, researchers built a unique physical model called the Longwall Instrumented Aerodynamic Model (LIAM) in a laboratory at the National Institute for Occupational Safety and Health (NIOSH) Pittsburgh Mining Research Division (PMRD) campus. LIAM is a 1:30 scale physical model geometrically designed to simulate a single longwall panel with a three-entry headgate and tailgate configuration, along with three back bleeder entries. It consists of a twopart heterogeneous gob that simulates a less compacted unconsolidated zone and more compacted consolidated zone. It has a footprint of 8.94 m (29 ft.) by 4.88 m (16 ft.), with a simulated face length of 220 m (720 ft.) in full scale. LIAM is built with critical details of the face, gob, and mining machinery. It is instrumented with pressure gauges, flow anemometers, temperature probes, a fan, and a data acquisition system. Scaling relationships are derived on the basis of Reynolds and Richardson numbers to preserve the physical and dynamic similitude. This paper discusses the findings from a study conducted in the LIAM to investigate the gob-face interaction, airflow patterns within the gob, and airflow dynamics on the face for varying roof caving characteristics. Results are discussed to show the impact of caving behind the shields on longwall ventilation.

By A. Subbotin

During developing the Ingulska mine at the Mi-churinske uranium deposit in the central part of Ukraine the radioactive rock dumps have been piled. A height of dumps reaches to 15-25m. They occupy a large territory and can be a source of covering with radioactive dust the area around the Ingulska mine. Uranium content exceeds 0,01% in all dump rocks samples while in the dust fraction samples it ranges from 0,01 to 0,06%. Uranium content in road dust at the dump?s foot reaches 0,137%. A new (for Ukraine) method of f-radiography of tree and bush leaves sampled at the territory about 100km2 has been used. It is based on fission of 235U nucleuses due to heat neutron influence in a nuclear reactor and on following study of the Lausan films with tracks drawn by the fractures of these nucleuses. Uranium content of the dif-fusion-disseminated dust type is (0.9-22.2)?10-6% while in the individual particles it can be considered much more because of burned holes in Lavsan above them. The dust content with uranium in Kirovograd reaches to 20-50 part/cm2 while near the dumps it ranges from 100 part/cm2 to 300 part/cm2 in the radius of 1,5-2km from the Ingulska mine.

Jan 1, 2005

By Douglas B. Silver

Addwest Minerals' turnaround of the Gold Road Mine in 1996 proves the old adage "mines are made, not found." The underground mine, located in Arizona's San Francisco mining district, was reopened in 1995. Start-up proved difficult because the initial mining method created significant ore grade dilution. With the operation's viability in question, only management's belief in the property and tenacity in the face of changing corporate ownership kept Gold Road from losing in the same year it opened. y changing mining methods in early 1996, Addwest re¬duced operating costs and created a profitable mine that continues to add to its reserve base.

Jan 1, 1997

By E. Watkins, S. J. SCHATZEL, K M. AJAYI, V. Gangrade, Z. Khademian

A stochastic discrete fracture network (DFN) model is developed based on mine site core log data to predict the horizontal and vertical permeabilities from the surface to the top of the caved zone at a longwall mining site in southwestern Pennsylvania. One hundred DFN realizations were generated to determine permeabilities for the isolated zone over an abutment pillar after mining the second panel. The results from this study show that the vertical and horizontal permeabilities from the DFN model agree closely with field measurements, which indicates that the resultant permeability obtained from the field measurements is representative of the predicted permeabilities. With this agreement, the aperture data for other zones of the mine could be obtained from the geomechanical model — specifically, for the fractured zone over the gob. Based on the successful validation of this model, this model could be further developed to predict the permeability of the fractured zone over the gob with fracture aperture obtained from the geomechanical analysis. This will complete the fracture characterization of the overburden, which could be used to predict potential shale gas flow to the mine in the event of a breach. This prediction could provide information on the associated risk of a casing breach and determination of methods to proactively prevent such an occurrence.

Feb 1, 2023

By John D. Elmes

The purpose of this paper is to describe the geology and the modelling work carried out to date. The Lisheen Zinc-Lead deposit was discovered in April, 1990. The deposit comprises two stratiform sulphide orebodies, hosted within the Lower Carboniferous Waulsortian limestone formation. The fully diluted geological resource is 22.5 Mt @ 13.02% Zn and 2.19% Pb, based on a total of 548 diamond drill-boles and 10,998 sampled core intersections. Due to the absence of a geological marker it was necessary to apply economic criteria to define and model the resource envelope. In common with other drill-hole geological databases, the establishment of a workable geological model presents unique challenges.

Jan 1, 1998

By K. M. Reim

Planning the development of the Quartz Hill molybdenum open pit mine in Southeast Alaska required a number of special considerations. Located in mountainous glaciated terrain, about 3.8 m (150 in.) of annual precipitation (with annual snowfall over 10.2 m (400 :in.) was a primary consideration. Mine planning included muskeg and snow removal, avalanche control, clearing timber, water quality control, dust control, seismicity, mine schedule, work force and reclamation. Quartz Hill is in an environmentally sensitive area which has required extensive environmental baseline data collection, four Environmental Impact statements (EIS) and a large number of permits.

Jan 1, 1988

By James C. Norman

The boron review arrived too late to appear in the June issue. The US was the world's second largest producer and the largest consumer of boron compounds during 1990. Boron mineral concentrate and chemical production in the US totaled 1.13 Mt (1.2 million st), including 565 kt (662,800 st) of boric oxide (B2O3) in 1990, according to US Bureau of Mines estimates. Total value amounted to $404 million. This was slightly higher in production than 1989 but down in value, reflecting a softening in boron product prices. Total world production of boron mineral concentrate and chemical tonnage in 1990 was estimated at 3 Mt (3.3 million st), which corresponds to about 1.3 Mt (1.3 million st) of BO,. World production in 1990 was about the same as in 1989.

Jan 1, 1991

The need for an integrated approach to optimization of unit operations in both the pit and the mill has long been recognized, but the complexity and nature of the overall problem has up to now resisted solution. This paper reports on a modeling methodology which couples symbolic and numeric computing to unify operations in both the pit and mill. The ultimate goal of this work is to optimize all operations that are influenced by blasting. Blasting plays a key role in all facets of operations. Obviously, drilling and blasting costs are determined by blast design, but the down-stream costs that are closely related to blasting results are often treated as separate functions: loading, hauling, cleanup, and crushing and grinding are all heavily influenced. Diggablilty and bucket fill factor are a function of fragmentation, the condition of the floor and uniformity in the shape of the muck pile. Likewise, cycle times and loading delays partially determine haul cycles, while fragmentation distribution and size determines the efficiency of truck loading. Removal and breakage of oversize causes loading delays and increases cleanup costs. The influence of blasting doesn't stop at the crusher. Mill productivity, power consumption, and maintenance are a function of the feed. Even at the SAG mill a reduction of a critical particle size during blasting can increase throughput. Thus, a bottle-neck for production far removed from unit operations in the pit can be alleviated by a modification in blast design. The question is: how do we optimize blasting with respect not only to itself but to al\ related mining and milling operations? For that matter, how do we even model blasting so that we can control the results of a blast?

Jan 1, 1991

By M. Visnjic

Open Pit Mine Production scheduling under commodity price uncertainty suffers from an exponentially increasing problem size as simulations and real options flexibility are used to generate and evaluate multiple production schedules. Robustness evaluation techniques attempt to evaluate a production schedule that is generated on a single set of economic parameters against several varying prices and sources of uncertainty. This approach is invalid as the corresponding optimal LOM mine plan will change for each set of evaluation parameters. Using commodity market futures and treasury bonds as production schedule economic input parameters provides fully price and time-value-of-money risked scheduling parameters that maintain a deterministic problem size. This paper will provide comparative analysis of project NPV’s coming from traditional price uncertainty evaluation based on a single fixed LOM mine plan using varying prices versus evaluation based on varying LOM plans that are both generated and evaluated using varying prices. When cross evaluating constant price mine plans against simulations, the upside potential and downside risk of a project are significantly misrepresented. INTRODUCTION The life of mine (LOM) production scheduling problem seeks to answer the question of from where and when to extract a given block within the ultimate pit limit as well as where and when to process it. Solving this problem takes into account the constraints of extracting any particular block while seeking to maximize the net present value (NPV) of the mineral asset as a whole. A direct driver of the value of a block, and there for the entire asset, is the market price of the commodity in question. Complications arise when an optimal production schedule is attempted to be solved under price uncertainty. Many solution methodologies have been proposed in an attempt to optimize under this criterion, yet there are three salient aspects that are overlooked during this process. They are: • Generating a single production schedule and evaluating it against many simulated price paths. • Failing to understand the mechanism describing particular commodity price behavior • Inappropriate risk adjustment In an effort to address these aspects of production scheduling under commodity price uncertainty, we propose a methodology to define the economic parameters as input that is applicable to most if not all production scheduling approaches. This methodology will not only simplify the production scheduling process in terms of establishing block value but utilizes the risk adjustment of real options valuation to avoid the arbitrary blanket risk adjustment of traditional discounted cash flow valuation. Our findings conclude that attempting to optimize around individual price paths is futile and using a market risk adjusted single price forecast provides a justified economic basis for production scheduling while maintaining the same problem size as a deterministic production scheduling problem.

Jan 1, 2019