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By Connor Langford, Murray Gant, Ken Massé

For public organizations, preparing accurate project cost estimates is a critical component in capital project planning. Project delivery methods provide a structured approach to moving projects through the design and construction lifecycle, and typically use cost estimates as key inputs at each stage to determine if the project will advance. As design stages can occur years or even decades before construction contracts are awarded, estimates need to make reasonable assumptions about how the work may be executed (means and methods) as well as potential future market trends so that appropriate values for material pricing, labour costs, escalation, and owner’s costs can be included. This process is challenging enough during stable markets, as historic trends can often be misleading and require a suitable understanding of economic factors to use appropriately. When you mix in the market volatility that has been observed since 2020, developing accurate project cost estimates becomes even more challenging. In cases such as this, having a structured approach to cost estimating that includes an adequate risk-based reserves cannot be overstated as it provides the basis for ongoing project decisions. This paper explores some of the historic and more recent market trends that have impacted key aspects of project cost estimates for capital project planning. It also provides recommendations on how to develop cost estimates for infrastructure projects, with examples from Metro Vancouver, which plans for and delivers regional-scale services to 2.6 million residents. A brief commentary on the use of escalation clauses in contracts is also presented.

Jun 13, 2023

By Earl M. Frizzell

This paper addresses considerations for the use of artificial support of pit walls in surface mines, a new project of the Bureau of Mines. Results to date indicate that a polymer-coated cable with embedded grit could provide good anchorage for stabilizing benches and highwalls, and an electronic method of recording discontinuities in the field is being reviewed and developed for application to mining. The objectives of the work in progress are to define the engineering parameters and evaluate the concepts for artificial supports in order to provide safe working environments when pit slopes are steepened to increase ore recovery and reduce overburden handling.

Jan 1, 1986

By Gary L. Nelson

An overview is provided of Franklin Industrial Minerals mica mine and plant operations located near Velarde, New Mexico. Operated by Franklin Industrial Minerals since July of 1990, several process and product modifications have been developed and instituted to improve the operation. In addition to a brief history of site operations, descriptions of the mining, beneficiation, delamination grinding, and product classification processes are reviewed. Supportive topics discussed include equipment modifications and improvements, product application diversification, and specific product characterization. Also reviewed are the key areas of safety, environmental responsibility, and programs pertaining to process quality control and product quality assurance.

Jan 1, 1994

By S. Kenzap, V. Kazakidis

Risk assessment is an essential component of mine feasibility studies. However, it is often challenging to identify the appropriate analysis and derive the required input data. The uniqueness of a mining project and the associated technical issues require customization of the risk assessment approach to meet both requirements and characteristics. The uncertainty driving the operating risk in mine feasibility studies and its assessment through Monte Carlo simulation as a component of a cash flow analysis are discussed in this paper. The paper introduces the use of the analytic hierarchy process for derivation of qualitative input and conducts quantification of the three main sources of operating performance delays, equipment, ground and schedule problems, in a cash flow simulation. A methodology for the assessment of operating risk in mine feasibility studies is presented.

Jan 1, 2011

By G. Perkins

The development of the mineral industry of Jamaica has been guided by an unwritten policy which has nevertheless been reflected in various pieces of mining legislation and by case-by-case approvals of incentive packages for non-bauxite minerals. An effort has now been made to bring together in one minerals policy document, all the policy elements that have guided our laws and actions thus far and to upgrade the final version to meet the challenges of the next century. In this regard, industrial minerals will be placed on a more equal footing with bauxite, especially in terms of investment incentives.

Jan 1, 1998

By C. Konya, A. Konya

"INTRODUCTION Over the past twenty years this Linear-Regression Modeling has become widely accepted for ensuring limits are not exceeded at a site, using the Scaled-Distance variable. In today’s industry, numerous equations are present for different scenarios, geologic environments, hole sizes, and numerous other factors with an emphasis on site-specific equations developed for all major projects; however, underground blasting applications have not been analyzed to a great degree of detail. Without previous knowledge this puts underground blasting operations into a guessing-game to ensure that vibration levels are not exceeded. This paper will review two recent projects that have been worked on by the authors and linear-regression models that were used with both burn cuts and stope blasts. BLAST VIBRATIONS MODELING The first major research project conducted in the United States on blasting vibration was Bulletin 442 (Thoenen & Windes, 1942) which looked at the relationship between blasting and blast vibrations in the fall of 1940. This study examined numerous blasts and began the investigation into topics such as damping, structural damage from vibrations, frequency dependency on vibration, resonance vibration, delayed blasting, and numerous other factors. Bulletin 442 had two major conclusions which are: 1. The vibration from a blast can be predicted with a relationship of size of the shot and distance to the structure (now known as scaled distance) 2. “The vibration of a structure at resonance does not in itself cause damage because of the restraining effect of damping inherent in the building” (Thoenen & Windes, 1942) Due to the increase of blasting near homes and busier areas the USBM commissioned an additional study to further develop a few of the topics covered in Bulletin 442; this study would go on to be published as RI 6561 (Duvall, Johnson, Meyer, & Devine, 1963) with the study looking into delayed blasting and the relationship between charge weight, distance, and peak particle velocity of the blast. This relationship would be termed as the ‘scaled-distance’ and take the form of:"

Jan 1, 2018

By Silvia Misk, Cristina Araújo, João Felipe Costa, Roberto Rolo

Linear estimation methods are widely used for resource evaluation. Among the existing linear estimation methods, ordinary Kriging (OK) was accepted as the best estimator to determine the average ore grade of each block. However, OK is inadequate for modeling small blocks in relation to data spacing, resulting in over-smoothed models. In this study, the results of the recoverable resource from the short-term model are compared to estimated models generated by the traditional method, i.e., OK, and non-linear methods. The conclusion is that non-linear methods improve the accuracy and precision of the long-term model when compared to the model generated by OK.

Jun 25, 2023

By Jerry C. Tien

China?s remarkable levels of economic growth during the past three decades have lifted almost 300 million people out of poverty. This amazing achievement has placed an increasing demand on energy and minerals, especially coal, which supplies 68.7 percent of China?s energy (June 2011). It is estimated that China mined more than 3 Gt (3.3 billion st) of coal in 2010, three times as much when compared to merely 10 years earlier. Such an impressive achievement does not come without major costs ?? including concerns with mine safety and an increasing number of occupational illnesses due to fast growth. This article reports on one of the major safety concerns in China?s coal mining, dust and dust control practices, and known cases of caol worker?s pneumoconiosis affiliated with prolonged exposure to excessive coal dusts. The exact size of China?s mining industry is not known, but it is estimated the coal industry is at least five-million people strong, and the metal and nonmetals industry probably employs another three million people. To meet increasing energy demand, China mined more than 3.1 Gt (3.4 billion st) of coal in 2010 from its 15,000 plus coal operations1, most of which are small- to medium-sized operations with annual coal productions ranging from a few thousand tons to 300 kt (330,000 st). These small coal operations are typically in remote areas, inadequately engineered, poorly ventilated and still using rudimentary drilling and blasting mining methods employing antiquated mining equipment and, presenting safety concerns, i.e., methane and dust explosions.

Jan 1, 2011

"Iron ore is the source of primary iron for the world’s iron and steel industries. Its production can be reported as crude ore, usable ore or iron content of ore. Historically, the U.S. Geological Survey (USGS) used reported crude ore production from China in tabulations of world iron ore production while other countries have typically reported their production in terms of usable iron ore. When China’s crude ore production was tabulated with usable ore production from other countries, world iron ore production totals have been overestimated by 10 percent to a high of content and may include products such as concentrates, direct-shipping ore, pellets, and sinter.• Iron content, also referred to as metal content or grade, denotes the amount of elemental iron in the crude or usable ore.BackgroundIron ores consumed in the steel industry typically require an iron content greater than 58 percent before being considered commercially usable. Iron ores that are not commercially usable must undergo beneficiation to raise the iron content. Approximately 98 percent of the world’s usable iron ore production is consumed in blast furnaces to make pig iron, which is further processed to make steel.High-grade iron ore mines can supply usable iron ore, known as direct-shipping ore, to blast furnaces, with minimal physical processing and no beneficiation. With direct-shipping ore, the reported production for crude ore and usable ore are the same. Ore from low-grade deposits must undergo beneficiation to increase the iron content before it can be used by the steel industry. In this instance, the mined material is called crude ore and post-beneficiation concentrates are called usable ore; the amount produced will be less than the crude ore amount. With the notable exceptions of countries such as Australia and Brazil, most of the world’s iron ore deposits are low-grade and require beneficiation."

Feb 1, 2017

By C. Rutter, S. Nelson

"Climax Molybdenum Company’s Henderson Mine, owned by Freeport McMoRan Inc., is a panel caving molybdenum mine located 69 km west of Denver, Colorado. The mine utilizes long interconnected ore passes as part of the ore flow system. Knowing the approximate level of ore in these ore passes is beneficial for preventing increased dust concentrations in various production areas, as well as scheduling truck loading operations. Level monitoring has been achieved by using a strain gauge placed on the steel structure of the truck chute, an amplifier and a Programmable Logic Controller. This paper explains the concepts and limitations associated with using strain gauges for ore pass monitoring as well as applying proactive dust prevention and level monitoring interfaces. INTRODUCTION The Henderson Mine, located 69 km west of Denver, Colorado, is an underground molybdenum mine which uses a panel caving process to produce 18,000 tonnes per day currently. This process involves dumping ore down a series of interconnected ore passes leading to truck chutes. Trucks use these chutes to load ore and deliver this ore to an underground crusher. If ore is pulled below the lowest intercept of these ore passes, a ventilation pressure imbalance occurs which generates a large amount of dust on the levels where ore is being loaded into the tops of the ore pass. When a dust event occurs, work must be stopped until the dust settles. Once the dust settles the ore passes must be filled significantly before trucks can start pulling from the corresponding chute. This downtime and unplanned work due to dust can be avoided if the approximate ore pass levels are known. Strain gauges have been installed and tested on a truck chute at the Henderson Mine and the results of these tests have led to a series of concepts in using strain gauges to monitor ore pass levels. This paper explores these concepts and corresponding limitations and explains how the application of ore pass monitoring can be achieved with the use of strain gauges. Ore Pass and Ventilation Pressure Imbalance Overview At the Henderson Mine, there are typically two or four ore passes in different drifts that combine into one bin to create an ore pass complex as shown in Figure 1. When the level of ore is at or below the 7210 intercept (I82W), four drifts have a ventilation connection to each other and the 7655 exhaust level. A “piston effect” is created each time a bucket of muck is dumped down the ore pass. Figure 2 illustrates this phenomenon: as the loader in 621 dumps a bucket down the ore pass, the muck pushes the air in the ore pass down the 82A leg and back up the 82B leg which generates a large amount of dust. The bin regulators on 7655 cannot be opened enough to allow for this surge of air to be relieved onto the exhaust level and the dust ends up exhausting into the 625 and 627 drifts."

Jan 1, 2018

By Felicia F. Peng, Wenguang Wang

The purpose of this research work is to predict the dust concentration distributions of different particle sizes on longwall faces. This Is necessary because the dust sources must be identified before dust control techniques can be recommended and applied correctly. The dust concentration data at longwall faces were determined by using Real-time aerosol monitors (RAM-1) and gravimetric monitors. However, these field data cannot explain the nature or the mechanisms of dust flow phenomenon on longwall face. Therefore, a mathematical model Is developed taking Into account the characteristics of airflow, the natures of dust generation and particles, the mechanisms of dust transport and deposition as well as the multiple dust sources on the longwall faces. In this paper, the identification of respirable dust sources on the longwall faces are determined. The dust particle size distributions In various longwall faces are analyzed and classified. The comparison analyses of field data and model predictions are presented. Specifically, the general trends of dust concentration on the longwall faces obtained at different positions and at various conditions are discussed.

Jan 1, 1991

By J. C. Yingling, J. Sottile

This paper addresses detailed models of the temporal pattern of material flows produced by longwall mining units and procedures for inferring the parameters of these models from field data. First, a model is established that predicts material flows referred to shearer position and cutting element. This model is comprised of trend and fluctuation components. The trend component, which is invariant between repetitions of the cut cycle, accounts for deterministic effects on the flow pattern, such as web depth variation as a function of the cutting operation, systematic tendencies for seam height and cutting speed variations along the face, changes in the relative velocity between the shearer and face conveyor, etc. The fluctuation component models random effects on material flow and employs time series approaches. Subsequently, a method is given for converting the positionally-referenced flows to temporally-referenced flows. The model serves as a basis for generating detailed, accurate computer simulations of material flows from longwall units. As such, it provides a more rigorous foundation for analysis of cutting procedures and outby materials handling systems in longwall mines.

Jan 1, 1994

By Greg Struble

The Homestake Gold Mine is one of the deepest and most extensively developed hardrock mines in North America. The mine is divided into five divisions which produce a total of 1.7 million metric tons of ore per year. In the past, labor intensive mining methods such as open cut-and-fill, shrinkage, and timber stoping were utilized. In recent years there has been an extensive change to the more productive methods including Vertical Crater Retreat and Mechanized Cut-and-Fill. Also, the percentage of production from the lower divisions below the 4850 level is increasing while upper level reserves are beginning to decline. Combined, these factors have strained the ventilation resources to the limit. By early 1984 it became clear that future production trends would require a detailed study of future ventilation resources. By November of 1984 the Ventilation Department completed a study to project these future requirements. This paper will detail the first phase of a scheduled two phase upgrade: the installation of a new surface fan.

Jan 1, 1987

By Panlop Huttagosol

The use of computer models to design ultimate pit limit of an open pit mine during its feasibility study has become an emphasized procedure in mining. It is a normal practice in open pit mine design to generate the most profitable final pit limit. The limitations of designing this optimal pit limit have been the requirement of significant computing efforts as well as the use of complicated operations research techniques. In an attempt to describe a computer method that has an easy conceptualization and is able to provide a precise and desirable solution, a new technique is developed. The ultimate pit limit problem is formulated as a large scale transportation problem. The formulation is based on the use of a three dimensional block model to represent an ore body and surrounding materials. The solution technique is developed through solving the dual system of the formulated problem by using the adapted simplex algorithm of linear programming. The implementation on given case studies demonstrates that the new method is capable of providing an optimum pit value. The computing effort required by the algorithm is still the main constraint in solving a large scale problem. The technique provides open pit mine planners with an alternative tool in using a commercial linear programming software which is capable of solving a general transportation problem. The selected software must be able to handle a large scale problem, and it needs an additional effort td formulate the problem and transform a result into the ultimate pit limit solution.

Jan 1, 1992

By Francis F. Pitard

North America had an Important role in the early development of sampling theories. Unfortunately many progressive ideas were soon frozen into a series of guidelines based on the philosophy that "honest sampling only requires good judgment and practical experience". Such a philosophy appeared to be good enough In the early age of the mining Industry; however, it became quickly necessary to find new approaches. During the last thirty years, Pierre Gy's sampling theory provided tremendous breakthrough in the comprehension of this new science, nevertheless went unnoticed in North America. Sampling always generates complex problems and as the philosopher and mathematician Descartes suggested: "A complex problem can often be dissociated Into a series of several simpler problems, only then you try to solve those one by one". The only way to solve sampling problems is to consider each component of the overall sampling error: components of a continuous model such as long-range quality fluctuations, periodic quality fluctuations, weighting fluctuations; components of a discrete model such as materialization errors, delimitations errors, extraction errors, fundamental errors, grouping errors, and segregation errors. PAST AND CURRENT PRACTICES Many sampling methodologies have been developed, improved, and standardized during the first half of this century. Accordingly, sampling equipment has been proposed, selected, and used by standards committees. Today, there is a tremendous variety of sampling methodologies and corresponding tools offered to anyone with limited experience in sampling and it is very easy for a chemist, metallurgist, geologist or miner to spend considerable money in equipment transgressing the most basic rules of sampling correctness. Sampling stations that never worked properly in modern plants often cause engineers to abandon them and return to a primitive form of grab sampling.

Jan 1, 1986

By Richard J. Fantel

The U.S. Bureau of Mines performed engineering and economic analyses on 130 domestic phosphate mines and deposits, all containing demonstrated resources, of which 73 are in the Southeastern states of Florida and North Carolina, to determine the domestic availability of phosphate rock. Of the total domestic resources studied (6.4 billion tons of recoverable rock) over 60 percent is found in these two Southeastern states. At an estimated cost of $30 per ton, in January 1981 dollars, approximately 1 billion tons of rock is potentially recoverable from Southeastern deposits, increasing to 3 billion tons at $45. In addition, there is nearly 6 billion tons of recoverable rock at the inferred level (some presently unmineable) in Florida and Georgia.

Jan 1, 1983

By Ted T. Biddle

The world energy crisis has created a greatly expanded exploration program for energy fuels. The demand for materials required for drilling operations such as barite, which is the primary component of drilling fluids, has increased proportionally. As in the case of many other minerals, existing high grade barite mines are no longer capable of producing the required tonnage. Consequently, exploration and development of lower grade ore bodies has been increased. The need to produce a high quality product at maximum recovery rates, along with the ever changing economics affecting both selling price and production costs has triggered accelerated research programs toward more sophisticated and efficient beneficiation methods. Taking into account the specific gravity differential between barite (4.5) and the normal gangue minerals such as silica and calcite (2.7), gravity concentration methods are the prime consideration with flotation as a scavenging process. Greater emphasis on particle size liberation, size reduction and concentration is also indicated. In order to accomplish these objectives, it has been necessary to revert back to the old adage, "Recover your minerals as soon as they are free."

Jan 1, 1980

By W. W. Mason

The United States began exporting coal in the late 1800'5, at first in very small quantities to Canada and beginning in 1897 and 1896, to the east coast of South America. Shipments to European countries began on a very limited basis in 1902 and these shipments increased gradually until World War One when shipments overseas increased from the 8 million tons per year level to 22 million tons. After the war exports dropped as fast as they had increased and, with the exception of exports to Canada, remained at very low levels until just after World War 11 when the United States again emerged as a major coal exporter. World War II left the coal industries of Europe in ruin. As the United States was the only country able to supply the large quantities of coal at reasonable prices needed for reconstruction of the European economy, the U. S. coal exports overseas expanded rapidly to 42.5 million tons in 1947. Additionally, we shipped 25 -2 million tons of coal to Canada In that year for a total export of 68.7 million tons. Unfortunately, that level was not reached again until 1957 when exports reached an all-time high of 76 .4 million tons- -a high I might add that has not been reached since.

Jan 1, 1980

By Paul A. Rittenhouse

First of all, I want to thank John Dunlap for asking me to this AIME meeting in Denver. I was first introduced to Denver and The Rocky Mountains more than ten years ago and immediately decided it was one of the most attractive spots in the world. I've come back many times since and still welcome any opportunity to return, even if it means I have to prepare and give a paper on potash. When John Dunlap gave me this assignment, he told me that the program would include papers on the geology of potash, papers on new discovered potash deposits and new mines and asked me to discuss potash from the commercial point of view. He also asked me to include a supply/demand outlook for potash. However, one thing he did not mention was "how far into the future he wanted me to look" and it seems to me the time element is a crucial factor to you who are both geologists and miners as well as to me. In your case, you have to look far enough into the future to give you time to explore, find, evaluate, develop, and bring into production a commercial deposit. My mining associates and friends don't agree on how long that takes but it's probably somewhere in the range of eight to fifteen years. But, they all agree on one thing and that is that the time required is continually getting longer. Now my time problem is just the opposite. It is "relatively" easy, and I stress relatively, to identify and evaluate the importance of the various factors that impact on both the supply of and demand for a commodity such as potash if the time period is today. It gets a little tough if one has to project into tomorrow or next week or next month. And when we start talking in terms of a year, five years or ten or fifteen years, things really get sticky and the old crystal ball becomes mighty cloudy. But we economists and forecasters are not known for our temerity so let me get on with the job at hand and take a look at the world potash supply/demand outlook.

Jan 1, 1978

By Kalyan K. Bhattacharyya

A systematic slope design for open-pit mines has become a reality only in recent years. Advances in the science of rock mechanics, coupled with extensive use of computers, have enabled the numerical solution of slope design problems which were not previously amenable to analytical or numerical solution. This slope stability study was performed for the UJV-SB open-pit uranium mine of the Getty Oil Co., located in the Shirley Basin area, Wyoming. The purpose of the study was to determine the appropriate slope angles for a starter pit. The data generated during the mining of the starter pit would test the initial design and suggest appropriate modification in the design for future mining in the project area. There had been a history of slope failures in the open-pit uranium mines in the area due to the low competency of the overburden materials and adverse hydrological conditions.

Jan 1, 1979