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By G. Sanders

Discussion by G. Sanders The studies reported on in this paper were initiated to draw attention to the severe contamination problem in the Section 30 drilling program at Chimney Creek. The lithologic-subset sampling study reached a different conclusion from that presented in your paper, and I wish to comment on your subsequent analysis of the data and your conclusions. Request for more complete data In the section on subsampling, you mention that the subordinate lithologies were separated and sampled, yet only the dominantlithology gold value is plotted in Fig. 4. In a contamination study, the reader is interested in the assay values for the individual subsets. Please include a table of the subsample assay data in your reply. Also, please indicate which analytical methods were used to arrive at the gold values in the subsampling study. Turning barren rock into low-grade ore Figure 5 is very revealing and typical of all of the cross sections in Section 30. Note the long strings of low-grade mineralization spread out for hundreds of feet below the ore zones. There were some very high gold values found in certain contaminated fractions during the subset sampling. The conclusion, here, was that the distinctive, strongly-mineralized dolomite layer was probably loose and crumbly and continued to disintegrate during drilling. This caused salting of the unmineralized rock samples below. Missing the high-grade part of the ore body In your statistical analysis, you directly compare the reverse circulation assays to the diamond drill assays in Section 30. Two points argue against a direct comparison and suggest the differences are greater than the 3 % that you report. First, any core loss in a gold zone most likely means that the true gold values are greater. The drillers lost significant amounts of the clay-rich, Section-30 gold mineralization. Also, the initiated salt-mud system, an attempt to improve the core recovery, met with little success. Second, the practice of not sampling core geologically, but instead sampling on even 5-foot intervals, adds a deliberate dilution to the core assay values by including a portion of nonmineralized rock in the first and last samples of each high- grade intercept. The result is often a pair of low-grade assay values on either side of a high-grade gold zone. In reality, a high-grade gold zone has a very sharp assay wall that is often bounded by barren rock. This sampling method may make the diamond-drill core assays more like the reverse circulation values and may help explain the statistical similarities you found. However, it does not represent the true gold values in the high-grade parts of the deposit. You cannot deny that, by careful geological sampling of the drill core, higher and sharper assay values will be obtained. The low core recovery and the diamond-drill-core sampling method used act together to lower the diamond-core assay values. The 3% difference you found between the reverse-circulation and diamond-core assay values could be much larger when you consider what the true diamond-drill core values would be with optimum core recovery and a geologic sampling method for the core. Should statistics have been applied here? The statement "... that reverse circulation holes have overestimated the values of some ore zones and underestimated the values of others" (p. 345) is not correct. The subsampling confirmed what the cross sections hinted at in Section 30. Namely, beneath the high-grade zones, the reverse circulation holes created, by contamination, large intercepts of low-grade ore in regions of barren rock. Because the low-grade material was not there to begin with, this is not a process of overestimating low-grade mineralization. The next statement that "the average result is similar to that of the diamond drill holes" may apply to the data set numerically, but it is not true when viewed spatially on cross sections. Adjacent reverse circulation and diamond drill holes are almost impossible to correlate, high-grade zone values vary widely and many low-grade intercepts make no geologic sense. The subset sampling and cross sections presented in the first part of the paper show that the reverse circulation portion of the data set has some serious problems, as highlighted above, and should not have been dealt with statistically at all. Conclusion Each ore body is different, and each drilling method presents unique sampling problems. In this case, the diamond drill is the

Jan 1, 1994

By Peter J. Szabo

The mining executive works in a cyclical industry. His employment is subject to the vagaries of the marketplace. Boom and bust has always been the industry's story. "Big oil" failed in its mining effort. This left emotional and financial scars on many mining families. One must remember that mining executives always play a high-stakes game. Given the cyclical nature of the mining industry, mining executives need to take care of their own financial security. The mining executive that does not plan for his financial security in this cyclical business is playing Russian Roulette with his future. Take a look at those people who have reached their later years with the mining industry. One usually finds three categories of people. Those few in the first group have been fortunate enough to have worked for one company. They have survived the winnowing process of cyclicality, political problems, and takeovers. They have reached normal retirement age. For them, the retirement years are usually comfortable. People in the second group have worked for those same mining companies. But these people have been forced out by early retirement. Or they have been laid off for cyclical, takeover, or political reasons. The third group includes those who have held many positions in the mining industry. Probably not until their later years are they fully vested, if at all, in a pension program. The first small group, then, is the exception. The others, unless they have taken care of their financial security, are doomed to later years of financial problems, stress, and unhappiness. Too late in life, many realize the harsh realities of failure to plan and implement a personal financial program. Mining executives go to some of the world's leading mining schools, to learn how to make money. The curriculum is technically strong. Most mining graduates are familiar with the intricacies of discounted cash flow, present value, and the Hoskold formula. But few of these same mining schools require courses on personal financial planning. Such courses could give mining students a realistic foundation and the mechanisms with which to cope with their cyclical profession. An executive has only three sources of money. He can make money at work. He can put his money to work. Or he can get money from charities, such as government programs. Of these three sources of money, money at work has the best chance of providing financial security in later years. The mining executive must think of the day when he will be too old to work and contribute to the market place. At this point, the quantity and quality of his investments will determine whether his later years will be secure. Along with the Mining Engineering Handbook, two key books should be included in the mining executive's library. These are Venita Van Caspel's The Power of Money Dynamics and Benjamin J. Stein's Financial Passages. These books contain the basic concepts of personal financial planning so critical to an individual's financial survival. Venita points out the simple formula that is the key to financial independence: Time + Money + American Free Enterprise (Rate of Return) = Opportunity to Become Financially Independent Chart 1 shows that this is not a trite formula. The chart shows the dramatic effects of compounding over time. The chart also shows at various yields what a $2000 a year Individual Retirement Account (IRA) contribution will accumulate. Chart 1 (from Money magazine) is based on the future value of an ordinary annuity. It shows that the key to amassing a small fortune by the time a person reaches his 50s is starting to save methodically in his 20s. This, coupled with the highest yields consistent with safety of principal will ensure financial security. There are significant effects from compounding money over time. Every year the decision is put off to save for later years will cost a person dearly by the time he reaches his 50s. For example, consider the decision to put off for one year a $2000 IRA investment at a 12% return. Starting it at age 31 instead of 30 will cost the executive almost $100,000 by age 65. What if the executive waits until age 35 to get started with his $2000 a year investment? He will then lose nearly $400,000 by age 65. Stated another way, the executive costs himself this $400,000 simply because he did not invest $167 a month for five years. $167 a month - that's less than an inexpensive second car payment. This $400,000 pool of money could provide the executive a $40,000 a year income at age 65, assuming a 10% return on invest-

Jan 11, 1985

By J. D. Miller, R. J. Smith

Earl C. Herkenhoff Publication of the article "The Flotation Behavior of Digested Asphalt Ridge Tar Sands" by R.J. Smith and J.D. Miller has confirmed and again spotlighted a most significant and important development in the field of tar sand and heavy oil mining. This is the ability to recover 95 % of the bitumen in dry tar sands by a hot water process. The initial investigation by Miller and Sepulveda in early 1978, "Separation of Bitumen from Dry Tar Sands," was the first blockbuter. It is disappointing that there has been so little scientific and industry ackowledgement that the authors laid to rest the long entrenched belief that the sand grains had to be "water wetted" for a hot water process to be applicable. Dr. Miller and his researchers at the University of Utah used slightly different mineral dressing terminology in describing their process but it is essentially the old, established technique of high solids attrition scrubbing at elevated temperatures with a conditioner or modifier, followed by dilution and froth flotation. Similar techniques were described in detail for other nonmetallic minerals in the mid-1940s by Stuart Falconer of American Cyanamid Co. The authors used a 15-minute "scrub" period (or in their terminology "digester step") at 73% solids and 95°C (203°F) in a 0.3 m solution of sodium carbonate -about 4 kg/t (8 lb per st) of tar sand. Flotation was at 10% solids. Obviously, the scrub is an expensive step with respect to energy input but the high recovery of bitumen appears to justify it. Two basic questions then arise: • What are the effects of shorter scrubbing time, lower temperature, and less sodium carbonate? • Would a two-stage approach be advantageous? That is, could you get the major proportion of the bitumen with a mild scrub and apply the high power and temperature only to the refractory portion? These variables should be evaluated. Apparently, all results were only for rougher flotation. What would the grade and recovery of bitumen be if multiple cleaner flotation steps were employed? We must concede that a 60-62% grade of bitumen leaves considerable room for upgrading. Finally, it should be noted by all executives who approve funds for heavy oil recovery schemes, most of which are variations of in-situ methods, that mining can yield a 95% recovery of bitumen. That is correct, 95%. Imagine what that does to the total barrels recovered from a heavy oil resource compared with the scrawny 30-35% maximum recovery we are getting now. The conclusion-let's mine heavy oil and tar sands. Reply by R.J. Smith and J.D. Miller We, too, share Mr. Herkenhoff s enthusiasm for the mining of tar sands-heavy oil and continue the development of related processing technology. Specifically, it will be noted that by appropriate control of bitumen viscosity in the feed (probably the most important variable for successful separation) the recovery can be accomplished at low digestion temperature and low addition of alkali. A 91 t/d (100 stpd) pilot plant based on our technology is now being operated by Enercor in Salt Lake City (Hatfield, Oblad, and Miller, 1982). In these same pilot facilities, rougher concentrates containing more than 80% bitumen on a dry basis are being produced from Asphalt Ridge Feed. However, the processing of certain other tar sands results in incomplete digestion of bitumen/sand aggregates as discussed elsewhere (Miller and Misra, 1982). Such undigested aggregates are shown in Fig. 1. In this regard, it is intended that a recycle stream will be installed in the pilot plant to provide for redigestion of middling products. Further details regarding surface chemistry aspects of this tar sand technology have recently been published (Misra, Aguilar, and Miller, 1981). References Hatfield, K.E., Oblad, A.G., and Miller, J.D., 1982, "Pilot Plant Recovery of Bitumen from Oil Wet Tar Sands," Processing, Second International Conference on Heavy Crude and Tar Sands, Caracas, Venezuela, Feb. 7-17. Hatfield, K.E., Oblad, A.G., and Miller, J.D., 1982, "Pilot Plant Processing of Oil-Wet Tar Sands," Symposium, Rocky Mountain Fuel Society, Salt Lake City, Utah, Feb. 18-19. Miller, J.D. and Misra, M. 1982, "Hot Water Process Development for Utah Tar Sands," Fuel Processing Technology, Vol. 6, No. 1, April, pp. 27-49. Misra, M., Aguilar, R., and Miller, J.D., 1981, "Surface Chemistry Features in the Hot Water Processing of Utah Tar Sand, Proceedings, "Symposium of Separation Science and Technology for Energy Applications," Gatlinburg, Tennessee, May 5-8.

Jan 11, 1982

By Dan Nilsson

INTRODUCTION A company must have an objective, and that usually is to earn money. In some countries an objective can also be to reduce unemployment in an area or to develop nonindustrialized areas. Government-owned companies can also have as an objective that of serving the com¬munity. This discussion is limited to the consideration of normal companies wanting to earn money. Such an objective, however, has to be defined in more detail. It is not satisfactory only to maximize the total annual profit from, for example, a mining project. In comparison with most other branches, the mining in¬dustry is very capital intensive. When starting a new project, the mining company must invest a lot of money in mines, ore treatment plants, etc. It is normally many years before any income is received from the ore. Fig. 14 illustrates the payments for a new mining proj¬ect with an expected lifetime of 10 years. Whether this project is a profitable one depends on a lot of things. If the company has a shortage of money, it can be impossible to finance the project. Even if the company has enough money, the management may think that perhaps the project may not return the money fast enough. Such limitations will not be discussed here. Suppose that the company has internal funds from its own operation or can borrow them. Since the mining company must invest the money in advance, it is not satisfactory only to add all of the costs during the mine's lifetime and compare them with the total income during the lifetime. The company must include the time value of the capital. In this appendix, the basic investment theory neces¬sary to judge the profitability and costs of mining proj¬ects will be discussed. INVESTMENT THEORY Time Value of Money If a private person has a dollar and puts it into a bank, he or she will receive interest. If the interest rate is r%, the value after one year will be $(1 + r), after 2 years $(I + r)2 , etc. The interest rate represents the time value of money. If the same person wants to have $1 in the bank af¬ter one year, he or she has to put $(1 + r)-1 in the bank today. If the person wants $1 after 2 years, it is neces¬sary to put $(1 + r)-2 into the bank today, etc. So one dollar today is worth more than one dollar tomorrow. It is, of course, not correct to compare money at differ¬ent times since each dollar has a different value. It is necessary to transform all payments to the same point in time. That is called the calculation of the capital value of a cash flow, and to do this an interest rate is used. In the same way, the cash flow from a project like that shown in Fig. 14 can be translated to any other point in time. Most common is to translate all payments to the beginning of the mining period. That capital value is often called the present capital value. Interest Rate What interest rate will the company use? A com¬pany, just like an individual, has the basic alternatives of keeping its money in the bank and receiving interest, or borrowing money from a bank and paying an interest rate. The interest rate represents the time value of money for the company. If the company has a shortage of money, or many good potential investment projects, it has to use a higher interest rate than if it has a lot of money available. Most companies also increase their interest rate as a hedge against the risk involved by using money for uncertain investments, because of taxes, etc. Capital Value When the interest rate has been decided, it is possi¬ble to estimate the capital value of a project. Here the discussion will be limited to the estimation of present capital values. Suppose that one wants to know the present capital value of $1 (Fig. 15), which will be received after n years. To transform it n years back in time, one must multiply it by the factor (1 + r)-, where r is the inter¬est rate the company uses. Table 1 gives these factors for different years and interest rates. Example: At the end of year 5 a mining company has to invest $50 million in a new mine. What is the present capital value at the end of year 0? The company uses an interest rate of 15%a.

Jan 1, 1982

By George B. Griswold

The two most stringent parameters for in place fracturing of rock are the lack of any initial void space in the rock which to expand into and the ability to gain access only through drill holes. These two restrictions have proven so severe that as of today the only proven techniques for efficient fracturing are the contained nuclear detonation and hydrofracing. Both of these methods have highly developed technologies for their application. Hydrofracing has been a standard oil field practice for two decades, and the experience gained from a couple hundred underground nuclear detonations has resulted in a thorough understanding of the phenomenology of cavity and chimney formation. What is still lacking is a practical method to create a suit- able degree of fracturing for those ore bodies which do not meet the application criteria for either the nuclear explosion or hydrofracing. Nuclear applications must be restricted to thick ore deposits so as to take advantage of chimney collapse height--preferable in excess of 200 feet thick. Other requirements such as ground shock, containment, and radioactive contamination further reduce the number of sites that prudently can be selected.

Jan 1, 1969

By Hilal Soydan, H. Sebnem Düzgün, Jurgen Brune

In this study, with the primary goal of capturing ongoing digital transformation and automation impacts on the mining industry and its workforce, we conduct several interviews with mining industry experts in the United States and analyze our survey reports qualitatively and quantitatively through exploratory analysis. After the interpretation of the insights of industry experts, we proceed to generate a personalized and customized data analysis through a novel metric based on skills, knowledge, competencies and occupational requirements, which quantifies the job similarities for occupations in the mining industry based on the publicly available database of the U.S. Department of Labor. We use text analytics to tokenize and classify the interviews to capture a better understanding of major response categories. The temporal analysis shows that the critical competency needs in the data science and autonomy category increases from 28 percent in current demands to 43 percent. In defining our metric, we also calculate Kullback–Leibler (KL) divergence for each job profile that enables determining whether and to what extent that job is transitionary in our test set based on the mean, standard deviation and kurtosis of each job of interest. Our analysis reveals that the in-group job transitions are significantly easier than the between-group transitions, proving our initial assumptions and common sense. The generated heat maps provide the opportunity to present the gap between the current job and desired job profiles that provide feasible career change options, among others, offering individualized career paths for job seekers and promoting potential job transitions. Through the collection of industry-specific individual employee data, the AI system is envisaged to continue to learn as end users engage with the system, thus creating a central data hub specifically for the future workforce in the mining industry. Although the study has limitations on generalizability for qualitative assessments, it presents itself as a valuable application of how qualitative and quantitative approaches could be of value for future worker training in the mining sector.

Feb 1, 2025

By W. J. Schitt

Section 15 covers a loose collection of topics that involve water in some way. The chapters in this section include Dredge and Placer Mining (Chapter 15.1), Solution Mining: Surface Techniques (Chapter 15.2), and Solution Mining: In Situ Techniques (Chapter 15.3). The dredge and placer systems involve water in several forms. The segment on hydraulicking or hydrosluicing discusses the use of monitors to direct high-pressure water jets to move material. As such, this represents an alternative to mechanical breakage, loading, and hauling. This chapter also covers placer mining (except dry placering) where the water provides the medium that promotes the separation of minerals based on their density and other settling characteristics. Thus placer mining is generally limited to concentration of gold, tin ore, diamonds, and other heavy minerals that are already liberated and are contained in a less dense matrix. The third topic, straight forward dredging, as in sand and gravel operations, involves water only in an incidental way. Here water simply covers the minerals of interest. Thus the dredging system need only lift a payload from the submerged location to the surface for further processing or handling

Jan 1, 2008

By Robert B. Fulton

The objective of this chapter is to discuss the interrelationship between industrial minerals and chemical manufacturing. It is intended to supplement rather than duplicate the commodity chapters. Particular emphasis is given to the pertinent chemical element and to market factors. Condensing this broad subject into a few pages of this handbook permits treating only the most important elements derived from industrial minerals. Hydrocarbons, which quantitatively dominate as raw materials for the chemical industry, are omitted, as are the metallic elements and the minerals covered in other "use" chapters such as phosphorous, potassium, and nitrogen for fertilizers, and titanium dioxide for pigments. The remaining six elements of major importance are: boron, bromine, chlorine, fluorine, sodium, and sulfur. These elements are treated individually under separate headings. [Table 1] affords an overview of the main industrial minerals, the chemical products derived from them, and end uses of the products. Salt brines have particular importance as raw material sources for the chemical industry. Table 2 is a chart of the chemical compounds derived from four types of brines: (1) Owens Lake-type brines, which are sources of boron and sodium compounds; (2) Midland-type brines, from which bromine, iodine, and chlorides of calcium, magnesium, potassium, and sodium are derived; (3) Searles Lake-type brines, yielding boron, bromine, lithium, magnesium, potassium, and sodium compounds; and (4) Silver Peak- type brines, produced mainly for lithium. MARKET ATTRIBUTES Some of the important market traits common to industrial minerals used by the chemical industry are: 1. They are international commodities, such as fluorspar and sulfur, which largely move to foreign consumers. 2. Grade, and freedom from deleterious elements are important factors affecting their usability in chemical processes. An example is salt (NaCl) used in electrolysis where ultrapure evaporated salt is required to meet rigid specifications. 3. Purified products take on the characteristics of specialty items and command a distinctly higher price than the basic commodity from which they are derived. 4. In practically all cases, chemical users require some sort of cleaning or beneficiation of the naturally-occurring mineral to bring it to specification, and individual specifications may vary from user to user for essentially the same use. 5. In some instances it is necessary to strike a balance between what the vendor can supply and what the buyer requires, with the result that specifications have to be eased to afford the needed materials in marginal cases. 6. Because they tend to be bulk commodities, low cost for handling and transportation are important and such costs may limit the area from which a chemical user can draw his supply. 7. Shipments are usually in bulk and frequently in multiple-car, full-trainload or full-shipload lots to reduce transport costs, which in turn may require large terminal investment facilities. 8. Purchases are generally by contract of one year or longer term, with spot buying playing only a minor role. 9. Contract prices are usually fixed in short term commitments, but may vary according to assay, with premiums and penalties for content above or below the norm; however, general practice is for specifications to be fixed in the contract with minimums being set for the desired material and maximums for undesired elements. In longer term contracts, prices are often escalated on labor, fuel, and other vendor processing costs. 10. Suppliers of individual commodities to the chemical industry tend to be limited in number and are generally medium- to large-size producers that supply a few major consumers. 11. The bulk of the mineral volume is for basic chemical uses, sulfur suppliers to sulfuric acid producers and fluorspar for hydrofluoric acid producers being typical examples. These basic chemical products then are used for the production of other products. 12. Shortage of a supply of adequate quality leads consumers to seek substitutes. In the case of fluorspar, much work is being done on recovery of fluorine from phosphate rock. Success in the form of fluorosilicic acid and/or hydrofluoric acid production could, in time, affect the hydrofluoric acid chemical industry. 13. Markets tend to be characterized by cycles of shortage followed by oversupply, with attendant wide price fluctuations. 14. Baniers to trade can have an adverse effect on the necessary movement of industrial minerals used by the chemical industry in international trade. Antidumping laws, quotas, and tariffs can disrupt or dislocate normal markets. 15. Chemical industry consumers may back-integrate for security of supply or for favorable economics, sometimes by joint ownership and often with experienced mining partners.

Jan 1, 1994

By J. Duncan Wilkins

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

Jan 11, 1983

By Kenneth A. Grace

Introduction The 1980s have not been kind to the mining industry, especially in the United States. As mineral commodities prices plunged, marginal producers were squeezed out and then major players were forced to cut back or close down operations. Base metal miners suffered the most. Gold was all that glittered. As had been the case throughout min¬ing's history, exploration activity was an early victim of these depressed conditions. Mining companies had to economize drasti¬cally and exploration was deemed a nones¬sential activity. Funding for new explora¬tion ventures dried up as mining was seen as a poor investment. A national magazine even proclaimed the death of the industry. Indeed, ignoring matters of independ¬ence of supply and the relationship of min¬eral production to national security, it was argued that mining was but a small cog in the overall scheme of things in the United States. The industry made a relatively small contri¬bution to the gross national output. We were becoming a service industry economy, re¬member? But what of those countries where mining plays a major role in the economic well-being? In some, mining is the national economy. In a few specific cases, special conditions actually brought prosperity. Copper production in Chile is one example. There, high grade copper, low production costs, and a technically advanced industry reaped the benefits of mine closures else¬where. In most other cases, however, par¬ticularly in the lesser developed countries, whole economies were devastated. This article will show what one major mineral producer, Canada, did to ensure the survival and even growth of its minerals exploration activity during these lean years. Background While Canada is among the world's mining leaders, mining is not its dominant industry. Still, it plays a far more important role than in the United States. It is a major earner of foreign exchange, currently accounting for about 25% of the total value of exports. Through spinoffs and a multiplying effect, it is a significant employer. In the far north, particularly, mining is the major nongovernment industry and a leading factor in the opening up of frontier territory. The industry cannot be allowed to die because it is often the main economic underpinning for vast, remote areas. Thus, exploration for new deposits cannot be cur¬tailed significantly without it having a long¬term negative impact on the very fabric that melds such a large, sparsely-populated ex¬panse of country into a nation. Over the years, Canadian governments have employed various means to encourage the development of new mines. Often, these incentives were tax-oriented, such as the three-year income tax holiday that applied to new mines in the 1950s and 1960s. The advantage of the tax connection is that any such incentive policy can be applied across the board to the 10 provinces and two territories that make up the federation of Canada. This is important because mining, except for the two federally-administered northern territories, comes under provincial government jurisdiction. Mining taxation is a complex give-and-take between the central and provincial authorities. In Canada, expenditure on mineral exploration is an allowable cost against reve¬nue for tax purposes. This works well pro¬vided there is some revenue from which to deduct. New exploration companies, those with no income from mining activities, de¬rive little benefit from this type of tax provi¬sion. Similarly, in times of depressed prices and reduced or nonexistent profits, the tax deductibility of exploration spending loses its value even for the major mining compa¬nies. To encourage exploration in Canada during the lean years, a different sort of incentive was required. The instrument used during the 1980s was again tax connected. It became known as flow-through financing or, simply, flow-through shares. When it assumed its final shape, it worked dramati¬cally. Flow-through shares Flow-through shares are so-named because they permit tax benefits earned by a corporation to 'flow-through' to the share¬holder. Basically, when an investor buys a flow-through share and the proceeds de¬rived by the company from this transaction are used for Canadian exploration, the in¬vestor can claim a deduction for tax pur¬poses as if the exploration expenditure was made by him personally. Flow-through shares go back to the early 1970s when Canada revamped its mineral income tax law. At that time, it permitted full deduction of exploration and development expenditures and provided for an automatic depletion allowance of one¬ third of operating profits from mining. There was also the three-year income tax holiday for new mines. New legislation replaced the depletion allowance with an earned depletion arrange¬ment whereby one dollar of depletion was earned for every three dollars spent on ex¬ploration and development. This earned depletion was `banked' during a transitional period (to 1974). After that it could be deducted from resource profits up to a maximum of 25% of such profits in any one year, with the excess carried forward. To promote exploration and mine de¬velopment in Canada, the earned depletion allowance plus the continued deductibility of exploration and development expendi¬tures permitted the recovery of risk capital before taxation. The three-year tax holiday, however, disappeared. Also, mining com¬panies that did not reinvest in exploration lost the depletion allowance benefit.

Jan 1, 1989

By T. K. McMahon

Formally, a mathematical model could be defined as: A set of equations whose solution will approximate the response of a physical process or system to a set of stimuli which appear as parameters in the equations. The purpose of a mathematical model is to permit the rationalization of experience to proceed by simulation rather than by physical experimentation. In the application of digital computer control to an industrial process, the mathematical model of the process (subsequently called the process model) is needed to calculate the present process performance from the measured variables and to predict the response of the process to a control change. Functionally, the cardinal element in process model development is a concise set of control objectives. These, besides implicitly defining the boundaries of the system to be modeled, will determine the accuracy demanded of the model its nature: dynamic or steady-state, and so forth, The objectives should explicitly define what process efficiencies, production rates, qualities are to lie within the scope of the computer control project, thereby providing a basis for simplifying assumptions in the development of the model. This requirement, a limited set of control objectives, is so often disregarded in formulating industrial control problems that its repetition can scarcely be avoided.

Jan 1, 1965

By A. M. Edwards

In many ways a government could be regarded as a macro business enterprise. Its shareholders are its peoples, the productivity of the nation depends on them, and, indeed, the profits or losses of a nation's balance sheet can be linked to the surplus or deficit in its balance of payments. International loans need to be repaid, and in most developing nations the noose is tied so tightly that one wonders if such debts will ever be repaid. In their endeavour to meet such obligations, their currencies may be devalued [sometimes in frightening proportions], in the hope of boosting the export potential. However, this is a vicious circle, since exports will not be achievable unless sufficient technical expertise and infrastructure exist to address the opportunities which may have been created through devaluation. Many of the poorer countries have exportable resources of minerals, which are supplied on the international market. This may be the good news, but, unhappily, steps were seldom taken to enhance the value of the mineral products through further beneficiation and the production of high-value sophisticated products. That is where the vicious circle comes in: inadequate infrastructure is created, competent and well-trained manpower is not generated, and the result has inevitably been that the GDP slips backwards, and the nation becomes progressively impoverished. To exacerbate the problem, it is unfortunate that the more impoverished a nation becomes, the greater is its birthrate, and hence the greater the need to create wealth at the very time that the nation is becoming poorer and poorer. Within this scenario, one may well reflect that this is exactly what nations on the African Continent are experiencing, namely exploding populations, although most of the poorest nations in the world are found on this continent. Yet they often possess a superior mineral production potential. Africa still suffers from what may be called the colonial influence, in that the developed world has regarded this continent as a source of raw materials to feed its own factories. The colonial powers gave only secondary attention to developing the nation's peoples and its infrastructure, such as railways, roads, harbours, and other services. These problems all naturally fall within the ambit of government interest, and it is therefore obvious that the state should play a dominant role in addressing them. The reasons for governmental involvement in mineral-related research and development differ considerably, depending on the state of industrial development of that country. Thus, in the highly industrialised world, government's interest will lie mostly in the fields of strategic minerals, which may not be economically exploitable. An example would be the exploitation of American low-grade chromites during the Second World War, or minerals which need to be imported from unfriendly or unreliable sources, such that disruption would not be in the national interest. Colonial powers like the United Kingdom and France established R&D facilities to assist, inter alia, in the exploitation of mineral resources in their colonies. The approach of developing countries would differ from that of the industrialised nations, in that their primary quest would be to promote, support and encourage the development of infrastructure, and the establishment of major industries in order to create and provide employment opportunities, as well as to support small operators who cannot afford to undertake their own research and development. On the debit side, it is a sad fact that, however good their intentions may be, underdeveloped countries are invariably unable to provide the requisite financial support to sustain their own research-and-development laboratories. In a high-tech world, the cost of sophisticated equipment is steep and cannot be afforded. Again, the proverbial vicious circle comes into play. The competent researchers find themselves without rewarding employment and would therefore shun such institutions. Recent trends in the developed world have been to privatise research-and-development institutions, the argument being that they should draw closer to the industry they serve, and that the provision of taxpayers' money for strategic purposes is no longer as important as it may have been once. Complete state withdrawal has had its negative effect in that long-range, high-calibre research has tended to be replaced by short-term problem-solving projects. Industries engaged in the minerals business differ somewhat from major ones, like motor, computer or pharmaceutical industries, which are large enough to support their own internal research and development, and whose work is highly confidential, so that any leakage could have disastrous consequences. Furthermore, private companies are answerable to their shareholders and costly long-range, 'blue-sky' research would be difficult to justify. Since mineral research has become of lesser importance in the sophisticated First World, this trend has persisted. On the positive side, R&D institutions which are totally financed by government, suffer because they tend to forget the reason for their existence. They have often become a form of auxiliary to an academic institution where higher degrees are collected by scientific boffins who, in their quest for academic excellence, tend to disregard the benefits that industry may ultimately gain from this research endeavour. The trend in recent years - and South Africa is no exception - has been for the state to progressively reduce its subsidy, whilst at the same time encouraging research organisations [for their ongoing survival] to interact closely with industry, and to conduct work directly for them on a contract basis. Organisations such as CSIRO in Australia, CANMET in Canada, the USBM in the United States and Mintek in South Africa all generate income from the private sector. However, the critical fact is that the State should never withdraw

Jan 1, 1995

By Allen G. Taylor

High-value materials, such as gold, platinum and other precious metals, are subject to loss through unauthorized removal from mines, smelters, refiners and other places where such materials are processed. A study by Gastrow (2001) determined that between 1994 and 1998 an average of 603 kg/a (1,330 lb/year) of gold was stolen from South African mines and subsequently recovered. This does not include the gold that was stolen but not recovered. At 2011 prices, 603 kg/a (1,330 lb/year) of gold would be worth approximately $33 million. Mine security personnel believe that the unrecovered stolen gold far exceeds what is recovered (Gastrow 2001). Traditionally, metal detectors have been used to screen personnel leaving secure areas to discourage such unauthorized removal. However, with the current near-record prices of gold, platinum and other precious metals, it has become worthwhile for people exiting a facility to walk out with quantities of product that are too small for ordinary metal detectors to register, resulting in substantial financial losses.

Jan 1, 2012

Editor?s note: Each year, the June issue of Mining Engineering features an industrial minerals review. Several people put in a fair amount of time in developing the material for this issue, all the while doing their own jobs. Thank you to the industrial minerals annual review editor, to the Industrial Minerals and Aggregates Division technical committee chair and vice-chairs, and to the authors of the individual commodity profiles. Jim Norman, member SME, of Tetra Tech, is the industrial minerals annual review editor. Candace Trimble, member SME, of Oil-Dri Corporation of America, is chair of the Industrial Minerals and Aggregates Division?s Technical Committee.

Jan 1, 2012

By Iain Weir-Jones

The efficient operation of an open pit mine presupposes that the slopes are maintained at an angle which closely approaches that of the ultimate stability of the slope. In order to do this in a safe manner, it is essential that the data relating to the behavior of the slopes be monitored and made available, through an instrumentation system, to the appropriate personnel so that soundly-based engineering decisions may be reached with the minimum of wasted effort. In addition to simply detecting potential failures, the system should also define what type of failure is developing; i.e., rotational, wedge, or dilational failures. Providing this data is the prime function of a stability monitoring system. Therefore, in an operating open pit mine, the instrumentation system must provide information which will have a direct bearing upon both the safety and the economics of the operation, as well as provide data which is pertinent to initial design, or to the re-design of slopes where developing instability is found to be a problem.6 It is possible to excavate pit slopes which will remain stable under extremely adverse conditions; however, such slopes would usually be so flat that they would tend to render the operation of a pit uneconomical which might otherwise be mined at a profit. On this basis, all practical pit slopes must be considered to be, to some ex- tent, unstable; if they are not, the design is too conservative and the mine is not returning its maximum profit. To reduce the problem to its fundamentals, one can simply state that the ideal pit slope design produces a slope which stands with zero maintenance for the entire life of the pit and then collapses into the final excavation as soon as the personnel and equipment have been removed. Such a design is impossible to achieve, but the fact remains that an efficient slope would hover on the edge of failure for the life of I the pit. As one retreats from this position, the profitability of the mine decreases because of an unduly conservative design.

Jan 1, 1975

By C. W. Hunt

I wish to register strong disagreement with the choices of drilling sites chosen by the Continental Scientific Drilling Committee, while endorsing the stated objectives. Of special significance is the lack of any site involving the metals most needed today in the US, while 9 to 13 km of drilling are allocated to gold and silver districts and 11 to 17 km to base metal (mainly copper) districts. Why is nothing proposed for platinum group or chromite? Is this because the committee did not know of such a site? If so, I offer such a site in California (see Fig. 1). The mineralization shown in Table 1 occurs in a large peridotite body in western Tehama County, CA. Petrography has demonstrated unequivocal evidence of migrated PGE deposited in peridotite and chromite of hypabyssal nature. Active diapirism (due probably to serpentine buoyancy) above a reactivated mantle to surface conduit marks the position of the conduit. Young explosion breccia cemented loosely by volcanic glass and tuff demonstrates the significance of the conduit as the prime source of the various emissions. Deep drilling could result in major metals discoveries as well as shedding light on the grand questions of platinum group mineralization. What role water has played in this occurrence is not yet certain; but chlorine and asphaltite have been detected in and adjacent to native PGM, suggesting a major role for water. The explosion breccia suggests that this excellent site could overlie entrapped geothermal steam.

Jan 1, 1988

By Y. C. Kim, I. S. Roditis, P. K. Medhi

P. Mousset-Jones I found the article most interesting and timely. I consider it imperative that mine case studies like this one are undertaken and published so that the practicing mining engineer and geologist can obtain a better idea of what is the preferred estimation and grade control technique to use, given the site-specific geology, grade distribution, etc. Mining companies, with operating gold mines, need to be encouraged to either initiate such a study in-house or support a research project by financing a graduate student at a local university. The latter method is preferable since it not only provides research support but also an excellent training opportunity for young mining engineers and geologists. Ideally, what is needed is exploration drill-hole, blasthole, and mine production data that can then be used to assess the efficiency of different estimation and grade control methods by comparing the results obtained using the drill/blasthole data with the actual production data. It is hoped that more mining companies will realize that the rewards from this kind of research greatly outweigh the sometimes perceived problem with releasing data to a university. I noticed that the authors used the blasthole data to represent the actual values, the validity of which relies heavily on the two key assumptions with regards to blasthole assays and in-pit ore-waste selection procedures. Could the authors comment in more detail on these assumptions and what criteria they used to check the validity of the assumptions? Since the article was published, have the authors had the opportunity to compare their estimates with the actual production data? It would be interesting to compare other estimation methods with OK and IK. For example, how well did the polygonal method used at the mine compare with the results given in the paper? I would like to mention that B.L. Kwa completed a similar study (Kwa and Mousset-Jones, 1986) using exploration drill-hole, blasthole, and production data from the Alligator Ridge mine in Nevada. The study compared a variety of estimation methods, including IK, and the final results are shown in Fig. 1. The IK method exhibits the smallest difference between estimated and production results and is closely followed by the indicator moving window (Ind MW) method. Reference Kwa, B.L., and Mousset-Jones, P., 1986, "Indicator Kriging Applied to a Gold Deposit in Nevada," Proceedings, Symposium on Ore Reserve Estimation Methods, Models, and Reality, CIMM Annual Meeting, Montreal, Quebec, Canada, May, pp. 185194. Reply by Y.C. Kim We do concur with Professor Mousset-Jones with respect to the merit of such case studies performed at a local university. In answer to his request for comment on the validity of the two key assumptions made in our paper, we can only say that these are reasonable assumptions that are very difficult to validate. The assumption of blasthole assays being accurate can be partially validated by a careful analysis of the nugget component of blasthole variograms. The assumption that the in-pit ore-waste selection procedure in use was an effective one can only be validated through comparison between the mine estimates of ounces of gold versus the actual recovered ounces of gold at the mill. Neither one of these two assumptions has been validated to date due to several reasons. For example, the mine went through a change in management since the study. Similarly, no compelling reasons have been presented to perform detailed variogram analysis of the blasthole data. We do, however, believe that the obtained results (i.e., indicator kriging performs better than OK in a highly skewed deposit) will remain the same in relative terms, regardless of how valid these two assumptions may be. The most recent comparative study by D. S. Lindsey of the Montana College of Mineral Science and Technology also shows a similar ranking between ordinary kriging versus probability kriging, which is an extended version of indicator kriging. Reference Lindsey, D.S., 1987, "A Comparative Study: Probability Kriging vs. Ordinary Kriging at the Golden Sunlight Mine," MS Thesis, Department of Mining Engineering, Montana College of Mineral Science and Technology, Butte, MT, May, 81 pp.

Jan 3, 1988

By Anthony M. Bauer

It is the nature of mining to reshape the landscape. Mining is an earth moving process with many of the same activities associated with the regrading of a site for a shopping center, drainage channel, housing project or ballfield. The difference exists only in purpose and duration of activity. The purpose of mining is to, produce a valuable product. The purpose of regrading for construction of a project is to create a predetermined landscape for a specific end use. In both situations the objective is to move earth materials as efficiently as possible. The question is then raised, if similarities exist, can mining operations be directed to shape predetermined landscapes as an integral part of its earth moving activity. This paper will explore the opportunities and issues of shaping sand, gravel and hardrock construction aggregate sites for productive end uses. It is based upon the premise that, as an earth moving operation, the process of extracting sand and gravel includes an inherent capability to shape productive lands as an integral part of the mining operation. In the course of any mining operation non-commercial materials, including overburden, fines and excess sand are handled to extract and process the commercial products. This activity exists regardless of whether or not there is a plan to reclaim the land. Moving this dirt is a basic operational cost. This cost need not be significantly increased when the material is deposited to shape land rather than be stock- piled just to clear the way for mining the deposit. Moving of dirt to create useable land can be guided by the same criteria used to remove the dirt from the deposit: for example, limiting the- hauling distance. Over a period of time earth handling costs can be reduced by minimizing the need to transport the stockpiled material a second time to the new landform location.

Jan 1, 1984

By C. Don Sullivan

Paraphrasing the poetic repetition of Gertrude Stein - "Research is research, is research, is research --- ad infinitum." But research takes many forms and involves many facets. Perhaps the most simple of definitions is that attributed to the late "Boss" Kettering of General Motors who in advising a young trainee said, "Research is an intelligent effort to satisfy the curiosity of the human mind." Reclamation research is complex and requires a diversity of scientific knowledge. The overall aim of land reclamation research is directed to finding practical ways to develop efficient methods to restore mined lands to productive use, compatible with use of adjacent lands, as soon after mining as possible; and, finding practical ways to reduce or prevent damage to surrounding resource areas, which may be affected by the mining process. Research in the field of mined land reclamation is not entirely new, although in some respects we are exploring new areas each day.

Jan 1, 1967

Two key strategies for a new generation of mining are developing domestic raw material production and doing so in an environmentally responsible way, according to presenters at the 83rd annual meeting of the SME Minnesota Section in Duluth (the 71st annual University of Minnesota Mining Symposium). From technical sessions detailing how to build com-munity support, to a short course on international perspectives in iron ore mining and processing, the two-day meeting emphasized the potential of Minnesota state deposits and the importance of maintaining productive community relations both locally and globally. The meeting of more than 300 mining industry professionals began on April 20 with a traditional convocation celebrating the values of northern Minnesota. The accompanying tradeshow, with a record 131 booths, showed the speed and vigor of the economic rebound. Keynote speaker Scott Anderson, vice president and senior economist at Wells Fargo, stated the prevailing mood of the conference: ?Wow, what a difference a year makes.? With metal prices and sales up and heading higher, he said, it was clear that the production-centered economic recovery is reaching the mining and the minerals industry. However, Anderson sounded a few notes of caution. Serious threats to economic stability remain, including the burgeoning national de?cit, high unemployment and the still out-of-control foreclosure crisis. Overall, he predicted a below-average recovery and stressed the importance of developing a long-term business strategy.

Jul 1, 2010