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By John R. Bogert

The title of this session is "Wall Street Looks at the Mining Industry," and I am going to attempt to answer the question: Shouldn't Mining Stocks Sell at Higher Price Levels? Or, What Does Wall Street See When Looking at the Mining Industry? Well, it sees a capital intensive business, a technical industry, and a growing industry becoming more vertically integrated. But, at the same time, Wall Street sees a cyclical industry, a fragmented industry of erratic earnings, spotty public relations, a feast-or-famine business where the public usually does not differentiate between coal mining or metal mining, and does not appreciate either the risks or the rewards. As a result, mining stocks generally sell at relatively low price learnings ratios in comparison to other industrial groups. This PIE ratio, the current market price of the capital stock divided by annual earnings per share, is probably the most popular index of a stock's value. The average of the price/ earnings ratios of the 30 stocks comprising the Dow Jones Industrial Average is over 14. This diverse group of stocks is widely regarded as being a cross-section and representative of the industrial companies listed on the New York Stock Exchange. However, in comparison to 14, Asarco and Kennecott shares are currently available for about 8 times annual earnings. Even discounting earnings from South America, the stock of these two companies sells at only 10 times earnings. Of course, Peruvian politics is currently preventing Cerro shares from selling above 6 times earnings, and Chilean politics keeps Anaconda shares at a PIE multiple of 7. However, even in better times, these companies rarely sell above 10 times earnings. American Metal Climax and Newmont sell at only 11 times earnings as does Phelps Dodge and St. Joseph Lead. Few mining companies then have what can be considered a high PIE ratio-a figure higher than

Jan 1, 1970

By A. Moharana

A massive slide at Bingham Canyon wiped out a side of the pit and covered the main haul road in and out of the pit. All pre-slide mine designs and schedules were no longer valid. New designs and schedules needed to be developed quickly to provide management with information regarding the immediate post-slide production potential and the time needed to ramp back up to full production. At the time of the slide, an effort was already underway to convert Bingham?s in-house Medium Term Scheduling Process to MineSight®?s Schedule Optimizer (MSSO). One of the main reasons for doing this was to reduce the time needed to produce Medium Term Schedules at Bingham, which involves a complex shovel-based scheduling approach with shovel productivities based on shovel type and the types of mining cuts to which the shovel is assigned over each planning period. The objective of the schedule was to maximize shovel usage, satisfy mill feed requirements of four SAG mills with variable milling rates, and have flexibility in setting truck constraints. This paper will describe how the new MSSO-based mine scheduling process met the challenge of producing new schedules for Bingham in a minimal amount of time.

Feb 23, 2014

By Dru Brown

More than 150 Mt (165 million st) of material crashed down at the Bingham Canyon Mine (Rio Tinto/Kennecott Utah Copper) near Salt Lake City, UT on April 10, 2013. The mine, one of the largest openpit mines in the world, ceased operations and evacuated personnel prior to the slide when it was discovered that material was moving at a rate of 5 cm/d (2 in./day). The slide destroyed the mine?s visitor?s center, buried several pieces of large mining equipment and severely hampered production. The Kennecott Utah Copper Corp. immediately began to assess the damage and look for options to reestablish operations. The highly unstable ground ? emphasized by another minor slide in September 2013 ? makes any cleanup efforts extremely dangerous. With terrain too dangerous for human operators, Kennecott was forced to look for alternatives that would help the company work on the treacherous slopes of the landslide while also keeping personnel safe.

Jan 1, 2014

By Robert D. Thomson

The plastics industry runs into the billions, both in the dollar value of its finished, products and in the pounds of plastic raw material produced. It is, too, one of the fastest growing industries with a 300 percent increase in production in the past ten years. Informed estimates set 5.9 billions pounds as the plastic volume for 1959. Statistically, this is equivalent to a per capita consumption of 25 pounds in the United States. Plastics are man-made materials in contrast to natural materials like wood and are a family of materials -- not a single material - each member having special advantages. A generally accepted definition; for plastics is; a large and varied group of materials which consist, wholly or in part, of combinations of carbon with oxygen, hydrogen, nitrogen, and other organic and inorganic elements. This, while solid in the finished state, at some stage in its manufacture is soft enough to be formed into various shapes, most usually through the application either singly or together of heat and pressure. Many combinations and many different materials are thus possible. Therefore, for purposes of simplification, most plastics can be classified under one of 14 recognized basic family groups. These groups in turn generally can be further classified into one of two major subdivisions - thermosetting or thermoplastics. A few plastics are in between and they can be formulated to be either thermosetting or thermoplastic.

Jan 1, 1960

Nautilus Minerals and Neptune Minerals are betting that the next great metals rush will take place more than 1,500 m (5,000 ft) below the sea. Nautilus is the first company to commercially explore the ocean floor for gold and copper seafloor massive sulfide (SMS) deposits. Its main focus is the Solwara 1 Project, a polymetallic copper, gold, zinc, silver deposit that is under 1,600 m (5,200 ft) of water off the coast of Papua New Guinea in the western Pacific Oceans? Rim of Fire. Nautilus Minerals, in a joint venture with Placer Dome (now Barrick Gold), began its exploration of what would become the Solwara 1 area in 2005 with side scan sonar and dredge sampling. The dredge and grab sampling confirmed the grade tenor of earlier sampling by scientific research programs. The 45 dredge samples aver-aged 10.8 percent copper, 3.7 percent zinc, 224 g/t (6.5 oz/st) silver and 13.7 g/t (0.4 oz/st) gold. Nautilus has since staked out more than 300,000 km2 (115,800 sq miles) of tenement licenses and exploration applications in the waters off Papua New Guinea, Fiji, New Zealand, Tonga and the Solomon Islands. That is an area about the same size of the United Kingdom. Interest in Nautilus and its projects has grown tremendously since its inception. The company is now listed on the Toronto Stock Exchange. It has raised more than $300 million and spent more than $23 million on exploration. The company has gained the backing of mining majors such as Teck Cominco, Epion, Anglo American and Barrick Gold. It is positioned to become an emerging producer in 2010. Teck Cominco recently agreed to exercise share purchase warrants to acquire three million additional common shares of Nautilus at a price of US$15 million. This will take Teck Cominco?s shareholding to approximately 7.2 percent of the issued shares. Teck Cominco will conduct and manage a ship-based exploration program that will run in addition to the exploration that was already planned for 2008.

Jan 1, 2008

By Heinz C. Dittmar

The phenomenon of radioactivity has been known since the turn of the last century. Scientists of many nations, intrigued by the strange effects of radioactivity, have engaged in research to probe the heretofore presumed, but largely unknown world of atomic structures and subatomic- particles. A theory evolved of splitting the atom, thus providing insight into the structure of matter and opening the way to possibly create new materials. Many years of effort culminated in the first chain reaction in 1942. The beginning of the atomic age was drastically demonstrated by the flash of the large scale chain reaction of the first atom bomb. It was actual proof of the incredible energies contained in matter.

Jan 1, 1966

By Ranajit Kumar Sahoo, Shatrughan Soren, Surendra Kumar Biswal, Soumya Sahoo, Sachida Nanda Sahu

The presence of appreciable quantity of clay mineral in Indian hematite ore needs an attrition technique using screw scrubber in the beneficiation circuit to remove the ultrafine clays and avoid downstream operational problems. Spectroscopic analysis revealed that iron ore samples obtained from the Barbil region of Odisha contain a high amount of silica and alumina in the form of clay minerals (e.g., kaolinite) contributed as a loss on ignition (LOI) in the iron-making process. Iron ore fines of below 10 mm size were subjected to a laboratory-scale screw scrubber, and the effectiveness of scrubbing as well as the pelletization of the scrubbed product was investigated. The screw scrubber in the beneficiation circuit helps to remove the clay minerals, causes an increase in iron values from 63.65% Fe(T) to 66.18%Fe(T), with improved physical (CCS of 325 kg/pellet) and metallurgical (RDI of 2.24%) pellet properties.

Aug 31, 2020

By John L. Burnett

Field criteria are needed to help the prospector recognize a potentially expansible shale, clay, or slate. Certain criteria have proven useful in California even though the physical-chemical mechanisms of expansion are not thoroughly understood. Three conditions must be satisfied before expansion can take place, The raw material must partially fuse at a low temperature (1800-2000°F.), Concurrently a gas must form. The raw material must be sufficiently impermeable to trap the gas within the particle. Low temperature melting, which is controlled by bulk chemical composition, is difficult to assess in the field but most common shale, clay, and slate is suitable in this respect, The presence of organic carbon, the most common source of an expanding gas, is indicated by dark color of the rock, A large proportion of clay-sized particles promotes impermeability; fine grain-size is indicated by conchoidal fracture, The shape of the expanded particle is commonly indicated by the texture of the raw material. Rocks with well-developed slatey cleavage produce accordion-shaped particles; massive rocks tend to form rounded particles. Undesirable materials commonly present with expansible shale include: weathered shale; sandstone and other coarse-grained sediments; and limestone, Weathering, which is indicated by color, reduces or eliminates expansion; therefore, surface samples seldom are representative of the shale found at depth. Sandstone does not expand and will increase the average weight of the finished product, Limestone or particles of carbonate minerals can be actively harmful because they are converted to free lime (CaO) during the firing process, If free lime is present in concrete, hydration will cause expansion of the lime particles which result in surficial ?popouts.?

Jan 1, 1963

By J. B. Griffiths

Clearly there is a tremendous need for assistance in Eastern Europe since most industries must undergo major restructuring. The new governments face many dilemmas, the first task being to establish an order of priorities to deal with the numerous problems at hand. Issues such as the standard of living take low priority compared with market economy and ecological problems. The concept of a Comecon market is now virtually non-existent and trade in roubles ceased from 1991. From this time onwards countries were obliged to trade using free market prices. Governments must also avoid the economic mistakes of countries such as Poland with its high devaluation and lack of economic control and, if possible, contain inflation and unemployment. The privatization of Eastern European enterprises raises considerable difficulties, particularly for large corporations, employing anywhere from 50-100,000 people, which played a major role in the national economy. Whichever method is selected, however, still has to overcome the problem of lack of capital and evaluating the national property. For example, earnings represent only a small percentage of the value of these national industries and thus cannot convert to private ownership without foreign capital investment, either direct or as joint venture capital.

Jan 1, 1992

By J. Walden, S. Rhoades, R. E. Miller, R. Gibbs, P. Boman

Accelerometers and pressure transducers mounted in suspension components can be used to monitor the ride of haulage trucks. Presently, it is difficult to tell what caused a jolt to the truck using either pressure or acceleration data alone. When information from a Global Positioning System is recorded at the same time as shock pressures or acceleration data, then the exact location of an event can be determined. Mine management can then determine what caused the jolt to the truck.

Jan 1, 1999

By Kenneth K. Landes

Lake stone is a term currently applied to chemical and metallurgical grade limestone or dolomite that is brought down Lakes Michigan and Huron by large cargo vessels, mostly self-unloaders. This stone comes from 5 quarries, all in Michigan and all steel company owned. The volume in 1973 was over 34 million tons. The primary reasons for the large volume are the quantity and quality of the stone available, and the low delivery costs to lower lakes markets. The source rocks are Silurian and Devonian limestones and dolomites of exceptional purity. The regional dip of these formations is 50 to 60 feet per mile southerly toward the lowest point in the Michigan structural basin, which is near the center of the Southern Peninsula. Two of the 5 quarries, both high calcium limestone sources, are on Lake Huron in the northeastern part of the Southern Peninsula. The other three are in the Northern Peninsula; one at the northern end of Lake Michigan, and two on northern Lake Huron. The western quarry is in limestone, the other two in dolomite.

Jan 1, 1975

By John H. Lichtblau

There are three parties to the oil imports controversy: the domestic oil producers, whose side has just been ably summarized by Mr. Jameson; the oil importers; and the public. Domestic producers and importers are both motivated by economic self-interests, that is by their natural and legitimate desire for profit maximization, in their respective positions. Thus, domestic producers, rightly, regard every barrel of imported crude oil (with the exception of some specialty crudes) as a displacement of a barrel of their own crude. Hence, the lower the import Level the better they like it. Conversely, U .S. refiners whose plants are located at the seaboard or at certain inland waterways generally welcome a higher level of imports because refiner profits are based primarily on the spread between the crude oil price and the refined products price, since crude oil represents by far the refiner?s largest cost factor. The relatively low cost of foreign oil means therefore higher profits to those refiners able to process such oil, This applies particularly to integrated companies whose own domestic oil production is insufficient, to meet their refinery requirements but who have developed ample low-cost foreign oil supplies.

Jan 1, 1962

By Dan Nilsson

Open pit mining is the strong sector of the American mining industry. In the middle of the 60's. 17-18% of the ore in metal mines was mined with underground methods. From the middle of the 60's to 1980 the production in open pit metallic mines increased from about 400 to close to 600 million short tons while at the same time the underground mine production decreased a little, from about 90 to about 80 million tons. Less than 15% of the ore prodction now come from underground mines. Large amounts of waste rock were also handled in the open pits. In the middle of the 60's about 600 milion tons were handled, in 1980 1,200 million tons were moved. This means that the average stripping ratio increased from about 1.5 to over 2.0 tons of waste rock per ton of ore, figure 1.

Jan 1, 1983

By N. Edmonson

Apart from its role as an essential input to a wide array of agricultural chemicals and industrial processes, sulfur is interesting in that its supply involves competition between primary product and by-product. This general production structure is found repeatedly among markets for metals and other industrial minerals, and research results from the sulfur market potentially carry over to other markets with similar structures. The purpose of this paper is to present an analysis of the recent and prospective market for sulfur. The analysis will rely heavily on simulation using a comprehensive model of the North American sulfur market developed by the author. A brief description of the model is offered by way of introduction

Jan 1, 1993

By H. R. Butler, J. F. Church, A. T. MacGibbon

Introduction Inco is the major North American nickel producer. Initially based in Sudbury, Ontario, its past exploration activity was directed toward finding new nickel deposits. New nickel sulfide discoveries outside Sudbury have included Thompson, Manitoba; Shebandowan, Ontario; and Widgiemooltha in Western Australia as well as a host of nickel laterite deposits. The company is currently diversifying into other commodities, including gold. Inco's exploration department participated in uranium discoveries in Saskatchewan and chromite discoveries at Tiebaghi in New Caledonia. In addition, it found new gold deposits at Lupin, Northwest Territories; Crixas, Brazil; Hoyle Township, Ontario; and Casa Berardi in Quebec. Crixas and Casa Berardi are currently being evaluated by underground exploration. Figure 1 shows some Canadian Shield gold locations where Inco is or was an active participant. Base metal developments Base metal exploration in shield areas has been greatly eased by applying scientific studies. Archean nickel sulfide deposits have been found using komatiitic-flow models (Fardon, 1971). Volcanogenic massive sulfide model has been applied to copper-zinc deposits (Sangster and Scott, 1976). Such deposits were subsequently seen developing on the sea floor through black smokers (Spiess, MacDonald, and Atwater, 1980). Sedimentary processes were recognized early as important in ore formation, particularly in the southern hemisphere (King, 1976). And many ore deposits are now regarded as a simple part of the geological column (Stanton, 1960 and 1972). Petrographic work on alteration patterns in and around ore bodies was used to develop standard porphyry copper models (Lowell and Guilbert, 1970). Epithermal models for precious metals followed. Stratigraphic zonation patterns have been formulated for base metal deposits, including keel facies, ore facies, and cap or distal facies. Gold developments The work on base metal deposits naturally spilled over into precious metal exploration when the gold price was allowed to float on world money markets. Early work on elements associated with gold deposits, especially arsenic, tellurium, selenium, and mercury, pioneered more detailed geochemical work (Bagby and Berger, 1985; and Groves, Ho, and Houstoun, 1984). Geochemical patterns have been recognized around microfine gold deposits. And the study of gold precipitation patterns in modern geothermal systems has helped understand gold deposition. In the late 1960s and early 1970s, it was noticed that numerous Archean banded iron formations contained anomalous gold values. From this and other observations, the syngenetic exhalite gold model has developed. Gold deposits also occur along shears in some plutons such as the Belmoral mine in Quebec. This indicates the importance of epigenetic processes in ore formation. Shield ore settings Initial studies recognized that the major gold camps in the Canadian Shield were mostly in greenstone belts and found along "breaks," especially zones of faulting and sedimentation. Gill (1948) wrote, "Only recently, as a result of detailed mapping, has the importance of major schist zones such as the Larder Lake, Cadillac, Porcupine Creek, and Destor Breaks been recognized. These zones of persistent adjustment mark broad belts favorable for ore occurrence." The importance of shearing in ore location and regional greenstone stratigraphic position close to late sedimentary packages was clearly understood. And structural models have been further developed for some Canadian ore deposits (Hubert, Trudel, and Gelinas, 1984). In the Beardmore-Geraldton camp of northwest Ontario, the importance was soon recognized of fold noses in banded iron formation, as localizers for gold ore. This importance had also been recognized in Western Australia,

Jan 2, 1987

By R. G. Hite, R. G. Rowe

The Crandon deposit, located in northern Wisconsin, is a 65.8 million ton Precambrian volcanogenic massive sulfide deposit which averages 1.4% copper and 5.8% zinc. The deposit is classic in origin, mineralogy and shape. Comprehensive understanding of the geology of both the deposit and the project site has been fundamental to the credibility and success of project feasibility studies and regulatory permit preparation. Mine development in the current investment and regulatory climate requires thorough and timely application of geologic tools. From 1977-1980 geologic activities were focused on the typical objectives of orebody delineation, reserve estimation, depositional geology, and general site investigation. Results from these programs formed the basis for the project's preliminary feasibility studies. Since 1981 further geologic investigations have provided criteria for project design, site management, and operational permitting. Activities have included mine entry position definition drilling, devel reserve modeling, large diameter (150 mm) core drilling for mill pilot samples, rock mechanics testing, and evaluation of the glacial overburden/deposit geohydrology for computer simulation.

Jan 1, 1992

By P. C. O. Chukabarah

Many aerodynamic and thermodynamic properties, such as temperature, pressure, velocity and density vary widely, and in random spatial and temporal manner for a given underground mine environment. Such variabilities are seldom evaluated statistically, even though the relevant theories and principles for such an approach are both available and feasible. The main purpose of this paper was to introduce the new methodology of applying aerostatistics to the analysis of multiple fan system in mine aerology and/or ventilation. Pertinent data were obtained from a small multilevel coal mine. Results proved and confirmed that aerostatistical methodologies are computationally more efficient, grounded in solid engineering statistical theories, and can be used to analyze networked parameters in mine environmental engineering.

Jan 1, 1994

By J. R. England, W. J. Taylor

The Sudbury Basin is the scene of the mining operations of the Ontario Division of the International Nickel Company of Canada, Limited. Around the rim of the geological formation and within thirty miles of the City of Sudbury are located twelve operating mines and one open pit operated by the Company. The City, with a metropolitan population of some 100,000 lies 240 miles Northwest of Toronto. In addition, there is one mine in Northwestern Ontario, at Shebandowan, 700 miles Northwest of Sudbury. In 1973 these mines produced 16.5 million short tons of ore of which 14.9 million tons were from underground and the balance from open pit operations. Mining methods include blasthole, sublevel caving, induced caving, shrinkage, cut-and-fill and undercut-and-fill. Raise boring commenced at Inco in 1964 and is now applied at all mines in the Sudbury District (Figure 1). [ ]

Jan 1, 1974

By H. Askari-Nasab, B. Osei, K. Awuah-Offei

The U.S. coal mining industry consumes approximately 142 billion kWh/a of energy. The U.S. Department of Energy estimates that the industry’s annual energy consumption could be reduced by 49%. This constitutes nearly $3.7 billion of potential savings on coal production costs at 5.3¢/kWh of energy. Additionally, with climate change regulation on the horizon, any benefits from energy savings in the near future are compounded by associated reductions in CO2 emissions. Research indicates that operating conditions significantly affect energy efficiency. Modeling and simulation have been shown to be a cheap and reliable means of evaluating the effects of process interactions and operating conditions. The goal of this work was to apply stochastic process simulation to model the energy efficiency of a typical truck-and-shovel mining system and use the model to evaluate production strategies to improve energy efficiency. The research team conducted energy audits of truck-and-shovel overburden removal and used the results to develop regression models describing truck and shovel fuel consumption. The team then built a stochastic simulation model of the truck-and-shovel overburden removal operation and used it to assess a variety of improvement measures by simulation experimentation. Valid fuel consumption models for shovel loading and truck haulage have been formulated, based on the energy audit results. Valid stochastic process models of truck-and-shovel operations have been formulated to study energy efficiency. The following strategies, in decreasing order of impact, provide the most energy savings for truck-and-shovel overburden removal at the mine: (1) shorten haul roads, (2) increase shovel capacity and (3) increase shovel utilization through optimal truck matching. Additional data will be required to adequately describe operator effects on energy efficiency.

Jan 1, 2011

By L. G. Hendrickson

Direct-reduction processes for converting iron ores to metallic iron in the solid state have been available for some time; and whenever scrap becomes expensive, there is a new wave of interest in these processes. It is well established that direct reduction, coupled with electric-furnace steelmaking, is a technically viable method for making steel and in some circumstances is economically competitive with the conventional blast-furnace--basic-oxygen-process (BOP) route to steel. This raises a number of interesting questions, several of which could be of great interest to the coal and ore mining industries. For example, what are the quality requirements of the raw materials for direct-reduction--electric-furnace steelmaking? Would they be different from the present requirements for blast-furnace--BOP steelmaking? Other questions relate to how much steel will be made by the direct-reduction route in the future. The quality questions can be discussed with a fair degree of certainty, but a prediction of the amount of steel that will be produced by the direct-reduction--electric-furnace route is beyond the scope of this paper. However, an attempt will be made to identify some of the factors that will influence whether there is a swing to direct reduction and the rate at which it may occur.

Jan 1, 1978