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By Henry R. Linden

The demand for natural gas continues to increase at higher than anticipated rates, partly because of its widening price advantage over most other fossil fuels when the cost of air pollution control is included. However, there are clear indications that natural gas supply from the contiguous 48 states and continental shelves will not indefinitely keep up with this rapid growth in demand. Projections are presented which define the extent of potential deficiencies from the 1970's to the year 2000. Among the sources of supplemental gas - imported pipeline natural gas from Canada and Mexico, tanker import of liquefied natural gas, and synthetic pipeline gas from coal and oil shale - by far the most abundant at potentially competitive costs is pipeline gas from coal. The state of development and relative economics of the various coal gasification processes are reviewed. It is shown that synthetic pipeline gas could become a very substantial market for bituminous coal and lignite at current minemouth prices - 60-70 million' tons of coal for each trillion cubic feet of synthetic pipeline gas produced. This corresponds to only slightly more than the current annual increase is gas demand.

Jan 1, 1969

By E. A. Adey, C. Baciu, P. Whitbread-Abrutat, M. Varul, T. Ejdemo, R. K. Shail, F. Wall

Responsible mining requires stakeholder engagement throughout all operational stages and after mine closure. By assessing the current and anticipated future socio-economic and environmental impacts, a company can maximise the positive impacts they can have on a community, whilst minimising any negative impacts. Despite the current emphasis on companies maintaining effective stakeholder relations to gain their ‘social license’ to operate, findings of the present study reveal a wide variation in community expectations, with different degrees of ‘acceptability’ evident across seven sites in Romania (Rosia Montana), Sweden (Kristineberg), the United Kingdom (Cornwall), Bosnia Herzegovina (Vihovici) and Russia (Karabash, Gay and Mednogorsk). These variations reflect the current status of mining within a community, as well as its socio-economic background and the nature of existing engagement with mining companies already operating in the region.

Jan 1, 2011

By H. Lyn Bourne

This is the eighth annual tabulation of royalty information. Again this year, some of the older information has been deleted to make room for nearly 30 new entries. Several articles and publications have appeared recently that relate to mineral royalty or mineral valuation. R. B. Parsons wrote "Mining agreements, royalties and profits" (CIM Bulletin, November 1988). He distinguished between net smelter return (NSR) and net profit interest (NPI). Parsons used examples to show the difference between these royalty payment methods. Mining Engineering (January 1990) carried an article by H. V. S. Tingley entitled "Using business due diligence to help evaluate mineral deposits." The article identifies some factors that must be examined during mergers or acquisitions in the mining industry. Since each mining operation is unique, each has risks and opportunities that need recognition and evaluation. The author suggests that a team is necessary for a proper evaluation because no one person has expertise in all of the factors that must be examined. Also in January's Mining Engineering was "Limestone mining: Reserves and valuation," by B. C. Lewis and R. P. Moran. They presented two case studies of valuation of limestone reserves. One was a 109-hm2 (270-acre) parcel in West Virginia and the other a 121-hm2 (300-acre) tract in Alabama. The authors discussed risk, discount rates, and royalty methods as financial parameters in valuation of limestone reserves. Two papers were presented at the SME meeting in Las Vegas, NV in 1989 that bear mention. J.G. Russell's talk was entitled "Valuation of industrial

Jan 1, 1990

By S. Kemball-Cook, D. Heinze, A. Kornberg, M. Harmon

Climate change presents risks to mine infrastructure, operations and long-term obligations to protect environmental conditions. Management strategies and design of infrastructure and containment systems based on past or current climate conditions may be inadequate in the future if changes in climate are not taken into account in planning for mine operations, decommissioning, closure and post-closure. Data-driven assessments using climate model projections of the future can be used to quantify: • Changes in site-specific risks to mine structures, access, containment facilities, operations and staff safety. • Changes in vegetation and water balance/chemistry, and potential for acid mine drainage, erosion and design failure. Climate- and weather-related risks are a serious threat to the mining industry, but risk transfer solutions can alleviate these vulnerabilities. Mining companies can protect themselves through bespoke solutions which provide operators, investors and buyers with protection against weather-related disruptions to operations by hedging to smooth revenues. Using risk transfer structures to mitigate climate risks is a mechanism that is available to all types of mining operations world-wide. In this paper, we describe methods for evaluating site-specific climate change impacts and developing risk transfer solutions to mitigate their effects. EVALUATING MINE RISKS FROM CLIMATE CHANGE The best available tool for understanding potential future changes to the earth’s climate system are global climate models (GCMs) (IPCC, 2014). GCMs are computer simulations of the climate system which include the atmosphere, ocean, land surface, cryosphere and biosphere. Because of the computational demands of running a global model for many decades, the spatial resolutions of the GCM grids are necessarily coarse, typically on the order of 100-300 km. GCM data are therefore suitable for evaluating future physical risks on global or continental scales, but may not be appropriate for evaluating location-specific risks (e.g. Kotamarthi et al., 2016). For site-specific, quantitative physical risk assessment, GCM projection data are “downscaled” or adapted for use at the local level using statistical techniques together with observed data (statistical downscaling) or using high-resolution regional climate models (RCMs) that focus on a single geographic region and have spatial resolutions of 10-50 km (dynamical downscaling). Downscaling bridges the gap between the GCM scale and regional/local scale. Through the downscaling process, new information is added to the GCM output from observations and/or RCMs, resulting in patterns for weather variables that are more consistent with local terrain and weather influences. Downscaled climate change projections for the mine site are selected considering mine location and geography, the availability of local observations, and the performance of the downscaling method and global/regional models used to develop the projection in simulating the variable under study. Where possible, we use projections from an ensemble of global and regional model runs spanning a range of future greenhouse gas (GHG) scenarios.

Jan 1, 2019

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 Feridon Ghadimi, Saeed Mojeddifar, Massume Khavari

Separation of geochemical anomalies from background is an important and essential issue in the exploration of mineral deposits. Statistical methods are used to separation of anomaly from background. Fractal/multifractal and singularity methods are very suitable for the separation of weak anomalies. For interpolation, various methods could be used such as most distance-weighting methods, kriging, spline interpolation, interpolating polynomials, and finite difference methods. This paper addressed application of multifractal techniques together with finite difference procedure to detect the anomalous regions. Fractal models such as concentration–area, spectrum–area, and singularity index model were selected to identify Pb–Zn anomalies. In this research, 170 samples from 33 boreholes were taken in the Haft-Savaran area and analyzed for determination of Pb–Zn anomaly. Singularity method was a suitable method for separating Pb and Zn anomalies. Also, the results showed that the geochemical anomaly has occurred along NE–SW trend and is consistent with the sulfide mineralization process and the faults of the region.

May 18, 2020

By L. C. de Kooker, K. Esmaeili, I. Musonda, M. Ferentinou

A numerical investigation of the effect of pore pressure regime on the safety factor and the critical failure mechanism is presented for fly ash storage facility. Pore pressures’ measurements from standpipe piezometers and pore pressure estimated from seepage analysis are used to compare the factor of safety for a fly ash slope. This was applied for considering static and seismic scenarios. A probabilistic approach was applied to account for the uncertainties resulting from the limited data available and support a qualitative risk assessment evaluation. Slope stability analysis is conducted in two and three dimensions, adopting the limit equilibrium analysis approach, and also a finite element seepage analysis, to assess the stability of the slope. The two-dimensional cross-sections were extruded to three-dimensional models to estimate the factor of safety and associated shear failure. The results from the performed analysis suggest an increase in safety factor values of 5%.

Mar 27, 2024

By H. Lyn Bourne

The is the 14th consecutive year for this column and the 13th in which the royalty data have been tabulated. Some holes still exist in the list of royalties that readers hopefully will fill. Construction aggregates - either sand and gravel or crushed stone - are the most common mineral commodity. In spite of their pervasive use nationwide, royalty information for these commodities has been difficult to acquire from some states. Readers can help. Share information about these missing states and next year there will be fewer states without information. Dennis Bryan sent a copy of a report, "Regional Appraisal of Mineral Materials: Carson City District, BLM." The report was authored by real-estate appraisers. It contains more than 50 references to leases of various construction materials in Nevada and nearby states. It gives a thumbnail sketch of each lease and is a good reference. However, the authors erroneously imply that the royalty rate and the in-place value are the same. Several of this year's new entries come from the report. However, the royalties for landscaping materials vary from state to state and by rock type. Some boulders used for landscaping in Nevada have a royalty reported at $1.10/t ($1/st). At the other extreme is lava from Idaho. Used for the same purpose, it has a royalty range of $11 to $18.70/t ($10 to $17/st). Chuanming Tian of Beijing, China has shared some information about the changing mineral royalty policies in China. China first implemented an oil and gas royalty in 1984. In 1992, the government expanded that to include iron ore. In 1994, the royalty policy was extended to all mineral commodities. At the same time, the royalty rate for iron ore increased tenfold.

Jan 1, 1995

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 H. Hinds

Plant testing of DuPont's Activator Technology in the vat leach circuit of the Homestake mine shows increased gold recoveries of 3-5%. Activators are catalysts of gold dissolution in cyanide solution. DuPont received the patent for this technology in January, 1996. The test was run in the west sand plant alternating control and activated vats to reduce the variability in head grade and cyanide consumption. Activated vats had gold in the preg solutions earlier, higher gold recovery, and lower gold residuals. Activator addition did not adversely affect mill operations or the environment. Optimization of the technology continues.

Jan 1, 1997

By C. N. Speltz

The cost of transportation of industrial minerals is frequently higher than the cost of the product. Where a minc, industrial mineral plant. or customer is served by a single railroad, that single railroad, because of lack of competition, may increase rates and/or provide inadequate service so that the economics of that mine, plant or customer are adversely affected, or so that the level of service precludes satisfactory performance. Transloading of industrial minerals from rail-to-truck or truck-to-rail in order to improve economics and sales of product is not new. However, transloading to reduce freight costs or improve inadequate service caused by a lack of competition in the rail industry, is a relatively new concept brought on by the recent mergers of many of the main line railroads, both in the eastern and western United States. For example, with completion of the Burlington Northern/Santa Fe and the Union Pacific/Southern Pacific mergers, the western United States has only two mainline railroads. The industrial mineral producer, in order to reduce the cost of transportation, or increase the level of service, must evaluate potential transloading opportunities in light of higher prices and reduced service brought on by reduced railroad competition.

Jan 1, 1998

By Willard C. Lacy

INTRODUCTION A program to insure adequate talent for development and management of our mineral resources entails two equally important and interrelated aspects: 1) attracting and retaining promising student talent, and 2) providing a first-rate education for those entering careers in mineral science and engineering. Manpower shortages have eased in many areas of engineering, particularly in those areas dependent directly or indirectly upon government contracts in space and war programs. However, in the minerals industry the needs still remain critical. As increasing concern over preservation of the environment has developed, the political and social reaction was to seek out major offenders, to look for "whipping boys" -- and the mineral industry was, and had been, an offender. It was there for everyone to take pictures, it couldn't be covered up, and the Department of the Interior lashed away in the beautiful and popular brochures: Quest for Quality, The Third Wave, The Population Challenge, and Surface Mining and Our Environment (Ravaged Land). The Sierra Club, the Field and Stream magazine, TV, and daily news media added their lashes. In the minds of our social-conscious youth the mineral industry took on the image of "exploiters" of natural resources; "polluters" of streams, lakes, and the atmosphere; "despoilers" of wilderness areas and scenic beauty -- a plague to combat, rather than an exciting challenge that entailed exploration of the remote, conquering of the primitive, and developing of the undeveloped. Enrollments declined and many traditional mineral engineering curricula were abolished or Integrated into other stronger engineering departments to meet student-faculty ratio requirements.

Jan 1, 1971

By Karl V. Lindell

Asbestos is not the name of a distinct mineral species, but rather the commercial term applied to the fibrous form of several minerals differing widely in composition. There are some 30 known varieties of asbestos but of this number only 6 are of economic importance, and these, in order of economic significance are chrysotile, crocidolite (or blue asbestos), amosite, anthophyllite, actinolite and tremolite. Chrysotile asbestos was formed by the introduction of hydrothermal solutions into fractures in serpentinised ultrabasic host rocks. These solutions dissolved magnesium silicate from the wall rocks, and with subsequent lower temperature and pressure they became supersaturated, and crystals of chrysotile asbestos formed. The chemical composition is variable but is classified as a hydrous magnesium silicate, containing a high percentage of magnesia and water, plus varying amounts of alumina and ferrous and ferric iron. Other asbestos minerals are formed by a similar process but with a different host rock e.g. crocidolite occurs only in iron' formation. The chemical composition of asbestos minerals other than chrysotile, shows a wide variation, but in general may be classified as silicates, or metasilicates, containing varying amounts of calcium, magnesium, sodium and iron.

Jan 1, 1964

By Terrence J. Stobbe

On the job injuries to the musculoskeletal system are probably the oldest of the industrial safety problems. Long before we had pinchpoints to guard, chemical vapors to ventilate, and noise to enclose, people were getting strains, sprains, and sore backs from their work activities. In spite of the age of the problem, it remains a long way from being solved. The past ten years have seen a significant commitment by the sci¬entific community to understanding the problem. Engineers, scientists, doctors, and epidemi¬ologists have been involved, and as a result, today we have a much better understanding of the problem. The first step in understanding a problem such as this is to explore its history and epidemiology. The research done by Chaffin (1977), Snook (1970), Ayoub (1978), the ILO (1962), and others, led NIOSH to publish its Work Practices Guide for Manual Lifting in 1981. The guide was based on research carried out in general industry, but subsequent research by Stobbe (1983) and Peters (1983) has suggested that the nature of the problems producing injuries in underground mining is the same as in general industry. The problems are more intense in the mining environment.

Jan 1, 1984

By R. J. Smith

Hornestake's Mclaughlin Mine is the first commercial application of pressure oxidation pretreatment of gold prior to cyanidation. Inherent to the autoclave process are several liquid/solid separations. Flocculant consumption represents a significant portion of the consumable reagent costs at McLaughlan. This paper focuses on the efforts of the Operating, Metallurgy and Engineering groups to improve thickener operation and minimize flocculant consumption. An operating philosophy incorporating feed solids control, increasing flocculant dilution water and minimizing flocculant solution shear has resulted in a reduction in 1986 flocculant costs of $0.054/t ($0.06 st) versus 1985 costs. Additional changes are projected to result in a further cost reduction of $0.20/t ($0.22/.st) in 1987.

Jan 1, 1988

By Larry F. Barrett

Anaconda exploration in the Rico mining, district from 1978 through early 1983 resulted in discovery and partial definition of the Silver Creek molybdenum deposit. Approximately 44 million tons of 0.31% Mo are drill-indicated, and projections suggest that the deposit exceeds 200 million tons. No source intrusion has been intersected by drilling, but its composition is suggested by silicic alkali-alaskite porphyry dikes of intramineral age observed at the surface and in drill holes. Age data and fluid inclusion studies indicate that the deposit was formed 5.2 ±2 m.y. ago and that more than 1,200 meters of cover has since been removed by erosion. Both emplacement of the hypothesized source intrusion, and the geometry of the molybdenum deposit, were influenced by three major intersecting faults. The most significant of these, the Last Chance fault, juxtaposes Precambrian quartzite and greenstone against Pennsylvanian clastic and calcareous sediments within the mineralized zone. Wallrock alteration associated with the deposit is characterized by potassic, phyllic, and propylitic zones in non-calcareous rocks, and garnet and anhydrite-diopside zones in the carbonates. All +0.2% Mo mineralization is within the potassic and garnet zones. Pre-mineral faults that intersect the deposit contain the only surficial molybdenum, tungsten, and fluorine anomalies. Pervasive dispersion haloes of the indicator elements were intersected at depth by drilling in the discovery phase of exploration, and are particularly well-developed in the hanging wall of the Last Chance fault.

Jan 1, 1985

Lack of selectivity in mixed mineral flocculation can be attributed to one or more of the following factors: dissolved ion interference, heterocoagulation, mechanical entrapment in flocs and entrainment of fines between flocs. In a study of apatite- dolomite system, it was determined that dissolved ions do not have a significant effect on selectivity. Heterocoagulation was minimized by choosing proper process conditions and addition of a dispersant. Mechanical entrapment was proved to be insignificant and efforts were made to reduce entrainment by choosing an appropriate method of separation of flocs from fines. A new factor termed "polymer induced entrapment" which occurs due to limited affinity of the polymer to the mineral which is not flocculated is postulated to be the cause for the loss of selectivity.

Jan 1, 1986

By D. Küster, G. Franken, P. Schütte, J. Vasters

The CTC (Certified Trading Chains) mineral certification system has been piloted in Rwanda since late 2008. CTC project implementation is jointly driven by the Federal Institute for Geosciences and Natural Resources (BGR) and the Rwanda Geology and Mines Authority (OGMR), in cooperation with other national stakeholders. Five Rwandan mineral producers participate in the CTC project with their flagship mining concessions. Based on independent third-party audits, CTC certifies supply chain due diligence measures of these companies engaged in the artisanal mining sector through on-the-ground assessments of mining conditions, transparency, as well as mineral origin and traceability. The CTC system thus allows responsible mineral producers and their clients to verifiably demonstrate supply chain due diligence and good governance in conflict-affected and high-risk areas.

Jan 1, 2011

By S. Philipp

This paper describes several variants of placement and design, from a technical and economic point of view, of shafts, ore bunkers and drifts near shafts of a Russian potash mine. Advantages and disadvantages of the position of different workings are shown as well as an analysis of stratigraphic and geological layers and their use for excavating pit bottoms, haulage drifts and bunker installations. The potash mine consists of two hoisting shafts and one service shaft. The hoisting capacity of one of these skip shafts is planned to be approx. 7 Million tons of crude potash salt per year. Both shafts together will have a hoisting volume of about 14 Million tons. When the mine will increase their highest level of production, it will be one of the biggest potash mines in the world. The skips, the hoist drives and the bunker near the shaft will belong to the largest ones worldwide, too. This paper specifies the features of such a double skip shaft pit in detail and demonstrates problems, which depend on the fact that the pit bottom is in a depth of nearly 1200 m.

Feb 23, 2014

By H. Lyn Bourne

The is the 13th year for this column and the 12th in which the royalty data have been tabulated. There still exist some holes in the list of royalties that readers hopefully will fill. The most common mineral commodity is construction aggregates - either sand and gravel or crushed stone. In spite of their pervasive use nationwide, there are states from which the author has no information about royalties for either of these commodities. The reader can help - share information about these missing states and next year there will be fewer states without information. Severn Brown again sends helpful information from the Prospectors and Developers Association of Canada (PDAC). The PDAC Digest contained an article that distinguished between ‘net smelter return royalty' and ‘net profits royalty’ (Haase). The article also lists clauses and details that Brown suggests should be included in a net profits royalty contract.

Jan 1, 1994