Search Documents

By Gary A. Campbell, William A. Vogely

INTRODUCTION The theory of mineral demand often is slighted in the study of mineral economics. The supply side of the mineral industries usually commands a great deal more attention and effort by mineral economists than the demand side does because the study of mineral supply includes topics such as exploration, resource availability, and exhaustion theory that are generally considered unique to the mineral industries. Mineral demand, on the other hand, is thought of as being more general in nature and therefore of less concern to mineral industries specialists since it is similar to the demand for other inputs of production. This similarity with other inputs of production, however, does not negate the importance of a thorough understanding of mineral demand. It is the interaction of supply and demand that determines market behavior and not supply alone. Mineral demand is a key component among the factors that influence mineral production; there- fore, a good understanding of mineral demand can give one better insights into the industry behavior and trends than one would otherwise have. A strong working knowledge of the demand side of the mineral industries is a powerful tool for analyzing and predicting mineral market behavior. The material presented in this chapter does not depend on any special background in economics and should be accessible to all interested readers. The chapter is organized so as to permit an orderly progression of the basic topics of the theory of mineral demand while allowing digressions on related issues of special interest. The first section of the chapter is on the determinates of mineral demand. The discussion be- gins with the introduction of consumer demand and some of the necessary terminology of economics and proceeds to the particular case of the derived demand for an input of production such as minerals and the characteristics of such demand. The second section of the chapter is on the response of mineral demand to changes in economic variables like price and aggregate income. This second section of the chapter be- gins with a general presentation of elasticity of demand and continues with the particular case of the price responsiveness of mineral demand and its nature in the short and long-runs. A brief look at the response of mineral demand to price changes for other products is also included. The chapter concludes with a discussion on the effect of aggregate income changes on mineral demand and its nature in the short and long-runs.

Jan 1, 1985

By W. M. Shaver, W. R. Dengler, F. A. Edwards

INTRODUCTION The Macassa Division of Lac Minerals Ltd. is a high grade gold mine that has been operating in Kirkland Lake, Ontario for the past 51 years. It produces approximately 120,000 tonnes of ore per year, averaging approximately 18.7 grams per tonne (0.45 ounzes per ton) of gold. Over the years, the ore body has been developed to a point where mining takes place below the 1,220 m (4,000 feet) elevation and 1,830 m (6,000 feet) west of the original shaft. The mine is currently serviced by two surface and two winze shafts. (Figure 1). The ore body extends below the 1,930 m (6,400 feet) Level which is the bottom of the existing mining operation. An ambitious underground exploration program has substantially increased these reserves. Concurrent with the discovery of greater reserves, has been rapidly escalating mining costs, particularly labour which constituted 66% of the total cost in 1981. These costs continued to escalate as the major proportion of mining was carried out to the west, far away from the existing hoisting systems. This required three lift hoisting for men, materials and ore. I n addition to the increased travel time and ore handling expense, increased humidity and temperature and ventilation and compressed air losses have added to the inefficiency of the operations. As a result, studies were initiated in 1980 to assess the future of the Macassa operation.

Jan 1, 1985

Conventional logging tools such as density, neutron, and acoustic have ranges of investigation of tens of centimeters. The borehole gravimeter, however, has a range up to hundreds of meters. For example, from the center of a cylindrical orebody 0.22 g/cm3 denser than its surroundings, one can detect the boundary of the orebody at a radius as large as five times its height. More complex structures can be investigated with computer programs. We can predict the usefulness of proposed gravity surveys, or decide which suggested structure is most likely to have caused the results of existing surveys.

Jan 1, 1985

By K. J. Ashley

Over the last six years I have been involved with the calculation of ore reserves and mine planning using various computer systems and soft- ware packages. This experience has given me a unique perspective from which to view the needs of the engineers and geologists whose job it is to produce geologic and mineable ore reserves. The purpose of this paper is to share that perspective with those who are in this field or are thinking of purchasing computer software to aid in these calculations. My first experience with computers in mining was the creation of a mini-computer based coal reserve and mine planning package written as part of my Easter's thesis. This package took about ten weeks to write, four weeks to document, and two weeks to install at the mine for which it was written. It did what it was designed to do, which was to emulate the hand procedure which had been used prior to its installation. The package was specific to its application which involved several small seams of coal being mined simultaneously and would have required major modification for it to be applied to a mine where, say, one thick seam was mined in two benches.

Jan 1, 1985

By Paul Gilmour

"The principal role of the geologist is to recognize the existence of phenomena before trying to explain them" - B.M. Keilau, 1825; A. Holmes, 1965 Some important groups of mineral deposits in the layered rocks of orogenic belts or greenstone belts occur in horizons characterized by the presence of exceptional amounts of silica, iron and carbon, with more or less significant amounts of manganese. Generally, the rocks involved are well banded. In practice, these five physical features - four compositional and one geometric - are found with many lithological guises. Iron formation, in the full, modern sense of the term (James, 1954), quartzite, ferruginous quartzite, chert, jasper, "tetsusekiei" (Horikoshi, 1969), tuffaceous jasper ("purple porphyry" - Anderson and Creasey, 1958, p. 36), ferruginous or graphitic shale, argillite, slate or schist, and hematitic tuff are but a few of the more familiar of the names that have been assigned to these rocks. Widely acknowledged and well-documented examples of metallic deposits found in such sediments include concentrations of iron and manganese and stratabound, polymetallic, massive pyritic sulfides. Less familiar examples include occurrences of asbestos (Miles, 1953; and Coetzee, et al., 1976), antimony (Coetzee, 1976), and perhaps stratabound deposits of Au-Cu-U-W-etc., such as Aitik in Sweden (Mining Magazine, 1975; and Nilsson, 1979) and Olympic Dam in South Australia (Roberts and Hudson, 1983). The case of gold is intriguing. An association between gold and iron formation has been identified at several famous deposits and districts, such as Yellowknife, N.W.T. (Morton, 1979), Homestake, S. Dak. (Sawkins and Rye, 1974), Vubachikwe, Zimbabwe (Fripp, 1976) and the Barberton district, R.S.A. (Hammerbeck, 1976). Yet a critical reading reveals the existence of many other hitherto unsuspected examples. The purpose of this note is to draw attention to that omission and the apparent explanation for it. It is not hard to detect the two most probable reasons for the discrepancy between reality and the record.Most occurrences of gold are associated, not with the familiar banded iron formation or interbedded magnetite and chert (technically, the magnetite-banded variety of the oxide facies), but with the enigmatic carbonate, sulfide and silicate facies of iron formation and/or with rocks evidently related to iron formation. All too commonly, the unfamiliar facies of iron formation have been identified by field and mine geologists and not a few researchers as products of regional metamorphism and hydrothermal alteration, as mafic igneous rocks, or as conventional sediments, ie., without regard to their intrinsically ferruginous nature. The justification for these two complementary assertions is largely to be found in the recognition of a characteristic suite of metals and minerals in gold deposits known to be associated with iron formations. Although, from a geological standpoint, a lithological association is more important than a mineralogical assemblage, the latter is the more likely of the two to be diagnostic. This arises from the different natures of mineral and rock classifications, The identification of a mineral or an element is a matter of fact. Owing to the genetic component inseparable from petrographic nomenclature, viz., "igneous": a rock (believed to have been) derived from a melt, the identification of rocks depends on inferences or conclusions about their mode of formation - conclusions that are commonly debatable and, all too often, involve subjective judgements. This is especially prone to be true, if - as at many of the gold occurrences in question - the host rocks have been metamorphosed and/or "altered". In the notes that follow greater weight has accordingly been assigned to elemental and mineralogical than to host rock composition. In other words, if, in a given gold occurrence, the suite of metals and minerals present conforms to the standards of the subject class, whereas the names assigned to host rocks do not, the latter will be viewed as suspect.

Jan 1, 1985

By A. K. Sinha

A great potential market for the high BTU midwestern thermal coal exists if the coal is desulfurized and prepared to meet the environmental restrictions and the utility customer specifications. Because the midwestern coal is very high in pyritic sulfur, it can be adequately desulfurized by removing the pyrite with the help of such coal cleaning techniques as the froth flotation. Froth flotation cells are now commonly employed in modern coal preparation plants for recovering the fines but they are not utilized for desulfurizing the coal probably due to a lack of system operating data for such applications. A research project recently conducted at Southern Illinois University shows that the total sulfur in the midwestern coals can be successfully reduced from as high as 5.3 percent to less than 1.4 percent by single stage froth flotation. The results obtained on ten different samples of high sulfur coal obtained from different areas in the Illinois Basin are presented and discussed.

Jan 1, 1985

By M. A. Trevits

The explosion hazard presented by methane gas in coal is confronted daily in the mining industry. Research has developed several viable methods for gas control in addition to conventional dilution by ventilation. Such methods include the drilling of horizontal or cross-measure boreholes from a mine opening and vertical boreholes hydraulically stimulated in advance of mining or for gob gas drainage. The long-term production history of five gas drainage installations was studied. Three installations were completed in the Pittsburgh Coalbed: two in West Virginia and one in Pennsylvania. The remaining installations were completed in the Mary Lee Coalbed in Alabama and the Sunnyside Coalbed in Utah. The types of drainage methods utilized included horizontal and vertical boreholes. The length of production studied ranged from 860 days to 36 years. The cumulative production from the five sites was in excess of 155 Mm3, representing a significant volume of gas.

Jan 1, 1985

By Odd E. Hanssen

In April 1982, the contracting Companies, ABV of Sweden and Hoyer-Ellefsen of Norway forming the Consorcio Escandinavo Agoyan, signed the contract for the construction of the civil works of the Agoyan Hydroelectric Project, located in Ecuador, South America. The project is located in the Andes mountain region of Ecuador - one of the smaller countries in this part of the world, located on the Pacific Coast. The contract was signed with the Instituto Ecuatoriano de Electrificación (INECEL), a public institution in charge of the development of all major energy producing projects in Ecuador, for a value of approximately US$ 120,000,000. The contract's main elements are - Concrete gravity dam with a total volume of approximately 210,000 cu m. (60 m wide x 45 m maximum height, 320 m crest). - 2,400 m of headrace tunnel, interior diameter of finished lining 6 m of which 450 m is in-situ tunnel formed in a trench. - Pressure shafts, 132 m long, the lowest meters with sheet lining, the rest with concrete lining. - Powerhouse cavern with an excavated volume of approximately 25,000 c m in which two turbines of 78 MW each will be installed. - Two 140 m tailrace tunnels with a finished diameter (concrete

Jan 1, 1985

By Robert L. Wade

The two primary goals in underground coal mining are to improve safety and to lower mining costs per ton through increased productivity. However, as evidenced by the drastic decrease in. productivity since the enactment of the 1969 Coal Mine Health and Safety Act, (the Safety Act), these goals appear to be mutually exclusive. Millions of dollars have been spent in the res, arch and development of systems to solve this problem. Before the Safety Act, "productivity had experienced a 25-year history of continued increases ...? (Douglas, 1980). But since its enactment there have been dramatic decreases in productivity accompanied by phenomenal increases in mine costs. Labor trends, depletion of the more readily minable underground coal reserves and other factors have contributed to this situation, but the dominant factor is undoubtedly the Safety Act itself. To illustrate, prior to 1969 underground coal mine production was much greater than surface mine production but since then underground mine production has been declining at a rate greater than the overall growth rate of total coal production.

Jan 1, 1985

By K. H. Singh

The addition of new data and corrections can be made under the control of a simple editing session. All programs for this system are written in FORTRAN and executabe "MACROS".. After the addition of new data, the whole file Is reinitialized to update the binary file and cross-reference tables. Updating the binary file involves rerunning the initializing program. The creation of graphic plots like cross sections and plan views is menu-driven from a terminal and very user-friendly. Small files containing not more than 10,000 entries (survey and assay points) are suitable for this setup, particularly for computers with less than 2 Megabytes of real and virtual memory. The largest file processed contained 35,000 lines of survey and assay information and required 4 megabytes of virtual memory. Working with this size file slows down the time for the creation of plots and cross sections. Another independent system is more akin to a financial type of data base. It was installed in one Anaconda mine as part of the operation's inventory, warehouse, day-pay payroll, and purchasing data bases. It is a highly hardware-dependent system, in particular, IBM's CICS/VS (Customer Information Control System/Virtual Storage). This is a true relational data base that optimizes storage requirements, supports online inquiry, update, data entry, and data security. While this system has been tested and proven in accounting applications, it requires programming expertice in PL/I and other CICS utility programs. It is well suited for huge data bases (like the 35,000 lines of data), but cumbersome for small engineering files.

Jan 1, 1985

By V. K. Gupta

The phenomenon of zero order production of fines associated with the batch comminution of monosize feeds in tumbling mills has been examined in the context of the size discretized population balance model. It has been shown that the model admits zero order production kinetics only in an approximate sense. The necessary and sufficient conditions for approximate zero order production of fines have been obtained. As these conditions cannot be expressed in terms of the model parameters Sj and Bi,j alone,. several examples have been used to illustrate some of the important characteristics of the zero order production systems. One of the important characteristics of these systems has been identified as a "weak necessary condition", and the other as a " favourable condition ".

Jan 1, 1985

By Wallace Jarman

Introduction As with many gravity concentration processes, pneumatic concen¬tration traces its origin in antiquity. The use of winnowing to separate chaff from grain has long been known, and such procedures were undoubtedly practiced in ancient civilizations for the concentration of ores and the separation of slag from metal whenever specific gravity, size, and shape differences were favorable. Taggart142 has reported on the use of dry rockers and dry panning techniques for use with gold ores in arid regions such as Western Australia. The present day air table was developed in the last century for this purpose. Devices and Processes Classification. All classifiers make a separation on the basis of size, shape, and specific gravity. In addition to specific gravity and size, particle shape factor is often particularly important to pneumatic processes, and advantage is taken of the fact that both flat and fibrous particles settle at velocities substantially lower than that of their equiv¬alent spheres. Another factor of importance in this process is the bulk density of the material since substances such as exfoliated ver¬miculite or partially opened fibrils of asbestos have bulk densities significantly lower than those of the pure in situ mineral. Winnowing takes advantage of all of these physical factors to affect a separation starting with a closely sized feed, and vermiculite has been separated from rock by this process.142 When air classifiers are used to size minerals, the separation will often not be perfect because heavy particles will respond similarly to somewhat coarser light particles while flat, elongated, and low bulk density particles will act as would particles finer than the cut size. An example of a classification process that also results in concentration is the zig-zag classifier"' used to separate paper from glass, metal bottles, and cans during the recycle of municipal solid waste. Application of this process to minerals showing the proper specific gravity, size, and shape differ¬ences is obvious. An important device of this type is an air-aspirated screen used to remove asbestos from its associated rock during the dry processing of that mineral.144 The raw ore is crushed and screened and the asbes¬tos removed by aspiration from the surface of the screen by virtue of its shape and low bulk density. Hindered Settling. Based on the discussion in the section on "Hindered Settling Concentration and Jigging," the use of air devices could be anticipated in desert areas or where moisture may be deleteri¬ous to the product to be separated. Such processes have three major defects: (1) dust may be difficult to contain, (2) fines are difficult to process, and (3) the process is inherently less efficient than are wet processes as may be seen from Eqs. 3 and 4 in the section on "Hindered Settling Concentration and Jigging p. 4-47." Taggart142 has reported on the use of both dry panning and a dry rocker for gold separation in and regions. The dry panning makes use of winnowing, defection on the basis of specific gravity and shape during fall, and hindered settling. Prescreened placer material is poured from one pan to another as air blows across the falling stream. The process is repeated many times with hand picking to produce a rough concentrate. Magnetic minerals are then removed, and the residue, one grain deep in the pan, is air blown. In dry rocking the gravel is sized on a steeply inclined screen with the undersize fed to a riffle box with a porous bottom which is blown from underneath."' This device was the forerunner of the present-day air table. Air Tables and Jigs.145. 146 At least nine types of these devices have been developed, all but two of them for coal. While the devices used for coal may be characterized as pneumatic jigs, pneumatic tables, and pneumatic landers,145 only pneumatic jigs survive today. The same is true for ores.'" In these devices presized particles are fed to the separator which consists of an inclined vibrating conveyor with a porous surface through which air is carefully introduced to form a fluid bed. The lighter particles are lifted by the air out of uphill conveyance and float downhill, while the heavier particles in contact with the surface are conveyed uphill by the vibrator. Typically both transverse and longitudinal slopes are used. A plan view of a Triple S air table and the type of separation made is shown in Fig. 44.147 Because of its external appearance, the device has been called an air table, although it functions essentially as a jig. However, some of the asymetrical acceleration conveying function of a standard shak¬ing table is also performed by the eccentric vibrator incorporated into this device. Low pressure air is admitted below the vibrating table surface consisting of cloth (e.g., canvas), porous plastic, woven wire, or punched metal supported on a wire mesh or grid. As with a shaking table, the device produces a concentrate, middlings, and tailings. The middlings are recycled or are subsequently treated on another concentrating device. As with many wet separations, presizing by screening is necessary. The oft-repeated admonition of Professor Richards, "Separation without classification is damnation," is cer¬tainly true here. In this way a small heavy particle which might weigh the same as a large light particle and thus report to the same place on the air table has already been removed in the sizing step. Air tables are almost universally encased with a canopy to remove dust by aspiration. Some concentration may also be achieved in this step when favorable specific gravity, size, and shape differences are present. Applications Ore Separations. Air tables were originally developed for ore separations, and they find application in and regions or where water is deleterious or inconvenient to use or remove (e.g., small tonnage materials already dried). They have been used for asbestos, bauxite, calcite, cassiterite, columbite-tentalite, diatomaceous earth, fluorite, gilsonite, graphite, kyanite, manganese minerals, mica, managite, perlite, pyrite, pyrrhotite, vermiculite, and uraninite ores. More recently, air tables have found favor in separating a wide variety of secondary materials such as abrasive grains, bone char, catalysts, fiberglass, scrap glass, scrap wire from its insulation, prills from slag, dross and coke from metal or from each other, metal from crushed crucibles, lead from plastic in old batteries, and cubic particles from flat ones. The devices also finds considerable application in the preparation of food¬stuffs. As stated before close sizing before separation is desirable, and if the specific gravity difference is slight, very tight

Jan 1, 1985

By William D. Leech, Peter S. Buskirk

Virginia Electric and Power Company commencing in early 1985 will begin operating the Bath County Pumped Storage hydroelectric facility, presently the largest capacity installation of its kind. Six concrete lined vertical shafts, 3 ea x 44.0 ft (13.4m) diam x 330 ft (100m) and 3 ea x 28.5 ft (8.7m) diam x 740 ft (226m), comprise a portion of the three underground power conduits. The project team decided to employ the slipform over the conventional jump form method. This selection was based on the engineer's hydraulic design and the contractor's performance requirements. This paper presents the key elements of the shafts' successful slipform operations. The contractor achieved slip rates as high as 60 ft (18m) per day; and the owner received competent permanent linings as specified by the engineer. The authors describe the team's effort to progressively improve both concrete quality and placement rate.

Jan 1, 1985

By Steve Polegato, J. Coady Marsh, Gary Landry

The Donkin-Morien Mine in Cape Breton, Nova Scotia, has successfully completed the excavation of a 7.6m (25-ft) diameter access decline over a distance of 3.5km out under the Atlantic Ocean. The tunnel, completed in December 1984, was driven through a sedimentary sequence of sandstone, siltstone, mudstone and various gassy coal seams prior to intersecting the Harbour Coal Seam where development work will commence. The tunnel was driven by a Canadian prototype tunnel boring machine (TBM) manufactured by Lovat Tunnel Equipment, Inc., Toronto, Ontario. The 7.6m (25-ft) diameter full-face shielded TBM operated at various grades from 0-20%. This paper outlines the TBM design, excavation, support and backup system utilized in the drivage. Problems encountered and drivage rates will be addressed.

Jan 1, 1985

By T. C. Canter

Technological change is continually affecting the mining industry and the many papers being presented at this meeting reflect this fact. I fully agree that miners must remain fully cognizant of technology that can change mining costs and therefore your competitive marketplace. Despite the embrace of new technology and effective mine management techniques, the mining enterprise may not realize increased net income if the structure of the minerals marketplace is not understood. An important segment of the marketing structure for minerals is transportation. Transportation costs per ton can be much greater than the mining costs per ton and may accordingly overshadow hard earned gains in productivity. Change is greatly affecting the transportation industry but the change is driven more by governmental policy than technology. Although some technological advances are occurring in the bulk transportation business, the changes I want to address arise from policy. Policy changes have come from legislation in the 1970's culminating with the Staggers Act of 1980 and ensuing Interstate Commerce Commission decisions.

Jan 1, 1985

By D. V. Bush

There has been a great deal of evaluation and discussion on the economics of semi- autogenous grinding versus conventional grinding circuits. This paper will not discuss the merits of one system over the other, but rather will discuss the Henderson Mill's approach toward achieving the most economical milling conditions in its existing SAG mills.

Jan 1, 1985

By Robert W. Bruhn

Ground movements associated with high extraction underground coal mining, such as pillar retreat and longwall, are sometimes large enough to disrupt the ground water regime as well as damage buildings and other surface structures. A U.S. Department of Energy/Bureau of Mines- sponsored subsidence study currently underway at Kitt Energy Corporation's Kitt No. 1 Mine near Philippi (Barbour County), West Virginia has provided an opportunity to monitor the ground water response above a mine panel during both developmental and pillar retreat mining. The initial findings concerning ground water effects presented in this paper indicate that total extraction mining produced significant water level declines in deep-lying strata but had little effect on water bevels at shallower depths.

Jan 1, 1985

By M. E. Lewellyn

A new class of thionocarbamates, O-alkyl-N-allyl thionocarbamate (III), has been found to give better metallurgy than 0-isopropyl-N-ethyl thionocarbamate (I) for a number of sulfide ores containing copper, lead, and zinc. Data on the results of flotation tests with several such ores are presented. The improved metallurgy is believed to be due to the participation of the allyl double bond in the complex formation of the thionocarbamate on the surface of the mineral.

Jan 1, 1985

By James W. Cooksley

This report concerns a seismic geophysical exploration program which was conducted 3 miles southeast of the Carlin Mine, in Lander County, about 18 miles north of Carlin, Nevada. A twelve-fold reflection seismic line was executed over a one-mile traverse in section 32, Township 35 North, Range 51 East. This study is part of an exploration pro- gram directed toward finding Carlin-type gold deposits which are concealed under younger alluvium and volcanics. The exploration objectives of this program are as follows: 1) measure the thickness of the younger, sedimentary and volcanic deposits which overlie the "productive rock sequence", 2) delineate the Roberts Mountains thrust fault, 3) investigate the origin of the geochemical anomalies present in the western portion of section 32.

Jan 1, 1985

By Madhu G. Ranade

A statistically designed pot grate- kiln test program was conducted to determine the agglomeration process variables necessary for increasing the low temperature disintegration resistance (LTD) and reducibility (R40) of magnetite-based Empire acid pellets. The ASTM tumble index and compression strength were to be maintained at an acceptable level. Six process variables, bentonite addition level, preheat time and temperature, firing time and temperature, and cooling rate, were investigated within the constraints of the Empire plant. The bentonite addition level and firing temperature had the largest effect on pellet properties. The results of this program were verified during a pl ant trial. The target firing temperature at the Empire Plant has been decreased for increasing the LTD and R40 of commercially produced Empire pellets

Jan 1, 1985