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By Jean-François Boulanger

The production of rare earth elements from ore usually consists of three steps; the separation of a concentrate of REE bearing minerals; the cracking of the REE minerals to liberate the REE into an aqueous solution and separation of REE into individual elements. This paper describes the results of laboratory tests conducted on a carbonate-rich REE ore containing bastnaesite and monazite. The tests cover the whole processing sequence of beneficiation, preparation of the REE solution using a caustic leach followed by acid leach to break monazite and bastnaesite and liberate REE into an aqueous solution and the partial separation of the REE using solvent extraction. Details on the product quality and process performances (recovery and impurities removal) are given for each studied step. The paper also discusses the economic advantage of separating the REE rather than producing a mixed REO product to be sold to a refinery for REE separation. A mini-pilot plant version of the process is currently planned.

By A F. Kravic

Carbonyl nickel powders of irregular particle shape and low a11parent density are used extensively in the production of porous nickel electrodes for nickel-cadmium storage batteries and hydrogen-oxygen fuel cells employing alkaline electrolytes. Such porous nickel matrices are at-tractive for these intended applications as they are relatively inexpensive, are corrosion resistant, have good electrical conductivity, can be welded to form electrical contacts, have a long life (as demonstrated in alkaline storage batteries), and are rugged and vibration and shock resistant. This paper describes a feasibility study concerning the production of porous multi-layer nickel electrodes by the pressing and sintering of stacked layers of green-powder rolled nickel sheet. Background H AUSNER (1) conveniently listed nine different powder compaction processes used for forming metal powders into useful shapes. These are shown in Table I. There are additional powder metallurgy processes; however, most of these are combinations of two or more processes listed in the Table. A study of the literature revealed that every powder compacting process, with the exception of isostatic pressing and explosive forming, has been evaluated or is being used for the manufacture of porous metal electrodes.

Jan 1, 1965

By F. Shigeyoshi

The development of pelletizing during the last ten years has continued, however, self-fluxing pellets have not been regularly and commercially produced for use in blast furnaces, except as Kobe Steel, Ltd., Japan. This paper tells about unique developments for self-fluxing pellets, and their effects when used in Kobe Steel's No. 3 blast furnace at the Nadahama Works (inner volume 1845 Nm3, hearth diameter 9.5 m)., Several phases of the pelletizing process are discussed individually, and also their relation to performance in blast furnace operation. Special emphasis is placed on proper preparation of the limestone added to the raw materials, and indurating at optimum conditions. Means of improving pellet quality by correct control of size distribution of the raw materials used in pelletizing, and indurating temperatures, are also discussed. As basicity (CaO/SiO2) of pellets increased 0. 1, coke consumption decreased 3. 8 to 4. 2 kg per ton of hot metal, when using 70% pellets in the iron burden.

Jan 1, 1969

By T. S. Krishnan

Among the established permanent magnets, SmCo5 magnet occupies the foremost position as it offers a unique combination of high energy product, coercivity and curie temperature. The SmCo5 magnets are thus extensively used for high field applications. These are also best suited for use in environments where high demagnetising field and high temperature are operative. Also, for applications where high performance and miniaturisation are the over-riding considerations, the choice again falls on SmCo 5 magnets. The main deterrent to the widespread use of SmCo5 magnet is its high cost. Both samarium and cobalt metals are high priced, and the magnets prepared from their directly melted alloy are thus naturally very expensive. An alternate process involving calcium reduction of their oxide intermediates has, therefore, been studied and the alloy prepared by this process has been evaluated and found satisfactory for magnet production. The process essentially involves compaction of the charge mix containing samarium oxide, cobalt oxide (or metal) and calcium metal and' reduction of the charge compact at 1000-1300°C in hydrogen atmosphere, followed by water and acid leaching, drying and classification. The calcium reduction process offers three distinct advantages over the conventional melting processes: (i) The oxide intermediates are relatively cheaper and do not pose any handling problems. (ii) The operation temperatures are comparatively lower and hence precise composition control is possible as samarium losses due to volatilisation

Jan 1, 1989

By B. C. Blake

IN general, billet-type or long slender ingots are used when it is desired to produce directly from the ingot in one conversion a product of medium or small cross-sectional area. They are designed to eliminate the blooming and billet-mill stages of the usual procedure. As used at Connors, they constitute a means of keeping a continuous rolling mill busy in the production of high-quality small rods, small angles, hoop stock, baling ties and concrete reinforcing rods without the need for a blooming or billet mill. They represent sound steel with the best surface that is commercially practical to use in the rolling of small continuous mill products.

Jan 1, 1947

By Mehmet Bugdayci, Onuralp Yücel, Yeliz Demiray Cucurachi, Ahmet Turan

The production of strontium (Sr) metal from its oxide via an aluminothermic process under 1–5 mbar pressure was examined in this study. SrO of 99%purity by weight was used in the experiments. The effects of stoichiometry and the duration of the process on the efficiency ratio of the metallic strontium were examined. The effects of functional additives (BaO, CaO, CaC2) were also examined. Characterization was carried out using X-ray diffraction spectrometry (XRD), atomic absorption spectrometry (AAS) and flame photometry techniques. The highest Sr efficiency ratio obtained was 96.89% in the experiment conducted at 1250 °C with 300% Al stoichiometry and 300% BaO stoichiometry.

Aug 7, 2020

By I. A. Ibrahim, A. K. Ismail, A. A. I. Afifi

"Synthetic rutile for paints industry is conventionally produced by a combined smelting and leaching process. Smelting process is an energy intensive step and represents economic burden in view of the increasing energy costs. Egyptian ilmenite ore containing 40% TiO2 and 38% total Fe was thus directly leached with sulphuric acid to produce eventually synthetic rutile. The process-involves digestion of the ore with sulphuric acid whereby both TiO2 and Fe are dissolved. The solution was then treated with iron powder to convert Fe3+ to Fe2+ to avoid co-precipitation of iron during the hydrolysis step. After solid/liquid separation and clarification, Fe was crystallized as ferrous sulphate hydrate by chilling. The titanium pregnant liquor was concentrated by evaporation and then hydrolyzed to precipitate hydrated titanium dioxide which was then calcined to produce synthetic rutile containing 98.6 TiO2 and 0.58% Fe2O 3. The optimum conditions of all the processing stages were determined.IntroductionSynthetic rutile for paints, welding rods and other industries could be produced from ilmenite ore by sulfuric acid leaching process. This process is a batch process and nearly 80% of all TiO2 produced in the world is made by this process [1]. Figure l shows simple block flowsheet of the process. The process involves the following stages.Digestion: In this stage, ilmenite ore is treated with concentrated sulfuric acid where both iron and titanium are converted to their respective sulfates according to the following equations:"

Jan 1, 2000

By Lee W. Saperstien

At the heart of the mining process are a number of basic and fundamental tasks whose regular and repeated performance constitute the mining cycle. As will be discussed presently, these tasks are the basic components of the mining system. Section 9, Production Operations, provides the mine designer and engineer with an understanding of these tasks and with sufficient design principles to allow this person to create an efficient mine system. This section is meant to be an introduction and adjunct to subsequent sections that describe specific mining systems. However, sufficient design information is included here for the independent design of mine systems that may not be described elsewhere or for subsequent verification of existing designs. For the purposes of this section, mining subsumes excavation; thus this material applies to any excavation process. Accordingly, this section is written in general enough terms to include both surface and underground mining. It may be used also for civil engineering excavations that often involve the same steps. Obviously, the actual procedures undertaken in any specific mining system will appear to be very different from those taken in any other system. This is certainly true when comparing surface with underground methods. Yet the fundamental principles are often the same. This segment is written to explicate the basics. Wherever appropriate, the section will suggest the differences between the application process to surface or to underground mining.

Jan 1, 2008

By P. Mageau-Béland, È. -M. Proulx, M. -C. Patoine

Over the past six decades, Hatch has helped several industrial processing facilities in debottlenecking their operations, allowing them to produce more with the same equipment, to reduce and even eliminate expenditure investments, or to increase the return value of their expansion projects. These successes result from the application of a proven analysis approach that can be applied to any industrial facility. A five-stage methodology is discussed and demonstrated with a specific example of a nickel concentrator optimization study. The first stage is an observation stage which allows to meet key actors at the plant, develop mutual understanding of problems, understand operating philosophy, and efficiently collect large amounts of operating and maintenance data. Following is a data compilation stage during which data is analyzed over a representative time period to identify parameters that significantly affect the production, to evaluate data reliability and to define the focus of the upcoming analysis. Quantitative metrics are defined using statistical tools such as pivot tables, histograms, percentiles and MDR (Maximum demonstrated production rate during 3 to 7 consecutive days). Then, the production bottlenecks are identified by a thorough analysis of the facility’s control philosophy, process throughput, equipment capacity, availability, downtime causes, and interaction between components of each circuit. Understanding the maintenance practices and frequency of planned shutdown is also critical to this analysis. Opportunities for improvement are identified in collaboration with the operation, maintenance and engineering teams, ranked as a function of their impact on the bottlenecks and prioritized. The final and most critical stage involves engagement with the plant stakeholders, namely the operators and the maintenance staff members, to present the results of the analysis and obtain their participation in the implementation of the solutions. The benefits of the case study translated into: 10% production capacity gain, improved maintenance planning and avoidance of several million dollars of investment.

Jan 1, 2016

By D. D. Lei, H. Sevim

Long-term production planning in open-pit mines requires the determination of cut-off grade, mining and milling production rates, a mining sequence, mine life and ultimate pit limits. Since these variables interact in a circular fashion, a genuine solution to the problem necessitates their simultaneous determination. A methodology with this capability is described. This comprises a group of heuristic algorithms and an unconventional dynamic programming algorithm. The method is demonstrated using data for a gold deposit in the western USA

Jul 1, 1996

By Allen D. Gorrison

EFFORT to develop fundamental quantitative information and improved technique in the production of petroleum has long been faced with difficulties of a particularly evasive nature, owing to a combination of circumstances. In the first place, petroleum comes from far below the ground, out of sight, so that information derived from indirect observations must be extrapolated to reservoir conditions. If one does not force the analogy too far, the petroleum engineer may be said to be somewhat in the position of the astronomer. The actual phenomena which he wishes to observe in detail appear at a place so deep in the earth?s crust that personal observations and direct experiments are impossible.

Jan 1, 1942

By P. E. Fitzgerald

SOME readjustments in the research programs of most of the oil companics and petroleum engineering schools have been made necessary by the war. The most obvious change has been the conversion from production engineering to problems more closely related to the nation's was effort. Many laboratories now devote much of their time to studies on products to be derived from petroleum. such as synthetic rubber, toluene, and substitutes for critical materials. Others are working to improve motor fuels including high-octane gasoline and the special lubricants required by the wide geographical range of the present conflict. Of great importance is the experience of the geophysicists, who are now devoting a great percentage of their time on instrument research and production or special apparatus required by the armed forces.

Jan 1, 1943

By Qing Wang, Xiaochuan Xu, Jianping Liu, Xiaowei Gu, Qingyu Zhu

"The ecological costs related to the various optimized production schemes were calculated based on the designed ultimate pit. Moreover, the influence of the ecological costs on the selection of production schemes was discussed. In one designed pit, a series of geologically optimum pushbacks with sufficiently small increment were produced using the floating cone method founded on the principle of the highest metal content. Then all the pushbacks were reordered by the dynamic network diagram. The production scheme with the maximum NPV route was considered as the optimum one. The ecological impacts produced by mining were quantified and the ecological cost calculation models, which contain the direct eco-value loss, the indirect eco-value loss, the eco-restoration cost and the carbon emission cost were proposed. In one big open pit mine case, various production schemes were optimized and the one with maximum NPV was selected without taking into account the eco-costs. The scheme with the maximum comprehensive profit was obtained by calculating the eco-cost of each scheme. The results showed that the best scheme considered with the eco-cost was not the scheme with the maximum NPV. Therefore, the eco-cost presents the effect on the selection of the best production scheme.Introduction Optimizing production scheme is to determine the mining quantities of ore and rock, the pushing position of stope each year, and maximize the NPV of mine. In the theory, production scheming optimization has gone through trial and error (Pana and Carlson 1966), linear programming method (Johnson 1968), mixed integer programming (Gershon 1983), integer mapping (Kim and Cai 1990), dynamic programming et al (Gu et al 2014). In recent years, the study on production scheduling optimization has been focused on two aspects. On the one hand, the study is to solve the investment risk caused by the uncertainties of economic and geological environment (Ramazan and Dimitrakopoulos 2013, Marcotte and Caron 2010, Lamghari and Dimitrakopoulos 2012, Godoy and Dimitrakopoulos 2004, Benndorf and Shishvan 2014). On the other hand, the emphasis of the study was on reducing the problems for the optimization algorithm, to make it more efficient and practical (Cullenbine et al 2011, Shishvan and Sattarvand 2015, Askari-Nasab et al 2011, Nasab et al 2010). However, different production schemes cause different damage of mine land and pollutant emission, thus triggering environment problem. With the improvement of people’s consciousness of environment protection, the environmental issue of mining has been attracting more and more attention."

Jan 1, 2017

By T GRAHAM-TAYLOR

A trend towards mining more complex and economically marginal orebodies, often combined with increasingly tight product specifications, increases the number of variables which need to be considered in production scheduling. Linear programming incorporating integer constraints can be used to create production schedules which are practical as well as mathematically optimum. Factors which can be taken into account include variability in product stockpiles, targets for head or product grades, production of different material types, production from different areas, production targets for loaders, and dependencies between mining blocks. For each schedule an appropriate objective for optimisation must be chosen. Examples of objectives are: to minimise or maximise grade variation; to minimise waste movement; and to minimise movement by front end loaders. A staged approach to the implementation of computer systems based on linear programming optimisation is Proposed.

Jan 1, 1992

By AIME AIME

THE fall meeting of the Petroleum Division, held at Tulsa, Okla., on Oct. 11 to 14, devoted two days to technical sessions and two to field excursions. A representative attendance of 250 to 300 engineers and operating officials engaged in oil production marked the sessions and paid close attention throughout to a notable series of highly technical papers. Restricted as the program was to consideration of production problems only, the time proved too short for discussion or even the presentation of the 20 papers submitted. Much informing and pertinent discussion none the less took place, and the sentiment was general to the effect that the meeting was one of the best ever held by the Division. The meetings were held in the auditorium of the Municipal building and local arrangements were well looked after by the Mid-Continent Section of the Institute and the Oil and Gas Association. The combination of the three organizations served to bring together engineers and operators most usefully. F. Julius Fohs, chairman of the Division, presided at the sessions on Monday. Tuesday morning John M. Lovejoy of the local section took over this responsibility in the absence of T. E. Swigart, who was detained in California. The afternoon session was presided over by A. G. Heggam of the Oil and Gas Association and the Tuesday evening banquet by W. C. Franklin of the same organization.

Jan 1, 1926

By C. B. Scotty, E. F. Egan

INTRODUCTION The neutron-garnma log has been used for stratigraphic correlation by the oil industry for a number of years. In the past few years, the quantitative application of the log to provide information with respect to porosity has received considerable attention. The basic concept of quantitative interpretation has been pointed out in the literature.1 It shall be the purpose of this paper to develop by empirical means a method whereby the relationship of porosity to neu. tron-gamma deflection may be predicted for various bore hole diameters. This relationship is applicable to the present commercially available neutron-gamma log run in open hole. Data available at present are insufficient to establish similar correlations for cased holes. Through the development of such a correlation, the importance of the various factors which influence the log become evident. NEUTRON-GAMMA CURVE The logging tool conisists of a source of neutrons and a means of detecting and measuring gamma rays, the detector being shielded from the direct emission from the source. The gamma rays reaching the detector have three sources of origin: (1) the natural gamma radiation emitted by the formations, (211 induced gamma radiation resulting from neutron bombardment. (3) gamma rays emitted by the source and scattered by the formation. It has been found that a neutron derived porosity correlation is best for shale-free formations. Under this condition the natural gamma ray radiation is quite low, and therefore, will be neglected in this work. The induced gamma ray radiation resulting from neutron bombardment is predominantly a function of the hydrogen atom concentration of the substance penetrated. Due to the geometry of the presently used system, the neutron-gamma curve indicates low radioactivity opposite high hydrogen concentration and high radioactivity opposite low hydrogen concentration (Figs. 1 and 2). Having a curve which measures hydrogen atom concentration, it follows that if the matrix of the formation penetrated consists only of atoms other than hydrogen, and if the fluid filling the pores is either oil or water, the curve should be an indication of porosity (both oil and water have practically the same number of hydrogen atoms per unit volume'). The above criteria for a porosity (Correlation are fulfilled in clean sandztones and limestones in which the pore volume is completely filled with liquids (oil or water), but not in formations containing either free gas or shale or both. Free gas. even under pressure, contains considerably less hydrogen per unit volume than oil and water; therefore, a variation in response on the curve would be expected. Camp- bell and Winter,' indicate that this difference in hydrogen concentration is sufficient to distinguish between sands containing water or oil and those containing dry gas. Shale is a mineral that contains hydrogen in its molecular structure in addition to the hydrogen which is present in the water of hydration. Thus, in formations containing variable amounts of shale, the hydrogen concentration indicated by the curve is not a direct indication of porosity. Bush and Mardock' have indicated that a correction may be made by use of the gamma ray curve to provide a porosity correlation. Since the induced gamma rays are predominaiitly a function of hydrogen concentration, it would be anticipated that the fluid filled bore hole would materially influence the logs. It has been pointed out that the neutron-gamma curve response decreases with increase in hydrogen concentration, therefore, the response due to the induced gamma ray component decreases with increase in fluid filled hore hole diameter. The scattered gamma ray component of the log increases with increase in bore hole diameter. Although there is an

Jan 1, 1952

By R. B. Basham, C. W. Macune

Very small anomalies in oil well temperatures are detected and measured by recording the difference in temperature existing between two thermally sensitive elements which are Spaced several feet apart on a small diameter carrier and lowered into the bore hole. The elements operate in a balanced electrical circuit, sending only a reference signal to the surface as long as normal gradient temperatures are encountered. When either element enters a temperature disturbance, the circuit is unbalanced and produces large recorder deflections for minute anomalies. The system is highly sensitive to small changes in thermal gradients caused by gas or fluid movements and to the boundaries between beds of different thermal conductivities. Typical logs show successful applications of the process to locating gas and water leaks in casing, gas entry. and gas-oil contact. INTRODUCTION Temperature measurements in oil wells have been made for many years in the search for additional sub-surface data. It has been generally agreed that many conditions in the bore hole cause temperature anomalies which, if located and measured, could yield useful information. But it has been recognized also that many of the irregularities, such as those produced by small water and gas leaks in casing, might be very small and therefore difficult to detect with certainty.' Although tem-perature measurements have been made which show anomalies of less than one degree deviation from normal gradient temperatures, the results are usually uncertain and unconvincing. The general practice, therefore. has been to apply temperature surveys only to well conditions known to produce appreciable disturbances, such as large gas movements and cement hydration. The recent demand for additional data has focused attention on the problem of making dependable temperature measurements in the many instances when anomalies are small but none the less significant. It was for the purpose of detecting these minute irregularities in bore hole temperature that the program described in the following text was undertaken. It is emphasized that this presentation is not offered as a complete study, for the process is still partially experimental. But it is believed that the results obtained thus far will be of interest to the industry and will indicate some of the system's potential usefulness. DIFFERENTIAL MEASUREMENT The chief value of differential measurement lies in the fact that a difference between two factors can be measured with a scale of values best suited to that difference, a scale that might be cumbersome or impractical if applied to the factors themselves. When it is known that all factors will be nearly equal in value, and therefore the differences consistently small, it is possible to select a scale which will permit very accurate measurement of the differences. This advantage is in contrast to the difficulty of measuring small increments of a single variable, where the increment must be measured by a large scale which is suitable for measuring the entire factor. Gradient temperatures are usually measured under this latter condition where temperature measuring apparatus must have a scale extending over the range of expected temperatures, say 50' to 25O°F, and it becomes almost impossible to detect small irregularities of less than one degree. The use of large strip chart recorders and divided multiple ranges tend to amplify the small anomaly and make it more pronounced. But the instability of instruments, both

Jan 1, 1952

By H. H. Reamer, B. H. Sage

The formation volume and the relative volume of the liquid Phase of mixtures of Condensate and gas from five different parts of a field in the Louisiana area have been established experimentally. These studies included gas-condensate ratios as high as 25.000 cu ft/bbl at pressures up to 5,000 psi. The gravities of the tank condensates were between 53.9° and 63.9° API. The compositions of the condensate and gas samples inves-ligated are presented in tabular form. The formation volume. the relative volume of the liquid phase. and the specific volume of the mixtures are available. A rough correlation of the formation volume as a function of pressure. temperature, and gas-condensate ratio has been presented. This correlation i-considered applicable only to the range of conditions covered in this investigation for systems of similar nature and com-position. INTRODUCTION Often a knowledge of the influence of temperature. Pres sure, and relative quantities of condensate and gas upon the volumetric behavior of fluid*. from a given field has been employed in estimating the Conditions existing in the reservoir. The early work of Beecher and Parkhurst' and the more rrcent Studies of the Dominguez' and San Joaqnin Valley Field;: are examples of experimental studies of this character. Correlation of the volumetric behavior of naturally occurring hydrocarbon mixtures has Proved To be feasible' . at low gas-conden-sate ratios-; for fluids*. from a single geographic area. Progres 5 is being made in the Prediction of the volumetric behavior of distillate systems at high gas-condensate ratios and pressure.. However. the estimation of the retrograde". ' dew-point pressure still remains uncertain and probably can best be established by experiment. For this reason it appears of interest to make available experimental information about the volumetric behavior of mixtures of condensate and gas from five different part.; of a single field. This material shows a rough similarity to data for mixtures of condensate and gas from San Joaqnin ' Valley Fields. In the present paper. 110 attempt has been made to coordinate the available information on tbe volumetric behavior of fluids from condensate fields. It appears hopeful that progress can be realized by the utilization of recently developed equa-tions of state.!' However. the primary problem in any such correlation is the proper identification of the components and constituents of naturally occuring systems. Additional experimental information may be required to permit the determination of the values of the constants of the equation of state for References given at end of paper. Manuscriptt received in the office of the Petroleum Branch June 11. 1951. *For present purposes low gas- condensate ratios will he considered as those below 3,000 cu ft/bbl, and the region of high gas-condensate ratio will be limited to compositions containing more than 5,000 cu ft of pas per bbl of condensate. Mixtures Containing between 3,000 and 5.000 CII ft OF gas per bbl will be considered of intermediate gas-condensate ratio.

Jan 1, 1952

By E. DeGolyer

The problem of good engineering practice and. of good conservation practice in oil production is that of keeping gas in solution. This can best be done by producing a field as a water-drive field. Some degree of water drive is believed to be present in most fields but in the past most fields have been produced too rapidly to allow water drive to be effective. Ultimate recovery should be So per cent greater for fields produced by water drive over that from gas-expansion fields. Wide spacing will permit fields of low-degree water drive to be produced effectively as water-drive fields. INTRODUCTION NEGLECTING all the complicated scientific and technical argument that leads to the conclusion, the solution of the problem of good production practice, of good engineering practice, and of good conservation practice in oil production is to keep gas in solution. This can best be done by producing fields at a rate low enough to make effective the water drive, which exists, it is generally believed, to a degree great enough to be made effective in more than 80 per cent of the fields of the United States. Oil is being so produced in the Ten Section field of California; the Hobbs field of New Mexico; the Yates, Hastings, Friendswood, Anahuac fields and the main sand of the Conroe pool, in Texas; the Magnolia pool in Arkansas, and doubtless in many other pools. The measures of success in the efforts to achieve the solution of the problem are the maintenance of bottom-hole pressure and the prevention of an increase in gas-oil ratio. Some decline from the original bottom-hole pressure and the production of some gas are essential. A pressure gradient from the reservoir to the well is necessary and at least as much gas must be produced as that in solution in a barrel of oil. Once the optimum pressure and the gas-oil ratio have been established, they should be maintained. How common is water drive in oil and gas pools? General opinion is that some degree of water drive is almost universal. Theoretically, this conclusion appears to be a sound one. According to our present understanding of the processes of sedimentation, we would expect to find all sands or sandstone charged with connate water unless it had been displaced by some other fluid, such as fresh water percolating into the beds at the outcrop, or oil and gas, or gas only, in reservoirs. The fact that the original pressure of the fluid system in most reservoirs is approximately that of the hydrostatic head of water for the corresponding depth indicates that the sands are charged with water, and common experience in drilling into the extensions of the porous zones beyond the reservoir is to find them watercharged. The very fact that oil and gas pools have substantial pressures in their original undisturbed state indicates either that a reservoir is a rigid, closed system, a con-

Jan 1, 1941

"Cash flow modelling during project evaluation is enhanced when probabilistic methods are applied to the inputs. One of the important inputs is the quarterly production profile. Typically, the steady-state production profile provided to project evaluation practitioners is deterministic, with each quarter the same as every other quarter. This is unrealistic as actual production profiles from existing mines exhibit a range or quarter-on-quarter variance. Monte Carlo stochastic simulation of the production profile can be used to provide a range of possible outcomes, but how are these ranges selected? This paper describes the use of quarterly production variance from a large database of mines worldwide as a benchmark to inform the appropriate selection of ranges. The coefficient of variation is used to rank the production from mines, with quartile analysis applied to indicate industry best, median and worst variation. Due diligence of existing mines and evaluation of future production performance can be quantitatively assessed using this approach. Examples of the effect on value are provided.CITATION:Stewart, C A, 2016. Production variance benchmarks and their use in project evaluation and due diligence, in Proceedings Project Evaluation 2016, pp 201–213 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 8, 2016