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By Michael F. Barber

"Highway slopes are intended to remain stable over a long period of time. Unexpected slope failures can be costly in terms of human life and property damage or loss. Cleanup of failures can prove to beextremely expensive."

Jan 1, 1999

By Siegfried Zell

INTRODUCTION Denmark is a small country with a population of about 5.5 million in the north of Europe. A substantial part of Denmark consists of islands, and the Danes have been familiar with ferry links between their islands for ages. However, their wish for fixed links has resulted in the con¬struction of bridges between most of Denmark's islands in this century. (Fig. 1) A fixed link across the Store Belt or Great Belt, Denmark's most important waterway bet¬ween the island of Fyn and main island of Sjaelland, on which the capital of Copenhagen is situated, has remained to be constructed hitherto. In 1987, the Danish government decided that the Great Belt should be crossed by a fixed link, incorporating a two-track railway line and four-lane motorway. The Storebaelt Forbindelsen AS, a joint stock company in the sole ownership of the Dan¬ish state, has been established for the purpose of planning, constructing and operating the Great Belt Link. The company will refinance the construction project by charging toll to the motorway users and fees to the state railway. Here it should be mentioned that Denmark and Sweden are about to jointly realize the fixed rail and road link across the Øresund or The Sound between Denmark and Sweden on the basis of the realization model of the Great Belt link. At present, the project is at the com¬petitive tendering or contract awarding stage. In the near future, also the third fixed link of comparable extent, that is the crossing of the Fehmarn Belt between Denmark and Germany, will go into the decisive projecting stage prob¬ably in conformity with the aforementioned pattern. Going back to the Great Belt, it should be noted that this fixed link involves three exten¬sive sections and has been under construction since December 1988.

Jan 1, 1995

By M. Schafer

The 20 foot diameter cast-in-place tunnel lining for Phase 3 of the Mill Creek Tunnel (MCT-3) has been completed. This paper will summarize aspects of liner design and address the construction approach in placing the liner in areas of tunnel that experienced crown overbreak. Tunnel lining production rates, installation procedures and form buoyancies experienced during concrete placement will also be presented.

Jan 1, 2008

By M. Schafer

The 6-m- (20-ft-) diameter cast-in-place tunnel lining for Phase 3 of the Mill Creek Tunnel (MCT3) has been completed. This article summarizes aspects of liner design and ad-dresses the construction approach in placing the liner in areas of tunnel that experienced crown overbreak. Tunnel lining production rates, installation procedures and form buoyancies experienced during concrete placement will also be presented. The Mill Creek Phase 3 tunnel (MCT-3) is expected to be completed this year. It is one of the largest tunneling projects undertaken by the Northeast Ohio Regional Sewer District (NEORSD) to date. The tunnel horizon is situated within the Devonian Chagrin Shale rock formation at an average depth of 85 m (280 ft). The tunnel was excavated using a two-pass method. A full face, fully shielded, Robbins 7.2-m- (23.8-ft-) diameter tunnel boring machine (TBM) was used to excavate approximately 4,500 m (15,000 ft) of tunnel and facilitate installation of initial supports (first pass). The final lining (second pass) consists of 305-mm- (12-in.-) thick cast-in-place reinforced concrete and integral low flow channel. Seven shafts were constructed on the project. The excavation of the tunnel commenced at Shaft 14 and proceeded down grade to Shaft 9, the terminus shaft. Because of the presence of overbreak in the tunnel crown, measures were required to support the form and counteract the effects of buoyancy during concrete placement.

Jan 1, 2008

By Kazem Oraee

Implementing stable final pit walls in open pit mines during the open pit design phase and mine exploitation has become one of the most important concerns of mining engineers in recent years. Failure of mine walls can potentially cause loss of life, roads blocks, and damage to mining machinery, temporarily or permanently halt production at the face and in the worst case scenario, close the mine. Thus, the role of creating stable mine walls is crucial to safety and general operations of mines and any effort to optimize this process has great economic value for mine operators. This paper aims to illustrate the technical aspects of use of the successful presplit blasting method in metal open pit mines. It also shows that using this approach not only increases safety in mines through wall stabilization, but also will boost economic profits by savings in stripping ratio. In this regard, appropriate practical concepts for designing the drilling and blasting patterns and the role of selecting the correct drilling rigs are elaborated in detail through conducting a case study in Chador Malu iron ore mine in Iran.

Aug 1, 2013

"In the first half of 1990, Cambior earned $1104 million, or $0.37 per share, on revenues of$66.4 million. The company's strong cash position, attained late in 1989 and in the beginning of1990 through the exercise of warrants, put working capital at $83.8 million as of June 30, 1990. Long-term debt was reduced by over $10 million during the weak gold market, leaving the company with a debt to equity ratio of only 0.03. Production for the six first months of 1990 was 107 720 oz. Au, an increaseof24% over the corresponding period in 1989.Financial Profile/Results and Corporate Financial StrategiesTotal revenue for the 1989 fiscal year was $116,883,000 compared to $109,848,000 for 1988. The 1989 results achieved despite a lower average gold price, resulted from a higher level of commercial gold production and a 115% increase in investment income over 1988. Investment income rose to $3,568,000 in 1989 due to higher levels of cash assets.Cambior's mine operating costs increased 19% to $68,561,000 in 1989 from $57,472,000 in 1988. This increase resulted from rising operating costs at the Doyon Mine ($250/oz to $274/oz) due to the shift from open pit to underground operations, as well as from the start -up of three new mines with relatively higher costs. These costs have reached a stable level that should be maintained for the next few years.In 1989, net exploration expenses were $6,838,000, down 31070 from 1988, partially due to the Canadian tax reforms introduced since 1987. Depreciation and depletion grew by $1,432,000 in 1989, reflecting a higher volume of commercial production from the Pierre Beauchemin, Lucien C. Beliveau and Chimo mines.Net earnings for 1989 amounted to $17,661,000 or $0.73 per share compared to $17,438,000 or $0.74 per share in 1988.Cambior has an exceptionally liquid and strong balance sheet. As at December 31, 1989, net working capital stood at $85.6 million, with a total assets base of $338.6 million. With a long-term debt (including gold loans) of $21.5 million and shareholders' equity of $277.2 million, Cambior has a debt to equity ratio of 8%. All but about $100,000 of long-term debt is in the form of gold loans.The total market value for Cambior's stock as at September 10, 1990, stands at $420million, based on recent stock market prices. Cambior's stock and warrants are traded on the Montreal and Toronto Stock Exchange."

Jan 1, 1990

By K. Böde

Hochtief AG Germany has developed a comprehensive management and information system for the construction industry named Aristoteles. This system is an efficient supporting tool to manage a variety of construction sites as well as operating business units with required economic targets. As such, Aristoteles offers wide-ranging control of complex economic processes in construction in a consistent manner. In this paper the process oriented functions of the system will be described with special emphasis on finance accounting and cost control. The basic elements in this respect are tender estimation, creation of initial project budgets and running budgets, regular determination of work done and result forecast to the end of the project. Further, cost accounting, monthly reporting, and all balance-related postings are included. On the basis of the extensive reporting (targeted/actual cost comparison, cost manager, project report, actual/targeted hours worked comparison, overhead cost report, amendment report or project (result) lists of all projects realized by one business unit), the responsible managers can make justified project evaluations, project controls and variance analyses during the project period and derive appropriate management measures. Thus, Aristoteles includes all substantial elements for the risk management of the operational business. In big construction joint-stock companies it is of crucial importance to satisfy the information requirements of the investors. In this respect the system provides a transparent presentation of the financial, investment and profitability situation of the company. In the international construction industry the balancing rules according to IAS (International Accounting Standards) have already been used to a larger extent. In accordance with these rules the partial profits of the work during execution can be shown as realized even before completion of a long-term contract. The validity of Aristoteles will be outlined briefly. Major advantages using the system are highly enhanced accuracy of project controlling, systematic overhead allocation to projects, change of attitude of the project personnel due to increased cost consciousness and improved flow of information within the company.

Jan 1, 2003

By Daniel T. Brian, O&apos

Exploration targets and results in the mining industry are commonly summarized in terms of tonnage and grade. Business appraisals require, as additional information, the expected profit or loss implied by the physical summary. The early incorporation of knowledge gained through financial analysis computations can provide a means for economically resolving many common exploration and development problems. Examples of such applications from the activities of exploration planning, reconnaissance, land acquisition, and development planning are presented in this paper.

Jan 1, 1969

"This paper challenges the traditional notion that mine planners need to plan production so as to incur the lowest mining cost. For a given mine configuration, a mine that increases its mining rate will incur increased mining costs. In an environment in which operations are fixated on cost reduction, a proposal that increases costs will not be readily accepted. Such a proposal requires financial justification—the increase in costs might be recuperated by the additional production. This paper evaluates the net present value (NPV) across a range of copper prices for two underground orebodies located at different depths, using a production rate of 300 kt per quarter and a scenario that introduces additional equipment and costs for 450 kt per quarter. The evaluation was based on the changes of NPV for the orebody located at a shallow depth compared with the orebody at a greater depth. Discrete event simulation combined with mixed integer programming was used for analysis. Unlike traditional sensitivity analysis, this study re-optimizes the mine plan for each commodity price at each production rate. The results show that, for the low mining rate at the final copper price, an NPV of A$1530.64 million is achieved, whereas an NPV of A$1537.59 million is achieved at a higher mining rate. Even though pushing mining rates beyond traditional limits may increase mining costs, this option may be beneficial at certain commodity prices, particularly when prices are elevated. IntroductionA traditional notion among mine planners is that mining rates should be planned in such a way as to reduce production costs. This concept generally relates to the mining rate that results in the highest machine utilization for the selected equipment. Although an existing mine may consider increasing its mining rate by adding equipment to a given mine configuration, this typically increases mining costs. In an environment in which operations are fixated on cost reduction, a proposal to increase costs may be very difficult to argue for. The value of the mine plan is well recognized as varying with the mining rate for a given orebody (Smith, 1997)"

Jan 1, 2017

By M. Grenon

OBJECTIVE ?To link slope stability and financial assessment algorithms into a commercially available mine design software packages to provide integrated global pit optimization.

May 1, 2013

By A. H. C. A. Zimmerman

WE have just heard what must be regarded as a thoughtful, constructive and somewhat painful analysis of the financial function of our industry. While thinking about this, it is interesting to reflect on the conditions which have stunted the growth of the financial side of our affairs. Mining must be regarded as a wealthy business. •while immeasurable grub takes and development budgets have been lost, there can be little argument that a productive ore-body nearly always produces the type of wealth that breeds some extravagance. I recognize that this statement can be attacked from many sides, but an historical comparison with a commercial enterprise involving similar investment will demonstrate what I mean. However, these old times are be-ginning to disappear for a variety of reasons. High amongst these are: ( l) Increased costs of exploration. (2) Remoteness of many new finds. (3) Fixed or declining metal prices (particularly when expressed in constant dollars). ( 4) Constant demands for higher wages.

Jan 1, 1962

A variety of environmental financial assurance instruments are in use across the globe. This paper reviews some of the more common forms currently used in New Zealand, Canada, USA and Australia. In order to be effective, the form of assurance instrument selected needs to be aligned with a countryÆs specific environmental objectives, geography and political climates and also allow for a healthy investment climate. Industry and Government both have a strong interest in ensuring financial assurance criteria meet these objectives.   Recently Golder Associates have been involved in financial assurance assessments for various mining and quarrying companies across the South Island. Multiple stakeholders and regulatory agencies can make the setting of effective and fair financial assurance criteria a complex exercise for both regulatory agencies and industry.  The author relates experience gained in assessing financial assurance under current New Zealand legislation (RMA, 1991), effectively dealing with issues such as ôdouble bondingö and overviews potential approaches to dealing with transitional issues for historic and existing operating mine sites.

Jan 1, 2006

By C. M. Jones

Cyprus Sierrita Corp. has developed a training program that has led to several significant improvements in safety performance and productivity. Truck productivity has increased 6% as measured by truck cycle times. Increased skill levels and awareness on the part of the mine's operators are due to the new training effort. Costs associated with productivity training have been about $185,300. This includes program development and execution costs, as well as lost productivity during the training itself. These costs are offset by $1.9 million in savings attributable to the increased skill levels of technicians due to the training effort. Cyprus Sierrita is a subsidiary of Cyprus Amax of Englewood, CO. The company operates a copper and molybdenum mining and processing facility south of Tucson, AZ, near the town of Green Valley. The Cyprus Sierrita operation produces about 109 kt/a (240 million lbs/ year) of copper, 11.3 kt/a (25 million lbs/year) of molybdenum, 31.1 t/a (1 million oz/year) of silver and 1.8 t/a (4,000 lbs/year) of rhenium. The opera¬tion employs 770 people at the site. About 200 of these employees work in the mine operations. Mining at Sierrita uses standard open-pit techniques. Crews of 43 people rotate on 12-hour shifts. Hourly technicians are nonunion and do not use rigid job classifications to define pay. Rather, the system is designed to pay employees for what they are able to do. Administering this effort requires that training opportunities are provided to those people who desire them. Successful training opportunities al¬low people to gain skills. The more skills an employee can demonstrate, the higher his or her "tech level." A technician's pay is commensurate with his or her tech level. Much of Sierrita's training in past years concentrated on building basic

Jan 1, 1998

By C. M. Jones

The training program developed at Sierrita over the last twelve months has led to several significant improvements in both safety performance and productivity. Our most easily quantified results have been in truck productivity, where we have also experienced a 6% decrease in truck cycle times. We feel this is due to increased skill levels and awareness on the part of our operators due to our new training effort. The cycle time improvement has resulted in an increase in Truck productivity of 6%. Costs associated with productivity training have been $160,300. This includes program development and execution costs, as well as lost productivity during the training itself. These costs are offset by $1,400,000 in savings directly attributable to the increased skill levels of our technicians due to our training effort. As such, this represents a solid, high return investment at Sierrita.

Jan 1, 1998

By John L. Halls

INTRODUCTION In this section, it is assumed that the reader is an engineer with sufficient training in underground mining work, preferably with budgetary control, to understand the mining methods outlined in other sections of this handbook. The mining-method descriptions are not repeated herein; only sufficient information is provided to enable the reader to comprehend the development of the costs presented. All costs are in 1977 US dollars, except where explicitly stated otherwise. CAPITAL INVESTMENT The capital investment in the underground mining portion of any mining property includes the following: 1) The development of original access involving adits, shafts, declines, etc. It includes the necessary equipment for transporting men, materials, and rock. 2) The purchase of mine equipment including loaders, underground haulage equipment, fans, pumps, electrical distribution, surface facilities associated with the underground mine, etc. 3) Sufficient preproduction mine development to assure steadily increasing production after startup. De- pending upon the mining method used, the preproduction development should provide a supply of three months to one year of ore that is developed and is ready to be stoped. Underground development also includes excavations other than shaft stations, loading pockets, sumps, etc., which usually are associated with the means of access and are excavated by the contractor. These excavations could include a crusher cavern, an ore- storage pocket, and underground workshops that may or may not be included by the shaft-sinking contractor. Portions of these could be delayed until after production begins, but it is preferable to complete them during the development phase, so there is no interference with the production buildup. 4) The staff and labor costs for all phases from inception through final production. 5) The provision of mine-surface equipment and facilities strictly applicable to the underground portion of the operation. The required facilities include a changehouse with a lamp room, a first-aid station, compressors, an electrical substation, workshops, a ware- house, water pipelines to the concentrator, water storage tanks, explosive storage, etc. A concrete-batch plant, a sand-fill plant, and boilers for heating may be required. 6) Other direct and indirect costs. 7) Engineering, design, and procurement costs. 8) Contingency allocations. 9) Contractor's fees, startup costs, and owner's costs. Original Access As part of a study for the US Bureau of Mines, Dravo Corp. conducted an extensive literature research survey covering underground operations in the United States between 1963 and 1973. Table 1 is compiled from the section of that study pertaining to the types of access to underground mines. Table 1 does not include distances attributable to the deepening of existing shafts, nor does it include shafts bored by raise drills or downhole machines that need existing underground workings for the disposal of the cuttings. During the period under review in the report ( 1963 through 1973). concrete-lined circular vertical shafts were the predominant means of providing the first access to a new underground mine; these shafts accounted for 80% of the original access in terms of the number of accesses completed, and 75% in terms of the total verti- cal linear distances. The inside diameters of the conventional circular shafts ranged from 3.7 to 7.0 m (12 to 23 ft). Most (72% ) of these conventional shafts were for production,

Jan 1, 1982

By D. Drymonitis, G. Gialoglou

"Placer gold mineralizations have been observed in the north-eastern parts of Greece. Some of them have been at first evaluated to be of special interest so, exploration campaigns have been designed and carried out. Among the other exploration techniques applied on the sites of interest, drilling was the one to give the detailed information and data for the evaluation of the deposits. Having collected the data from trenching and two consecutive drilling campaigns, they were processed geostatistically to estimate the ore reserves and therefore the economic interest of the deposits. The latter was done by using exploitability indices, which would give a rough idea whether the deposits were economically feasible. A small number of such deposits have been spotted in the area and have been explored and evaluated as above. The present paper deals with the most important of them, giving all the process followed and the results derived from the exploration carried out."

Jan 1, 2005

By P. J. Petit

Financial evaluation is necessary to investigate the viability of implementing and/or utilising new technology in mining projects. It establishes a techno-economic base for decision-making and justifies capital expenditure. This paper aims to present a monetary appraisal of the electric rock drilling system in a typical feasibility project, whose purpose is to increase the production rate. The in situ environment is a platinum orebody, and the stoping operations occur in UG2 reef. The results are a function of production requirements, technical parameters and financial outlay of the drills. The costs involved in implementing and operating electric rock drills are assessed to the current method of drilling, namely the compressed air operation. A comparison of the electric and pneumatic rock drills in terms of financial outlays for drilling and service requirements, peripheral equipping and training is discussed. Other factors that affect the business case are technical advantages, safety and risk management and the environmental objective of the company.

Jan 1, 2006

By Lynton B. Manssen

Introduction Net Present Value (NPV) techniques are becoming widely used in industry as a standard analytical tool in making capital budgeting decisions. However, NPV techniques are often misused in "common practice." A comparison was made between the use of NPV techniques in common practice and an Adjusted Net Present Value (ANPV) approach to capital budgeting in the financial analysis of a mining project. The comparison was made by applying both methods to a hypothetical copper project. The intent of the analysis is to provide an example for practitioners to follow when financially analyzing mining (or other) projects. To maintain the thrust of the analysis, the project has been evaluated as a stand alone, total project. No consideration has been made of the division of cash flows accruing to various owners over the life of the project. This omission will not affect the comparative nature of the analysis. This discussion assumes that the reader is familiar with present value as a concept and as a tool in capital budgeting. Finance theory has embraced NPV analysis as the correct way to evaluate capital budgeting alternatives. Many articles have been written expounding the virtues of NPV over other capital budgeting methods, such as Internal Rate of Return (IRR), Payback, Accounting Rate of Return, and others. It is not the purpose of this article to review all of the literature in this area; suffice it to say that in academic circles NPV concepts are accepted as the norm. A survey by Schall, Sundem, and Geijsbeck (1978) indicates that major US companies are finally following in academia's footsteps. Fifty-six percent of the companies responding to the survey use NPV techniques in their capital budgeting process. Further, some 86% of the companies surveyed use discounted cash flow methods (NPV or IRR) for capital budgeting decisions. This compares with a survey by Klammer (1972) that showed 57% of companies using both techniques, a considerable increase in seven years. With the increasing use of NPV techniques in industry, there are certain uses in common practice that can give misleading results. Five common errors in NPV analysis of large projects are: • No distinction is made between real and nominal cashflows. • The discount rate(s) used in the NPV analysis is not formally adjusted for risk. • There is no distinction of possible differences in the riskiness of different project cash flows; i.e., revenue vs. depreciation. • There is no recognition of the cash benefits to the project from interest tax shields (interest payments on the project's debt that are tax deductible). • There is no clear recognition of subsidies to the project from concessionary debt financing. No Distinction Between Real and Nominal Cash Flows Often, expected cash flows for a project are stated as a mixture of real (in constant dollars) and nominal (in current dollars) cash flows. For example, expected revenue cash flows may be stated in real terms and depreciation may be stated in nominal terms. If cash flows are added together to give an after tax cash flow, and this single cash stream is discounted, care must be taken to ensure that cash flows are consistently stated. All cash flows should either be stated in nominal terms or in real terms. In addition, the discount rate used must be stated in the same terms as the cash flows being discounted. Real cash flows must be discounted using real discount rates and nominal cash flows using nominal discount rates. Discount Rate Not Adjusted Numerous methods for obtaining discount rates are used in common practice. Schall and others

Jan 6, 1983

By Hugh Douglas

This paper discusses the financial health of the U.S. mining industry and its ability to meet the future raw material requirements of this country in the context of resource independence. The title of this paper begs several questions, and three will be raised here. The answers to them will form the basis for discussion. The three questions are: What does one mean by resource independence. How is the U.S. mining industry defined. How is financial health measured.

Jan 1, 1977

In constructing a financial model of a project significant effort is expended on capital and operating cost estimation, commodity price forecasts, and choice of discount rates while uncertainty in the primary input, the reserve, is often completely overlooked. The aim of this paper is to highlight the impact of uncertainty in the resource/reserve estimation process on the assessment of the financial performance of a project. Four qualitative processes have an impact on resource/reserve uncertainty. These stages are: 1.Ore definition 2.Geological interpretation 3.Resource estimation 4.Ore reserve estimation and mine planning. Each stage contains a number of tasks that may be considered as key performance activities (KPAs). Optimizing the manner in which these KPAs are completed can remove a great deal of uncertainty and error from the resource/reserve process. Examination of these KPAs within a company can also provide an insight to the quality of the information underlying the project. This will allow the company to identify any shortcomings in the data and to assess the resulting risks (Gilfillan, 1998). A hypothetical financial model based on a gold operation has been used to estimate the potential effect of resource/reserve uncertainty on revenue. Monte Carlo simulation has been employed to simulate a number of hypothetical scenarios: 1.a base case scenario which assumes no major errors or biases, but contains realistic margins for uncertainty that would exist in any project where work is being completed to the limit of best endeavours 2.a poor sampling scenario which assumes poor sampling practice and lack of understanding of sample preparation 3.a poor resource estimation scenario which assumes poor modelling and inappropriate choice of interpolation technique, and 4. a ?typical? scenario which represents a project where the majority of KPAs are not performed as best as they could be. The results show that realistic uncertainty ranges can generate changes in the estimate of potential revenue of plus or minus 30%.Therefore, it is important to allow for errors in these processes in any financial analysis or feasibility study. It is recommended that, when building a financial model, are view of relevant resource/reserve KPAs be carried out and appropriate ranges for uncertainty be applied to provide a range of potential outcomes. These outcomes can then be factored into the detailed cash flow analysis in order to ensure that technical uncertainty is built into financial decisions.

Jan 1, 1999