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By A. N. Clay

In recent times, there has been criticism of the minerals industry over the lack of quantifiable boundaries between inferred, indicated, and Measured resources. A recent initiative through the United Nations aims to try to converge the mineral resource classification systems. Since the oil and gas industry uses a probabilistic approach to defining reserve boundaries, it is appropriate to introduce a similar statistical methodology for minerals. The Venmyn Variance Tower has been developed based upon traditional statistics to utilize historical and ongoing information in order to quantify variance of geological and chemical parameters and the boundaries and logic for quantitative mineral resource classification. It is proposed that a less than 50% variance from the mean of all sample parameters is required to achieve the classification threshold to define an inferred Resource whereas between 20-10% is needed for an indicated Resource and less than 10% variance from the mean is needed to declare a Measured Resource. These limits are similar to those used by the oil and gas industry, and it is suggested that these thresholds be adopted as an industry standard to ensure consistent quantitative reporting. While this process is intended to use statistics of an orebody to provide quantifiable and defendable boundaries, it cannot be carried out unless the geology of the mineral deposit is understood and the borehole samples can be categorized into appropriate populations for which the statistics are valid. This means that competent geologists are always required to work with and understand the implications of the Variance Tower results. This paper is intended to form the basis of a series of publications that establish a process to take mineral projects along a quantifiable and logical development path. Hence, no specific field example of the practical application of this process is given here.

Jan 1, 2012

By N. Vayenas, G. Yuriy

"The combination of a predictive reliability assessment model and discrete-event simulation can be an effective methodology to study the impact of equipment failures on the capacity of production systems in mines. In our case, a predictive reliability assessment model using genetic algorithms is combined with a discrete-event simulation model to analyze mine equipment systems.Discrete-event simulation involves modelling of real-life systems based on variables and events that occur or change at distinct points in time. The Simul8 simulation software, by Visual Thinking, is used in this research. It is a two-dimensional (2D), discrete-event simulation/ animation software tool for creating realistic depictions of manufacturing and materials handling systems.The simulation model developed for the purpose of this research represents a typical two-level, sub-level stoping section of an underground mine in the Sudbury region in Ontario, Canada. This 2D model was created to assess the impact of equipment failures to a mine’s production throughput. In more detail, using mean time between failures (MTBF) data of scooptrams derived from a reliability assessment model based on genetic algorithms, LHD failures are incorporated into the simulation model. These failures cause production interruptions to the development cycle and consequently loss of hauling capacity.Another purpose of this research work is to demonstrate how low-cost simulation tools such as Simul8 can be successfully applied to model underground hard rock mining operations. The research discussed in this paper is carried out by the Laurentian University Mining Automation Laboratory (LUMAL)."

Jan 1, 2005

By Katherine Hynard, Colin Eustace

Development quarterly mine plans is generally time-consuming and requires consideration for many operational constraints and competing objectives. With lengthy turnaround times, there is often limited opportunity to adjust the quarterly plan details to account for differences between actual state of the mine operation at the time of execution and expected state at the time that the plan was developed. Actual mining task completion times can vary significantly from the expected task completion times, due to many factors. In the absence of revision to account for differences between the planned and actual state, resource allocations and mining sequences, embodied in the quarterly mine plan may no longer be the best approach at the time of execution to achieve an efficient mining operation. Simulation and optimisation tools can be used to support rapid refinements for development and execution of weekly mine plans. When initialized with an operations data feed to establish the actual state of the mine operation, optimisation models can be used to facilitate both automation and revision of the quarterly plan to produce a weekly or daily plan for execution. This approach can remove much of the manual burden of revision if the existing quarterly plan no longer represents the best approach to meeting production objectives. Following initialisation with mining actuals, simulation models can provide a representation of the range of likely mine operations outcomes. The models can be used to accelerate the planning process by providing visibility of future performance and identifying likely operational issues. They can also be used to test the robustness of the plan with respect to performance variability and response to disturbances. Following identification of issues, simulation models can also be used for evaluating mitigation measures, through automated testing of alternative plans. Integration of mine data feeds with simulation and optimisation tools enables automated optimal responses to variations between the quarterly mine plan and actuals to be tested prior to release of and execution plan and implementation. The use of simulation and optimisation in weekly mine planning will be discussed in this paper with reference to surface mining examples.

Jun 25, 2023

A simulation model of the load and haul process where the loader cycle has been subdivided into its individual components is used to consider the benefits derived from improved drill and blast methods. Field data from a Hunter Valley mine is u

Jan 1, 1998

By M. Deutsch, E. González, M. Williams

"There is uncertainty in ultimate pit limits due to geologic variation and unpredictable economic landscapes. In this work we show how this uncertainty affects the ultimate pit and how it can be analyzed to improve the mine planning process. A stochastic framework using geostatistical simulation and parametric analysis is used to model the effects of geologic and economic variation on ultimate pit limits and overall project economics. This analysis is made possible by a new, highly efficient pit optimization implementation which can be automated and set up to calculate ultimate pits for hundreds of different scenarios in a matter of hours. Quantifying ultimate pit uncertainty early in the mine planning process allows mining engineers to make informed decisions regarding infrastructure placement, and to mitigate the possibility of incurring substantial costs relocating critical mine facilities. INTRODUCTION The mining industry is increasingly concerned with the effects of risk and uncertainty. Uncertain prices, unpredictable global markets, and unknown foreign exchange rates can alter the economic viability of a mining project in substantial ways. This economic uncertainty is compounded by geologic uncertainty. The extent and quality of any given deposit cannot be fully measured and is not known before consequential decisions must be made. These two sources of uncertainty are responsible for the majority of deviation between what happens during operation and what was initially planned. Understanding and explicitly quantifying this uncertainty will lead to better decision making and allow mining engineers and investors to be aware of what may occur. It is unrealistic to believe that one model, estimated from sparse measurements, is enough to capture both geologic and economic uncertainty and allow for optimal decisions. The entire breadth of uncertainty should be considered, as both upside and downside risks have large impacts on the investment potential and operational efficiency of mining projects. The workflow presented here uses Monte Carlo simulation and parametric analysis together to explicitly analyze the breadth of geologic and economic uncertainty as it applies to ultimate pit calculation and long range mine planning."

Jan 1, 2015

By M. Deutsch, E. González, M. Williams

"Uncertainty exists in ultimate-pit limits due to geologic variation and unpredictable economic landscapes. In this work, we show how this uncertainty affects the ultimate pit and how it can be analyzed to improve the mine planning process. A stochastic framework using geostatistical simulation and parametric analysis was used to model the effects of geologic and economic variations on ultimate-pit limits and overall project economics. This analysis was made possible by a new pit optimization implementation that can be automated and set up to calculate ultimate pits for hundreds of different scenarios in a matter of hours. Quantifying ultimate-pit uncertainty early in the mine planning process allows mining engineers to make informed decisions regarding infrastructure placement and to mitigate the possibility of incurring substantial costs to relocate critical mine facilities. Resumen ¦ Existen dudas sobre los límites del pit final por causa de la variación geológica y lo impredecible de los paisajes económicos. En este trabajo les mostramos como esta incertidumbre afecta el pit final y como puede ser analizada para mejorar el proceso de planificación de la mina. Se usó un marco estocástico con simulación geoestadística de análisis paramétrico con el fin de poder hace la modelación de los efectos de las variaciones geológicas y económicas en los límites de pit finales y proyectos económicos en general. Este análisis fue posible gracias a una nueva implementación de optimización de pits que puede ser automatizada y configurada para calcular pits finales para cientos de escenarios diferentes en cuestión de horas. La cuantificación temprana de la falta de certeza en pits finales durante el proceso de planificación permite a los ingenieros de minas tomar decisiones informadas en lo que respecta a la ubicación de infraestructura y en la mitigación de posibles costos sustanciales por causa de la reubicación de instalaciones clave de la mina."

Jan 1, 2015

By Frank E. Chase, John L. Ellenberger, Christopher Mark

The nature of competition in the coal market tends to deplete the most favorable coal reserves first, and forces subsequent development of mines in more extreme ground conditions such as those associated with multiple-seam mining. In fact, 70% of the United States coal reserves are in multiple-seam situations. The National Institute for Occupational Safety and Health (NIOSH) is conducting research to develop mine design algorithms that will result in safer multiple seam mines. This paper presents an overview of multiple seam issues in the central Appalachian coalfields. To date, more than 50 case histories have been analyzed from 20 operating mines in Eastern KY, Western VA, and Southern WV. Each case history is classified according to the degree of multiple-seam interaction, ranging from no apparent interaction to severe interaction with direct impacts on mine safety and resource recovery. The case histories are also examined with regard to amount and geologic characteristics of interburden and overburden, and design stability factors. The sequence of mining has also been found to be critical when the lower seam is fully-extracted. This paper compares current case histories to traditional rules of thumb. In addition two situations were modeled using LaModel software. LaModel has been upgraded to import pillar grids and topographic data from AutoCAD files. The cases presented demonstrate vertical stress capabilities of LaModel.

By John Ellenberger

The nature of competition in the coal market tends to deplete the most favorable coal reserves first, and forces subsequent development of mines in more extreme ground conditions such as those associated with multiple-seam mining. In fact, 70% of the United States coal reserves are in multiple-seam situations. The National Institute for Occupational Safety and Health (NIOSH) is conducting research to develop mine design algorithms that will result in safer multiple seam mines. This paper presents an overview of multiple seam issues in the central Appalachian coalfields. To date, more than 50 case histories have been analyzed from 20 operating mines in Eastern KY, Western VA, and Southern WV. Each case history is classified according to the degree of multiple-seam interaction, ranging from no apparent interaction to severe interaction with direct impacts on mine safety and resource recovery. The case histories are also examined with regard to amount and geologic characteristics of interburden and overburden, and design stability factors. The sequence of mining has also been found to be critical when the lower seam is fully-extracted. This paper compares current case histories to traditional rules of thumb. In addition two situations were modeled using LaModel software. LaModel has been upgraded to import pillar grids and topographic data from AutoCAD files. The cases presented demonstrate vertical stress capabilities of LaModel.

Jan 1, 2003

By Jeff Mattern

"Slope performance monitoring, dependable operational practices and ongoing collection of geologic data in openpit slopes all provide valuable information for quantifying potential steepening of subsequent slopes. Mining at the Goldstrike openpit has been ongoing since the early 1980s, having its share of slope instabilities. In areas where slopes have remained stable, consideration has been made for potential slope steepening of final walls.While technology can be efficient, interesting for collecting needed data, slope design fundamentals based on that data can be applied to create much added value.With the proper available equipment, steepening of bench face angles via presplit blasting is not an uncommon method for steepening of interramp slope angles. As an alternative at Goldstrike, the commonly used Modified Ritchie Criteria for empirical catch bench width has been adjusted, resulting in quantified, rock-specific formulas for bench width and rock fall berm placement. The result is an inter-ramp slope angle increase of 2° on a 305- m (1,000-ft) high slope, without the necessary purchases and procedural changes that would be required for presplit drilling and blasting. The result has shown significant net benefits through reduction in mined waste tons and an increase in gold reserves.LocationThe Goldstrike openpit is located in the Great Basin, on the northern end of the Carlin Trend gold belt in northeastern Nevada (Fig. 1). The mine has produced more than 1.2 kt (43 million oz) of gold during the past 30 years."

Dec 1, 2018

By Gregory Witte

This paper will explore the technology behind and applications of smart motor control centers (MCCs) being used today in mineral processing facilities. The two technologies to be discussed are solid-state motor controllers that can be installed in MCCs and the complementary digital communication networks that can transmit operational parameters of the solid-state devices to the supervisory system. The toughness and reliability of solid-state technologies have led to a dramatic increase in their usage throughout the mining industry. Products such as solid-state motor protectors, controllers, and variable frequency drives have demonstrated greater flexibility and performance in a variety of applications than their electromechanical and mechanical counterparts. The three key trends apparent in the solid-state devices are: 1. A shift to smaller, smarter, more integrated devices, which allows a single solid-state device to serve the purpose of multiple electromechanical devices but in a much smaller form factor. 2. Distribution of control logic in motor control devices rather than conveyed through a hard wired connection to a central automation system. 3. Embedded network communication that allows supervisory systems to have an expanded view into critical loads and sensors. In applications, the use of smart actuators and sensors with integral local intelligence and communication allow a supervisory controller to send high level commands and let the smart device coordinate its own work The ability of smart field devices to return noncontrolled, nonpoled information opens a whole array of new capabilities for preventive maintenance and diagnostics and forms the basis for an effective motor management program. The smart motor control devices this paper will explore are the smart motor protectors (SMP), smart motor controllers (SMC), and variable frequency drives (VFD).

Jan 1, 2000

By E. Isokangas

A mine is essentially a series of operations, including drilling and blasting, crushing, milling, flotation, and leaching, that are interconnected and therefore interrelated, with the performance of one operation affecting the performance of another. Optimizing each stage separately without considering the whole system often causes potential economic benefits and energy savings to be missed. However, the PIO methodology is a thorough approach which considers these individual process activities within the context of the whole process. The basic principle is to optimize the process as a whole, rather than each process step in isolation from the others. Metso?s Process Technology and Innovation (PTI) group offers a global consulting service for the mining and construction industries. A significant amount of this consulting work involves process integration and optimization (PIO) studies. When conducting a PIO study, every aspect of the process is considered. In addition to drilling and blasting, transportation, handling and storage, crushing, screening, grinding, flotation, separation, and recovery, other aspects including equipment utilization and energy consumption and even greenhouse gas emissions are also included if necessary. In a PIO project, it is very important to understand what type of material is being processed at any point in time. That is, which domain or domains is the material part of? This is necessary in order to observe the effect of different ore sources (and the blending of sources) on concentrator performance. Linking the ore from the pit to the concentrator required the development of an ore tracking system. As a result, PTI developed a radio-frequency based material tracking system called SmartTag?. This system allows tracking of ore from its source through blasting, run-of-mine (ROM) pads, crushers, intermediate stockpiles, and finally into the concentrator. Using the SmartTag? system, definitive correlations can be made between the performance of the plant and the plant feed characteristics, including the domain from which the feed ore originated. Since its commercialization in 2007, SmartTag? has been used in the majority of PTI?s consulting projects and several permanent systems have been installed worldwide1. Successful applications of the SmartTag? system have encouraged development to allow the system to be used in a wider variety of plants, in particular plants with finer crushing and screening stages. This paper describes how the SmartTag? system is being utilized by PTI and the benefits being gained by its use in PIO projects, as well as presenting some case studies.

Jan 1, 2012

By M. Li, J. K. Thompson, A. S. Azman

Powerful mining systems typically generate high-level noise that can damage the hearing ability of miners. Engineering noise controls are the most desirable and effective control for overexposure to noise. However, the effects of these noise controls on the actual hearing status of workers are not easily measured. A tool that can provide guidance in assigning workers to jobs based on the noise levels to which they will be exposed is highly desirable. Therefore, the Pittsburgh Mining Research Division (PMRD) of the U.S. National Institute for Occupational Safety and Health (NIOSH) developed a tool to estimate in a systematic way the hearing loss due to occupational noise exposure and to evaluate the effectiveness of developed engineering controls. This computer program is based on the ISO 1999 standard and can be used to estimate the loss of hearing ability caused by occupational noise exposures. In this paper, the functionalities of this software are discussed and several case studies related to mining machinery are presented to demonstrate the functionalities of this software.

Jan 1, 2016

By F. Patisson

One of the major issues with multiparticle reactors is to handle their multiscale aspect. For modeling, it usually comes to coupling a reactor model (describing the phenomena at the macroscopic scale) with a so-called grain model (simulating the behavior of a single grain or a particle). An interesting approach proposed by H.Y. Sohn (1978) is to use the law of additive reaction times in order to calculate, approximately but analytically, the reaction rate of a particle in the reactor model. Its great advantage, compared to a numerical grain model, is to drastically reduce the computation time, particularly in the case of complex reactor models. This is the approach we retained for modeling the moving bed furnace, a counter-current gas-solid reactor used in the nuclear fuel-making route for producing uranium tetrafluoride from uranium trioxide. The numerical model we developed is 2-dimensional, steady-state and based on the finite volume method. It describes solid and gas flow, convective, conductive and radiative heat transfers, and six chemical reactions involved in the process. The law of additive reaction times is used to calculate analytically the rate of the three principal gas-solid reactions at every discrete point in the reactor. We have demonstrated the validity of this approach by comparing its results with those calculated from a numerical grain model. Also detailed in the paper are the main results of the moving bed furnace model itself and the possibilities of optimizing the process revealed by the calculations.

Jan 1, 2006

By Jason Ryan, Stephen Harria

Q.E.D. (QED) is a blast design and evaluation model that allows full three-dimensional design specification including the development of unique “live” terrains and an unlimited variety of complex charge configurations. QED’s analysis package allows the examination of likely outcomes resulting from changing various design variables in terms of vibration, fragmentation, rock-mass damage and muck-pile profile. Especially applicable to use cautious blasting applications, QED’s damage model uses vibration to estimate rock damage beyond excavation boundaries. This relates directly to operations such as Yucca Mountain Nuclear Waste Repository in Nevada, where damage beyond the excavation perimeter must be tightly controlled. The U.S. Department of Energy (DOE) h as b een studying a site at Yucca Mountain, NV to determine its suitability for long term storage of nuclear waste. The main mechanism of waste isolation will be the natural barrier of the host rock Total Systems Performance Assessment (ISPA) is used to model the excavation design and its behavior over time. Of importance to TSPA is quantifying the condition of the rock-mass before and after excavation. Ideally, there should be no excavation-induced changes to the rock-mass’ structure (removing the requirement to model the effects). At the least it may be possible to keep excavation-induced damage far enough away from waste packages so that modeling of these effects will not be required. QED can calculate a prediction of the extents of blast induced damage to the rock-mass. By using this metric as a design parameter, it may be possible to complete excavation of the repository more rapidly and inexpensively than previously thought, without jeopardizing the structural integrity of the waste containment areas or requiring blast damage to be modeled by the TSPA. This paper will explain the structure of the QED blast modeling system and show the analysis of historical data from Yucca Mountain. Processing of the historical data and the subsequent results will demonstrate how blast modeling can be used on an ongoing basis to assist the excavation process at Yucca Mountain.

Jan 1, 2000

By George P. Schivley

The careful positioning of the drill rigs that drill the holes into which explosives are then loaded is critical to the success of the subsequent blast. Today a system of satellites in space, each transmitting radio signals, is being used to provide the data to allow for tracking and positioning of various types of ground-based mobile equipment. The system is the Global Positioning System or GPS for short. This paper focuses on the application of GPS to surface mining and in particular the navigating of rotary drills from hole-to-hole and their final precise positioning to drill each blast hole.

Jan 1, 1996

By J. E. Feddock

To succeed in today's competitive coal market, coal companies must continuously improve production and lower cost. However, the coal industry's historical management practices must change to remain viable? The practices of the current day efficient coal mine manager are reviewed and examined using W. Edwards Deming's definition of management. The statistical tools, including Pareto Charts, Control Charts and Scatter Diagrams, which identify the problems management must approach differently to increase productivity at a coal mine, are discussed.

Jan 1, 1993

By Thomas Schwind, Pamela S. Moran

For short tunnels, a reinforced cast-in-place lining is not economical and shotcreteis a logical substitution. In the past, reinforced shotcrete linings have been constructed with lattice girders and welded wire fabric. For the Russia Wharf Tunnel in Boston, MA, the Contractor, with the help of the Dr. G. Sauer Corporation offered the MBTA a VECP to substitute the reinforced cast-in-place concrete lining with a steel fiber reinforced shotcrete lining. The challenge was to adequately model the ductility of the steel fiber reinforced shotcrete and to test the shotcrete prior to and during construction to assure quality control. To our knowledge, this type of numerical simulation has not been used on any other tunnels in the US.

Jan 1, 2005

By G A. Davis, D G. Laughton

The great variability of mineral and energy prices has motivated some governments to incorporate a windfall profits tax into their mineral taxation regimes. Windfall profits taxes are a means for governments to capture additional mineral revenue when mineral prices are considered higher than some historic level. Governments need to be aware of the effects of such contingent taxes on the exploration, development and operating decisions of mining companies. Mining companies need to be able to calculate the full impact of windfall profits taxes on the economics of their projects. This paper examines the valuation of a multi-phase copper-gold project in the presence of a windfall profits tax. Real options Monte Carlo simulation is used to characterise the different exposures of the mine owner and of the government to the risky cash flow streams that they receive from the project. The results highlight that Monte Carlo simulation paired with the real option valuation method is able to account appropriately for the differing risk exposures, while the traditional discounted cash flow valuation model is not. Our key conclusion for governments and mining companies is that the impact of contingent tax and royalty terms can and should be assessed using advanced valuation techniques, and the results used to improve contract designs under the constraint of actual and perceived fiscal system stability.

Jan 1, 2007

By M. R. Samis

The great variability of mineral and energy prices has motivated some governments to incorporate a windfall profits tax into their mineral taxation regimes. Windfall profits taxes are a means for governments to capture additional mineral revenue when mineral prices are considered higher than some historic level. Governments need to be aware of the effects of such contingent taxes on the exploration, development and operating decisions of mining companies. Mining companies need to be able to calculate the full impact of windfall profits taxes on the economics of their projects. This paper examines the valuation of a multi-phase copper-gold project in the presence of a windfall profits tax. Real options Monte Carlo simulation is used to characterise the different exposures of the mine owner and of the government to the risky cash flow streams that they receive from the project. The results highlight that Monte Carlo simulation paired with the real option valuation method is able to account appropriately for the differing risk exposures, while the traditional discounted cash flow valuation model is not. Our key conclusion for governments and mining companies is that the impact of contingent tax and royalty terms can and should be assessed using advanced valuation techniques, and the results used to improve contract designs under the constraint of actual and perceived fiscal system stability.

Jan 1, 2007

By G. Deschênes

"In 2013, as the prices of precious metals dropped, investors moved their positions to equity markets for higher returns. As a result, the price of gold dropped further to below US$1200 per ounce, prompting additional substantial outflows from gold investments. In response to lagging gold prices, major gold producers initiated large asset write-downs and cost-cutting programmes. In 2015, this trend continues and gold mining stocks are close to lows not seen since the global financial crisis (GFC) of 2008. In the current economic climate many projects have marginal economics, and the number of projects that have competitive development and production costs is declining. A competitive edge is particularly important with the decreasing grades of orebodies, increasing complexity of the mineralogy, and increasingly demanding environmental constraints. In addition, higher cost producers seek to optimize their process t o reduce operating costs.This paper presents some highlights of three case studies on optimization of gold leaching strategies that improved the economics of brownfield projects. Processing of sulphide-bearing ores was optimized by using the synergy between cyanide, lead nitrate, and oxygen. The outcomes were significant reduction of retention times while maintaining or increasing gold extraction and reducing cyanide addition and effluent treatment costs. A stirred tank reactor experimental programme led to direct implementation of reliable leaching strategies from laboratory scale to production. This approach resulted in savings of $2.2 million to $15.2 million on the three brownfield projects discussed in this paper."

Jan 1, 2016