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By Lyon F. Terry

ACCEPTED current practice for A the valuation of mineral property is based upon Hoskold's theory and valuation tables first published in 1877, and popularized by Herbert Hoover's "Principles of Mining" issued in 1909. In more recent years the procedure has been developed further in the course of the extensive valuation work required for Federal taxation purposes. The 1-aluation of oil and gas properties and of mines is based upon the same principle-the estimation of the present worth of future net revenues. However, in valuing oil and gas properties the method used for discounting future revenues differs somewhat from that adopted for mines, owing principally to the nature of the re- source. production from oil and gas properties usually declines from year to year, whereas coal and ore de- posits are adapted to a more uniform rate of output.

Jan 1, 1940

By D. C. McKechnie

To the examining engineer, the ever-recurring problem involving the valuation of ore in a prospect presents at different times highly divergent aspects- some entirely physical or mathematical, others essentially personal. The majority of the problems discussed in this paper are obvious to the engineer, and need little elaboration. By the prospector and the general public, however, a number of these questions are often and completely over-looked, or else approached in such a way as to produce final results which are, to say the least, misleading and at times decidedly erroneous. While the purpose of this paper is to deal with prospects or potential mines, many of the problems considered apply equally well to mines with developed ore reserves. As the usual showings on a prospect consist chiefly of a few open-cuts and a limited amount of underground development work, an estimation of the actual ore reserves is a question of minor import, and seldom enters appreciably into an estimation of the probable value of the particular property. The physical valuation of a prospect mainly involves the consideration of such subjects as the general geological features exposed, the strength and type of mineralization, the width and persistence of any associated veins, shear zones, fractures or contact zones, together with the possible grade, size, and continuity of any ore-bodies that may there occur.

Jan 1, 1930

By Ying Gu

Automated mineralogy methods and tools, such as the Mineral Liberation Analyzer (MLA) and the QEMSCAN, are now widely used for ore characterization, process design and optimization. Several case studies published recently demonstrate that large gains can be obtained through grinding and flotation optimization guided by automated mineralogy data. However, since automated mineralogy can only provide the information pointing to where the process gains can be made, it does not directly impact the production gain. Thus, a question is often asked: how to value the contribution of automated mineralogy to process improvement of a particular plant. This appears to be a difficult question. On close examination however, it is found that this is essentially a question of the value of information and it is reasonably well documented in various other industries. Hubbard (2010), in chapter 7 ?Measuring the Value of Information?, dealt with exactly this type of problem. The value of information is the reduced risk of an investment and opportunity loss. The methods Hubbard developed can be applied to estimate the value of automated mineralogy, as well as metallurgical test work, which also produces information that reduces the risk of investment. This paper first introduces Hubbard?s theory on the value of information and how to measure it. It then applies his methods to estimate the value of automated mineralogy, using Anglo Platinum?s fine grinding project as an example. In this case, the value of automated mineralogy includes the reduction in investment risk worth US$ 62.5million, in project rejection worth US$197 million and in opportunity loss worth US$320 million. In the end, a general model is developed to allow the simulation of the value of automated mineralogy in different mining operations constrained by different parameters.

Sep 1, 2012

By S L. Martin, M Wimberger

The binary indicator coding of assay and lithological data according to a single criterion or multiple criteria is a powerful technique for representing mineralised shapes through the modelling of probabilities. This can be as simple as using a single indicator to model the probability of occurrence of a condition, usually a grade threshold or a lithology, but it can also be used with a number of categories. Case studies are presented to show the power of this approach, where the geological controls on mineralisation or on the distribution of a rocktype or alteration, often coupled with mineralisation, are unclear. The categorical approach is often used as a de facto grade filter in disseminated or stockwork mineralisation. The ultimate expression of the indicator formalism is in multiple indicator kriging (MIK), where a conditional distribution of probabilities is generated for each estimation panel. This has applications in recoverable resource estimation, as the input for continuous or categorical simulation, where the distribution of sample grades is multimodal, or when there are superimposed mineralisation events with different orientations. However, in some cases, MIK is being used as an excuse for ignoring a quality geological interpretation. Examples from the public domain show the abuse of the categorical and MIK approaches to modelling probabilities, together with a plea for greater consideration of the geology.

Mar 22, 2022

By Michael Forbes, Rick Jeuken

The challenge of managing geological uncertainty in mine planning is central to optimizing resource extraction while minimizing risks and costs. This paper introduces a novel approach to coal mine planning by integrating chance-constrained programming to address the uncertainty inherent in mining operations. The main takeaway from this work is the demonstration that focusing on reducing the variance of high-quality coal blocks, rather than low-quality ones, can lead to better blending outcomes, higher profitability and more efficient resource utilization. The study presents a case study of a coal mining operation, using chance-constrained programming to manage the uncertainty surrounding coal property predictions, specifically the predicted coke strength after reaction (CSR).

Jan 1, 2025

By Alexander Fleischanderl

Steel market has become somehow unpredictable and requires quick adjustment in production conditions to survive in the harsh market environment. Steel production is not anymore driven by output records, but by efficient cost reduction measures to remain competitive under strongly varying production conditions. Energy efficient production and flexible raw material scenarios have become decisive factors to succeed and survive in our industry. Such scenarios have to be carefully investigated to be well prepared to adopt production steps continuously. The paper analyses various process opportunities to optimize energy and raw material consumption in the production route. Off-gas treatment systems have still a huge untapped potential to recover energy from the hot waste gases. This is valid for the EAF mini mills as well as for the integrated route. Various examples for waste heat recovery systems including resulting benefits are discussed for the EAF, agglomeration, blast furnace, direct reduction and BOF. New innovative bag-filter systems feature extremely low emission levels at lowest pressure loss and sound emission conditions. Also improved control and automation solutions support the operators to minimize the operation and maintenance costs of their off-gas system. Steelmaking by-products shall not be considered as residues, but as a valuable and cheap raw material source. The paper presents some show cases how to valorize slags as well as utilizing coke and iron oxide fines to increase productivity and minimize raw material cost. A new process for highly flexible converter steelmaking allowing for extraordinary high HBI and scrap rates above 50% and improved yield is discussed and evaluated

Oct 30, 2017

By D Cooke

In 2010, Kalgoorlie Consolidated Gold Mines (KCGM) was Australia’s largest gold producer, with total annual production of 788 000 ounces. Of the gold produced by KCGM in 2010, 95 per cent was extracted from the Fimiston open pit, also known as the Superpit. The Fimiston operation encompasses the historic Golden Mile, from which more than 55 million ounces of gold have been extracted from the world-class Fimiston lode style mineralisation.The operational performance of the KCGM Fimiston open pit was reviewed for the period between 2005 and 2010. Key performance metrics reviewed included mined tonnes and grade, cost per ounce of gold produced and the mine to mill reconciliation trends. The years 2007 and 2008 were characterised by a decline in performance against key performance metrics. The ore zones were diluted, with the excess tonnes mined resulting in lower grade and an increase in the cost per ounce. Poor reconciliation between ore mined, the ore reserve model and the grade control polygons was also observed.A series of improvement initiatives were implemented in late 2008. As a result of changes made to the grade control and mining practices, the site performance recovered. Unplanned dilution was reduced, which had a positive impact on mined grade. The lower tonnes combined with higher grade reduced the cost per ounce to below budgeted levels in 2009 and 2010, enhancing the profitability of the operation. The operational performance between 2005 and 2010 was compared to the turnover statistics for the KCGM geology department over the same period. Turnover accelerated between 2005 and 2007, peaking at an annualised rate of 43 per cent. With the onset of the Global Financial Crisis and the implementation of retention initiatives, turnover reduced significantly between 2008 and 2010. A strong consistent correlation was observed between the turnover trends in geology and the performance of the grade control function and resultant site metrics.The cost of turnover is known intuitively, however, rarely quantified. To evaluate the benefit of the improved performance, a detailed financial model was used to quantify the impact of the grade control function. In 2010, the headgrade exceeding budget by just four per cent contributed an additional A$24 M of value to KCGM. In contrast, if the 2008 performance had been replicated in 2010 (-9 per cent on headgrade), the result would have removed A$61 M in value from the business. The KCGM experience between 2005 and 2010 demonstrates the value of human capital in a mining operation and the importance of a high performing geology grade control team to the profitability of a mining operation.

Aug 22, 2011

By Douglas Brand

"The data that many mineral processing plants make use of, is provided by samples taken from sampling systems which are inadequately designed or improperly maintained, and therefore cause detrimental effects to plant operations, production planning and metallurgical accounting! Poorly designed or maintained sampling systems will likely produce low probability samples which give the operator a false sense of security of the product and the process. If data is the basis for action (Flintoff, 1992, p.2), then using the resulting suspect or bad assays by operators, control systems, or metallurgist and administration personnel will act and make decisions which may adversely affect the profitability of a processing plant. Here we will discuss some of the fundamental sampling problems, propagation of errors and a method to estimate what impact this has on an operations Net Smelter Return.INTRODUCTIONIn order to control a mineral processing plant at its best potential, it is necessary to obtain the best possible measurement results of the metal or mineral in question. The sample which is delivered to a measuring instrument, or lab, needs to be of the highest probability to be able to achieve this. This paper will discuss the effects of sampling errors on grade / recovery and grade / Net Smelter Return (NSR) and provide a method to estimate the monetary advantages of using probabilistic sampling in a processing plant.REVIEW OF SAMPLINGSampling, by definition, is the removal of a small representative portion from a total consignment, or flow, for the purpose of accounting or process control.• A sample can only be considered representative, if each and every increment collected, in each of the sampling stages, is representative.• Each particle of the sampling lot must have the same probability of being included in the final sample.• If both of the above conditions are met, then the final sample will be representative of the complete sampling lot.It is commonly known that in order to take truly representative and probabilistic sample, best practices indicate that:• The total stream should be sampled.• The sample cutter should intersect the sample at right angles to the flow.• The sample cutter should travel through the stream at a linear and constant speed and the speed deviations should be less than 5%."

Jan 1, 2016

By O. Norman Lotter

There are many scales of innovation in the pursuit of concentrator performance improvement, including paradigm change, inventive change and incremental change. All are important, but the last is low risk, low cost and has a relatively high probability of success, given the right metallurgical skills. Seeking continuous improvement is also essential to ensure that performance does not decline over time due to ore type changes, personnel changes, equipment wear and other factors. When properly implemented, these small gains offer a very high rate of return for the project cost because they are made from marginal, not total, operating costs of the plant. To be effective this approach requires plant trials that use designed structure and appropriate statistics to test the observed differences arising from the old and new process treatments, be they a change in flotation reagent, in grind, pulp density, etc. However the pursuit of small but financially significant performance gains is often regarded as fruitless because of the range of variance in plant data, and the consequent difficulty of ‘proving’ that a benefit has been achieved. Opportunity for improvement is thus sometimes relegated to the realm of the impossible, or at best, treated with skepticism. Operations managers prefer to look for the larger gains, which are easier to demonstrate and prove. Unfortunately, these are seldom to be found; rather, a large gain can be more easily made by executing a series of small recovery improvements that are together equivalent to the ephemeral single large gain. In this paper we advocate a policy of continuing improvement driven by rigorous performance testing protocols and a formal ‘risk analysis’ approach to judging the efficacy of changes implemented in the plant. Following these simple procedures allows rational decisions to be made on the basis of quantifying risk and reward. In particular we consider the choice of hurdle rate for decision-making which best balances risk and reward. It is shown through case studies from actual industrial practice that this approach is practical and delivers significant financial value to the operation.

By John C. Luck Jr.

"DEVELOPMENT of oil emulsion mud dates back to the early days of rotary drilling when oil was added to the drilling mud solely for the purpose of freeing stuck drill pipe. After the drill pipe was freed, and drilling resumed, this oil was considered a contaminant. Efforts were made to remove the oil but some of it remained and was emulsified with the drilling mud, thus forming a mechanical emulsion.During the late 1930's, operators found that adding crude oil to drilling muds seemed to alleviate 'sticky-hole' problems and so oil was allowed to remain in the mud. This practice was adopted when it was found that faster drilling rates and longer bit life were obtained. These observations led to the development of emulsion drilling muds. During the past five years their application has become more widespread because of the lower fluid losses obtained, greater lubrication qualities, faster penetration rates, and generally better hole conditions.An emulsion may be defined as a two-phase system consisting of a mixture of either finely divided oil droplets in water or of finely divided water droplets in oil. The surrounding liquid is known as the continuous phase. The emulsifiers reduce the interfacial tension, making the droplets tend to repel each other so that they remain dispersed and stabilized. These emulsions are classified as oil-in-water or as water-in-oil, depending upon whether water or oil, respectively, is the continuous phase. Briefly, close inspection shows that they consist essentially of globules of• the one liquid suspended in a continuous mass of the other liquid. Oil emulsion muds are usually of the oil-in-water type. Two basic types of emulsifiers •commonly used in Canadian muds are soaps and lignites."

Jan 1, 1954

By B. Simser, T. Butler

Glencore’s Nickel Rim South Mine, located in Sudbury, Ontario, Canada, is a primary/secondary blasthole operation with ore zones lying between 1,100 and 1,700 m below surface. One of the main benefits of the primary/secondary mining method in high stress ground is that up to 50% of the mining will take place in secondary stopes that should be in a yielded rock mass state. Every future secondary mining stope begins as a primary stope abutment pillar. As with many mines, the stress loading history and rock mass conditions can vary considerably in space and time. Safe mining practices cannot allow for an assumption that the planned secondary stopes are indeed yielded. An incorrect assumption can result in mining development and stoping taking place in high stress ground rather than the expected yielded rock mass conditions. This can result in higher levels of seismicity than expected and incorrect ground support recommendations in areas where workers could be exposed. Seismic monitoring is the mines’ premier tool to track the actual rock mass response to mining. Yielded zones have a reasonably clear seismic signature/pattern over time that is visible in the collected data. The ability to accurately locate small magnitude seismic events can help define and delineate different stages of rock mass failure. The vast majority of the seismic data recorded by the microseismic monitoring system is below moment magnitude (Mw) 0.0. Examples are provided showing how small seismic events (Mw < -1.5) can help provide feedback from the rock mass deformation that allows the ground control engineer to gain a better understanding of how the rock mass is responding to mining processes.

Apr 26, 2022

By D. N. Hillhouse

The economics of exploration target selection can be measured ultimately only against a company&apos;s success at developing mines. In the following brief history of the mine acquisitions of one company, Placer Development Limited, I try to identify the principal targeting parameters and the principal skills that came into play for each property and examine how these have changed with time. The process of target selection in exploration is directed: - first by corporate investment criteria which define objectives and acceptable levels of risk for pursuit of those objectives; - second by experience and skills which permit us to minimize risk; and - third by anticipation of future events relating to ore discoveries and changes in external risk factors.

Jan 1, 1984

By P Hanna

In an effort to improve returns to shareholders, the Australian Mining Industry has consolidated considerably over the past decade or so. Technical services at mines have been re-structured, whilst those at corporate offices have been all but eliminated. A recent study of the role of the geologist in BM Alliance Coal Operations Pty Ltd (BMA), showed the adverse impact on the companyÆs performance due to a lack of geologists. With an education campaign, to demonstrate the contribution of geologists to the æbottom lineÆ and in increasing the options available to the company, the value of the geology role became better understood. The implications of the loss of invaluable corporate knowledge, when long serving geologists left the company, also became clear. Steps have since been taken to increase the numbers of company geologists, particularly on mine sites. In common with other sectors of the mining industry, the Australian coal industry is experiencing a critical shortage of experienced coal geologists, as companies have found in recent recruitment efforts. This is further evidence that the recommendations from the recent study by World Competitive Practices, commissioned by The Australasian Institute of Mining and Metallurgy, æRising to the ChallengeÆ have not been adopted. People, and the mineral resource base, are the assets from which mining companies gain a sustainable competitive advantage. Geologists, as the nexus between the resource base and people, are in a unique position to enhance the profitability of their companies. To maximise their contribution to the industry, and ensure that they receive due recognition, geologists must adopt a more commercial approach in their work and take a front foot stance in promoting their value to management. Geology is a core competency for all mining companies. The tendency for companies to outsource this function, to the detriment of the company geologist role, is not sustainable in the longer term. TodayÆs geologists need to work closely with management, technical and human resource professionals, universities and schools to ensure their significant value is well understood, and that the industry can attract, train and retain new recruits through the implementation of graduate programs and company career paths.

Jan 1, 2003

By K. G. Chipman

The Geological Survey is the oldest map making department in the Canadian Government service, and when organized in 1842, one of the first principles to be recognized was the absolute necessity of having good maps. The primary purpose of the Survey has always been geology; but because a graphic representation by means of maps makes the written report .more readily intelligible; because the correlation of known geological facts is often difficult or nearly impossible unless they can be represented on a map; and, because the public demand information shown in this way, the Geological Survey must continue to supply maps; and the supplying of these maps must be considered as an essential part of the work of the Survey. It is a commonly recognized principle of pedagogics that an appeal to the eye is quicker than one to the ear; that children (and others) learn more quickly when a thing is presented to them through the eye rather than through the ear. The application of this principle to the work of the Geological Survey is that, to a large number of people, the message of a map is more quickly grasped, is more readily intelligible, and is in many ways of more interest and value than is the same information in a report. I do not mean that the maps are of more importance than the reports.

Jan 1, 1924

The value of U.S. mineral raw material output reached a record $63.1 billion in 1975. This high exceeded the 1974 value of $55.2 billion by 14 percent. Among the three major mineral categories -fuels, metals, and nonmetals -only fuels showed an increase in value. Both the metal and nonmetal categories showed declines in value. The significance of this nearly $63 billion mineral output can be noted in the fact that it is the basis for the subsequent production of over $270 billion a year in energy and processed materials. Of the 78 individual mineral commodities included in these 1975 totals, only 17 registered gains in output, while 45 registered value increases, reflecting higher prices.

Jan 1, 1976

The lignites of Otago and Southland offer a potentially viable future feedstock for electricity production and possible conversion to petrochemicals or liquid fuels. The deposits, when combined, represent New ZealandÆs largest energy inventory; equivalent to about 74 000 petajoules û or approximately 35 times current natural gas reserves. Too often dismissed as irrelevant to New ZealandÆs energy future because of adverse perceptions of the value of low rank coals, the strategic value of this resource is in fact huge. &nbsp; Investigations of the lignites extend back over more than 50 years (LFTB various, CRL Energy Ltd). Whilst it is not the intention of this paper to review this work, these investigations have confirmed the suitability of the resource as a feedstock for thermochemical conversion. Current estimates of South Island lignite mining costs are NZ$1.0 - 3.0/GJ (Natusch 2005), making these resources amongst the most competitively-priced energy sources available world-wide. &nbsp; This value, however, will only be captured if we as a country begin to envisage a world-scale, long-life, integrated and multi-faceted development sized to supply world markets for chemicals or fuels. Recent CAE studies (Hooper and Riddolls, 2005) have emphasised the vital importance of ensuring that any exploitation of this resource maximises their value to New Zealand. The question that thus must be applied is how might large-scale utilisation of the resource fit with New ZealandÆs primary energy supply, and its potential for the export of high-value commodities. &nbsp; From the broader perspective of New ZealandÆs total energy supply equation we need to examine other supply options beyond just the generation of electricity. We face in this country a situation wherein almost all our liquid fuels feedstock has to be imported with projections for an increasing dependence on imported oil. In addition NZ has a natural gas reserves-to-production ratio of less than ten years, and dwindling supply from local production. Without further natural gas discoveries, New Zealand has only a window of approximately five years before we will need to commit to imported LNG or some other thermal fuels option. &nbsp; In other words, New Zealand is facing an uncertain future unless we can restore energy inventories to cover an adequate strategic reserve capacity as well as enable long-term investment in alternative sources. Within this context the South Island lignite resources are thus deserving of more attention. The extent of the resource is well known, its suitability for conversion reasonably assessed, and its magnitude such that there is little doubt that lignite conversion could adequately meet NZÆs future energy needs for many years out. &nbsp; This paper reviews coal gasification technology, its application to lignite and the possibilities for future development of the lignite resources. It is argued that the strategic imperative for this country is to secure the lignite resources as a primary energy source for this country well into the latter half of this century.

Jan 1, 2005

By Werner Burger

After its first introduction in 2013, Variable Density TBMs have increased their application significantly in mechanized closed mode tunneling. Throughout a variety of successfully completed and ongoing projects since then, Variable Density TBM technology has demonstrated its advantages in a wide range of applications. This paper will present the developments and lessons learned from these projects as well as the future potential of Variable Density TBMs.

Jun 13, 2021

The first form of a surety bond was an honest handshake between two or more parties, agreeing to a decision and their personal guarantee of following through to completion. This has all changed. In 1895, the United States Treasury Department disclosed that $35 million worth of personal surety guarantees on file had become worthless. At that time, a law was passed, requiring all surety bonds, in favor of the United States, must be corporate surety bonds. Today, a surety bond is one of the nation&apos;s leading financial instruments used to guarantee the completion of an obligation.

Jan 1, 1989

By D. S. Barr

Mineralogical, lithological, and metallurgical studies were conducted on various gold ore deposits currently controlled by Freeport-McMoRan Gold Company. Ore samples were first lithologically and mineralogically categorized, then subjected to chlorination, roasting, and autoclaving pretreatments to determine their effects on gold recovery in a subsequent alkaline cyanide carbon-in-leach extraction. The studies indicate that, while organic carbon and sulfide sulfur are the primary refractory components, their effect on process response must be interpreted with respect to the deposit&apos;s geology and mineralogy. This approach has proven to be an effective method for evaluating metallurgical alternatives and fore-casting future mill performance.

Jan 1, 1987

By R. Gilman Brown

INTRODUCTION. MINES are interesting by reason of what they have done for man, or of what has been done for them by nature. Not all are interesting on both scores. Many profitable mines are commonplace to the geologist; and many presenting unique geological conditions have been sad failures commercially. The Standard group at Bodie has produced in 25 years, $14,500,000, paying $5,000,000 in dividends.&apos; On the other hand, this output has been mined (almost wholly above the 1,000-ft. level) from a system of more than 100 veins, ranging in thickness-from 0.5 in. of "specimen rock" to 30 ft. of clay and quartz; distributed through a zone about 2,000" ft. in width, and representing from three to five distinct periods of formation. This group, therefore, by reason of its industrial record as well as its geological features, may fairly be regarded as doubly interesting. The Bodie district occupies an island of recent (Tertiary) hornblende-andesite, surrounded by a complex of igneous rocks and breccias. It lies at the summit of the eastern foot-hills of the Sierra Nevada mountains, and within the Great Basin, a few miles from its western edge, marked here by Mono lake on the line of the Great Fault. The average elevation of the outcroppings of the veins may be taken at about 5,700 ft. The andesite projects from south to north in a great tongue, 12,000 ft. long and 5,000 ft. wide, reaching an extreme height at the northern end of perhaps 1,000 ft. above the adjoining small canyons. These separate it from the main mass of the foot-hill

Jul 1, 1907