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By Ross D. Lawrence

"Comparable transaction analysis is the best known of the market approaches to valuation of exploration-stage mineral properties. The analysis of option and farm-in agreements can also provide useful guidance to valuators. While such approaches can be distorted by incomplete analysis, market-based methods are capable of providing consistent, credible results when carried out carefully with due consideration paid to all factors which buyers and sellers consider when dealing in the real market.RÉSUMÉRoss D. Lawrence graduated from the University of Toronto with a B.A.Sc. (Applied Geology-1956) and an M.Comm. (Mining Finance-1959). As a student and following graduation, he worked across Canada on a variety of mineral exploration projects.In 1962, he was one of the founders of Watts, Griffis and McOuat, and has practiced as consulting engineer since then. For the past 20 years, Mr. Lawrence has headed up the WGM valuation practice, responsible for a group of professionals which has carried out scores of valuations of mineral properties and mining companies. He is a Certified Minerals Appraiser of the AIMA and an active participant in professional affairs.INTRODUCTIONMineral properties without defined resources present one of the most challenging tasks to the mineral valuator. You will hear from others at this conference about the use of cost and income approaches to the problem of valuing exploration properties. This paper will concentrate on market-based approaches. Market based-approaches are based on the principle of substitution and include such techniques as:??Comparable transaction analysis (sometimes referred to as sales comparison analysis).??Farm-in commitment analysis??Rules of thumbAre there any valuation standards available to assist the valuator? In Canada there are none that apply to the valuation of mineral assets or securities. This problem is being addressed, at least in part, by the CIMVal committee of the Canadian Institute of Mining, Metallurgy & Petroleum (CIM)1. Further, the recently established Canadian Association of Mineral Valuators will be giving consideration to the adoption of valuation standards."

Jan 1, 2003

By L. C. Raymond

Valuations in the mineral industry differ from those of other enterprises because mines and oil wells have a definite life so cannot be considered a perpetuity. This requires that in any mineral-property evaluation the recovery of invested capital is necessary during the life of the property. Capital write-offs for nonextractive industries are assumed to be continuously plowed back to sustain the operation and produce yields on the capital invested. The extractive or mineral industry, however, generally attempts to return to the investor both interest and principal during the life of a property. Normally this is done currently and the dividend includes both items. Where the mineral property possesses large reserves and the life factor approximates a perpetuity, the return on investment is generally comparable to that of industrial stocks. The valuation of a mineral property, at best, is based on educated estimates and judgment factors. This is particularly true as it relates to estimating selling prices over a long term or assessing the quality of management. Also, it is possible to make various assumptions as to rapidity of working out the deposit, varying time for start-up of operations, varying earning rates, so as to obtain different results with the same basic facts. Thus it is not surprising that two engineers, irrespective of their abilities, may not agree exactly even when given the same facts, but their results should be close enough to be used in establishing a fair value for trading purposes. The valuation is no better than the source of basic data and the soundness of judgment factors. Fundamentally the basic principles of mineral valuation are similar for base metals, sulfur, oil, or any other mineral. Each mineral, however, requires an engineer to have a knowledge of such factors as its occurrence, distribution, mining and processing methods, and marketing problems in order to gather and analyze all the facts and data that have a bearing on the earning potential of the property. Present Value of a Mineral Property In essence the present value of a mineral property is a sum of money in today's dollars that future income from the property are worth. It differs from the total anticipated earnings by the amount of the interest that the unrecouped investment could be expected to earn during the period of recoupment. Thus, if one could accurately estimate what a mineral property will earn during its life, after deducting all operating, administrative, capital, interest, and tax charges, the determination of present value would be a relatively simple mathematical calculation. Normally, where the expected life of the mineral property extends beyond 20 or 25 years, the discounted value of earnings beyond this period is relatively small. The petroleum industry generally discounts the annual cash flow of an operation rather than earnings since, for tax-saving purposes, earnings are kept

Jan 1, 1976

By L. C. Raymond

Valuations in the mineral industry differ from those of other enterprises because mines and oil wells have a definite life so cannot be considered a perpetuity. This requires that in any mineral-property evaluation the recovery of invested capital is necessary during the life of the property. Capital writeoffs for nonextractive industries are assumed to be continuously plowed back to sustain the operation and produce yields on the capital invested. The extractive or mineral industry, however, generally attempts to return to the investor both interest and principal during the life of a property. Normally this is done currently and the dividend includes both items. Where the mineral properly possesses large reserves and the life factor approximates a perpetuity, the return on investment is generally comparable to that of industrial stocks. The valuation of a mineral property, at best, is based on educated estimates and judgment factors. This is particularly true as it relates to estimating selling prices over a long term or assessing the quality of management. Also, it is possible to make various assumptions as to rapidity of working out the deposit, varying time for start-up of operations, varying earning rates, so as to obtain different results with the same basic facts. Thus it is not surprising that two engineers, irrespective of their abilities, may not agree exactly even when given the same facts, but their results should be close enough to be used in establishing a fair value for trading purposes. The valuation is no better than the source of basic data and the soundness of judgment factors. Fundamentally the basic principles of mineral valuation are similar for base metals, sulphur, oil, or any other mineral. Each mineral, however, requires an engineer to have a knowledge of such factors as its occurrence, distribution, mining and processing methods, and marketing problems in order to gather and analyze all the facts and data that have a bearing on the earning potential of the property. PRESENT VALUE OF A MINERAL PROPERTY In essence the present value of a mineral property is a sum of money in today's dollars that future earnings from the property are worth. It differs

Jan 1, 1964

By L. C. Raymond

Valuations in the mineral industry differ from those of other enterprises because mines and oil wells have a definitive life so cannot be considered a perpetuity. This requires that in any mineral-property evaluation the recovery of invested capital is necessary during the life of the property. Capital writeoffs for nonextractive industries are assumed to be continuously plowed back to sustain the operation and produce yields on the capital invested. The extractive or mineral industry, however, generally attempts to return to the investor both interest and principal during the life of a property. Normally this is done currently and the dividend includes both items. Where the mineral properly possesses large reserves and the life factor approximates a perpetuity, the return on investment is generally comparable to that of industrial stocks. The valuation of a mineral property, at best, is based on educated estimates and judgment factors. This is particularly true as it relates to estimating selling prices over a long term or assessing the quality of management. Also, it is possible to make various assumptions as to rapidity of working out the deposit, varying time for start-up of operations, varying earning rates, so as to obtain different results with the same basic facts. Thus it is not surprising that two engineers, irrespective of their abilities, may not agree exactly even when given the same facts, but their results should be close enough to be used in establishing a fair value for trading purposes. The valuation is no better than the source of basic data and the soundness of judgment factors. Fundamentally the basic principles of mineral valuation are similar for base metals, sulphur, oil, or any other mineral. Each mineral, however, requires an engineer to have a knowledge of such factors as its occurrence, distribution, mining and processing methods, and marketing problems in order to gather and analyze all the facts and data that have a bearing on the earning potential of the property. PRESENTVALUEOFAMINERALPROPERTY In essence the present value of a mineral property is a sum of money in today's dollars that future earnings from the property are worth. It differs

Jan 1, 1959

By William E. Roscoe

"Valuation methods are well established for mineral properties with production or imminent production, and include discounted cash flow and comparable transactions. Valuation methods for non-producing mineral properties, however, are more subjective. Non-producing mineral properties include those at various stages of exploration, properties at the prefeasibility or feasibility stage, properties with currently uneconomic mineral resources, and past-producers. Different valuation methods may be appropriate for different types of mineral properties.Income approach methods such as discounted cash flow and option pricing are generally not applicable to properties at the exploration stage. The market approach is generally appropriate to all types of mineral properties, although it is difficult to find good comparables because of the unique nature of mineral properties and the small number of transactions. Cost approach methods, such as appraised value and geoscience factor, are commonly used for exploration stage properties.Canadian standards and guidelines for valuation of mineral properties are in the process of being finalized by a Special Committee of the Canadian Institute of Mining, Metallurgy and Petroleum (CIMVal Committee). The CIMVal Standards are intended to be consistent with National Instrument 43-101, which sets regulatory standards of disclosure for mineral projects, and with International Valuation Standards. The intent of the CIMVal Standards and Guidelines is that mineral property valuation be carried out by appropriately qualified individuals and that all relevant information be disclosed."

Jan 1, 2003

By William E. Roscoe

"Non-producing mineral properties include those at various stages of exploration, properties at the pre-feasibility or feasibility stage, properties with currently uneconomic mineral resources, and past-producers. The market approach is applicable to all these types of non-producing mineral properties. Income approach methods such as discounted cash flow and option pricing are generally not applicable to properties at the exploration stage, but may be applicable to non-producing mineral properties with defined mineral reserves or mineral resources.The value of a non-producing mineral property depends on its perceived potential for the existence and discovery of an economic mineral deposit. The potential, in turn, depends on a number of factors which must be considered when choosing market comparables. These comparability factors include such items as geology, mineralization, stage of exploration and results, mineral resources, location and geography, and political jurisdiction. The date of the market comparables must be within a reasonable time period of the valuation date of the subject property. Although it is difficult to find good market comparables because of the unique nature of mineral properties and the small number of transactions, these difficulties are compensated for by analyzing a number of transactions on similar properties to develop a range of values for the subject property.For valuation purposes, market comparables can be expressed in terms of total property value, value per unit area (e.g., $ per hectare), or value per unit of metal contained in mineral resources (e.g., $ per ounce of gold, or $ per pound of copper). The market comparable value can be used to estimate the value of the subject property by using the total property value, unit area value or contained metal value."

Jan 1, 2003

By A. A. de Gast, R. B. James

"The metal content of ore blocks can be calculated by the use of many different methods. These methods range in sophistication from manual calculation to computer. oriented techniques. In this case a cubic polynomial regression model is developed to depict the grade distribution of an orebody. Mine production, in stope dimensions, is then simulated on a computer to predict the output of metal content. The volume, grade and variance of the grade are estimated by triple integration and matrix algebra. A case study shows reasonable agreement between the results from the mathematical model and the mine geologists' estimate of production and ore reserve grade and tonnage."

Jan 1, 1972

By A. Noël, R. Lapierre, M. Provencher

"Modem aluminum smelters are facing significant operating cost pressure. Key methods used by smelters to manage this pressure are automation and production-information systems to optimize processes, manage quality, anticipate problems and reduce operating costs. In 2002, Aluminerie Alouette Inc. began its Phase II Expansion project, and retained the joint venture of SNC-Lavalin and Hatch (SLH) as its engineering, procurement and construction management (EPCM) team. Alouette had the distinction of being one of the most efficient aluminum smelters in the world. Alouette already understood the importance of systems integration in project delivery. For Phase II, key objectives were identified to ensure ""a state of the art"" integrated architecture that would support Alouette's production goals to integrate the existing facilities with the expansion, to form a single efficient facility and meet project schedule and budget targets. Achieving those objectives within the context of a large project often creates major challenges due to the nature of the traditional EPCM delivery model, which relies on several vendors and third-party-systems integrators. In this case, an integrated Alouette-SLH team was made responsible for all aspects of the systems integration, taking over the task from most suppliers. The integrated team was responsible for delivering an automation system and plant-wide-production IT system for the new facilities while accommodating migration for the existing systems. Through the use of rigorous methodology and advanced state of the art technology, the IT and automation strategy led to significant value creation and is recognized today as one of the key factors of the project's success. The primary results were: fast and efficient start-up of facilities, due to quality programming and implementation; a plant able to operate as a single entity; automation and IT systems delivered before time and under budget; standard programming methods implemented throughout the plant; and reduced and simplified maintenance."

Jan 1, 2006

By J. H. Hill

The globalization of mineral markets and intense competition in downstream mineral-consuming industries such as transportation, agriculture, and construction are requiring raw materials suppliers to innovate, improve quality, invest in new technology, and control costs. Mineral specifications are becoming more refined, and pressure to improve products is felt from increasing numbers of competing producers, substitute materials, customers, and regulators. As a result, engineered mineral products are becoming more like manufactured ones in terms of cost structure, differentiation, and the importance of market driven, customer specific product development. Engineered mineral products are defined as those where the costs of refining and upgrading outweigh those of conventional mining activities (blasting, crushing, classification, haulage etc.), and where close control of physical and chemical parameters is required for customers' processing and manufacturing applications. This includes industrial minerals such as calcium carbonate, kaolin, mica, specialty oxides, talc, and some metal powders. It excludes most metals and bulk commodity materials such as gypsum, lime, sulfur, and soda ash. Engineered mineral products are utilized in common household goods, and are at the forefront of industrial materials engineering in plastics, ceramics, composites, glazes, coatings, and construction materials. As a group, they introduce interesting questions to the minerals firm. Advanced materials or basic? Diversify or specialize? What are the implications of advanced materials and for mineral markets, and most importantly, where can the producer look for long-term value, volume, and profits?

Jan 1, 1993

By P. J. Le Roux

"Mining companies are under constant pressure to reduce their cost structures to sustain profitability. In mines using an open stoping mining method, dilution often has a significant effect on profitability. At Target mine in South Africa, dilution in some open stopes was found to exceed 10%, falls of ground being a major contributor to the problem. This dilution can reduce the recovered grade from 5.5 to 4.5 g/t, resulting in a potential loss of about R21 million per month based on a gold price of R240 000 per kilogram. In addition to the cost of dilution, the cost of damage to, or loss of, trackless equipment as a direct result of falls of ground in open stopes is significant. Other associated costs include transport, hoisting, secondary blasting, milling, and plant treatment of waste material. Stable open stopes are essential in order to reduce falls of ground. Back-analyses of stope instability at Target mine have indicated that conventional rock mass failure criteria are unsuitable for stope design. An alternative strain-based criterion has been developed, and has proved to be very successful, allowing the stability of open stopes to be calculated reliably. Since its implementation in 2010, dilution and equipment damage have decreased markedly, creating value for the mine. IntroductionMines that make use of an open stoping mining method aim to extract only the ore, leaving the waste behind. Many orebodies have well-defined boundaries between the ore and the waste rock. In such orebodies, the introduction of waste into the ore due to overbreak dilutes the grade. In massive disseminated orebodies, dilution is less problematic. Overblasting, falls of ground, or other causes may result in dilution. A study undertaken in Canada (Pakalnis et al., 1995) found that approximately 51% of all underground metal mines utilized open stoping mining methods and, from surveys conducted at these mines, open stoping operations experienced dilutions of up to 20%, and occasionally more. Dilution of this magnitude has a significant economic impact on any mining venture. Research carried out in Australia by Capes (2009) came to the same conclusion."

Jan 1, 2017

By Juan Camus

To understand why some companies excel in creating value, Jim Collins (2001) and a group of postgraduate business students engaged in a comprehensive, five-year research project. They examined 1,435 U.S. companies for more than 40 years, seeking those that made significant improvements in their financial performance over time. The distinctive pattern sought was: ?Fifteen-year cumulative stock returns at or below the general stock market, punctuated by a transition point, then cumulative returns at least three times the market over the next 15 years. ?The search identified 11 outperforming companies, all in different industries, that were called the ?good to great? companies. To contrast these companies with similar peers within the same industry, the search also selected a group of comparison companies that failed to make the leap from good to great. Collins then set out to examine the transition point. What distinguishing features did the good-to-great companies have that their industry counterparts did not? At the heart of the findings about these outstanding companies is what Collins refers to as the ?hedgehog concept? ? how to find the one big thing that the company must focus on. According to Collins, those who built the good-to-great companies were, to one degree or another, hedgehogs. Those who led the comparison companies tended to be foxes, never gaining the clarifying advantage of a hedgehog concept, being instead scattered, diffused and inconsistent. This insight is complemented by Peter Drucker (2004), an influential management guru, who asserts that the first question an effective executive should ask is: ?what needs to be done?? Asking this question and taking it seriously, he asserts, is crucial for managerial success; and that the answer almost always has more than one urgent task, but the effective leader only concentrates on one task. In this last respect, Drucker emphasizes: ?If they [executives] are among the sizeable minority who work best with a change of pace in the working day, they pick two tasks. I have never encountered an executive who is effective while tackling more than two tasks at a time.?

Jan 1, 2011

By S Cossfo Torres

Minera PenmontÆs gold mine, La Herradura, is located at the northwestern Mexican state of Sonora and consists of an open pit mine and heap leaching facility for the recovery of gold. The production began in July 1998, and today La Herradura produces about 200 000 oz of gold per year. Standard sampling and assaying protocols were established during exploration based on heterogeneity tests. However, at deeper zones of the pit, coarse gold became evident and it was necessary to develop a new sampling protocol in order to minimise the fundamental error and improve the metallurgical accounting. This new sampling protocol requires cyanide leaching the whole pulverised sample from the blasthole, assaying pregnant solution and fire assaying 50 g of tailings. A sampling study was performed on 195 blasthole samples analysing gold under the standard and new protocols. The new protocol demonstrated that the original one underestimated gold grade by approximately 27 per cent, with impacts on ore misclassification and metallurgical accounting. According to the ore grade control system, mineral with gold grade above 0.35 g/t was sent to the leach pad and mineral with lower grade was classified as waste. Based on the sampling study, it was decided to classify a low-grade ore with gold assay between 0.20 and 0.35 g/t which was stored for future treatment under better gold prices or should mine production decrease. These two conditions were present during 2005 and 2006, when about 3.5 Mt of low-grade ore were leached.

Jan 1, 2008

The OptiPit® software program is developed based on expertise gained at the Colorado School of Mines (CSM) using Mixed Integer Linear Programming (MILP) techniques. This program has been developed to satisfy the need in the mining industry for a multi-time period schedule and cutoff grade optimization tool that handles large scale open pit and underground mining operations involving many dumps, stockpiles, complex processing options and blending requirements. The current software (or earlier development versions) has been beta tested and used on various large scale projects within Placer Dome Inc., Newmont Mining Corporation, and Phelps Dodge Corporation since 2003. Through the use of this software, these companies experienced additional value creation by optimizing mine sequences, cutoff grades, material process flows and stockpiles under complex operational and processing constraints. This paper will present simple case study results to demonstrate the power of OptiPit® when used as a cutoff grade optimization tool. Furthermore, the paper will show, by example, how significant the difference in the Net Present Value (NPV) of a given project can be, depending on whether results are obtained by way of cutoff grade optimization using OptiPit®, or by using traditional breakeven cutoff grade approach.

Jan 1, 2007

By Derek Egbert, Kevin Baumgartner, Howard Perko

Foundation designs in a bid-build business environment can be challenging as so much depends on the capabilities of the selected contractor.  Owners and governing agencies must be open to value engineering (VE) alternatives.  This paper presents a case history where a foundation VE design was prepared for a county bridge replacement. The existing structure was a two-lane, simply-supported, truss bridge approximately 270 ft long and 30 ft wide.  The new bridge is a three-lane, two-span, continuous steel plate girder bridge approximately 250 ft long and 49 ft wide.  The new bridge was to be founded on two end abutments and one center pier by a total of 173 micropiles. Due to the number of micropiles and the time requirement to install a single micropile, an alternative design was proposed utilizing driven steel piles for support of the abutments and rock-socketed drilled shafts for the center pier. Replacing the micropiles with the proposed alternative was intended to reduce overall construction time and cost. Shallow bedrock and soil scour presented unique challenges for the bridge foundation and required an in-depth investigation to determine the required depth of foundation elements to achieve pile toe fixity. It was determined the sand layer thickness was not sufficient in some places to provide fixity to the VE driven piles and therefore the east abutment had to remain the original micropile design.  Substitution of driven pile and rock-socketed drilled shafts in the other areas still resulted in both time and cost savings.  This case history shows how engineers, contractors, owners, and governing officials can collaborate collectively to develop effective foundation solutions. Keywords: micropile, driven pile, drilled shaft, abutment, center pier        

Oct 7, 2024

By Colin Irwin, Adrian Naranjo-Castillo, Christopher Petta, Eric Zarobila

The Shoreline Consolidation Sewer is a CSO control project in Cleveland, Ohio that requires the installation of 5,000 feet of 72-inch inside diameter pipe using microtunneling methods. After award, the contractor submitted a value engineering proposal to eliminate two deep shafts and install the tunnel in two drives instead of four. In an example of successful collaboration, owner, contractor, and engineer worked together during the initial construction stages to modify the design and update the contract documents. This paper examines the importance of exible requirements in contract documents and a collaborative environment between all parties to successfully deliver a project.

Jun 23, 2024

By Lu Yitan, Frances Badelow, Manish Tiwari

"Large ‘design and construct’ projects often present significant geotechnical risks. However, these also present significant opportunities for value engineering in design. These opportunities can be realised through systematic site investigation and close collaboration with the Contractor to dovetail the design solutions to suit construction methods. This paper presents a case study of a large infrastructure project in Singapore which involved design optimization of an earth retention system for a deep excavation in a constrained urban environment. The project also required installation of over one thousand bored piles in highly variable ground conditions - identified as a key risk. Systematic site investigation was undertaken to develop a reliable ground model. A detailed value engineering exercise identified opportunities for design optimization by changing the retention systems and construction sequence in some segments. An innovative low cost ground improvement method was used in some areas to reduce the forces on the retention system. An extensive instrumentation and monitoring plan was implemented for verification of design and to mitigate the remaining risks. This paper includes the lessons learnt on this challenging project, which are relevant to a wide range of construction projects.INTRODUCTIONSingapore has been rapidly expanding its underground Mass Rapid Transit (MRT) network over the past two decades. The Thomson-East Coast Line (TEL) forms part of this expansion and is 43 km long and fully underground comprising 31 stations. This paper describes the value engineering and design optimizations undertaken during detailed design of the earth retaining and support structures (ERSS) for one of the underground stations along TEL. The station, currently under construction, is up to 24m deep and 350m long. The edge of the station excavation is less than 10m away from the existing MRTviaduct. The proposed station is surrounded by high-rise residential and commercial structures, somewithin 2m of the excavation. Land Transport Authority (LTA) of Singapore imposes stringent technical and contractual requirements on MRT construction works to ensure high quality and safety standards. These include minimum requirements for embedment of retaining walls, groundwater control, additional site investigation, instrumentation and monitoring, and compliance to LTA’s Civil Design Criteria (CDC). Any deviations from the minimum requirements can only be approved by LTA after detailed calculations, analysis and field testing are completed and additional monitoring and control measures are proposed."

Jan 1, 1900

By Peter Faust, Jeremy Zorne, Timothy Siegel, Diane Fiorelli

Professional sport venue construction follows a very simple rule. Once the decision has been made to move the team to a new place, construction shall begin immediately, so that not more than one or two seasons pass by stuck in the old home. Such tight construction schedules require a different approach than traditional design-bid-build contracts. Design is mostly done on the fly, the construction schedule becomes a main risk factor and an early contractor involvement is desired. As specialty contractors become more and more sophisticated, owners, their construction managers or the general contractor have realized the value of ideas and modern technology they can bring to the table for a successful and fast project completion. Local knowledge and experience in a variety of solutions play a key role in the specialty contractor’s ability to provide added value to the project. This is also true for the specialty foundation contractor, who needs to understand the complexity of such modern structures from its integrate foundation, over the delicate concrete structure to a potentially fancy movable stadium roof. Not to mention all the modern high tech equipment which shall make such a place a great customer experience. His expertise shall enable him to propose the most suitable foundation element for the given ground condition and application. Rather to build what others have designed, his strength is to propose alternate concepts which will be faster and (hopefully) more cost effective. This paper highlights different value engineering (VE) input a specialty foundation contractor had on 3 major sports arena projects in California. Together with the entire team from owner to GC, including the Geotechnical (GEOR) and the Structural Engineer of Record (SEOR), the most efficient and best performing foundation solution can be found every time. But such an approach also requires the open mind of the owner to entertain last minute changes when the permit drawing set has already been submitted for approval.

Jan 1, 2018

By P G. Doig

Recent drops in commodity prices and economic uncertainty have seen many businesses re-evaluate their operational expenditure to ensure mine profitability. The high capital and operational cost of truck and digger fleets has resulted in loading and hauling of material being a significant proportion of a mine’s expenses (Nel, Kizil and Knights, 2011), thus it is often one of the first areas to be considered for cost reduction. If an operation requires additional trucks to maintain or improve productivity, a robust justification is crucial due to the expenditure involved.Mining schedules form the basis of productivity and cost estimations for mining operations and therefore must have a significant level of confidence with regards to achievable quantities and rates. Traditionally, a mining schedule is produced without detailed consideration of the trucking capacity or requirements. Although some mine planning software incorporates haulage predictions into schedules, most cannot model the dynamic nature of dumping and haulage. Previous studies have shown that it is necessary to have detailed haulage analysis instead of the traditional mining block centroid to dump block centroid methods for more realistic mining schedules and cost estimation (Doig and Kizil, 2013).Recent developments in software have allowed the dynamic integration of haulage analysis with mining schedules. Engineers can now create mining schedules in conjunction with dumping schedules, allowing mining schedules to reflect the restrictions created by the number of available trucks, combined with dynamic consideration of available in-pit and out-of-pit dumping locations.A study has been completed producing a mining schedule in conjunction with a dumping schedule and haulage analysis. Multiple schedules were run with various haulage strategies (including minimising rehabilitation liability) and truck availability to identify the impacts on coal production, and hence revenue. A financial analysis was then completed where a net present value (NPV) was calculated for each scenario. The study showed that trucking shortfalls can significantly impact mining schedules and cost estimations, both in terms of cost as well as revenue lost when trucks cannot maintain forecast production rates, thus dumping schedules and haulage analysis should be completed simultaneously. If dumping and haulage is not considered when planning the mining schedule, a mining business is ignorant to the impacts trucking has on the mine production, closure risk and profitability.CITATION:Doig, P G, 2014. Value impacts of truck limited scheduling, in Proceedings Life-of-Mine 2014 , pp 513–524 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 16, 2014

By Aitor Elorriaga Fernandez de Arroyabe

The purpose of Sinter plants is to heat iron ore fines along with fluxes and coke fines or coal, to produce a semi-molten mass that solidifies into porous pieces of sinter with the needed size and strength. Fluxes used in the sintering process need to have an appropriate size distribution and TI to avoid generation of fines, which could reduce the productivity of the Sinter. Besides, a homogeneous chemical composition and high absorption characteristics are necessary to control the basicity and to combine the flux with P, S, Si, etc, respectively. PASEK Dunite is an ultramaphic rock exploited in the north of Spain with a basic chemical classification, being olivine and serpentine its principal minerals. It is a very homogeneous and hard stone and its main characteristics are: high hot and cold resistance to mechanical stresses, softening and melting points of a flux not of a refractory material. In addition, due to its mechanical and chemical properties, less fines are generated in the sintering process and during the handling and transportation to the blast furnace, improving the productivity of these processes. In this way, the use of PASEK Dunite allows increasing the homogeneity structure of sinter, reducing the percentage of return fines and improving the Sinter productivity.

Oct 30, 2017

By Cristina Escudero Martinez

The purpose of the Basic Oxygen Steelmaking (BOS) is to refine the hot metal produced in the blast furnace into raw liquid steel, which may be subsequently refined in the secondary steelmaking shop. Appropriated fluxes for the BOF could require low melting point to reduce the energy consumption, to reduce the energy to fluidity the slag at lower temperature and to melt at lower temperature than steel. It is necessary a good Tumble test result and the fluxes do not generate fines which could obstruct the blowing plugs, so we would have a homogeneous flux. A homogeneous chemistry that allows to control the basicity (Si and MgO levels) and a high absorption characteristics to combine the flux with P, S, Si, etc. are necessary. PASEK Dunite is an ultramaphic rock exploited in the north of Spain with a basic chemical classification being olivine and serpentine its principal minerals. It is formed by orthopyroxene, clinopyroxene and olivine in variable proportion. Dunite is a very homogeneous and hard stone. The main characteristics are: High hot and cold resistance to mechanical stress (shatter / crushing / abrasion), softening and melting points of a flux, not a refractory material, large porosity which is increased more than 20% when dunite is heated at BOF process temperature, and high absorption level, and stable components with low melting points. PASEK Dunite is a good flux in BOF process and its use is recommended if the BOF process produces pig iron with low Si content, generates high levels of slag and it is necessary maintaining the basicity index and the MgO amount and with high value of hot metal ratio (high amount of phosphorus to remove).

Aug 16, 2017