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By J. M. Mutmansky, A. Wang

This paper defines the elements of a basic economic model for decision-making when considering a methane drainage system for an underground coal mine. A drainage system will require significant capital and operating expenses; hence the decision to utilize drainage must be made carefully. The model outlines the basic structure of decision-making and considers the costs and benefits when the methane is marketed and when the methane is vented to the atmosphere. The effects on mine safety and the dust levels in the mine are also considered, both in a general format and as economic variables. Sources of information for executing this decision-making are provided for an actual mine decision.

Feb 24, 1997

By James Boyd

All mining and milling enterprises must be based on adequate ore reserves. Reserves must be established by physical exploration, and the orebody should be of sufficient size and grade to insure recovery of capital invested in mine purchase, development, and mill construction and to provide a reasonable profit. Determination of these economic factors is so complicated, and present costs of mine development and construction so great, that analysis can be made only by competent persons qualified by experience in this field. What rate for maximum efficiency? Unfortunately, even today mills are built before deposits have been adequately outlined, and there are rusting monuments to such folly in nearly every mining region. Also there is a tendency to be guided by the philosophy that "if a little is good, a lot is better," which leads to the conclusion that mining at a given rate and making so much per ton will yield a profit of so many dollars per day. Consequently, why not build a mill to treat twice as much per day and make twice as much money?

Jun 1, 1956

By Norman D. Fitz Gerald

THE growth of domestic requirements for motor fuel has been phe-nomenal, rising year after year in a fashion almost unique among com-modities, resisting depressions and forging rapidly ahead in times of prosperity. Consumption advanced from 226 millions of barrels in 1925 to 522 millions of barrels in 1938; or 130 per cent. The economic influ-ences generating and sustaining this demand are of vital concern to the petroleum industry. The general factors affecting utilization of motor fuel are well known but it is the purpose of this paper to employ the recently developed technique of economic dynamics to describe them mathematically. Such problems in economic analysis are complicated by the freedom of all the variables to fluctuate, their mutual interdependence, changing incidence upon one another, and the nonquantitative character of some of them. Economic quantities and relationships, unlike those of the physical world, are continuously changing and this dynamic characteristic is both a distinguishing and confusing feature in economic research. The com-plexities of the problems require application of the analytical devices of mathematical statistics to uncover the probable relationships between factors. The procedure employed is to formulate a logical relationship linking the dependent to the independent variables, and then simul-taneously, rather than sequentially, determine their separate effects by multiple correlation. This transformation of common knowledge to quantitative terms makes it possible to measure the probable effects of changing conditions upon requirements, assisting in the sound interpreta-tion of economic policies. The utility of the results of such dynamic analysis is in sharp contrast to the sterility of the trends and other simple empiricisms of descriptive statistics. It is not intended in this study to throw light on the reasons why any motor fuel at all is consumed; but to discover relationships explaining why more was consumed at one time than at another. Specifically the prob-lem is confined to the measurement of the influences of statistically

Jan 1, 1940

By M. Drozd, M. Somppi, Z. Yamak

"Granular activated carbon is widely used in the gold mining industry for gold extraction from aurocyanide-containing slurry. The extraction process can employ carbon as part of the gold recovery operation for various circuit designs including carbon-in-pulp (CIP), carbon-in-column (CIC), and carbon-in-leach (CIL) circuits. However, various qualities of activated carbon exist and the durability of the material can change significantly from source to source. Handling this expensive reagent can pose challenges when fine carbon losses occur in the CIP, CIC, and CIL circuits. Additionally, any gold that is adsorbed to these carbon fines can also be lost by various mechanisms including carbon attrition and fracturing, inefficient coarse-fine separation, and poor carbon fines capture. With the above in mind, a series of tests were conducted to investigate standardizing simple laboratory methods for testing carbon quality. A standard procedure beyond or enhancing ASTM methods can serve as additional starting points for evaluating carbon specific to the gold industry. The investigation focused on size distribution, flatness, wet attrition resistance, surface area, gold kinetics, and gold loading. The final results provided information to generate an equation for ranking carbon samples to plant performance.IntroductionActivated carbon for use in gold extraction is amongst the most commonly found processes in modern gold-milling plants. Although gold losses are inevitable in the milling process, operators often focus on the importance of maximizing gold recovery. One focus area that is important in gold recovery is optimizing the use of activated carbon and examining potential changes to realize improved economics for carbon-in-pulp (CIP), carbon-in-column (CIC), and carbon-in-leach (CIL) processes."

Jan 1, 2017

By W J. Cowie

Several years of operating experience of over 100 gold recovery operations on the West Coast has provided a database from which the basic operating costs of these types of operations can be characterised. Using figures generated from the averaging of plant operating costs throughout the region and financial modelling using Lotus spreadsheets has been developed to analyse both existing and proposed developments. This type of modelling has several uses: 1. Identification of the impact on profitability of changes in management practices, finance costs, operating costs and revenue streams. 2. Project evaluation and planning. 3. Profitability projections for development financing. 4. Troubleshooting with existing operations. 5. Valuation of existing operations and properties.

Jan 1, 1987

By Brian W. Mackenzie

The mine development decision is made on completion of exploration to determine whether or not a mineral deposit should be developed to production and, if so, how. This involves the selection of an optimum mine development alternative from a number of technically feasible alternatives and the comparison of this optimum with those of other available investment opportunities. If the optimum is sufficiently attractive, the deposit is developed to production. The selection process is carried out within a framework of corporate objectives and resources. The mine development decision is based on the balancing of two parameters - - rate of production as reflected in plant capacity and cut-off grade. On the basis of available information and experience, detailed revenue and cost 'estimates are made for each feasible combination of plant capacity and cut-off grade. What economic evaluation techniques should be applied to these estimates to reduce each alternative to economic indicators that will enable meaningful comparisons and an informed investment decision? This is the essence of the paper. The determination of optimum plant capacity and cut-off grade has been the subject of intensive research efforts by economists and mining engineers (1-7). Their studies are based on marginal analysis and assume that, at the time of decision, certainty conditions prevail with respect to ore reserves, mining costs and mineral markets. The optimum mine development alternative is defined as that which maximizes profitability.

Jan 1, 1969

By R. G. Bradbury

The paper uses two hypothetical, but typical, situations to show that hydraulic rock drilling equipment has very significant economic advantages over pneumatic equipment both in drifting applications (even in the situation where advantage is not taken of the high productive capacity of the hydraulic drill) and production drilling applications. Other factors, including the non-economic advantages and the disadvantages of hydraulic drilling, are discussed. The paper concludes with a brief analysis of why the Canadian mining industry has been slow to take advantage of this apparent broadly advantageous advance in rock drilling technology.

Jan 1, 1979

By Frances Badelow

This paper describes a design process for piled raft foundations supporting high-rise buildings. The design process comprises an initial stage of geotechnical site characterization using the results of investigation boreholes to prepare a subsurface model and derive geotechnical parameters for raft and pile design from empirical correlations. Following this a preliminary analysis is undertaken using a combination of elastic theory and allowances for non linear behaviour of the piled raft system to assess the viability of such a foundation system and any potential advantages of a piled raft over conventional fully piled foundation systems. Finally, a detailed analysis is undertaken using the GARP8 computer program. Case studies where this design process has been successfully used to design a more efficient piled raft system that has resulted in significant cost and time savings compared to conventional bored pile foundation options are also described.

Jan 1, 2006

By ed. comp., S. H. White, A. J. Naldrett, P. R. Simpson

Peter Simpson's introduction, Tony Naldrett's concluding remarks and discussion by Prof. White of D.M.A. Flight's report of the proceedings are presented from the conference held in Keyworth, UK, in April 1992

Apr 1, 1995

By Richard M. Chamberlin

Perlite is an altered rhyolitic glass with 2 to 5 wt % water that expands or "pops" when heated quickly to plasticity while evolving steam to form lightweight, glass foam. Commercial perlite deposits in New Mexico are well-developed zones of chemical weathering (hydration) superimposed on highly permeable and thick glassy zones at the chilled upper surface and toes of high-silica-rhyolite lava flows and lava domes. The maximum tonnage of glass in these volcanoes was predetermined by their unique eruptive histories. New Mexico perlite production (80% of US production of 571,00 st) is mostly from the 3.9 Ma high-silica-rhyolite lava flows at the No Agua Peaks volcanic center. The primary vent at No Agua is defined by a 900 ft-high rubidium-rich composite lava dome, known as West Peak, that contains minor perlite reserves. Slightly less rubidium-rich lava squeezed out from under the west flank of the dome to form relatively thin (250 ft) but highly vesicular lobate flows that now consist of about 50 % recoverable perlite. Finally, rubidium-poor lavas were extruded from a radial dike on the northeast flank of the dome. These thicker (400 ft) flow lobes contain about 20 % recoverable perlite. The largest mass of lava does not always contain the most perlite. The thinner (west) flow at No Agua yields the largest perlite reserves rather than the large composite lava dome or thicker (east) flow.

Jan 1, 1994

By Graylin R. K, dea T. R, O&apos

The Wolgan Seam of the Upper Permian IlIawarra Coal Measures of the Western Coalfield of New South Wales consists of high volatile, low sulphur, medium hard coking coal with high fluidity. This seam, 1·8-2·4m thick, in the Wolgan area, dips gently at 1°_20 ENE and lies at 160-440m below the deeply dissected surface of the western margin of the Blue Mountains plateau.A detailed study of the deposit has revealed that the Wolgan Seam consists of four main coal plies separated by three distinct stone bands. Each of these subunits is lenticular and displays individual physical, chemical and mineralogical characteristics which exhibit distinct spatial distribution patterns across the area. Most noticeable is the presence of long linear ESE-trending zones of low ash - high volatiles - high fixed carbon - high fluidity which delineate the major distributary pattern within the deltaic environment of coal formation.This seam contains some of the highest fluidity coal in the world.The Wolgan area, close to the western margin of the Sydney Basin, is characterized by:I. a regional, closely spaced, homogenous joint fracture pattern dominated by an orthogonal pair set trending 3400 and 0700, to which the face- and butt-cleat directions respectively of the Wolgan Seam are sub-parallel, and2. a more widely spaced, heterogenous, cross-cutting pattern of regional structural fractures. Zones of bad roof conditions are probably associated with these lineaments which are subvertical and trend in three majordirections, viz., 005°,035° and 115°.

Jan 1, 1980

By Thomas W. Mitcham

A program of geological research in support of mineral exploration efforts is outlined. Specific goals are stated, approaches to accomplish their attainment are described, and the type of useful results to be expected are outlined. Because mineral exploration or prospecting has intensely practical goals, research in support of it must be applied research, applied to the problem of maintaining or increasing the discovery rate of the exploration effort. To attain research goals, attention to personnel selection, group structure, and program are critically important, and in about that order. A large percentage of the professional personnel should have had experience in mining geology or mineral exploration, and they all should be prospector-oriented. Structuring in the group should be at a minimum, with wide allowance for the kind of independent research which is essential to the nurturing of on-target creativity. The program should be field-oriented, and it should include a wide representation of those subdisciplines of geology which are applicable to mineral exploration. The types of results to be anticipated include improved or new conceptual models for various types of orebodies and their settings from which new ore guides can be derived, new exploration techniques, and the development of a knowledge bank for various aspects of the exploration effort.

Jan 1, 1968

By J. C. Agarwal

Do large-scale projects in mining and smelting start up and achieve expected capacity on schedule? In most cases not. Regardless of worldwide location, company know-how, or financial backing, unforeseen delays occur. A comprehensive CRA study for the World Bank shows that delays are the rule, not the exception, in most mining and smelting projects. When delays are not factored into analysis and planning, financial projections are, literally, not to be believed. Returns on investment will seldom achieve their targeted level because of startup delays. This paper reviews the results of our analysis of startup of new mines, mills, and smelters; provides a detailed discussion of why delays occur in the smelters and refineries; presents the cash flow implications of startup delays; and discusses preventive measures that should be taken to avoid financial shortfalls,

Jan 1, 1983

By H. L. Bourne

The sand dunes which line the east shore of Lake Michigan resulted after the last, or Wisconsin, glacial period in Michigan. Melt-water streams carried vast quantities of glacial debris to the near shore areas of predecessors to Lake Michigan. As the lake levels receded, these vast quantities of sand were exposed to the prevailing westerly winds, which was the last major process that acted upon the sand and resulted in the formation of the dunes. 1 These dunes are one of the significant natural resources within the state. Michigan dune sands supply about 90% of the foundry sand used in the automotive industry, and 40% of the foundry sand used 2 for all purposes within the United States. The deposits owe their importance to the following factors: grain size distribution, grain shape, mineral composition and location with respect to the foundry sand market. In spite of their economic significance these I deposits are in jeopardy through legislative preemption.

Jan 1, 1975

Mining executives often have a difficult task determining what the strategic objective of the business should be as this can be impacted by the prevailing market conditions. In addition, they have no mechanism to quantitatively 'test' the impact of this strategic decision on the business and understand the underlying dynamics. During the commodities bull run of 2003 to 2008 the strategic objective may have been to grow the long term value of the business (NPV) through increased tonnage, acquisition and finding new reserves, which all came with an increasing fixed cost base. Now with the financial crisis upon us and the collapse of commodity prices and demand, executives have adjusted their strategies as 'cash is king' and short-term cash flow, in some instances at the expense of long terms value, is the order of the day. For many mining companies, mine closures, reductions in production and cost cutting exercisers are now the focus. In many instances, management do not have an ability to rapidly test different strategic alternatives to 'test' the impact on value, unit costs, reserves and profitability at the operational level and optimize the underlying trade-off variables. Economic modelling of the complete business value chain is a means of linking the operational 'reality' and strategic choices, so that the full impact can be assessed. This paper describes some of the challenges facing mining executives and how economic modelling can be applied to make decision making more rigorous.

Jan 1, 2010

By N. Sasto, E. Bondi, G. R. Lane

Cyest Corporation has been involved in economic modelling and optimisation with various mining clients within South Africa, and internationally, for the past 5 years. In the mining industry in particular, the relationships between variables that are controllable, and those that are not, and the physical and economic outcomes are complex and often non-linear. These relationships constitute an economic system. In the mining context, although many of the relationships can be accurately quantified on a ?single variable to single variable? basis, such simplistic relationships will not suffice in order to understand the dynamics of an entire mine. One has to specify and quantify the relationships between hundreds, if not thousands, of variables. Furthermore, in reality, these relationships change over time. This is the role of an economic model where all the relevant cause-effect relationships, within pertinent constraints, are accurately represented. Models that are used for optimisation must therefore capture the dynamics of the economic system in question as well as anticipate changes to the relationships between these variables. An accurate economic model is a prerequisite for successful optimisation. Optimisation entails the allocation or configuration of resources, within control of management, which will maximise (or minimise) a desired objective function. An optimal configuration (implying trade-off) of controllable variables therefore exists for a given set of assumptions that will yield a maximised objective function. Due to the multi-variant trade-offs required for optimisation, the concept of the ?Economic Surface? or ?Hill of Value? has been used to represent these optimisation outcomes and to discern the route to an optimal configuration. A good example of this is the volume versus cut-off grade trade-off that yields an optimal value for a particular shaft with its unique geological and economic assumptions. More recently, Cyest has extended these economic models to incorporate risk associated with variance in assumptions and inputs. This is termed DFA (dynamic financial analysis) and incorporates stochastic modelling and some of the latest actuarial techniques around modelling global assumptions (such as pricing and exchange rate). This paper will cover the theory around mine optimisation through some example case studies, and also explain the latest thinking regarding incorporating DFA.

Jan 1, 2007

By Carlos Avalos Casillas, Saul Ortiz Landeros

The current work shows metallurgical results obtained at the Centro de Investigación y Desarrollo Tecnológico (Peñoles CIDT), as a continuation of the work first published in February 2012. With the aim of optimizing the economic values of the products, ores from San Julian (Fresnillo) were selectively floated to produce a lead concentrate and a zinc concentrate containing high silver values. In the laboratory, this included regrinding of the rougher and scavenger lead concentrate to increase the liberation of mineralogical species and thus lower zinc recovery. Cyanide leaching bottle tests were conducted to improve the value of the silver. It is proposed to leach the silver contained in the zinc concentrate and then recover the silver using the Merrill Crowe process. The results show a reduction of zinc recovery in the lead concentrate from 11.3% to 2.0% after regrinding to a P80 of 10 microns, improving the metallurgical quality and economic value of the lead and zinc concentrates. Also laboratory and pilot scale cyanidation tests showed that about 65 to 80% of silver will be leached from the zinc concentrate, after regrinding to a P80 of 10 microns. The proposed processing increases the economic recovery of silver from 72.7% to 78.8%.

Jan 1, 2014

"As mine head grades decline and orebodies become more complex, traditional mineral processing techniques and flowsheets to achieve saleable concentrate become more difficult to design and construct. Mines with lower quality concentrates or concentrates with penalty elements are particular under threat. The economics of these operations are far more susceptible to metal price, concentrate treatment terms and the availability of other, cleaner concentrates. Additional value may be realised for these orebodies through improved recovery by producing a low grade middling concentrate for further processing, in conjunction with a saleable concentrate.The most cost effective way to reduce impurity levels is to do so as early as possible in the mining value chain. Technologies such as fine grinding and fine particle flotation are well established as effective methods for impurity rejection in mineral processing. What is normally overlooked is how a hydrometallurgical process could also be integrated in the overall flowsheet to achieve higher overall recovery at the mill. In the base metals environment, this is mainly because hydrometallurgical processes are associated with production of metal or use of expensive and toxic precipitating agents once the minerals of interest are solubilised. These processes can be very expensive, particularly with rising power costs and poor economies of scale in capital costs associated with low production rates from middling streams.Glencore Technology (GT) has recent experience in the treatment of middling and low grade concentrate streams as well as tailings streams to compliment a concentrator flowsheet in a refractory gold and base metals setting. The value proposition is the isolation of a low grade middlings concentrate from the primary circuit or the tailings stream for upgrading to an intermediate product with an equal or higher grade than the primary concentrate to allow blending for sale. This allows plants to operate on a more favourable part grade-recovery curve while avoiding the expense of metal production. For existing operations this is particularly attractive since it can be added on with no process interruptions.Two case studies are examined showing flowsheets and costings to arrive at the value proposition of the GT low grade treatment flowsheet."

Jan 1, 2017

By A. S. Bayne

WITH the great increase in the use of power-driven machinery in industry, and consequent large-scale operations, the hazards to which , workmen are exposed have become much more numerous than at the beginning of the century. This is especially noticeable in mining. In the past thirty years or so, improvements in methods of excavation and metallurgy have made possible the exploitation of deposits which would have failed to make ore in previous years. This improvement, together with the in-creased use of machinery, has facilitated the mining of tremendously greater tonnages with a marked decrease in unit cost of production. This 'speed up' in mining creates numerous problems demanding close attention of operators and necessitates careful prep;tratory planning, as well as diligent supervision of actual operations. Underground openings increase in size so fast, and all phases of mining, mucking, and transportation proceed at such a rate, that a short period of reduced vigilance on the part of operators . results in disaster, both from the standpoint of safety and economies. Happily, the challenge of increased hazards has been successfully met by a general application of the slogan 'Safety First'. Today, we have large manufacturing concerns devoted entirely to the development and production of safety equipment for the protection of workmen in various branches of industry. Machinery manufacturers, in co-operation with their mining customers, have included the best possible in foolproof devices in the manufacture of hoists, compressors, boilers, electric motors, and equipment of all kinds. Mining companies and private individuals spend thousands of dollars and devote a great deal of time to research with the single object of preventing accidents and combating miners? diseases. Governments throughout the world have written regulations into their statures for the protection of miners and operators. Staffs are appointed to enforce these laws and investigate accidents to ascertain means of preventing them for the future benefit of the industry.

Jan 1, 1938

By Richard Franchot

From an efficiency viewpoint, the greatest loss of energy to the blast furnace is in its failure to convert more than about a third of the coke carbon from carbon monoxide to carbon dioxide. This result has usually been ascribed to a necessity of a 2:1 excess of CO in order to reduce iron. It has, however, been proved that iron is completely reduced by equal volumes of carbon monoxide and carbon dioxide. Hence there is room for the hypothesis that vaporization, as cyanid, of accumulated alkalis is a serious primary factor limiting the ratio of ore to coke. Observed cyanid vapor concentrations and those measured by the variations of the nitrogen-oxygen ratio in the hearth gases form the basis for a quantitative explanation of the furnace action. As EVERYBODY knows, the blast furnace is a gas producer. As to the reason for this, people are not so well agreed. The significance of the fact is obvious, for the extent to which the fuel leaves the furnace as combustible gas measures poor economy in iron smelting; while good efficiency in this respect means poor gas. The furnace thus works at cross purposes. The present trend of the steel industry is toward. a primary use of the blast furnace as a gas producer with pig iron as a byproduct. Needless to say, this trend is away from improvement in iron making. The production of more and better iron in a given furnace consuming a given amount of coke would seem, at least, to involve a decrease in the relative proportion of the combustible gas. The possibility at the same time, however, of making more and better gas need not necessarily be excluded. (The more the furnace acts as gas producer, the bigger is the sulfur problem.) Whatever the object, it would seem desirable to have a, clear, comprehensive, mathematically exact estimate of why and how the blast furnace functions, to the large degree that it now does, as a gas producer. The literature does not give a definite answer to the question. That for which explanation is sought is the fact that only a minor part, usually not more than a third, of the coke carbon burned is oxidized to carbon dioxide; that the development in the furnace of the fuel energy is thus limited usually to little more than 50 per cent.; that it requires about twice as much fuel coke to make a ton of iron as is indicated by the rela-

Jan 7, 1925