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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 Alexander Sutulov

The Western industrial nations are facing today what can be defined as a gradual takeover of their investments in the developing world and more importantly, they are beginning to feel approaching problems with their adequate raw materials supply. This puts them into a strategically hazardous situation, which years ago would probably have been solved by conventional wars. However, the present political and military situation, and particularly the development of nuclear arms, makes such confrontations almost impossible or at least extremely dangerous. Thus other peaceful and more pragmatic solutions should be sought. This is particularly important because the present supply-demand situation in raw materials has a very strong political and ideological background. In the ultimate analysis there are two economic systems, that of free enterprise and the other of the collective or socialistic ownership. Both are competing for world domination, and it seems that both are eager to prove their advantages to the yet uncommitted Third World, which commands the great majority of the human race and a large part of its natural resources.

Jan 7, 1974

By Paul M. Tyler

OF THE 92 elements generally accepted by chemists as constituting the primary building blocks of matter, all but the very rarest have been investigated with a view to employing them in steel manufacture. The surprising thing is that so few have been found commercially acceptable. Despite the relatively small number of elements involved, the use of alloys in steel making is one of the most complicated and probably one of the least well understood of modern industrial enterprises. The action of individual elements in steel making has been described often and a profuse and somewhat acrimonious literature covers pretty much the whole field of ferroalloy ore supplies. In the middle ground between the miner and the -steel maker developments are less carefully watched by most observers and except for an occasional description of the technique of some conversion process or the tariff hearings in Congress, little is said about them. The present paper has been submitted in the hope that it will stimulate broader constructive economic thinking. It undertakes to describe in' relatively nontechnical terms this great and growing though highly complex industry and to study its relations to national progress.

Jan 1, 1932

By René E. Fuenzalida

The copper market has become highly competitive around the world; therefore, operations efficiency is a must for copper producers. The economic outcome in a day-to-day milling is not evident at the concentrator stage, when traditional procedures are used in operations management, based on the supervision of process variables and metallurgical indices. Therefore, in such a complex business, there is a strong need to devise an approach to furnish concentrator's operators with procedures and tools to state and solve the problems related to operational decision making, leading to maximize the economic return of investment; this is what is aimed to be presented in this paper.

Jan 1, 1998

By R. W. Ballmer

Prior to initiating construction of a new mineral development project, sponsoring organizations must be convinced that the operation will be viable. Proof is typically provided by the feasibility study. Considerable man hours will be spent in assessing and evaluating data on the deposit, its environment, and the means of development. Impact studies must be made for various scales of operation, inclusion of by-products, new methods of treatment, deferent levels of integration, and infrastructure configuration. Examples of current materials handling cost estimates are provided from the ongoing investigation in which Amoco is a participant at Ok Tedi in Papua New Guinea and Gag Island in Indonesia.

Jan 1, 1979

By Thomas T. Read

THE benefits derived from stabilization of industry that might possibly be attained through some scheme of centralized economic planning have been much discussed of recent months, and opinions on the subject range from those who believe that some agency like the War Industries Board would be practicable to create and wholly beneficial in effects, to those who are equally convinced that none of the suggestions so far advanced are at all practicable, or likely to be productive of more of good than of evil. The discussion has been on the general topic, but-many of those who have written or spoken on it have introduced economic problems of the pinera1 industry; for example, Newton D. Baker, who referred to the coal industry in his address on economic planning at the Williamstown Institute of Politics on July 31, and then went on to say, "Industrial progress is made by the development of new things, but new things upset the equilibrium of any plan. Who could have planned the industrial effects of the development of the railroads, or the economic changes which you have seen attend the development of the internal combustion engine. Obviously, unless we are prepared to put world economics in a strait-jacket and, like the encyclopedists, write its full history on the theory that further progress is impossible, no such plan could be made for nations which are forging ahead as is entirely rational for nations which are still catching up."

Jan 1, 1931

By E. H. Crabtree

IN an ideal mill, with perfect milling operations, the mineral extraction would be 100 per cent, the, concentrate would be 100 per cent mineral, the tailing would assay zer.0 mineral and the milling cost would be zero dollars. Such an operation can, of course, never be attained. We can only strive to approach it as nearly as possible and in doing so most recognize .the fact that the three primary factors in milling: assay of concentrate, assay of tailing, and cost of operation bear a definite economic relationship to each other. This relation will change from time to time and will be different for different mills, depending on milling equipment, character and quality of feed, market conditions, and other factors. It is granted that for a given operation there is an economic point, but the location of this point is difficult. It is for the purpose of making some of these economic points a little more tangible that this paper has been prepared.

Jan 1, 1930

As the theme of the conference is ære-discover Otago' from the minerals point of view, it is also timely. Of the eight million ounces of gold recorded produced from Otago, perhaps a quarter of this came from the goldfields of St Bathans, Vinegar Hill and Cambrians. The most notable among them was the Kildare Hill Mine, which is the so-called Blue Lake at St Bathans today. The bottom wash encountered in this mine contained the famous Kildare lead, which averaged 7 1/2 dwt to the dish, and is still one of the richest leads of alluvial gold known in the world. The richness of this lead, the best encountered in these gold fields, is otherwise stated to have yielded more than 42 ounces of gold to the cubic yard. It should be borne in mind that this equates to about $22 000 per cubic metre, in todayÆs values. I have been told by older residents of this district that in fact about 1 million ounces came out of the Kildare mine and associated workings. In todayÆs values, this would be about 530 million dollars worth of gold. The largest mines in the district were at Surface Hill, Kildare Hill, Nicholsons, Vinegar Hill, the Never Fail claim at Shepherds Flat nearby, and at Cambrians. It would appear that in almost every case, work stopped when the bottom wash progressed too deep down dip of the anticline hills on which it was initially found. The mining methods were sluicing and hydraulic elevating, and although the gold bearing ground did not stop, eventually it exceeded the ability of the mining methods then available years ago, to work it further. When it is realised that the previous mining has removed what is likely to be only a low percentage of the gold resources in these fields, a tantalising situation presents itself today in that mining technology now available will enable another cut to be taken off these fields. As in the past, I believe this will be million ounce plus and multi-million dollar scenarios, where the economic and social benefits will become widespread prizes.

Jan 1, 1992

By D. B. Sikka

Porphyry type copper ± molybdenum deposits typically occur in the Phanerozoic rocks and have been well documented. During the past two decades a number of porphyry type Cu ± Mo deposits which range in age from 1055 ± 35 Ma to 2970 Ma have been identified in the Precambrian rocks of Australia, Canada, China, Finland, India, Namibia and Zambia. Kalanjkhand porphyry copper deposit M. P., India which is estimated to contain 789 million tonnes averaging 0. 83 percent Cu (millhead-grade); 0.004 percent Mo; 0.2 gm/t Au; 6 gm/t Ag and a cap of 7.532 million tonnes of oxide are averaging 0.8 percent Cu. The economic potential of the expanded copper mining milling, smelting and refining complex to be built in the future at Kalanjkhand, which is the largest porphyry copper deposit discovered to date in the Precambrian rocks of the world is presented.

Jan 1, 1992

By M Hourn, G Anderson, V Lawson, P Voigt, D Mallah

As mine head grades decline and orebodies become more complex, traditional mineral processing techniques and flow sheets to achieve saleable concentrate become more difficult to design and construct. Mines with lower quality concentrates or concentrates with penalty elements are particularly under threat. The economics of such operations are far more susceptible to metal price fluctuations, 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 economic 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 often overlooked is how a hydrometallurgical process could also be integrated in the overall flow sheet to achieve higher overall recovery at the mill. In the base metals environment, this is probably because hydrometallurgical processes are associated with production of metal, or require the use of expensive and toxic precipitating agents once the minerals of interest are in solution. 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 and also tailings streams to complement a concentrator flow sheet in a refractory gold and base metals setting. The value proposition is the isolation of a low grade middling 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 the plant to operate on a more favourable part of the grade-recovery curve while avoiding the expense of metal production. For existing operations this is particularly attractive since it can be added to the flow sheet with no process interruptions. Two case studies are examined showing flow sheets and costings to arrive at the value proposition of the GT low grade treatment flow sheet.CITATION:Voigt, P, Hourn, M, Lawson, V, Anderson, G and Mallah, D, 2017. Economic recovery and upgrade of metals from middling and tailing streams, in Proceedings MetPlant 2017, pp 289–297 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 11, 2017

"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 John K. Hammes

INTRODUCTION From the point of view of the consumer, the cost of mineral commodities might be viewed as the total price industry pays for mine output. Similarly, the mining company engaged in the ongoing business of finding, developing and operating new mines is concerned very much today with the distribution of all the revenue paid for mine output and not just with its direct or controllable cash costs. In other words, what will the labor force, the supplier of energy, explosives, and reagents, and the supplier of government services, management, capital, and the ore reserves receive for their contribution to production? A significant amount might be categorized as what economic theory classifies as economic rent. Mining companies are finding it increasingly difficult to negotiate concession or work contracts to develop ore reserves in lesser developed countries, just as they find themselves accused of taking excess profits in their own countries. The principal difficulty in reaching mutually satisfactory agreements in many cases is the difficulty in establishing an acceptable distribution of income, in particular the distribution of economic rent. (See Chapter 7). Further, it is logical that the decisions and policies of the interested parties be they government or industry should be and will be influenced by their competitive position relative to determining the distribution of economic rent. The raising of finance for a mining project today may be inhibited by too biased an extraction of economic rent by entities other than the risk takers, the mining companies. ECONOMIC RENT A British economist (Ricardo D. McGraw-Hill, 1955) first proposed the concept of economic rent (See Drechsler, H.D. earlier in this Chapter.) Ricardo pointed out that no rent would be paid until land became scarce. Ricardo also stressed the distinction that the price of farm produce was not higher because of the rent paid on farm land but that the rent or price of more fertile farm land was higher because the price of produce is higher. This led to the concept that economic rent is not a cost and that it is therefore not price determining, but is itself price determined. Economic rent may be viewed as a cost if cost is equated with the concept of payment or distribution of income to any factor used in production. However, if it is a criterion that a payment must be made to the supplier of the factor of production, then economic rent is not truly a cost because it is not necessarily distributed or "paid" to the supplier. Consider the commodity A which occurs in three grades: Al, A2, and A3. Any grade may be used as a substitute for another grade in all of the industrial uses of A. However, in industries X and Y the different grades have different productivities. Table 1 shows the relative productivities of each grade in industries X and Y, and in all other industries [~]. [ ]

Jan 1, 1985

By C. L. Pillar

In the capitalistic system the success of a mining enterprise is measured by the rate of return on the investment and the speed by which its redemption is achieved. Exploration in search of ore deposits often results in the emergence of the lean orebody which does not meet basic company requisites. At this point a decision must be made whether to place the orebody into production or postpone production pending more favourable market conditions. The wisdom of this decision, borne out by future results, demonstrates the quality of a company's management and is instrumental in the degree of financial success it achieves. The project feasibility report must show a rate of return on the capital invested that is attractive to the company, plus its full redemption in the desired period of time, in order to bring the property into production on a sound economic basis. Mining companies have demonstrated their ability to bring the profitability of a marginal property from a point that says "no go" to a point of "go" by substantial reduction of expenditure without adversely affecting production rate or cost. Here is where the real challenge exists for today's mining engineers and plant designers; they will have to develop better ideas and concepts: ideas that will still allow maximum production at reduced capital expenditure, This is the sound way marginal orebodies can be brought into production without inflationary increases in the price of their product.

Jan 1, 1969

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 E. Mcl. Tittmann

Deep-seated human instincts urge us to positively mark the passage of time. We celebrate the passage of each year. Years give way to decades, and decades to half centuries and centuries. At all these mileposts we are inclined to pause, take a look around and catch our breaths before embarking on the next leg. We are at such a point now and this meeting I am sure will give direction to the road ahead into the decade of the seventies. In looking around at this point, 1979, it is obvious to all of us that the environment in which we must mine, mill, smelt and refine lead and zinc has radically changed. These changes have, of course, occurred over a long period of time. They have, however, all been in the same general direction. They have all had the same motivation. The period of greatest contrast is probably the fifteen years just before World War II and the fifteen years following the end of that war. I thought that I might review briefly with you what seems to me to be four of the more important changes that have developed since World War II that profoundly affect our activities in the lead and zinc industry. I mentioned before that all these changes have been in the same direction; that is, they have all tended to restrict our freedom of action in pursuing our objective of producing lead and zinc on a competitive basis at a profit. Consequently, in discussing them you may think that I am merely viewing with alarm. This is not the intent. This is merely supposed to be an objective analysis. I think it appropriate before discussing these trends in detail to examine the position of lead and zinc today.

Jan 1, 1970

By E. Mcl. Tittmann

Deep-seated human instincts urge us to positively mark the passage of time. We celebrate the passage of each year. Years give way to decades, and decades to half centuries and centuries. At all these mileposts we are inclined to pause, take a look around and catch our breaths before embarking on the next leg. We are at such a point now and this meeting I am sure will give direction to the road ahead into the decade of the seventies. In looking around at this point, 1973, it is obvious to all of us that the environment in which we must mine, mill, smelt and refine lead and zinc has radically changed. These changes have, of course, occurred over a long period of time. They have, however, all been in the same general direction. They have all had the same motivation. The period of greatest contrast is probably the fifteen years just before World War II and the fifteen years following the end of that war. I thought that I might review briefly with you what seems to me to be four of the more important changes that have developed since World War II that profoundly affect our activities in the lead and zinc industry. I mentioned before that all these changes have been in the same direction; that is, they have all tended to restrict our freedom of action in pursuing our objective of producing lead and zinc on a competitive basis at a profit. Consequently, in discus- sing them you may think that I am merely viewing with alarm. This is not the intent. This is merely supposed to be an objective analysis. I think it appropriate before discussing these trends in de- tail to examine the position of lead and zinc today.

Jan 1, 1970

By Paul M. Tyler, Carle R. Hayward

DOES it pay to do really good work? Quite likely the practical millman will answer that it does not. The preparation of ores for market is primarily a business enterprise, and by and large the individual operator does not bother his head about squandering our national resources or making easier the job of the smelterman. Having accepted such ore as he may get fro111 the mine, his job is to make the best possible showing with his mill fro111 the standpoint of financial return. His success is measured in dollars and cents, and he has no rightful reason to expect more than scant acknowledgment of any other achievements from the stock- holders of his company who in the last analysis are his employers.

Jan 1, 1936

By HILAND BATCHELLER

COMMENT on the economic significance of the special alloy steels seems inevitably to reduce itself to an attempt to peer into the future of the industry in which we are interested. We are all familiar with the historical development of iron and with the almost complete replacement of iron by steel. Those who have been connected with the industry since its .early days have had the satisfaction of witnessing the greatest industrial development the world has seen. As the cartoonists of the muck-raking decade liked to picture steel as an ogre armed with a spiked club, his hands reeking with blood and with golden coins dripping from his pocket, fiercely seeking for more widows and orphans to devour, I choose to call on my imagination to create a gigantic but beneficent robot of such marvellous mechanical skill. that it quickly transforms millions of tons of otherwise worthless material into the infinite variety of useful products which are so largely responsible for our present civilization.

Jan 1, 1931

By AIME AIME

AT the end of September, ' the metal-producing industries were almost prostrate, the production of fuels was largely curtailed, there was a fair degree of activity in general manufacturing, while retail trade was moderately good. Looking at industry on the whole, there was a large percentage of unemployment, the degree of which has increased, progressively, month by month since the beginning of 1921. There is the prospect of much destitution and misery this winter; yet while' in some, quarters, idle workers are already being fed from, commissaries; in other quarters profligacy; in "spending continues, unabated. Amid this confusion in conditions there is;' much that appears paradoxical, but in fact it is not so and indeed everything is running pretty true to form: Such activity in production as there is to be seen is mainly in textiles; - leather goods, foodstuffs, etc., i.e., consumption goods for immediate use. Even in hard times 105,000,000 people must buy a good deal of clothing and food. Besides this there is indispensable repair work and- maintenances. Thus, the good business of the year in white lead for painting. The chief uses for the metals, however, are in the production of capital goods, and except for occasional and special reasons nobody in his senses is capitalizing anything at present prices for labor. Hence several millions of men are idle. The impoverishment of Europe and the exhaustion of her credits adds to this by curtailing our export trade.

Jan 1, 1921

By Walter Renton Ingalls

IN SEVERAL papers and addresses during the past two years, I have dwelled upon some of the economic consequences of the war. The fundamental thought that I have sought to convey is that the world became immensely poorer by the war, not only in material wealth and population, but also in the psychology and morale of the people. I do not see how there can be any intelligent dissent from that statement. All the ideas of post-war prosperity were manifestly fallacious, manifestly fallacious from the outset. If there had been any truth in them it would have followed logically that a great war, with all its destruction of wealth, health and life would be a good thing. Therefore, let us have a great war every ten years or so. Such an idea would be both monstrous and absurd. Assuming then the acceptance of my premise, I have tried to show that the losses by the war could be made good in a short time, i.e., in a relatively short time, only by doing things a great deal better than formerly, and that the accomplishment of such a result called for greater transparency in industry, for industrial cooperation, for thinking in terms of industries as a whole, and for the greater exercise of engineering functions. All of this introduced, of course, the position and psychology of labor. I say frankly that I do not look for labor to contribute any constructive thought to the upbuilding. I neither expect it nor hope for it. This is a pity, for it could do so much for its own economic advancement if it would. However, it never has done so, but rather has benefited only from the exercise of the talents of the few, and the main hope now is to bring it into a passive state, dispelling the resistive fallacies that developed during the war. Let us briefly examine the nature of these.

Jan 1, 1921