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By Leland O. Erdahi

Many problems have surfaced in our economy during this decade, and the mining industry has certainly had its share: huge capital outlays for environmental controls, volatile markets, double-digit inflation, inadequate capital markets, political uncertainties-plus shortages of energy, manpower, supplies, and equipment. All these and other problems have left their visible marks on the economy of our industry. Solutions are slow in coming; perhaps, in some instances, there are no right answers. However, it appears that many companies are using joint ventures to an increasing extent in efforts to reach partial solutions to some of these problems. A joint venture does present an economic alternative that should be examined-especially when trying to answer questions arising within the current economic context. The dictionary defines "venture" as an undertaking involving chance, risk, or danger. The word was originally applied to hazardous undertakings involving delivery of cargoes to distant ports and subsequent disposition of the merchandise, but it is now applied to any project of limited scope and temporary duration. When two or more entities join in such a project, it becomes a joint venture, and this is the context in which I have used the term. Joint ventures may be formed for exploration, for development of a new ore body, or for expansion of an existing operation. Each requires different approaches for negotiating and drafting the agreement governing the conduct of the joint venture.

Jan 9, 1975

By M. C. LAKE

THE industrial development of the United States has been stimulated by the presence of high-grade iron ore in the Lake Superior district. These great deposits have been susceptible to economical extraction and are conveniently located for cheap lake vessel transportation to the great consuming centers. The district furnishes from 80 to 85 per cent of the iron ore annually consumed in the United States, and a full understanding of the available supply of this great commodity is so important that it is well to consider whether or not the industrial supremacy and national independence attained as a result of the abundance of cheap ore are permanent. The enormous deposits of high-grade ore available in the Lake Superior district have been the foundation upon which the vast industrial structure of the steel and allied industries has been built. It is extremely important to the country as a whole, and especially to those States and communities now dependent on Lake Superior ore for their prosperity, that their industries shall retain the particular advantages with which they are now endowed, and that a generous supply of high-grade raw material be available for their consumption at a satisfactory cost. The steel industry is so basic and fundamental that any fluctuation in the cost of its finished products as determined by the supply and cost of the raw materials involved in its manufacture will necessarily affect the business of a wide variety of industries which are dependent on it.

Jan 1, 1926

By Dirk van Zyl

Pad construction costs can impact the overall economics of heap leach projects. Pad construction costs for single-and double-lined pads, using various designs, are listed for a typical small and large project. Double-lined pads are now more often required by regulatory agencies. Unless such designs reduce the risk of site specific contamination significantly, the extra costs cannot be justified from an economical viewpoint. Specific attention is given to the short project life (typically five years) of heap leach projects. A few numerical examples are presented to demonstrate the overall economic impacts of these costs on economic parameters.

Jan 1, 1990

By R. J. Sweigard, R. V. Ramani

The effects of postmining land use planning are addressed in this paper. These effects may include savings in reclamation costs and increased value of reclaimed land. However, this may result in greater planning costs and possible delays in production. Therefore, an economic analysis was undertaken in an effort to determine the importance of each potential result and to quantify the overall economic impact of postmining land use planning. A discounted cash flow analysis was performed using a surface mine cost model to analyze the sensitivity of selling price to changes in various postmining land use planning parameters. As a result of this analysis, it was determined that the profitability of a project is most sensitive to delays in production, particularly if the delay occurs after major investments have been made. Many methods have been proposed for evaluating postmining land use alternatives (Sweigard and Ramani, 1981). Both quantitative methods, such as benefit-cost analysis (Brock and Brooks, 1968), and nonquantitative methods have been proposed. The application of one specific analytical method is pursued in this paper.

Jan 1, 1988

By R. J. Sweigard

The effects of postmining land use planning are addressed in this paper. These effects may include savings in reclamation costs and increased value of reclaimed land. However, this may result in greater planning costs and possible delays in production. Therefore, an economic analysis was undertaken in an effort to determine the importance of each potential result and to quantify the overall economic impact of postmining land use planning. A discounted cash flow analysis was performed using a surface mine cost model to analyze the sensitivity of selling price to changes in various postmining land use planning parameters. As a result of this analysis it was determined that the profitability of a project is most sensitive to delays in production, particularly, if the delay occurs after major investments have been made. Many methods have been proposed for evaluating postmining land use alternatives (Sweigard and Ramani, 1981). Both quantitative methods, such as benefit-cost analysis (Brock and Brooks, 1968), and nonquantitative methods have been proposed. The application of one specific analytical method is pursued in this paper.

Jan 1, 1985

By H. A. Kursell

IN pre-war days, the mining industry of Russia occupied in the industrial life of the Empire a place of ever increasing importance. The peak of produc-tion was reached in 1913 and 1914, the years of greatest prosperity, and a rapid growth of the mineral industry seemed assured, especially as regards base-metal mining. Exceptions were the gold production, for which a gradual decline was anticipated, and the platinum out-put which was expected to remain steady. A greater productivity of labor, corresponding to better working facilities was noticeable, and the economic status of the working classes was constantly improving. The tremendous strain on Russia's economic life caused by the World War did not materially alter the prospects of the mineral industry and the fundamental changes began only with the revolution in the spring of 1917. Their scope and character are illustrated by the figures in Table 1 which compare, for the parts of the Russian Empire under Soviet (R. S. F. S. R.) control, the average mineral production of 1913 and 1914 with that of 1920, 1921 and 1922, as supplied by bolshevik sources.1The latter three years in Russia's history were characterized by the firm establishment in power of the Communist party as a new ruling caste. Silver, lead, zinc, tin, nickel, tungsten, barite, etc., were either produced in negligible quantities, or not at all. However, before the revolution the development of several argentiferous lead-zinc deposits in western Siberia had reached a stage which seemed to assure an appreciable output of the white metals for the near future.

Jan 7, 1923

By Bradley Stoughton

It is very easy to reduce iron ore at a temperature well below its melting point and produce a more-or-less-pure metal which can be used directly for implements, tools, or machines. This simplicity has been the cause of much money loss by persons who were so satisfied with the successful operation of a process that they paid all too little attention to the commercial aspects of it. How easy a direct process is may be gleaned from the fact that it was practised with some -success by primitive man, and has been in almost continuous operation in one form or another for a period of probably 4,000 years. The production of steel in ton lots, beginning about 1860, brought a new phase into the economic situation, which, however, had been already greatly modified in 1784 by Henry Cort's invention of purifying pig iron. Direct processes survived both of these revolutions, under special geographical conditions, even up to the last few years of the nineteenth century, but ceased to have any general use as the basis of supply for structural, machine, or tool industries even in countries which could have manufactured iron by a direct process, but, instead, imported the product of established iron and steel processes. And this is still the situation today, notwithstanding the invention of an incredible number of 'new' processes since 1900, most of which are abandoned, and only survived as along as their financial backers were willing and able to Jose money. Probably none of these processes failed to work pretty well, and all seemed to show a handsome profit on paper.

Jan 1, 1930

By William P. Jones

THE consumption of sulphuric acid, one of the most important commodities in our modern industrial world, is often used as a barometer for industrial activity. The economics of acid manufacture are largely dependent upon the location of the place of consumption and the availability of raw materials in that locality. Sulphuric acid is made from SO2 oxygen from the air and water. Therefore the sulphur dioxide is the only raw material to be considered in an economic study. SO2 can be obtained from almost any material containing inorganic sulphur, such as elemental sulphur, pyrites, coal, sour gas and oil, metallurgical gases, waste gases, or gypsum and anhydrite. Many tons of acid can also be reclaimed by the recovery and concentration of spent acids. The aim of this paper is to present a guide to the economic aspects to be considered when the installation of an acid plant is contemplated. It must be remembered that 1 ton of elemental sulphur produces 3 tons of sulphuric acid and that the shipping of sulphuric acid by tank car is very costly. The size of the plant must also be given careful consideration. For instance, operation of a plant producing 5 tons of acid per day might be warranted in Brazil or Pakistan, whereas economics usually favor buying quantities up to 50 tons per day for use within the United States. Elemental sulphur, when available at the low price of 1 ½ ¢ per lb delivered at an acid plant, has always been the raw material most frequently used for sulphuric acid. All conditions favor its use at this price. The so-called sulphur shortage has been the subject of so many technical papers, magazine articles, and newspaper items during the past year that it hardly seems necessary to mention it again, but a very brief review of the matter will serve as a foundation for the discussion that follows. There is no shortage of sulphur. Only a shortage of low-cost Frasch-mined brimstone exists today. Other more expensive sulphur-bearing materials are plentiful, both in the United States and abroad. The low cost of Frasch-mined brimstone has discouraged the development of higher cost sources. However, the approaching depletion of Gulf Coast dome deposits and the greatly increased demand for sulphur here and abroad have made it necessary for industry to prepare for conversion to utilize sulphur in other forms. For future planning this situation must be considered permanent and not temporary. This conclusion is based on the fact that although sulphur demand will continue to rise, the production of Frasch-mined sulphur probably will not increase greatly beyond its present level of about 5,000,000 long tons per year. The International Materials Conference in Washington estimates 1952 requirements of the free world at nearly 7 ½ million long tons; and the Defense Production Administration has recently set a new goal for 8,400,000 long tons annual domestic production by 1955. The total sulphur equivalent produced in this country in 1950 was 6 million tons. What, then, are the alternatives for the manufacture of the vital chemical, sulphuric acid? Today about 85 pct of this country's sulphur, and nearly 50 pct of the world supply, comes from our Gulf Coast salt domes and is extracted from the earth by Frasch's hot water process. The Gulf Coast salt dome deposits have been the most important known natural deposits in the world, producing 90 million tons of sulphur during the past 50 years. However, at the present rate of extraction these deposits cannot be expected to last indefinitely. Pyrites Pyrites are, and have been for many years, the source of more than 50 pct of the world's sulphur requirements. The principal use, of course, is in the manufacture of sulphuric acid. The use of pyrites in the United States has diminished greatly because of the availability of low cost native sulphur, but pyrites have continued a major source of sulphur in many other countries. The most available pyrites for use in this country are in the form of lump pyritic ore and in mill tailings from flotation of other minerals such as lead, zinc, copper, gold, and silver. An important factor, when the use of pyrites for acid manufacture is being considered, is the disposal of calcine. A ton of sulphuric acid requires approximately ¾ ton of high-grade pyrite and results in ½ ton of calcine. If the calcine is a fairly pure oxide, free of harmful impurities, it can be used, after sintering, in an iron blast furnace burden. Its value might be as high as 15¢ per unit of Fe at the blast furnace; or possibly $10.00 per ton of sinter, if it assays 65 pct Fe. This might result in a credit of $4.00 per ton of acid if the sintering plant and blast furnace are both located adjacent to the acid plant. On the other hand, several factors must be considered before this credit can be realized, i.e., freight to blast furnace, availability of sintering facilities, methods of eliminating impurities, and the removal of valuable metal values. In some locations it would be most economical to dump the calcines.

Jan 1, 1952

By Joseph E. Pogue

THERE are two methods employed in the development of oil pools. The older and dominant method is one in which the primary object is the protection of the underground deposit from drainage through competing wells, and considerations of efficiency of extraction and cost of production are subordinated thereto. The newer and less prevalent method is one in which maximum efficiency and minimum cost are the first objectives and developments to these ends may proceed undisturbed by the exigencies of competitive drainage. The second method has developed mainly in pools under single ownership and the term "unit operation" has come to be applied to this procedure. A single ownership, however, is not essential to the method, for unity of operation may be achieved by agreement under split ownership, or even by a concert of enlightened purpose. There are examples of unit operation where neither the ownership nor the management is a unit, but merely where unity of procedure has been attained, as is the case of the Yates pool. .Throughout this paper unit operation is used in its broad sense without implying sole ownership or single management, although unit operation is more conveniently attained where these conditions are present.

Jan 1, 1930

By Gunnar Almgren

Hole deviation has great consequences on mining economy, especially for long hole drilling technique. First of all the bore hole datas are concerned but also such factors as development, loss of ore and waste rock dilution are influenced. Hole deviation for sublevel open stoping is illustrated with examples from some mines. The deviations are indicated as mean values but also as standard deviation values, owing to their statistical distribution. The economic influence of the hole deviation is especially studied for steep, small lowgrade orebodies, mined with big hole blasting. Hole deviation can thus influence costs up to US$ 3-4 per ton for operating, development, losses of ore and rock waste dilution. This cost is of the same magnitude as the total operating costs for many sublevel stoping mines. The economic savings in accurate drilling are therefore substantial and are worth all attention.

Jan 1, 1981

By Roger Lacroix

Fuel cell application to mining has been indicated to be potentially beneficial to underground mine worker health and to energy efficiency. In order to define the economic advantages of using hydrogen fuel cell vehicles, a detailed study of operating and capital costs associated with underground loaders and power supply infrastructure has been carried out. The results show that for a typical medium-size mine, operating costs and infrastructure costs are less for the fuel cell option versus diesel. The reverse occurs for capital costs owing to the currently higher cost of fuels cells versus diesel engines. This disparity is expected to decrease given the decline in price associated with fuel cell technology advances. Related market issues for fuel cell manufacturers are also presented. Despite the difference in cost, the resources and mine infrastructure required to operate loaders, and base design of the mine loader, is similar for diesel and fuel call versions.

May 1, 2007

By Simón Díaz‑Quezada, Ernesto Arancibia, HUMBERTO ESTAY, Tomás Vargas

In situ leaching (ISL) is an attractive technique that enables copper recovery from copper oxide ores that are either low-grade or located at depths too great to be economically exploited through conventional methods. At present, in situ leaching (ISL) has been applied to intact copper oxide ores, in particular, those which (i) present a good natural permeability and (ii) do not require preconditioning. Many copper oxide ores present low natural permeability. These are located above the water table and need preconditioning for the ISL application. The present work shows an economic assessment of the application of ISL to this type of copper ores. The preconditioning technique considered here involves the application of partial mining by sublevel stoping by removing a small fraction of the ore. This technique results in forming an ore bed with good permeability and good solution collection at the stope base. The economic assessment of this approach suggests that it can be implemented with positive net present values to copper oxide ores located at depths in the 100–300 m range, with copper grades above 0.4%. The maximum acid consumption values are below 52.5 kg/t, with blasting procedures designed to produce an ore bed with an average particle size below 6″. The breakdown of operational costs indicates that the mining cost is still very high, accounting for up to 60% of the total operating costs. Therefore, optimizing mining procedures is still necessary for improving the economic outlook of this approach and thus expanding the application field of ISL.

Feb 4, 2023

By Chester O. Ensign

Many publications to date have advocated under- seas mining operations, optimistically overlooking the paucity of information on mineral distribution and the ocean environments in which minerals occur. Such articles (smattered with opinion, as is this article) are herein tempered by my more conservative views on the economics of mining under the seas. For purposes of this paper, underseas mining refers only to the deeper surficial deposits of the continental shelf and the deep sea floor, i.e., the deposits of phosphorite and manganese nodules.

Jan 9, 1966

By B. P. Sullivan

This paper describes how the author projected the economic benefits of a proposed coal liquefaction project based in Pennsylvania. These benefits were assessed in a successful effort to garner government support for the project. The projections considered such issues as increases in employment, wages, and tax receipts to state and local government, plus other less-obvious benefits, such as site remediation. The paper explains how sponsors of similar projects can use economic projections in making meaningful and compelling presentations to federal, state and local authorities.

Jan 1, 2000

By J. F. T. Agapito

Significant economic benefits can result when rock mechanics is applied within a practical framework and integrated within the other engineering functions of the mine organization. This requires management support and understanding of rock mechanics as a practical tool to help attain high standards of safety, productivity and resource recovery. For such an approach, a long-term geotechnical program is needed in most operations to build an adequate data base and to ensure that design and ground control issues are handled in a cost-effective manner. This paper presents a summary of four case studies where significant economic benefits were realized with the help of rock mechanics. Although cost savings were not computed, the economic benefits are obvious and clearly impacted the mine operations favorably.

Jan 1, 1990

By J. F. T. Agapito

Significant economic benefits can result when rock mechanics is applied within a practical framework and integrated within the other engineering functions of the mine organization. Such application and integration requires management support and understanding of rock mechanics as a practical tool to help attain high standards of safety, productivity and resource recovery. For such an approach, a long-term geotechnical program is needed in most operations to build an adequate data base and to ensure that design and ground control issues are handled in a cost-effective manner. Best usage of rock mechanics in mining occurs when management recognizes the application as a long-term investment, where time is needed to realize good returns. The need for this approach is due to the difficulty in accurately predicting ground conditions ahead of mining. The practical application of rock mechanics must follow an iterative process of design and verification based on site-specific experience to account for geologic and mining impacts. Ground conditions experienced during mining must be used to check the initial mine design and, if necessary, to provide a basis for design modification. Such a practical rock mechanics program includes comparative experience, in situ instrumentation and numerical modeling. The program begins with the geologic site investigation and continues throughout the life of the mine. It is an integral part of mine planning and operation.

Jan 1, 1991

By R. Gordon Bloomquist

The economic benefits of the co-production of minerals from geothermal brines far exceeds the potential revenue stream from the sale of marketable by-products such as silica, zinc, manganese, lithium and a number of rare earths. Extraction of silica can avoid scaling problems often associated with many geothermal power projects and may allow for additional power production through the use of bottoming cycles or the use of the brine in direct use applications now impractical due to scaling problems. An additional benefit of silica removal is the opportunity to use the geothermal brine as a source of water for enhanced evaporative cooling ? a technique that can significantly improve the summer power output from binary power plants employing air cooling for condensing the working fluid.

Jan 1, 2006

By I. Filzwieser, S. Konetschnik, A. Filzwieser, A. Anzinger

Production in copper electrorefining tankhouses mainly depend on two factors: The deposition area, which is a result of the amount of installed cells and cathodes, as well as the current density - the amperage per square meter of deposition area. The present paper shows, that the most economical way of achieving a certain production is to maximize current density by using the METTOP-BRX-Technology - as building and infrastructure can be kept more compact. This industrial proven technology applies a parallel electrolyte flow in each electrolysis cell. In 2011, the first fully industrial applications started up: At the secondary smelter Montanwerke Brixlegg AG, 156 cells are equipped with the METTOP-BRX-Technology; this allows a current density of 390 A/m². Xiangguang Copper Co., Ltd. - a primary smelter and refinery - operates its new tankhouse (720 cells) at 420 A/m²; this stands for an production increase of 50% compared to the same sized ISA tankhouse which is limited to 280 A/m². The first part of the present paper gives a cost comparison between a conventional copper electrorefining tankhouse and a high current density tankhouse when assuming a Greenfield project. The second part describes the cost savings when installing the METTOP-BRXTechnology in an already operating tankhouse.

Jan 1, 2014

By Warren Blauvelt

IN VIEW of the enormous wastes of natural resources, of labor and of capital, due primarily to the economic environment, established by legislation, the general neglect of this phase of the problem of the elimination of waste is difficult to understand. In such a study, the engineering method of attacking a problem should be employed. The engineer does not try to solve his problem by disregarding natural laws, but by utilizing them. The successful engineer establishes an environ-ment in which forces, acting in harmony with natural laws upon an object or objects, will produce the desired results. The engineer who notices that the water level in a vessel, into which a gallon of water per minute is flowing, is two feet higher than the level in an adjacent vessel, connected therewith by a 6-in. pipe, does not assume that the law of gravity has ceased to work, or that water no longer seeks its level; he examines the connecting pipe for obstacles which prevent the free flow of water. Some editors, many reformers and most politicians tell us that the law of supply and demand no longer works; hence governmental control of commerce is necessary. Governmental control may temporarily-that is, until trial proves its futility- "insure domestic tranquility" and "promote the general welfare;" but it cannot "secure the blessings of liberty" which it cur-tails, nor can it "establish justice" which it violates.

Jan 9, 1922

By F. M. Benavides

The mining complex being analyzed consists of four mines and two processing plants located in an area where there are several existing modes of transportation. Figure 1 shows a map of the general layout of the four proposed mines and the two existing processing plants. The mines are identified by the numerals "I" through "IV" and the plants by the letters "A" and "B". A proposed overland conveyor would collect the product from all four mines and convey it to Processing Plant A. Alternate transportation systems are as follows: Railroad transport from Mines I and II to Plant B; Highway trucking from Mines I and II to Plant A; Off-the-road truck haulage from Mine III to Plant B and from Mine IV to Plant A. River transportation from the mines to the processing plants was not considered in this study under the assumption that the high capital investments for the loading and unloading facilities, in addition to difficult traffic problems, would make this mode of transportation unattractive.

Jan 1, 1980