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By R. M. Schuster, F. M. Benavides

A plan is prepared to develop and operate a four mine complex over a 30-year period. The mining complex is in the vicinity of two existing processing plants and the most economical means of transporting the raw minerals to either or both of these processing plants is sought. The mines and processing plants are all within a radius of 5.6 km (3.5 miles). Existing transportation facilities consist of county and state roads and federal highways as well as haul roads in some areas. A navigable river meanders through the area under study and there are two railroad systems servicing the area. The analysis shows the economic and operational feasibility of using an overland conveyor in lieu of other means of transportation.

Jan 1, 1983

By James H. Owen

Because of price structure, ANFO is normally considered to be the most cost effective explosive used in quarry blasting. Results indicate that bulk smulsion can be more cost effective in applications where hole sizes range up to 6.5 inches in diameter while providing the simplicity of single product loading and storage. This can be accomplished without any fragmentation and/or movement loss usually in patterns which are about twice the size of ANFO patterns, allowing the combined drilling and blasting cost to be less when using bulk emulsions. Examples are presented supporting this concept using actual field results along with some simple calculations which take into account differences in the products such as density, matrix and detonation velocity.

Jan 1, 1998

By R. L. Robinson

An analytical framework is formulated to assist mining companies in assessing the relative merits of mineral exploration and acquisition strategies. The anticipated costs, risks, and returns of each strategy are conceptualised using decision trees. Economic criteria - expected net present value, expected return per unit of investment, and the probability of success - for each strategy are derived(from the appropriate decision tree network. Application of the analytical framework is illustrated using the example of a medium-size company in the Canadian base metal sector.

Jan 1, 1987

By Helmut Goehring

Surface mining has been used primarily where deposits of minerals were exposed or close to the surface. Surface mining can, therefore, be considered the oldest branch of mining. As the most accessible deposits became uneconomical because of the lack of suitable high capacity conveying systems, deep mining took its place. Only in the twentieth century was this trend reversed as high capacity production and conveying systems were developed. This rapid development was triggered by the steadily increasing demand for raw materials and fossil fuels, as well as by the ever increasing ratio between overburden and deposits.

Jan 1, 1982

By Ernst Raphael

Mechanical drives of belt conveyor drives have experienced a huge amount of improvements concerning technology, manufacture and product structure that reduced investment and maintenance cost significantly. Most of these improvements were of technological nature in the'70s and '80s of this century; whereas, the present decade requires products that meet technical excellence as well as commercial advantages such as quick delivery, low cost and reliable spare parts supply. The best approach to meet these requirements is a highly modular and standardized system of reliable components that cover all demands a conveyor drive might require.

Jan 1, 1998

By William R. Yernberg

What a difference a year makes. One year ago, the iron mining industry and the steelmaking industry in the United States were in trouble. Many companies were in bankruptcy, and talk of plant and mine shutdowns was rampant. At that time, it seemed difficult, if not impossible, to remain competitive with imported steel. In addition, the World Trade Organization declared as illegal the tariffs placed on imported steel. And many questioned the viability of the ironmining and steel industry in the United States. At that time, global economic conditions were the main contributors to the industry’s problems. However, since last year’s meeting, changes in global economics have actually helped the steel industry in the United States. Heavy global demand for steel has caused raw-material shortages worldwide. Much of the increased demand is a result of the economic boom in China. In addition, because of a weak U.S. dollar and higher international freight rates, steel imports into the United States have been reduced to about 50 percent of recent levels. These factors have contributed to a rebirth of the U.S. iron mining and steel industries.

Jan 1, 2004

By J. Girard-Dwyer, T. Camm

Direct costs such as medical, legal, administrative, and worker’s compensation costs, property damage, lost earnings, and lost benefits are typically used to compute the economic impacts of occupational injuries. However, there are also a number of less obvious, indirect costs that substantially contribute to the overall loss costs. In fact, for every $1 of direct costs an estimated $3 to $5 of indirect costs are also incurred. This paper presents a systems approach that incorporates engineering, economics, psychology, and sociology in order to evaluate the total value of investments in safety. By studying the interrelated system comprised of the injured worker, their family and coworkers, as well as the organizational structure that was the setting for the incident, a methodology can be developed that will more accurately capture the true costs of mine injuries.

By J. Girard-Dwyer, T. Camm

Direct costs such as medical, legal, administrative, and worker’s compensation costs, property damage, lost earnings, and lost benefits are typically used to compute the economic impacts of occupational injuries. However, there are also a number of less obvious, indirect costs that substantially contribute to the overall loss costs. In fact, for every $1 of direct costs an estimated $3 to $5 of indirect costs are also incurred. This paper presents a systems approach that incorporates engineering, economics, psychology, and sociology in order to evaluate the total value of investments in safety. By studying the interrelated system comprised of the injured worker, their family and coworkers, as well as the organizational structure that was the setting for the incident, a methodology can be developed that will more accurately capture the true costs of mine injuries.

Jan 1, 2004

The concept of "profit" is implicit in the definition of an ore reserve. It is suggested that the flexible concept "economic" is more appropriate. This allows different economic considerations to be taken to account when determining what is ore at the feasibility study stage; during actual mining production; before mine closure; and from the viewpoint of the national economy. Economic factors which are highly variable, and largely beyond a mining enterprise's control, affect the economic exploitation of a mineral resource. Major economic factors include: metal prices; operating costs; the cost of original and replacement capital equipment; the cost of capital; taxation and royalties; inflation; exchange rates and the state of the world economy. The paper suggests why a careful quantification of the average value, trend, and variation from the trend of major economic factors should be made and how this will lead to a better definition of ore reserves. The paper also discusses the necessity of reappraising economic factors during the life of a mine in order to maximise the economic surplus and to minimise the wastage of natural, economic and human resources employed in mining.

Jan 1, 1979

By Gerald Blackmore

"This paper suggests that with the settlement of long-term contracts of fifteen years' duration, with prospects of extension, the coal mining industry has, for the first time, a complete commercial justification for large-scale planning.The labour costs of coal production over past years are analyzed and, with the acceptance of the premise that the basic shift rates are certain to rise in the years to come, the paper suggests that forward planning should provide &r capital investment to make a traditionally labour-dense industry into a capital-dense industry.Automated methods of manpower deployment and timekeeping and the monitoring of all equipment back to a central control point are discussed as ail-important means of obtaining maximum utilization of high-cost capital investment.Principles of payment of the work-force, and the utilization of equipment 24 hours a day, seven days a week and the maximum number of days a year, are dealt with as means of achieving maximum capital utilization. Some of the new technical underground and coal preparation problems which will undoubtedly result from the concentration of workings and maximum machine utilization are discussed, and the author makes suggestions as to how these might be solved.In short, the author predicts that if the coal mining industry is prepared to recognize the problems and invest in modern equipment backed by highly trained staff. then the outcome will justify the high capital investment involved. He stresses the importance of human communications in achieving this end."

Jan 1, 1970

By R. H. C. Andrew

With the advent in recent years qf mechanization in deep-level gold and platinum mines, large quantities of rubber was are being used on both production and support vehicles. Conditions in these types of mines are extremely harsh and, as a result, we performance is significantly lower than in other types of mining such as open-cast base metal mining, where more favourable conditions prevail. Various options are available to the user to reduce tyre costs, including the use of retreads, the filing of tyres, and the repair of damaged tyres. While these methods may be generally successful in open-cast conditions, their use in deep-level mining needs to be carefully evaluated for each particular set of conditions. A basic requirement for any evaluation of we costs is the availability of reliable data on tyre performance and, for this reason, it is essential that proper tyre records are maintained This paper reviews the performance of tyres in deep-level gold and platinum mines in Johannesburg Consolidated Investment Company, Limited (JCI) over a period of about 8 years, and shows how the costs of retreading and tyre filing can be evaluated in practice. It also discusses the cost implications of repairing damaged tyres.

Jan 1, 1994

By Wendi H. Cooksey

This paper examines two comminution circuits on a hypo­thetical gold ore deposit with both small-scale (1,000 short tons per day) and large-scale (35,000 short tons per day) production rates. The most appropriate circuit is dependent on the highest economic performance with a combination of crushing and grinding equipment to achieve the desired product size. The selected circuit is dependent on costs associated with project cri­teria, equipment selection and ore characteristics. Factors influ­encing the selection of the comminution circuit require system­atic evaluation to optimize plant performance and maximize eco­nomic return. The small-scale circuit economics responded best to three-stage crushing followed by a single-stage ball mill. The large-scale plant favors a primary crusher followed by SAG milling and ball milling. The conclusions from this paper indi­cate that each project must be evaluated separately to determine the most economic means of reducing the size of the ore.

Jan 1, 1998

By Robert W. Bartlett

"Bioheap pretreatment of sulfidic refractory gold ore prior to cyanide leaching is a promising new technology, especially for low-grade ores that cannot afford to be oxidized by pressure leaching or roasting. When an ore contains both refractory and non-refractory (oxidized) gold, an economic decision must be made whether, or not, to pretreat before cyanide leaching. This choice is more complex than the familiar ore/waste cut-off grade decision. Pretreatment usually increases recovery but delays receiving revenue. Based on choosing the processing route that maximizes the present value of the ore, an equation is developed that computes a ""critical cyanide leachable gold grade"" for determining whether pretreating will be profitable. If the ore's actual cyanide leachable grade, without pretreatment, is above this ""critical grade,"" it will not pay to pretreat. The waste/ore cut-off grade, pretreatment yield (leachable grade after pretreatment), total gold grade, pretreatment operating cost and the project's financial discount rate are parameters in the equation. Results of example calculations are provided. This equation can be used for mine development planning and, when bioheap pretreatment is an available option, for daily operating decisions on individual ore blocks.IntroductionOres that are refractory because of sulfide mineral encapsulation of microscopic gold are becoming important. These ores must be pretreated to oxidize the sulfides to liberate the gold prior to cyanide leaching. The conventional pretreatment process technologies are pressure leaching with oxygen and two-stage fluid bed roasting. However, low-grade refractory ores cannot afford the high operating costs of these processes. And, small mines with limited reserves cannot justify the high capital costs of these processes."

Jan 1, 1997

By Alfred Jr. Petrick

Modelling of cash flows and calculation of net present value of rate of return over the expected life of a mine/processing unit continues to be the accepted basis for mineral investment decision-making. The computer and spreadsheet programs have greatly improved ability to perform sensitivity and risk analysis, hence our ability to deal with key analytical problems. These problems of cash flow analysis result from the necessity of forecasting an uncertain and risky future. Cash flow models begin with the critical assumption of a "design basis", then integrate all of the variables relevant to the investment decision including forecasts of price, cost, taxation, financial conditions, and company strategy. Alternate "scenarios" portray possible future outcome of the investment decision. The potential for straying from reality is enormous. The computer has eliminated the time consuming hand calculations from the cash flow analysis, but the analyst still struggles with the risk of trying to predict "how the project will really turn out".

Jan 1, 1991

By C. A. Grandison

The economic evolution from an agrarian society to an industrial and service-oriented economy is apparent to most students of history. The long-term trend is almost taken for granted, it does not require explanation — it is accepted as the nature of man to improve his standard of living. However, there are fluctuations around this trend line which have provoked a great deal of thought. The ability to understand and control these fluctuations would yield many benefits, it would eliminate economic waste and public hardship, and would no doubt make a few fortunes. I f it is not possible to control or eliminate these fluctuations, then a reasonable forecast of the tinting, rate of change and magnitude of the fluctuations would be invaluable to industry and government.

Jan 1, 1976

By J. C. Agarwal

Major scientific discoveries cannot be programmed. New or frontier technology, however, can and should be planned. It is the vital force underlying the business strategy of a vigorous and profitable mining and metals company. Generally, a radical departure from existing technology is required to 1) Enhance the competitive value of ore reserves, i.e., to turn low grade or marginal reserves into competitive reserves. 2) To increase yield and decrease costs. 3) To decrease investment. 4) To increase mine life. 5) To improve product quality to meet market demands. The very definition of frontier technology implies that it is so different that the old plant, if already in use, will not be directly suitable to use the new technology. Therefore, a priori, we know that the commercialization of frontier technology would very likely involve new investment. The recommended technique of economic and technical analyses, I propose to call "Success Analysis.'' Simply stated, it forces us, by step- by-step procedure, to ask "what is needed to succeed in this particular project." Therefore, the first step is to identify what is meant by "success." The definition of "success" requires an agreement with top management or sponsors of the project as to what constitutes "success" in their minds as contrast to the technical people perception of "success." In general, top management would define success as meeting: 1) The technical objectives, i.e., technology being developed would produce the desired product at the acceptable quality. 2) Financial objectives, i.e., when commercialized, the project's capital cost, operating costs and return on investment are better than the projects they would normally fund. The return has to be better because new technology is inherently riskier. 3) Marketing objectives in that the project will produce product of acceptable quality in timely manner, i.e., scale-up to commercial plant would not cause undue delays in start-up and that large fix-up expenditure would not be required to protect the projected return on the investment. Many projects are started in the laboratory to develop "Frontier Technology" in mineral processing. Most of these efforts are never commercialized. There are many causes of these failures. The major causes are listed below: 1) Inadequate communication with the sponsors of the project so that project objectives are defined and agreed to by all. 2) Ill-defined technical problems. 3) Incomplete development of technology. This has two major components: a. Incorrect scale-up and engineering. b. Inadequate start-up and maintenance planning. 4) Incomplete and over-optimistic process economics. 5) Lack of understanding of the future behavior of the marketplace. 6) Failure to complete R&D effort by the time it is needed. 7) Incorrect projections of human resources required; that is, technical, managerial and operating. 8) Lack of realistic forecast of the expenditures required for commercialization of the R&D effort. These pitfalls can be avoided by comprehensive planning and the use of success analysis technique. The major elements in "Success Analysis" are: 1) Identification of the "need" for new technology. 2) Unbiased and complete scale-up engineering. 3) Acceptable economic feasibility with enough margin of error in the sale prices and operating costs to justify the inherent risks in frontier technology. 4) Timing for availability of investment capital and markets. Many failures in the development of frontier technology are preordained because the initial selection of the research project has been without adequate attention to the needs of the industry. Many very innovative hydrometallurgical processes for recovery of copper from concentrates were developed in the past twenty years. They have not adapted except to a very minor extent because they did not satisfy the success analysis criteria. The copper industry in North America needed a process to compete against high grade ores and to avoid

Jan 1, 1985

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 entails significant capital and operating expense; 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.

Jan 1, 1999

By 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.

Jan 1, 1997

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 E. A. Rychkun

"For the last 700years of recorded economic history, man has been subjected to alternating inflationary and deflationary patterns. Through this period of time, a severe deflationary pattern has developed approximately every 55 years, creating 12recordable occurrences. Through the last two centuries, this severe deflationary phenomenon has come to be known as a depression. As these depressions have repeated themselves regularly, they are cyclic. This in turn leads to the question of whether the 13th cycle will also repeat itself in the form of a depression. As this cycle is now 51 years old, we must consider the possibility at about 1984.In analyzing a 700-year record of consumer prices in Southern England, the 55-year cycle appears to vary in shape and intensity. This varying phenomenon is due to the effect of longer cycles upon which each one ""rides "". Because each cycle effectively rides on the next largest, which in turn rides on the next largest and so on, the combined measured effect of all cycles together at any point in time is always unique. This means that anyone cycle can never repeat itself in an exact identical manner. The combined effect therefore is what we observe in the form of prices and, as cycles interact, variations in deflation are produced . The ""science"" of economics attempts to quantify and develop theory on situations which are never identical and hence can be conservatively classified as a useless predictive tool.This means that more unconventional approaches may be required to predict our economic future. In looking at previous depression cycles, it is possible to recognize similarities in human behaviour patterns and hence the resulting economic movements. These behaviour patterns create major events or influencing factors which set the scene for a major deflationary condition. The way in which these factors occur, however, is not predictable. As more and more of these similar events are identified in each cycle, we can increase our confidence on the probability of the last event occurring (a depression). By also unravelling the set of larger cycles, we can determine the potential combined effect at any point in the future.This paper presents a system of cycles ranging from 800 years to 3 years which appear to operate in our economic system. By so doing, a long-term projection into the next century can be made. Finally, the paper deals with the main controlling similarities within the depression cycle, to show that a comparison with our current cycle implies that a major deflationary collapse in the mid 1980's is virtualy inevitable."

Jan 1, 1980