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By V. S. Sastri, Elboujdaini. M.

"Economics of wear in mining industry and methods by which wear cost may be reduced will be discussed.IntroductionCanada loses more than $5 billion annually due to friction and wear (Table 1). It is estimated that about $1.3 billion, or about 25% of the losses, could be saved through better application of existing technology (Table 2). It should be noted that the costs given in Table 1 and 2 refer to 1986. The losses due to friction and wear and the savings would be much higher in 1996. Tribology combines the many branches and specialties in science and technology concerned with understanding and combatting friction and wear. Specifically, tribology is concerned with the design and manufacture of sliding and rolling bearings, piston rings, gears, cutting tools and other devices in which surfaces interact, in sliding or other relative motion. Tribology is concerned with the correct use of materials for interacting solid surfaces, with the interaction of the surfaces with the lubricants, with the chemistry, physics and use of lubricants. It is concerned with the reduction of friction and wear and the avoidance of associated failures in machinery. Similar tribological components such as bearings are used in different technologies and similar tribological problems such as abrasive wear occur in different industries. Thus, tribology is in itself a generic science and technology, concerned with the generation and dissemination of knowledge on friction, wear and lubrication, and the application of the knowledge, to a wide range of industrial products and equipment, from ploughs to space equipment, from prosthesis to engines, from washing machines to railways, from computers to power stations, from paper mills to mines. Avoidable losses due to friction and"

Jan 1, 1997

By Reamy Joyce

CONDITIONS in underground mining are so variable that in approach-ing the problem of the economies effected by the use of pressure-treated mine ties and mine timbers, it is necessary to secure specific data for each mine. Facts must first be dug out to show the service life of untreated timber and the reason for its failure. Generally speaking, decay is the usual cause of failure, but in some mines mechanical destruction is an important factor. Occasionally the two causes combine to produce fail-ures, and it is difficult to determine positively which factor is responsible. In making comparisons, it is always necessary to start with the cost in place and for this reason there must be accurate information covering the labor cost of installation and the labor cost of renewals. When treated timber is used, it is necessary to know the specifications for the treating process, whether the timber was painted, dipped, treated open tank, or impregnated under pressure according to standard specifica-tions. It is also necessary to know the preservative used and the amount of the preservative that was retained by the timber after treatment. It is also well to know whether the timber was thoroughly air-seasoned before treatment or was green at the time it was treated. The kind of timber available, both untreated and treated, must be known and all of the factors listed above must be taken into consideration in the study of any problem.

Jan 1, 1939

By Robert F. Winkle

A detailed breakdown of mining costs, available to management on monthly and year-to-date bases, is mandatory for a controlled and efficient mining operation. A simple lump sum reporting of costs may indicate a profit or loss differential, but it does not allow an effective search for areas of possible cost reduction. Moreover, functional reporting is necessary on a timely basis so as to note trends of increasing costs In specific areas, which in turn allow possible preventive action by management. Definitive cost information helps to eliminate the tendency to overlook areas where cost Improvements can be made. A good cost control system points out salient operational weaknesses by: ( 1 ) allowing comparison of functional costs with similar costs of other mines and (2) pinpointing sudden increases over unit empirical costs within the organization. In general, the cost accounting structure is relatively uniform within large open pit mines, but surprisingly some systems will overlook the need for detailed breakout in comparatively high cost areas. In some other systems, unrelated costs will be lumped together, preventing careful analysis of cost accrual.

Jan 1, 1979

By Franklin J. Stermole

INTRODUCTION Economic evaluation of an open pit mine is similar to the economic analysis of any major investment project in any industry. It requires (1) taking into account all of the costs and revenues that are estimated to be incurred over the economic life of the project; (2) crediting the project with all the tax savings and tax credits that will be realized over the project life from tax deductions and credits related to various project costs; (3) charging the project with all taxes to be paid on taxable income over the project life; and (4) properly accounting for the time value of money for all project costs, revenues, taxes, tax savings, and tax credits when making the overall project economic evaluation. These considerations must be taken into account for any valid method of economic analysis such as discounted cash flow rate of return (DCFROR) or net present value (NPV) analyses. All economic analyses fall into one of two categories. ( 1 ) comparison of income-producing alternatives, or (2) comparison of service-producing alternatives. The analysis of alternatives in either of these categories can be made by using correctly any of five basic economic evaluation approaches which are. ( 1 ) present value, annual value, (3) future value, (4) rate of return (ROR) , and (5 ) break-even analysis. Of these evaluation techniques, DCFROR and NPV analyses are used most widely for evaluating income-producing alternatives while present worth cost and equivalent annual cost analyses are used most often for the evaluation of service-producing alternatives. In this chapter income- producing alternative analysis is emphasized, so DCF- ROR and NPV are utilized for evaluating the case studies presented.

Jan 1, 1979

By Roderick K. Davey

Introduction in any business, it is essential that we select those alternatives which are not only technically feasible, but will be the most profitable to the business m terms of corporate objectives Some of the studies and activities requiring support of financial analysis to select the alternatives which most closely satisfy the management objectives and technical considerations are as follows 1 ) Cutoff grade determination. 2) Ore reserve estimation. 3) Production forecasts (long- and short-term) for an operating mine, development of a new mine, or expansion of an existing mine. 4) Evaluation of haulage alternatives. 5) Evaluation of equipment.

Jan 1, 1979

By Alan C. Noble

INTRODUCTION Forecasting of metal and mineral prices is a complex and hazardous undertaking. In order to accurately forecast prices, the complexities of both marketing and production must be modeled for each commodity. Even with the most detailed model, the economy may change unexpectedly, invalidating the forecast. Because of these factors, this chapter will not attempt to present specific methods for price estimation. It will, however, review the fundamentals of price forecasting as applied to planning and design of the final pit shell. Recognizing that no price estimate can be exact, sensitivity analysis will be reviewed as an approach to coping with these unknown variations.

Jan 1, 1979

By William C. Peters

"A large proportion of the earth's surface is blanketed by young sedimentary formations and by recent lava flows. How many Guanajuatos lie concealed beneath the rhyolitic capping of the Sierra Madre of Mexico? How many Kirkland Lakes are under the drift cover of the Canadian Shield? How many Wilunas are still hidden by the alluvium of the desert of Western Australia? How many ore deposits lurk underneath the basalt-covered plateaus of the Columbia River region? If erosion at Goldfield, Nevada, had stopped 100 feet higher, probably no ore would have been exposed. How many Goldfields are still awaiting discovery?" --Hugh Exton McKinstry, 1948

Jan 1, 1969

By A. D. Dalvi

Economics, Resources, Environment and Technology are the major driving forces in the base metals industry. However, these factors are intertwined and together will propel the industry in the future. The demand for metals has grown with economic expansion, between 2 to 4 % p.a. The current growth cycle has been driven by economic expansion in China where the demand for base metals has risen from - 7 % of the world demand in the 90's to - 25 % of world demand today, and rising. Base metals are commodities and their demand and price are cyclical. Historically metal prices have declined in constant dollars, forcing the industry to reduce costs, increase productivity and increase the scale of operation for economies of scale. Due to resource depletion and capacity expansion the industry is driven to expand its reserve and resource base. However, in the case of sulphide deposits of copper and nickel it appears to be a losing battle. For nickel the laterites represent a vast source at this time. Their development requires development of new technologies to make these resources economic. Emission reduction is being increasingly mandated in most jurisdictions with all governments enacting progressively more stringent regulations. The industry has been responding with technological innovation. With the Kyoto protocol there is a push to reduce energy intensity in metal production. Technological innovation is driven by all the other factors and is leading to novel ways of doing exploration, mining and processing, that would maximize resource delineation and utilization, reduce costs, increase productivity, reduce energy consumption, maximize asset utilization and reduce environmental affects. Development of alternative technologies such as Pressure Acid Leach of laterite for nickel, bio-leaching, heap leaching, SX-EW etc are being adopted to achieve the aims of the industry.

Jan 1, 2005

Computers and other microprocessor technology lead the world of technological change. Nevertheless, the real advances in the world at large are not necessarily in the computer industry, but in the industries whose economics benefit most by the advances that this computer revolution makes possible. The minerals industry has always been in the forefront of this advance. Technological change in the era preceding the industrial revolution, and the mining industry's part in it, provides an instructive lesson for what is happening today. Strong parallels can be drawn for predicting future advances. With each technological advance allowing more efficient production comes a re-alignment of economics - absolute and relative changes to prices, to quantities demanded, and to other market characteristics. This re-alignment applies not only to the mineral industry, but also to the world at large. Adaptability, rather than technical advancement per se is the key to survival and growth in a changing world. 'Adaptability' as a concept is easy to support. As an operational philosophy it is not so easy to implement. As a goal for planning, it is much harder to quantify. A fixed scenario of a future world may provide helpful guidelines, but a scenario that demands adaptability to an uncertain future world is much less definite. Of course, everyone else in the world is also uncertain about the future, and they are making their plans using different assumptions. This virtually guarantees that our future will turn out different to our expectations. This is in part what Hayek (1945) calls the 'knowledge' problem. Until now, most of the planning and technical research undertaken in the world has ignored this problem. This ignorance is a luxury that we can no longer afford. The paper looks at the history of technological change and highlights the characteristics of successful technological revolutions. 'Adaptability' to unforeseen circumstances is the key to success in this environment. The paper examines the knowledge problem from the perspective of the mineral industry, and suggests a number of directions for maximising the returns from application of computer technology in this important area.

Jan 1, 1995

By Ken Woloschuk

??Owners?Perspective ??Owners?Challenges ??EcoNomics?Delivery Model ??Projects ??Project Outcomes ??Questions ??Balancing the triple bottom line initiative: ?shareholders expectations of economic costs and benefit; ?stakeholders expectations of social and environmental costs and benefits; ?deciding what is sustainable and which design alternatives are the most sustainable. ?? Delivering required project outcomes

May 1, 2008

By Herbert Everest

THE idea of economical production is usually associated with large operations, tonnages, and mines, with even larger capital behind them. Nevertheless many small mines operate in the shadow of large competitors and make a good showing on the capital invested despite larger overhead expenses. For the purpose of this discussion I will divide the cost of production into classes, and specify opposite each the approximate percentage expended thereon: 1. Labor, including miners and company men; 60 to 75 per cent. 2: Development, including all necessary yardage, room turning, crosscuts, etc.; 7 to 12 per cent. 3. Deadwork, covering payment to miners for handling falls, drawslate, or faults, rock work, water, and in general, all nonproductive labor; 3 to 7 per cent. 4. Supplies: mine timbers, oil, brattice material, lumber, cement, and repairs to equipment; 2 to 6 per cent. 5. Expense: management, selling, office, taxes, etc.; 1 to 5 per cent. 6. Depreciation of coal reserves and royalties; 6 to 10 per cent. 7. Depreciation of equipment and interest on capital invested; 1 to 3 per cent. 8. Fuel; ½ to 1 ½ per cent. The labor cost for a small mine is relatively much lower than for a large mine, particularly the sum paid to company men. Idle-pay expense is cut to a minimum; the labor item being larger than all the others together, a saving in labor makes a decided showing on the total cost. The development charges in small and large mines are about the same. There should be a small showing on the Beadwork item in favor of the small mine. The unit cost for supplies is usually small in the small mine. The operator of the small mine finds, owing to a limited tonnage, that the expenses of management, selling, etc., are abnormally high.

Jan 1, 1916

By Herbert A. Everest

Discussion of the paper of HERBERT A. EVEREST presented at the New York meeting, February, 1916, and printed in Bulletin No. 109, January, 1916, pp. 165 to 167. NEWELL G. ALFORD, Earlington, Ky. (communication to the Sec-retary*).-Mr. Everest's statement concerning the economies in a small coal mine has interested me very much. The majority of discussions on coal-mine economy omit the small operator and for this reason Mr. Everest's paper should lead to productive thought. I agree that close concentration of working places and constructive supervision of labor are two items of salvation to the small operator. It is also true that small mines often yield as much profit per capital invested as their larger neighbors. Mr. Everest also says that the small operator has so keen a regard for the inroad on his profits that even one extra day hand is an extravagance not tolerated, and this is rightly so. But, does not this earmark of the small operator in many cases offer a clue to his vital weakness? A credit balance is the acid test of success in any enterprise. With the small operator who owns practically all the capital stock this is particularly significant. He never takes his eyes off the market price and at the same time strains every nerve to cut down his payroll. In several cases I have noted that the resultant close supervision of labor was in fact too close. The "stitch in time" was not applied to the repair of this or that, with a decided increase to the cost of the work when it had to be done at the expense of cutting off the run when orders were on the books.

Jan 5, 1916

Two of the most important economies in coal-washing are in the actual washing of the coal and in a proper lay-out to reduce to a minimum the cost of labour for handling and washing. A guarantee is usually required for turning out a washed coal containing not more than 2% of free dirt and a resulting refuse with not more than 2% of free coal; any plant that gives results within such guarantees can he considered economical, provided that there are no other losses during the washing process. Various drainage arrangements and washery lay-outs are illustrated and discussed with respect to drainage, bunkers, sieves, settling tanks and conveyors and two further points considered: siding accommodation, which may become quite important with washeries of large capacity especially when the coal is brought in railway-wagons; and the irregularity with which the coal arrives. (Paper presented at the Manchester Geological and Mining Society's general meeting held in Manchester, April 11th 1916, with Mr. Leonard R. Fletcher, President, in the chair)

Dec 1, 1916

By M Scoble, R A. Hall

The mining industry has aggressively sought competitiveness through increased productivity and return on investment. A primary strategy has been the pursuit of economies of scale. This has also been dependent upon the implementation of new technology and systems integration. System integration has been accomplished through the implementation of mine dispatch, global positioning and mine wide communication technologies. These technologies have tended to advance at different rates of development and implementation. The result has been that across the industry, and even within companies, mines are at various stages of operational system re-engineering in these areas, driven by improvements in productivity and operational efficiency. Although this strategy has been successful, little effort has been made to analyse change in operational performance in order to understand and model the effects of scale in a quantitative manner. This paper considers the particular impact of equipment scale, together with potential future trends. It then presents and demonstrates a preliminary method to quantify through simulation the anticipated benefits of economies of scale.

Jan 1, 2003

By G. Blackwell, E. Bozorgebrahimi

The trend in open pit mining has been to maintain cost competitiveness through economies of scale, particularly by implementing larger trucks and shovels. This paper considers the potential adverse impact of such scale adjustment, however, on dilution, maintenance, flexibility, and other aspects of operations. It examines the mine production characteristics affected by increased equipment size and attempts to quantify the impact on the overall operation. Reference is made to data from operations that have experienced a variety of equipment size ranges changes over the last decade.

Jan 1, 2003

By C. D. Demond

IN reverberatory smelting, fuel is the chief item of expense, as it commonly is in processes using large percentages of it. Hence the most suitable supply is eagerly sought; that is, the supply which, in the end, yields the greatest net profit. The better grades are not infrequently bought, even at an advanced price, because they are apt to be decidedly more economical. High price, of itself, however, is no merit, for freight is generally the largest part of the cost of fuel, and the nearby supply may yield as high efficiency as that from a greater distance. If a poorer grade is reasonably good, and if its cost is low enough to more than offset the decreased technical efficiency, it is of course the more suitable. Any smelting, operation depends for both efficiency and economy on raising the furnace atmosphere considerably above the "critical" temperature; that is, above the temperature at which smelting is completed. If this temperature is not exceeded, smelting stops, no matter how much coal is burned; and the real value of a fuel depends on the number of degrees that the temperature is continuously kept above this point. For example, if one fuel maintains 2,500° F. and another only 2,100° F., while the "critical" temperature is 2,000° F., the first is worth at least five times as much as the second, although the increase above atmospheric temperature is only one-fifth more in one case than in the other. This "margin of temperature" above the smelting point is much more significant than the total number of heat units developed from the fuel. The case is parallel to that of water flowing from a pipe. The reservoir may contain a billion gallons of water; but, even though the fluid has come to the nozzle, not a drop will run out, where it can be of practical use, unless the level in the reservoir is higher than the nozzle; and the speed and volume of flow depend on how much higher the level is in the reservoir than at this point. If the temperature inn a furnace is not above the critical level there will be no slag to flow over the skimming plate, even though there are enough heat units to bring an unlimited quantity of charge up to the point of slag formation; and just as the value of a water supply for the purpose of putting out a fire depends largely on the effective head, so the difficulties of furnace management

Jan 8, 1914

By Thompson M

The humble gabion basket is to mine development what the light bulb and safety pin are to eir-ryday life. Gabions provide a flexible, easy to assemble and cost efficient solution for "101" mine and civil engineering development applications.In some instances gabion baskets are still efficiently in use after many years of faithful, maintenance-free service. In other situations, the baskets have been demolished or made redundant within days, either having served their temporary usefulness or negligently destroyed by the operator of heavy equipment. Either way, the gabion basket must surely rate among the top 10 cost efficient engineering construction materials.

Jan 1, 1994

By R. E. Hobart

THE development of the Hauto power plant and the claims made by various engineers that electricity was more economical than steam for power purposes in and about the mines; led the Lehigh Coal and Navigation Co., in 1911, to conduct a test to ascertain the consumption of power used by a large steam hoisting engine. The question being one on which no reliable information could be found, and the opinion of various engineers differing to such an extent, it was decided that a test under actual operating conditions was necessary. This was arranged for at one of the collieries. The engine selected was a 30 by 60-in. (76.2 by 152.4-cm.) piston-valve engine of modern type, and comparatively new. The boiler plant from which the hoist received its power was about 600 ft. (182 m.) from the engine, the latter being fed by a 10-in. (25.4-cm.) steam line insulated with magnesia pipe covering. Two batteries of the boiler plant, aggregating 1200 hp., were cut off and fed into a separate steam line leading direct to the hoist engine. Steam auxiliaries, consisting of feed-water pump and blowers, were fed by the boilers in test, and their consumption charged against the hoist. A barrel weighing device was installed, as it was felt that this would be the most accurate way of determining the consumption of water. The fuel, No. 3 buckwheat, was carefully weighed, and every precaution was taken to make the test accurate in every particular. The test was run for 1 week, or a total of 168 hr. A record was kept of the number of trips hoisted or lowered, and continuous indicator cards were taken. One particular set of cards was taken with the hoist operating balanced, and also with the hoist operating with no counterweight other than the empty cage, the coal in the car being weighed. The speed of the hoist was taken by means, of a graphic recording instrument which registered the number of revolutions every 5 sec. From this record, speed-time curves were plotted.

Jan 2, 1918

By B. W. Frazier

IN the numbers of the Engineering and Mining Journal of June 27th and July 11th, 1874, there appeared some very complete statistics of the working of some anthracite blast-furnaces belonging to a large establishment in this country, followed by calculations of the heat requirements of the furnaces, similar to those which have been made for European furnaces by Mr. I. Lowthian Bell, Prof. Gruner, Prof. Akerman and others. To the author of these valuable papers, Mr. John A. Church, of New York, the thanks of American iron metallurgists are due for this attempt (the first, to my knowledge at least), to attack systematically and scientifically the problem of economy of fuel in our anthracite blast-furnaces, by applying the formulas obtained from European practice and from the experiments of European metallurgists, to the determination of the amounts and the modes of distribution of the heat production and absorption in our furnaces. In order to facilitate a comparison of the results thus obtained for the anthracite furnaces in question with those obtained for the best types of European coke furnaces, I have reduced to the same standard of heat units (the product of the ton and the degree Centigrade), and placed side by side, the calculations of the heat requirements of one of the furnaces of the Clarence works, as given by Mr. Bell, of a furnace at Pouzin, on the banks of the Rhone, given by Prof. Gruner, and of the anthracite furnaces for 1869-73, as given -by Mr. Church. Table I shows the different conditions of working of the three furnaces, of which Table II gives the respective heat requirements. I have made this latter table in such a manner as to give for each furnace its heat requirements, both according to the views of Mr. Bell and those of Prof. Gruner. Mr. Bell assumes that all the carbonic acid produced by the decomposition of the carbonate of lime of the charge, is reduced to carbonic oxide by contact with solid carbon ; also, that the carbon of the pig iron is a portion of that deposited in the ore in the upper part of the furnace, by the dissociation of carbonic oxide. Prof. Gruner, on the other hand, assumes that all the carbonic acid of the carbonates of the charge escapes unreduced, and that the carbon deposited in the upper part of the furnace, by the dissocia¬tion of carbonic oxide, is again converted into carbonic oxide or

Jan 1, 1875

By Robert J. Linney

Reserve Mining Co. produces 5 million tons of iron ore pellets per year. The finished product runs about 65.50 pct Fe, with 7.75 to 8.00 pct SiO2. Less than 12 pct arrives at the blast furnaces smaller than 3/8 in. This plant was originally designed to produce 3.75 tons annually-not 5 million. To handle the increased tonnage a fifth fine crushing line was added, and some very minor changes were made.

Jan 9, 1959