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By Peter J. Szabo

INTRODUCTION The time period from the detailed feasibility study to the post investment audity usually ranges from three to eight years depending upon the nature of the mining project considered. It is the only after the post investment audit that we know the adequacy of the assumptions made concerning operational risk assessment in the detailed feasibility or acquisition economics. The post investment audit results from numerous mining projects can best be described by a verse by John Greenleaf Whittier's Maaud Muller. It reads "For all sad words of tongue or pen the saddest are these 'It might have been!"' Dissecting the negative results of numerous mining projects we find faulty assumptions concerning markets, geology, capital investment and operational risk assessment. Although in hindsight many of these assumptions could have been considered impossible or impracticle to have forecast with any degree of certainty, we find that refined assumptions concerning operational risk assessment could have been made with only a modicum of additional "Due Diligence". Anyone who invests in a mining property should employ a much higher discount rate of future cash flow, (usually in the minimum range of 25%-30%), than he would expect from such safe investments as Treasury Bills or high grade Utility Bonds. The nature of this steep discount translates to a large uncertainty concerning the timing and actualization of assumptions contained in the detailed feasibility study. We must remember that when a project gets beyond 20 years, any contribution to the value of the project of cash flow is minimal due to the nature of the discounting process. Thus for each full or partial day lost in the development or early operation stage of a project, the financial impact will be greater than similar lost days later on in the project. Adequate operational risk assissment is particularly critical when bidding on competitive tenders for coal deposists in remote locations such as the Bowen Basin in Queensland, Australia. Because of the market attractiveness of these coal deposits for supplying end users in the Far East, Middle East and Europe, state governments require competitive tender biddings via the Authority to Prospect process. Front end bonuses and super royalty payments must be commited before the actual mining conditions are known. Time to submit firm offers from the actual request for proposal vary from 90 to 120 days. Thus any operational risk assessment must be detailed, realistic and reflective of the actual project. When one searches the literature, one finds limited qualitative data on operational risk assessment in valuation papers. Usually this facet of valuation takes a secondary role to such areas as reserves, markets, and environmental considerations. When one comes to the question of operational risk assessment more often than not one finds the use of "rules-of-thumb", such as tons per man shift, average production, average seam height, etc., are used to forecast results on which banks and other financial institutions are required to make investment decisions. Because of the extremely competitive environment of the 1970's and 1980's numerous financial institutions approved loans without adequate "Due Diligence", and are currently paying a steep price in terms of non performing loans and charge offs. One must always remember that each operation is unique with its own characteristic

Jan 1, 1985

By J Isarua, R Mabiria

The Ok Tedi copper and gold project, located in the Western Province of Papua New Guinea, commenced operations in 1983. The open cut mine has undergone several significant transformations throughout its project life including changes of ownership, mine life extensions and varying production performance profiles. As of today, the Ok Tedi Mine is a 100 per cent PNG owned company (67 per cent State and 33 per cent Western Province and Communities) and has a life-ofmine plan extending out to about 2032.

May 5, 2022

By McGuckin P. H, Logan A. S

The BHP Minerals' Cannington silver-lead-zinc deposit is located approximately 190 km south-east of Mount Isa. The deposit, is hosted by Proterozoic rocks beneath a thin cover of younger sediments, and contains a total estimated resource of 45.3 million tonnes at 11.1 per cent lead, 4.4 per cent zinc and 500 g/t silver. The deposit is separated by faulting to form a shallow, lower grade Northern Zone and a deeper, higher grade Southern Zone (Roche, 1994). Contract development of an exploration decline to test mineralisation in the Southern Zone commenced with the excavation of a boxcut in August 1993. The complex variably deformed Proterozoic sequence interpreted from drill core and intersected in the exploration decline has required a high level of practical rock mechanics input to achieve: ò appropriate support designs, ò a high quality of installation, and ò required development advance schedules. The Norwegian Tunnelling Index (Q System) in conjunction with regular face mapping is used as an operating tool to assist in decision making for ground support. Line mapping, discontinuity analysis and wedge assessments are conducted routinely to optimise ground support requirements in the decline, intersections and all other underground excavations. Throughout the project, an emphasis has been placed on developing a strong working relationship with the contractor to achieve quality assurance program targets.

Jan 1, 1995

By George B. Clark

COMMERCIAL strip mining of coal was first begun in the state of Illinois in 1911.1 The annual tonnage of coal produced from coal strip mines in the state was very small until 1924, when the strip mines shipped 1.68 pet of the total state shipping mine tonnage. Since then, strip mines have gradually come into their own by producing a sizable percentage of the coal produced in the state. Table 1 shows the coal tonnage shipped from both underground and strip coal mines in the state of Illinois for selected years. The table illustrates the major role that strip mines play in the state's coal industry. Today, strip mining is generally conducted in areas where the coal seams lie so close to the surface of earth that a stripping method of mining the coal seam is cheaper than an underground method. Strip mining not only recovers 100 pct of the coal deposit, but may also be used as a method of mining large acreages of coal abandoned by the closing of underground mines.

Jan 1, 1949

By R. Bonifaz, R. Subiabre

The Chagres Smelter, part of the Anglo American plc group, situated 80 Km north of Santiago in Chile, completed a series of operational improvement in 2005 resulting in an optimum capacity in its operational units. At present the Chagres Smelter has developed an operational strategy which seeks to reduce bottle-necks in the production process. In this way we have managed to lower operational cost, decrease energy consumption and maximize the capacity of the Acid, Oxygen, and Smelting, Converting, Refining and Casting units. A constant review of international benchmarks together with continuous staff improvement and the latest smelter technology have combined to place Chagres among the finest smelting works in the world. In response to environmental challenges, we have studied various options for investment that will yield a suitably profitable business to benefit both Anglo American and Chile. The most relevant technical indicators are: energy consumption=6,3 GJ/ton fine copper (1st in the world), intensity of smelting rate in Flash Smelting unit of 6,900 ton of copper concentrate/m2 of furnace area (1st in the world) and to be one of the top five smelters in achieving the lowest direct cash cost .

Jan 1, 2007

By R. Bonifaz

The Chagres Smelter, part of the Anglo American plc group situated 80 Km north of Santiago in Chile, completed a series of operational improvement in 2005 resulting in an optimum capacity in its operational units. At present the Chagres Smelter has developed an operational strategy which seeks to reduce bottle-necks in the production process. In this way we have managed to lower operational cost, decrease energy consumption and maximize the capacity of the Acid, Oxygen, and Smelting, Converting, Refining and Casting units. A constant application of international benchmarks together with continuous staff improvement and the latest smelter technology have combined to place Chagres among the finest smelting works in the world. In response to environmental challenges, we have studying various options for investment suitable for a profitable business of benefits to both Anglo American and Chile as a whole. The most relevant technical indicators are the figures : Energy consumption less than 6,3 GJ/ton fine copper, Intensity of smelting rate in Flash Smelting unit of 6900 ton of copper concentrate/m2 settler of furnace area and be one of the top five smelter in direct cash cost .

Jan 1, 2007

By W. F. Mullen

WITH few exceptions, unit operations in the Pennsylvania slate industry in 1950 did not differ appreciably from production methods described by Behre1 and Bowles 2-4 several decades ago. Many traditionally picturesque but relatively inefficient hand operations continued to contribute to high operating costs in an industry in which the margin of profit, for various reasons, was admittedly low. As part of a general program in which the Pennsylvania State College has been assisting the slate industry to solve some of its problems, time and method studies were used in an effort to determine the bottlenecks of production flow. The results are as applicable to other stone industries as they are to slate.

Jan 12, 1951

By John J. Sammarco

Computer-related accidents have caused injuries and fatalities in mining as well as other industries. Normal accident theory (NAT) explains that some accidents are inevitable because of system complexity. NAT is a classic argument in organizational sociology although it has been criticized as having imprecise definitions and lacking criteria for quantifying complexity. These limitations are addressed by a unique approach that recasts this organizational theory into an engineering-based methodology to quantify NAT complexities of computer-based systems. In this approach complexity is categorized as external or internal. External complexity is defined by the external behavior of a system, and is quantified by these dependent variables: system predictability, observability, and usability. Dependent variable data contain the perceptions of 32 subjects running simulations of a system. The system?s internal complexity is characterized by modeling system-level requirements with the software cost reduction (SCR) formal method. Model attributes are quantified using 15 graph-theoretical metrics?the independent variables. Five of 15 metrics are correlated with the dependent variables as evidenced by structure correlations exceeding 0.25, with standard errors <0.10 and a 95% confidence interval. The results also show that the system predictability, observability, and usability decreased as NAT complexities increased. This research takes a step forward in operationalizing NAT for computerized systems. The research benefits mining and other industries as well.

Jan 1, 2005

By T. Cantwell

Techniques useful in operations, analysis are applied to the problem of planning an exploration program. The model used treats mineral exploration as a Markov process, and maximization of gain is the criteria determining the optimum program. The mathematical description of the model and the optimization are first worked out. Application of the mathematics to several simple examples is given. Finally, comparison of the data necessary to use this operations analysis with the available data shows that the method can only be a guide to planning an exploration program.

Jan 1, 1962

By Katom M

Each of the two 32 feet diameter Semi Autogeneous Grinding (SAG) mills at Ok Tedi&apos;s copper and gold concentrator was treating at best 1500 tph at about 65 per cent mill availability in 1988. The process was effectively unmeasured and used manu

Jan 1, 1997

By G. Bridgstock, S. S. Forbes, E. M. Elkin

"OPERATIONS at Canadian Cop-per Refiners Limited, since the refinery was established in 1931, have been described in previous papers ( 1,2). Since then the refinery has treated the entire copper output of Noranda Mines Limited and Hudson Bay Mining & Smelting Company Limited. With the commencement of production in 1956 at Gaspe Copper Mines Limited, this copper has also been refined. From the start of operations to the end of 1958, the following had been refined: copper, silver, gold, selenium and tellurium.Construction of new buildings and additions to other buildings have been needed to handle increased receipts. The refining capacity has been increased from 112,000 tons of copper per year to a total of 236,000 tons per year.The refinery is located at Mont-real East, Quebec, close to railway and highway facilities. Incoming materials and shipments, with some small exceptions, are handled by rail. Some finished products are sl1ipped by industrial flatcar to the adjoining plants of Canada Wire & Cable Company Limited and Noranda Copper & Brass Limited."

Jan 1, 1960

By John Plecash

This paper comprises a general outline of all of the developments, including the history, geology, mining, milling, power and transportation installations, at the gold mining operation of La Luz Mines Limited and the copper mining operation of its wholly-owned subsidiary, Rosita Mines Limited, both located in north-central Nicaragua. The low-grade, gold-bearing ore-bodies of La Luz Mines, contained in highly fractured and folded Lower Cretaceous sedimentary rocks, were from 1909 to 1928, mined and treated by primitive methods by the La Luz and Los Angeles Mining Company. The abandoned property was acquired by La Luz Mines Limited in 1936, and was equipped with modern machinery and put into production in 1939. Between 1939 and 1948, the daily rate of production was in-creased from 300 tons per day to 2,-000 ton per day. The ore reserves available for open-pit mining were depleted in 1954. Since then, the entire production has come from under-ground operations.

Jan 1, 1963

The, Mount Charlotte orebody contains&apos; 5,000 tons per vertical foot-Of&apos;quartz gold ore at an estimated ore reserve grade of )just &apos;over&apos; 3 &apos;dwt. per ton, Production from it i.s plan ned at a rate of 1,000 tons per working day during 1964.

Jan 1, 1964

Operations of the new copper smelter at Mount Isa commenced on the 6th February, 1953. Prior to this date a paper by R. V. Anderson (1953) outlined the smelter layout, proposed operation and expected performance.Nominally a 50-ton per day plant, output is currently at the rate of 85 long tons per day. In the first 3t years, of operation to 30th June, 1956, &apos;71,339 tons of blister copper were produced. Operation has been stabilized&apos; and a number of modifications to plant and operation have been made. This paper reviews the progress made to date.GENERAL LAYOUT AND EQUIPMENTThe general layout and equipment follows well-established practice as study of Figs. 1 to 4, and Appendix II will show. This diagrammatic representation of layout (Fig. 1) and flow sheet (Fig. 2) is intended for the purpose of brevity to take the place of a detailed plant description.Choice of site for the smelter was limited by the necessity for close proximity of the waste heat boilers to the powerhouse.Much excavation was necessary before foundation work commenced, but the plant is compact and further expansion is possible.CHARGE MAKE-UPRoaster charge initially comprised concentrates, purchased ores, revert materials, mine sulphide ore and barren sand. As purchased ore receipts increased and as domestic black rock oxidized ore became available, the latter two fluxes were eliminated from the charge. Fluxes at minus i-in. sizing are trucked from crushing plant or stockpile by motor lorries. Filtered mill concentrates are dropped from an overhead conveyor on to the storage patio floor adj acent to the two concentrate bins.

Jan 1, 1957

By The Staff

THE gold mining industry in Canada is today the most important stabilizing influence in the country. This factor was brought out particularly during the &apos;depression&apos; years, when steady employment was given to men in that industry and the monies spent in supplies and power in turn benefited the country to a great extent. At the same time, a commodity was produced which was saleable in any market of the world, thus maintaining Canada&apos;s credit in foreign markets and keeping her trade balances equalized. We have a vast area known as the Precambrian Shield. The agricultural possibilities of this area are practically negligible and it will depend entirely upon the mineral and forest resources to make this district an economic factor in the life of Canada. To date, from the mineral point of view, we have been highly successful. There are, however, still vast areas to be explored. It is tedious and laborious work, entailing great individual hard-ships and the expenditure of much energy and money. During my thirty years&apos; experience in the search for, and operating of, gold mines, I have come to the conclusion that although individuals may give all their time, energy, and money, Governmental assistance is absolutely necessary in the development of hydro-electric power sites and roads. The Governments, to date, have given splendid co-operation along these lines, but in order that this great industry may go ahead they should continue their good work and, if possible, give greater relief from taxation to mines situated at a considerable distance from the railway.

Jan 1, 1938

By Moenster J. A., M. J. Sankovitch

Doe Run's Buick Smelter was converted from a primary lead smelter to a secondary lead smelter in 1991. The recycling facility was designed to produce 60,000 tons of refined lead per year from 110,000 tons of spent starting-lighting-ignition (SLI) batteries and 10,000 tons of lead contained in drosses and scrap. Since commissioning, Buick's refined lead output has steadily increased to exceed 120,000 tons for 1999. The production gains have been the result of continuous process improvements, empowerment of the workforee, and development of additional scrap lead streams. The production gains were accomplished while setting industry standards for employee safety, reducing plant environmental emissions and employee blood leads, achieving ISO 9002 certification, and expanding product lines to meet customer requirements. This paper highlights Buick's major accomplishments through the 1990's.

Jan 1, 2000

By N. D. Schupp

The Doe Run Company's Herculaneum, Missouri lead smelter has existed in continuous operation since 1892. Throughout the history of the plant extensive developments have been made to improve throughput, increase productivity, decrease operational costs and improve technology, while remaining an environmentally responsible producer of high quality primary lead in the international market. This paper provides an overview of the Herculaneum smelter, focusing on the most recent configuration of the operations. The paper includes discussion on all the aspects of primary lead production at the Herculaneum smelter.

Jan 1, 2000

By John G. Reid

Geologists, employed by the Australian Company, Metals Exploration Limited, discovered nickel laterite enrichment at Greenvale in 1967. A joint venture was arranged with the Freeport Minerals Company who had gained early experience with nickel laterite ores when building and operating the Nicaro and Moa Bay Treatment Plants in Cuba. A 5 tonne/day Pilot Plant at the Freeport research facilities at Belle Chasse, Louisiana, verified the amenability of the ore to treatment by the reduction and ammonia-ammonium carbonate leaching process used at Nicaro. A 5 800 tonne/day Treatment Plant was constructed on the coast at Yabulu, North Queensland. This paper describes the ore body, the mining operation and the stages of treatment required to produce nickel oxide products and a mixed nickel/cobalt sulphide product at Yabulu.

Jan 1, 1979

By L. J. O’Connor

Mining activities in the small historic mining camp of La Colorada in the state of Sonora, Mexico can be traced back to the mid eighteenth century when gold was discovered and exploited by Jesuit missionaries. Following one hundred and twenty six years of activity, the mines were shut down due to the Mexican revolution. Very little activity took place until 1989 when a company, Minera Las Cuevas, spent US $350,000.00 in mapping and sampling and diamond and reverse circulation drilling over a period of three years. During 1991 HRC Development Corporation entered into a joint venture agreement with Minerales de Sotula, S.A. de C.V. that allowed an earn in of 70% interest. Exploraciones Eldorado, S.A. de C.V. and it&apos;s parent company, Eldorado Corporation Ltd. were subsequently incorporated by HRC to hold the La Colorada project. Property evaluation ensued and a thirty thousand tonne Run of Mine test heap was leached from August of 1992 until May of 1993. Full scale commercial production commenced in late November, 1993 and the first gold/silver doré bar was poured early in January of 1994. Pre-production costs were a total of approximately four million dollars U.S. During the fall of 1994 a buyout of the venture partners&apos; interest gave Eldorado one hundred percent ownership of the property. The first two years of mining have utilized a local contract mining fleet and have placed nearly two million tonnes of ore on a run of mine heap. Low cost ripping and dozing mining methods have been employed in conjunction with drip irrigation leaching. An initial pilot plant carbon adsorption circuit was supplemented with a Merrill Crowe recovery circuit in June of 1994 and was completely replaced with the construction of a second Merrill Crowe circuit in July of 1995. Approximately fifty thousand troy ounces of gold and over one hundred thirty thousand ounces of silver will have been poured by year end 1995. Ongoing, on site exploration continues to increase mineable reserves in the known deposits. A feasibility study is ongoing concurrent with the operations and will provide the basis for future elevated production levels. Exploraciones Eldorado continues to explore outward from the current operations and several anomalous outlying zones may play part to the long term economic growth of the company in Mexico.

Jan 1, 1996

By Hermsdorf, Richard P. E.

AMONG the newer lead smelting and refining plants of the country is that of the United States Metals Refining Co., at Carteret, N. J. Not only is the technical practice here modern and efficient, but exceptional care is taken to assure healthful operating conditions for the employees. One large building houses the entire department, which includes, as its chief units, one reverberatory smelting furnace, one blast furnace, two softening furnaces, one utility reverberatory furnace, two Faber du Faur retorts, five 120-ton kettles, three 60-ton antimouial lead kettles, and one 5-ton kettle for experimental purposes. There is a 10-ton overhead crane in the kettle aisle, which is also used for shipping lead. Other auxiliary equipment is referred to in the outline of operations. A general plan of the plant is shown in Fig. 2, and a general view in Fig. 1. Primary smelting operations are conducted in a 30 by 11-ft. reverberatory furnace with bottom, roof, and upper walls of clay brick, magnesite

Jan 1, 1934