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By Jean-Luc Collins

"This new tool can be used as a quick guide f or the assessment of the potential economic wealth of any risky capital project. It does provide an unambiguous recommendation of the type ""go or no go"" to the decision-maker simply by comparing two different ratios profit/investment. One ratio determines the minimum value required to at least break even while the other measures a probable value based on the asymptotic theory of statistical extremes.Its application is briefly illustrated by means of an underground gold mine extension project, an oil sands mine project and a polymetallic open pit project.Once a favourable recommendation has been obtained then a detailed ""cash flow after taxes"" analysis can be carried out for the project.IntroductionMany tools are used in financial decision-making such as the payback period, the discounted cash flow, the internal rate of return and the wealth growth rate (Berry , 1971).These tools are useful and meaningful in evaluating normal projects closely related to regular business where the number of assumptions made is usually very small and where the cost of capita! is usually selected as a discount rate or a hurdle value. In situations where a significant number of assumptions have to be made,two problems can emerge, namely:I. the risk involved is underestimated leading to a potential financial disaster; or2. a good opportunity is lost because the approach used in evaluating the project is too conservative.Each assumption has its own degree of uncertainty and it is well known that combining uncertainties together can lead to a total uncertainty of critical proportion. The easiest way to account for risk is to increase the discount rate or the hurdle value, but this approach alone is quite subjective and can easily lead to the problems described above."

Jan 1, 1993

By Haartti J

Generally when equipment is chosen for solving a dewatering problem, the equipment is based on one of following physical methods: gravity (sedimentation, screens), vacuum (vacuum drum and disc filters, belt filters), pressure (filter presses, hyperbaric filters) and centrifugal forces (centrifuges). The choice of method and type of equipment depends, among other things, on the requirements on the maximum water content allowed in the filter cake and on the particle size distribution and the concentration of solids in the material to be dewatered. All the above-mentioned equipment has its benefits and drawbacks. The conventional vacuum filters of drum or disc type are of a simple construction with few parts to be replaced, but these filters produce a filter cake with a fairly high moisture content, and a dryer is required for additional drying. In most cases the use of pressure makes it possible to produce filter cakes with the desired moisture content but the equipment is of complicated construction, leading to high maintenance costs . In addition to this the consumption of compressed air is high. The capillary filtration to be described in this article is a dewatering method which combines the benefits of both the conventional vacuum disc filter and the filter press. The capillary filter produces low cake moistures with a machine of very simple construction similar to that of the vacuum disc filter.

Jan 1, 1993

Geologists working in mountainous terrain were the first to map and interpret in three dimensions and as a result, made the first contributions to our understanding of mountain building and structural geology. However, geology during the 1900s has been dominantly a two-dimensional exercise in data gathering and interpretation. The standard output of geological surveys and university research has been the geological map and the standard methodology of the mineral explorer has been surface mapping and prospecting. The future will be concerned far more with the third dimension.

Jan 1, 1993

The ERMS Process was developed during four years of testwork by Austpac Gold NL to overcome the severe metallurgical problems of the ilmenite atWestport, in the South Island. These deposits have been known for about one hundred years. They were originally mined for gold, and only later attracted attention as a possible source of titanium minerals.   The resource is of world scale and may exceed 20 million tonnes of contained ilmenite. Similar deposits occur at Barrytown further south and together these areas would constitute an important opportunity for export-oriented mineral development, if a viable beneficiation technology were available. Further processing is essential, as the composition of the ilmenite is well below market specifications.

Jan 1, 1993

By Deepak Malhotra, William F. Riggs, Edward C. Dowling

INTRODUCTION Mining companies are In the business of making an acceptable profit on their Investments, It became obvious in the recent recession that economic profitability/viability depends on being the lowest cost producer In order to compete on a global basis. The burden of achieving this objective falls on the mineral manager. He must strive to produce a salable product in an environmentally acceptable process while continuously Improving the profit margln.(1,2) Metal prices fluctuate on a regular basis. They directly Impact revenue and hence operating philosophy. The mineral engineer needs to develop an optimum operating strategy to meet his overall objectives, One would expect that, In the modem era of complex computer models, it would be easy to develop an economic model to maximize profits and/or cash flow. Discussions with mill managers Indicate that one mine/corporation's optimum operating strategy is not necessarily optimum for another. This paper approaches the problems from basics "Economics 101" and Illustrates the complexity of developing a universal model which can be applicable to all mines. Case examples are used to illustrate the need for better communication to avoid the basic economic fallacy “that optimization of segments leads to optimization of the whole system.” TECHNICAL MODELS Technical models are a prerequisite to the development of economic models because they provide the necessary Input data to these models, The flow of material from a mine through the sale of the finished product is shown In Figure 1. The ore Is mined and milled, and the concentrate can be stored for sale or smelted and refined In-house or at a toll facility. The finished product(s) are held In Inventory until sold either through existing contracts or in the spot market. [ ] Fairly reliable technical models have been developed for mining, milling and smelter operations. Mine plans are developed to provide a good Indication of the relationship between production and cut-off grade. It is easier to change surface mine plans than plans for underground mines. However, there are limits to maximum production that can be achieved with existing equipment. It Is possible that mine benches may not be developed to handle additional equipment, even If It was purchased to enhance production. More often than not, the cut-off grade Is lowered to Increase throughput goals.

Jan 1, 1993

By Yu AB, Azahari HL

Indonesia has the largest coal reserves in the south-east Asian region. According to estimates from the World Energy Confer- ence, it has reserves of 18 billion mt lignite, 4.4 billion mt sub-bituminous coal and 774 million mt bituminous coal (Wyllie,1988). In recent years, substitution of coal for oil in power plants has been the goal of the Indonesian government since proven deposits of coal are about five times as large as national hydrocarbon reserves and most of Indonesia's power stations are still oil fired. Recently a coal fired power plant has been built in Java Barat, which will have a full capacity of about 3000 MW. It is intended to supply coal for this power plant from Bukit Asam mining area (South Sumatra). Coals from Bukit Asam - which are of the lignite or brown coal type - usually contain considerable moisture . It should be noted that reference to moisture in coal pertains to the total moisture content. This is comprised of what is commonly termed as equilibrium moisture and surface moisture. Surface moisture typically affects combustion process as well as pulveriser performance since it possibly influences the relative ease with which coal may be ground. In practice, the surface moisture produces agglomeration of the fines in the pulverising zone and reduces pulveriser drying capacity because of the inability to remove the fines as quickly as they are produced. This agglomeration has also the same effect as coarse coal during the combustion process because the surface area available for the chemical reaction is reduced, hence the combustion efficiency is also reduced. The influence of the moisture of some coals on their grindability (Hardgrove Grindability Index) has been previously correlated by several authors; some of them will be mentioned later. Those correlations, however, could not be immediately applied to any coal since it is still believed that there are other factors which influence the grindability of the coal, such as type and rank of the coal. The relationship between coal moisture content and its grindability has been investigated by Ellmann and Belter (1955). It was found that, for North Dakota lignites, the grindability varied as the moisture content changed. In Britain, Fitton, Hughes and Hurley (1957) stated that, for Bilsthorpe coal, over a wide range of free moisture content (from air-dried to about 30 per cent moisture), the Hardgrove Grindability Index (HGI) remains virtually unchanged. In addition to that, it was suggested that it would be slightly advantageous to dry the coal below its air-dried moisture content (at temperature ¦ 100¦C) to increase the ease with which coal could be ground, especially for low-volatile coal and high-volatile non-caking coal. Furthermore, it was also concluded that a broad relationship appeared between coal rank and Grindability.

Jan 1, 1993

By R. E. Johnson, J. E. Dutrizac, B. R. Palmer

Silver sulphide (acanthite) and lead sulphide (galena) dissolve relatively rapidly in FeCl3 media with the formation of elemental sulphur and soluble silver and lead chlorides. Parabolic kinetics are observed, and the leaching rates are controlled by the outward diffusion of the AgCl and PbCl2 reaction products through the constantly thickening elemental sulphur layer formed on the sulphide. Hence, both leaching rates are strongly dependent on those variables which affect the solubility of AgCl or PbCl2 at the reaction interface. The rates therefore increase with increasing temperature and total chloride ion concentration, but decrease in the presence of elevated concentrations of AgCl or PbCl2. By contrast, neither sulphide is significantly attacked by ferric sulphate media, even at high Eh values. Although the reasons for the refractory behaviour of Ag2S in sulphate media remain unknown, the low rate of PbS attack is attributable to the passivating layer of PbSO4 and elemental sulphur formed on the surface of the galena.

Jan 1, 1993

By Donald A. Bruce

Pin Piles are small diameter, bored, cast-in-place piles used to underpin structures. They were first employed over 40 years ago in Italy, and have been used in the U.S. since the late 1970's. However, it is only in the last few years that their full potential in terms of load holding capacity has been exploited: whereas 100 kip working loads typified former practice, ultimate loads approaching 700 kips have recently been recorded for Pin Piles founded in sand. In order to better understand the actual performance of these piles, fundamental research has been conducted by a consortium of industry and academia. This paper describes the advances made in the laboratory and full scale field testing programs. In particular, the extensive field tests have been conducted in a variety of materials in which different pile configurations have been cyclically tested to failure. By using this test method, the elastic performance of the piles has been examined and so the progressive interfacial debonding phenomenon has been studied. This has led to the development of the Elastic Ratio concept which is proving extremely useful in analyzing and predicting Pin Pile performance. Data are provided from the full scale Test Pile Programs conducted at Mobile, AL and Port Vancouver, WA. Given that Pin Piles are usually installed in areas of low headroom or restricted access, and through difficult, occasionally contaminated soils, the paper also describes key aspects of construction.

Jan 1, 1993

By M. R. Moon

The mine fire at Wilberg Mine in 1984 reached the surface resulting in the failure of the vertical ledge forming the roof and entrance for three main intake portals. The fallen material was covered with a concrete cap to seal the air from the mine. As the mine was recovered and ventilation pressure was placed on seals on the perimeter of the fire area, the concrete capped rubble proved ineffective. Due to the steep and rugged terrain and the inaccessibility to the portals from underground, horizontal holes were drilled into the portal entries and three seals were placed remotely. The seals in conjunction with pressure balancing the seals around the perimeter of the fire area resulted -in the control of the mine fire.

Jan 1, 1993

By Nguyen T. T, Williams A. M, Siauw T. H

During the last 20 years the CSIRO Division of Manufacturing Technology, through its research and development program, has made a substantial contribution towards understanding the pressure die casting process. Much of this work focused on the hot chamber die casting of zinc, where the importance of achieving optimum flow of metal into the die cavity, combined with the correct thermal balance of the tool, is critical to the production of high quality castings. Having developed a fuller understanding of the heat and fluid flow occurring in the pressure die casting process, CSIRO sought to make this information available to the industry in a form where it could be readily used by die casting engineers. This led to the development of DMT-CASTFLOW and DMT-CASTHERM, two unique, PC-based, die design software packages. DMT-CASTFLOW provides facilities for designing running and gating systems while DMT-CASTHERM enables the die designer to optimise the cooling and/or heating requirements of the die. These two packages are now being sold internationally. This paper will describe some of the major features and benefits that can be derived by using DMT-CASTFLOW and DMT-CASTHERM panicularly in the design of zinc pressure die casting dies.

Jan 1, 1993

By Ian McFeat-Smith, Odd G. Askilsrud

Introduction Given the mountainous nature of the local igneous terrain, hard rock tunnelling plays an important role in the development of Hong Kong's infrastructure. In 1990, tenderers for two tunnel projects were encouraged to consider using hard rock TBMs, the territories' first. As a result the 7.5km long, 3.56m diameter Tolo Effluent Tunnel and the 5.3km long, 4.8m diameter Hong Kong Electric Cable Tunnel were excavated by hard rock TBMs. The successful completion of both projects in 1992 should make the TBM method an attractive construction alternative for planned, upcoming projects in Hong Kong. Tunnelling Conditions Tunnelling solutions are frequently adopted in Hong Kong due to the intensity of development, lack of flat landscape and proximity of mountainous terrain to the main centers of population. This is carried out primarily in granites or granitic-type rocks which surround Victoria harbour, and to a lesser extent in the outlying volcanic rocks which include extremely hard tuffs and lavas. Tunnelling will generally take place in granitic rocks, normally about 100-250 MPa in strength, and with an average joint spacing of 0.3m and a quartz content of 30-

Jan 1, 1993

A wide range of models are available to computer process simulators that require a large number of parameters which often are physical measurements, coefficients, calibration factors and functional forms. This makes it intuitively difficult in the majority of cases, to tune the parameters in order to simulate a circuit in agreement with experimental results. Unit calibrators operating on the principle of least squares minimisation of the difference between predicted and observed plant data, are relatively successful when the parameters are unconstrained and independent of each other. In the case of constrained parameters, a set of carefully chosen transforms is presented which map the unconstrained variables being minimised into the constrained parameters required for the model. This technique has been used successfully with the Powell minimisation algorithm and it may also be applied to other unconstrained minimisation methods. Necessary model characteristics are discussed to enable these transforms to be applied to interdependent model parameters such as points of a graph. Examples of the calibration of several unit models using these transforms are presented. KEYWORDS: Calibration, optimisation, transforms, process simulation.

Jan 1, 1993

By Gao H

Based on the author's research and plant practice experience of the last decade, several technological approaches have been developed to increase the recovery of gold and silver associated with sulphides. This paper gives a general discussion of some technological problems encountered in this area in five aspects and introduces the different approaches employed in three typical mineral processing plants to increase recovery of associated gold and silver. On the basis of studying occurrence characteristics of gold and silver minerals in sulphide ores and of determining loss locations of gold and silver on flotation process, a remarkable improvement on the recovery of gold and silver in all these three plants was made by choosing proper grinding fineness, using combined collectors of good selectivity, properly decreasing the grade of main metal concentrates, making reasonable arrangement of the products of main metals, or a combination thereof.

Jan 1, 1993

This paper illustrates the application of numerical modeling methods, in conjunction with limit-equilibrium techniques, to the location of critical slip surfaces in slope-stability problems. Initially, the Spencer slice-based method of analysis is introduced, together with a dynamic-programming algorithm for slip-surface location. This limit-equilibrium method is assessed critically through the use of an illustrative problem. The technique is then extended to locate the critical slip surface for a similar slope, but with more complex constitutive and yield relationships for the material comprising the slope. To this end, the use of the stress field generated from a finite-difference program, together with a dynamic-programming search routine, is presented as an advanced technique of slope-stability analysis for engineers.

Jan 1, 1993

Frank Michael Gowar Egerton was educated at Jeppe High School for Boys and the University of the Witwatersrand, both in Johannesburg. He holds a B.Sc. degree in mining engineering, and has attended numerous courses on management, finance, and industrial relations. In the Executive Development Programme run by the University's Business School in 1981, he was voted the student who had made the greatest contribution to the programme.

Jan 1, 1993

By Cutmore NG

The moisture content of iron ore is important in handling, stockpiling, transport and further processing operations. Typically these ores contain both `free' and `bound' moisture, the latter being moisture that is not removed in a conventional laboratory determination of moisture by air drying at 105¦C, and it is the free moisture that is important in dust control and ore handling. The CSIRO Division of Mineral and Process Engineering has previously developed and commercialised gauges, based on capacitance and microwave techniques, for the on-belt determination of moisture in coal and minerals. However, these gauges determine total moisture, and have a different sensitivity to free and bound moisture in the material analysed. Consequently, the accuracy of determining total or free moisture alone may be significantly affected by variations in the bound moisture content. An investigation has been carried out on the simultaneous determination of free and bound moisture in iron ore fines (

Jan 1, 1993

Modern coal cleaning technologies have allowed coal preparation facilities to become quite efficient at removing sulfur compounds, waste rock and low grade coals from run of mine coal. Up to 50% of the raw mined coal stream may end up as refuse, particularly when the coal originates from longwall mining operations, or is high in partings, rock and impurities. The refuse materials vary from coarse materials removed by physical screening to very fine materials removed by floatation and density separation processes. Coal refuse piles are also known by a variety of other names including "waste dumps", "gob piles" and "slate dumps". The potential hazards of improperly reclaimed refuse include contamination of surface and groundwaters by acidic leachates and runoff, erosion and sedimentation into nearby watersheds, spontaneous combustion, disturbance of topsoil borrow areas, and damage from landslides should large slope failures occur. Many of these problems have been particularly acute for abandoned refuse piles, and modern regulations attempt to minimize the environmental impact of coal refuse disposal operations.

Jan 1, 1993

The adsorption of gold onto activated carbon in iodide solutions has been studied. The adsorption rates were determined as a function of temperature, salt concentration and pH as well as activated carbon concentration. A kinetic model was also developed for the adsorption. The adsorption rate was believed to be controlled by a mixed mechanism of film diffusion and pore diffusion, but the film diffusion had a major contribution to the overall rate. Experimental findings were in good agreement with the model developed. The apparent activation energy was found to be 14.9 kJ/mol.

Jan 1, 1993

By Fuerstenau DW

The flotation of pyrite in ethyl xanthate solutions is presented along with electrokinetic results. The results have been analysed in view of recently published thermodynamic calculations as well as other published data on the pyrite-xanthate system including adsorption and voltarnmetry studies. The flotation response of pyrite in xanthate solutions is characterised by two maxima, one at pH 4 and the other at pH 8-9. The acidic maxima is also associated with a reversal in the electrophoretic mobility of pyrite, probably due to the formation of ferric xanthate on the pyrite surface through chemisorption of xanthate ions while the basic maxima is not associated with major changes in the mobility and flotation at this pH can probably be attributed the adsorption of dixanthogen. It is concluded that there is not sufficient experimental evidence to conclusively attribute the lack of flotation response in solutions at near neutral pH to any particular phenomena, either kinetic or thermodynamic.

Jan 1, 1993

By Jim Morris

This paper will describe the excavation of a 5.4 percent decline at the Montanore Project for Noranda Minerals Corporation. The 5.3 m by 4.9 m tunnel was driven to provide access for the exploration of a major copper-silver deposit. Soft ground and conventional drill-blast mining were used on the 4,270 m tunnel. Ground support consisted of steel sets and concrete in the soft ground and pattern rockbolts providing the majority of the rock support. A special feature of the project was the use of conveyor haulage in conjunction with the drill-blast excavation.

Jan 1, 1993