Search Documents

By Christopher R. Lattanzi

"Discounted cash flow analysis provides a means of relating the magnitude of expected future cash profits to the magnitude of the initial cash investment required to purchase an asset or to develop it for commercial production. The objectives of discounted cash flow analysis are to determine:.. The net present value of a stream of expected future cash revenues and expenditures... The rate of return which the expected future cash flows will yield on a given level of initial cash investment.In the case of mineral properties, discounted cash flow analysis is generally accepted as the preferred method of valuation, whenever sufficient data are available to permit its reasoned application. Sufficient data are required to support estimation of all of the individual elements of cash revenue and cash expenditure which will be associated with the development and operation of the property, up to the end of its estimated life. It is the accuracy of these input estimates which determines the validity of the resulting determinations of profitability and rate of return on invested capital.In undertaking any discounted cash flow analysis, it is important to recognize certain fundamental attributes of the mining industty:.. The basis of any mineral development is the existence of an ore reserve... Costs are determined by the number of tonnes mined and processed, while revenues are determined by the number of pounds or ounces of metal produced. The two are related by the recovered grade of the ore... Profit is typically more sensitive to changes in revenue than it is to changes in cost... Commodity price is a principal determinant of revenue, but it is also the factor with which is associated the greatest level of financial risk.In the end, of all of the factors which must be considered in the discounted cash flow valuation of a mineral property, the most significant are the reliability of the reserve estimate, particularly with respect to recovered grade, the price at which the product is to be sold, and the risk of not maintaining the projected level of price."

Jan 1, 2003

"“Developed by the CIM Sub-Committee, these guidelines are an addition to Guidelines Specific to Particular Commodities which are appended to the CIM Estimation of Mineral Resources and Mineral Reserves Best Practice Guidelines.Rock Hosted DiamondsJennifer Burgess, Consultant, Sechelt, BCNeil Buxton, WWW International Diamond Consultants Ltd.Darren Dyck, BHP Billiton Diamonds Inc., Kelowna, BCMartinus Oosterveld, (De Beers retired), Plettenberg Bay, South AfricaRichard Routledge, Scott Wilson Roscoe Postle Associates Inc., Toronto, ONMalcom Thurston, De Beers Canada, Toronto, ONPreambleDiamonds are produced commercially from intrusive rock, consisting of kimberlite and lamproite, and from alluvial and marine placer deposits. These guidelines apply to rock deposits; the term ""diamonds"" herein refers to natural diamonds; ""diamond deposits"" refers to diamonds hosted in kimberlite and lamproite rocks; and ""diamonds"" and ""stones"" are interchangeable.The CIM Best Practices General Guidelines for other commodities are also applicable to diamond deposits, however, because of diamond's distinguishing aspects, additional guidelines are appropriate as published in the CIM Guidelines for the Reporting of Diamond Exploration Results and these Best Practice Guidelines for estimating Mineral Resources and Mineral Reserves (MRMR).Diamonds differ from other minerals. Firstly, they occur as discrete particles in concentrations as low as parts per billion. Secondly, the release of diamonds from the kimberlite or lamproite host rock is a function of the excavation and treatment process. Thirdly, the value of diamonds varies from deposit to deposit and varies with stone size within a given deposit. These aspects must be considered when sampling, evaluating the resource and establishing the reserve of a depositThe product from metallic mineral mines is generally quite liquid in terms of number of potential buyers, and the commodity prices and price structure are published daily. In contrast, most diamonds are valued in the overall market context only 10 times a year in ""sights"" and the marketing of diamonds is dominated by a small number of organizations. Diamond valuation is more akin to industrial minerals valuation in that process recovery is important at the ""assay stage"", the impact on price of new goods arriving on the market must be evaluated, and product quality must be acceptable to potential buyers."

Jan 1, 2003

Exploring for deep shallow dipping orebodies can be very expensive and very difficult. Surface exploration is often not an option and obtaining the best location for underground drilling can cause production delays if drilling is carried out from development headings. The Otter/Juan mine has been in production for approximately 34 years. All of the production is now sourced from more than 1000 metres below the surface from an area known as the Edwards Lode. The orebody is shallow dipping and open at depth. Exploration drilling has been performed from decline stockpiles and from hangingwall drill drives. Drilling from footwall positions (eg decline stockpiles) into shallow dipping orebodies can often produce intersections which are unusually thick thus leading to optimistic resource figures. The decision to develop a dedicated hangingwall drilling position can vastly improve the quality of the data used to generate an orebody model. In 1997 a new extension to the Edwards Lode was discovered and named the æFÆ surface. In 1999 a resource calculation was performed using data obtained from drilling that was carried out from decline stockpiles. In 2002 a dedicated drill drive was developed into the hangingwall of the æFÆ surface to obtain better data to verify the previous resource calculation. For this case study obtaining more representative data reduced the resource estimate by 66 per cent. This information was obtained early enough to allow for alteration to the mine plan and without loss of capital.

Jan 1, 2003

The present contribution examines the main components of a sustainable land reclamation program applicable to surface coal mines and the environmental threats that hinder the transition to sustainable land management. It compares the main ?waste streams? that cause adverse impacts to the environment with the so-called ?best available technologies and managing practices? that are proposed by organisations with high expertise in land management. Also, it addresses the environmental and socio-economic indicators that should be monitored in order to assess the results of the land management program and to allow remedial actions and continuous improvement. Based on the Greek lignite mines experience in land reclamation, this paper presents the common weaknesses of the land management programmes and proposes an improved communication scheme that moves things towards sustainability. This scheme is based on a more rational exploitation of the available economic resources and a constructive dialog between the mining companies, the local authorities, the state institutions and other stakeholders.

Jan 1, 2003

By D. Papazoglou

This work was undertaken to investigate the thermodynamic and kinetic feasibility of using hot sulfur dioxide bearing gases from smelting processes to selectively sulfate the nickel in nickel laterite ores for subsequent extraction in water. The environmental benefits ofthis approach, as opposed to releasing the gas to the atmosphere, and the economic benefit of directly utilizing the S02 rather than converting it to sulfuric acid are strong drivers for such a process. A thermodynamic analysis indicated that selective sulfation of the nickel could be feasible under appropriate conditions and these were explored through a series of laboratory scale experiments. Laterite samples were reacted at temperatures between 500 and 800°C with an equilibrated mixture of sulfur dioxide, oxygen and nitrogen in a fixed bed reactor. Tests were conducted on saprolitic ore from Bulong, Western Australia, limonitic ore from New Caledonia and garnieritic ore from Indonesia. Nickel extractions were highest from the limonite and relatively low from the other ores. The maximum selective extraction of nickel from the limonite in a single stage sulfation was 73%. Sulfation of other elements present in the laterites was also examined. A two-stage process was also identified which involved sulfation using a strong sulfation potential followed by weaker sulfation potential to attempt to convert ferric sulfate formed in the first stage to ferric oxide. This increased the extraction for the limonite ore to around 84% Ni, 95% Co and 2% Fe. Direct sulfation of laterite could be feasible in locations where sulfide smelting or roasting operations are relatively close to laterite deposits.

Jan 1, 2003

By R Neivandt, Kane, M O&apos, D Browne

Newmont Australia is the operator of the Mt Leyshon mine near Charters Towers, Queensland. Mt Leyshon is an open cut gold mine, which processed on average 5.0 Mt of ore and produced up to 250 000 ounces of gold per year. Mining was completed in early-2001, followed by treatment of low-grade ore stockpiles for a further 12 months. Approximately 250 ha of waste rock dumps have been rehabilitated. Rehabilitation of two of the three tailings storage facilities (TSF) has been completed and the third is in progress. A field performance monitoring system that includes an automated meteorological station, large-scale lysimeters (measurement of net percolation), and in situ moisture content sensors (measurement of moisture storage changes in the cover material) were installed to monitoring performance of the cover systems placed on the waste storage facilities. This paper focuses on the installation and calibration of the in situ moisture monitoring system. The moisture monitoring system provides automated detailed in situ volumetric water content data above and within the large-scale lysimeters. A portable unit that provides spatial in situ moisture content measurements at additional locations on the cover system is also utilised. The paper will focus on installation and calibration of the in situ water content monitoring instrument in the waste rock, coarse cover material, and fine textured cover materials of the tailings facility and waste rock dump cover systems.

Jan 1, 2003

By R Dunne, S Hart, G Levay

While water represents a major proportion of the mineral pulp processed in flotation circuits, relatively little research effort has been committed to understanding and controlling the influence of water quality on this process. Historically, this probably stems from the perception of water as an inert transport medium. However, the changing attitude towards water as a valuable resource, has given impetus to increasing requirements to use relatively impure make-up water supplies such as treated effluents and a high proportion of internally recycled water. In turn, this has resulted in the need for a more detailed focus on process water quality and its control to minimise adverse effects on sulfide flotation. Along these lines, prior to commissioning of a new concentrator at their Cadia Hill Gold Mine, Newcrest Mining was proactive in examining potential water sources and the influence of water quality on flotation of their copper/gold bearing ore. An extensive water quality survey of all major potential water supplies to the concentrator was undertaken. The flotation performance of the Cadia ore in each of these waters was investigated on a laboratory scale. The results of these studies identified that water quality could indeed have a significant influence on the flotation process. Since operations at the Cadia Hill concentrator began, water quality surveys of both make-up water sources and recycled flotation circuit waters have been carried out on a regular basis. By doing this, a database of water quality has been established which can be compared with plant performance. In parallel with the water quality surveys, a series of laboratory flotation tests have been conducted using a standard ore and waters from various streams to monitor changes in flotation performance as a function of water quality. These tests have indicated that certain water types may have a significant influence on plant performance. More research is required to better understand the impact of water quality on sulfide flotation. This understanding will help operators to minimise adverse effects, while maintaining the best utilisation of available water resources.

Jan 1, 2003

By David S. Cronan

The traditional method of deep sea manganese nodule exploration is to conduct grid survey and sampling on successively finer scales until a suitable deposit has been delineated. Clearly this is both time consuming and ultimately self-defeating if large areas of the ocean floor are to be explored on a human timescale. A conceptual deductive approach would be preferable if one could be found, as it would aim to outline areas of potentially economic nodules on the basis of easily measurable oceanographic parameters. An attempt to achieve this aim in the Central Pacific is outlined below. Nodule Distribution in the Central Pacific Ocean Maps of ore grade nodules in the Central Pacific show that they are confined to two zones trending roughly east-west which are well separated in the eastern Pacific but which tend to converge towards 170-180ºW. They follow the isolines of intermediate biological productivity in the surface waters, strongly suggestive of a biological control on their distribution. Within these zones the nodules preferentially occupy basin areas. Thus they are found in the Penrhyn Basin, Tokelau Basin, Central Pacific Basin, Clarion Clipperton Zone and Tiki Basin. Nodules in all these areas have features in common and are thought to have obtained their distinctive composition by similar processes.

Jan 1, 2003

By Mary Cunningham

The EPA and DOE have collaborated on a series of studies to evaluate the effectiveness of treatment technologies at stabilizing bulk elemental mercury and wastes containing high concentrations (i.e., with greater than 260 mglkg total mercury) and multiple forms of mercury. The data from these treatment demonstrations are intended to help EPA to determine if regulatory revisions to allow a stabilization alternative for high-mercury subcategory wastes are warranted. In addition to mercury-contaminated wastes, the disposal of bulk elemental mercury is of concern because of the excess quantity of mercury in the Defense Logistics Agency (DLA) stockpile, as well as other potential sources of excess elemental mercury. The studies evaluated the effectiveness of several technologies at: I) stabilization of mercury in a "hard-to-treat" matrix; and 2) conversion of elemental mercury into a stable waste form for disposal. A surrogate waste was designed for the study on high-mercury wastes, which included an organic form of mercury, elemental mercury, and several mercury salts in an inorganic matrix. The surrogate waste and the bulk elemental mercury were treated by the vendors, and the treated waste forms evaluated for mercury Icachability, using both the TCLP and an automated, constant-pH leaching protocol. Constant pH leaching was conducted at pH 2,4,6,8 10 and 12 for 14 days at each pH. The leaching data demonstrate that the stability of the mercury in three treated waste forms varies widely across the pH range tested. Clearly, the stability of mercury in these treated waste forms will be highly dependant on the disposal conditions. The combination of site-specific disposal conditions and appropriate treatment technology must be considered as decisions are made about disposal of high-mercury wastes.

Jan 1, 2003

By Varadarajan Seshadri

The performance of mould fluxes in satisfying its quality requirements can have a significant effect on the efficiency of the continuous casting process and on the surface quality of the products. This performance is affected by various parameters including the characteristics of the mould fluxes, the quality of the steel being cast and the operational conditions of the caster. The extremely complex relationships involving the parameters mentioned above make it very difficult to have simple criteria for selecting mould fluxes for casting a certain grade of steel in a continuous casting machine. These difficulties led steelmakers and mould flux suppliers to select mould fluxes based mainly on plant trials. In the present work, a software to help in the analysis and development of mould fluxes for continuous casting was developed. This software includes several models for prediction of mould flux viscosity and consumption. A mathematical model was also used to predict the heat flux through the mould flux. The proposed methodology was applied to continuous casting of crack sensitive steels. Some of the results given by this software are presented, discussed and compared to plant data.

Jan 1, 2003

By Rodney J. Ishak

The reduction of Mn3O4 to MnO has been investigated in a thermobalance apparatus. The charge was composed of manganese ore (decomposed by heating/calcination or pre-reduction to mainly Mn304) and coke. The material was charged to a crucible, which was suspended in the balance. CO-gas was distributed through a grid in the bottom of the crucible. Two sizes of ores were used; 2.4-4.8 mm and 6.7-9.5 mm. Coke particles were in the size range 4.8-6.7 mm. Experiments were conducted in the 900-1100°C temperature range. The composition of the product gas was monitored continuously. External mass transport between bulk gas and particle surface does not seem to limit the rate of reduction. Assuming that both diffusion through product layer and chemical reaction at the interface between MnO and Mn304 are rate controlling, the data was tried both in a shrinking core model and in a grain model using regression. The grain model gives the best physical description of the process, because the reactant is in fact a porous medium. With this model the effective diffusivity was calculated to be in the 1.5-6.10-5 m2/s range. The pore size was mainly between 0.1 and 10 um.

Jan 1, 2003

By A. Valenzuela

During the last years, Chile has been the largest copper producer, either as concentrates or cathodes. Copper obtained via pyrometallurgy is produced by seven smelters, which have carried out modernization plans to increase smelting capacity or to achieve environmental regulations established in the Chilean legislation. Thus, the present work updates technological innovations in smelters, environmental regulations and presents solutions for S02 handling, particulate matter and arsenic. Also, the authors emphasize the important role of CODELCO Chile, the most important state-owned copper company, in developing technologies such as El Teniente Converter and El Teniente Slag Cleaning Furnace.

Jan 1, 2003

By B. J. Jody

This paper describes a one-step thennal-treatment process, developed at Argonne National Laboratory, to remove all organic contaminants from the glass-fiber waste that is generated during the glass-fonning process. The recovcred glass fibers can then be recycled into new glass fibers or new glass products without adversely impacting the operations of the glass industry or the quality of its products. Our process involves shredding the waste to a manageable size and then processing it at temperatures below its melting point to remove the polymeric-coating layer. The glass industry generates more than 60,000 tons of glass-manufacturing waste annually in the glass-forming process alone. Recycling of this waste stream can keep this non-biodegradable waste out of the landfills. In addition, use of recycled glass lowers energy costs, by an average of about $5 per ton as compared to using virgin raw materials to make virgin glass fibers. This process will also reduce the emission of C02 by 17,400 tons a year and it will also reduce the emission of nitrogen oxides. Economic analysis of our process shows a potential payback of less than 2 years.

Jan 1, 2003

By S. K. Kawatra, S. J. Ripke

Iron ore pellets use bentonite clay as binder at dosages from 0.5to 1.0% (10 to 20 pounds per ton) of moist iron ore concentrate. Bentonite is typically shipped hundreds of miles from Wyoming to the Lake Superior iron ore district. It is therefore best to know how effective a bentonite will be before it is shipped and used to bind concentrate into pellets. Current tests of bentonite effectiveness include: plate water absorption, methylene blue uptake, free swell, exchangeable cations, and glycolated layer expansion. However, these tests have many disadvantages: First, they only measure the ability of a bentonite to expand, disperse, or absorb, not how well it will bond. Second, most of the tests require up to 20 hours to perform. Bentonite only has a few minutes to interact within the concentrate before it is indurated (sintered). These long-term tests may not reflect the true behavior of bentonite. Third, the tests are tedious and often results are inconsistent between different iron ore concentrates, labs, and technicians. Fourth, some of the testing equipment is difficult to procure. Fifth, procedures are often difficult to standardize. In this paper, the Binder Effectiveness Strength (BESt) test to evaluate binders for iron ore pellets is presented that: measures the ability of bentonite to bond, requires only about two hours to complete, is simple and reproducible, and utilizes readily available equipment that has been standardized for decades.

Jan 1, 2003

By E. Anelli

Based on experimental continuous cooling transformation (CCT) diagrams, an artificial neural network has been trained to predict the amount of microsturctural constituents and hardness resulting from and controlled cooling at rates from 150 to 0.015 K/s. It can be applied to quenching and normalizing processes of low-alloy steels with 0.05-0.30 C% and 0.4-2.0% Mn -with possible microalloying additions. Examples of the good predictive capabilities about 15 Vickers standard deviation for hardness and a few percent for volume fraction of phases) are reported' Keywords: Austenite decomposition, low. And medium-carbon steels, artificial neural networks

Jan 1, 2003

By Karl J. C. Harries

13.1. RIGHT TO RECEIVE ROYALTY CONTRACTUAL ONLY1

Jan 1, 2003

By Jan J. Cilliers, Nicolas Barbian, Esther Ventura-Medina

"Froth structure and stability are known to play an important role in determining flotation recovery and selectivity. An industrial sampling campaign was performed to develop a clearer understanding of the effect of flotation variables on froth stability and the role played by the resulting stability on flotation performance.Froth stability was estimated as the fraction of bubbles bursting on the surface of the froth through image analysis and the solids loading on the bubbles at the top surface. It was generally found that high air flowrates resulted in a drop of froth stability showed by a drop in the fraction of air overflowing and a decrease in the solids loading and simultaneously produced low copper recoveries and low concentrate grades. Deep froths only allowed a small fraction of air to overflow and consequently produced low recoveries. An increase from a standard to high frother dosage did not result in a larger fraction of air overflowing, hence producing low recoveries. Likewise, low frother addition only allows low recoveries because the resulting unstable froth cannot support itself. Low aeration was found to be preferential as it allowed high particle loading, therefore high bubble stabilisation, and low gangue entrainment, resulting in the highest flotation performance.Additional laboratory tests were performed to introduce a new stability parameter and to give a clearer understanding of the effect of flotation variables on froth stability. The results confirmed some of the observations made on the plant."

Jan 1, 2003

By A. Hasko

Phytoremediation is a new low cost alternative technique for remediation of contaminated soils from heavy metals that are emitted by ferrous and nonferrous mining and extracting processes. It is based on the possibility to use several plants that accumulate high level of metals in order to remove metallic pollutants from soils and render them harmless. Phytoextraction is an adjacent new technique that uses these hyper-accumulator plants in order to extract the metals from them using even the conventional smelting or refming processes. In our previous work, an extensive investigation of about 150 plants have been carried and several species were identified that could be used for nickel phytoremediation and phytoextraction because of their high accumulation of nickel. It has been found that five taxa from Alyssum genus specie had the highest ability to accumulate nickel with concentrations more than 10000 ug/g (dry weight) or 1%. The taxa showing the highest accumulation of this metal is Alyssum murale var. chlorocarpum with 28 600 ug/g or 2.86%, a good candidate for Phytoextraction. In this work, in order to optimize the phytoremediation and phytoextraction processes further Absorption Spectrometry measurements and biological studies were carried out to determine the parts of the plants that accumulate the highest amount of nickel and the best biological cycle during which they accumulate the highest amount. The results show that the greatest accumulation of nickel occurred in the leaf material (2.86%) and the least in the roots (0.43%). The investigation of the biological cycle of the genus Alyssum showed that: (1) the seeds germinated between 50 C to 30 0 C and more in 25 0 C; (2) 62.9 % of seeds germinated at A.m. var. chlorocarpum; (3) the emergence is almost continue from March to April; (4) the anthesis occurs from May to July; (5) the ripening of the fruit takes place 30 days after flowering; (6) the dissemination of fruits occurs from September to October. Due to these special characteristics it is reaffirmed that Alyssum murale var. chlorocarpum, as a nickel hyperaccumulator, is the most promising plant to be used for feasible phytoremedation and phytoextraction purposes. Keywords: Key words: Phytoextraction, PhytoRemediation, Nickel accumulators, Alyssum sp., Biological cycle

Jan 1, 2003

An Environmental Impact Statement (EIS) for a major mining development typically has to address various aspects of surface water management, including some which generally tend to be the more contentious: the diversion of rivers and creeks from areas disturbed by mining, and their rehabilitation; the effective management of disturbed area run-off via the collection, containment and treatment of contaminated water on site in sedimentation dams; the collection, containment and treatment of mine pit water; the decommissioning of surface water storages; final void water quality; and water discharge criteria. Environmental Impact Assessment processes for proposed mining developments in Australia at the state and commonwealth level usually involve a form of Initial Advice Statement (or Notice of Intent), Terms of Reference, an EIS, and a Supplementary Report (or similar) which responds to agency and public comment on the EIS. The EIS is used by approval agencies to decide the acceptability of the Project, and to set the conditions of approval. The conditions are often in the form of a state-issued æOperational LicenceÆ or similar. With mining, the initial approval at the EIS stage is often just a pre-cursor to various other planning related approvals, including obtaining a mining lease. Afterwards, mine plans and plans of operations must be submitted to government at various stages of the mineÆs life, ostensibly to provide the detailed mine planning over periods of one û five years. Despite all this additional planning and documentation beyond the submission of the EIS, government approval agencies are increasingly not satisfied with conceptual water management designs and commitments to an outcome (such as meeting a specified water quality standard) in the EIS. Agencies are also requiring sufficient water management design information to be convinced that the outcomes are achievable. To assist proponents of major mining developments, the Queensland Government has published Technical Guidelines for water management, and Environment Australia has published a æBest Practice Environmental Management in MiningÆ booklet on water management. In addition, the Australian and New Zealand Environment and Conservation Council (ANZECC. 2000) has published Water Quality Guidelines which provide an approach to water management, and provide receiving water investigation trigger criteria. So, what are the water management issues that are likely to be the subject of comment, debate and negotiation prior to the EIS being approved? and what commitments may a mining proponent have to make in order to convince the approval agencies that sufficient investigation and design has been provided? This paper provides some answers to this question, by reference to recent major mining proposals which the author has managed through state and commonwealth Environmental Impact Assessment processes.

Jan 1, 2003

By Rob D. Morrision, Paul W. Cleary

"The best accepted method for design of autogenous and semi-autogenous mills is to carry out pilot scale test work using a 1.8 m diameter by 0.6 m long pilot scale test mill. The load in such a mill typically contains 250,000-450,000 particles larger than 6 mm, allowing correct representation of more than 90% of the charge. This scale of DEM model is now within the practical range of standard workstations running an efficient DEM code.This paper describes various ways of extracting collision data from the DEM model and translating it into breakage and wear estimates. Account is taken of the different breakage mechanisms (impact and abrasion) and of the specific impact histories of the particles in order to assess the breakage rates for various size fractions in the mills. These impact histories have the potential to be directly related to breakage as they most resemble the single particle breakage tests which are used by the JKMRC to calibrate more traditional population balance models for variations in ore behaviour. However, the specific impact histories also show a background of many low energy collision events within the mill. This Background may constitute what is usually regarded as “abrasion” breakage. As might be expected, high impact events are concentrated in the toe of the charge and near to the mill shell where the forces associated with the load bearing on each particle is more concentrated."

Jan 1, 2003