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By Dr. O’Neil Thomas J., Donald W. Gentry

"We can easily represent things as we wish them to be..” -Aesop INTRODUCTION The first eight chapters of this book have primarily addressed the concepts and fundamentals associated with project valuation, particularly as they apply to mining-related projects. Specific emphasis was placed on the engineering and economic parameters and estimates necessary for quantifying line items in pro forma income statements and the subsequent calculation of net annual cash flows. Given these estimates of relative benefits, costs, and annual cash flows for a project, it then becomes necessary to convert these estimates into measures of relative desirability or attractiveness. The criteria and techniques typically utilized to determine project acceptability or desirability are, then, the topics of discussion in this chapter. Before proceeding it may be advantageous to put the problem of project evaluation into proper perspective by reiterating some of the fundamental concepts developed in Chapter 1. The basic premise set forth in this book is that the objective of the firm should be to maximize its value to its owners (stockholders' wealth). This value or wealth is represented by the market price of the firm's common stock; consequently, the primary objective of the firm can be restated as one of maximizing the value (price) of the firm's common stock in the marketplace over the long term. This price, in effect, is an indicator or index of the market's perception of the company's progress and a reflection of the investment, financing, and dividend decisions made by corporate management. These three major decisions are inter- related and jointly impact the market price of the firm's stock. Therefore, if the objective of maximizing the value of the firm to its stockholders is to be achieved, an optimal combination of the three decisions will be necessary. It is important to emphasize that maximizing stockholder wealth is not the same as profit maximization or even the maximization of earnings per share. Corporate managers making decisions based on the objectives of maximizing profits and/or earnings per share must recognize that these objectives do not consider: (I) the timing or duration of expected returns, (2) the business and financial risks of the promised earnings, or (3) the dividend policy of the firm. Obviously all of these factors are of concern to the company's stockholders and will have an effect on the market value or price of the firm's common stock. Maximizing market price per share, or wealth maximization, is therefore the appropriate corporate objective and

Jan 1, 1984

By E. B. Jensen, C. E. Doane, J. F. Pirozzoli

Results of an extensive one-year test of a nonelectric explosives detonating system led to the mine-wide adoption of this system in early 1978. Since that time, further experience with nonelectric initiation has verified the earlier results, which include the following benefits: Electrical insensitivity Improved productivity Cost effectiveness High reliability While electric blasting caps still experience a limited we restricted to trunkline initiation, all heading rounds as well as the bell, undercut, boundary-cutoff, and raise blasting are detonated nonelectrically. The primary blasting agent used at the Henderson mine is AN/FO, and primers are typically one of the following products, depending on applications: PETN, semi-gelatin dynamite, or a nonnitroglycerin water-gel slurry

Jan 1, 1984

By P. K. Chatterjee

Computer aided design and inter active graphics have been well established in the electronics, automotive and mechanical engineering industries. The use of such aids in underground mine design and planning, however, has been noticeably absent. The large expense involved in the research and development of CAD and graphics systems and their highly specialized techniques have rendered investment in these areas difficult to justify. Optimum mine planning involves an interactive procedure of evaluation of several alternative plans. Generally the development of each mine plan of a given operation can take many man-months. This time constraint on planning precludes any comparative analysis and evaluation of alternatives, thereby introducing the possibility of unrealized gains. This paper outlines the development of a computer aided mine design program utilizing interactive graphics for the design, simulation and scheduling of underground coal mines. The program developed examines exploratory borehole information and produces a structured database of the sampled data. This database is utilized to generate seam sections and different mine layouts. A simulation of mine extraction and production levels and a schedule of proposed alternatives are then performed.

Jan 1, 1984

By G. Hasenfus, M. Karmis, G. Goodman

Surf ace subsidence is rapidly becoming an important environmental consideration of active as well as abandoned mining operations. The damages attributed to this phenomenon have been witnessed in both rural and urban areas and include land settlement and fracturing, structural damages to surface buildings or facilities and disruption or contamination of ground water supplies. The problem of mining subsidence has gained considerable emphasis in the Appalachian coalfield. The increased mining activity over the past few years and the particular topographic conditions, lithologic and structural environment, mining methods and hydrological patterns are all factors which have contributed to specific subsidence characteristics in this region. The objective of this paper is to discuss and review the most widely accepted methods of subsidence prediction above longwall as well as partial extraction systems in Appalachia. These include an accurate and easy to apply empirical method, which has been developed entirely from field information pertaining to the Appalachian coalfield and incorporates both geometrical and geological information of the panel in question. The second method is a development of influence functions and is founded on the zone area approach. Both methods, originally derived for longwall mining, have been expanded to include room and pillar applications and have been widely used by the mining industry in the Appalachian coalfield.

Jan 1, 1984

By Maurice C. Fuerstenau

The kinetics of leaching galena with ferric chloride and ferric nitrate have been examined as a function of ferric concentration, salt concentration, temperature and particle size. Diffusivity of ferric complex ions was also established as a function of ferric chloride concentration and temperature. In the presence of 3 M NaCl, leaching rate is controlled by product layer diffusion when ferric chloride is added as oxidant. With NaCl concentrations less than 3 mole/liter rate decreases with decreased NaCl concentration, and, thus, rate is apparently not controlled by product layer diffusion. It is suggested that rate is controlled by lead chloride solubility at the reaction interface under these conditions. When ferric nitrate is added as oxidant, leaching rate is limited by chemical reaction control. An electrochemical model is presented. Activation energies are 8.1 and 11.3 kcal/mol in the ferric chloride and ferric nitrate systems, respectively.

Jan 1, 1984

By Thomas M. Barczak

The resultant load vector is the representation of the forces applied to a longwall roof support element by caving strata into a single, quantifiable measure of support resistance. The relatively complex kinematics of the shield support prohibit a determination of support resistance simply by summation of leg forces. A method is being investigated by the Bureau of Nines to determine the resultant load vector by instrumenting supports with pressure transducers and strain gages to measure leg, canopy capsule, and lemnisoate link forces. This concept has been laboratory tested in the Bureau's Nine Roof Simulator. Functional relationships among variables have been assessed, and confidence intervals have been established for prediction of the resultant load vector parameters.

Jan 1, 1984

Aluminum alloys are used in two broad classifications: wrought and cast. Wrought alloy products, which are formed into final shape by rolling, forging, extruding. etc., contain low percentages of alloying elements; whereas cast aluminum products, which generally are not worked before use, may contain higher percentages and a somewhat different selection of alloying elements. For example, wrought aluminum alloys usually contain less than one percent silicon and cast alloys contain as much as 18 per-cent silicon. While there are good techniques available for separating aluminum alloys from mixed scrap, there are no efficient ways to separate wrought aluminum from cast aluminum. The high levels of silicon, iron) copper, and zinc from the cast alloys make wrought-cast mixtures unacceptable for wrought alloy production. Consequently, separated wrought aluminum scrap commands a premium price on the market. Since increasing amounts of mixed aluminum alloys are being recovered from automobile scrap, this separation is important for efficient recycling of these alloys. Approach The difference in thermo-mechanical properties between the two classes of aluminum alloys is used as the basis for the separation process. Casting alloys lose their ductility within a certain temperature range while wrought alloys remain ductile. As temperature increases, aluminum alloys gradually become weaker, and at a certain temperature, each alloy loses strength and ductility due to incipient melting in localized areas. For casting alloys that temperature generally lies between 520° to 560° C, but it is above 600° C for most wrought alloys. Mild crushing, therefore, in the proper temperature range will result in complete fragmentation of the casting alloys but only plastic deformation of the wrought alloys. A simple screening step then is used to separate the oversize wrought pieces from the fragmented cast alloys.

Jan 1, 1984

By William R. Nash

Case histories of water problems in underground mine shafts and tunnels are outlined to illustrate varying degrees of sophistication in grouting techniques currently applied in such construction. The interception of water underground can be one of prior knowledge, i. e., the site investigation provides necessary data to plan a grouting program prior to construction start, or excavations may encounter "changed conditions" or unplanned water. The latter includes catastrophic inflows and emergency situations where the structural integrity of a building or concrete shaft lining are jeopardized. The presentation of this paper outlines some applications of grouting work in underground mine construction throughout the United States in a variety of geological provinces and for a variety of minerals.

Jan 1, 1984

By Armando Correa de Araujo

Cationic flotation of quartz is currently utilized for the concentration of iron ores and for the cleaning of phosphate concentrates. The present work deals with depression of quartz in the presence of aluminum ions during cationic flotation. It was established-that aluminum ions depress the flotation of quartz with an amine, especially under neutral and very slightly alkaline conditions. Studies of adsorption of Al ions on the quartz surface as a function of pH correlated with depression of this mineral with an amine as collector. The presence of Al ions also enhanced the depressant action of corn starch on quartz The sodium salt of ethylenediaminotetra-acetic(EDTA) was found to be an effective complexing agent to supress the depression caused by aluminum ions.

Jan 1, 1984

By Donald P. Richards

West Elk Coal Company operates its Mt. Gunnison No. I mine on the western slope of the Rocky Mountains in Western Colorado. The mine is located along the north fork of the Gunnisson River near Somerset, Colorado as shown in Figure 1. The mine is designed for a sustained production of 1.4 million tons per year out of the "F" coal seam in the Mesa Verde formation. The coal seam is nominally 7 feet in thickness and dips at about 3 ½ degrees to the northeast. Mining of the seam is up dip with the entry portals on the north facing slope of Mount Gunnison. The mine is designed as a five entry system with four entries for ventilation and access and one entry for a coal-handling conveyor. The mine entry layout is shown in Figure 2. Initial mine planning began in 1979, with "permitting" complete and construction starting in the fall of 1981. A "turnkey" contract for design and construction of all five parallel mine entry tunnels was awarded by West Elk Coal Company to a Joint Venture of Jenny Engineering Corporation (design and contract management responsibility) and Affholder, Inc. (construction responsibility). The first entry access into the coal seam was completed in the early spring of 1982. The mine has been operating at full service (all five entries) for nearly 3 years.

Jan 1, 1984

By H. Melama

The primary grinding stage in the Vuonos concentrator comprises a rod mill in open circuit and a semi-autogeneous mill in closed, circuit with a hydrocyclone classifier. The instrumentation of the grinding circuit is displayed in Fig. 1. All the measurements have computer interfaces and all the control circuits have been implemented by the process control computer. The crushed ore feed to the rod mill is measured by a belt-weigher and controlled by a belt-feeder. The pulp density in the rod mill is stabilized by proportioning the waterfeed at the mill inlet to the crushed ore feed. The slurry level in the pump sump is measured by a pressure transducer and it is controlled by charging the speed of the direct-current drive pump.

Jan 1, 1984

By I. Iwasaki

The effects of percent solids, mill loading and grinding time on product size distribution and ball wear were studied in a laboratory ball mill for a taconite ore. Mild steel balls and HCLA steel balls were used to examine the role that ball hardness play in grinding. Net production of minus 325 mesh - material reached maximum at 70% solids, whereas the ball wear decreased as pulp density increased. HCLA steel balls ground the taconite ore finer than mild steel balls under otherwise identical conditions. Examination of ball surfaces with a scanning electron microscope suggested that grinding with mild steel balls involved nipping rather than attrition, whereas grinding with harder HCLA balls involved both nipping and attrition.

Jan 1, 1984

The constraints in university courses are lack of hours, high cost of scientific equipment, and poor availability of suitably experienced staff. These have forced the balance away from practical work and towards more theory. Labelling of individuals as either practical, or academic, does not help the inter- change of staff between industry and univer- sities that is necessary to balance idealism and realism. Practical men who do return to universities may lose seniority and find that industry is reluctant to have them back. Academics who specialise too long may concentrate on their research to the exclusion of basic material. It is difficult to operate pilot scale plants in universities because of lack of time, and obsolescent equipment. Small grants from industry might enable tests to be run in research laboratories such as at C.S.I.R.O.. Within universities there may be a need for greater interchange of students among depart- ments, aided by the absence of weighted student unit measurements, as suggested by Aus.I.M.M. and A.M.I.C.

Jan 1, 1984

We are all no doubt aware that with today's high costs it is more important than ever to get the maximum possible return on capital invested in the mining industry. Screening is an important and often costly process in the size classification of industrial minerals and for this reason alone it is essential for both managers and operators to fully understand what type of screening equipment is best suited for a particular application and why. The advent of elastic materials such as rubber and polyurethane have added a new dimension to the process of screening. It is important to understand why the physical properties of these materials can be of benefit in the screening process, and recognise which type of screening applications best take advantage of these orooerties.

Jan 1, 1984

By Hoeve. J.

"In the unconformity-type uranium deposit at Midwest Lake, mineralization is associated with extensive host rock alteration, which affects the metamorphic basement as well as the overlying Athabasca Group sandstones. Host rock alteration is manifested by (I) transformation of clay minerals [kaolinite into illite and chlorite (sudoile)]; (2) bleaching due to removal of hematite from the lateritic paleoweathering profile and the overlying red bed, Athabasca Group sandstones; (3) loss of coherence of the sandstone resulting from corrosion of quartz cement; and (4) in the immediate vicinity of high-grade ore, development of a clay envelope due to residual enrichment of clay minerals caused by massive dissolution of quartz. Clay mineral transformation and bleaching are the most prominent and the most widespread alteration effects, forming haloes that extend for several kilometres along the strike of the mineralized structure and also constitute distinct alteration pipes that rise f or several hundred metres above the unconformity to be truncated at the present top of the bedrock.Although the two haloes are largely congruent features, cross-culling relationship s indicate that clay mineral alteration represents an earlier phase in the history of the deposit than the large-scale bleaching that gave rise to the superimposed bleaching halo.Because clay mineral alteration and bleaching are intimately tied to the mineralization and extend well beyond the limits of the actual orebodies, host rock alteration may be used as an ore guide in exploration and drill-hole evaluation. In this application a third hydrothermal discharge centre was identified, as yet untested for are, which is located between the hydrothermal centres associated with the two known orebodies of the deposit.It is estimated that host rock alteration may enlarge a potential drill-target by a factor 10 - 20X. Information on the configuration of bleaching haloes can be obtained from systematic core logging, whereas diagnostic clay mineral alteration is readily identified by means of automated, quantitative XRD techniques."

Jan 1, 1984

By J. M. Avasthi

The DOE-funded (Contract No. DE-ACO3-77ET13108) Gulf Research & Development Co. (GR&DC) field tests of underground coal gasification in steeply dipping beds (UCG/SDB) were conducted in the North Knobs area, located 12.8 km (8 miles) west of Rawlins, WY. The site has a gently rolling, sparsely vegetated, semidesert terrain on the transition zone between a broad, flat basin (Great Divide Basin) to the west and the subdued mountains of the Rawlins uplift to the east. A comprehensive geotechnical program (Ahner et al., 1980) was essential to successfully complete the test program. Emphasis of the program was the subsurface characterization of the site and consisted of mapping, drilling and logging, core analyses, and hydrologic tests. The samples of lithologic units over- and underlying the G coal seam were tested in the laboratory for their modulus and strength. This program provided the required data necessary for designing surface facilities, input for permits, and ensuring correct placement of the process modules. The two UCG tests at the Rawlins site were conducted in the nominally 6.7 m (22 ft) thick G coal seam (rank-subbituminous B), dipping at 63°.

Jan 1, 1984

By M. Tarvainen, J. Kallioinen

"Depressed metal prices coupled with increasing production costs have presented a great challenge for operators to control and reduce the costs of production to maintain profitability. Depleting ore reserves, added to the above has forced Outokumpu to take a hard look at its operations, to develop new methods to profitably extend the life of its mines. One of the areas investigated and approved for further development has been the use of larger and more energy efficient equipment. As a result, large flotation machines were developed and today 38 and 60m3 flotation machines are in use.Secondly, ore preconcentration has been developed to avoid processing the part of the ore that has little or no mineral values.Another quite recent development and the topic of this paper, has been the use of coarse flotation before conventional flotation. The main idea is that part of the valuable mineral is separated as early as practical by floating it with specially designed flotation equipment, installed in the grinding classification circuit. The new flotation cell is specially designed for this application and differs from the conventional cells in the tank design, feed arrangement and modified mechanisms in some cases."

Jan 1, 1984

By John Freer

The time 06h30 in midwinter is a little early to set out on an excursion from Johannesburg. Yet this was the hour that members, many accompanied by their wives, started to assemble in the parking lot adjacent to the squash courts at the Wanderers Club, Illovo, for a visit to Premier Diamond Mine at Cullinan. All fifty were checked in and aboard the coach by 07hOO. Coffee and sandwiches, served en route by Doris Gardner and Pam Binstead, were most welcome. IMM awards Given below are details of the trust funds, etc., to which applications are invited for grants, etc., payable in 1985. Application forms, which must be returned to the Secretary before 15th March, 1985, are available on request. Applicants should note that, in general, preference will be given to members of the Institution.

Jan 1, 1984

By T. Kusakawa

In Japan, natural gypsum is rarely mined for industrial use and almost all gypsum is synthetic, that is desulphogypsum, produced from waste sulphur dioxide gas from metal smelters and power plants and other industrial waste sources. The amount of synthetic gypsum production (1979) reached more than 6 Mt/a (6.6 million stpy). Major uses are for cement and building materials. Other uses include soil conditioner, investment casting molds, and organic composite materials. Sulphur recovery by gypsum decomposition is being examined. This paper summarizes present Japanese production and uses of synthetic gypsum produced from industrial wastes.

Jan 1, 1984

By E. Morrice

The Bureau of Mines investigated methods for beneficiating platinum-palladium ores from the Stillwater Complex, Montana. Results of bench-scale and pilot-scale studies employing froth flotation to recover sulfide concentrates containing platinum-palladium values from a serpentinized ore are presented. Best results in the pilot mill were obtained with a sodium isobutyl xanthate-normal dodecyl mercaptan col-lector combination at a natural pH of 8.2. A rougher concentrate con-taining 1.7 oz/ton Pt and 4.7 oz/ton Pd was prepared. Recoveries of platinum and palladium were 96 pet and 86 pet, respectively. Batch cleaner flotation of rougher concentrates yielded concentrates contain-ing 3.7 oz/ton Pt and 9.8 oz/ton Pd.

Jan 1, 1984