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By Daniel K. Dysinger

Capital resource budgeting is the way managers of publicly held companies fulfill their fiduciary responsibility to maximize the wealth of stockholders. Managers maximize shareholder wealth by allocating investment capital to the most productive of competing alternative projects. Managers do this in a manner that maximizes the net present value of the firm's future cash flow. The techniques of cash flow analysis are the primary tools available for selecting a corporate portfolio of projects that meets or exceeds the rate of return expected by shareholders. The reliability of cash flow analysis hinges on the ability of managers to forecast the future values of individual components of cash flow. The accuracy and reliabil¬ity of forecasting determine the soundness of capital investment decisions and, ultimately, determine the value of the firm.

Jan 1, 1997

By Peter Bellairs, Anthony Bubb

The Porgera Gold Mine is located at an altitude of 3000m in the central highlands of Papua New Guinea some 600 km Northwest of Port Moresby the capital city. Access to the mine is via a five hour trip on an unsealed road from Mount Hagen the nearest regional centre or 40 minutes via air. The mine operates on a fly in - fly out basis and currently produces ore from both opencut and underground operations with the former providing the bulk of the mill feed. Opencut mining utilises conventional truck / shovel, drill and blast methods on both 10 metre and 14 metre bench heights with the larger benches being restricted to the stripping areas. This paper presents the strategy used and the results of a blast optimisation process in the opencut that was a joint effort between the mine personnel and the explosives manufacturer/supplier.

Jan 1, 1997

By Nigel Pearson, Malcolm J. McPherson

In the Grasberg Mine, a series of orepasses of diameter 2 to 4m are being constructed, each one to carry as much as 10,000 tlhour of copper- and gold-bearing ore through single stage vertical drops of over 500m. At the base of each orepass, the fragmented rock falls into an orebin of diameter 1 Om and 100m deep. Long before the planned tonnages were reached on the early orepasses, a problem arose that was both serious and intriguing. Pressurization of air in the orebins caused by the falling rock reached such levels that when the feed to the top of an orpass was interrupted, a massive surge of air ascended rapidly and produced a dangerous backblast accompanied by dust; grit and rock fragments from the top of the orepass. Backblasts lasted for about one minute and were not only hazardous to the health and safety of personnel but also required time-consuming clean-up operations. The paper describes the aerodynamic analyses that were con- ducted in order to understand fully the mechanisms involved in the phenomenum, and the development of a procedure that al- lows the effects of falling material to be incorporated into existing ventilation network software.

Jan 1, 1997

By Robert W. Bergwall

The $58,000,000.00 Columbia Heights Metro Station project (Section E3-a) forms a part of the Washington Metropolitan Area Transit Authority's (WMATA) Greenbelt Route - Green Line subway system. The Greenbelt route is one often segments that make up WMATA's subway system. Construction of the "cut and cover" reinforced concrete station includes 600 linear feet of an underground center platform, two ancillary service areas totaling 466 linear feet, two surface entrances, and vent shafts (See Figure No. 1). Station subgrade is approximately 60 feet below existing grade. The project can be divided into five main areas: 1. North Service Rooms and Passageway; 2. West Entrance and West Passageway; 3. East Entrance; 4. Center Platform; 5. South Service Rooms. Station dimensions are approximately 1068 feet long by 64 feet wide. Construction commenced at the site in January of 1995 and is expected to be completed by December of 1999. Franki Northwest Company, Crofton, Maryland, was awarded a subcontract by general contractor Blake Construction Company, Washington, D.C, to install the support of excavation and temporary decking systems. Franki's scope of work included the installation of 490 drilled soldier piles plus two elevator shafts totaling 29,700 linear feet of drilling; 1,150 tons of steel decking covered by 37,000. square feet of precast concrete deck planks; 120,000. square feet of timber lagging; 2,500. tons of struts and wales; and temporary support of underground utilities. In conjunction with Franki's work, Bencor Corporation of America, Dallas, Texas, constructed parallel, 600 foot long slurry walls which serve as permanent walls for the center platform portion of the station.

Jan 1, 1997

By John Watson

The earliest known records related to mining document in dramatic terms the fact that mining methods have undergone significant change over the centuries. Wooden wedges, hammers and chisels, “fne setting”, to name a few, were the frst tools used to extract ore .or quarry rock for civilization. These inefficient tools and unsafe practices have been replaced today with some of the highest technology known to man. At the heart of most mining operations is the blasting program which utilizes one of the most efficient tools ever invented.. . explosives. Ever since they were invented, miners have been searching for more efficient products and methods with which to harness this “tool” and make it safer, reliable, and more eficient to use.

Jan 1, 1997

By H. Sevim

The utilization of high sulfur Illinois coal by utility plants has been decreasing since the enactment of 1990 Clean Coal Air Act Amendment. Illinois coal producers can make their coal saleable by offering the choice of taking the combustion by-products from the utility plants and placing them in the abandoned sections of their mines. To be competitive, however, coal producers need to select an environmentally acceptable transportation-handling-placement system through which the cost-per-ton of by-product disposed can be minimized. In this paper, a few such systems are presented. The favorable operating range of each system is determined in terms of distance and tonnage. A case study is given whereby cost analysis is conducted for an underground coal mine receiving by-products from two Illinois utility plants.

Jan 1, 1997

By G. Hargrave, K. W. Moloney, M. R. Stokes

In recent years drivage advance rates in the UK have in- creased from 35m per week in the 1980's to 100/150m per week possible today. These extended rates of advance have resulted in an increase in the potential methane, dust and heat generation at the drivage face. In order to disperse this additional pollutant load requires an increase of fresh air at the face. Although advance rates have changed, current auxiliary ventilation practice has not. UK mining law requires that the fresh air must be delivered to within 5m of the face. This has lead to the wide spread use of overlap auxiliary systems, since a pure forcing system set at this distance would lead to excessive airborne dust. UK mining law does not at present consider on-board mounted exhaust scrubber fans to constitute an effective overlap fan within mechanised drivages. In an attempt to determine whether working conditions could be safely and economically improved within mechanised drivages, a series of preliminary full scale gallery trials were con- ducted. A summary of the principal findings of these trials are presented together with an outline of a series of representative CFD simulations, scale model experiments.

Jan 1, 1997

By Trevor Howie, Mal Edwards

"Thiess Contractors Pty Ltd. designed and operate the Mt Owen Mine in the Hunter Valley of NewSouth Wales, Australia on behalf of the owners of the mine, BHP Coal Pty Ltd. The mine is a multiseam open cut coal operation. Mining by Thiess commenced in September 1996 following thecompletion of the coal preparation plant. The location of the mine is shown below on Figure Al."

Jan 1, 1997

By Robert W. Bartlett

"Bioheap pretreatment of sulfidic refractory gold ore prior to cyanide leaching is a promising new technology, especially for low-grade ores that cannot afford to be oxidized by pressure leaching or roasting. When an ore contains both refractory and non-refractory (oxidized) gold, an economic decision must be made whether, or not, to pretreat before cyanide leaching. This choice is more complex than the familiar ore/waste cut-off grade decision. Pretreatment usually increases recovery but delays receiving revenue. Based on choosing the processing route that maximizes the present value of the ore, an equation is developed that computes a ""critical cyanide leachable gold grade"" for determining whether pretreating will be profitable. If the ore's actual cyanide leachable grade, without pretreatment, is above this ""critical grade,"" it will not pay to pretreat. The waste/ore cut-off grade, pretreatment yield (leachable grade after pretreatment), total gold grade, pretreatment operating cost and the project's financial discount rate are parameters in the equation. Results of example calculations are provided. This equation can be used for mine development planning and, when bioheap pretreatment is an available option, for daily operating decisions on individual ore blocks.IntroductionOres that are refractory because of sulfide mineral encapsulation of microscopic gold are becoming important. These ores must be pretreated to oxidize the sulfides to liberate the gold prior to cyanide leaching. The conventional pretreatment process technologies are pressure leaching with oxygen and two-stage fluid bed roasting. However, low-grade refractory ores cannot afford the high operating costs of these processes. And, small mines with limited reserves cannot justify the high capital costs of these processes."

Jan 1, 1997

By Y. C. Guan

The leaching kinetics of chalcopyrite in ammonium iodide solutions with iodine has been studied using rotating disc. The variables studied J include the concentrations of lixiviants, rotation speed, pH of the solution, reaction temperature, and reaction product layer. The leaching rate was found to be independent with the disc rotating speed. The apparent activation energy was measured to be about 50 kJ/mole from 15°C to 35°C, and 30.3 kJ/mole from 35°C to 60°C. Experimental findings were described by a kinetic model, and the overall rate was found to be: (formula)

Jan 1, 1997

By Peikun Liu, Guangyu Sun, Raja V. Ramani, Shambhu Sharan, Raman Srikanth, Bharath K. Belle

The contribution of the various outby sources to the contamination of the panel intake air has been the subject of a relatively small number of studies. In this paper, after a brief review of past studies, results from recent experiments on rates of contamination of intake air by outby dust sources are presented. Present study indicates that each outby source by itself may not be a major contributor. The loading point in the continuous miner section did not appear to be of major concern from contamination point of view. Belt entry including transfer point contributes significantly to the intake air dust level, though reentrainment was not a major source of dust. In longwall panels, the stageloader-crusher was the most dominant source. The panel-to-main belt transfer point was not a major source. Taken collectively, the contribution of all outby sources can be significant. In one longwall section, at the beginning of the longwall face, the contribution of all the outby sources and the headgate cut-out operation was observed to be about 80% of the permissible exposure limit (2 mg/m3). In modem high production longwalls, the application of effective dust control measures to reduce the dust generated from the outby sources is essential to achieve compliance with the dust standards.

Jan 1, 1997

By David Reddick

The mining industry is in the midst of dramatic change. Mining activities are moving from industrialized first world countries (Canada, Australia, and the United States) to the third world. This shift is occurring due to depleted reserves, tough environmental standards, and expensive labor in traditional mining countries. During a recent trip to South Africa, I was asked, owing to my educational background in economics and an international involvement in drilling and blasting, what changes could be anticipated in third world blasting practices as labor costs increase. It is from that beginning that this presentation has evolved.

Jan 1, 1997

By R. K. F. Lam

Unacceptable levels of impurity were noted in high purity chromium melting. Analysis of recent melting data determined that oxygen content in chromium is the critical parameter. Thermodynamics studies identify zirconia to be the most stable oxide in the presence of liquid chromium, followed by alumina and silica. Iron oxide reacts readily with liquid Cr. A certain degree of chemical reaction between liquid chromium and oxides does occur, contamination by the crucible is therefore unavoidable. Equilibrium constants indicate that a chromium oxide addition decreases 'ceramic dissolution and reduces impurity contamination. Safe operating conditions with oxygen content between 1190 ppm and 2500 ppm were identified. Additions of chromium oxide (Cr2O3) of 161 grams and 264 grams to liquid chromium yielded acceptable levels of impurity, and oxygen content was respectively increased to 1624 ppm and 2 179 ppm. A new process of melting high purity chromium with chromium oxide addition for controlling the activity of Cr2O3 is recommended.

Jan 1, 1997

By D. Bleazard

Barrick Goldstrike Mines, Inc. is actively involved in improving the reliability of mining and processing equipment through the use of failure analysis and condition monitoring activities. Program results include an increase in equipment capacity and an overall reduction in operating costs. The identification of equipment failure modes and the development of associated capital asset management practices can minimize failure consequences. Successful programs have included; alterations to management practices, equipment modifications, and/or the implementation of condition monitoring programs. By controlling or minimizing the effects of incipient equipment failures, corrective actions can be taken earlier in the failure cycle, resulting in an associated reduction to repair costs and equipment down time.

Jan 1, 1997

By Brad H. A Brown, J Paul Tidman

To design a blast, one must give consideration to safety, economics, geometry, geology, production needs, and a variety of other requirements. To compare designs requires the time to develop alternatives, analyze, and then improve on them. A number of tools are available to assist with the first set of requirements, however they are poorly integrated. SHOTPlus is a program to improve the efficiency of blasting operations, by combining measurement and blast design tools, and offers the user the time and means to modify designs and explore alternatives.

Jan 1, 1997

By P. C. Schutte, A. J. Kielblock

INTRODUCTION Certain activities, such as emergency work and rescue operations, often have to be undertaken in environments where heat loads often exceed limits prescribed for routine work. This is particularly relevant to the South African mining industry where heat stress-induced fatalities are not uncommon during rescue operations. In this regard an excessively hot environment is defined as one where either the dry-bulb temperature exceeds 37,0°C or the wet-bulb temperature exceeds 32,5"C, and it is therefore not surprising that heat stroke mortality escalates rapidly when these limits are exceeded. A review of both local and international standards indicated that the available information on safe exposure times under abnormal heat stress conditions is very limited. Where available, such standards are aimed at the general population, including both sexes, irrespective of age and also the least heat tolerant worker, and not at a medically-screened, all-male population free of grossly heat intolerant individuals, as is the case in the South African mining industry. It is suggested that available norms and limits are too conservative for local application and, therefore, unrealistic. In view of the definite need to protect workers when exposed to abnormally high environmental temperatures, the present study was undertaken to establish a scientifically derived data base. applicable to local conditions, to determine safe exposure times: Any exposure limit, especially in an emergency situation, should be easy to administer, valid and reliable. These aspects, there- fore, form an integral part of this paper. FORMULATION OF HEAT STRESS LIMITS The formulation of heat stress limits was based on the criterion that a heat exposed individual should experience a negligible risk of developing dangerously elevated body temperatures. In order to provide a database for risk assessment, certain physiological responses of heat tolerant men were determined at various combinations of thermal conditions and work rate in a climatic chamber. These physiological responses were analysed statistically in order to predict safe survival and tolerance times as a function of thermal conditions and work rate. EXPERIMENTAL DESIGN A total of 202 randomly selected, medically fit mine workers volunteered for the study on the basis of informed consent. These men were considered to be inherently heat tolerant in as far as they had successfully completed a heat tolerance test (Anon., 1991) or the standard climatic room acclimatisation procedure used on many South African gold mines (Anon., 1989). The subjects were allocated randomly to 14 experimental groups and each group was exposed in a climatic room to one of

Jan 1, 1997

By J. Patrick Powers

In tunneling through water-bearing formations, the expense of controlling the water can have a major impact on overall project cost. The author has seen the cost of an eight-foot, finished sewer tunnel rise from under $500 per foot to over $1,000 when a water problem, anticipated as modest, became severe. There is need for greater professionalism in the approach to groundwater control. The days of the forked stick should be behind us. The basic technology exists. Its application is not yet widespread. This paper discusses predrainage; that is, the lowering of water in advance of tunnel excavation. Both free air and compressed air tunnels are considered. Examples from recent tunnel projects are described. SPECIAL NATURE OF TUNNEL DEWATERING Tunneling is unlike other excavations below the water table in a number of significant ways. The tunnel excavation is always on the critical path; if production slows or stops, there is no other work for the heading crews, no other work to carry the cost of service crews and job overhead. The dewatering commitment must be made well in advance. Construction of wells, and pumping down take time. After the heading reaches a trouble area, time is not available

Jan 1, 1997

By M. J. Howes, C. A. Nixon

INTRODUCTION A safe heat stress control strategy for an underground mine has three elements: Application of an environmental measure which reflects physiological strain with sufficient accuracy for the range of conditions encountered underground. Acceptance of a functional relationship between the environ- mental measure and human performance which is used to optimise the environmental conditions achievable with either ventilation or ventilation and refrigeration. A management control strategy based on the environmental measure which is designed to ensure that work in environments where excessive physiological strain may occur is prevented and corrective action is initiated. The environmental measure that reflects physiological strain is the link between the three elements and, since the turn of the century, the discussion of the merits of various indices has been prolific. One problem in selecting a suitable measure or index is the ease with which it can be physically obtained relative to accurately reflecting the physiological strain. For example, wet bulb temperature is simple to measure and, for a particular mining sys- tem, it may adequately represent physiological strain, however, it would not necessarily provide the same relatively safe measure in a different mining system. The acceptance of a measure which can be universally applied has been confounded by both development and predisposition. That is not to say that there is only one "correct" measure and all others are unsuitable. It is self evident that if the application of a particular index has resulted in adequate control, then that mea- sure is correct for that situation. However, an understanding of the limitations is necessary to ensure that adequate control is maintained as mining conditions change. Almost 100 years after the question of heat stress in mines started to be dealt with in a collective manner, an analysis of the available information is leading towards a general strategy to control this problem. In the paper, the developments in heat stress assessment are briefly examined and followed since the earliest published observations on the effect of heat in mines (Haldane, 1905), efforts to determine a relationship between an environmental measure and human performance are reviewed and summarised and the benefits of control strategies such as acclimatisation and shortened shifts are discussed as they relate to Mount Isa Mines. The results of testing the prototype air cooling power instrument are discussed and a heat stress control strategy outlined. HEAT STRESS AND AIR COOLING POWER The operation of the human engine is analogous to other engines where the conversion of chemical energy from the oxidation of fuel to useful mechanical energy is not 100% efficient. In a diesel engine it is about 33% and in a human engine less than 20% resulting in at least five times as much heat produced by the meta- bolic process as useful work done. Metabolic energy production is related to the rate at which oxygen is consumed and is about 340 W for each litre of oxygen per minute. Using measured oxygen consumption and an average body surface area of 2.0 m2, the approximate metabolic energy production associated with different mining tasks is (Morrison et al. 1968):- • Rest, 50 W/m2 • Light work, 75 to 125 W/m2 (machine, LHD or drill jumbo operators) • Medium work, 125 to 175 W/m2 (airleg drilling, light construction work) • Hard work, 175 to 275 W/m2 (barring down, building bulkheads and timbering) • Very hard work, over 275 W/m2 (shovelling rock) Heat balance is achieved when the rate of producing heat (the metabolic heat production rate) is equal to the rate at which the body can reject heat mainly through radiation, convection and evaporation. Heat exchange between the lungs and the air in- haled and exhaled is normally less than 5% of the total and there- fore usually ignored. Any heat not rejected to the surroundings will cause an increase in body core temperature. Since heat stress is related to the balance between the body and the surrounding thermal environment, the main parameters required to be known when determining acceptable conditions are those associated with the heat production and transfer mechanisms. These can be summarised as follows: Metabolic heat production rates (M - W) Skin surface area (A3) (and effects of clothing) Dry bulb temperature (t[ ]) Radiant temperature (t[ ]) Air velocity (V) Air pressure (P) Air vapour pressure (e [ ]) The rate of heat transfer to or from the environment depends on the equilibrium skin temperature t, and the sweat rate S,. These in turn depend on the response of the body to the imposed heat stress and the effect of thermoregulation (Stewart, 1981). Thermoregulation The body contains temperature sensitive structures which send impulses to the brain at a rate depending on the temperature. Both hot and cold signals can be differentiated and the thermoregulatory response ahivated according to which signal pre- dominates. If "cold" signals are dominant, body heat loss is re-

Jan 1, 1997

By C. G. Anderson

In some parts of the world, silver chloride occurs naturally in deposits of cerargyrite (1) (i.e. horn silver). In other cases, silver chloride is produced and exploited for its well- known photographic or electrochemical properties. In this case, it is a valuable commodity needing no further refinement. However, silver chloride is frequently encountered in precious metals refining. In most cases, it is a by-product that occurs in small amounts. For example, it is a common occurrence in gold refining when using the Miller and Wohlwill refining processes or when parting fire assay beads. As such, the mode of reduction to elemental silver is of little impact on the overall refining economics. Thus, a variety of reduction methods are employed all enjoying varying degrees of popularity (2). On the other hand, silver chloride serves as a key intermediate in the production of fine silver by nitrogen species catalyzed acid pressure leaching of refractory silver concentrates. This has most recently been practiced at the Sunshine Mining & Refining plant located in Kellogg, Idaho. Thus, efficient methods of reduction, precipitation and materials handling on an industrial scale are of the utmost importance. In this presentation, the evolution of these methods will be detailed.

Jan 1, 1997

By Keith Haddock

"The Sheerness Mine, a new surface coal mine located near Hanna, Alberta, went into full production in mid-1995. The mine, which is operated by Luscar’s subsidiary Forestburg Collieries (1984) Ltd., has the design capacity to supply up to 2.1 million tonnes of sub-bituminous coal per year to the adjacent Sheerness Generating station under a 30-year contract. This paper documents the construction phase of this project and highlights the major equipment purchases as well as the construction of the mine facilities. The paper also focuses on some of the areas where cost savings have been achieved that have allowed the mine to come on stream six months ahead of schedule, and under budget. Project ReviewMine DescriptionThe Sheerness Mine is located 25 km southeast of the town of Hanna in southeastern Alberta (Fig. 1). The mining property occupies the western portion of the Sheerness CoalField and borders the Montgomery Mine, operated by Manalta Coal Ltd. in the east, and Highway 36 in the west. The Montgomery Mine and the Sheerness Mine exclusively supply the total coal requirement of the adjacent Sheerness Generating Station. The station is owned jointly by Alberta Power Limited (APL) and TransAlta Utilities Corporation (TAU). APL is the operator. Manalta’s Montgomery Mine has supplied coal to the Sheerness Station since its opening in 1986. Coal is shipped by truck from the mines over a network of haul roads to the coal receiving hoppers located on the east side of Highway 36."

Jan 1, 1997