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The valuation of resources companies is open to a huge amount of subjectivity. Not only are valuations subject to fast changing assumptions, such as commodity prices, exchange rates, ore grades, etc., but there is also no common agreement on the methodology to be used. To borrow from Malcolm Fraser, life wasn't meant to be easy for the resource company valuer. I will demonstrate three recent examples of valuations carried out but where the market or actual transactions done show very different results.

Jan 1, 1989

The large rotary blast hole drills for hole sizes of 250 to 375 mm in diameter have been utilized by large open pit metal and coal mines for production drilling all over the world. The design of such rotary drills is in most cases about two decades old and it has not been done much in order to apply a modern technology on rotary drilling. The most modern large rotary drill, Tamrock RI 10, consists of an advantageous rotary head with a squirrel cage AC motor controlled by a frequency converter, a beneficial mast structure with a possibility for inclined drilling, hydraulic driven, independent crawlers, and a modern ergonomic cabin to provide a comfortable working condition for the oper- ator. Several automatic features are available as options. The rig has been designed to be operated by one man only. With this modern rig the produc- tion rate can be increased and production cost kept on a low level.

Jan 1, 1989

By K. R. Weller, U. J. Sterns

The goal of most in-plant studies is to identify factors that limit overall plant performance. A major finding from such studies is that interactions between unit operations are always important, usually specific for a particular ore and plant combination, and are one of the limits to plant performance. Computer simulation based on process models developed from in-plant studies is a useful tool for identifying limits to performance and for estimating the effects of proposed changes at both pilot and industrial plant scales. Examples involving interactions between comminution and various separation and agglomeration processes are presented, and directions for future development discussed.

Jan 1, 1989

By D. M. Muir, C. Cao

Many gold ores have copper mineralisation which presents problems in a carbon-in-pulp operation. Various types of copper-gold ores and ways of tackling the problem are discussed. In some cases copper and gold can be upgraded to a concentrate by flotation; otherwise, copper or gold can be selectively leached. When both copper and gold cyanide are present in solution, it is possible to minimise copper loading onto carbon or to selectively strip the copper from the carbon. Alternative leach solutions like thiourea and bromine are discussed and results obtained with the ammonia/cyanide system are presented in the light of our present understanding of the chemistry involved.

Jan 1, 1989

By Christopher J. Hall

This paper describes the results from computer runs simulating 24 different mine ventilation configurations with the main fan situated first at the top of the upcast shaft and then at the top of the downcast shaft. Real air was used, with evaporation, condensation and heat exchange. The results showed that power requirements for the forcing fan were up to 20% less than for the exhausting fan for equal mass flow rates.

Jan 1, 1989

By J. Nakayama

Construction of foundation piles or diaphragm walls through rocky or boulder containing formations has been long-standing difficulty. It has been widely understood that the down-the-hole hammer is the most capable mechanical means but is restricted in drilling diameter by the unavailability of drillhead sufficiently large diameter and the difficulty of disposal of cuttings. A great number of submersible motordrills have been used for the construction of cast-in-place piles and diaphragm walls and the reverse circulation system employed has demonstrated its advantage of the prompt removal of cuttings. The development of multi-head down-the-hole hammer drill combined with reverse circulation system presents a powerful engineering choice for those "hard-to-drill" ground formations. This paper will introduce the features of the system and some actual operation results in the foundation engineering through those hard rocky ground formation in some countries.

Jan 1, 1989

By Raj K. Singhal

Three principal activities are involved in planning and developing a surface mine. These are 1) definition of economic and technical feasibility, 2) design, procurement and construction, and 3) mining and reclamation. The last is the only activity which begins in the feasibility study and continues throughout the life of a mine. It is also the activity which depends heavily on use of computers. This paper deals with a method of selecting mining software and dwells on the recent progress, made in this area. Discussed also is the status of computerized equipment management and information systems: a microprocessor based technology applied to dispatch systems, monitoring of equipment health and performance, wireless data transmission to a centralized data processing unit, and mine- wide information and reporting system. Reference has been made to upcoming developments which offer the potential- of transforming the surface mine of the year 2000 into a "manless pit". Canadian achievements in all of these areas have been highlighted at appropriate places in the text.

Jan 1, 1989

By Richard Engelmann

The mining industry, in particular the coal industry, has experienced the implementation of some major environmental regulatory programs during the past two decades. Over the coming decade the coal industry will probably experience only "fine tuning" of the regulatory programs they now operate under. The rest of the indus- try, however, appears to be on the verge of coming under a major new regulatory effort by the Environmental Protection Agency. Litigation and resulting court decisions will be the main force driving further changes in the SHCRA (Surface Mine Control and Reclamation Act) regulatory program. These changes are anticipated to be minor in compar- ison to earlier changes. EPA, however, is preparing a regulatory program which may carry as much impact to the rest of the mining industry as SNRA was to coal. Details of this program have yet to be worked out. Changes in the way EPAts Clean Air Program is applied to mining could also significantly impact the mining industry.

Jan 1, 1989

By Charles L. Kimbell

The year 1988 for the minerals indus¬try was one of favorable worldwide economic conditions for continued, rationally constrained growth. There was continued improvement in relations between market economy nations and the Soviet Union and China. The "shooting war" between Iran and Iraq ended. Soviet troops withdrew from Afghanistan. And conditions were generally favorable for economic growth in developed market economy countries. These favorable conditions were darkened only somewhat by the continuing foreign debt crises discernible in some major mineral producing developing market economy countries. However, there were situations developing that became major headlines in the late spring - situations that may have pronounced effects in 1989. The most significant event is the muddled situation in China. There is a good chance of worsening international relations and consequent restraint of development projects that could prove beneficial to China and her international partners. Of only slightly lesser evident significance was the death of Ruhollah Khomeini in Iran. This could lead to a variety of paths for the new Iranian leaders. Continued outbreaks of ethnic unrest in the Soviet Union clearly presented problems to the Gorbachev regime. This unrest has raised questions of how far the doctrines of "glasnost" and "peristroika" would be extended, including extensions into the minerals field. Another area of unrest is Panama with its tainted election and the Western Hemisphere's obvious dissatisfaction with the Noreiga regime. While not a direct threat to any major mineral industry enterprise, the political situation certainly presents a potential threat to the Panama Canal. That threat would have considerable impact on world

Jan 1, 1989

By Tetsuro Esaki

This paper describes the present condition of mining-induced damages in Japan and the characteristics of them. The change of mining operation and environmental condition has caused various significant impacts on the ground environment: subsidence, cave-in, springing out of ground water etc. The characteristics and the influences of these phenomena are discussed by investigation of the actual conditions and by fundamental studies. Some counter measures are also introduced.

Jan 1, 1989

By Robin G. Adams

The market prices received by producers of internationally traded commodity metals have been, and continue to be remarkably volatile and unpredictable compared with most other traded goods and services. This volatility results in an erratic financial performance on the part of producing companies, disruptive and often inflationary cost changes for consumers, unreliable tax revenues and export earnings for host governments and severe social and economic pressures on local, sometimes remote, communities which are dependent on the activity in question. Generally speaking, price volatility appears to be associated with the inability of the metal producing side of the industry to regulate the volume of supply in a manner that is consistent with metal demand, which in turn reflects broad macroeconomic and industrial developments around the world. This statement does not purport to apply to all metals or to all instances of volatility of course. Price movements may occur as a result of pure speculation or even illegal manipulation of the commodity markets. Embargoes, boycotts and other politically induced supply changes may contribute. Threatened or actual strikes also cause artificial swings in sales volumes and prices. How- ever, most of these developments are of a short-term nature. Yet metals price cycles may last for several years, as demonstrated by the extended copper price trough from 1981 to 1986. This paper deals with price volatility which reflects long-term economic cycles and the adaptive processes that exist within the industry in response to such cycles. Special emphasis is placed on the role of forecasts and forecasters in these processes. It should be said at the outset that this reflects the personal experience of one forecaster working in private sector commercial consulting practices that are independent of producers, consumers and host governments. However, the experience does cover the entire period since 1973 and has involved working with a substantial majority of the major companies that supply high volume commodity metals. By way of background it should be stated that the post-1973 world economy has provided a challenging environment for forecasters. One cannot be precise about the forecasting record of either industry insiders or outside consultants, financial analysts and academic forecasters because comprehensive records have not been kept, or if they have the results are too embarrassing to be published. Institutions such as the World Bank have published forecasts of the prices of major commodities on a regular basis and these have, presumably, had some influence on financing decisions in the industry. This record along with our own experience and numerous discussions with metal producers, major consumers and host governments permits certain generalizations to be made. The most important of these is that during the early 1980s. from about 1980 through 1985/6, the forecasters system- atically and substantially over- estimated metal prices. While some fore- casters did correctly anticipate a recession in the early 1980s and some consequential decline in prices, the magnitude and duration of the decline was far greater than anyone foresaw. This systematic forecasting "failure" appears to have occurred independently of the forecasting methodology employed. Moreover, its extent cannot be explained by obvious factors such as incorrect macroeconomic assumptions. There appears to have been some kind of structural change in the world mining and metals industry over this period

Jan 1, 1989

To predict the spontaneous combustion potential of bituminous coals using a simple expression based on an easily acquired coal property. Background Approximately 20% of underground coal mine fires in the United States since 1978 have been attributed to spontaneous combustion. Spontaneous combustion fires in underground mines are most likely to occur in gob area; and are difficult to detect and to extinguish by direct fire fighting methods. Often, sections of the mine or the entire mine must be sealed for long periods, at a great economic loss to the mine operator, mine employees, and the surrounding community. It is conservatively estimated that the cost of scaling a large mine is about $50 million.

Jan 1, 1989

By R. J. Dippenaar, J. C. van den Berg

This paper describes an investigation into the prereduction of hematite fines in a fluidized-bed reactor as a means by which they can be prepared for direct smelting in a transfered-arc plasma furnace. A single-stage fixed fluidized bed reactor using the in situ gasification of coal was employed. It is shown that the hematite is reduced to magnetite at 1000 QC, the degree of reduction being limited by the inherent shortcomings of a single-stage reactor in which both the gasification and the reduction reactions have to occur. Methods by which the degree of reduction can be increased are suggested. The gasification process was studied in some detail, and three different reducing agents are compared. The dominating effect of the Boudouard reaction on the behaviour of the fluidized bed is clearly illustrated. Non-coking coals of high reactivity are best suited to this process, a finding that would complement the trend away from coke as a metallurgical reducing agent.

Jan 1, 1989

By Michael W. Neill, O&apos

The engineering profession generally does not accept vibro-driven piles as bearing piles unless their capacities can be verified by restriking with an impact hammer, which significantly reduces the economic benefits of vibratory driving. In part, the concern for capacity development in piles driven by vibration arises out of observations that vibro-driven piles do not develop capacities equivalent to those driven by impact (e. g., Mosher, 1987). Nonetheless, if capacities are predictable, vibratory installation may be more cost effective than installation by impact, due to savings in time of installation, even if capacities are lower than those of impact-driven piles. Throughout the past few decades, a number of attempts have been made to develop capacity prediction methods for vibro-driven piles, mostly along the same lines as methods for impact-driven piles. That is, (1) totally empirical formulae, (2) power balance / power transfer formulae, and (3) "time domain-nonlinear" (TDN) computational procedures such as the wave equation. Some of the formulae have been based partly on field experience, but the majority have been developed from simple theoretical models with parameters evaluated from laboratory studies. Neither these formulae nor the TDN solutions have been systematically checked (or modified) by recording appropriate field data over a variety of site

Jan 1, 1989

Reduce dust at the auger mine face by modifying airflow patterns, around the minim machine. Approach Limited clearance between an auger miner and the mine root restricts airflow across the face and causes dust rollback. Directional sprays arc used to direct air across the face, thereby reducing dust rollback and increasing dust dilution (fig. 1). Laboratory and underground studies were used to test and optimize effectiveness of the directional sprays. Results of Laboratory Study Laboratory experiments were conducted in a simulated auger gallery equipped with a full-scale mock auger miner and bridge conveyor. A dual curtain configuration was used to direct the, ventilation, which averaged 2,700 cfm throughout the experiment. Testing variables included spray location, pressure, spacing, orientation, and number. Figure 2 shows the optimized directional spray system, also called the auger clearer spray system. The system consists of three sprays mounted alone the intake side of the miner. Sprays arc spaced 16 to 24 inches apart, and angled 30° toward the return side of the miner. The 24-inch spacing moved about 7% more air across the face than the 16-inch spacing; however, it resulted in some additional misting on the return side of the miner. A 30° orientation was more effective than a 60° orientation for moving air across the face and minimizing misting on the return side of the miner. Flat fan sprays arc used because their spray paths arc not obstructed by the top of the miner and mine roof, A 50° fan angle is used to minimize misting on the intake side of the miner.

Jan 1, 1989

By Benjamin W. Haynes

The Federal government has a lengthy history in supporting and conducting research in the ocean mining and minerals field. The Federal effort has been and is currently focused primarily in four agencies: the National Oceanic and Atmospheric Administration (NOAA) within the Department of Commerce, and the Geological Survey (USGS), the Bureau of Mines (BuMines), and more recently the Minerals Management Service (MMS) within the Department of the Interior. While NOAA and the USGS have played dominant roles in mapping and geologic studies, and the MMS has recently provided funding for several task force studies within the Exclusive Economic Zone (EEZ) , the Bureau of Mines has conducted research in mining technology, minerals processing, resource definition, and economic evaluation of minerals from the seabed for over 20 years. These studies have yielded considerable minerals information regarding manganese nodules and crusts, placers, mineral sands, phosphorites, and sulfides. This paper reviews the past achievements in ocean mining and minerals programs starting in the late 1960's, describes current research and information efforts, and presents an outlook for Bureau of Mines research and information gathering efforts. Specific topics

Jan 1, 1989

By J. Roger Loebenstein

ASARCO Incorporated, the only domestic arsenic producer, terminated copper-smelting operations and the associated recovery of byproduct arsenic trioxide at Tacoma, W A. in 1985. It still shipped small quantities of trioxide from its remaining stocks in 1987. Imports for consumption of arsenic trioxide were slightly higher than in 1986. Domestic Data Coverage.-Shipments of small amounts of arsenic trioxide from remaining stocks by Asarco were reported voluntarily to the Bureau of Mines.

Jan 1, 1989

Due to highly competitive international coal markets, Stockton mine is bound to produce very high quality coals consistently if it is to maintain and expand its market share. The nature of the deposit is such that coals from various source pits are blended in differing proportions to meet the various coal quality specifications of the customer. The complexity arises due to quality variation within the seam both horizontally and vertically and the fact that up to six different products with completely different quality specifications may have to be produced. With increasing demand for this rare product and with CoalCorp eager to meet this demand comes the requirement for computer methods to handle this highly complex problem of both modelling and scheduling.

Jan 1, 1989

By S. S. Peng

An expert team consisting of geology, civil, and mining engineer professors was organized to investigate several problems of longwall mining in three mine sites including: site investigation, panel layout and support selection, overburden strata movement, surface subsidence and structural damages, slope, stability, well and stream dewatering, etc. The results include the development of a PC software package such as powered support selection, Surface subsidence prediction, optimum panel dimension, and pillar design.

Jan 1, 1989

By Graham Andrews

Experiment shows that the microbial degradation of pyrite does not necessarily proceed stoichiometrically. Under some conditions sulfur is oxidized preferentially leaving something approaching iron in composition; under others, the pyrite is converted almost to elemental sulfur. A kinetic model for the process based on three elementary biochemical reactions can explain these observations. The diffusion of sulfur along grain boundaries and dislocations in the solid pyrite uncouples the oxidation rates of sulfur and iron from the requirements of stoichiometry. This mechanism also explains qualitatively why bacteria adsorb preferentially at dislocation sites on pyrite surfaces, why they form "pits" at these sites, and why amorphous pyrite is more readily degraded than pure crystals. The rate-limiting step for pyrite oxidation is discussed

Jan 1, 1989