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By T. R. Ellis

The valuation of mineral properties in the U.S. is only partially regulated. The regulations which have jurisdiction or impact appear to have such mainly as a consequence of unintended fallout, since the regulations were designed for other purposes. Court case history can also be important. The combined results are a mixture of bad and good, with important lessons to be learned. Since 1981, the Securities and Exchange Commission has prohibited U.S. listed companies from reporting quantitative estimates of mineralization and the value of mineralization, other than proven and probable reserves. This results in the minerals appraiser (valuator) working with a shortage of data in his everyday work, both on the subject property and in sales analysis. Between 1989 and 1995, all 50 states and essentially all federal agencies adopted the Uniform Standards of Professional Appraisal Practice (USPAP) for real property appraisals (valuations). The major national appraisal societies also require their members to abide by USPAP. A significant portion of minerals appraisals must now follow these standards. This paper will discuss the content of USPAP. It provides a very good framework for the valuation of a minerals property or a mine, both as real property and as a business. However, the credentialing standards for real property appraisers are now prohibitive for minerals appraisers.

Mar 1, 2002

By Thomas J. Fisher, John J. Sammarco, Gary L. Mowrey, Edward F. Fries

This report (Safety File 3.0) is the fourth in a nine-part series of recommendations addressing the functional safety of processor-controlled mining equipment. It is part of a risk-based system safety process encompassing hardware, software, humans, and the operating environment for the equipment’s life cycle. Figure 1 shows a safety framework containing these recommendations. The reports in this series address the various life cycle stages of inception, design, approval and certification, commissioning, operation, maintenance, and decommissioning. These recommendations were developed as a joint project between the National Institute for Occupational Safety and Health and the Mine Safety and Health Administration. They are intended for use by mining companies, original equipment manufacturers, and aftermarket suppliers to these mining companies. Users of these reports are expected to consider the set in total during the design cycle. • 1.0 Safety Introduction.—This is an introductory report for the general mining industry. It provides basic system/software safety concepts, discusses the need for mining to address the functional safety of programmable electronics (PE), and includes the benefits of implementing a system/software safety program. • 2.1 System Safety and 2.2 Software Safety.—These reports draw heavily from International Electrotechnical Commission (IEC) standard IEC 61508 [IEC 1998a,b,c,d,e,f,g] and other standards. The scope is “surface and underground safety-related mining systems employing embedded, networked, and nonnetworked programmable electronics.” System safety seeks to design safety into all phases of the entire system. Software is a subsystem; thus, software safety is a part of the system’s safety. • 3.0 Safety File.—This report contains the documentation that demonstrates the level of safety built into the system and identifies limitations for the system’s use and operation. In essence, it is a “proof of safety” that the system and its operation meet the appropriate level of safety for the intended application. It starts from the beginning of the design, is maintained during the full lifecycle of the system, and provides administrative support for the safety program of the full system. • 4.0 Safety Assessment.—The independent assessment of the safety file is addressed. It establishes consistent methods to determine the completeness and suitability of safety evidence and justifications. This assessment could be conducted by an independent third party. • 5.0 Safety Framework Guidance.—It is intended to supplement the safety framework reports with guidance providing users with additional information. The purpose is to assist users in applying the concepts presented. In other words, the safety framework is what needs to be done and the guidance is the how it can be done. The guidance information reinforces the concepts, describes various methodologies that can be used, and gives examples and references. It also gives information on the benefits and drawbacks of various methodologies. The guidance reports are not intended to promote a single methodology or to be an exhaustive treatment of the subject material. They provide information and references so that the user can more intelligently choose and implement the appropriate methodologies given the user’s application and capabilities. [ ]

Jan 5, 2002

By Theodore M. Katz, W. Stephen Brightwell, David E. LeGrande, Joseph J. Hurrell, Jane A. Lipscomb, Nancy Lessin, Lawrence R. Murphy, Michael J. Colligan, Steven L. Sauter, Richard A. Lippin

Revolutionary changes in the organization of work have far outpaced our knowledge about the implications of these changes for the quality of working life and for safety and health on the job. This gap in knowledge is one of the 21 priority areas for research under the National Occupational Research Agenda (NORA)—a framework crafted by the National Institute for Occupational Safety and Health (NIOSH) and its partners to guide research into the next decade. This report was developed under NORA as the first attempt to develop a comprehensive research agenda for investigating and reducing occupational safety and health risks associated with the changing organization of work. Research and development needs identified in the agenda include (1) improved surveillance mechanisms to better track how the organization of work is changing, (2) accelerated research on safety and health implications of the changing organization of work, (3) increased research focus on organizational interventions to protect safety and health, and (4) steps to formalize and nurture organization of work as a distinctive field in occupational safety and health.

Jan 4, 2002

Jan 1, 2002

By C. Partouche, T. Bernard

Blasting engineers are mainly concerned about fragmentation issues. Even further, this is the final goal of using explosives. A lot of models have been developed for controlling fragmentation distribution, but most of the time, they are based on physical phenomena using field data as input for rock characteristics. Fragmentation is a result of two phenomena: waves from the borehole, damaging and cracking the rock, and gas pressure, widening those cracks and spreading out rock fragments. This model simulates the P wave escaping from boreholes and the cracks created by these P waves. It takes into account rock characteristics, provided by digital imaging, and explosive characteristics coming from VOD measurements. What we need to focus on, is the interaction of P waves coming from each borehole related to different timing sequences. This paper presents several simulations that show the influence of the timing and the sequence accuracy on the fragmentation distribution.

Jan 1, 2002

By R. Horn

The financial performance of the mining industry, measured by return on equity and capital employed, has been inadequate for many years. Consequently, mining companies are not valued highly by stock markets. Among the more important causes for the decline in the sector are the conservative working practices and reluctance to adapt to change or to develop new technology, although some relatively recent developments such as SX-EW copper and heap leach gold have made a significant impact on the cost base of these metals. The subsidiary business of metals exploration suffers from the same problems as the rest of the industry. The rate of discovery of ore deposits has been falling over many years and since the late 1990s, there has been a sharp reduction in global exploration activity that, if it continues, will further reduce the global supply of new ore reserves. New technological developments, particularly in geophysics and different operational practices may help reverse this trend. Statistical methods for evaluating the risk of ore reserve estimates will also improve the economic return on new mining ventures. The science of ore geology has potential to reduce exploration risk, but modern ore genetic theory has not contributed greatly to recent discoveries. The junior exploration market has almost ceased, but a new style of technically specialized efficient small exploration company has emerged which, in alliances with major companies, may be the vehicle for future global exploration. Exploration in virgin terrains has a higher risk discounted potential for the discovery of very large orebodies than that in known mining districts but mining companies have little financial incentive for this high risk exploration because of the very long lead time to production. Alliances of two or more companies reduce the risk in both the exploration for and development of major new mining projects. If new orebodies are not found, then metal prices will inevitably rise in the long term. Governments of industrial countries, particularly those with a significant mining industry such as Canada, should therefore provide assistance to exploration in order to maintain their existing industry and prevent a metals shortage from developing in the future with its consequent impact on the world economy and increased environmental damage as large lowgrade orebodies are developed to supply an expanding market.

Jan 1, 2002

By W. E. Roscoe

"Mineral exploration properties are those on which an economically viable mineral deposit has not yet been discovered. Such properties are bought, sold, optioned and joint ventured on the basis of their perceived potential for the existence and discovery of a viable mineral deposit. The intrinsic value of an exploration property is therefore based on the exploration potential. One measure of the exploration potential is the amount that can be justified to spend on exploration for a viable deposit.The appraised value method uses a cost approach to value exploration properties. It is based on the premise that an exploration property is worth the meaningful past exploration expenditures plus warranted future costs to test remaining exploration potential. Results of past exploration work are analyzed in order to retain only those past expenditures that are productive in terms of identifying remaining potential. Warranted future costs comprise a reasonable exploration budget to test that potential."

Jan 1, 2002

By Andrej Šubelj

The paper tries to determine all which are interested or involved in collecting, evaluating, processing and distributing data on mineral resources, either "economic" or "uneconomic" and for what purposes. It shortly describes some of the most known classification systems, CMMI and UNFC, and their features, and discusses their advantages and weaknesses. Author also tries to define all the properties, a system should have to be declared as "World Code". Perhaps the ,integration of both systems would best accomplish the task and leave the “interest groups" the freedom to use only those parts of the system, they are interested in.

Jan 1, 2002

Your thoughts on the current status of the global minerals industries? The global economic, technological, social and political changes of the last two decades of the 20th century resulted in the emergence of a restructured minerals industry. This industry is now based on a new cost-cutting philosophy; utilization of modern technology; productivity gains rather than production tonnages; diversification of mineral markets; and globalization of exploration, mining and processing. Quantity and tons used to be the focus. The emphasis today is on remaining competitive in the marketplace by lowering per-unit production costs as much as possible. What factors and trends will impact the minerals industries in this, the 21st century? A number of parameters will impact minerals operations and shape the future sustainability and growth of the minerals industries. Increased demand for minerals will be accompanied by the demand for technical advancements. We will also see a continued emphasis on health and safety, environmental stewardship, and education and training. Let me elaborate.

Jan 1, 2002

Located 350 km west of Sydney and 20 km outside Orange, NSW, lies the Ridgeway Gold Mine û NewcrestÆs flagship Underground Gold Mine. Key to success at Ridgeway has been the fast tracked development of the 3.8 km, 1 in 5.3 conveyor decline which houses the 850 t/hr conveying system feeding the dedicated Ridgeway Concentrator, built adjacent to the existing Cadia Hill Concentrator. Eroc was contracted to develop the steep conveyor decline, drawing on its personnel and experience from past metalliferous, tunnelling and coal mining projects to complete the ambitious schedule within 12 months. This paper deals with the complexities and experiences in safely delivering what is understood to be one of AustraliaÆs steepest declines of any substantial length in a metalliferous mine.

Jan 1, 2002

By Keith Gordon

The recent discoveries of hydrothermal activity in the ocean off New Zealand have created interest in the business community in the commercial possibilities of mining associated marine polymetallic sulfides. This interest is more so, as this hydrothermal activity is in much shallower depths, between 120 ? 1800 meters, than the typical 2400m in other parts of the oceans. Mining for other ocean deposits around NZ, such as phosphate nodules and off-shore deposits from gold bearing river beds is also attracting interest. The question is: - how can these deposits be mined without spending the enormous sums of money required for specialized mining technology? There are no dedicated off- the-shelf systems designed exclusively for underwater mining. Such systems require expensive development and manufacturing processes and then, are most probably designed for only one specific purpose. The costs involved place such equipment beyond the means of smaller entrepreneurial groups and only the big companies have the resources required. However, large companies are normally reluctant to take the risk of investing large sums of money into deep ocean projects. Australia and New Zealand, until recent times, have been somewhat isolated from European and North American technical resources - especially in the field of underwater technology. Over the past century such isolation has often led to solving problems with what has become locally known as ? ?the number 8 gauge wire method?. This approach to problem solving entails using whatever is available to get the job done and keep costs down. In the old days with NZ technology being mainly based around farming, a piece of No. 8 gauge fencing wire, although not designed for the purpose, was often used to fix various problems ? hence the term.

Jan 1, 2002

By C. F. Strydom

Paper written on project work carried out in partial fulfilment of B. Eng (Mining Engineering) degree The Self-directed work team concept is the product of relentless performance pressure on American industries during the late eighties and early nineties from other world industrial leaders like Japan. The concept proved to be a successful vehicle by which the Americans could increase their production and improve their safety statistics. The aim of this study is to evaluate the concept as a means to improve the overall performance on South African goldmines. he study is directed by a historical research section, answering questions like: ?Why do we need to change? ?What is a Self-directed work team? ?What are the principle advantages of the concept? ?What are the essential requirements for the concept to succeed? The study also includes an empirical research section that focuses on the current Self-directed work team situation in the South African gold mining industry. The empirical research section is limited to three case studies within Anglogold due to a study period of only six weeks. The mines chosen for the case studies have been labelled Mine 1, Mine 2 and Mine 3. The latter being the base mine allowing for a more in depth study. This includes a perception analysis towards Self-directed work teams within the mine. The study proves the truth of the Latin proverb ?Tempora mutantur, nos et mutamur in illis? meaning ?The times are changing, and we are changing with them?. The chief change catalysts identified are a dwindling gold price and a projected labour crisis. From the study it is evident that the Self-directed work team concept disposes of the critical parameters required for a dramatic improvement in performance. The study also indicates that for the concept to succeed, certain factors like top-level commitment and management-employee trust have to be in place. Sadly, the concluding part of the study proves that very few of the identified critical success parameters are present in the South African gold mining industry. This can serve to explain why the industry only has success with the concept when monetary gain is the chief motivator. The study only focuses on the reasons why the concept is not performing to its full potential and does not wander into explaining the reasons for the current unsupportive milieu in the industry. Self-directed work teams could well rescue the South Africangold mining industry but currently we are driving a square pin into a round hole! [Terminology SDWT?Self-directed work teams AEL?Adventure Experiential Learning ISW?In-stope worker POLC?Plan, organize, lead and control TEC?Total employee costed Silo?The confinement of departments preventing networking JCI?Johannesburg Consolidated Investment Co. Ltd]

Jan 1, 2002

By A. W. (Sandy) Neilson

Whether you are a general contractor who hires subcontractors to perform blasting work or you have your own blasting crew, it is extremely important to understand how Business Liability Insurance works, regardless of who is ultimately providing the coverage. If close attention is not paid to the limitations and preblast survey requirements under most policies that provide blasting coverage, you could find yourself facing an uninsured loss.

Jan 1, 2002

By Johann van Wjk

Mandatory Codes of Practice to Combat Rock Fall Accidents came into force on South African Collieries in 1997. These were drawn up in accordance with guidelines issued by the Chief Inspector of Mines, The Codes of Practice (CoP's) are legal documents in terms of the South African Mine Health and Safety Act 1996. One of the main results Of the introduction of the COP'S from a practitioner's point of view is that they formalized much of what would have constituted a typical visit to an underground section previously. Other important requirements were as Billows: Support rules and Strata Control Standard Procedures were to be drawn tip. Identification of Special Areas (areas requiring a higher level of rock engineering input and with, typically, higher order of support and restrictions on mining geometries), Changing conditions underground to he identified timeously. Implementation of the CoP to he monitored. To comply with these requirements on Ingwe Collieries (a division of BHPO Billiton Energy Coal) it was decided to produce too separate forms to be used in conjunction with each other. The first of these, the "Underground Section Physical Risk Rating" measures the physical conditions in each section whereas the second form, the "Section Perfomance Rating" determines how well the section personnel are Coping with the conditions. This form also pleasures compliance with the Support Rules and Strata Control Standards. Both forms are essentially risk matrices but with various scenarios described, each with a certain weighting. The "Risk and Performance Form" system for bord and pillar operations has by now been used for five years in the Ingwe and Eyesizwe Mining Collieries and has achieved a great deal of acceptance. This system has enabled the quantification of previously subjective observations and has improved the strata control awareness and management of underground mining sections. Amongst other initiatives it has assisted ill reducing the severity and frequency of fall of-ground accidents.

Jan 1, 2002

By G C. Kiel, G J. Nicholson

Corporate governance has never been more topical. A glance at any major newspaper or business publication will reveal a litany of corporate failures based upon the governance of the organisations involved (eg Byrne, 2002; Hayes, 2002; The Economist, 2002). The increased compliance requirements and speculative nature of our industry means that corporate governance systems are, if anything, more important than in the general business community (Arthur, 2001). Rather than focus exclusively on the contribution of governance to corporate failure within the mining industry, however, our objective in this paper is to examine how boards can add value to the corporations that they govern. In order to highlight how a board can add value to a company, we commence by outlining the role of the board in the modern corporation in general and the mining industry in particular. We then introduce the concept of shareholder value and identify the steps on which a board needs to focus to enhance shareholder value through value tracking processes. Our discussion pays particular attention to the importance of organisational culture to the companyÆs activities and utilises three case studies from the mining industry. We conclude with an overview of what mining boards can do to enhance their culture and drive performance changes for the benefit of the companies they govern.

Jan 1, 2002

By Steve Dillingham

PHYSICAL BLAST DATA Pattern Description All measurements related to the description of the physical blast pattern must be made with the mind-set that it has to tell a powerful factual story enabling a future accurate reconstruction of the event. A case has never been lost because too much factual information was available to assist investigators. An accurate physical description of the pattern must be provided based on the blaster’s observations of the pattern actually loaded. The blaster must measure the pattern size, depth, face heights, etc., recording only accurate results. All too often, a blaster records simple pattern sizes and information relayed to him or her from the driller, or from a phone call into the office the night before for powder pre-load inventory purposes. If a pattern was actually measured on the job site by the blaster to be 8.5 x 9.5’, it may, in fact, originally have been ordered at 9’x9’, 8’x9’, or 9’x l0’. In a claim situation, particularly flyrock, recording a “generalization” of what was loaded could result in an interpretation of a blaster’s negligence due to “not knowing or caring” what the actual pattern was, and not loading appropriately for conditions. It is important to remember that other documentation exists such as a drill log from a contract driller or mine records that may provide a different interpretation of the loaded pattern.

Jan 1, 2002

By S. J. Dillingham

One of the primary goals of every blaster is to achieve the optimum blast design. Too much focus on efficient design, however, can cloud certain issues and exposures that must be addressed if the entire project is to be considered .successful.. Due to the known human response to blast effects and inherent dangers present in the use of explosives, the potential for the project being delayed or shutdown, or the blaster and associated company being named as a defendant in a lawsuit, is always a possibility. Therefore, the blast design and associated project bid must incorporate sound safety contingences and procedures that address those .what-if. Scenarios that may arise as a result of vibration, flyrock, public relations, and job-site personal safety.

Jan 1, 2002

By M E. Barley, A D. George, M Kneeshaw

Detailed pit and outcrop mapping of sedimentary rocks and their alteration is providing insights into fluvial processes that operated during deposition of the world-class Yandi channel iron deposit. Five prominent rock units are traceable along the strike of the Yandi deposit and permit correlation of open pits and mesas. These units are the Eastern Clay Horizon (ECH), granule-pebble conglomerate (GPC), Main Ore Zone (MOZ), Basal Denatured Zone (BDZ), and Basal Conglomerate (BCONG). The upper part of the deposit is characterised by a transition from spheroidal grains with well-defined rims and nuclei to larger, subangular grains with poorly developed rims. The distribution of rock types and sedimentary features such as lateral accretion surfaces, channel scours and fills, graded bedding, cross-bedding, reworked horizons, and slumped strata are common at Yandi and indicate deposition in a fluvial system. Bedding is well preserved despite modification of original grain shapes and textures and introduction of secondary silica and alumina in the upper part of the deposit. The high lithic and clay content of the GPC and ECH possibly reflect changes in source area or a hiatus in deposition of the Marillana Pisolite. The MOZ and the BDZ may be the same depositional unit with the latter recording alteration by groundwater and destruction of primary textures and other sedimentary features. The BCONG is a channel lag deposit reworked during deposition of the MOZ. This interpretation is supported by the dominance of basement-derived lithic clasts, the presence of BCONG clasts, the variable thickness of the unit along strike and the presence of BCONG clasts in the BDZ.

Jan 1, 2002

By G Hall

BHP BillitonÆs (BHPB) Yandi ore deposit is a channel iron deposit (CID) in the Pilbara district of WA. The ore is predominantly a goethite-hematite pisolite and overlays a clay at the base of the deposit. Knowledge of the location of the contact prior to mining is critical to maximise ore extraction and minimise contamination from and mining of the underlying clays which contain high levels of alumina. The contact between the iron ore and the clay is highly irregular. Traditionally the contact has been delineated by closely spaced drilling û this can be expensive and since each drill hole only provides a point sample measurement, irregularities in the contact surface can be missed. In September 2001, three high resolution geophysical techniques were trialled to see if they could be used to improve the efficiency and accuracy of ore delineation. The three techniques were resistivity imaging, ground penetrating radar and electromagnetic conductivity imaging. The resistivity data showed a favourable correlation with the available ground truth data from drilling. Using this ground truth data as a calibration, an interpretation of the depth to the base of the channel iron deposit (CID) ore was constructed for the areas surveyed. A significant attribute of the method is that the position of the base of the ore is imaged continuously along the lines that are surveyed rather than at discrete points. No continuous well defined ground penetrating radar (GPR) reflections were observed from the base of the CID ore. There did appear to be some correlation between the range of echo times that reflections were observed and the drill data, however the precision to which the range of echo times could be estimated was of the order of several metres and therefore not adequate to replace current procedures. The electromagnetic data showed good correlations with the existence of shallow clays but did not discriminate between variations in CID ore depth. This technique is therefore not suitable for mapping the base of the CID ore but may still be useful as a rapid tool for mapping the position of clay bands.

Jan 1, 2002

By Steve Dillingham

A blast site incident has just occurred. Tensions are high, and, as the blaster, you’re in charge of the crisis at hand. Your mind is reeling, your thoughts frantic. The main areas of concern for you at the scene are to deal with immediate problems...aid the injured, take a head count, assess the damage, call emergency response, contact company headquarters, calm the neighbors, update your customer, and respond to the press on site. You feel as if all the bases have been covered...but, then again, have they? One of the biggest mistakes blasters and their companies can make is not including their Insurance carrier in the critical on-site accident procedures and emergency call list. Unfortunately, many companies believe that they are immune to the perils that can often, within a matter of minutes, create chaos that only happens to someone else.

Jan 1, 2002