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By Leonard Harris

Good morning ladies and gentlemen. I would like to thank Hans von Michaelis for inviting me here today to talk to you on the subject of "How to Reduce Capital and Operating Costs at Heap Leaching Projects". The comments I have to offer are based on my experiences in gold heap leaching by Newmont Gold Company in Nevada, by Newcrest in Western Australia (formerly Newmont Australia), by Minera Yanacocha in Peru, by Penmont in Mexico, by Z­Mont in Uzbekistan, by the Hochschild Group in Peru and expe­riences in copper heap leaching by Magma Copper Company in Arizona and as a consultant on several other smaller projects worldwide. These comments are a mixture of technology, ideology, philos­ophy, strategy, logic and opinions and might be looked at by many of you as "one man's view". I like to look at them as "a view from the bridge". Let me add that it doesn't bother me that you may not agree with my comments and that I would be interested in your comments or criticisms at the end of this presentation. I don't intend to discuss the details of the mineralogical and metallurgical test work. I will assume, for this talk, that the test work has been conducted very carefully and that the ore in ques­tion has been determined to be heap or dump leachable. Let's begin with a couple of don'ts! ! First, "don't build the mill until you have a mine". This might sound to many of you as fundamental but believe me it continues to happen. The minable reserves should be well known and established as being economical to mine and leach. NPVs, ROis and IRRs are fine if you can be sure of the gold price you use in your calculations. The best method is to carefully estimate the capital cost and, most importantly, the operating cost per ounce of gold recovered which should include the repayment of the borrowed capital and the interest thereon. For example, if the operating cost under these conditions is $200 per ounce, you have a project. If it is $400 per ounce, walk away f om it. Incidentally, the same prin­ciple can be applied to projects involving other metals such as silver, copper, lead, zinc, etc. The second don't is - "don't be sheep". Don't climb on the bandwagon with respect to design and operation because every­one else does it a certain way. Keep an open mind, be versatile, look for change, look for every possible innovation for reducing capital and operating costs. Beware of those who will tell you "we tried that it won't work" or "it's too expensive" or "that's a crazy idea" , <' ''what do you know about mining - you are a metallurgist aren't you" or "what do you know about metallurgy - you are a miner aren't you" or "only geologists can handle this issue". Be careful about pigeon-holing people according to their basic degree and experience. In these days of low metal prices, we need to consider everybody's ideas, as crazy as some of them might seem.

Jan 1, 1998

By T. W. Mattioli

Restrictions on fugitive emissions and crushing operations continue to get tighter. Although fugitive dust control in the gold mining industry has historically been difficult, there are now several options that can make dust control both effective and efficient. Using new technology, mine operators can now design and maintain a dust control program that can reduce product losses, decrease equipment failure, cut cleaning costs, and meet air quality compliance standards as well as provide a better working environment. This paper discusses the sources of fugitive emissions related to the gold mining and crushing operations and describes effective new control methods.

Jan 1, 1998

By Rick T. Richins

Despite what may be overwhelming evidence that natural degradation of cyanide and cyanide attenuation in hydrogeochemical processes are capable of reducing or eliminating potential water quality problems associated with heap leach facilities, the recent sharp increase in the price of gold and wide interest in the cyanidation process has focused all regulatory eyes on cyanide leaching. Regulations continue to increase, design criteria are more strict, and detoxification requirements approach or exceed the level of detectability. Current governmental regulation of mining and milling operations using cyanide varies considerably from state to state. The lack of regulatory consistency at this level is largely attributable to the current Bevill Amendment exclusion of mine wastes as potentially hazardous wastes, the undefined status of the Environmental Protection Agency's ongoing mine wast study effort, and the mining industry's reluctance to develop a consistent policy regarding state versus federal mine waste regulation.

Jan 1, 1998

Jan 1, 1998

By Chappell B

Backfill in the form of mine waste tailings has inherent problems associated with attaining adequate strengths upon placement. Fines are usually removed to ensure adequate drainage, which lowers the cohesive strength of the fill, leaving the fines to he placed in a tailings darn. Electro-drainage and electro-chemical grouting is examined to investigate its effects on densification and shear strength within a silty clay tailing having low permeability and shear strength. Two separate grouting mechanisms are observed for the iron and silica grouts used. Electro- osmosis is associated with iron grout that deposits within the tailing matrix under a converging pH gradient, and increases the permeability of the tailing. This process initiates cation exchange and causes cementing of the granular contact points between the clays. Electro-phoresis causes sodium silicate solution to deposit silica grout in the voids of the tailings. The resultant effect of these mechanisms results in an increase in cohesion, leaving the void ratio of the iron grouted tailings as it was but significantly reducing the void ratio of the silica grouted tailings.

Jan 1, 1998

By E. A. Metz

Silicon dioxide, silica, is the most common oxide in the earth&apos; s crust. The health effects of silicon dioxide dust have been known since Biblical times. Agricola&apos;s book, published in the mid 1500&apos;s on occupational medicine, described a lung disease that afflicted miners. He observed a disease in miners that caused shortness of breath, coughing and wasting. Add fever, chest pains and fatigue and we have the current symptom complex of silicosis. As we approached the 21stcentury, the Labor Department began an aggressive campaign to combat silicosis-a preventable disease. Unfortunately, many publications do not clearly differentiate the polymorphs of silica known to mineralogists. Crystalline silica, i.e., alpha quartz, tridymite and cristobalite need to be considered differently from the amorphous forms of silica. Freshly fractured surfaces of the silica and host specific responses will be examined. Recent research focuses on the biologic interactions of free radicals generated by mineral particles. This results in cell injury and DNA damage, in turn leading to fibrogenesis and possibly carcinogenesis. In addition to particle-cell interactions, emphasis is given to lung defense mechanisms.

Jan 1, 1998

By B. J. Vorster

AngloGold South Africa region currently consists of 12 Gold Plants. These plants use a combined total of $20 million of cyanide per annum. Of this, the .major portion (60%) is consumed at two Ergo dump retreatment plants. Historically the primary motivation for cyanide control at Ergo has been one of leachlcost optimisation. However, more recently, with the increased public awareness of cyanide in the environment, a secondary but increasingly important motivation for control has been to ensure that only the minimum amount of cyanide is added to the process whilst not compromising leach performance. Following a brief overview of the Ergo process, the methodology in detennining the amount of cyanide to be added is described. The paper then traces the developments in cyanide control from very basic? manual systems to the current automated control system. In line with the increasingly sophisticated control systems, developments also took place in regards to the method of cyanide analysis. The development of these analysers is also discussed. Whilst cyanide is one of the major drivers, if not the major driver of gold dissolution, it cannot be viewed in. isolation particularly with respect to the relationship between cyanide and oxygen as ascertained from the Elsner&apos;s well known equation. Consequently, in order to control cyanide addition, knowledge of the relative cyanide/oxygen profiles is necessary. Various means investigated at Ergo for pulp oxygenation have therefore been included for the sake of completeness. Finally a comparison is made of the control achieved from the current system compared to the? original manual system. The knowledge and experience gained at Ergo is now being used to draw up guidelines for the installation and optimisation work at the other AngloGold plants. The net effect of this will be reduced cyanide consumption for the region, which also, apart from the obvious economic benefit, translates into a reduced environmental; risk.

Jan 1, 1998

By Harrison AT, Smart RM

Backfill systems using unconventional cementitious hinders have been successfully used in relatively deep and hard rock tabular mines for longwall, scattered stoping and shaft pillar removals. Two unconventional cementitious systems are discussed: 1. A ground granulated blast furnace slag (GGBS) with an activator containing lime. This has been used with a total tailings &apos;stable&apos; slurry at a relatively low dosage of less than seven per cent, by mass, based on dry solids. The room and pillar stopes supported with this fill were up to 20 in high and the tailings were relatively high in pyrite. .\ GGBS binder plus a silicate based activator and gelling agent that virtually eliminated all water drainage (and hence post filling shnnkage). The system used a slurry, but the addition of the ;iutivator created a final placed product that had the behaviour of a paste. The system has been successfully used for almost ten years in the following applications: ò sloping widths (mining heights) above 1.6 in; and ò shaft pillar removals in seismically active areas at the end of the life of the shafts. \This paper discusses the technical merits and costs of the systems and compares them to other fill systems (including true paste systems).

Jan 1, 1998

By B. W. Cavender

Capital investments are made for a variety of purposes, from providing incremental capacity at existing operations to developing and implementing new technologies intended to radically improve a company&apos;s capabilities. These projects generate very different business opportunities and create value in distinctive ways. For incremental improvements, the capital budgeting process assures at least a loose fit between short-term goals and readily available resources. However, the criteria used to evaluate capital projects often prevent a company from committing to more aggressive goals that lie beyond the firm&apos;s current abilities or resources. Such projects may not have clearly identifiable future cash flows, and the degree of interaction with other projects and the nature of the risk incurred may be difficult to estimate. Additionally, by focusing only on quantifiable benefits, the budgeting process often fails to recognize "soft" improvements such as increased operating flexibility or new knowledge generated by such projects. By rejecting these projects, the capital budgeting process may actually harm the company&apos;s future competitive position.

Jan 1, 1998

In October 1993 it was decided to undertake the fourth phase of mining at Big Bell. This decision followed the exhaustion of open pit reserves in January 1993. Two stages of mining were proposed for the new underground mine. The initial stage would mine the remnant ore, consisting of the rib and crown pillars and lower grade ore on the hangingwall and footwall side of the old open stopes, which were mined from the 1930s to 1950s. Most of the old open stopes were backfilled with either deslimed mill tailings or development mullock, both of which were economic to recover. However, the mineable ore from this resource was difficult to evaluate. The second stage focused on mining ore outside the remnant areas and was initially proposed as a Core and Shell method under a caving hangingwall. This method has since been superseded with sublevel caving, in part due to the very high and deviatoric stress conditions encountered at Big Bell and the relatively long mining cycle required for open stoping. The problems and challenges discussed in this paper will cover the identification of remnant ore reserves, dewatering the old workings, and remnant mining.

Jan 1, 1998

By Ian Hutchison, Michael C. Salmon

TRC'S INNOVATIVE EXIT STRATEGIES™ FOR MINE CLOSURE , MINE "EXIT STRATEGIES™", WHAT IS AN EXIT STRATEGY™?

Jan 1, 1998

By Terry McNulty

DOUG HALBE: I&apos;ve decided that we&apos;re going to change tactics here and we&apos;re going to be nice to people from now on. [Co-chair makes gesture of intense disbelief; laughter] I&apos;ve also decided who&apos;s not going to be a co-chair next year. [laughter] We thought we&apos;d get a couple of experts for our next presentation: some people with a lot of experience. We&apos;ve asked them to tell us some of the things that all of you operators out there might be able to apply immediately to your plant. Our next two speakers have a tremendous amount of experience, and I think you&apos;ll find what they&apos;re going to say is highly pertinent to most plants. I looked through their paper and found some things that I could have used in the plants I operated in the past. Our first speaker is Terry McNulty. A lot of you know Terry. He was with Anaconda for a number of years as director of research. He then was president of Hazen Research. I&apos;m going to continue with our new custom of saying nice things. Terry is the guy that I call when I don&apos;t know something, and he&apos;s always got the answer. SPEAKER: Who do you work for, Doug? [laughter] DOUG HALBE: Remember that we&apos;re being nice to people here, Joe. I know that&apos;s a stretch. [laughter] TERRY McNULTY: Thank you, Doug. I&apos;m a little bit mystified by this sudden switch of tactics just before I get to the podium. Doug&apos;s been a good friend for a lot of years so I guess I do have to be nice. I won&apos;t say anything deprecatory about him, but I would have to comment that the observations made by earlier speakers have been far too generous. [laughter] During nine years of consulting as a mineral processor and extractive metallurgist, I have often conducted audits of the performance of client&apos;s plants. Usually these audits have been ordered by the plant management in hopes of identifying opportunities for improving processing efficiency or reducing costs. Some of the audits, however, have been financed by the Electric Power Research Institute (EPFU) and member utilities with the objective of

Jan 1, 1998

By Scott Lawson

BOB FALCONER: Our next topic leader is Scott Lawson. Scott is manager of human resources for Independence Mining Company, Cripple Creek and Victor Gold Mining Company, Victor, Colorado. Scott has 25 years of human resources management experience in the mining industry, surface and underground, precious and base metals. His topic this morning is "It&apos;s the Employee That Counts." SCOTT LAWSON: When reviewing the topic of productivity in a union versus nonunion workplace, we need to look at who, and not what, can make the difference in ensuring the success of a production-oriented operation. It&apos;s not explicitly whether the property is unionized or not, but whether the employee team (including the "management group") is working together to accomplish common, shared, and meaningful goals. The bottom line is what action or actions can be taken to develop trust and to strengthen working relationships that challenge and compel employees to willingly share their particular areas of expertise. I want to share a real-life experience that happened to me during the summer of 1961. Perhaps some of you will be able to relate to the following story. I was an 18-year-old fresh out of high school, ready for my first true work adventure. I found summer employment for myself and two friends with the New York Central Railroad in Cleveland, Ohio. Our jobs were as laborers, laying ties and rails, and unloading ballast. We made $2.62 an hour. We were fat cats! My friends and I took on the job with a great deal of vigor, to the dismay of our fellow workers. These workers were unionized by the Railway Workers, which I believe were affiliated with the Teamsters. Talk about being naive, we wrote the book in 1961. When we took the jobs, we did not realize the employees were represented by a union, even though we didn&apos;t think they worked too hard. Within our first two weeks of work, we established new daily records for laying virtually twice as many ties as had been standard, and we nearly tripled production by the end of our hall of fame railroad careers. We even took naively to the next level by lining up the ties for our afternoon work shift during our lunch break. In 1961, we thought we were the Mantle, Maris, and Colavito of tie laying. For the younger set in the audience, we would have felt like the McGwire, Griffey Jr., and "The Big Hurt" Thomas of tie laying. A section of the union contract allowed for a 60-day probationary period during which the employee was evaluated and also exempt from joining the union. I will venture to say that, to none of your surprise, on day 60 we were asked to join the union, and on

Jan 1, 1998

By DV Boger

Rheology is the science which deals with the deformation and flow of matter. Thus nccology is concerned with the flow of any material. The mining industry is concerned with digging things out of the ground, extracting the good stuff and throwing away the had stuff. In the upgrading processes associated with mining, is mineral processing, wet techniques are used where the primary material being handled is a particulate fluid, ie a suspension. After the processing operation, with the concentrates extracted, what is left behind generally is a wet material in suspension form, which may or may not contain reagents harmful to the environment. The amount of waste generated in any of the mining processes is large, in fact, the mining industry is the largest generator of solid waste in Australia. In order to minimise the waste generated within the industry it has become of interest to handle the particulate fluid wastes, or suspensions, at high concentrations, thus removing water and some of the reagents which may be harmful to the environment. The resultant highly concentrated suspension is a non-Newtonian hold Rheology deals with the flow of non-Newtonian fluids; therefore i combination of rheological understanding of high density suspensions. ill conjunction with an understanding of the environmental problems hero&apos; faced by the mining industry, can and has led to improved methods of waste disposal in the industry, ie waste minimisation. This paper describes the progress that has been made in the development of dry disposal technology in the mining and minerals industry in Australia.

Jan 1, 1998

The author reviews design evaluation theory and existing optinustion tools and then describes how these have guided recent developments in Whittle Programming&apos;s strategic mine design package: Four-X. A new package - Reserve Estimator is also d

Jan 1, 1998

Editor&apos;s note: Biographical information about Ihor Kunasz, president, Newmont Uzbekistan, can be found in the February 1998 issue of ME, page 94 and in the May 1996 issue, page 92. Your personal assessment of the minerals business. Gosh! When I think about what has happened to the minerals industry over the past 27 years that I have been a member of SME! There have been fundamental structural changes in the industry. And I think that SME has been quite successful in coping with these changes as well. There has been a reorientation in how the minerals industry does business. It used to be called rationalization. Today we call it reengineering. In addition, the minerals industry has become more complex and more global. Shareholders have become more vocal and demanding in the management of the business, asking for protection of their shareholders&apos; value. In the 1980s, a fundamental change was precipitated by a merger and acquisition fever in all industries, including the minerals industry. Raiders such as T. Boone Pickens put enormous demands on companies that, in turn, had to spend substantial management time to fend off the raiders. This resulted in a major restructuring of the mining houses. Today, for example, Anaconda, Kennecott and Amax are only historical names.

Jan 1, 1998

By Harry L. Siebert

Pre-splitting was substituted for line drilling to achieve stable rock slopes and reduce excavation beyond the pay line on a Connecticut highway project in 1962-63. Changes have occurred in developing rock slopes that were not foreseen by Alan Bauer and Jim Scott who in the early days understood the relationship of explosive energy to stable slopes. Cushion blasting as currently used produces slopes designed to blend or complement the natural landscape with slope holes detonated after the main body of holes. Pre-splitting is the opposite. The best results have been achieved by detonating the pre-split line of the holes first to allow readjustment of the slope plane fracture and a separate blast for the main body of loaded holes.

Jan 1, 1998

By André. C. Louw

Diamond production from the reworked beach and river channel gravels along the west coasts of South Africa and Namibia is well known throughout the world, not only for the exceptional quality of the diamonds, but also for the sheer scope of the operations. To date an estimated 140 million carats have been produced from the resource worth some US$40 billion in today&apos;s money terms. It is therefore not surprising that it didn&apos;t take long before the attention turned towards the possible extension of this valuable diamond resource on similar submerged beaches in the adjacent territorial waters of South Africa and Namibia. This has proved to be a very successful move as the marine production in Namibia today constitutes 48% of that country&apos;s total diamond production. Although small scale recovery of diamonds from the sea commenced in the 1950&apos;s, the first large scale production came from the operations of the Texan entrepreneur, Sam Collins, in the 1960&apos;s. The De Beers Group, which took over Sam Collin&apos;s operations in 1969 had all the concession areas, as well as the financial and human resources to tackle the new mining frontier in the correct way by years of data gathering (ie diamond reserves and seafloor terrain studies) before commencing with large scale mining operations in the 1980&apos;s. Those who are familiar with the beach mining operations along the South African and Namibian west coasts will have appreciation for the daunting task of surgically removing the payable portion of diamond deposits from the non-payable material on the one hand, and the complex uneven fractured and gullied bed-rock floor of the deposits on the other hand. Not to mention the additional complexities of large boulders and hard calcretised diamond gravel layers (conglomerate) which are sometimes associated with the deposits. It was a natural development that the sea diamond mining operations were approached with the known information of the land operations, attempting to duplicate land mining operations in the sea, but taking cognisance of the variations of the terrain in the different areas. For instance, we encounter the following variations, and combinations, off the Namibian Coast. ? Close inshore - holocene sand cover often masks large areas of potentially diamondiferous gravels. ? In midwater areas (40m - 100m)

Jan 1, 1998

Jan 1, 1998

By L. Alan Weakly

The Powder River Basin is the largest strippable reserve of compliant coal in the United States. It is the mother lode, for this Basin is currently supplying 25 percent of the coal produced in the US annually. This paper updates what has happened in the Basin since 1993 in terms of increased production, higher productivity, changes in mine ownership, safety statistics, new equipment, latest coal technologies, and electrical deregulation ramifications.

Jan 1, 1998