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Jan 1, 1997

By D. K. Dysinger

Capital resource budgeting is the means by which 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 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. The accuracy and reliability of forecasting determine the soundness of capital investment decisions and, ultimately, determine the value of the firm. The present paper will explore tools for forecasting the spot market price of a commodity, silver, to demonstrate the difficulty and uncertainty involved in forecasting the future. The commodity price is only one of a number of components of the cash flow equation. Each component has a unique and uncertain future and must be individually analyzed and forecast to arrive at a robust cash flow model.

Jan 1, 1997

By D. E. Walsh

Over a period of seven years (1989-1996) the Mineral Industry Research Laboratory (MIRL) University of Alaska Fairbanks, has investigated the effects of temperature, residence time, and particle size on the degree of low-rank coal (LRC) upgrading for a non-evaporative, hydrothermal drying process, also known as hot water drying (HWD). Three Alaskan LRCs were used in this study: Usibelli coal (Seam No.4) from the Nenana Coal Field, Little Tonzona coal from near McGrath, and Beluga coal from the Beluga-Yentna field on the west side of Cook Inlet. Replicated, factorial tests were conducted. Experimental results indicate that most of the low-rank coal upgrading via HWD occurs rapidly within the first 10-20 minutes of residence time. Thereafter, the upgrading process slows down and over 100 minutes of additional residence time are required to produce similar percentage increases in coal properties to those achieved in the first 10-20 minutes. The properties of the hot water dried products were very sensitive to process temperature. Calorific value, carbon and oxygen contents, equilibrium moisture levels and Hardgrove grindabilities all appear to change linearly with temperature within the 275" C to 325" C range.

Jan 1, 1997

By Stephen M. Voynick

Two hours driving time west of Denver, CO and 21 km (13 miles) north of Leadville, Bartlett Mountain rises 4,065 m (13,337 ft) high in central Colorado's Tenmile Range. Bartlett Mountain is one of Colorado's most recognizable peaks, especially when the late afternoon sun casts a surreal, reddish light across its most prominent feature - the Glory Hole. This is a gaping, half-mile-wide, 245-m- (800-ft-) deep crater. Created by subsidence from 60 years of massive underground mining, the Glory Hole is a monument to the Climax Mine, one of the great achievements in American mining and metallurgy. For most of this century, the name Climax has been synonymous with brilliant mining engineering, innovative metallurgical research and entrepreneurial promotion of a once-obscure metal - molybdenum. Climax overcame an array of economic, technological and social problems to become a model for underground development of massive deposits of low-grade ores. It is one of the few mines in the world where cumulative production is measured in the billions of dollars. The Climax mineralization was emplaced 30 million years ago. Magmatic intrusions formed a large, mineralized stockwork within the granite country rock of Bartlett Mountain. Associated hydrothermal events forced superheated metal- and quartz-rich solutions through fracture zones, silicifying the country rock and depositing huge amounts of molybdenite, or molybdenum disulfide. The mineralized rock, a light gray, finely crystalline, silicified granite, is laced throughout with blue-gray quartz veinlets containing molybdenite. Although the richest ores graded only about 1% molybdenite, the Bartlett Mountain deposit contained more than 2.7 Mt (3 million st) of elemental mo- lybdenum.

Jan 1, 1997

By Robert Smith

Deposits are global, said Barrick Gold's Smith. This means that the mineral industry, by necessity, is global. "Manufacturers have considerable freedom to decide exactly where they wish to produce whatever it is that they sell," he said. "What we sell, on the other hand, must be produced where nature chose to lay it down. The question is not so much, whether to go global, as when to do it and how to go about it." The timing of international expansion depends on external factors, often political, Smith said, and on internal ones that relate to the company's size and stage of development. "In deciding how to expand, a company is largely deciding how to adapt its existing business strategy to activity on the world stage," he said Barrick entered 1997 with 1.58 kt (51 million oz) of reserves, Smith said, annual production of 93.3 t (3 mil- lion oz) and cash flow of $463 million. Reserves in- creased 40% in 1996 and production will begin to rise again significantly in 1999. "We believe our fundamental strategy is responsible for our early development and subsequent success," he said. Barrick entered the gold-mining industry in 1983. Its corporate mandate was to create shareholder value, Smith said. From the beginning, the company took a different approach - businesslike, entrepreneurial, strategic and focused. "Many mining companies start out with a technical team and develop business and financial expertise thereafter," Smith said. "In 1983, Barrick had the business people, and then moved into mining." First, it acquired part interest in two small operations, one in Alaska and one in Ontario. Then, in 1984, it merged with Camflo Mines, which operated a low-cost underground operation in Quebec.

Jan 1, 1997

You have been involved with research activities in froth flotation and size reduction. What do you think the future holds for these technologies? Froth flotation and size reduction are essential processing steps common to almost all current mineral-processing operations. The most significant recent advances in both of these technologies have been in the increased size of equipment and in some alternative machine designs, such as the column cells and the high-pressure roller mills. I believe that the next major area of improvement in size reduction will be at least partially driven by an improved awareness of controlling the conditions that influence the efficiency of particle breakage. This would include factors such as water-chemistry influences, the influence of fines from classification, chemical grinding additives and better rheology control. In froth flotation, significant changes are currently taking place in the plant use of frothers. Also, there will be an increasing number of new collector chemistries for certain types of flotation, such as with oxide minerals, oxidized mineral recovery in sulfide systems and improved selectivity with certain sulfide mineral systems. You have been active in implementing new engineering technology in industry. What do you think will be the technological future of mineral processing? Being involved in the invention and industrial implementation of new technology has been one of the most positive experiences of my career. I also have had the unique experience of working in the chemical and petroleum industries as well as in mineral processing. In my opinion, the future of mineral processing will be an exciting, wonderful work area in which to be involved. The development of new technology in minerals processing offers a special challenge compared, for example, to that of chemistry or chemical engineering. In successful industrial innovation involving minerals, having a sound theory is not enough. Instead, what is required is a valid blend of a good idea, meaningful laboratory characterization and, most key, the experience necessary to adjust the plant in such a way to incorporate the idea. The complexity of engineering systems that contain solids, liquids and gases, as well as highly variable natural mineral properties, means that nothing new comes easily. In some cases, it has been difficult to explain how processes practiced in industry for decades actually work, in terms of physical and chemical fundamentals. On the other hand, when a new idea is successfully implemented, the economic and professional returns can be very rewarding. I know of no more challenging field of engineering than minerals processing. What is your view of the future of the minerals industry in general? The need for minerals, metals and coal will be with us for decades to come. In many aspects, the minerals industry became global much earlier than some of the other industrial sectors that are currently experiencing globalization. I believe that fair international competition is beneficial to the users of minerals, metals and coals and to those involved in producing such materials. The key word here for a global economy to work is "fair." So the various playing fields involved such as finance, profit return, regulation and labor should be relatively level for all the players involved. Competition is an amazing driving force for innovation. This has been true in the minerals industry during the last few decades. The mining industry is producing more at less cost per unit than ever before in our history. I anticipate that this trend will continue as long as the global political situation remains relatively stable.

Jan 1, 1997

By Mike Higgins

"The purpose of mining and its related industries is the removal of, and usually the subsequentprocessing of, material from the earth. This includes mining for minerals, quarrying for stone, and civilexcavations. Where this involves rock, the most common method is to fragment the rock by blasting. "

Jan 1, 1997

By Peter Duniam, Vivian Patz

History of the ExEx 1000 CAB system. l What we’ve learned using electronic timing. l Requirements for a second generation. EDD system. l The ExEx 2000 system - simple, versatile and cost effective

Jan 1, 1997

By Robert L. Martin, Brian W. Stump

"The Black Thunder Mine is located in the Powder River Basin of Northeastern Wyoming. Over 39.2million tons of coal were produced at the Black Thunder Mine in 1996. Just over 100 million pounds ofANFO/Emulsion blend were consumed in that same year. Currently around 30% of the overburden is cast to final with the use of explosives. With plans for a mine expansion, explosives will continue to play a very vital roll well into the future."

Jan 1, 1997

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Jan 1, 1997

By Dan Witkowsky

In an increasingly environmentally conscious world, mining's importance to society has often been misunderstood and even maligned by the public. Extreme and impractical ideas have often been presented to children because of the lack of accurate, timely resource materials available to educators. In the late 1960s. two mining engineers, S.P. "Pi" Warren and C.L. "Lindy" Barker, became aware of this situation. They proposed to develop a summer field course to provide a factual overview of the minerals industry for teachers. The pair believed that teachers could become better informed to educate students, and future generations, about mining. These two Colorado Mining Association (CMA) members felt that such a course could reduce much of the misunderstanding about this vital industry. This could be done by providing a balanced perspective of mining, not only for kindergarten-through-grade-12 teachers, but also for the students they would be teaching during their careers. Students who better understood the minerals industry could better formulate an unbiased view of it. The course would seek recognized authorities from industry, academia and government who would lecture in their respective fields of expertise. The course would provide a total concept of the coal, aggregate, metals and industrial minerals industries. It would include geology, geophysics, exploration, mining, processing, marketing, product applications, economic, mining history, careers, and environmental responsiblity. When possible, site visits would permit educators to view operations and to meet the men and women who are industry leaders. Teachers would pay a small tuition fee. The balance of the program expenses for each teacher would be paid through scholarships provided by industry and individuals. The "total concept" idea obtained the support of the minerals industry. The support of CMA's Education Committee and the Colorado School of Mines (CSM) was obtained in 1968. Colorado's Commission on Higher Education approved teacher recertification credits through CSM's Office of Special Progams and Continuing Education for those successfully completing the program. The first six-week series of classes presenting the total concept of the indus¬try was held at CSM in 1969. In 1977, the CMA Education Foundation Inc. (CMAEF) was established as a Colorado nonprofit corporation. The "Total Concept of the Mining Industry" (Total Concept) course was placed under its sponsorship. CMAEF is dedicated toward this continuing education program (Table 1). In 1994, the course was streamlined to four-weeks for six hours recertification credit.

Jan 1, 1997

By Mitchell Gordon

Two mineral processing facilities in North America required near terminal density slurries to perform de-bottle necking in their circuits. The installation at Barrick Goldstrike to ensure efficient oxidation conditions and throughputs in the refractory ore treating autoclaves. The Kidd Metallurgical Division unit to provide a steeper tailings slope to extend the life of the existing tailings dam. To achieve these goals, both operations selected a Supaflo "High Compression" Thickener following on site pilot plant evaluation. Commissioning and the first year of operation is reviewed. Operating data is compared with the pilot plant data. In particular, unusual doughnut formation at Goldstrike and the effect of temperature on the terminal density at Kidd Metallurgical Division are discussed.

Jan 1, 1997

By Bure R

Approximately 2.4 million ounces of gold and 11.3 million ounces of silver have been produced from the Umuna Lode by Misima Mines Pty Limited between June 1989 and the end of Decemeber 1996. Reserves remaining at the end of December were 32.1 million tonnes at 1.0 gram per tonne gold and 9.7 grams per tonne silver. To attain precious metal production of this volume, an estimated K60,000,000 (1996 Kina) was spent on exploration alone. from the 1940s to the present day. Exploration expenditure for the 1996 calendar year was approximately K4,400,000. With such a large investment in exploration, large quantities of data were generated and stored in various forms. To make best use of this data, it was necessary to organise and systematically store this data in a form compatible with a modern Geographical Information System (GIS). The Umuna Lode on Misima Island is a low sulphidation gold- silver deposit dated at 3.5 ¦ 0.2 Ma. The deposit is controlled by the 50 to 100 metre wide Umuna Fault- a moderate dipping, brecciated clay- chlorite- carbonate altered, normal fault zone. There is approximately 230 metres of mostly dip slip offset on this fault, which is measurable by the offset of the Cretaceous schist, marble and greenstone host sequence. Late Miocene microdiorite spatially related to the Umuna Lode does not appear to be genetically related to the gold- silver mineralisation. GIS was introduced to Misima at the end of 1995 and until recently has been mostly used for data storage and retrieval, the over- laying of various data sets to assist in targeting prospective areas, and as a drafting tool. The use of data-driven, predictive data analysis is the most recent effort in maximising the use of the extensive Misima database. By characterising the key controls and properties of the Umuna- type mineralisation, a Weights of Evidence, data-driven analysis produced a prospectivity map of Misima Island. The purpose of this map was to identify prospective areas yet to be explored and to assess the effectiveness of exploration to date.

Jan 1, 1997

By Andrew J. Neale, Chelvan Veloo

P.T. Freeport Indonesia currently operate a 600,000 t/d mining and 125,000 t/d milling operation in the remote highlands of Irian Jaya, Indonesia. The isolated location and generally difficult working conditions make for challenges not encountered in most North American operations. In spite of this, the mill technical groups have been able to develop and maintain a highly effective level of plant wide automation. This has been achieved through the appropriate selection of available technologies and the implementation of innovative management practices. This paper provides an overview of the control systems currently installed and focuses on those practices which have resulted in the long term success of process control at Freeport.

Jan 1, 1997

By Anievas JB, Sevillano AC

This paper describes the acquisition, exploration, development, initial operation and subsequent financing of the Bulawan mine by means of a listing on the Toronto Stock Exchange of a subsidiary of the parent company, Philex Mining Corporation.Located on the island of Negros in the Philippines the property is unique on at least two counts: it is a disseminated gold deposit that occurs in a region of predominantly porphyry copper mineralisation; and it is a gold deposit that is mined by a bulk method of extraction (front and block cave) instead of the normal selective mining methods.

Jan 1, 1997

The Australasian Institute of Mining and Metallurgy (AusIMM) is a professional society for all those associated with the activities of the mineral industry. Differences of opinion exist within the membership of the AusIMM on the role it should play in the future as a professional society in a changing industry and world environment. This same dilemma is concerning other professional societies of which the author is a member. Some of the activities and priorities of the AusIMM are reviewed in order to clarify a frequently expressed opinion that it identifies with and supports industry at the expense of representing the interests of its individual members. By definition and by action this is certainly not the case and it is concluded that all activities whether seen to be industry or member orientated serve to benefit both. The AusIMM plays a most important role in integrating and promoting the interests of all sections of the mineral industry whether corporate or individual and the Presidential activities in education this year provide an excellent example of this.

Jan 1, 1997

Jan 1, 1997

By Skinner W, Netting A. K O

Surface analysis of ore samples collected from corresponding concentrate and tailings process streams is now a widely used tool in many Australian base metal sulphide concentrators, particularly those involved in AMIRA projects. The use of tec

Jan 1, 1997

By I. S. Parrish

As noted by McKinstry (1948), "How to deal with erratic high samples is one of the knottiest problems in ore estimation." He described a variety of approaches and methods to alleviate the problem through the averaging and weighing of assay data and by "cutting" or "clipping" of the erratic assays. Bird (1991) elaborated on ways of dealing with the nugget effect (erratics). He listed several procedures for cutting. Bird's list has been reproduced and/or added to by several authors including Vallee (1992) and Stone and Dunn (1993). Missing from each of these otherwise excellent reviews is a definition, description or guideline to recognition of an "erratic," or just where or when cutting is warranted or justified.

Jan 1, 1997

By Wayne J. Nordstrom, Dennis L. Murr, James E. Wennen

National Steel Pellet Company (NSPC) conducted pilot scale testing and computer simulation studies which indicates that the capacity of the secondary grinding mill could be increased and that concentrate grade improvement could be expected with improved classification in the grinding circuit. Based on these studies, a decision was made to modify one secondary ball mill line at NSPC to include both cyclone and screen classification with magnetic separation applied to the circulating load. This paper will briefly discuss the studies leading to the decision to modify the circuit, the design of the modified circuit and the initial start-up and operating experience.

Jan 1, 1997