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By K. S. Radcliffe

Results are presented for the first phase of an experimental program to study the feasibility of using acoustic velocity for predicting the state of stress in a rock mass. Compressional wave velocities were determined axially in cylindrical samples during uniaxial compression for several rock types conditioned in dry and water-saturated environments. Results indicate that in rocks containing compressible voids or cracks, substantial velocity change occurs with the application of stress in the lower (below 100 MPa) stress regime. The effect norm- ally is nonlinear, however, and diminishes to asymptotic values when cracks or voids become closed or with saturation. Empirical prediction equations were derived for each rock type by linear and nonlinear regression analyses, and correlation coefficients were calculated to determine the equations that best fit the stress- velocity data. The operational range for predicting stress using compressional-wave velocity appears to be within the range of vertical stress expected in most shallow to intermediate depth mining operations (less than 1,000 m). Based on the experimental results to date and theoretical considerations, it appears that the technology can be advanced to predict in situ stress based on acoustic P-wave velocity determinations in most mining situations.

Jan 1, 1986

By J. A. Bos, Z. Dai, P. Quinn, A. Lee

A flowsheet is being developed for processing Thompson ultramafic low-grade nickel ores. This type of ore is characterized by high content of serpentinized magnesium silicates which generate slimes during comminution. Flotation of this type of ore proves difficult due to problems associated with the slimes. The flowsheet, based on extensive laboratory and miniplant flotation tests, consists of two key components: desliming by hydrocyclones prior to flotation and using soda ash for pH control in flotation. Satisfactory metallurgical results have consistently been achieved in laboratory full circuit simulation and miniplant tests.

Jan 1, 2009

By F. Schreiter

"One method to increase the exploitation rate of a mine is the use of backfill with residual materials in exploited areas. The backfilled material is meant to support both, the walls of galleries and pillars as well as the roof of mining openings. With increasing depth, the exploitation rate diminishes fast, thus the application of backfill in order to change the layout of the mine is crucial for economic success. In result of using backfill, it is possible to change the layout of the working area with a higher ratio to excavated areas and less area occupied by pillars. Thus it is possible to boost the output of a mine by using backfill. Setting the criteria for the selection of the best possible materials and whose improvement, it is useful to know about their qualities and handicaps. The Mining Department at TU Bergakademie Freiberg is analyzing the parameters of residues from different processing methods, accrued in plants of different potash mines and blending different residues for optimization of material attributes. These were significantly characterized by basically parameters like the size and the distribution of different diameters of the grain material. INTRODUCTION The chair for underground mining methods at TU Bergakademie Freiberg is tasked with the sufficient and sustainable supply of economics with raw materials. The steady high demand, the rising prices and the finiteness of the deposits are reasons for the need of an optimized economic utilization of natural deposits, a continuous improvement of mining technics and technology. From an ecological and economical position the best possible utilization of the resources has to be achieved. Many mining operations are by reasons of the deposit not able to haul valuable minerals only, they have to haul a mixture of valuable minerals and waste rock. This hauled combination is given into the processing plant for separation and enrichment of the valuable mineral. The residuals of the processing are commonly dumped to a waste rock pile. For minimizing the size of such a waste rock pile and also minimizing the ecological footprint of a mining operation the only way is minimizing the quantity of accruing waste rock material. Both, optimization of economic utilization and also minimization of waste rock dumps can be realized in one by backfill with processing waste rock material in mined out areas. Especially in mines, mined by room and pillar method, smaller dimension of the pillars are sufficient for safety and stability. By the way less valuable minerals have to be leaved back in the mine and the mine outcome is increasing."

Jan 1, 2015

By David Ulrich Furrer

Materials and manufacturing processing technologies have played an important role in the development and capabilities of nearly all manmade products. Market drivers for fuel efficient, low cost, environmentally friendly, more capable transportation has given rise to significant materials challenges and subsequent developments. The rate of improvement and implementation of new commercial products can be limited by the rate of new materials and process technology development and qualification. As many materials are being designed for unique requirements and even location-specific unique properties, the implementation of tools and methods to enable rapid characterization and validation of material definitions and design systems must also be accelerated. A review of new integrated material, manufacturing process and component designs, engineering processes and emerging tools and methods will be discussed. The linkage of computational materials science and engineering into component design will also be discussed along with the challenges and opportunities for further growth and application of integrated computational materials engineering (ICME).

Jan 1, 2015

By Mohammed Alkazimi, Katie Grantham

The purpose of this paper is to quantify the risk to both the environment and surrounding infrastructure from a pipe sealing implosion. Both accuracy and the precision in determining how a submerged infrastructure damaged by underwater explosions performs provide better decision-making capabilities for managers facing impending oil spills. This determination is vital, especially for both emergency and crisis management teams, as categorized consequences based on both the nature of the structural layout and the surrounding marine environment assist in identifying whether or not the utilization of this technique is applicable. Thus, the decision maker’s aim, in a crisis, is to minimize any associated risk that might result in aggravating the situation by endangering both the infrastructure and marine life. Therefore, the resulting risk matrices will enable technical personnel who are not experts in explosive technologies to be armed with the information necessary to determine if this mitigation technique is applicable to their situation.

Jan 1, 2013

By F. W. Wood

A program of research was conducted by the Bureau of Mines to investigate anomalies in electrical-discharge behavior during consumable-electrode arc melting of titanium and to study the effects of these irregularities on arc-furnace explosions. A major effort was devoted to an experimental survey of arc behavior and a qualitative definition of discharge phenomena.3/ An important conclusion was that the "glow" of industrial arc-melting terminology is not a glow discharge but a skittering arc in a displaced position. The conditions that permit displaced skittering were tentatively defined. The displaced skittering arcs tended to damage melting crucibles in two ways, and details of possible mechanisms leading to crucible rupture and explosive reactions have been proposed accordingly. However, no acceptable means of preventing crucible damage was discovered.

Jan 1, 1961

By Maria I. De Rosa

The U.S. Bureau of Mines conducted experiments for predicting materials' ease of combustion (smoldering onset, smoldering, flaming, and decomposition rates) by means of submicrometer smoke particle characteristics for the development of a simple test method. The experiments were carried out in an approximately 20-L furnace, with a 10-L/min airflow through the furnace for a 14-min duration, at set furnace temperatures of 150°, 250°, and 1,000° C. The variables studied as a function of time were the onset time of smoke particles, time and duration of maximum smoke particle generation, average concentration of smoke particles, and particles' average diameter, mass weight loss, and furnace temperatures. Results show that the onset time of smoke particles is predictive of materials' ease of smoldering, and the time of maximum smoke particle generation and its duration, coupled with mass weight loss, are predictive of materials' ease of smoldering and flaming (depending on the experimental temperatures), and decomposition rates.

Jan 1, 2010

By G Chitombo, A Perryman, A D. Campbell, J White, B Hollis

This paper describes the development and implementation of an optimisation tool developed as part of the Mass Mining Technology (MMT) Project. The tool, known as the SLC Schedule Optimiser, is capable of optimising the schedule of development and production activity for a sublevel cave, given a fixed draw strategy, for the life of the mine.This paper starts by describing the development and production scheduling problem for a sublevel cave, the geotechnical constraint that a schedule of activities must adhere to, and outlines the pre-existing manual planning procedures used to produce schedules.Following this, the paper then outlines the optimisation tool developed, describes the changes to the planning process it has enabled and finally quantifies the improvement to operations this tool has brought using Glencore’s Ernest Henry Mining Operations as a case study.CITATION:White, J, Perryman, A, Campbell, A D, Hollis, B and Chitombo, G, 2016. Life-of-mine development and production scheduling optimisation for sublevel cave operations, in Proceedings Seventh International Conference and Exhibition on Mass Mining (MassMin 2016), pp 133–138 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 9, 2016

By G. Danha, D. Glasser, D. Hildebrandt, N. Hlabangana

"In this work, we apply a method known as the attainable region (AR) technique in order to optimize the milling and leaching process of a low grade gold ore. No work on the application of the AR optimization technique has been done yet on a joint milling and leaching process. The advantage of the AR approach lies in its ability to simplify the optimization problem, as searching over a defined set for the maximum of an objective function is a fairly standard procedure. The objective function we selected was that of optimizing a linear function of the value of the recovered material minus the cost of both milling and leaching. Using the three variables (milling time, leaching time and recovery), we constructed a 3D plot and used it to obtain all the possible recoveries from the different milling and leaching times. The optimum for our chosen objective was then found by overlaying a contour plot of the objective function on the 3D plot. Our results show that the optimum was obtained at 90 % recovery with a profit value of 600, milling time of 30 minutes and leaching time of 1750 minutes.INTRODUCTIONAfrican countries are facing a general increase in demand for electrical power. In South Africa, the demand is now surpassing the supply from ESKOM, the main electric power provider of the country. This has resulted in load shedding strategies being implemented in many local communities in an attempt by ESKOM to cope with the high demand. A potentially better approach is to propose use of energy efficient technologies in the country’s largest power consuming industry; the mineral processing sector.In mineral processing, milling is the highest consumer of energy. The objective of carrying out milling is not merely to reduce the particle size of the feed material, but also to liberate the constituent minerals that make up an ore. This is done so that valuable minerals can be separated from the gangue, in downstream processes, such as leaching. However, the milling process is generally performed relatively poorly, and at a considerable expense in terms of electrical power utilization. Tomanec and Milovanovic (1994) estimated that milling accounts for more than 50 % of the total power used in the concentration process, but this can rise to as high as 70 % for hard or finely dispersed and inter-grown ores. Apart from being relatively wasteful of energy, the milling process is also inefficient with regard to mineral liberation because of the indiscriminate nature of the grinding force."

Jan 1, 2016

By George H. Edwards

Most cullets consumed in large-volume glass manufacturing processes receive little processing beyond crushing. But lead-glass cullets for specialty glasses such as industrial lighting refractors or cathode-ray tubes are combined with metals and various coatings that prohibit their direct recycling into the glass-melting processes that created them. In many cases, the contained lead renders these cullets hazardous. At present, virtually all industrial processes to separate one cullet from another depend on hand sorting, and thus are necessarily costly per unit weight. Lead-glass cullets of differing lead content are of interest because they offer the possibility of separating one glass composition from another by high-speed, automated processes at low cost. A potential process for comminution, cleaning, and separation of lead-glass cullets would involve primary and secondary crushing, magnetic and other metals separation, attrition scrubbing in water, separation of glass types by gravity techniques, drying if necessary, sampling, and preparation for transport to the point of use. Process water would be filtered to remove finely divided coating materials and glass, and reused. If carried out on a scale similar to a specialty industrial mineral processing plant, the cost per unit weight of such processing should be substantially less than the raw material value of the cullet in specialty glass production. The added value of avoiding waste disposal costs makes this process economically attractive.

Jan 1, 1994

By Low Russell

Mark Westfield, writing in The Australian on 16 May 1994 stated: The role of the independent expert is crucial to Australia's investment system. When it falls down, there can be very dramatic consequences. The scope of these consequences was dramatically illustrated in the decision of Rogers J. at first instance in Cambridge Credit Corporation v. Hutcheson (1983) 8 ACLR 123 when the auditors of the failed company were found liable for breach of contract and faced a damages award of $145 million, well in excess of their insurance cover. No comfort should be sought in the fact that this decision was overturned on appeal, for the result of the appeal rested on whether there had been a causal connection between the breach of contract which had occurred and the loss suffered, rather than on the fundamental principle of auditors' liability. Thus: Those who prepare experts' reports in company cases carry a heavy moral responsibility, whatever their legal duties may be... Unless high standards are observed by those who prepare these reports, there is a danger that systems established for the protection of the investing public will, in fact, operate to their detriment through reliance placed on those reports and on the reputations of those who furnish them. In lending his name, the expert will often, as in this case, be lending a name to conjure With.

Jan 1, 1995

By Alex Luyima, Jaan Kers, Lifeng Zhang

"The pyrolysis of PWBs was investigated by a TG-DTA-MS furnace at 300–1173 K. The kinetics and the control of emitted gas during the pyrolysis of PWBs with and without chemical additives were studied. Moreover, the possibility of controlling the amount of toxic exhaust gases like HBr, C6H6, Br2, Cl2, HCl gas and recovering beneficial gaseous fuels like CH4 and H2 from pyrolysis process is discussed. The MS data for each PWB sample were examined as a function of temperature and particular m/z values could be associated with the mass loss steps in the TG data. The degradation of the organic material was characterized by m/z = 2, 16, 18, 28, 36, 44, 71, 78, 81, and 160. Fe2O3 was the best inhibitor of toxic HBr and C6H6 when compared to Al2O3, CaO Y-zeolite and ZSM-5. Moreover, it had no significant effect on the valuable H2 and CH4 gas evolution. This selective inhibition of toxic gases while maintaining the valuable ones make Fe2O3 the best candidate among the investigated additives in controlling gas emissions from PWB pyrolysis process.IntroductionThe electronic and electric industry is one of the world’s largest and fastest growing manufacturing sectors. As a consequence of this growth, electrical and electronic waste (e-waste), such as computers, washing machines, printers, mobile phones, television sets, stereos, radios, etc., is generated in large quantities around the world. Printed wiring boards (PWBs) are a common component of many electronic and electric systems.[1]. The rapid development and expansion of the electronics industry over the past several decades have led to a dramatic increase in the production of PWBs and a corresponding increase in the amount of waste generated from both production and disposal. The environmental impacts of the treatment and recycling of PWBs waste have become a major concern [1-2]. PWBs are particularly problematic to recycle because of the heterogeneous mix of organic material, metals, and glass fiber [1]."

Jan 1, 2012

By Saravarim A.

"The aim in flotation systems is to control the grade and recovery of the product., numerical method or sampling and analysis is used to achieve this goal. Weakness of measuring instruments, lack of process knowledge, deficiencies in management and data processing in the control of flotation cells, has led the academic and industrial units to use numerical models. In this regard, using the results obtained from the experimental design carried out in the DTP line of Gol Gohar industrial and mining complex, a regression model was developed based on the analysis of variance. To present this model, after variance analysis of factors and interactions, all models were investigated and the final model was created based on 75% of the data. The model was tested with the remaining 25% of the data to confirm the goodness of the fit. The coefficient of determination for training and testing resulted 71% and 74%. Moreover, a feed forward back propagation neural network with different layers and neuron was used to model the results. The best network structure was 6-27-1 and the coefficient of determination for this network was 99% and 98% for training and test respectively. Given the complexity of neural network models and the relatively low accuracy of the regression model, neural network has a priority assuming we have access to a specialist. In addition, the results obtained from neural network can be used as expert systems to control and optimize the flotation cells.INTRODUCTIONThe primary objective of the flotation cell control is to maintain the product's (in this case tailing) recovery and grade, which represents the index for process efficiency and product quality. Continuous estimation of these indexes requires a significant amount of maintenance, and calibration of the continuous analyzers, in order to maintain an acceptable level of accuracy. Weakness of measurement equipment, lack of process knowledge and the general deficiency in management and processing of data in the flotation cell control, will lead industrial units to use smart methods such as mathematical models, regression and neural networks in near future (Panahi, Abdollahzadeh, & Sam, 2010). Artificial neural networks are inspired by the very complex structure of human brain in which millions of nerve cells solve problems or store information by communicating with each other. The duty of neural networks learning. It should be noted that learning in artificial neural networks is limited, and what is practically considered is the computing power of the network. A neural network consists of units called neurons, and has the capacity to handle a set of input data to produce a desired output data set. Each of these input and output data sets can be assumed as a vector (Soltanmohammadi & Noparast, 2006)."

Jan 1, 2016

By T. E. Mccandless

Detrital minerals of mantle origin have been found in the Green River Basin of Southwestern Wyoming (Figure 1). Pyrope, pyrope-almandine, and chrome-bearing clinopyroxene and orthopyroxene occur on the antmounds of Pogonomyrmex Occidentalis. These antmounds are a common sight throughout the western U.S., and were used by early paleontologists as fossil mammal collection sites. The mound is composed of two types of material; (1) soil excavated during the digging of the nest below the surface (maximum depth 3 meters) and (2) larger grains collected from the surface and placed on the mound, probably to prevent erosion. The selection of grains to armor the mound seems to be based largely on the mean diameter of the grain, with other factors such as weight, sphericity, roundness and composition in decreasing order of importance (Wheeler and Wheeler, 1963). The minerals of this study happen to fall within that mean diameter range. The garnets are found on the mounds as 3-6 mm diameter subrounded to subangular grains. The pyroxenes are also 3-6 mm in diameter and are most commonly subangular laths. The minerals themselves show evidence of abrasion, such as frosted surfaces and rounded edges. Orange peel texture is present on some of the grains, which suggests that kelyphitic rims were once present, but have been removed. Also, no similar minerals were found in sieved soil auger samples to depths of 2 to 6 meters taken near the antmounds. These observations imply a distal rather than proximal source for the minerals. Lamproitic rocks of upper mantle origin are found bordering the "Green River Basin. The best known are the Leucite Hills, a series of ultrapotassic volcanics found on the north flank of the Rock Springs Uplift (Carmichael, 1967). Minor occurrences of mica peridotite and ultrapotassic volcanics are also found on the western end of the Uinta Mountains in Utah (Best, et al, 1968). None of these rocks are known to contain minerals like those on the antmounds. The garnets are comprised of purple chrome pyrope, red chrome pyrope-almandine, and pink to orange low chrome pyrope/pyrope-almandine. Oxide statistics for these groups are summarized in Table 1. These three groups are distinct when their Cr203 values are plotted against magnesium number (Figure 2). The chrome pyropes are highest in Cr203 (1.28-2.66%) and have high, restricted Mg number values (0.781-0.826). The chrome pyrope almandines have similarly high Cr203 (1.29-2.62%) but a lower Mg number range. The low chrome pyrope/pyrope-almandines have the lowest Cr203 content (0.09-0.73) and the widest Mg number range (0.534-0.836). Using the classification scheme of Dawson and Stephens (1975) the chrome pyropes are most similar to garnets derived from kimberlite and from garnet lherzolite, websterite, and harzburgite xenoliths in kimberlite. The chrome pyrope-almandines and the low chrome pyrope/ pyrope almandines are similar to garnets derived from eclogite nodules (Figure 3).

Jan 1, 1984

By L. I. C. Fernandez, E. B. Ferreira Filho, L. G. Pedroti, L. G. Justino, W. E. H. Fernandes, R. C. S. S. Alvarenga

More and more industries have been concerned with the disposal of the wastes generated in their production processes, once this generates a positive impact, both visual and economic enterprise, no more needing to have resources for transport and final disposal of wastes. In this context, and seen the importance of the Portland cement a sa building material, which aims the creation of an ecological cement from the mix of two wastes, the grits, which is a waste generated in pulp production, and the granite beneficiation waste. It proceeded initially with the chemical and physical descriptions of the wastes. Five mixtures, varying the percentages of the wastes and the preparation method of the raw materials, were prepared. After,the blends were sintered in a muffle furnace at 1300 °C for 15 min, forming new compounds that were compared with national cements, according to the Brazilian technical standards. It was concluded that the sintering of the product obtained satisfactory results, presenting good binder characteristics, however, some parameters were outside the limits for common Portland cements such as rapid setting time, large expandability and low compressive strength.

Mar 1, 2017

By Dan Currie, Tom Lamb, J. Coady Marsh, Gary Landry

"This paper describes the Cape Breton Development Corporation's experience with the Lovat M-300 tunnel-boring machine at the Donkin-Morien Mine. Between January 3 and December 21, 1984, the 7.6 m (25 It) diameter TBM advanced 3350 m (10 990 ft) . The authors will describe experiences with the machine and highlight the implications of tunnelling machines to underground coal mine development in Canada. IntroductionThe Cape Breton Development Corporation (CBDC) has recently completed the drivage of a 7.6 m (25 ft) diameter tunnel, 3.5 km (2.2 miles) in length , to access the Harbour Coal Seam at the Donkin-Morien Project. The tunnel was successfully driven with the first Canadian rock tunnel-boring machine (RTBM or TBM), designed and built by Lovat Tunnel Equipment, Inc. The initial mine development consists of the drivage of two tunnels to the first major coal seam. Future plans are proposed for the development of a 4 million tonne-per-year mine (Marsh et al., 1983, Gillman, 1982), which will require the drivage of a further two tunnels and could access up to four coal seams. The tunnel cross-sectional areas were designed to provide sufficient ventilation area and access for a production of 4 million tonnes per year."

Jan 1, 1986

By R. T. Dec

Current industrial compacting and briquetting practices are largely based on trial-and-error techniques. This paper introduces a two-dimensional finite element model of briquetting process in the roller press. Compared with other modeling techniques used in the past, finite element method offers the most versatile approach because it incorporates adequate information about powder behavior, geometry and frictional conditions and offers predictions for the density distribution, the velocity field, the stress distribution, roll force and torque. More over, when the model includes elasticity, it offers predictions on the internal stress state in the briquette after its exit from the roll. This enables to perform realistic computer experiments which are helpful for establishing the forming cavity geometry and process conditions necessary to produce briquettes with the desired properties. Three forming cavity profiles are analyzed. Results from model are verified on experimental roller press and best cavity profile is recommended for briquetting of sub bituminous coal fines.

Jan 1, 2014

By Peter N. Gabby

A mineral purvey of 40,000 acres of the 42,213-acre Little Humboldt River Wilderness Study Area was conducted by the U.S. Bureau of Mines in 1985 at the request of the U.S. Bureau of Land Management. There are no identified mineral resources but anomalous gold, silver, mercury, and arsenic concentrations were found. The study area is located in Elko County, NV, in the Owyhee Upland geomorphic subprovince. It is underlain by mid- to late-Miocene-age rhyolite, basalt, tuff, vitric ash, and tuffaceous siltstone. On the south side and partly within the study area, a mining company recently (January 1986) located 125 contiguous claims over an area of hydrothermally-altered volcanic rocks that have anomalous surface concentrations of gold, mercury, arsenic, and silver. Anomalous gold-silver concentrations in altered rocks were encountered at several other widely scattered localities in the study area. These elevated metal concentrations and associated hydrothermal alteration indicate gold resources may be present in the study area. A 20-ft-thick bed of diatomaceous earth, which contains 60 to 85 percent diatoms, crops out 0.3 mi north of the study area. Elsewhere, three samples of altered volcanic tuff taken within the study area contain from 46 to 70 percent zeolite (clinoptilolite). The diatomaceous earth and zeolite sampled are not of sufficient quality to compete with materials presently being marketed. There has been no mineral production from the study area, but a caved adit, about 25 ft long, and six prospect pits were found.

Jan 1, 1987

By C Cavern, G Jacobs, F Durufle, L Ameglio

Airborne geophysics and geomatics is at a crossroads as to whether it remains a viable mapping tool, both technically and commercially, and broadens its potential for new applications (eg environmental monitoring, civil engineering and precision farming). The use of small and stable multisensor aerial platforms to conduct highly flexible surveys flown at a low/reasonable cost of operation is a recurrent wish of many stakeholders in the natural resources exploration and mining industry. Through its Fly Light Airborne Geophysics research program, EXIGE and partners have pushed the development and testing of two new airborne carriers with unique capabilities for geo-surveys: GyroLAG’s gyrocopter and Infotron’s unmanned aerial vehicle (UAV). These carriers are the next generation of versatile and innovative aerial vehicles for remote sensing and monitoring. They are rotary, smart tailored, ultra-high resolution manned (gyrocopter) or autonomous (UAV) airborne platforms that combine the merits of dense data sampling, accurate position location, very low clearance above ground or sea level, slow speed, interchangeable and combined multiple geo-sensors, automatic data quality control and real-time quality assurance. They also have the benefits of being highly efficient, cost-effective, commercially attractive, safe, reliable and easy to deploy and operate. Their technical specifications and multiple advantages compared to traditional aircraft and/or ground crews are presented in this paper. An overview of various geo-sensors (magnetic, gamma-spectrometry, visual, near-infrared and LiDAR) carried on-board is also provided.CITATION:Ameglio, L, Durufle, F, Jacobs, G and Cavern, C, 2015. Light airborne platforms for monitoring mines and minerals, in Proceedings Third International Future Mining Conference, pp 11–20 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 4, 2015

By Mark Kennedy, Allan MacRae, Cameron Hams

New technology projects, particularly those involving first-of-a-kind metallurgical facilities, have a poor track record of achieving their overall financial targets, as they incorporate technological risks in addition to normal project risks. Traditional project management tools focus on risk from concept development through implementation, but typically fail to address the additional risks associated with a new technology project including slow start-up, slow ramp-up, and failure to achieve design performance (quality or throughput). These additional risks affect future cash flows produced by the project and hence its value, typically measured as net present value (NPV) or internal rate of return (IRR). Common accounting practice is to reduce the present value of future cash flows by applying a chosen discount rate, often reflecting the corporation's cost of capital. This discount rate does not contain an allowance for technological risk, which is often underestimated or misunderstood by both the financial and engineering project managers. This paper will focus on the topic of project risk and new technology, and how these play a role in the probability of achieving the predicted future cash flows. By properly addressing technological risk in the form of risk-weighted returns, marginal projects can be prevented from proceeding, while sound projects can be given the additional time and resources required to achieve the optimal level of front-end-loading (the level which returns the maximum risk-weighted net present value). A simple set of mathematical tools should enable engineers and financial professionals to establish a common level of understanding, thereby leading to a more accurate assessment whether a new technology project is ready to pass through its next level of approvals.

Jan 1, 2011