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By L A. Martinez Tipe, J McKibben, S Barry

"Metal prices are central to a mineral investment decision and have a profound impact on the financial performance of companies in the mining industry. At its most basic level, metal prices are influenced by the disequilibrium between international metal volume supply and demand. That is, the commodity price is a regulator that equates international metal supply and demand where inventories act as a buffer between the emergence of this disequilibrium and its dissolution through a price change.From this viewpoint, mining companies are required to forecast metal and bulk commodity prices when evaluating minerals projects through discounted cash flow (DCF) analysis. While supply-demand models are instructive, many companies use historical prices, spot prices, futures/forward pricing and consensus opinion (or a combination of all of these) to develop price forecasts.This paper discusses the definition, fundamentals and differences between futures/forward and consensus pricing and the appropriateness of each in a DCF model for mine project economic evaluation.Our results demonstrate that great care is required when using either futures/forward or consensus pricing and that the decision to use one rather than the other requires consideration of other important elements in the DCF model (ie the risk-adjusted discount rate).CITATION:Martinez Tipe, L A, McKibben, J and Barry, S, 2016. Metal prices and the differences between forward and consensus pricing – which one is better for use in a discounted cash flow model?, in Proceedings Project Evaluation 2016, pp 149–158 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 8, 2016

In this paper, three types of value-adding in the minerals industry are discussed: downstream processing, improving the efficiency of existing processing and increasing the knowledge base and expertise of the staff. It is shown that, while downstream processing seems to offer a good way of improving Australia's trade position, there are a number of impediments to such development, notably, limited access to the appropriate technology and overseas markets. Transport costs can also be a problem. To reverse the situation will require more positive policies by government. In the meantime, something can be done towards adding value by increasing the efficiency of existing processes. Examples are given, showing how it might be possible to make economies in reagent costs in the gold industry, how innovative technology has led to more complete processing of a tailings dump, how research might lead to an increase in the throughput in the production of synthetic rutile and how it is possible to leach selectively from gold/copper ores.

Jan 1, 1995

By Qingxiang Huang

Shallow seam coal field has the largest coal reserve in China. Mining in shallow depth causes serious problems. One of them is subsurface dewatering. In this paper, the physical simulating model was performed to study overburden movement and aquiclude stability in the shallow seam mining of Yushuwan coal field, China. According to the characteristic of clay aquiclude in the overburden, the proper simulation materials and proportions of mixture for simulating the plastic clay aquiclude layers and brittle bedrock layers were determined by the stress-strain tests. The physical simulating model was carried out to simulate the failure and caving process of the roof and overburden. Based on the simulating tests, it was found that the movement of clay aquiclude follows the movement of the underlying bedrock layers. The basic caving mechanism of the overburden roof strata was also presented. The tests also showed that the best way to control the stability of aquiclude is to reduce the subsiding gradient Ts. This research provides a foundation for further study on mining dewatering and water conservation.

Jan 1, 2006

By Håkan Tyni, Jan Björkman, Per-Olaf Samskog, Irving Wigdén

Process automation can provide better utilization of capital investments. Furthermore, it is a necessity for securing the high demands of product quality. In this paper, process automation in underground mining as well as in the beneficiation plant will be discussed. The development of reliable broadband communication systems for real-time transfer of image, audio and data have enabled remotely controlled LHDs and drilling rigs. In the beneficiation plants, model-based expert control systems far on-line dynamic process optimization and control have been installed in unit operations such as grinding, flotation and induration.

Jan 1, 2000

By H. Hao

This paper outlines the development of a 2-D axisymmetric mathematical model to predict the evolution of temperature during the Direct Chill (DC) casting of AZ31 magnesium billets. Model predictions of temperature have been compared to measurements made on an industrial DC casting machine at Timminco Ltd, in Haley, Ontario. These measurements have been used to fine-tune the thermal boundary conditions employed in the mathematical model, The model, which is based on the commercial finite-element code ABAQUS, has been developed as part of a strategic project aimed at improving the DC casting process for light metals through a reduction in casting related defects and increased productivity.

Jan 1, 2004

By Andre Luis de Zorzi Marin

O corte a plasma de aço inoxidável tem história relativamente nova em comparação com outros meios de corte de metais. Frequentemente os usuários de corte plasma se deparam com questões específicas ao corte do aço inoxidável, como qualidade de corte, velocidade de corte, custo operacional e alterações nas propriedades metalúrgicas. Nos últimos vinte anos as tecnologias aplicadas no corte plasma do aço inoxidável tem evoluído com resultados atrativos nos últimos cinco anos. Estas tecnologias versam com alterações na mistura dos gases de plasma e de proteção, ou ainda, na mudança dos bicos de corte plasma buscando melhor constrição do arco plasma, e a devida seleção de gases em função da espessura de corte. Este trabalho foi desenvolvido através de revisão bibliográfica das principais tecnologias apresentadas pela indústria nas últimas duas décadas para o corte de aço inoxidável com plasma, e testes laboratoriais de corte com as últimas tecnologias de corte. Entre os resultados estão a redução até a eliminação da escória pós-corte, uma borda de corte menos arredondada, melhora na coloração da superfície e diminuição da zona afetada pelo calor na peça de trabalho. A importância do trabalho se dá pelo aumento da participação do uso do aço inoxidável dada a sua importância para a economia, em especial nos setores de energia, processamento de alimentos, papel e celulose e transportes que necessitam de melhorias no corte deste metal e suas ligas.

Jan 16, 2018

By D. H. Gurinsky, D. G. Schweitzer

The empirical equilibrium constantsd the heat of reaction for the reduction have been determined from 300° to 500°C. The mechanisms of the oxidation of uranium and magnesium from dilute bismuth solutions have been investigated. The kinetics of some of the reactions were affected by air adsorbed on the uranium oxides. THE Liquid Metal Fuel Reactor studied at Brook-haven National Laboratory uses a solution of uranium in bismuth as the fuel. Corrosion and stability problems require that the fuel solution contain corrosion inhibitors and deoxidants. Of the additives tested, magnesium has been found to be the best deoxidant and zirconium the best corrosion inhibitor in bismuth. Some experiments1 indicate that magnesium may play a secondary role in increasing the effectiveness of zirconium in inhibiting corrosion. The work reported here was intended to determine the relative concentrations of Mg and U required to prevent oxidation of the uranium fuel in the event of an air leak. In addition, an attempt was made to identify some of the mechanisms of the oxidation and reduction reactions occurring in the liquid bismuth solutions. EXPERIMENTAL Apparatus and Procedure—The equipment shown in Fig. 1 was designed so that the reaction kinetics could be studied as functions of temperature, melt composition, pressure, and flow rate. At the start of a run, the 10-liter bell jar (F) is removed by opening the bottom Dresser fitting (L), and the bismuth and additives are placed in a pyrex crystallizing dish (I). The bell jar is replaced, the system is evacuated to 10-5 to 10-6 mm Hg and then the heater (J) is turned on. When the selected temperature is reached, the oxidizing gas is admitted to the system to the desired pressure as read on the manometer (D). Gas is introduced through the slide tube (Q) which has a pyrex frit (R) sealed to its bottom. Stirring is accomplished by immersing the end of the tube in the melt. To maintain a constant pressure under flow the input and evacuation rates must be equalized. To obtain this condition stopcock (C) is closed and flowmeters (B) are matched. The reaction is "stopped" by closing the inlet flowmeter and quickly evacuating the system. To obtain a liquid metal sample, the system is evacuated with the sampler positioned near the surface of the liquid. The sampler, Fig. 2, is then immersed until its thermocouple reading matches thermocouple (G) Fig. 1. The system is then pressurized with helium which forces the solution through the frit. Twenty to 30 min elapsed between the time the system was evacuated and sampled. During evacuation and pressurization of the system, the temperature variations did not exceed ± 5°C. While bubbling occurred the temperature remained constant to within 1/2 oC. The volume of the equipment was determined by adding a known volume of air at atmospheric pressure to the evacuated system and noting the resulting pressure.

Jan 1, 1962

By P. D. P. Hamilton

IT is perhaps obvious to most individuals who are interested in the mining industry that a producing mine has been subjected to several phases of engineering attention. In this paper it is the author's hope that a thoughtful survey of these various engineering phases will emphasize certain points of value and interest which may sometimes be overlooked. The points which we will bring out are being made in an analytical sense and are not in any way a reflection on any individuals or organizations which might see in these illustrations a similarity co chair particular conditions. In other words, we are drawing on our general experience to illustrate the points which we chink are worthy of mention, and which we believe are of a type sufficiently frequent co be emphasized. It is well co point out chat, in this paper, we are not concerned with the relative importance of such theoretical questions as to whether or not a geologisc is more important than a prospector, or the office manager than the surface foreman. We are, however, interested in analyzing the various types of engineering experience required in the bringing of a mining enter-prise from the early prospect stage in co-production, and their importance to the project as a whole. In order to simplify our analysis of the subject, it has seemed best to outline a simple mining organization. In using the terms 'industry' and 'business', we feel chat frequently those engaged in mining do not always appreciate that mining is actually an endeavour, or a business, which has the same economic fundamentals as any other business. In the mining industry, the field and producing engineering are counter-parts of the research and production phases of any other type of business. Once this is realized, it is fairly obvious that mining, like any other industry, is a matter of economically acquiring raw materials, processing them, and finally marketing the resultant commodities as favourably as possible. The points may be discussed in a little more detail as follows.

Jan 1, 1938

By D. G. Sinclair

IN surveying the changes that have taken place in the mining industry of Ontario in the past ten years, the striking growth of the gold mining industry first attracts attention. In 1925 there were only twelve regularly producing gold mines in the Province, six of which were located in the Porcupine area, four at Kirkland Lake, and one each at Larder Lake and Boston Creek. In contrast with this, the year that has just closed (1935) has seen production on a steady basis from forty mines, with what may be termed spasmodic production from twelve other properties. This so-called spasmodic production is, however, responsible for the recovery of gold to an estimated value of between $75,000 and $100,000 during the year. Further illustrating the expansion in the gold mining group is the activity in the exploration and development of properties. In 1925, mining operations were conducted at 29 properties which had not reached production, while in 1935 work of this nature was carried on at 87 such properties. It is of interest to note that of the six properties listed as producers in Porcupine ten years ago, five are still producing at rates considerably in excess of the tonnages handled at that time. In fact, the estimated tonnage treated at these mines in 1935 exceeds the 1925 tonnage by approximately half a million tons. In Kirkland Lake, the figures are still more striking. The four mines in production in that camp in 1925 milled 346,584 tons, producing bullion to the value of $5,132,128, while in 1935 these same mines treated approximately 1,643,000 tons, with a recovery of roughly $29,300,000. While Porcupine and Kirkland Lake remain the great gold-producing camps of the Province, the growing importance of the newer areas is readily appreciated when we consider that in 1935 the mills of these areas treated over 1,000,000 tons of ore for a production in excess of $7,500,000. Pro-duction from these newer districts first became of importance in 1930 with the commencement of recovery at the Howey mine, in Red Lake, and the Minto, in Michipicoten. Since 1930, eighteen new gold mills have gone into production in the Red Lake, Little Long Lac-Beardmore, Pickle Crow, Sturgeon Lake, Michipicoten, Sudbury, and Matachewan areas. In respect to silver mining, the period under review has seen a considerable slackening of activity, due to a generally unstable and depreciated price for the product and to the exhaustion of ore reserves in the mines.

Jan 1, 1936

By T. C. King

AT the new Graham-Central Mill of Eagle-Picher, near Galena, Ill., material is simultaneously dewatered and introduced into the ball-mill scoop boxes by the use of variable-speed, 24-in. spiral classifiers. This arrangement has proved satisfactory in that the moisture content of the wet feed is reduced, thus allowing maintenance of density within the mills, and a constant feed at any desired rate to the mills is provided. In this mill the primary feed is wet crushed to minus 1/2 in. and preconcentrated by jigs to produce a bulk lead-zinc-iron concentrate and a waste tailing. The jig concentrate is then dewatered by a conventional dewatering classifier and stored in bins ahead of the ball mills. Even though this material is well dewatered, the discharge at the bin bottom is sloppy because of the gradual drainage of the water from the surface of the particles. Conventional belt feeders with vertical cutoff gates are unsatisfactory because of the flushing characteristic of the wet sand.

Jan 9, 1950

By John E. Tilton

Mining is one of the oldest human activities. It goes back at least to the Bronze Age and possibly even the Stone Age. The Romans mined copper in Spain and tin in England some two thousand years ago. The writings of Agricola in the 16th century show that mining was important in the Middle Ages. Today we mine more mineral commodities in greater tonnages than ever before. This long and fascinating history closely tied with the economic development of the human race is one of the charms of the mining industry. It also, unfortunately, gives rise to some widespread misconceptions.

Jan 1, 1997

By Robert H. Holgers

Eveleth Taconite Co. was chartered on July 29, 1963, and is 85% owned by Ford Motor Co. and 15% by Oglebay Norton Co. The latter also serves as managing agent. The location of the company's facilities is depicted in Fig. 1. The Thunderbird mine is located midway between the cities of Eveleth and Virginia, Minn. (Fig. 2). The Fairlane plant and General Office are located approximately 10 miles south on the St. Louis River near the community of Forbes (Figs. 3 and 4). The crude ore and the finished pellets are transported by a common carrier railroad, the Duluth, Missabe & Iron Range Railway Co. The facilities are also serviced by the Duluth, Winnipeg & Pacific Railway Co. Pellets are hauled year around by the DM&IR to its docks 60 miles south in Duluth, Minn. Ford Motor Co. consumes its share of the high grade pellets at its Rouge plant in Dearborn, Mich., and Oglebay Norton Co. sells its share in the open market. HISTORY Following six months of preliminary engineering by the initial staff of Eveleth Taconite Co. and the Western Knapp Engineering Div. of Arthur G. McKee & Co., the project was approved by Eveleth's board of directors on Apr. 17, 1964. On May 1, 1964, contracts were awarded to McKee for the mine, coarse and fine crushing and concentrating facilities, and to Allis-Chalmer for the pelletizing facilities. The pre-production surface overburden stripping contract was awarded to Skubic Brothers Co., Virginia, Minn. Ground-breaking ceremonies were held at the Thunderbird mine on

Jan 1, 1969

By C. M. D. Majola, K. E. Langerman

Energy efficiency is a cost-effective way of both bolstering energy security and limiting the harmful effects of energy use on the environment. Mining is an inherently energy-intensive activity, and the 2008 revision of South Africa’s National Energy Efficiency Strategy (NEES) set a target of a 10% reduction in energy consumption by 2015 for the mining sector. In this study, we investigate the effectiveness of the NEES in improving energy efficiency in the South African coal mining sector by surveying energy intensity at a number of operations, and analysing energy efficiency trends and energy use by process and energy carrier at an underground coal mine in Mpumalanga. Most mines surveyed exhibit an increase in energy intensity over time. At the case study mine, the increase was primarily due to increased energy use in the beneficiation and discard reclaiming processes. Trends in energy consumption are a poor reflection of trends in energy intensity, as a decline in energy consumption is most easily achieved by reducing production. A more appropriate metric for energy efficiency at coal mines is energy intensity, defined as energy use per unit of saleable product, relative to a multi-year baseline. The evidence suggests that the NEES has been ineffective in promoting energy efficiency in South African coal mines. We propose that greater success could be achieved by monitoring and reporting on energy intensity at the process level, and by incentivizing energy efficiency gains.

Sep 6, 2023

By A. C. Fieldner

The Sectional Committee on Classification of Coals, functioning under the sponsorship of the American Society for Testing Materials and the rules of the American Standards Association, in its 1934 report recommended to the American Society for Testing-Materials5 that Specifications for Classification of Coals by Rank be adopted as tentative. These specifications, slightly modified as recommended by the Sectional Committee, in its 1935 report,6 wore approved as tentative standards by the society in 1935. The specifications rover the classification of coals according to their degree of metamorphism, or progressive alteration, in the natural eerie s from lignite to anthracite. The basic scheme of classification is according to fired carbon and calorific value (expressed in B.t.u.) calculated to the mineral-matter-free basis. The higher-rank coals are classified according to fixed carbon on the dry basis, and the lower-ran]: coals according; to B.t.u. on the moist basis, that is, containing its natural bed moisture but free of visible surface moisture. Agglutinating and weathering indices arc used to differentiate between certain adjacent groups.

Jan 1, 1935

By T. J. Otto, I. D. Ungerer, G. C. Lindeque, T. J. van Heerden

Anglo American Kumba Iron Ore (Kumba) continues to implement technologies focussed on improving safety and productivity; this forms part of the groups FutureSmart Mining initiative. The paper provides insights into the implementation of three technology solutions that improves the productivity of heavy mining equipment (HME). Enhancements to the short term mine planning (STMP) process, the effective use of a fleet management system (FMS) and the deployment of drones or Remotely Piloted Aircraft Systems (RPAS) are discussed. The implementation of these and other technologies contributed to a 13% and 22% increase in the overall equipment efficiency (OEE) of the primary HME at Kumba’s Sishen and Kolomela mines respectively. Four key success factors (KSF) are highlighted namely that Kumba’s technology implementation drive is a key enabler to the company’s strategy, has a strong focus on value-add, is underpinned by a holistic and integrated implementation approach and is people-centric.

Sep 1, 2021

"The Garfield plant of the American Smelting & Refining Company is situated about seventeen miles west of Salt Lake City, on the Los Angeles & Salt Lake Railroad, and has freight service by the Denver & Rio Grande Western, Western Pacific and Bingham & Garfield Railways.The site lies between the picturesque Great Salt Lake, with its mountain islands, and the northern point of the Oquirrh Range, which forms the western boundary of the Salt Lake Valley.The location includes several hundred acres of land rising from the southern shore of the lake, selected on account of its adaptability to the economical handling of materials by gravity methods.The smelter is a custom smelter, treating copper ores and concentrates produced in Utah and adjoining states.The ores treated consist mainly of oxides from the Tintic and Park City Districts, sulphides from Bingham District, and concentrates from the mills of the Utah Copper Company, from mills in California, and copper precipitates from the Ohio Copper Company. The last product comes from low grade ores of Bingham Canyon.The following figures represent approximately the daily consumption of materials:Ores and Concentrates…2,700 tonsLime sand…100 ""Coal…350 ""Oil for Roasters…240 Bbls."

Jan 1, 1925

By L. B. Hales

Expert control of grinding and flotation plants has been successfully used in the minerals industry since the 1970?s. The earliest of these systems were written in a hard-coded fashion in FORTRAN, BASIC or Pascal. Second generation systems were built using the first experimental expert system shells that were being developed in the artificial intelligence community. Later systems were deployed in expert system shells designed for real-time processing plants that also included the ability to model the process with neural network models and optimize setpoint selection through the use of genetic algorithms. Significant performance increases have been achieved using these systems, but in general, they suffer from the static nature of their rules and to a degree the process models also. Typical improvements quoted in the literature suggest throughput rate increases of 4 to 8 percent and recovery increases of 1 to 4 percentage points. In over 30 years of designing and installing expert systems we have never seen performance numbers less that these but have often seen numbers in excess of the high values. However, once the system has been installed and tuned up the performance usually does not improve much thereafter. Granted, the initial increases in throughput rate and recovery are significant but a question always lingers, that is, can the expert strategies be modified further to squeeze a little more improvement out of the system. The answer to this question is a resounding yes, however a complete understanding of what we do well as designers and operators of expert control systems is required as well as how we can improve upon our best practices is required to move us from the performance plateau we have been on for a number of years to a new higher level of performance.

Jan 1, 2009

By Dozier Fircley

SOME nonmetallic minerals and their products, such as portland cement, common brick and hollow tile, sand, gravel, crushed rock, vitrified salt-glaze clay pipe, and the like, are a necessity in every community. They are mineral in nature but the establishment of plants for their production is usually a local and elementary problem. Yet it is probable that an economic study of the problem in every locality will show that such nonmetallic mineral commodities are not always obtained in the most economical way, or in the best quality. Other nonmetallic minerals are of such value that they may be shipped for long distances and sold in sufficient quantities to establish prosperous commercial ventures. Among these are phosphates, barium compounds, borates, nitrogen compounds, magnesium compounds, sulfur, asbestos, and potash. Success in marketing such products depends on quality, production cost, transportation, and similar conditions.

Jan 1, 1932

By Marco Muñoz

La mina Porvenir, perteneciente al Grupo Milpo, está ubicada en Cerro de Pasco, destacándose por la corporación de equipos de alta tecnología minera adecuada a sus operaciones. En ese sentido, el presente texto señala el sistema de gestión operativa aplicado en la mina Porvenir con el objetivo de apoyar las operaciones, ya que la tecnología de información permite manejar complejidad y mejorar la calidad de las decisiones.

Jul 17, 2000

The prevention of silicosis by metallic aluminium has been reported by Denny, Robson, and Irwin in two papers. The first was published in 1937; the second in 1939. The results definitely established that silicosis was prevented in animals by the inhalation of small quantities of aluminium. The present communication records subsequent progress in this field of research.HARMLESSNESS OF ALUMINIUMAnimal experiments having served their purpose, it became necessary to consider means to test the discovery on humans. A question for immediate consideration was: Is aluminium harmful to man when inhaled as a fine powder? While the animal experiments were reassuring, since they conclusively showed the powder to be innocuous when breathed by animals, it was, nevertheless, desirable to have additional reassurance with regard to its effect upon human beings.Through the courtesy of the Aluminium Company of America and especially the valued interest in this problem displayed by that Company's Director of Research, Dr. Francis C. Frary, a study was made of the records pertaining to the health of a group of 125 employees who had for many years been engaged in the manufacture of finely powdered, metallic aluminium for the paint and ink industries. The conditions were such that these employees had inhaled varying and oft-times very dense concentrations of this powder daily over periods ranging from 6 to 23 years, the average 101 the group being 12 years. X-ray pictures of their chests showed no abnormalities attributable to aluminium. Their general health seemed better than that of the 3,000 workers in other sections of the plant. In fact, the early films of three employees in this group of 125 showed shadows suggestive of minimal tuberculosis, which shadows were not discernible in films taken after considerable periods of exposure to aluminium powder.The harmlessness of aluminium was; by this study, reasonably well established at the outset, a finding subsequently verified by Ontario research on humans.PROPOSAL TO TREAT HUMAN SILICOSISBased upon these findings, a proposal to treat silicotics with aluminium was discussed by officials of the Mclntyre Mine and the Banting Institute.

Jan 1, 1945