Search Documents

By A D. Stewart Gillies

Resource rent taxes are taxes which only become effective at such a time as a pre-determined rate of return has been achieved by an operation. Resource Rent Taxes have from time to time been considered for implementation in bothAustralia and New Zealand. The offshore petroleum industry in Australia is already subject to RRT as is the Roxby Downs (Olympic Dam) Mine in South Australia. Both the mining and petroleum taxation regimes in Papua New Guinea include a resource rent tax component called Additional Profits Tax.   The implications of the current form of additional profits tax for shareholder cash returns are that the tax burden on the operation may suddenly increase at some stage in the life of the mine if and when the threshold level of profitability for the tax to be triggered is exceeded. From that point in time onwards the cash return to the shareholders on the capital invested is greatly diminished. For mining companies in Papua New Guinea, the effective tax rate increases from 35% to 57.75% as a result of the onset of additional profits tax. This tax rate penalty is so severe that there appears to be merit in considering the concept of managing profitability through time rather than purely maximising annual pre-tax profits as is currently the case in most mining operations. This would have the benefit of deferring or perhaps preventing altogether the onset of the tax. One possible method for the effective management of profitability is through the control of average mining grade by cutoff grade manipulation.   Traditional cutoff grade theory has usually considered taxation as a direct cost at a fixed or variable percentage of annual profits. As a result of this most analyses are conducted on a pre-tax basis. If tax is included in analyses it is usually present as a time independent function of gross profit. Additional profits tax is both time, and rate of return dependent and therefore not adequately accommodated by currently accepted cutoff grade theory.   A review has been made of the effects of resource rent taxes on both the investment decision-making process as well as possible development and mining strategies which may be employed by mining companies faced with resource rent taxes. The review includes examples based on the structure of additional profits tax which is levied in Papua New Guinea.

Jan 1, 1995

By Carl Rampacek

The conversion of dilute sulfur dioxide gas into sulfuric acid by autoxidation in mechanical cells of the flotation or gas absorber types was investigated. Bench-scale tests were made with sulfur dioxide-air mixtures to determine the influence of several factors on autoxidation of sulfur dioxide, using iron and manganese salts as catalysts. The laboratory investigation subsequently was extended to pilot plant acid-making tests, using a modified turbomixer gas absorber having a 12-inch-diameter impeller. Sulfur dioxide gas was produced for the tests by roasting pyrite in a fluidized-bed reactor. In the better tests, made with manganese sulfate as the catalyst, the equivalent of 1,000 pounds of anhydrous H2SO4 was produced per 24 hours as a 10-percent solution; power consumption was 0.2 kwhr per pound of equivalent anhydrous acid synthesized. The batch and continuous tests demonstrated the technical feasibility of producing dilute sulfuric acid by autoxidation of sulfur dioxide gas in mechanical cells when converting pyrite roaster or waste smelter gases.

Jan 1, 1963

By C Jones

When the Paulsens operation was poised to be placed on care and maintenance, Bill Beament and the rest of the Northern Star Resources (NSR) team capitalised on the opportunity to send the Ashburton region’s only operating gold mine into the record books.A three-stage strategy was devised by NSR to pay off the acquisition and maximise the return from the operation. The first stage was to mine the 55 000 oz mine plan and pay off the cost of the acquisition, then maintain profitable production beyond the seven months and re-establish a mine life. The second stage involved an early commitment to a 220 m long diamond drill drive being placed in the hanging wall of the orebody from which the extensions of the orebody could be further explored, allowing the second stage of the plan to come into effect and extend the mine life by converting Inferred Resources into the mine plan. The third stage of the initial plan was to utilise this drill drive and continue to drill deeper holes beyond the current limit of drilling in the ore zones to extend the orebody and increase the mine’s life.With an ever growing desire to further expand, the young company took on the bold move of establishing its own mining services division. A critical element to the success of this was ensuring that the right people were recruited with the appropriate specialised skill sets.Aligning common goals amongst all NSR team members, from the board and senior management to the work force on site, was critical to integrate the new and driven direction that Paulsens had adopted. It was essential to change the focus and a shift in all employees’ attitudes and values from a mine that was all but down and out, to a site that wanted to be kicking some serious goals.Teaming together a passionate and driven leader with a strong allied workforce was always going to put NSR in the best position possible to make Paulsens the success story that it now is. But without the calculated risks and enthusiastic attitude, the little known mine site in the Pilbara might have remained just that.CITATION:Jones, C, 2014. The Paulsens transformation – a shining light under a northern star, in Proceedings 12th AusIMM Underground Operators’ Conference 2014 , pp 191–196 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Mar 24, 2014

By R Razanatsimba, A Galli

A mining company has entered into contractual commitments to supply certain quantities of its product to clients in each time period. Failure to fulfil its obligations would damage its reputation as a reliable supplier. The planned production would normally be sufficient unless major problems such as highwall failures, roof falls, natural disaster, or strikes that interrupt production or delays in obtaining environmental permits, occur. To overcome these difficulties, the company may be able to obtain more of the commodity: from its strategic stockpile (if there is sufficient there); by buying it on the spot market; or for some commodities such as gold and uranium, by leasing it. Two sources of uncertainty, the spot price of the commodity and the occurrence of serious incidents that interrupt production, are considered. For simplicity it is assumed that the commodity price follows a geometric Brownian motion, that productions incidents have a binomial distribution, that they are independent from one time period to another and that they do not affect prices. A branching tree structure is used to model the joint evolution of prices and production incidents. The aim of this research project was to evaluate the companyÆs options for fulfilling its contractual commitments. When evaluating these options, multi-stage stochastic programming with recourse was used to solve this problem because in addition to providing the dollar value of the project, it gives decision-makers the æroadmapÆ to reach the optimal value. That is, how much material should be bought/sold on the spot market, how much to add to/subtract from the stockpile, how much to lease and in the worst case what the shortfall would be, for each time period as a function of the current spot price and breakdown status. A case-study over a five-year period is used to illustrate the proposed procedure. In this study the production would be sufficient to cover the companyÆs contractual commitments unless production incidents occur. Focus is on evaluating the impact of the quantity initially in the stockpile on the value of the project when the commodity market is tight, that is, when only small quantities can be bought on the spot market or by leasing.

Sep 26, 2011

By John Marsden

Despite the recent pullback in metal and mineral prices, and the associated market adjustments, the mining industry is still facing a serious issue with the declining availability of graduate expertise. This is due to a combination of an aging workforce, retirements and retrenchments, coupled with a lack of suitably qualified graduates entering the workforce. The issue has certainly improved since 2004 when the industry picked up the rates of hiring graduate engineers and mining/mineral school enrollments picked up in response. This hiring effort has helped to cover the ?gap? years from about 1985-2000, when industry demand for graduates was particularly poor. However, the recent market pullback is likely to set back this progress, as recruitment and hiring wavers as a result of cost cutting measures and economic uncertainty. A key issue for the mining industry is how to ensure the survival and growth of relevant ?core? degree programs. Such programs include mining, metallurgical, mineral processing and geological engineering. The mining industry needs a healthy, high-level education program to ensure an adequate supply of appropriately qualified graduates for the mining industry. Two-thirds of the professionals entering the minerals industry who graduated within the past 40 years graduated prior to 1985. Since 1985, we have been living off the legacy of graduation classes from the mid-1970s and early 1980s. It is estimated that we have been producing graduates at approximately 40 to 50 percent of the sustaining rate since about 1985. Further growth in the domestic industry would increase graduate requirements significantly, and the export of U.S.-graduates to other parts of the world (as is currently occurring) also impacts the total graduate requirements.

By Manqiu Xu, Joe Holmes, Peter Wells, Peter Langlois, Germain Labonté, Jim Barrett

"The flowsheet for the Voisey’s Bay mill had to meet the challenge of processing an ore containing high pentlandite and chalcopyrite values in a largely pyrrhotite/troilite matrix. In the 1994-97 period, circuit development focused on making a high-grade copper concentrate and a relatively low-grade nickel concentrate. However, in 1998 a circuit with copper concentrate, high-grade nickel concentrate and a Ni/Cu middlings concentrate was specified. Following a three year project delay, work resumed on the flowsheet in 2001, and the target for the overall grade of the nickel concentrate was raised from 14% to 20% nickel. To achieve this target triethylamine tetramine (TETA) and sulfite pyrrhotite depressants were used in an all lime circuit. It later became evident that, with appropriate selection of collector and adjustment of the circuit by the addition of a scavenger on the scavenger cleaner, it would be possible to approach the grade of concentrate required without the use of pyrrhotite depressants. The recycle of water and the contained thiosalts was also proven to be instrumental in raising the grade.Construction and commissioning of the mill were fast-tracked with start-up of the mill in September 2005 some six months ahead of the original schedule. Ramp-up of both throughput and metallurgy was faster than any other recent nickel installations with tonnage being limited mainly by concentrate dewatering due to the higher than initially planned ore grades.INTRODUCTIONNickel was discovered in the vicinity of Voisey’s Bay by Chislett and Verbiski working for Diamond Field Resources in 1993 and the Ovoid deposit was delineated in the winter of 1994/95. By the end of 1995 the Ovoid had been well explored and at that time was thought to have a reserve of at least 30 million tonnes with an average grade of 2.83% Ni and 2.0% Cu. Drilling to the east of the Ovoid had indicated the presence of significant mineralization. In June of 1995, Inco Limited bought a 25% share in the Voisey’s Bay Nickel Company (VBNC) which was a subsidiary holding company set up by Diamond Fields. Inco also bought 8% of Diamond Fields and negotiated the right to sell all the nickel produced from VBNC for twenty years as part of this agreement. In April 1996, Inco bought the 75% of VBNC shares that it did not own."

Jan 1, 2007

By Andy Cole, Ken Thomas, Stephen Durn, Jacques McMullen

"The roasting and gas handling circuits of the Barrick Gold’s new Roasting Facility at the Goldstrike Mine in Nevada, USA incorporate well proven technologies in a unique combination. During the design of the plant, every effort was made to utilize the best available technologies from the perspective of capital, environment and operating costs.Product from the up-stream dry grinding circuit requires roasting to maximize gold recovery. The roaster utilizes Freeport-McMoRan whole ore roasting technology with pure oxygen as the oxidizing gas. This process was chosen based on its proven application on Carlin-type “double refractory” ores. Double refractory is indicative of the gold being difficult to direct leach due to a combination of pyrite encapsulation and the carbonaceous preg-robbing of the ore.A very extensive gas cleaning train follows the roaster and comprises direct cooling, dust scrubbing, indirect cooling, wet electrostatic precipitation, mercury scrubbing, SO2 scrubbing, CO incineration and NO, reduction before venting to the atmosphere.The roasted calcine is quenched, neutralized and then thickened before leaching in the carbon-in-leach-circuit.INTRODUCTIONBarrick’s strategic development plan integrated the production of gold from Goldstrike’s carbonaceous ore reserves by 2000. A due diligence review of carbonaceous ore processing options was initiated during the second half of 1 996. Processes considered included autoclaving followed by a proprietary ammonium thiosulfate leaching process, fine grinding/autoclaving as practiced then by Santa Fe, and whole ore roasting as practiced by then Independence Mining and Newmont. The objective by year-end was to recommend the most robust and economical process for Goldstrike’s carbonaceous resources. In the fall of 1996, a detailed review of roasting as a processing alternative for Goldstrike was initiated."

Jan 1, 2001

By Dennis J. Callaghan

This report is the result of information obtained from a review of related literature, personal inquiry and on-site examination of active surface coal mining operations. Four improved surface coal mine systems are described in detail and evaluated for feasibility, implementation requirements, environmental benefit and costs. Engineering feasibility emphasizes equipment availability, compliance to design requirements, practicality and industry rating. Implementation potential emphasizes immediacy, ease, acceptability and constraints. Special attention was given to environmental responsiveness, both with regard to the solutions to mined-land reclamation problems and to the concurrency of reclamation. Each system description includes a hypothetical model mine with a depreciation schedule, capital summary, estimated annual production costs, sales price computation, production and operating cost summary, and a sensitivity analysis of mine price to stripping ratio. A program plan and time schedule for demonstrating a selected mining system covers site selection criteria, mine data collection, criteria for controlling and budgeting costs and reporting findings. Ten additional mining methods and techniques are briefly described and evaluated. Common reclamation problems are listed and described. Sixteen state reclamation laws and regulations are abstracted. Sixty-nine references are listed in the bibliography.

Jan 1, 1976

By Herbert Tomlinson

The United States Bureau of Mines has engaged in a study of the conditions under which coal mine accidents, resulting in the loss of life, limb, or time to the injured person, occur from falls of roof and coal. This publication is devoted to the results of a study conducted in the coal mines of the Book Cliffs and Wasatch Plateau coal fields of Utah. To show the necessity of this study, a statement of the fatalities that have occurred during the period 1928-1930, inclusive, in the bituminous mines of the United States and of Utah, is presented (Table 1), followed by a brief description of this Utah district, its coal beds and immediate roof, thickness of cover, dip of coal beds, methods of mining, supervision, roof testing and timbering for roof support, all of which are factors in any plan devised for preventing accidents from falls of roof and coal.

Jan 1, 1932

By O Bascur, A Soudek

Large metallurgical complexes are substantial users of energy, water and assets. To improve the effectiveness of energy and assets the quality of the data and events become paramount for real-time operational management. A lack of resources at the local operations and at the enterprise makes it impossible to process the sea of information and many projects have failed. As such, a novel approach for implementation of continuous improvements at the local level and innovations at the strategic level was implemented at all operating plants at Anglo American Platinum. Sixteen concentrators, three smelters and two refinery process systems were integrated to scale the information for manufacturing services at the local and enterprise level. The new capability of an enterprise real-time monitoring and diagnosis software infrastructure was available to implement many business strategies in tandem. Mineral and metallurgical processing knowledge is used to simplify the implementation of the data model. As such, asset monitoring, energy, production and process control management were implemented in an integrated approach reusing the same data but with different context and time horizons to have a standard methodology for local root cause analysis. This paper will highlight a sustainability management approach to change and empower the local and strategic team to collaborate using a new approach for adaptive reporting and condition-based event management and notifications. The results based on the integrated and collaborative team efforts will be presented. OSIsoft Plant Information system was installed and configured to achieve a targeted reduction in energy consumption of 15 per cent by 2015.CITATION:Bascur, O and Soudek, A, 2014. Implementation strategies for energy effectiveness and sustainability – example of Anglo American Platinum, in Proceedings 12th AusIMM Mill Operators’ Conference 2014 , pp 101–108 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 1, 2014

By Melvin S. Taylor

The environmental control program at Cassiar Mine is an active one involving government, unions and company personnel all working together to achieve a goal- "A clean and safe working environment". This can only be achieved by utilizing three of Cassiar's most important resources; i.e., people, time and money. Past environmental programs have more than proved that the goal can be reached and. with the future programs now in progress. Cassiar Asbestos will achieve its environmental goals.

Jan 1, 1978

By J. J. Fitzpatrick

"This paper deals with the methods used by Quebec Cartier Mining Company in the evaluation and selection of new haulage equipment and in increasing the productivity of the existing fleet.Selection of new equipment is based upon the comparison, for each model under consideration, of the capital investment required and the estimated operating costs and production rate. The calculation of the production rate is based on a widely used estimating procedure. Actual operating conditions considered in the method include: payload, haul distance, road grade, rolling resistance, loading and dumping times, and operational efficiency. A digital computer is used to handle the large volume of repetitive calculations required. Where a fleet of haulage equipment includes trucks of different size and performance characteristics, the problem exists of assigning each truck type to the different working locations to minimize total cost. Linear programming can be used in the solution of this problem."

Jan 1, 1967

By J. Clark

Erosion control during the mining cycle can be more effectively planned using Erosion and Sedimentation Control Plans (ESCPs). This raises the issue of who should develop an Erosion and Sedimentation Control Plan Guidance document (ESCPG) to standardize the content of ESCPs. A search for ESCPG documents in Canada revealed no examples for mine sites. In the U.S. there are a number of regulatory authorities who developed such documents for mine sites, including EPA. An ESCPG is expected to result in: (a) plans will be more standardized (b) more clarity and efficiency for those generating ESCPs; (c) assisting regulators tasked with reviewing/approving ESCPs; (d) providing guidance for the mine effluent permitting process relative to sediment control; (e) providing a basis for developing and including ESCPs in the Environmental Assessment (EA) phase and the mine economic assessment; (f) applying and optimizing ESCPs above the ?watersheds? of sediment ponds; (g) utilizing the ESCPG document for ?exploration? sites; (h) lowering the risk of adversely impacting water quality downstream of mining activities; (i) providing a methodology for determining the need for sedimentation pond(s) during the construction and production phases; and (j) providing a clear environmental sustainability message relative to sediment control if the mining industry takes the lead in developing an ESCPG. ESCPs will proactively create increased administrative (regulatory) efficiency in the EA and sub-EA reviews relative to erosion control and sediment release from mine sites. This also assists the new initiative in BC, One Project, One Process (OPOP) and synchronous permitting (a variation of concurrent permitting): as an example, enhanced erosion control planning at the EA phase then allows the synchronous permitting initiative to proceed efficiently, particularly for the mine permit (Ministry of Energy, Mines and Natural Gas) and effluent permit (Ministry of Environment). Approximately twenty more management plans (e.g. ARD/ML, explosive management, emergency response, hazardous waste, sediment pond operation, environmental effects, environmental sampling, etc.) may also be entered into the EA process to create increased efficiency, and then feed into the synchronous permitting effort. The BC OPOP initiative also adds support to the Canadian Federal ?One Project, One Review Process? approach. The ESCP and a sediment pond management plan will also address the Canadian Metal Mining Effluent Regulations requirement for all discharges from mine sites to meet a grab sample of 30 mg/L Total Suspended Solids.

Aug 1, 2013

By T. E. Swigart, C. E. Beecher

The Federal Government, as the largest lessor of oil and gas lands in the United States, is vitally interested in the conservation of those resources. This manual has been prepared at the direction of the Secretary of the Interior to call the attention of lessees of public oil and gas lands to the most common oil and gas field wastes and the best methods of preventing them; to outline the policies of the Interior Department on field operations; and to give information as to how the "Operating Regulations" of the department will be interpreted by the Bureau of Mines. The oil industry has progressed steadily. Present operating methods are much more efficient-and less wasteful-than those of a few years ago; moreover, the art of producing oil and gas is continually advancing. Public interest requires that improved methods, which will result in obtaining the greatest possible amounts of oil and gas from the natural deposits, shall be developed and used. Part I of this manual points out types of oil and gas wastes and suggests, in detail or by reference, the most practical and effective methods in current practice for stopping these wastes. Throughout Part I the department's operating policy is given, with interpretations of the "Operating Regulations" for enforcing every practical measure of conservation. Part II comprises the revised "Operating Regula-tions" which supersede all previous regulations and will govern future operations on public lands; it will be found in the pocket in the back cover of this bulletin.

Jan 1, 1923

By Heikki Laurila, Sirkka-Liisa Jämsä-Jounela, Jarkko Karesvuori

"Artificial Intelligence includes excellent tools for the control and supervision of industrial processes. Several thousand industrial applications have been reported worldwide. Recently, the designers of the A1 systems have begun to hybridize the intelligent techniques, expert systems, fuzzy logic and neural networks, to enhance the capability of the A1 systems. Expert systems have proved to be ideal candidates especially for the control of mineral processes.As successful case projects, an expert system based on on-line classification of the feed type using neural data analysis is described in this paper. The essential feature of this expert system is the classification of different feed types and their distinct control strategies at the plant. In addition to the classification, the expert system has a database containing information about how to handle the determined feed type. This self-leaming database scans historical process data to suggest the best treatment for the ore type under processing. The system has been tested in the Outokumpu Finnmines Oy, Hitura mine. Other projects have been reported to be in progress.INTRODUCTIONIn the past ten years considerable researches have been done in the application of artificial intelligent methods in process industry. The technologies of fuzzy logic, neural networks and expert systems have received several thousand applications worldwide: monitoring and analysis of process operations, fault diagnosis, supervisory control, feedback control and scheduling and planning of operations. Recently, the designers of these systems have begun to hybridize these intelligent techniques to enhance the current capability of expert system. Complex signal processing, neural networks, fuzzy logic and rule-based systems are also implemented to develop new so-called smart or intelligent sensors, actuators or components. Field buses are playing a more and more important role in automation systems and in imbedded systems. The development of field buses has allowed the distribution of smart components over networks."

Jan 1, 2000

Energy Savings and Technology Comparison Using Small Grinding Media Considering the complexity of minerals, the need for finer grinding is increasing along with the energy cost. However, energy is increasing exponentially when grinding finer with conventional grinding balls. The use of small grinding media represents the best potential to improve energy efficiency. Today, it is possible to use grinding media as small as 1 mm. How do they perform in industrial grinding mills? The use of small grinding media (5 - 12 mm), called Millpebs, in regrind mills proved that finer grinding can be achieved at lower energy consumption. In ball mills, energy savings vary from 10 per cent to 40 per cent compared to 25 mm media. A regrind ball mill with a mix of small grinding media can be as energy efficient as an Isa Mill charged with 2.5 and 3.5 mm beads. In vertical stirred mills, energy savings vary from 30 per cent to 60 per cent. To carry out the same final grind, a vertical stirred mill with Millpebs will consume at least 60 per cent less energy than a ball mill using 25 mm grinding media. More potential savings were identified. To achieve those improvements, some operating conditions must be met: 1) feed size should be less than 250 ¦m; 2) the pulp must be fluid enough; 3) finally, the slurry linear velocity should not be excessive. This paper talks about all those industrial results improvement and operating conditions.

Sep 13, 2010

By W. L. Swager

Tramp (undesirable) elements introduced into iron and steel castings via purchased ferrous scrap are evaluated as to their likely degree of future threat to the quality of castings. Conclusions are based on analysis of literature and on nonmail surveys of foundries, scrap processors, trade and technical associations, and others. The existing tramp-element problem is expected to be persistent, but amenable to improved control by foundries and their suppliers. Four recommendations for action are given.

Jan 1, 1981

By Robert E. Hershey

1. Estimates of reserves were made for three coal beds in Hamilton County the - Lantana, Sewanee, and Richland. Nine coal beds have been mined at one time or another in the county, but not enough information was available to estimate reserves in any beds other than the three given. 2. Known measured and indicated reserves for all beds, based on a minimum thickness of 14 inches and on 1,800 short tons per acre-foot of coal in place, are estimated to be 53 million tons as of January 1, 1954. Of this total 35 million tons is in beds 28 inches and more thick. Areas in each bed were omitted from the estimate because available data relative to the bed characteristics were insufficient for making an estimate conforming with the definitions of measured and indicated coal adopted for this study. Should future drilling or development prove re-serves in these areas, such reserves should be added to the total estimated reserves determined by this investigation.

Jan 1, 1956

By J. O. Lewis, Carl H. Beal

The material for this paper was collected for the most part by C. H. Beal during the years 1916, 1917, and 1918. Many of the conclusions reached in regard to the life of oil wells have already been published by the Bureau of Mines 1 but those presented in this paper deal particularly with the theoretical aspects of oil production. The report discusses some of the fundamental factors governing oil production, taking up first the conditions affecting the. amount of oil in the oil sand, then those factors that control the rate of production of oil wells, and then discusses several related problems, most of which deal particularly with the effect of the production of one well on that of another.

Jan 1, 1921

By B. Caines

Much of the mining industry in North America is in a crisis state. Host producers are operating at production levels well below capacity, some have been merged or sold, while others have been mothballed or closed permanently. For many of us still operating, the future is uncertain. Despite the many cutbacks and closures, there is still an abundant supply of minerals in the world market and there is almost no hope for any relief on price pressures on most mineral commodities in the near future. The Iron Ore Company of Canada (IOC)operates an iron ore mine, a concentrator and a pellet plant known as the Carol Project located in Labrador City, Newfoundland. This concentrator and the pellet plant have the annual capacity to produce 20 million and 10 million tons respectfully. A company owned and operated railway links this operation with the dock terminal facilities in Sept Iles, Quebec.

Jan 1, 1987