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By R. W. Boyle

"EDITOR'S NOTEPart 1 of this paper, published in the August issue, covered lithochemical surveys based on major, minor and trace elements in whole-rock samples from primary enveloping halos.Part 2, which follows, continues with discussions of surveys based on leakage halos, zonation of elements, stable and radioactive isotopic distributions, and geothermometric, geobarometric, thermoluminiscent, pedochemical, hydro-chemical, atmochemical and biogeochemical methods. It concludes with a selected bibliography.Surveys Utilizing Leakage HalosLeakage halos can be used as scalar or vector quantities in thesearch for deeply buried blind mineral deposits. In the first case, the occurrence of a leakage halo (e.g. a small pitchblende seam) may simply indicate the possible presence of pitchblende mineralization or orebodies; in the second case, the areal or three-dimensional distribution of leakage halos may, by their increasing frequency and I or increasing metallic or gangue element content, provide a means of vectoring in on loci of mineralization and orebodies. Examples of both cases are given in the following text.Leakage halos are of many types, as shown in Figure 2 (Part 1), and are best discussed with respect to their associated mineral deposits. Furthermore, it should be noted that leakage halos are frequently offshoots or extensions of enveloping halos. Where this occurs, careful tracing of the leakage halo(s) downward or upward respectively will often lead to the apex or nadir (bottom) of the enveloping halo(s) and ultimately to mineralization or ore."

Jan 1, 1982

By F. Lincoln & B. Rodier, G. Poniatowski, N. Kawashima, T. J. White, J. H. Kyle, G. F. Eaton

The history of Australia is a narrative of the discovery and development of its mineral wealth. The gold strike at Ballarat, Victoria, in 1851 transformed the colony by triggering the first great influx of migrants to Australia, and the development of subsequent mineral discoveries lead to a vast resource industry. However, beneficiation of base and precious metal ores carried with it an environmental penalty, not addressed until the last quarter of this century. In particular, the extensive deposits of gold, silver, lead, copper and zinc reside in sulphurous ores which often contain arsenic, antimony and mercury as significant contaminants that are released as unwanted by-products during smelting and refining. Until recently, these toxic concentrates were discharged to the atmosphere or receiving waters, collected in tailings ponds close to the smelters, or dumped at sea. Although such procedures . were acceptable in the past, more stringent environmental controls have required a re-examination of these practices and encouraged intensive efforts to develop enduring solutions to the disposal of these wastes. From this research has emerged a promising new generic technology called Xtaltite (pronounced crystal-tight). In this approach, geochemical principles are employed, first, to reduce the toxicity of heavy metals to low levels, and second, to identify and engineer suitable repositories for the permanent disposal of the consolidated waste form. In this paper, we emphasise the application of Xtaltite to the disposal of arsenious smelter fumes derived from gold winning. The principles ofXtaltite will be described and its technical and economic performance compared with conventional technolo­gies.

Jan 1, 1995

By Mark Colwell, Russell Frith

This paper summarizes the results of a research project whose goal was to provide the Australian coal industry with a chain pillar design methodology readily usable by colliery staff. The project was primarily funded by the Australian Coal Association Research Program and further supported by several Australian longwall operations. The starting point or basis of the project was the Analysis of Longwall Pillar Stability (ALPS) methodology. ALPS was chosen because of its operational focus; it uses tailgate performance as the determining chain pillar design criterion rather than simply pillar stability. Furthermore, ALPS recognizes that several geotechnical and design factors, including (but not limited to) chain pillar stability, affect that performance. There are some geotechnical and mine layout differences between United States and Australian coal fields that required investigation and, therefore, calibration before the full benefits offered by the ALPS methodology could be realized in Australia. Ultimately, case history data were collected from 19 longwall mines representing approximately 60% of all Australian longwall operations. In addition, six monitoring sites incorporated an array of hydraulic stress cells to measure the change in vertical stress throughout the various phases of the longwall extraction cycle. The sites also incorporated extensometers to monitor roof and rib performance in response to the retreating longwallface. The study found strong relationships between the tailgate stability factor, the Coal Mine Roof Rating, and the installed level of primary support. The final outcome of the project is a chain pillar design methodology called Analysis of Longwall Tailgate Serviceability (ALTS). Guidelines for using ALTS are provided.

Jan 5, 1999

By Leon Y. Sadler, E. K. Landis

Froth flotation has been described by several authors" as being analogous to a first-order rate process. Although a few investigators"," have found orders other than one fit their data best, the rate is described most often by the first-order equation, [ ] where r is rate of disappearance of floatable mineral by flotation, C(t) is concentration of floatable mineral in the cell, t is time, and k is first-order flotation rate constant. One of the difficulties in using this rate equation to develop a mathematical description of an actual flotation process is the determination of a suitable value of the constant k. The value of k, which reflects the floatability of the floatable mineral, is dependent on the hydrodynamic conditions in the cell, type and concentration of flotation reagents used, pulp density, and pH, method of froth removal, aeration rate, particle characteristics, and many other factors. Therefore, it is reasonable to expect that each particle of floatable material has a distinct value of k and that a unique distribution of k values exists for given feed and cell conditions. This has been observed and discussed by several investigators, and mathematical descriptions of the batch cell and steady-state continuous cell with distributed flotation rate constant have been developed." The mathematical description in the form of a transfer function of the continuous or flow cell under unsteady-state conditions with a distributed flotation rate constant has not been presented in the literature. The purpose of this note is to make such a presentation. The basic features of the perfectly mixed continuous

Jan 1, 1974

By William G. Pariseau

The research reported here concerns a four year study of the rock mechanics aspects of two underground hardrock mine study stopes. The first study was conducted at Anaconda Minerals Company's Carr Fork Mine near Tooele, Utah. The second study was conducted at the Homestake Mining Company's Homestake Mine In Lead, South Dakota. Both case studies were cooperative efforts of mining company personnel, the Spokane Research Center of the Bureau of Mines and the Department of Mining Engineering, University of Utah. Large diameter (6 1/2 In.) blastholes were an integral part of the stoplng method at each mine. A true vertical crater retreat (VCR) method was used at the Homestake Mine, while a vertical bench mining method (VBM) was used at the Carr Fork Mine. VCR and VBM methods were developed In the 1970's; they offer significant productivity gain and are now used throughout the world. The new technology, however, brings with It a requirement for more sophisticated engineering design and control. Since there are no personnel in a VCR or VBM stope, all ground control Including dimensioning of stopes and pillars and the layout of cable bolt assays or other artificial support must be done in advance of production blasting. Accordingly, the objective of the research study was the establishment of a procedure for optimizing stops and pillar sizes. The approach taken was In each case a combination of mine measurements of the study stope response to mining, laboratory testing for rock properties and In situ stress measurements of the premining stress field, and theoretical calculations of the study stope response to mining. All calculations were done with the UTAH-II finite element computer program. Simulation of the blasting sequence gave a correlation of 0.88 between measured and calculated extensometer readings (Incremental relative displacements) at the Carr Fork Mine where other 30 Instrumentation boreholes were used to monitor the test stope response. A correlation of 0.84 was obtained at the Homestake Mine where 19 instrumented boreholes were used for monitoring purposes. These high correlations validated the computer mode and calibrated It for rock mass properties. The calibrated model was then used In parametric studies of alternative design layouts.

Jan 1, 1985

By R. Q. Phillips

INTRODUCTION Since Canada commenced sulphur exports in the early 1960's, the volume of exports has grown steadily and by 1984 Canadian sulphur accounted for 45% of internationally traded sulphur. In 1984 a total of 7.6 million tonnes of Canadian sulphur was shipped to offshore markets and the U.S.A. Total shipments, including domestic sales, were 8.3 million tonnes. With a production of some 5.6 million tonnes, inventory was drawn down by nearly 3 million tonnes in order to keep pace with demand. Since 1979, world consumption has exceeded total world production and Canadian sulphur inventory has played a truly crucial role in balancing world supply and demand. Consequently, by the end of 1984 the Canadian inventory, which stood at 21 million tonnes in 1978, had been almost halved to 12 million tonnes. This inventory, however, is still by far the largest in the world and will continue to play a vital role in the world supply until expected depletion around 1990. Canada is the world's second largest producer of sulphur following the U.S.A.. The Current production level of between 5 and 6 million tonnes per annum is forecast to be maintained to 1990 with only a marginal fall in that production level in the following decade to the year 2000. This will ensure that Canada retains its position as one of the largest producers and most important suppliers of sulphur in the world market well into the future. CANADA AS WORLD SUPPLIER OF SULPHUR Since Canada commenced sulphur exports in the early 19601s, exports have grown steadily. (Figure 1) The rate of growth accelerated in recent years and in 1984 a total of 7.6 million tonnes was sold for export, compared to 3.0 million tonnes in 1975 and less than 1 million tonnes in 1964. World trade in sulphur also increased during this period, from 11 million tonnes in 1975 to 17.0 million tonnes in 1984 (Figure 2). Most of this increase in volume was accounted for by Canada and Poland. As a result, the importance of Canada as world supplier expanded from 28% in 1975 to 45% in 1984. The markets for Canadian sulphur can be divided into two broad categories, i.e., solid and liquid (Figure 3). The solid market is the largest, taking about 70% of Canadian output, virtually all of which is sold offshore. The U.S.A. and the Canadian domestic market take about 20% and 10% respectively, in liquid form. In 1984, (figure 4) total Canadian sulphur sales exceeded 8 million tonnes with offshore export sales at a record 5.8 million tonnes and sales to the U.S. of 1.8 million tonnes. Domestic sales accounted for only 0.7 million tonnes. The general trend for offshore export sales has been upward whereas there has been relative stability in domestic sales. The exceptional growth in offshore sales in the 1970's necessitated considerable capital investments by the industry in order to establish a logistics system capable of handling increasing offshore tonnages. Over 50 sulphur plants are currently operating in Alberta and British Columbia. Some of these are connected by rail, (Figure 5) the balance being generally connected by road. There are currently fourteen of the larger rail-connected plants designated as export plants, and these are equipped with sulphur forming facilities. The long distances between these plants and tidewater terminals in Vancouver is a very significant factor in complex logistics of Canadian offshore sulphur exports (Figure 6). Alberta and B.C. plants are located an average of 1,400 kilometers from tidewater.

Jan 1, 1986

By Gary Friedline

As a consequence of the Coal Mine Health and Safety Act of 1969(PL91-173), the Bureau of Mines (BOM) entered into a contract with Ocean Energy Inc. (OEI) to develop, fabricate, install, and evaluate a permissible lighting system for use on a longwall coal mining operation. The program schedule is shown in Figure 1.1. The proposed regulations are contained in Appendix A. The initial part of the program involved a survey of existing longwall lighting practices in Germany and England and an evaluation of a variety of lighting components on a mockup of a longwall mining operation that was fabricated under this program. Visits made to German and British mines uncovered major differences in lighting level requirements, permissibility aspects, size, and operating constraints which identified wide disparities and essentially eliminated from further consideration any known imported lighting devices for meeting the higher lighting levels and standards proposed for US coal mines by the Mining Enforcement and Safety Administration (MESA). The longwall mockup provided use¬ful information regarding the amount of illumination required, physical size and shape of lamps, light distribution problems, cable routing, use of connectors, signaling, glare, and other important factors unique to the lighting of low coal longwalls.

Jan 1, 1975

By N. J. Rarmrez, C. Perez, J. D. Calderon, L. Lopez

"Among the thermal characterization of any material, one of the variables to know is the coefficient of thermal conductivity because this value can tell how much heat passes through the material and if the material could be used as an isolator. In order to determine this parameter is required some kind of special equipment and controlled conditions which implies high costs in the development of tests. The present paper proposes a design of a low cost measurement system in order to determine this coefficient with the lower possible error. This equipment was thought for companies or labs where they do not have the economic resources or the infrastructure (environmental controlled labs, heat flux transducers, human resources with specialized knowledge) to do this kind of tests.The system is based on ASTM C 518 - 04 [l] and integrated by two plates (one that contains a thermal resistance and which temperature is controlled by a closed loop controller and the other one with a route of water flow). The thermal resistance is actuated by a relay and a supervisor system checks the total time the relay is on in order to determine the effective power applied to the system. The contact faces of the plates contain a group of temperature sensors connected to a data acquisition system that process and record the temperature in each measurement point.With the power applied to the system, the measurement of temperatures and a process of calibration is possible to determine the coefficient of thermal conductivity. IntroductionWithin the thermal characterization of a material of known variables is the coefficient of heat transfer, since this value can know the amount of heat the material is capable of transferring or isolating. To determine this ratio requires specialized equipment and controlled conditions, which implies high costs in the development of a test. This article proposes a design of a low cost machine to allow closer this coefficient with the least possible error. This equipment was done thinking about companies that do not have the infrastructure (laboratories, controlled environment, heat flux sensors, human resources expertise) and financial resources to conduct these tests."

Jan 1, 2011

Mining is a global industry. The conference is a good example of this, as itÆs jointly organised by professional associations from Canada, Australia and South Africa, and has attracted speakers and delegates from around the world. I commend the organisers for their initiative. I am pleased to be asked to participate in this panel û although I would hasten to add I see myself as perhaps an informed observer rather than an expert. It wonÆt be news to most in this room that AustraliaÆs mining sector is booming. As one of the most productive and diversified mineral regions in the world, this activity is also something that has not escaped the attention of CanadaÆs largest mining companies! This means that I follow what is happening in the industry and more specifically what might be occurring here. Two-way investment between Canada and Australia stood at $9.8 billion in 2005 with Canada as the seventh largest overall investor in Australia with $8.22 billion in investments. The majority of this investment is by Canadian minerals and metals companies. In recognition of the importance of Canadian investment in this sector in Australia, I maintain close contact with our companies. By way of example, in the past two months I spent a week in Western Australia visiting Perth and meeting with companies for example, like Teck Cominco and LionOre as well as seeing various Barrick Gold operations in Kalgoorlie. I attended the opening of AlcanÆs new Asia Pacific Headquarters in Brisbane in August and just two weeks ago was in Cowal, NSW for the opening of BarrickÆs new mine there. Having met with BHP Billiton in Vancouver, IÆm equally aware of active Australian mining interests in Canada. This is not designed to indicate how active I am but rather to demonstrate the dynamism in the mining industry and the diversity of Canadian mining interests in this country and Australian interests in Canada.

Jan 1, 2006

By William L. Crentz

This Investigation of the preparation characteristics of the coals in Armstrong County, Pa., is the third in a series of Bureau publications by counties appraising the practicability of upgrading marginal deposits to metallurgical standards. Earlier investigations covered the washing characteristics of the coals occurring in Cambria County, and the principal reserves remaining in Indiana County. In Armstrong County, the Upper Freeport bed is the major source of production, the Lower Kittanning bed being of secondary importance. The Lower Freeport bed is mined to some degree, but it is usually too thin and spotty in occurrence to support large-scale operations. The remaining production is taken from the Pittsburgh, Middle Kittanning, and Upper Kittanning beds, but the quantities are insignificant. Table 1 shows the county's coal production) by beds, during 1948. The coals of Armstrong County are not generally considered to be of metallurgical quality because of the high sulfur content. The raw coals usually analyze more than 2 percent sulfur, and more than 4 percent sulfur is not uncommon, especially in the Lower Kittanning bed.

Jan 1, 1951

In the interest of safety in underground coal mining, the Bureau of Mines recommends: 1. That doors used to control ventilation (a) Shall be installed in pairs to form air locks, (b) Shall be self-closing, (c) Shall not have latches or other devices for holding them open, (d) Shall be constructed and maintained to prevent excessive air leakage through or around them, (e) Shall be fire resistant. 2. That wherever practicable the use of doors shall be limited to development openings. The Mine Safety Board is of the opinion that the best practice in coal-mine ventilation makes use of a split system employing overcasts or undercasts with doors limited as far as feasible to development openings. The distance between air-lock doors on haulageways should be sufficient to accommodate a trip or train of maximum length. Where auxiliary doors are installed to control ventilation during emergencies, they should be so placed that they can be utilized readily in case of damage to the air-lock doors.

Jan 1, 1938

By C. D. Anderson

A variety of processing technologies exist for recovery from both primary and secondary sources of rhenium. Currently, there are no known primary rhenium deposits; thus, the method in which primary rhenium is produced is dependent on the commodity of which it is a byproduct, e.g., copper, molybdenum, uranium, etc. In addition, focus on the recovery of rhenium from secondary sources, such as alloy scraps and catalysts, is continually growing. This paper presents a review of both primary and secondary processing technologies for the recovery of rhenium.

By Dario Libano, Armando Caputo, Francisco Caputo

"UHE Peixe Angical is a 452 MW hydroelectric power plant located on the Tocantins River in Tocantins, Brazil. In 1999, geologists began feasibility studies to estimate the river’s hydroelectric potential, and the decision was made to proceed with the construction of a power plant. In 2002, after extensive investigation, the studies indicated geological homogeneity at the site for the dam, except for an anomaly detected on the left margin, and construction began on the $1.2 billion project.As the work began, the complex ground conditions presented several serious difficulties. The solution was unlike any undertaken before in Brazil— a 100-m-long secant cutoff wall, with 76 1.8-m-diameter piles of up to 78 m deep. All were placed in a six-month period.In the preparation for the detailed construction plans, further studies in the area of the anomaly better defined the geology so that a treatment program could be developed. The feasibility study had detected silicified rock with high permeability in one area, and an injection curtain was designed with five injection lines. In the other area with an anomaly, further investigation revealed a permeable marble formation that was 50 m thick. Here, a specific injection program with three injection lines was developed.The injections started in February 2005 in the marble formation area. By July of that year, only the primary and secondary holes were drilled from the three lines, resulting in a space between injections of 1.50 m. By the end of July, the drilling was halted. The contractor had identified a thick area of heterogeneous material below the transition zone that was characterized by a mixture of soil, fractured rock and hard fractured rock. The anomalies were detected while drilling, and both the general contractor and the designer concluded that the phenomenon of “piping” was taking place.Constructing a positive cutoff wall became a priority."

Jan 1, 2009

By J. S. Dunning

One Federal Bureau of Mines research goal, to minimize requirements for domestically scarce mineral commodities through conservation and substitution, can be accomplished by utilizing more abundant elements such as iron, molybdenum, and titanium. An example of this research is the study of precipitation-hardening, iron-base alloys containing molybdenum and titanium, as substitutes for the high-tonnage stainless steels that are high in imported nickel and chromium. The precipitation hardened iron-base alloys are strengthened by a dispersion of the ternary Laves phase, Fe2 (Mo, Ti). Aluminum and chromium additions changed the solid solubility limits of molybdenum and titanium in a-iron and affected the composition of precipitating phases. A baseline composition of Fe-7Mo-2Ti was selected to study the effects of aluminum and chromium additions on the precipitation-hardening mechanism and microstructure and was also used in studies of mechanical properties and oxidation resistance. The study yielded workable, precipitation-hardening alloys, with elevated temperature strengths equivalent to or superior to types 304 and 316 stainless steels. Chromium and aluminum additions in combination were more effective in providing oxidation resistance than either addition was alone.

Jan 1, 1980

The Subcommittee on Manganese, of the A.I.M.E. Committee on Industrial Preparedness, prepared under date of Jan. 24, 1924, for and at the request of the War Department, a confidential report on manganese as an element in the problem of national defense. This report was later released and published, in slightly modified form, as a separate pamphlet. After the lapse of eight years, in view of the vital position of manganese in the problem of industrial preparedness agenist a war emergency, the War Department made a request to have the onclusions of 1924 reviewed and brought up to date. To comply wi' this request the manganese subcommittee was reconvened and ex' tive studies were once more made of the entire subject of mang? . A new report, with specific recommendations, was submitted + War Department in February, 1932. This second report, with 4. L specific conclusions and recomrnendations expressed to the War Department omitted, has now been released and is hereby published. Following a rather brief discussion of uses of manganese and classification of manganese ores, requirements and sources are dealt with at some length. Domestic ferro-grade reserves are estimated on the basis of price and are shown by means of a curve where tons of metallic manganese are plotted cumulatively against prices ranging from 50¢ to $1.00 per unit; thereby indicating at a glance the tonnage which the Committee believes would become commercially available at any particular price per unit. Foreign sources of ore are described and foreign prices which the domestic producer must meet are considered. The question of a war-emergency reserve is then analyzed, requirements are balanced against apparent resources, and the principal conclusion that emerges is that a war reserve or stockpile is still vital to national defense.

Jan 1, 1934

By D Newton

The Mt Morgan Minesite in Central Queensland has been subject to both underground and surface gold mining operations since the late-1800s. The site is largely unrehabilitated and poor quality surface run-off and subsurface leachate is contaminating the nearby Dee River. The site is dominated by a large open cut, which now stores contaminated surface and subsurface run-off. Three models were used to simulate the complex hydrologic processes occurring at the Mt Morgan Mine: a rainfall-run-off model, a groundwater model and a storage behavioural model. Study results showed that the open cut is filling with water and will soon spill large volumes of highly polluted water to the Dee River on a regular basis if no remedial action is taken. This will result in a three-fold increase in pollutant load to the Dee River. Based on a consideration of water quality and quantity it was concluded that the first priority for future minesite water management should be the prevention of spills from the open cut. Potential management options to achieve this objective included surface rehabilitation, catchment diversions, modification of the pump-back system and controlled releases to the Dee River during floods. However, assessing the relative effectiveness of these measures required a thorough understanding of the complex surface and subsurface hydrology of the site. The results of a 100 year simulation of hydrologic processes revealed that previously favoured management options would be ineffective in preventing spills to the river. On this basis, a continuous treat and release strategy was proposed as the only reliable method of preventing future spills. The results of this study demonstrate that good environmental management decisions must be based on an understanding of the relevant physical processes and consideration of cumulative effects over an appropriate time scale.

Jan 1, 2003

ROBERT M. KEENEY,* Portsmouth, Ohio (written discussion?).- Mr. Coffin has written a most interesting paper that covers most of the uses to which water-cooled devices are subjected; but to meet with the operating department's approval, these devices must effect a saving in cost per ton of ingots produced in the furnace. The making of steel in the open-hearth furnace is dependent entirely on the personal element. It is not possible to charge the furnace with so much raw material, turn on a valve for heat, and by use of recording thermometers, clocks, etc. empty the furnace when a steel is made. Competent men trained to the work must be in charge all the time, and the quality and quantity of steel produced is quite as dependent on the care and working qualities of the furnaces as on the raw material and working of the charge itself. Steel making is hot, hard work and the inducement offered to technical men to take up this work is not sufficient to induce many to enter the field. The result is that most of the workmen in an open-hearth plant, the men who actually operate the furnace and make the steel, are not technical men and do not understand the "whys" and "wherefores " and care less. All this means that a furnace must be built as nearly fool-proof as possible. By this I mean that it is necessary to protect those parts of a furnace most subject to abuse by water-cooled devices whenever possible, and these water-cooled appliances must he as nearly fool-proof as they can be made. The control of the gas entering a furnace is of the utmost importance. This means a properly designed port must have the same design throughout the whole run of the furnace. This is not possible with the ordinary

Jan 6, 1919

By Mitchell Gordon

"In almost all thickener applications the highest possible solid/liquid separation efficiency is what is desired by the user. There is a trend in the industry due to monetary restraints and environmental pressures to look at ways to extract this maximum performance by either retrofitting existing thickeners or installing the most cost effective new thickener. This paper looks at some of the common problem areas and presents a range of solutions developed by Outokumpu Mintec in North America and outokumpu's subsidiary Supaflo Technologies Pty. Ltd.The Emerging PictureAfter many hours of discussions with a large number of plant personnel over the last two years a picture began to emerge regarding current thickening operations in the industry. Initially, it seemed that everybody had their own unique process problems and therefore needed a correspondingly unique solution. Looking more closely at all the cases and the ideas that we had either implemented or suggested, it gradually became apparent that the majority of operators all had one and the same process need ....""Better Separation Efficiency""The range of operational problems that were uncovered in the survey were much more varied than expected and often were not even considered initially to be thickener problems. Often, it was only after the rejection of many solutions to the problem, generally due to capital cost, that the actual cause of the problem was looked at and found to be a thick-ener.A summary of the problems that have so far been identified is presented in Table 1. They are subdivided under three major categories of environmental, process and paste fill to highlight the wide range of mining activities that can be affected by poor thickener performance. These seem to be the major areas where the need for better separation efficiency is rooted."

Jan 1, 1995

By E. P: Mathewson

Discussion of the paper of E. P: Mathewson, presented at the Butte Meeting, August, 1913, and printed in Bulletin No. 78, June, 1913, pp. 1033 to 1037. PROF. JOSEPH W. RICHARDS, South Bethlehem, Pa. :-Speaking to the question of the development of the basic lining, and speaking from a somewhat considerable study of the history of the process, ,I think Mr. Mathewson's conclusion (in the last paragraph. of his paper) is perfectly justified and is very fairly stated. Messrs. Smith and Pierce worked at developing their process for many years ; copper men had been trying their level best to get away from the silica lining of the converters and had uniformly failed. On one page of Mr. Mathewson's paper we read that at the old works of the Anaconda Company, at Anaconda, the experiments " were abandoned on the score of cost and lack of advantages." On the next page, after describing the work of Messrs. Smith and Pierce, we have the statement that the Anaconda Company lined a shell with mangnesite brick and the ?results were excellent." I think Mr. Mathewson's statement that to Smith and Pierce belongs the credit of developing a long-discredited idea, is correct. C. D,. DEMOND, Anaconda, Mont. :-It seems to me that the matter of the lining is important; my impression is that they used tar in their basic lining and that did not seem to be at all successful at Anaconda, but silicate of soda was very successful. MR. RICHARDS :-I did not know that they- had abandoned the use of tar. MR. DEMOND :-I said I thought that was the practice. At Anaconda that was not at all satisfactory in the basic linings. Silicate of soda was very satisfactory and is so.

Jan 11, 1913

By S. A. Abdel Sabour

Strategic decisions in the mining industry are made under multiple technical and market uncertainties. Therefore, to reach the best possible decision, based on information available, it is necessary to integrate uncertainty about the input variables and model financial risk of the project?s merit measures. However, this provides few useful insights to decision-makers unless accompanied by modelling management responses to uncertainty resolutions. It is widely acknowledged that conventional decision-support methods based on static, no-change, discounted cash flow (DCF) techniques such as net present value (NPV) and internal rate of return (IRR) tend to provide inaccurate value estimates. This could mislead the strategic decision-making process and result in significant value losses. This paper aims to model financial risk related to uncertainty about market variables such as metal prices and foreign exchange rates. Other sources of risk that are related, for example, to geology and production costs are not considered in this work. The article outlines a flexible financial model that integrates uncertainty about market variables and management flexibility to react to uncertainty resolutions into mine project valuation using a real-options valuation technique based on Monte Carlo simulation. Significance of information generated from this simulation-based flexible valuation model to the strategic decision-making process is tested using an illustrative case study of a Canadian mining project. The project is a typical multi-metal, open pit mine that produces copper and gold. In this case, there are three uncertain market variables, which are: copper and gold prices and US$/CAN$ exchange rate. Financial valuations are carried out using both the conventional static DCF method and a flexible real-options model. In the flexible model, management flexibility to decide whether to go ahead with the next expansion or terminate production operations is integrated. Results show how the flexible financial model can enhance the decision-making process.

Jan 1, 2009