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By Donald A. Dahlstrom, Wai-Ping Kam

The mineral industry and individual processing plants are large consumers of energy. While energy conservation has received some attention in the present Federal Administration National Energy Strategy proposal it is obvious that the mineral industry should also continue to emphasize energy consumption reduction for important economic savings alone. As indicated by other studies, comminution is the largest single consumer of energy in the mineral processing plant (1.3% of total electrical energy consumption in the U.S.A.).1 Fine grinding is the largest portion of this amazing statistic. While substantial energy savings have been demonstrated by new machine developments and improved control methods, undoubtedly there are additional areas in comminution where substantial progress can be made. Some time ago, the U.S. Department of Energy published a report on "Comminution and Energy Consumption" by a committee composed of experts in the field of comminution from industry and academia. They identified the following potential for energy savings by specific areas? Classification device design 9-13% Comminution device design 3-16% Control 9% Grinding additive 3-6% Materials 3% It is apparent that the classification device had the first or second highest savings potential. Obviously, serious research consideration must be given to this technology area. A series of three papers have previously been written on the subject of two stage classification research work for ball mill operation by the authors. Accordingly, a brief review will be made. Previous Research Results on Two Stage Classification The hydrocyclone was selected as the type of classification equipment for this study as it represents by far the majority of the devices used in ball milling. While four different hydrocyclone circuits have been proposed by others,3 only two were considered in this work as illustrated in Figure 1. Flowsheet A is truly counter-current in nature in that the product from the ball milling circuit is taken from the first stage overflow

Jan 1, 1992

By Raphael Trousselle, William Reisz

The blasting industry is now well into its second decade of commercial use of electronic detonators. As an increasing number of blasters are introduced to the technology, the benefits are becoming more widely monitored and accepted in many surface blasting operations. However, their use in underground applications is not yet as widely established. This is primarily due to the distinct cost dynamics and processes associated with underground lasting.

Jan 1, 2012

By Andreas Rohrhofer

Reliable high end automation and process optimization systems are main factors for excellent product quality, safe operation and maximized plant performance in the steel industry and its designated environmental plants. Primetals Technologies introduces new automation packages for consequent safe and cost efficient production. Many areas within the steelplant interested to be monitored and measured automatically are not implemented in the automation system due to limited access or technical reasons. A wireless, self-organizing network facilitates wide ranging data transmission in previously inaccessible areas and opens up a wide range of new opportunities. With Fluid Guard a system to detect leakages with highest accuracy and reacts properly for all kind of water cooled circuits is available, improving the safety in steelmaking process. Lance Guard can be utilized for all fully automatic and semi-automatic lance appliances, but is especially suitable for the products of Primetals Sublance Standard/2.0 and LiquiRob applications, since these systems make seamless integration particularly simple. Manual lance appliances may also be tested and diagnosed. Environmental plants have become a main part in steelmaking plants. Highest performance in combination with optimized energy consumption is the main target in Primetals Technologies’ innovations in automation optimization packages for dedusting systems. A new approach for preventive maintenance and operator assistance is introduced with the Acoustic Expert System. In combination with the new Ask cloud based system, Primetals enables a 24/7 monitoring and a whole lifetime observation of any equipment within a steelplant. Furthermore it is now enabled to check the condition of the plant at a fingertip at any time.

Aug 17, 2017

By Craig Faulkner

Discharge cones for large Semi Autogenous Grinding (SAG) and Autogenous Grinding (AG) mills are subjected to high wear as significant volumes of ground ore and slurry exit the mill. With the larger diameter mills of 32ft to 40ft in size becoming the norm, very high, concentrated wear is highlighting the limitations of conventional discharge cones and frequent changes are subsequently required. This paper outlines the advances made in the design of the Bullnose discharge cone. Superior wear materials to increase wear life over conventional rubber or chrome-moly steel discharge cones and the introduction of key design features to reduce reline times and improve fit and safety during installation, offer significant opportunities for the mill operator. Collated from multiple case studies, the wear data and reline history from 2004 to present clearly illustrate the way in which superior component longevity has reduced the frequency of relines over the life of the product to increase mill availability and effectively increase the tonnes milled in a period.

Jan 1, 2012

By S Coward, C Xu, P A. Dowd

"This paper provides an assessment of the current challenges in strategic mine planning and design and suggested approaches for addressing them. The specific challenges covered are: realistic quantification of downstream processes applied to orebody models to provide an integrated approach to mine design and optimisation modelling, estimation and simulation of geometallurgical variables and their integration into resource and reserve estimation and mine planning modelling, estimation and simulation of new variables for new forms of mining – deep mining, particularly block caving, and solution mining flexibility in planning and design to manage risk and minimise its impact information technology (IT) infrastructure and platforms for rapid online data collection, storage, access and processing.Most of these challenges require new types of data, variables, modelling and estimation methods. Foremost among the new types of variables and data are geometallurgical and dynamic rock mass characterisation variables. New types of data and data collection include rapid generation of very large amounts of online sensor data and the consequent need for rapid processing and modelling of these data.This paper outlines the challenges and strategies in each of these areas and uses examples of models and outputs to illustrate approaches and potential solutions.CITATION:Dowd, P A, Xu, C and Coward, S, 2014. Strategies for mine planning and design, in Proceedings Orebody Modelling and Strategic Mine Planning Symposium 2014, pp 41–50 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Nov 24, 2014

By Harry Verakis

Electronic detonator systems are an advance in technology beyond conventional electric detonators for initiating explosives and blasting agents. Their use is widening into the mining operations of the U.S.A. Each electronic detonator system differs in design, construction, operation, and testing features and each system is different than “conventional” electric detonators. There are benefits of electronic detonator systems which serve to improve blasting safety. With the introduction of electronic detonator systems for mine blasting, issues were raised about the application of MSHA regulations for shunting and circuit testing. The MSHA regulations for surface and underground mine blasting operations address the use of “electric” detonators. Although electronic detonators are initiated by an electric pulse or current, their design is unlike “electric” detonators. To resolve the issues of shunting and circuit testing with respect to MSHA regulations, a technical and field evaluation of electronic detonators was made and the results are presented.

Jan 1, 2005

Maptek, an international development software company, released version 3.2 of its Vulcan three-dimensional mining and geological software package. This latest release is expected to give clients better graphics performance and improved overall solutions. In addition, the company also released the NT version of Vulcan for Unix and personal computers. More than 800 code changes have gone into the 3.2 release, the Lakewood, CO-based company said. Many of these changes were in response to requests from Maptek's customers. Others have been motivated internally by the company to achieve better performance in its Envisage graphics interface. The introduction of hot keys and user-defined menus makes Envisage a more flexible interface and a more productive working environment. A new animation option provides new ways to enhance the organization and display of data. The animated data can include point, string, grid, triangulation and photographic-draped data. The shaft-mapping facility is also included in version 3.2. It enables the cylindrical view of the shaft to be unwrapped and displayed on the screen while the data remains in its true world coordinates. Major upgrades to Vulcan include underground blast design and geotechnical modules. The new blast design module allows the user to develop a ring design in any plane defined by the stope layout. Radial and offset holes can be developed. User-friendly editing tools make adjustments to the initial design a simple task. The user defines the plotting and reporting of rings and plot style templates allow flexibility in reporting. New features in the geotechnical toolbox include options to create daylight windows and pitch lines on the stereo nets. Geotechnical databases can be directly updated from the interpretation of the stereo net. Direct annotation of the symbols on the net is now possible and the stereo net display can be customized. Improvements to the documentation and links within the text have made the on-line help easier to navigate. Maptek also released the NT version of Vulcan soft- ware. The comprehensive design of the software pack- age for Unix and personal computers provides a three-dimensional geological modeling and mine planning system within a natural graphics environment. Users who require the power to manipulate extra- large and complex data sets will still be served by the Unix platform. Users who handle small-to-large datasets can now choose between Unix and personal computer platforms. The NT version will appeal primarily to companies that already have a personal computer network. Response to industry feedback was the basis for developing the NT version. "We want to ensure that our clients receive the optimal product for their needs," said Nicolas Simon, vice president of Maptek in North America. Some advantages of the NT version include: ? Most mining professionals are familiar with the personal computer platform. ? All of the familiar personal computer tools are now available to Vulcan users. ? Resource modeling tools that previously required the powerful Unix workstations have been brought into the personal computer environment. This will help mining companies save money. From a binary data point of view, the personal computer NT version is compatible with other platforms, such as SGIIDECIHPISUN, allowing integrated personal computer and Unix environments For more information, contact Cherie LeDoux, Maptek, 165 So. Union Blvd., Suite 777, Lakewood, CO 80228, fax 303-763-4921, e-mail: info@maptek.com, Internet: http:llwww.maptek.com.

Jan 1, 1997

By Frank Wilder

THE most important process in a gypsum mill is calcining the crude mineral. There seems, however, to be little progress or change in calcining methods. This would not be surprising if the industry was not, in other ways, developing. The demand for gypsum in its various forms, however, is growing rapidly. The output has more than doubled in six years, while the value of gypsum products, through the introduction of higher priced specialties like wall board, has nearly trebled in the same period. In other industries, under somewhat similar conditions, calcining in rotating cylinders, either by direct or indirect heat, has replaced the method that still prevails in gypsum mills. Efforts were made to use rotary calciners in manufacturing plaster of Paris in the early days of the industry in America; 25 years ago rotary calciners were in use in Germany. At that time there was great diversity of opinion in regard to their merit. In 1923, the output of calcined gypsum in the United States was 3,101,378 tons. About nine-tenths of this material was calcined in kettles, the remainder in rotary calciners. The ratio was about the same 10 years ago. During these 10 years, rotary calcining made rela-tively no gains, and there were no important changes in the construction of kettles. In their manipulation, the only change of consequence was in connection with the length of time that the gypsum is left in the kettle. For wall-plaster purposes, all producers who had not previously done so changed from second-settled to first-settled calcined gypsum, thereby reducing production costs and improving the plasticity and sand-carrying capacity of their plaster. Nevertheless, in the few mills in which they were installed, rotary calciners continue to operate, with possibly one or two exceptions, and to be highly successful. In these 10 years, the Cummer type of rotary calciner has disappeared. All rotaries now used are of the cement-mill type with a diameter of 6 or 7 ft. and length of 80 to 120 feet.

Jan 2, 1925

By Z. C. Zhen

Basing on character of fine ores, and employing all the advantage of dissolved-air flotation, the study within the dissertation put forth the methods of superfine metal mineral flotation with dissolved-air flotation equipment, and constructed a full set of laboratory flotation system. Experiments both in water and in slurry were respectively carried out by means of this flotation equipment. Further study was also fulfilled on mechanism of air-dissolved released devices, and the key components of system including ejector, releaser and saturator were designed. Optimizing devices parameters were chosen by taking ideal performance of the devices into consideration, according to orthogonal experiments and tests on bubbles factors, those performance factors were called air release rate, air release efficiency. The results with some minerals are better than JJF flotation machine with 30 litres bulk. The Dissolved-air Flotation(DAF) machine shows great potentiality in treating super-fine metal mineral concentration. The research indicates the Dissolved-air Flotation(DAF) system has superiority over mechanical flotation machine in fine flotation. Air-dissolved released bubbles appear on the surface of hydrophobic minerals in priority, solving collision probability less in the tradition fine mineral separation, such that the metallurgy technology of fine metallic minerals are improved. The exploratory research is a foundation for industrial pilot, commercial test and equipment maturity in the future.

Jan 1, 2014

By Albert E. Wood, Edgar R Shepard

The interest of the Federal Government in improvement of waterways dates from 1820, when Congress appropriated $5000 for making a survey of the Mississippi and Ohio Rivers and assigned this work to the Corps of Engineers of the Army. Since that time the Government has gradually assumed increasing jurisdiction in the matter of improvement and control of inland waterways until, by the River and Harbor Act of Jan. 21, 1927, Congress assigned to the Secretary of War and to the Chief of Engineers the duly of making surveys, in accordance with House Document No. 308, 69th Congress, to formulate plans for the most effective improvement of the navigable streams of the United States and their tributaries, for navigation, development of water power, control of floods, and the needs of irrigation. Virtually all the preliminary investigations and surveys required by this act have been completed. The reports made to Congress have been published and often are referred to as ''308 Reports." The map shown in Fig. 1 is merely a skeleton distribution of the projects covered by these reports, but it serves to indicate the magnitude of the proposed undertaking. In many instances, a single character on the map stands for a major development involving several dams and reservoirs or many miles of canals or levees. The devastating floods of 1936, and the need for worthy public works to take up the slack in employment, gave further impetus to this program and in 1936 led to the enactment of a bill authorizing a large number of these projects. The National Flood Control Act of 1936 specifically authorizes some 270 flood-control projects in 31 states, and affecting nearly every state in the Union, with an estimated construction cost of about $300,000,000. In addition, the 1936 Act directs the Secretary of War to make preliminary examinations and surveys for flood control in some 230 additional localities, and to continue surveys and studies of 18 reservoir sites. The Corps of Engineers is proceeding rapidly with foundation investiga-

Jan 1, 1940

By Albert E. Wood, Edgar R. Shepard

The interest of the Federal Government in improvement of waterways dates from 1820, when Congress appropriated $5000 for making a survey of the Mississippi and Ohio Rivers and assigned this work to the Corps of Engineers of the Army. Since that time the Government has gradually assumed increasing jurisdiction in the matter of improvement and control of inland waterways until, by the River and Harbor Act of Jan. 21, 1927, Congress assigned to the Secretary of War and to the Chief of Engineers the duly of making surveys, in accordance with House Document No. 308, 69th Congress, to formulate plans for the most effective improvement of the navigable streams of the United States and their tributaries, for navigation, development of water power, control of floods, and the needs of irrigation. Virtually all the preliminary investigations and surveys required by this act have been completed. The reports made to Congress have been published and often are referred to as ''308 Reports." The map shown in Fig. 1 is merely a skeleton distribution of the projects covered by these reports, but it serves to indicate the magnitude of the proposed undertaking. In many instances, a single character on the map stands for a major development involving several dams and reservoirs or many miles of canals or levees. The devastating floods of 1936, and the need for worthy public works to take up the slack in employment, gave further impetus to this program and in 1936 led to the enactment of a bill authorizing a large number of these projects. The National Flood Control Act of 1936 specifically authorizes some 270 flood-control projects in 31 states, and affecting nearly every state in the Union, with an estimated construction cost of about $300,000,000. In addition, the 1936 Act directs the Secretary of War to make preliminary examinations and surveys for flood control in some 230 additional localities, and to continue surveys and studies of 18 reservoir sites. The Corps of Engineers is proceeding rapidly with foundation investiga-

Jan 1, 1940

THE 143d* meeting of the American Institute of Mining and Metallurgical Engineers was held in New York, Feb. 19-22, 1934. It consisted of the annual business meeting, 45 technical sessions at which 217 papers were presented (more than ever before), two sessions of the Board of Directors, two meetings of Section delegates, three formal lectures, luncheon Monday, Tuesday and Wednesday for members and guests, three group dinners and five group luncheons, eight committee meetings, the annual reception and dinner dance, an informal dance, a smoke-dinner and the annual meeting of the Woman's Auxiliary. Attendance showed an improvement over the previous year, as follows: Total, 1534 in 1934, and 1475 in 1933; dinner dance, 543 and 426; smoker-dinner, 425 and 394; informal dance, 295 and 250; women's registration, 160 and 133; luncheons, 1034 and 734. The Coal Division held a general session and three sessions on Coal classification. It also met jointly with the Committee on Ground Movement and Subsidence. At the general session, John B. Dilworth presented a report of the Committtee on Methods of Valuing Coal Proper- ties and R. H. Sweetser a report of the Committee on Evaluation of Coal for Blast-furnace Coke. C. B Huntress, Executive Secretary of the National Coal Association, was the principal speaker at a luncheon on Monday, at which Eli T. Conner, Chairman of the Division, presided H. N. Eavenson, newly elected President of the Institute, and Edward W Parker, Secretary-Treasurer, of the Anthracite Institute, also spoke. The Executive Committee of the Division met Tuesday afternoon. The Sectional Committee on Classification of Coal met on Thursday morning and the Technical Committees on Scientific and Use Classification of Coal on Thursday afternoon. The Committee on Mining Methods held two general sessions, one for presentation of a half-dozen interesting papers on strictly mining subjects, the other on Aerial Transportation. It also participated jointly in a session on ground movement and subsidence with the committee of that name and the Coal Division The Institute's Standing Committee on Aviation had its inception at the session on Aerial Transportation

Jan 1, 1935

By J. Stowe

"While there has been continual improvement in the models for predicting deposition velocity and pipeline friction losses, the fundamental design philosophy for tailings pipelines has remained the same over the previous three or four decades: design the tailings pipeline to operate in turbulent flow without a deposit on the pipe invert for all expected process conditions. Recent improvements in the understanding of slurry pipeline flows allows for the design of pipelines operating with a deposit on the pipe invert, allowing the system to operate at moderate velocities for high flow rates, optimizing system energy requirements and maximizing pipeline wear life.Tailings pipelines are increasingly operated at higher solids concentrations when there is a greater likelihood the pipeline will operate in laminar flow due to the higher tailings slurry rheology. Historically, slurry pipelines have been operated in turbulent flow. We now know that laminar-flow pipeline operation is possible as there are several operational laminar-flow tailings pipelines. While our understanding of laminar-flow slurry pipelines is not complete, recent research provides guidance on how to approach the design of these pipelines.New sensor technology has led to the development of an instrument that provides reliable indication of bed-deposit height within a pipeline. This technology is particularly helpful in operating pipelines with a deposit and has application in better understanding the operation of laminar-flow pipelines. Failure of tailings pipelines can result in consequent damage to surrounding structures and unacceptable spillage into the environment. Modern pipeline leak detection technology allows operators to better manage this risk by ensuring safe and reliable operation of tailings pipelines.This article provides an overview of the each of the above advances in the design and operation of tailings pipelines.Operating tailings pipelines with a depositTailings pipelines, and slurry pipelines in general, are typically designed to operate without a deposit on the pipeline invert. Meaning, the minimum operating velocity exceeds the turbulent deposition velocity. This approach has been adopted due to concerns regarding potential blockage of a pipeline operating with a deposit."

Jun 1, 2019

By Guillermo Lazcano Ríos, Jorge Parvez Aguirre, Alejandro G. Díaz Berríos, Felipe Rodriguez Alveal

Codelco's Chuquicamata Underground Division (DCHS) faces issues due to collapses in its subsidence streets, which hinders the advancement of the subsidence front and leads to the loss of areas and reserves. To address these issues, DCHS and Orica have developed a new excavation methodology based on pre-loading explosives in high drawbell. This methodology involves creating a high drawbell extending from the floor of the production level to the ceiling of the subsidence level, divided into two phases: upper and lower. A resin stemming is used to separate these phases. The excavation strategy adjusts to variables such as reception volume, fluffing, and excavation geometry, involving vertical pre-loading of the explosive and the use of a separating element between the phases. The test aims to validate the new excavation methodology and the retaining element in the rock mass, evaluating aspects such as drawbell geometry, impact on the rock mass, damage to the retaining element, and fragmentation. Wireless electronic detonators are used in the upper phase to improve safety by eliminating the need for physical connections, while traditional electronic detonators are employed in the lower phase. Low-density bulk emulsion is applied to minimize the impact on the Crown pillar and extraction point, and higher-density explosives are used above the subsidence level to ensure good caving. Results showed that the blast achieved 86% conformity with the theoretical design. Resin stemming allowed for 100% effective detonation in the upper columns, and the fragmentation obtained was 5.44 inches, which was less than expected. No damage to the Crown pillar was observed, and the explosive quality met standards. This technique has proven to be effective and viable, suggesting the possibility of eliminating the subsidence level in future levels, resulting in savings, and providing greater stability to the rock mass.

Jan 21, 2025

By P. Maraboutis

Extractive industry (mining and quarrying operations), as other industrial activities, is subject to environment protection laws, regulation and standards such as the Environmental Impact Assessment directive, Natura 2000, Habitats & Birds directive, Water Framework directive etc The European Commission (EC) is aim to strengthen the EU environmental legislation to improve the (environmental and human) safety of mining activities. The mineral processing and the management of the mining waste will be covered by the new amendment of the Seveso II Directive, by a Best Available Techniques reference document (BREF) describing the Best Available Techniques of mining waste management and a new directive on the mining waste management. At the same time initiatives as the environmental liability, the energy taxation for environmental reasons and the natural resources management policy, which will have a positive impact on the protection of the environment, will affect the extractive industry operation procedures.

Jan 1, 2002

It is proposed to consider a new access, mining and hoisting system for underground deposits, as an alternative to the commonly used decline or vertical shaft access. The proposed system offers fundamental improvements in gathering of exploration data, reduction of capital expenditure and significant savings in mine operating costs. The cost reductions are achieved through:superior orebody definition by Supersucker winzing on ore prior to the commencement of capital development; considerable reduction of capital development in waste; full capitalisation on all benefits of a raisebored excavation; introduction of rubber tyred skip and rubber tyred Mine Rapid Response Vehicle; introduction of simplified ore handling system and reduction of underground mobile diesel fleet; and introduction of minimum maintenance shaft concept. The system is applicable to deposits ranging from shallow, low dip angle, narrow vein, high-grade to bigger, massive type vertical mineralisations accessed from the surface, preferably from the bottom of an open pit; it is also suitable as a down dip extension of an existing underground mine. The system is highly conducive to mine automation and emerging trend aimed to increase the ratio of mined metal/mineral to mined waste. It offers substantial reduction in diesel exhaust gas emissions to the mine atmosphere.

Jan 1, 2000

By John J. Dran

Large mining companies use a number of sophisticated analytical techniques for introducing the element of risk into the valuation of mineral reserve sites. These methods include, but are not limited to, sensitivity analysis, computer simulation, conditional probability, and portfolio theory. Such techniques enable the managements of these large companies to have an awareness of the many possible ramifications of their investment decisions. On the other hand, small mining companies and individuals in the mining business, due to limited financial and technical resources, still rely primarily on single point estimates of the value of mineral reserves. These small miners introduce the aspect of risk only through the application of an appropriate "speculative" discount rate. This paper illustrates the application of a technique for the introduction of risk into investment analysis. The method appears to be most suitable for use by small mining companies and individuals contemplating a large investment in a new mineral reserve site.

Jan 1, 1974

AS If see it, then, the engineering advances of which yob have studied here at Golden, the continued growth of. industry that you see about you here in Colorado, and the country-wide progress that I have not time to discuss-these illuminating facts should clear away any doubts as to your future. You have little license to ask, "Where is the call for engineering or what the need? Yankee fashion I might ask you by way of reply, "Have all the mines been opened? Have all the power-houses and transmission lines been built? Have the last improvements in. mill and smelter been in-stalled?" We know that the general answer is No, and the rest of the answer, which tells where are those mines and power plants and what are the new methods and processes in mining and metallurgy, must be sup-plied by you engineers of the future. And anyone who has even casually observed what recent years have brought forth in our profes- sion cannot but envy you your job. Our reconnaissance excur-sion into your future should not be much longer extended, but before turning back there are four landmarks that I would like to point out-not lofty peaks but useful tie points that are worthy of your attention as you traverse the territory of your future work. Two of these are in fact low spots or depressed areas which call for engineering activity; these are commonly called "waste" and "average." The other two are of larger significance and are rather extensive regions in the domain you are to enter and occupy. These larger tracts bear the suggestive place names "fact-finding" and "human engineering" and perhaps will prove to be the heights from which the broadest outlook is to be had in this "pilgrim's progress:" In the first place, waste deserves your attention, al-though I realize that it is possibly the most unpopular word anyone hailing from Washington can publicly utter. Its unpopularity naturally follows from its overuse in the somewhat strong charges made against the industrial and business world some years ago, when the doctrine of conservation was first preached in the land. But waste is a word to be used in an engineering sense as well as for political effect. Properly used, waste is not a word to shy at-rather it is a challenge to the engineer. For example, at present, the loss of 1 kilowatt-hour to every 5 sold is a clarion call to the electrical engineer. Waste is your target to shoot at, the obstacle for you to surmount, the giant for you to slay.

Jan 7, 1928

By D. E. Van Dillen

Seven configurations for panel entries of a longwall coal mine are compared and ranked according to structural stability. These entry configurations are analyzed using three-dimensional finite element modeling The models include large dimensions to minimize boundary effects, elastoplastic constitutive relations, and simulated excavation and construction of support systems. The stability criteria are formulated in a quantitative manner to facilitate the ranking of the entry configurations. These criteria are based on the expected volume of caved rock in the entry openings. The stability ranking is applied to the entry excavation phase, the headgate phase, and the tailate phase of the entry life cycle. Parametric variations are applied using two-dimensional finite element models to determine the sensitivity to changes in mining and design parameters.

Jan 1, 1981

By Dean L. Millar

Measures taken by mining companies around the world to reduce their carbon footprints are becoming increasingly important in the sector securing its social licence to operate. The options for measures reduce to three categories of activity: i) demand reduction by avoiding unnecessary waste of supplied energy, ii) improving the utilization of energy that does have to be consumed and iii) adopting low carbon energy production options?including renewable energy. As well as the environmental imperative, as the prices of electricity, gas and liquid fuels increase, so the economic case for activities i) to iii) gains higher priority, especially in such an energy intensive industry. The specific energy consumption for certain upstream minerals industry operations in Canada is reported to be as follows: underground mining: 99.5 kWh/tonne mined; surface mining: 11.7 kWh/tonne mined; base metal processing: 81.4 kWh/tonne milled; gold processing: 99.6 kWh/tonne milled. Around 508 kWh/tonne (slag) of heat is reported to be available in cooling slag from 1500°C to 25°C; an amount that is simply indicative of the energy intensity of downstream smelting and refining operations. Low carbon, energy saving technology options that are available to mining industry companies lead to projects with return rates that must compete alongside other capital intensive projects considered by mining company boards. Energy projects frequently involve longer payback periods and lower rates of return than those of competing bids for capital, such as those for development of new mineral properties. For energy services companies (ESCOs) that specialize in the financing, construction, and the efficient operation and maintenance of energy projects, the same returns and payback periods may be considered acceptable or even attractive. For the ESCO, the key commercial risk mitigating factor is a securing a long term contract for the supply of energy.

May 1, 2011