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This paper examines some of the fundamental economics of mining - in particular, for optimisation studies, for production rate determination and for reserve estimates.It includes introductory discussion on the principles as to how economics drives mining investment decision-making, applicable to the optimising of pit shapes and production, or truck fleets, or any other part of the mine.The main part of this paper looks at the decision to start-up a mine and why the 'optimum' production rate to start-up a mine is not the point of lowest cost according to traditional discounted cash flow (DCF) analysis. The optimum production rate is usually substantially less than this rate. The paper recognises the difference between typical mining investments and investments in other industries that do not have the unique characteristics of mining and the problem of uncertainty resolution. It examines the marginal revenue effects, the marginal cost of capital and the value of a real option to expand pending uncertainty resolution as determinants of optimum initial production rates.The final part of this paper looks at applying these principles to renewable and non-renewable resources. It examines mine life and reserve estimates from an economic perspective.

Dec 6, 2010

We are moving into an era where we experience the consequences of the skills crisis û namely many resource models have been generated by inexperienced people under pressure to deliver high quality resource estimates in unsupported environments, often without technical mentors. These resource models form the basis of our decision to pursue actual mining. This begs the question: how valid are the resource models that form the basis of our mining decisions? This paper presents various model validation tools such as comparison of input and output statistics, swath plots, sectional or bench comparisons between drill holes and models as well as a variety of other approaches. Each model validation tool currently used in industry is examined:how the tool generates results,what assumptions exist,what constitutes a pass/fail in the test, and what interpretations to consider when using the validation tool. Each validation toolÆs suitability and the inherent flaws in the underlying assumptions are also discussed. These are supported with examples of good versus bad validations. Our principles based reporting codes provide flexibility in how models are generated and what approaches and/or parameters are used to generate resource estimates. This flexibility works well when used by experienced practitioners. However, our reporting codes assume a level of experience not always available in the current skills crisis. This paper seeks to provide minimum model validation prerequisites for model acceptance and suitability, regardless of the resource analystÆs experience. As we move forward, our immediate challenge is to ensure our baseline resource models are material, transparent and competent.

Jan 1, 2009

By Richard H. Olson

"Rarely in our technological society does the discovery of a new class of inorganic materials result in such a wide scientific interest and kaleidoscopic development of applications as has happened with the zeolite molecular sieves." The foregoing, the opening sentence in a landmark volume on zeolite molecular sieves by D. W. Breck (1974), is, if anything, an understatement. Zeolites were recognized as a new group of minerals in the 1750s, but it was not until 1930 that the first analysis of the crystal structure of a zeolite mineral was made. In the late 1940s research workers at Union Carbide Corp. began a program of zeolite synthesis and study which has resulted in one of the major research achievements of all time. Naturally, with the vast research and development efforts devoted to the synthetic molecular sieves, Union Carbide became concerned in the mid-1950s about its position should minable deposits of natural analogues be discovered. Zeolite minerals have diverse origins, and even a brief discussion of these is beyond the scope of this paper. The early work on zeolites was confined to igneous rock occurrences (e.g., amygdules and veins) which were formed by "space-filling;" these crystals tend to be euhedral, thereby rendering them appealing to both mineralogists and collectors. During the first year or so of Union Carbide's exploration (which began in mid-1957) attention was devoted solely to such igneous occurrences. A landmark paper by Bramlette and Posnjak (1933) heralded the potential significance of the occurrence of zeolite minerals as alteration products of vitric ash and similar materials. In the summer of 1958, full attention was directed by Union Carbide to the search for deposits of this type in the western United States. Since then, such exploration has been continu-

Jan 1, 1975

By Steven Hart, Graeme Hill

Boddington Gold Mine is situated 130km South-east of Perth, WA. The operation is managed by Worsley Alumina Pty Ltd. The Direct Leach plant was commissioned in mid 1986 at a rate of 3 million tonnes per annum. The plant was upgraded to 4.5 mtpa in 1988 and almost immediately to 6mtpa in 1989. Subsequent debottlenecking resulted in further increases in throughput up to 7mtpa by 1991. The SupergenelBasement Plant was constructed in 1990 and commissioned in early 1991. It was designed to process both copper-gold-silver anomalies within the laterite gold orebody and future hard rock ores. The Supergene plant incorporated control potential s­ulphidisation (CPS) and flotation ahead of CIL to remove a host of copper minerals. It operated in that configuration for 2 years at rates up to 350,000 tpa and average grades of 6.0 git gold and 1.2% copper. Gold recovery averaged 90.7% and copper recovery averaged 80.0% before the flotation circuit was decommissioned in March 1993. Quartz hosted high grade, free milling oxide and basement ores were discovered at the northern end of the orebody in 1990 and now comprise the major feed source to the basement plant. Oxide ores are currently milled at a rate of 550,000 tpa, while basement ores are milled at a 420,000 tpa rate. Metallurgical testwork during the feasibility stages indicated that up to 30% of gold in plant feed could be recovered by gravity separation methods. It was also highlighted that signifi­cant improvements in overall plant recovery and reduced operating costs would be achieved by maximising gravity gold recovery ahead of cyanidation. To achieve this, rec;iesign and upgrade of the gravity circuit was necessary.

Jan 1, 1995

By S. M. McDeavitt

Waste form alloys are being developed at Argonne National Laboratory for the disposal of remnant metallic wastes from an electrometallurgical process developed to treat spent nuclear fuel. This metal waste form consists of the fuel cladding (stainless steel or Zircaloy), noble metal fission products (e.g., Ru, Pd, Mo and Tc), and other metallic wastes. The main constituents of the metal waste stream are the cladding hulls (85 to 90 wt%); using the hulls as the dominant alloying component minimizes the overall waste volume as compared to vitrification or metal encapsulation. Two nominal compositions for the waste form are being developed: (1) stainless steel-IS wt% zirconium for stainless steel-clad fuels and (2) zirconium-8 wt% stainless steel for Zircaloy-clad fuels. The noble metal fission products are the primary source of radiation in the metal waste form. However, inclusion of actinides in the metal waste form is being investigated as an option for interim or ultimate storage. Simulated waste form alloys were prepared and analyzed to determine the baseline alloy microstructures and the microstructural distribution of noble metals and actinides. Corrosion tests of the metal waste form alloys indicate that they are highly resistant to corrosion.

Jan 1, 1996

By M. K. McCarter

In 1963, a major expansion program at Kennecott's Bingham Canyon mine converted rail operation in the upper portion of the pit to truck haulage. Since that time truck-haulage capacity has increased to about 272 000 Mg (300,000 tons) per day. The majority of this production is waste material which is deposited in monolithic dumps located on the eastern slopes of the Oquirrh Mountains. The largest of these dumps, referred to as Copper Notch and Keystone, measures approximately 1830 m (6000 ft) in length, from 180 to 300 m (600 to 1000 ft) in height, and contains some 430 Tg (470 mil lion tons) of waste. The height, structure, rapid rate of growth, and anticipated leaching suggested the possibility of dump failure. In order to evaluate this possibility, an outside consulting firm was retained in 1966 to investigate the stability of the growing dumps. Their investigation indicated that, other than superficial movement, the waste dumps would be stable under static loading, and that soil distribution was not continuous enough to sustain massive foundation failure. Since this investigation, however, several failure processes have been observed. Crest settlement occurs frequently in response to compaction and over-steepening in the upper portion of the dump surface. Over-steepening results from accumulation of fines near the crest caused by natural segregation. Normally, coarse material, near the base of the dump, exhibits an angle of repose near 0.65 rad (37"). The fine material, however, stands as steep as 0.75 rad (40"). Periodic equilibrium adjustments cause stepwise settlement (Figure 1) of the dump surface and occasional sloughing of the protective berm. Routine surface preparation by dozers and graders and frequent inspections by supervisory personnel have proven adequate in preventing problems associated with this form of crest instability.

Jan 1, 1976

By M. Rigaud, N. Zhou, K. Sankaranarayanane, X. Zhou

The effect of amount and type of dispersants on the rheological behaviour of bauxite-based low-cement castables has been studied in detail. The rheological properties: flow resistance and torque viscosity, as measured by a rheometer, are found to be strongly influenced by the amount and type of dispersants. In the present investigation, a mix containing sodium hexametaphosphate, at an optimal level, is observed to be theologically superior at the given experimental conditions.

Jan 1, 2004

One of the most significant problems experienced in land reclamation work has been the tendency of earthmovers to over-compact the subsoils and topsoils. The need for extensive subsoil drainage, because of over-compaction, becomes a very expensive exercise and can be attributed to poor planning. The problem has been addressed both at the Waihi and Huntly open-cast mines through the use of low ground pressure machines in the placement of subsoils and contouring. The use of subsoilers working to contour to aerate the soils is essential to integrate both the sub and topsoils so that significant root growth and drainage is established. Waihi's rainfall (approximately 200 mm annually) and light soils create difficulties in preparing for the final seed bed. A noticeable factor in preparation of the growing medium was the reaction of the lime particularly in the subsoils (damp), from a lumpy, quite heavy texture to almost a seed-bed texture within a period of approximately 72 hours. Also the high incidence of stone and debris which was not apparent in the placement of subsoils meant the job became very labour intensive. This will be overcome with the importation of a machine from the USA. All of the rubber tyred tractors used on these projects are four wheel drive in the 6S-aOhp range which for weight distribution and the safety factors allows for good landscaping techniques. Good engineering practices should ensure that slopes of no more than 3:1 be designed, keeping in mind that the long term planning must allow for maintenance and stock management of restored land.  In the preparation of the final growing medium the equipment used included: Caterpillar 05 LPG and blade; three-four wheel drive rubber tyre tractors; Super flow subsoiler; hydraulic twin spinner manure spreader; discs û two types; harrows; MF Seeder; Cambridge Roller and Duncan Rotatiller.

Jan 1, 1991

By B. V. Knelson

Although the concept of centrifugal recovery has been around in one form or another for many years, it has not been until recent times that it has became clearly understood am properly put into perspective. Simplistic in theory, it is when one begins to examine the variables involved that the true complexities of this matter begin to emerge. In creating an enhanced g force concentrator, there are many aspects both positive and negative that are encountered.

Jan 1, 1989

By M. W. Ryan

The US Bureau of Mines investigated cold-cutting alternatives to oxyacetylene torch cutting of metal. The alternatives examined were a pneumatic circular saw with an abrasive cutting wheel, a handheld abrasive water-jet cutting tool, an ultrathermic-cutting system, hydraulic punches and cutters, and a pneumatic reciprocating hacksaw. Sparks generated with the pneumatic circular saw or ultrathermic-cutting system were not completely eliminated with the use of water sprays. The water sprays also reduced the cutting rate of the pneumatic circular saw by 70%. The safety and performance of a handheld abrasive water jet cutting system requires additional research. The hydraulic cutters and punches are readily available and do not introduce any hazards. However, they are not comparable in price to the oxyacetylene gas torch and many different attachments would be needed to replace the torch. The pneumatic reciprocating hacksaw, which did not produce any sparks, is an acceptable alternative in terms of cutting rates. However, the price of the saw and blades is not comparable to that of the oxyacetylene gas torch. The results of this study will further the advancement of safe, efficient alternatives to oxyacetylene gas torches, which will improve miner safety.

Jan 1, 1996

By Nick Barton

Simple methods for estimating the shear strength of rock joints and waste rock are reviewed. For the case of rock joints, the methods are based on a quantitative characterization of the joint roughness and the joint wall strength. Size-effects are found to reduce the peak strength of large joint samples to values below the ultimate or so-called "residual" values measured in the laboratory. Tilt tests and surface profiling on natural size blocks within the jointed rock mass are recommended for obtaining scale-free properties. The joint parameters obtained can be used to model complete strength-displacement-dilation behavior if this level of input is required. Large scale tilt tests can be performed with advantage on both rock joints and waste rock. The behavior of these two materials is surprisingly similar. Both are influenced by the size-effects on the compression strength of the rock, and both have similar log-linear relationships between effective normal stress and the peak drained friction angles. The resulting high values of friction near the toe or close to a slope face in either material can be misleading.

Jan 1, 1983

By W. H. Emmons

Many mineral veins occupy faults, and movements on certain warped fault planes have resulted in openings. On normal faults the steeper parts have the widest openings, and on reverse faults the flatter parts have the widest openings. Theoretically the width of the opening is the sine of the angle of deflection times the amount of movement on the fault plane, but actually the widths of some of the openings are probably less because of readjustments of walls along joints or of other readjustments. The first treatment of the subject seems to have been in a book on mineral veins by John Leithart, published in Newcastle, England, in 1838. Later the subject was treated in various texts published in Germany, in England, and elsewhere. The subject was not given much prominence in the earlier American literature on economic geology, but has interested several workers in that field in the past decade. In this paper examples of districts showing ore shoots on warped faults, with relations noted, are described. Fault veins of the three depth classes of veins are noted. Many epithermal veins are in normal faults, and commonly the larger ore shoots are in their steeper portions. Many mesothermal veins are in reverse faults and, many others are in normal faults. The flatter parts of veins in reverse faults are commonly wider than the steeper parts, although they are not always as rich as the steeper segments of the veins. There are not many hypothermal veins in faults of measured displacement. Introduction When faults are followed along dip or strike, many of them are found to have curving or warped surfaces, and cross sections through them in most directions show sinuous or waving intersections. Openings are formed where one wall moves away from the other (Figs. I,2). Where there is a bend in the fault, movement in any directions except along the axis of the bend will

Jan 1, 1949

By W. H. Emmons

Many mineral veins occupy faults, and movements on certain warped fault planes have resulted in openings. On normal faults the steeper parts have the widest openings, and on reverse faults the flatter parts have the widest openings. Theoretically the width of the opening is the sine of the angle of deflection times the amount of movement on the fault plane, but actually the widths of some of the openings are probably less because of readjustments of walls along joints or of other readjustments. The first treatment of the subject seems to have been in a book on mineral veins by John Leithart, published in Newcastle, England, in 1838. Later the subject was treated in various texts published in Germany, in England, and elsewhere. The subject was not given much prominence in the earlier American literature on economic geology, but has interested several workers in that field in the past decade. In this paper examples of districts showing ore shoots on warped faults, with relations noted, are described. Fault veins of the three depth classes of veins are noted. Many epithermal veins are in normal faults, and commonly the larger ore shoots are in their steeper portions. Many mesothermal veins are in reverse faults and, many others are in normal faults. The flatter parts of veins in reverse faults are commonly wider than the steeper parts, although they are not always as rich as the steeper segments of the veins. There are not many hypothermal veins in faults of measured displacement. Introduction When faults are followed along dip or strike, many of them are found to have curving or warped surfaces, and cross sections through them in most directions show sinuous or waving intersections. Openings are formed where one wall moves away from the other (Figs. I,2). Where there is a bend in the fault, movement in any directions except along the axis of the bend will

Jan 1, 1949

By Restarick CJ

A compound cylinder-cyclone system, fitted with a flow control valve between the cylinder and cyclone, has been used for coal slurry sizing experiments in the range approximately 100 to 300 micrometres. An important feature of the system is the ability to adjust the cut size of the separation over wide limits by adjustment of the flow control valve. Results have been compared with typical fine screening operations. Under roughly equivalent conditions the compound cyclone system can achieve better elimination of extreme fines, but is not as sharp as the screen for coarser size cut-off. Simulations of systems involving combinations of the cylinder-cyclone system with screens indicate that the advantages of both sizing devices can be combined to yield accurately sized products for fine coal cleaning, at much less cost than using screens alone.

Jan 1, 1984

By Georgy Cherkashov, Vladislav Kuznetsov

The presentation describes new data concerning the age of the Mid-Atlantic Ridge (MAR) hydrothermal fields. The collection of massive sulfides recovered from six hydrothermal fields has been dated using the 230Th/U method. The range of the data obtained is rather wide: from 2.2 up to 65.1 thousand years BP. Three stages of hydrothermal activity were detected for this 65 Kyr period of geological evolution: modern (0 -5), 20-25 and 58–65 thousand BP (Figure 1). This conclusion was confirmed by dating the associated metalliferous sediment layers which also indicate the hydrothermal events led to the formation of sulfide mineralization. There is a correlation between the age and size of massive sulfide deposits: older deposits are larger (Table 1). This and other applications of obtained data will be discussed in presentation.

Aug 24, 2006

By Graham A. Mathieson

A detailed breakdown of capital and operating costs is an essential element in the planning and evaluation of any mining project. The OPCOST System was developed by Golder Associates to provide mining engineers with the facility to synthesize detailed cost estimates for all aspects of an operating or potential open pit mine. The system can also be applied to underground mines equally as well. Such estimates can be prepared at a variety of levels depending on the detail required by the project. The OPCOST System is a suite of computer programs linked through a common hierarchical data base. It simulates the thought and reasoning processes within the quantity takeoff and cost estimation phases of a mining project. The system was developed as a mining cost engineering tool on the basis that it would have to satisfy a variety of purposes, namely:

Jan 1, 1982

By Reinhold G. Schulze

Thiourea is being applied as an industrial leaching agent for gold and silver only in a few cases. A GIP technique was developed which eliminates most of the obstacles against its use. Omission of an acid treatment and mild conditions for precious metals stripping from the loaded carbon simplifies process conditions in comparison to cyanide CIP technique. Examples are given.

Jan 1, 1989

By Jamie Delgado, Marco Arelano

The changes of bench angles in an Open pit mine has a strong economical impact in the “mining business”, particularly in its cash flow related both to the decrease as well as to the increase of the global bench angle or the inter-ramp angle. The global vision of bench optimization process currently developed by Compafila Minera Zaldivar (CMZ), includes the interconnection of different processes driving to the completion of the designs. Thus five very influential areas are recognised such as: (1) The physical Surrounding terrain, (2) the strength parameters, (3) the observational model, (4) the acceptability criteria and (5) the operational considerations. One of the important variables affecting this process is Drilling and Blasting (D&B). Increasing the bench angle requires to optimisation of D&B. To achieve this efficiently controlled sub processes must be defined. Three (3) steps can be defined: (a) design parameters, (b) explosive energy distribution and (c) operation results. To control and improve said steps quantitative evaluations of D&B must be performed. One valid evaluation is the “near field vibration monitoring technique” (at bench level). With the application of damage criteria, measurements and modelling of particle velocity a proper definition and optimisation of stages (a), (b) and (c) was achieved, The use of this methodology has enabled to CMZ to successfully increase the inter-ramp angle in three degrees thus obtaining a saving of US$ 36 million in the waste material removed. Also, the efficient control of the bench slopes has resulted in the improvement of the fragmentation operational results. This has resulted in a 26Oh increase in the ore processing by saving energy in the primary crusher due to its performance improvement.

Jan 1, 2001

By Jian Li, S. Penttilä, P. Liu, W. Zheng, C. Bibby

"The materials selection for Gen IV supercritical water reactor in-core components faces major challenges due to severe operating condition. The current Canadian pressure-tube supercritical water (SCW) concept design requires core outlet temperature of 650 °C at 25 MPa with peak cladding temperature reaching as high as 850 °C. Aside from oilier challenges, there is currently very limited data on candidate stainless steels' corrosion resistance under this operating condition. Austenite stainless steels that include 316L, 304H, AL6XN and 3 l0S that cover a wide range of Cr contents are promising candidates for either direct in core applications or as base coating materials. However, their corrosion resistance has not been tested systematically under this stringent condition. In this study, these types of stainless steels are tested, and their corrosion resistances are compared.IntroductionThe Canadian pressure-tube supercritical water (SCW) concept will operate at a core outlet temperature of 650 °C at a pressure of 25 MPa, with potential peak cladding temperature reaching as high as 850 °C. High-temperature corrosion resistance is one of the key design requirements for fuel cladding components. As summarized by Allen [1 ], most testing to date has been carried out at temperatures below 730 °C. To date, SCW corrosion data above 600 °C is very limited. Even at relatively low temperature exposure to SCW (e.g. 500 °C), F/M steels develop a thick oxide layer rapidly, while some austenitic stainless steels develop thinner surface oxide. Ni based alloys appear to form very thin surface oxide, however pitting was observed in the vicinity of intermetallic precipitates [2-5]. Dissolution of major alloying components from all of these alloys could also pose significant problems for downstream piping [6]. Kaneda et al. [7] suggested some modified stainless steels provide better SCW general corrosion resistance, with no sign of SCC under the slow-strain rate test.Cho [8] suggested that as the Cr content increase, general corrosion resistance improved at 510 °C and 25 MPa. However, similar to Cho's work, most of the SCW corrosion resistance assessments were based on weight change measurement. This can be unreliable due to potential exfoliation of thick oxide film. Besides, there have been no systematic SCW corrosion resistance tests for candidate stainless steels under higher temperatures. SCW corrosion rate increase dramatically for alloys tested at 600 °C [1]. It is also important to understand the role of major alloying elements under this stringent operating condition, not only for fuel cladding components' materials selection, but also for coating materials development."

Jan 1, 2013

Although the bromo-cyanide or Diehl process for the extraction of gold from its ores is used on several of the Kalgoorlie mines, very little information has been published on the original process, and no details are available from the various mines now using it. The following description of the process as carried on at the Hannan's Star plant, where several modifications were introduced by the author, will therefore be of interest to mining men, and it is hoped that some discussion on this paper will provide further useful information to the mining community.The process was first installed on the Hannan's Star mine, where a full working plant was erected by the London-Hamburg Co. In their contract they guaranteed a 91 per cent. extraction on a sulphide ore of 15 dwt value. This was considered a very high extraction at the time, and the plant successfully carried out its work.The new features in the process were the finer grinding of the ore, for which purpose the tube mill was introduced, and the addition of a solution of bromo-cyanide to the vats under ordinary cyanide treatment, whereby a higher extraction was obtained in a shorter time. The main difficulty in the process was the easy manufacture of the bromo-cyanide solution, but this was eventually overcome. The mixed salts now supplied by the LondonHamburg Co. are in every way satisfactory, and are supplied at such a price that the process compares favourably with any other from a cost point of view.

Jan 1, 1907