Search Documents

By Hon. Charles McCrea

MINING taxation is a subject which bears definitely upon-the welfare of the mining indus-try. Every government must have a revenue but that revenue should be raised in such a way as to hamper as little as possible legitimate enterprise or industry. A mining tax should be fair, and one which appeals to the natural sense of justice. Our present system is a tax on net- profits after all expenses are met. On profits in excess of $10,000 the Mining Tax Act takes three per cent., one-half of which goes to the Govern-ment and one-half to the municipality in which the mines are situated, to meet local needs for roads, schools, etc. On profits from one to five million dollars", the tax is five per cent.; over five million, six per cent., and so on. The first $10,000 profit is exempt. The result is that if a mine is worked at a loss, it pays no tax at all; if it makes a small profit, it pays a small tax; if profits are large, the tax increases accordingly. It is difficult to imagine a fairer or less onerous method of taxation, or one better adapted to meet fluctuating conditions from year to year as profits rise or fall. A just and fair tax should be levied on profits, never on capital. There is, one branch of the mining industry upon which is levied a higher tax than upon other branches, namely, the nickel industry. I see no good reason why any branch of the mining industry should be discrim-inated against on a profits tax basis. A mining tax should not discourage development. The present tax meets this requirement. In the early years of a mine, when it is all outgo and no income, the mine pays no tax. Not until it reaches a productive and. profitable stage does the tax take effect, and then the mine can afford to pay it. Further, a tax on profits does not operate against the opening up of low-grade deposits, or those in which the chance of success is to a certain extent speculative.

Jan 10, 1923

By A Marton

Concerns with crest losses have seen changes to a number of design and operating parameters to retain the integrity of the wall and the berms of the Kidston Gold MinesÆ Eldridge Pit. Until trials began in 1999 most final wall designs utilised large diameter blastholes up to the presplit row to achieve the wall angle. The berm crests were being lost, wall support requirements were increasing and affecting mining schedules and several fault areas were putting pit access at risk. Standard designs had been determined during the early mining years and while periodic modifications had been made there was a need for major blast pattern revision. This paper traces the development of wall control blasting programs over the years, relating designs to the geology and the evidence in the walls with the theories of the day and includes the recent trials that were conducted in what is a most unforgiving geology. Trials and improvements to ensure the walls were safe were conducted even as the mine neared its economic life. Instrumented monitoring of trials blasts has greatly increased the understanding of the damage criteria and enabled rapid revision of designs. Recent changes included reduction in presplit energy, charge redistribution and use of smaller blast holes for the trim patterns. Determination of a minimum proximity-to-final wall limit for production blastholes, establishment of the correct standoff to berm crests and walls and selective use of presplitting techniques for protecting crests have resulted in cost effectiveness, improved bench crest retention and an overall reduction in visible wall damage.

Jan 1, 2001

By Zeng Zheng, Liu Chen, Yu Xing-Fu, Tian Su-Gui, Zhang Chao

"Single crystal nickel-base superalloy is prepared by using the various withdrawing rates. By measuring creep properties and microstructure observation, the influence of the element segregation on creep properties of the superalloys is investigated. Results show that the dendrite spacing and the segregation extent of the elements decrease with the enhancing withdrawing rate. The superalloy with smaller dendrite spacing has lower segregation of the elements and better creep resistance. The dislocations climbing over the rafted y’ phase is thought to be the deformation mechanism of the alloy during steady state creep. In the later stage of creep, the fact that some dislocations shear into the rafted y’ phase may twist the rafted y’ phase. As the creep goes on, the initiation and propagation of the cracks occur up to occurring creep fracture, which is thought to be the fracture mechanism of the superalloy during creep.1. IntroductionSingle crystal nickel-based superalloys consist of high volume fraction of ?? strengthening phase and ? matrix, and possess the excellent high-temperature mechanical and creep properties, therefore, they have become the main material to make the blades of the advanced aeroengines[1-3]. Some literatures report that the temperature-bearing and creep-resistance properties of the single crystal nickel-based superalloys can be remarkably improved as the increases content of the refractory elements, such as W and Re[4-6]."

Jan 1, 2012

By M. J. Preim

Two case histories are presented on the evaluation of static bearing capacity of piles driven in soils that exhibit time dependent strength changes. Under consideration are a steel and a concrete pile driven into soils generally consisting of silty and clayey fine sand. Pile dynamic measurements and analyses were performed on both piles during initial installation, and also during restrike one week later. This information was used to predict each pile's long term capacity (defined as 14 days after initial drive), which was then compared to that measured with a static load test. Agreement between predicted and measured capacities were remarkably good, with an average error of only 4.5 percent. Two weeks after driving, total pile capacities were three times those at the end of drive. If only the skin friction was considered, however, it increased by an average factor of 16. The increase in pile capacity was determined to be linear over the time period considered.

Jan 1, 1989

By H. W. Glen

The use of a personal style (mainly active voice and first person) makes technical writing more pleasant to read, and helps the writer to express his meaning clearly and to avoid many of the stylistic errors normally encountered in that type of writing.

Jan 1, 1979

By S. Kauchali

"Underground coal gasification (UCG) is recognized as an efficient mining technique capable of chemically converting the coal from deep coal seams into synthesis gas. Depending on the main constituents of the synthesis gas, chemicals, electricity, or heat can be produced at the surface. This paper provides a high-level graphical method to assist practitioners in developing preliminary gasification processes and experimental programmes prior to detailed designs or field trials. The graphical method identifies theoretical limits of operation for sensible gasification within a thermally balanced region, based primarily on the basic coal chemistry. The analyses of the theoretical outputs are compared to actual field trials from sites in the USA and Australia, with very favourable results. A South African coal is studied to determine the possible synthesis gas outputs achievable using various UCG techniques: controlled retractable injection point (CRIP) and linked vertical wells (LVW). For CRIP techniques, an important result suggests that pyrolysis, and subsequent char production, are important intermediate phenomena allowing for increased thermal efficiencies of UCG. The conclusion is that South African coals need to be studied for pyrolysis-char behaviour as part of any future UCG programme. The results also suggest that UCG with CRIP would be a preferred technology choice for Bosjesspruit coal where pyrolysis dynamics are important. Lastly, the use of CO2 as oxidant in the gasification process is shown to produce syngas with significant higher heating value. Introduction and literature surveyCoal is a commonly utilized fossil fuel, providing over 40% of global electricity demand and about 90% of South Africa’s primary energy needs. However, less than 20% of the known world resources are suitable for possible extraction using conventional surface and underground mining techniques (Andrianopolous,, Korre, and Durucan, 2015). Underground coal gasification (UCG) has the potential to recover the energy stored in coal in an environmentally responsible manner by exploiting seams that are deemed unmineable by traditional methods. The UCG process, if successfully developed, can increase coal reserves substantially. For example, in the Limpopo region of South Africa alone, the estimated potential for UCG gas, based on existing geological records, is over 400 trillion cubic feet (TCF) natural gas equivalent – this is about a hundred times more gas than the existing 4-TCF Pande-Temane natural gas field reserve in Mozambique (de Pontes, Mocumbi, and Sangweni, 2014)."

Oct 1, 2018

By L. Muñoz, L. Steffen, W. Vilas

The emission of particulate material is one of the several parameters related to environmental control in mining operations near communities. Blasting is an event that generates and leaves a large amount of dust in suspension, which can cause discomfort to communities, generating complaints that can compromise the operational continuity of the mine. The proper management of these environmental impacts is a key factor to ensure a good relationship with the neighborhoods, making a responsible mining in harmony with the environment, giving sustainability to the mining business in the medium and long term. The main goal of this work is to present different techniques and technologies applied in a large-scale open pit mine in Brazil, with operations close to a community, to minimize the emissions of particulate material into the atmosphere. For this, different technical solutions were implemented. First, a non-conventional blasting technique was introduced that incorporates special charging and timing configurations, generating a first upper layer that serves as a blanket to contain a second, higher-energy lower layer. An optimal stemming was also defined in order to minimize ejections and maximize cratering, using the scaled depth of burial theory as well as video and fragmentation analysis. In addition, changes were made in the timing between decks (to guarantee a minimum time between layers) and between holes (changing the initiation point opposite to the free face). Finally, additional measures such as humidification of the bench, use of a wind vane to identify wind direction and the construction of a physical barrier between the mine and the community were implemented as additional mitigation measures. By applying the above techniques together, in some specific zones of the mine, it was possible to considerably reduce the ejections generated by blasting versus conventional blasting without the above measures, which was demonstrated in the field with dual blasts trials. Additionally, it was possible to achieve a vibration reduction in the community of ~30%. This work demonstrates how, by applying these technical solutions, it was possible to minimize the dust and vibrations generated by blasting allowing this operation to do sustainable mining

Jan 1, 2024

By Chas. F. Jackson

The mining literature is replete with descriptions of methods and costs of operation at producing mines. To day the mine manager can find published information bearing upon almost any problem with which he may be faced. From this literature he can familiarize himself with methods employed by otter operators for coping with problems similar to his own, under more or less parallel conditions. Transaction of mining societies, publications of the U. S. Bureau of Mines, technical journals, and handbooks all afford valuable information dealing with operating methods and costs, Very little has been published, however, regarding methods and costs of equipping and developing new properties and bringing them to tae productive stage. There may be some question in the minds of many as to the value of papers on this subject, due to the great variety of conditions encountered. No two prospects are alike. Obviously, it is impossible to forecast what expenditure will be required to develop a mine from a raw prospect or even to predict whether the prospect can be developed into a productive mine.

Jan 1, 1933

By H. H. Einstein

This paper reviews how uncertainty has been dealt with over the past 40 years using the decision making cycle as a frame of reference. The review of the phases of this cycle, as applied to rockmechanics and rock engineering, namely characterization, performance analysis, updating and decision making shows that in each, progress has been made over the past 40 years, although most of the basic concepts existed already in the 1960’s. Characterization is the area in which the greatest scientific steps were taken, this phase and performance analysis also gained from the tremendously expanded computational capabilities which allow one to use both more complex and more practically oriented models. The greatest practical advance is without using any doubt in risk based decision making although its acceptance shows interesting differences between different professions. Dans l’article suivant on utilise le cycle de décision pour illustrer le développement du traitement des incertitudes en mécanique des roches et en construction en roche dans les quarante années passées. La revue des phases du cycle de décision montre qu’on a fait du progrès dans chaque phase du cycle de décision, c’est à dire dans la caractérisation, dans l’analyse et la prédiction du comportement, dans l’actualisation et dans l’acte de décision, même si les concepts fondamentaux existaient déjà dans les années 1960. Les plus grands avancements scientifiques se trouvent dans le domaine de la caractérisation tandis que l’analyse prédictive profitait du développement de l’informatique qui a mené à des modèles plus complexes mais aussi plus pratiques. Le plus grand progrès est sans doute dans le domaine de l’acte de décision sur la base des risques. Ce procédé est devenu assez commun même s’il y a encore des différences d’acceptation entre différentes professions. Im vorliegenden Artikel wird der Entscheidungszyklus gebraucht, um darzustellen wie sich derUmgang mit Unsicherheiten im Felsbau während der letzen 40 Jahre entwickelt hat. DerÜberblick über die Phasen des Entscheidungsprozesses zeigt, dass bei der Anwendung in derFelsmechanik und im Felsbau, in allen Phasen d.h. bei der Charakterisierung, bei der analytischenVorhersage, beim Aktualisieren und bei der Entscheidungsfindung Fortschritte gemacht wurden,obwohl die grundlegenden Konzepte bereits in den 1960er Jahren existierten. Im Gebiet derCharakterisierung gab es wohl die grössten wissenschaftlichen Entwicklungen, während dieanalytische Vorhersage vor allem von den Fortschritten der Informatik profitierte, welchekomplexere wie auch praktischere Modelle möglich machte. Der grösste Fortschritt ist ganz sicherin der Entscheidungsfindung zu beobachten, wo Risikobetrachtungen gang und gäbe sind, obwohlhier noch einige Unterschiede zwischen verschiedenen Berufsgattungen zu finden sind.

Jan 1, 2003

By Timothy Nelson, Simon Burnworth

"The University of California’s new Berkeley Art Museum and Pacific Film Archive will showcase a collection of art and film in a facility that pairs an existing 1930s-era printing press facility with a new, architecturally unique auditorium wing. The centerpiece of this adaptive-reuse project is the existing 3- story art-deco Administrative Building, which will be integrated into the new museum and provide approximately 18,000 square feet of usable space. Degenkolb Engineers, as the shoring engineer of record, along with Condon Johnson & Associates Inc., the shoring contractor, worked together with general contractor Plant Construction Company to design and build a temporary structure to facilitate the complex retrofit, renovation, and expansion of the Admin Building. This paper will discuss the challenges faced by the design and construction team, the sustainable solutions implemented on the project, and the collaboration between teams to meet the unique constraints of the project and the site.INTRODUCTION AND PROJECT BACKGROUNDThe Berkeley Art Museum and Pacific Film Archive (BAMPFA), which currently resides in a 1970s-era post-modern concrete structure just south of the University of California Berkeley (UCB) campus, was in need of a new home after an engineering evaluation revealed that the building possessed seismic deficiencies. Pressed for space, the University looked within its portfolio of properties and identified the site of the former University Printing Press facility as the place to build BAMPFA’s new home."

Jan 1, 2017

By J. Rogers. K. L. Sutherland, E. E. Wark, I. W. Wark

Soaps have hem used as collectors for many years, but only in the last eight years have other long-chain paraffin salts been used. It may be anticipated that these newer collectors will be used mainly with nonsulphide minerals, for which the xan-thates and similar compounds are of little value. On the other hand, the xanthates are both cheap and effective for sulphide ores and seem likely to retain their present cminence in this field. During 1938 and 1939 two of us (E. E. W. and I. W. W.) commenced a comprehensive investigation of the principles underlying the use of paraffin chain salts as flotation reagents. This research was sponsored jointly by the University of Melbourne and a group of Australian mining companies. † A broad, semiquantitative survey was then made of the field covered in the present paper. This was followed in 1940 by further work by one of us (K. L. S.). In 1941 the investigation was taken over by the Division of Industrial Chemistry of the Commonwealth Council for Scientific and Industrial Research, Australia. Discovery of some principles upon which are based the flotation of minerals by paraffin chain salts was followed by their application in the development of processes for the recovery of certain strategic minerals from their ores. Promising results in the flotation of cassiterite from various ores will be described in a subsequent paper. The Paraffin Chain Salts 'he basic requirements for a "collector " in flotation are that it should form a film over the surface of the mineral to be floated, and that this film should be orientated so that hydrocarbon (nonpolar) groups form the effective surface. When modified in this way, the mineral surface possesses some degree of air avidity. All investigators would agree with Taggart, Taylor and Ince23 that such a film can be produced only if the collector compound contains an active (polar) group to attract it to the mineral surface as well as the nonpolar group. One section of this large class of polar-nonpolar compounds is the paraffin chain salts: CH3(CH2)nX where .X signifies a polar group that ionizes in aqueous solution. Though the compound can ionize, it may be a weak or a strong electrolyte, and the hydrocarbon chain may be in the cation or the anion (Table I). Many compounds of similar constitution are available, but the usual polar groups are: -Co2Na, -So3Na, -So4Na, — PO4Na2, or an aminonitrogen group, the

Jan 1, 1947

By E. E. Wark, I. W. Wark, J. Rogers. K. L. Sutherland

Soaps have hem used as collectors for many years, but only in the last eight years have other long-chain paraffin salts been used. It may be anticipated that these newer collectors will be used mainly with nonsulphide minerals, for which the xan-thates and similar compounds are of little value. On the other hand, the xanthates are both cheap and effective for sulphide ores and seem likely to retain their present cminence in this field. During 1938 and 1939 two of us (E. E. W. and I. W. W.) commenced a comprehensive investigation of the principles underlying the use of paraffin chain salts as flotation reagents. This research was sponsored jointly by the University of Melbourne and a group of Australian mining companies. † A broad, semiquantitative survey was then made of the field covered in the present paper. This was followed in 1940 by further work by one of us (K. L. S.). In 1941 the investigation was taken over by the Division of Industrial Chemistry of the Commonwealth Council for Scientific and Industrial Research, Australia. Discovery of some principles upon which are based the flotation of minerals by paraffin chain salts was followed by their application in the development of processes for the recovery of certain strategic minerals from their ores. Promising results in the flotation of cassiterite from various ores will be described in a subsequent paper. The Paraffin Chain Salts 'he basic requirements for a "collector " in flotation are that it should form a film over the surface of the mineral to be floated, and that this film should be orientated so that hydrocarbon (nonpolar) groups form the effective surface. When modified in this way, the mineral surface possesses some degree of air avidity. All investigators would agree with Taggart, Taylor and Ince23 that such a film can be produced only if the collector compound contains an active (polar) group to attract it to the mineral surface as well as the nonpolar group. One section of this large class of polar-nonpolar compounds is the paraffin chain salts: CH3(CH2)nX where .X signifies a polar group that ionizes in aqueous solution. Though the compound can ionize, it may be a weak or a strong electrolyte, and the hydrocarbon chain may be in the cation or the anion (Table I). Many compounds of similar constitution are available, but the usual polar groups are: -Co2Na, -So3Na, -So4Na, — PO4Na2, or an aminonitrogen group, the

Jan 1, 1947

By D Linn Coursen

Detonation propagates in the subject blasting agent at about 2.7 km/sec when it is heavily primed but explosion propagates in it at only about 0.43 km/sec when it is lightly primed. When propagating at 0.43 km/sec, it produces a borehole pressure that is slightly less than 1 kb, but no yellow fumes or other sign of incomplete reaction. It is a pumped AN/emulsion blend to which additional water is added by circumferential injection at the inlet of the hose through which it is pumped.

Jan 1, 1994

By H. Antrekowitsch

The decreasing quality of the input materials in copper recycling leads to a higher content of impurities in the anode copper. An improvement of the pyrometallurgical refining process is therefore necessary to produce high quality anodes for the copper refining electrolysis. The behaviour of the most important accompanying elements (e.g. nickel, tin, lead, zinc etc.) at different reaction conditions has to be investigated in order to improve the metal/slag reactions as well as the vaporisation by selective oxidation in the anode furnace. Therefore the thermodynamic conditions like reaction order and the activity coefficients at the copper refining process have to be known for the optimisation of this technique. Additionally the interaction between different elements has been investigated as a function of the temperature, the content of the elements and the slag composition especially for nickel. These investigations were done at the Christian Doppler Laboratory for Secondary Metallurgy of Nonferrous Metals.

Jan 1, 2005

By Peter A. Rona

The recent discovery of the first black smoker-type hydrothermal venting and massive sulfide mineral deposits at a site in the rift valley of the slow-spreading Mid-Atlantic Ridge near latitude 26°N, longitude 45°W (Rona et al., 1986, Nature, 321: 33-37), demonstrates that a complete series of hydrothermal mineral deposit types exists at slow-spreading oceanic ridges (half-rate = 2 cm/y), similar to the series previously known at faster-spreading oceanic ridges (half-rate > 2 cm/y). The largest hydrothermal mineral deposit known at a seafloor spreading center is a stratiform massive sulfide body with bulk dry weight of about 100 x 106 metric tons in the Atlantis II Deep at the slow-spreading axis of the Red Sea. This observation invalidates the concept that size of a hydrothermal deposit is directly proportional to rate of seafloor spreading. Instead, the occurrence, grade and size of a hydrothermal deposit formed at a seafloor spreading center is controlled by anomalous chemical and physical conditions which may occur at extremely localized sites at the full range of spreading rates. The basic hydrothermal process involving subseafloor hydrothermal convection driven by magmatic heat sources appears to be similar at slow- and faster-spreading centers. However, differences exist in the periodicity of magmatic cycles that energize hydrothermal circulation (104 y at slow-spreading centers; 103 y at faster-spreading centers); in the distribution of hydrothermal sites along a spreading axis (estimated 100 km along slow-spreading centers; 10 km along faster-spreading centers); and in residence time

Jan 1, 1986

By J. P. Allen

Cobalt, nickel, and manganese can be recovered quickly, cleanly, and selectively from cobalt-rich manganese crust by leaching in dilute acid solutions in the presence of hydrogen peroxide. Common selective precipitation methods can then be used to recover these metals from the leach liquor. The leaching reaction produces only oxygen as a byproduct, and the waste residue from leaching was tested and found to be non-hazardous under existing EPA specifications. The leaching process is effective in either fresh water or seawater. This research is a part of the Bureau of Mines program to identify the mineral resources of the Exclusive Economic Zone and devise methods for recovering their valuable components.

Jan 1, 1990

By Robert Hopler

Although electrical instruments were being widely introduced into the study of seismic tremors, attempts to understand and quantify shocks from blasting continued to use rather primitive methods well into the 19th century.

Jan 1, 2007

By T. A. Rickard

The key-note of good writing, as of good manners, is B natural. Sincerity is the first requisite for effective writing. When a man says what he knows or believes, he is likely to be interesting, because each human being possesses an individuality, a point of view, or a range of sympathy that makes him different from his fellows. To say or to write what you do no6 think, for the mere sake of talking or writing, is a verbal exercise that must be performed with extraordinary skill if it is to be attractive. Affectations are rarely attractive, rarely effective. To be natural is to be yourself, not a poseur; to give the reader the best of yourself, instead of re-warming the baked meats of yesterday. Quotations-which are second-hand thoughts-will serve occasionally when the thing you want to say has been said so well by another that it would be waste of energy to try to say it better; but, as a rule, the utterance of the writer himself is more interesting than the quotation, because the writer brings something of himself to bear on the subject, and for the moment is more in touch with the reader than any dear departed author. Therefore, say things as best you can in your own way, neither in borrowed words nor in the phraseology that mimics another. Write as if you were speaking to a person whom you desire to persuade or convince. You will then write better than you speak, because, in the first place, you can be more deliberate, and, secondly, you can revise what you have written. Speaking and writing are similar mental acts, with a difference: the difference between eating food raw and eating it cooked. Some kinds of food gain nothing by being cooked; likewise some kinds of utterance are not bettered by being written down first; but most expressions of thought, especially

Jan 1, 1931

By L. T. Stanley

A method is described whereby the behavior of the front is approximated when gas is injected into a thick reservoir having reasonably homogeneous properties. The method is applied to the Abqaiq field of Saudi Arabia. The producing member is the Arab-D, a high-permeability calcarenite which has no continuous betlding planes. Field performance indicates the injected gas to be partially miscible with the reservoir oil because gas volume factors experienced are lower than those predicted by the gas law. Eqlrilibril~m calculations confirnz ihis and also show that the volume factor may vary appreciably, depending on the relative quantities of oil and gas in contact in the reservoir; consequently, volutnetric balances are made for the purpose of determining the behavior of the gas volume factor during injection history. The effect of gravity segregation on position and shape of the gas front is approximated by dividing the producing section into three zones vertically and tracing the movement of the average interface in each zone, with counterflow of oil and gas taking place betweell zones behind the front. This results in a gas front that advances more rapidly along the top of [he formation than along the base, producing an "umbrella" effect in cross section that becomes more pronounced as the front progresses. The calculations cover the gas-injection period of Abqaiq field history through 1958, and the position of the gas front is plotted at one-year intervals. Finally, some comparisotls between the calcrlated fronial position and the gas-oil contact as Measured by neutron logs are made. INTRODUCTION Fig. 1 is a structure contour map of the Abqaiq field. For analytical purpcses, the field has been divided into two areas designated A and B, as shown on the map. Gas injection into Area A was begun in early 1954 into two wells located near the crest of the structure on the north-south axis of the anticline. During the period covered by this paper, the average injection rate has been 122 MMscf/D with a maximum sustained rate of 160 MMscf/D. The reservoir pressure has been maintained at 2,450 psig since start of gas injection. The reservoir originally was undersaturated but, prior to pressure maintenance, the pressure was drawn below the bubble point in most of the Area A section, creating an in-place free-gas saturation of 8 per cent at the crest of the structure. The average critical gas saturation is 13 per cent established by laboratcry core tests. That the entire reservoir remained below critical gas saturation prior to gas injection is borne out by the fact that none of the crestal wells have exhibited high gas-oil ratios during production history. The Area A reservoir is a carbonate section about 200-ft thick having average porosity and permeability of the order of 22 per cent and 500 md, respectively. The productive horizon is the Arab-D member of Jurassic age and is encountered at an average depth of

By G. R. Lane

A large opencast gold mining company in Africa had just completed a feasibility study for the expansion of the operations. A traditional net present value project valuation methodology had been used that showed a very positive net present value (NPV). The project team had conducted a qualitative risk assessment that identified and logged all potential project risks and had subjectively incorporated ?risk? via the discount rate and other assumption contingencies around gold price expectations, operating parameters etc. Management requested that an independent quantitative risk modelling approach be adopted to obtain a better understanding of the impact of risk on the overall project valuation and confidence level in the final valuation. A detailed project valuation model was configured in the Carbon Modelling Technology and the stochastic modelling module used to perform the Monte Carlo simulations. Analysis of historical operational performance data relating to actual achievements versus planned and budget determined the historical variability of the underlying parameters as well as variance to budget. This was done at a detailed level for mining rates and costs, processing rate, costs and recovery, and other operational efficiency measures. External market assumptions relating to gold price, exchange rate, and inflation were modelled and the dependency between them modelled using a copula. This case study will demonstrate the approach taken to building and populating the quantitative risk model and the overall results of the Monte Carlo simulation. The final valuation demonstrated that the project had a 44 percent probability of an NPV less than zero i.e. 44 percent chance of project finance loss.

Jan 1, 2012