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By Y. Maeda

Kosaka Smelter is a copper smelter located at the nothern part of Japan? and has been treating. complex sulfide concentrates using flash smelting technology for a long time. The flash smelting technology has an advantage in the point of controllability of matte grade and heat balance in the reaction shaft. But the disadvantage of this process, is that the dust generation ratio is high compared with other smelting process such as injection smelting technology. This reason why is that the flash smelting process is the oxidation process for the fine sulfide concentrates applying flash reaction in the oxygen enriched stream In addition of this disadvantage, the sulfide concentrates contains much volatile impurities is resulted the dust; eneration ratio more. This paper outlines the recent improvement of the flash reaction in the furnace and the behavior of impurities in Kosaka Smelter.

Jan 1, 1998

By McKenzie C, Michaux S

Modern quarrying operations focus attention on blasting operations as a critical component in the overall cost-effectiveness of quarrying. Generally, optimisation of blasting has been linked to the processes of drilling, explosive consumption, secondary breakage, and product haulage to the primary crusher. This approach gives no consideration to the impact of primary crusher feed size distribution on downstream processes, or on the quality (ie shape and strength) of the final product. Blasting operations can be manipulated to produce a wide range of muckpile size distribution. This paper presents the results of studies into the impact of muckpile fragmentation on downstream crushing and screening operations, and includes measurements of primary blast oversize and muckpile fragmentation, together with measurements of size distribution, circulating loads and flakiness for various process streams throughout a quarry processing plant. This paper is an extension of other studies investigating the prediction and control of fragmentation from blasting, and the role of explosive performance in controlling muckpile fragmentation.

Jan 1, 1995

By Roy Norcross

For the past few years Caro's acid has been used for the treatment of cyanide containing slurry effluents, providing a feasible alter­ naive to other slurry treatment processes including !NCO SO2 / Arr and ferrous sulfate. Presently, mines using Caro's acid gen­erate their own Caro's acid onsite making a relatively low quali­ty product. It was at this point where we, at Degussa Corporation, decided to focus our efforts on engineering a Caro's acid genera­tor capable of cost effectively producing a high quality Caro's acid solution, thus reducing operating costs significantly. Caro's acid or peroxymonosulfuric acid is not a new chem­ical nor is it new to Degussa. The product was named after Heinrich Caro (1834-1910), a German chemist who first described its synthesis and its oxidizing properties in 1898. Degussa has been producing the potassium salt of Caro's acid as the triple salt, 2KHSO5 - 2KHSO4 - K2SO4, called Caroat®, for over 30 years. Caroat® is used for household and denture cleansers, as a bleaching agent in dish washing detergents, in printed circuit board etching and for cyanide destruction in the plating industry. From our experience in producing Caroat® Degussa developed its new Caro's acid based DegOX™ technology for the treat­ment of cyanide containing effluents from gold and silver mines.

Jan 1, 1996

By Enrique Fernandez

M-30, Madrid’s inner ring, covers 42 sq km of the city centre where one million people reside. It was constructed in several phases during the sixties and the eighties. The design criteria applied to those phases were different and were not always homogeneous with urban roads with lighting regulation as well as speedways. These areas had a heavy concentration of access and exits and there had been made many changes on the number of traffic lanes which has caused heavy traffic congestions and high accident rates. The environmental impact and noise pollution in residential areas are also consequences of M-30. The Madrid Major took a decision at the beginning of the present legislation, based on socio economic and environmental evaluation; rebuild the M-30 with the following sustainable mobility principles: Underground transfer of a considerable portion of the main ring and some of its links replacing some parts of the surface with new green areas in order to reduce the environmental impact. Increase the traffic capacity, improving the traffic continuity and fluidity and eliminating the lighting regulation areas, which is one of the main congestion problems currently. Increase the traffic safety with clear signalling information panels and avoiding difficult maneuvering. Redesign the links with the high capacity radial highways and other connecting lanes of the city. The project is worth 3.7 billion Euros. In 2007, when the construction is completed, it is expected will save 14 million of journey hours that represent 4.5 million Euros saved in fuel consumption per annum, There will be a very significant reduction of 35,000 tons of CO2 in terms of pollution and 400 less car accidents. Those values will increase even more in the following years. The areas beside Manzanares River, running parallel to the M-30 on the western side of Madrid, will be highly enhanced. Better water quality and the recovering of the green areas existing in old times will also return for the citizen’s enjoyment. TUNNEL CROSS SECTION OF CALLE 30 SOUTH BY PASS One of the major challenges of the new Calle 30 is actually not only the related to the main road but also to the link with the A-3, with highway to Valencia. This link is currently the most congested area and has one of the highest traffic densities of Spanish roads, with more than 250,000 vehicles/day. The remodelling of this area is the principle objective of the South by-pass. The tunnel is the only answer for this by-pass as the road alignment will go among buildings. A twin tube design, one for each direction, with three lanes allowing the circulation of both, light cars and heavy trucks, is the solution that has been

Jan 1, 2007

By K. Morsi

The interest in spark plasma sintering has been growing considerable over the past few years. This has been brought about by the unique advantages of the process, which include reduced sintering temperatures and times and the production of materials with unique microstructures and properties. Despite its current reputation as an outstanding process that has solved major problems such as nano-powder consolidation, it has so far been largely limited to the manufacture of simple shapes, due to its inherent geometric configuration. In this paper we present preliminary results on spark plasma "extrusion" that can allow the production of extended geometries via electric-current processing. Preliminary results on the processing and microstructure of spark plasma extruded aluminum are discussed.

Jan 1, 2009

By James V. Kelly

During the spring and summer of 1947, the Bureau of Mines conducted an investigation and core-drilling program in the vicinity of the Rodham mine, approximately 4 miles north of Shullsburg, Wis. This work was undertaken as a part of a general study of the zinc and lead-producing area of southwestern Wisconsin. Work in the Rodham-mine area was done to investigate further a mineralized area frilled in part by the Puritan Exploration Co., a Delaware corporation, with offices in Galena, Ill. Some significant lead-bearing samples were obtained, but no continuous ore body was disclosed as a result of the Bureau of Mines work.

Jan 1, 1949

By T. T. Read, F. C. Houghten

"The bad effects upon the health and output of miners that result when the ventilating current in a mine lacks sufficient cooling power have been described by Harrington and Sayers in a previous report (1)*** The normal temperature of the human body is about 98.5°F. and whenever work is done by the muscles, indeed even when sitting still, the normal bodily processes generate heat which must be given off, otherwise the body will become overheated and a number of bad effects will be produced. If it were possible to so enclose a man that he could continue to breathe and no heat could escape from his body he would die within a short time. In a series of experiments made at the Pittsburgh Station of the Bureau of McConnell and Houghton (2) found that a dry-bulb and a wet-bulb temperature of 112.5°F could he borne for only 35 minutes, even when the subject was at rest. A wet-bulb temperature of 100.4°F (dry-bulb 157°F) could only be tolerated for 45°F minute. Under such conditions the bodily temperature rises as much as 45°F above normal and the pulse is accelerated. Very uncomfortable sensations are felt when the pulse rate exceeds 135. The human body, like any other internal combustion engine, must be cooled in order to function properly.Under ordinary circumstances the air surroundings people is enough coder than themselves to permit this heat generated within the boiy to be river off with¬out difficulty. At higher temperatures, or when the rate of work, with its corresponding generation of heat is high, the body can not throw off heat fast enough, so it begins to sweat and the evaporation of the sweat cools the body. But the results of the experiments cited above indicate that in still air, even with the body at rent, it can not adjust its temperature when the air is above 90° wet- bulb. J. S. Haldane (4) says ""at a wet-bulb temperature of 60°F the actual amount of work done by the miner begins to fall off; as the wet bulb temperature rinse farther the work Bona gradually diminishes to the vanishing point. Then the temperatures indicated by the wet-bulb exceeds 85°F hard work in a mine seems hardly or the commercial working of a mine the wet-bulb thermometer should not in generaI, be allowed to rise above 80°F, unless perhaps where there it a good current."

Dec 1, 1923

By Neil D. Donnell, O&apos

Ore reserve estimation at the Syncrude Canada Ltd. open-pit oil sands mine in Northern Alberta has evolved since the project's inception. Early techniques followed a conventional petroleum reservoir analysis format, with relatively widely-spaced drill holes and semiquantitative grade data. Experience has developed a more standard mining approach, including classification of geological materials by both lithology and sedimentary origin, timely and multi-purpose drill holes, precise analytical data, empirical recovery factors, a computerized geological data base, and an ore body block model. Future efforts will involve enhancement of existing techniques, use of geostatistical algorithms, quantification of confidence limits, and improved control of the ore model by geological parameters.

Jan 1, 1985

By J. Finch, R. McIvor

This paper presents the development of a new grinding circuit steady-state modeling system. It is fundamentally based on the “functional performance equation”, which has now been used to improve the performance of numerous grinding circuits. This equation characterizes the two distinct efficiencies that are at work in a ball milling circuit, and how these relate to overall circuit productivity. It does so based on the particle size chosen to distinguish between coarse and fine (product size) material. Now, by applying it to all the material size classes, a simple yet reliable ball mill model was created. Combined with cyclone recoveries, the complete, detailed grinding circuit performance can be exactly reproduced mathematically by the computer program. It can then be used with separate process equipment application engineering methods to systematically engineer grinding circuit improvements. The development, features, uses and limitations of the system are described.

Jan 1, 2007

By Thomas W. Turk

The water treatment industry has historically been involved with reducing or inhibiting the inherant scale forming or fouling tendencies of natural waters associated with large industrial cooling water systems. Fouling is an extremely complex phenomenon. From a fundamental point of view, it may be characterized as a combined momentum, heat, and mass transfer problem. Chemical reaction kinetics is involved, as well as the solubility characteristics of salts in water and corrosion technology. It is a routine practice to over size pumps, piping and heat exchangers to compensate for fouling.

Jan 1, 1983

By Brian W. Stump, David P. Anderson, John Wiegand

Mining explosions are designed for a variety of purposes including the fragmentation and movement of materials. The blast design is dependent on the particular application intended and the material properties of the rock. The range of mining applications from hard rock quarrying to coal exposure to mineral recovery leads to a great variety of blasting practices.

Jan 1, 1997

MORE than 5000 miners and suppliers descended upon Denver to make the American Mining Congress' four-day metal mining show one of the most extravagant equipment displays ever assembled in one place at one time. The most recent developments in equipment for mining, milling, and processing ore were shown by the 146 exhibitors at Denver's new City Auditorium which covers 57,000 sq ft of floor space. Other displays were placed in the open air opposite the auditorium site. Registration desks were opened Sunday, Sept. 21. A field trip to the Colorado School of Mines at Golden was the featured activity of the day. Official opening of the show took place on Monday, and presided over by Howard I. Young, president of American Zinc, Lead & Smelting Co.; Otto Herres, vice president, Combined Metals Reduction Co.; William J. Coulter, vice president, Climax Molybdenum Co.; Charles B. Stainback, Westinghouse Electric Corp.; and Merrill E. Shoup, president, Golden Cycle Corp. Convention welcoming addresses were delivered by a representative of Mayor James Q. Newton, of Denver, and Gov. Daniel V. Thorton of Colorado. Following the formal opening ceremonies a round table discussion dealt with the "Paley Commission Report" formally called Resources for Freedom. Participating in the panel were: Arthur H. Bunker and George R. Brown, members of the Paley commission; H. I. Young, president of the American Mining Congress; Horace M. Albright, president of U. S. Potash Co.; Evan Just, vice president, Cyprus Mines Corp.; Donald H. McLaughlin, president, Homestake Mining Co.; E. H. Snyder, president Combined Metals Reduction Co.; Simon D. Strauss, vice president, American Smelting & Refining Co.; Sen. H. C. Dworshak (R.-Idaho) ; Ira B. Joralemon, consulting engineer; Jess Larson, De fense Materials Procurement Agency; and Andrew Fletcher, president of St. Joseph Lead Co. The panel discussed the report for six hours, adding a great deal of information to the already voluminous amount which has been gathered concerning it. Three objections to the report frequently mentioned were: 1-the multilateral contract; 2-international buffer stocks; 3-international buffer stocks combined with limited quota arrangements. Points on which the panel commended the report were its recommendations for acceleration of topographic and geologic mapping of the United States and Alaska; recognition of the principle of percentage depletion for metals and minerals; and advocation of removal of the present limitations on the expensing of exploration costs applicable to minerals. Technical sessions were held throughout the four days of the meeting. Included in the program were: Progress in Mechanication; Small Mines; Public Lands; Open Pit Mining; Manpower-Labor Relations; Shaft Sinking; Roof Support; Taxation, Gold, Silver and Monetary Policy; Advances in Mill Practices; Special Conference on Strategic Materials; Uranium Mining-Atomic Energy; Prospecting and Exploration; New Metallurgical Processes; and Rock Breaking. About 45 papers and several panels were presented during technical sessions. Formal and informal social functions consumed the remaining time of the convention. Three locations were needed to handle the huge throng attending the Mining Jamboree Monday evening. The only other sponsored social function took place Thursday evening. A great many informal gatherings, chiefly convivial, were held in manufacturers' courtesy rooms-called wet stopes. Field trips included Cripple Creek, Pueblo, Climax -Leadville-Gilman, Colorado Plateau-Grand

Jan 1, 1952

By Houston Kempton, Tim Dyhr, Andy Davis, Mark Bloom, Connie Travers, Dave Atkins, Jeff Deen

INTRODUCTION Historical mining activities in the Robinson Mining District, in the Egan Range of east-central Nevada (White Pine County), resulted in five open pits (Veteran, Tripp, Liberty, Ruth, and Kimbley Pits), several large mine-waste dumps, and numerous underground workings developed for copper, zinc, gold, lead-silver, and manganese (Figure 1). Groundwater percolating downward through the copper sulfide ores produced a blanket-like supergene zone enriched in copper, which has been one of the primary objectives of mining since the early part of this century. To obtain permits for future operation, an EIS was conducted that evaluated future pit- lake chemistry, groundwater quantity and quality issues, transport of water and solutes subjacent to a proposed tailings impoundment, and the potential for waste dump acidification. AREA HYDROGEOLOGY The mine area is on a ridgeline draining to the Steptoe Valley to the east and to the White River Valley to the West. Precipitation in the Robinson Mining District ranges from a low of 15 cm (6 in.) per year in the valley to more than 50 cm (20 in.) per year in the surrounding mountains. Evapotranspiration exceeds precipitation, leading to a net loss of water from the basin as either surface flow or underflow to the north at Currie, Nevada (Eakin et al. 1967). The White River Valley, which lies to the south and west of the mine area, includes approximately 4,200 km2 (1,620 mi2) of the upper part of the Colorado River Basin. This valley is 112 km (70 mi) long, 32-48 km (20-30 mi) wide, and like Steptoe Valley, evaporation and transpiration exceed precipitation (Maxey and Eakin 1949). The local groundwater flow system in the Robinson Mining District and the proposed mine area is dominated by two main components: (1) a groundwater mound or high between the Ruth Pit and Murry Springs, and (2) a shallow groundwater flow divide that follows the ridge crest south of Ruth, which contains the Veteran and Tripp pits. Besides the alluvium, the main hydrostratigraphic units controlling groundwater flow are limestones, shales, and sandstones, along with the intrusive quartz monzonite stocks. Based on the piezometric surface measured in October 1993, three distinct groundwater regions were identified. In the Giroux Wash area, an apparent fault runs between WCC-G1 and WCC-

Jan 1, 1995

By J. W. Freeman, E. E. Reynolds, A. E. White

Fram a study of 63 systematic alloy modifications it was found that molybdenum, tungsten, and columbium, added individually or simultaneously, and increases in chromium cause major improvements in 1200°F rupture strengths of Cr-Ni-Co-Fe base alloys. Rupture strengths were a function of the effect of composition modifications on both the inherent creep resistance and the amount of deformation the alloy would tolerate before fracture. THIS paper describes the results of an investigation of a series of alloys with systematic variations of the chemical composition of the following basic alloy: C, 0.15: Mn, 1.7; Si, 0.5; Cr, 20.0; NI, 20.0: Co, 20.0: Mo, 3.0; W, 2.0; Cb, 1.0; N, 0.12; Fe, 32.0 pct. The 62 modifications of this alloy were produced under conditions which minimized all factors influencing properties at high temperatures except composition. Melting, fabrication, and heat treatment were carefully maintained constant. Stress-rupture properties at 1200°F were used as the primary criteria of evaluation of the alloy. The objective of the study was to obtain data for determining the fundamental role of the influence of alloying elements on properties of heat-resistant alloys at high temperatures. In addition the results should be useful in determining optimum chemical compositions, the sensitivity of properties to variations in composition, and the degree to which alloy content could be reduced while retaining worthwhile properties. It is difficult or impossible to develop correlations between properties at high temperatures and systematic variations in chemical composition from published data for wrought heat-resistant alloys developed for gas turbines.' ' The main reason for this is the extreme dependence of the properties on conditions of treatment of the alloys." In most cases variation in final treatments between alloys so influences the properties that the influence of chemical composition is obscured. In addition it is recognized Table I. Basic Alloy and Some Modifications Used Basic AllOy, Variations in Element Pct Composition, Pct C 0.15 0.08. 0.40. 0.60 Mn 1.1 0.03,0.25.0.50,1.0,2.5 S1 0.50 1.2, 1.6 Cr 20.0 10, 30 Ni 20.0 0, 10,30 Co 20.0 0. 10, 30 MO 3.0 0. 1.2.3, 5, 7 W 2.0 0, 1, 5, 1 Cb 1.0 0.2,4,6 N 0.12 0.004, 0.08, 0.18 Fe 32.0 that variations exist between heats of the same alloy which are related to melting practice and that there is a strong possibility that conditions of hot working influence response to final treatments. The development of heat-resistant alloys has been based on the gradual accumulation of data roughly related to composition from extensive testing programs. There is every reason to believe that in most cases the optimum compositions have been achieved by this procedure in the alloys commercially available. There are, however, very little data showing the influence of systematic variations of composition free from the influence of other factors, particularly for alloys of the type investigated. Several investigators of cast alloys have demonstrated compositional effects, notably Grant,1-6 Epremian,t Guy,8 and Harder and Gow.9 Sykes10 eviewed the work on the wrought alloy Rex 78 and the systematic variations of carbon, copper, molybdenum, and cobalt leading to the development of the stronger Rex 337A alloy. From the papers by Wilson11 and Henry12 it is possible to deduce the beneficial effect of substituting cobalt for iron in 0.45 pct C-20 pct Cr-20 pct Ni-4 pct Mo-4 pct W- 4 pct Cb alloys. Wilson mentioned but did not present the extensive compositional studies involved in developing these alloys. Binder" showed optimum properties for 3, 2, and I pct, respectively, for molybdenum, tungsten, and columbium in 20 pct Cr-20 pct Ni-20 pct Co-30 pct Fe alloys for limited systematic variations of these

Jan 1, 1953

By Carl Faessler

Abstract Some Canadian geologists believe chat, in the Grenville sub-province of Eastern Canada, there is no granitic intrusion older than the anorthosite. The writers are among those who hold the contrary view. They suggest a new means to distinguish between rocks belonging to intrusions respectively older (Laurentian) or younger (Pine Hill) than the anorthosite. This new method is based on microscopical observations which demonstrate that the Pine Hill intrusives contain a large amount of exsolution perthite, whereas the Laurentian intrusives are completely devoid of exsolution perthite. Where perthite is present in Laurentian rocks, it is the result of lacer hydrothermal replacement. Introduction The present paper is the result of a systematic study of some acidic intrusive rocks in the Grenville sub-province. These rocks underlie large areas of the Canadian shield in the Province of Quebec, mostly along the southern border of the shield.

Jan 1, 1946

By I. M. Stewart

In a proposed rulemaking regulating asbestos, nonasbestos varieties of Tremolite, Anthophyllite and Actinolite would be excluded from the regulations controlling permissible exposure to asbestos fibers. This proposed rulemaking is perceived as improving the scientific basis of the regulation of asbestos because it recognizes that there are no scientific data, either mineralogical or health related, which support the regulation of nonasbestos Tremoiite, Anthophyllite and Actinolite in the same manner as asbestos fibers. However, the proposed regulation, while representing a major advance in the treatment of AT A for regulatory purposes, does not provide an adequate analytical method for distinguishing between asbestos and nonasbestos particles, nor an adequate description of the regulated minerals. This paper addresses those topics, recommending that OSHA include an appropriate mineralogical definition, and implement a discriminate counting procedure to distinguish asbestos from nonasbestos particles.

Jan 1, 1992

By J. D. Morgan

Introduction In 1986, the US economy passed the $4 trillion mark. However, the value of domestically processed materials of mineral origin fell slightly to $240 billion. The value of metals produced from US ores was unchanged at $5.6 billion, as was recycled scrap at $4 billion, while the value of industrial minerals rose slightly to $17.9 billion. Consumer demand strongly affects mining and the US economy is relatively saturated with longlived products. Moreover, in recent years there has been a steady increase in consumer, mortgage, and federal debt, inhibiting new purchases of goods. Motor vehicles and housing are major traditional markets for mineral materials. However, the 242 million US citizens already possess 170 million licensed motor vehicles and 92 million dwelling units. In 1986, domestic motor vehicle production fell 3%, to 11.3 million units, while new housing starts rose slightly to 1.8 million units. Nearly all mineral commodities move relatively freely in world trade. As detailed in Figs. 1 and 2, in the last three decades world production of major mineral materials has greatly increased. At present, substantial excess productive capacity exists not only in the US but also in many other countries. Consequently, the US mineral industry is encountering increasing competition from other sources, along with increasing competition from newer, engineered materials. For example, US production of plas¬tics has risen from 900 kt (1 million st) in 1950 to 22.7 Mt (25 million st) in 1986 - on a volume basis significantly greater than steel. Plastics, too, are mineral-based materials, some 7% of petrochemicals going to their manufacture. 1986 saw increased calls for protection. But President Reagan, in his 1987 State of the Union Message and Economic Report to the Congress, reaffirmed adherence to a policy of free and fair trade. However, he stressed the need for increased efforts to open foreign markets to US exports and to increase competitiveness of US industry US imports of mineral-based minerals in 1986 were valued at $40 billion and exports at $24 billion. Strategic minerals As detailed in Fig. 3, imports supplied a significant proportion of total US consumption of several important materials, including many classified as "strategic and critical." There were no changes in stockpile policy during the year. Congress debated the President's 1985 proposals to reduce stocks of World War II-type materials and to focus more on high technology materials needed for the cutting edge of future military material. But no final action resulted. However, Congressional concern about apartheid in South Africa did result in increasing pressure to limit imports of South African minerals. Meanwhile, the National Critical Materials Council in the Executive Office of the President intensified its efforts to be better able to advise the President. The Defense Production Act provides authority for priorities and allocations, supply expansions, voluntary agreements, and

Jan 5, 1987

By Sergey Romanenko, Tatyana Aleksandrova, Karen Arustamian

"Current status of question about grinding stage effect to electrochemistry parameters of operation preparation slurry before intermediate selective flotation was assessed in the present scientific work. Needs of more detail study chemical reactions in the slurry preparation and flotation processes were shown. The ores are polymetallic sulphide type and the one are most difficult for mineral processing. The methodology allows increase information base during floatation tests. Ionometric methods and elements of neural network have been used in the study of mineral processing questions.We have also identified the relationship between the received values of the electrochemical parameters and the technological results in selective flotation. The optimal values of the electrochemistry parameters in operation of the preparation slurry before selective flotation has been found. The main effect of using the proposed methodology is to obtain scientifically based solutions to improve the technology parameters of flotation polymetallic sulfide ores. Challenging issue of selectivity of sulphide-polymetallic ores will be considered using case study of sulphidepolymetallic ores. It was shown that several factors are formed in ore grinding: formation of hydroxyl oxides of iron compounds, copper cation leaching, metal-sulphide and metal-sulphite complexes formation. The chemistry was revealed for current processes in slurry preparation operation before selective flotation. Quantitative assessment of interrelations between electrochemical parameters of slurry and process performance was given with using electrochemical control methods. Neuron network-based model was estimated based on data array and was allowed to establish optimum electrochemical conditions of metal-sulphite complex formation to provide maximum efficiency of selective flotation.INTRODUCTIONPhysical and chemical processes that take place in ore grinding have a significant impact on flotation selectivity and can cause low selectivity of the flotation process. Today this issue is given much attention. In the paper [1] it is pointed out that sulphide oxidation products and slurry components, such as sulphide ions, metallic iron and its oxidation products, have effect on flotation performance. So, metallic iron has impact on metal-sulphite complex formation as a result of oxidation-reduction reactions as follows:"

Jan 1, 2018

By T. R. Ellis

Minerals Appraisers/Valuers often find great difficulty or failure in attempting to employ the Sales Comparison Approach to the Market Value Appraisal of development and operating stage mineral properties. An important factor generally overlooked is a comparison of net operating income (NOI) margins on a per-unit-of-production basis between mineral properties, whether these be demonstrated or forecast margins. NOI margins can vary greatly between mines or quarries that are producing similar products. Ultimately, the expected NOI margin determines what a buyer is willing to pay for an income producing property. Common criticisms of the sales comparison approach by minerals appraisers are introduced. These are counterbalanced by raising some issues in the way the inputs for the Income Approach are usually derived by minerals appraisers, and by review of some conspicuous examples of the much too common misuse or abuse of the income approach in market value minerals appraisals. Example transaction analyses and sales comparison analyses are used to demonstrate the author?s methodology for adjusting units of resource in his transaction adjustment tables (see APPENDIX). The examples are used as the basis for discussion of ways to employ adjustments for operating economics and many other factors, while cautioning about the potential for double counting. The conclusions include a recommendation that minerals appraisers attempt to apply at least two of the three valuation approaches when appraising the market or fair value of development and operating stage mineral properties, the two being the sales comparison and income approaches.

Jan 1, 2011

By John S. Hutchins, David L. Wassum

Mining engineers are ready to take a big step into a new field-oil mining. To understand the subject, one must look at the world's oil supply and demand as well as petroleum technology successes and failures. The US has an abundance of solid hydrocarbon and uranium energy resources, but 75% of its energy for industry, transportation, manufacturing, and space heating comes from liquid petroleum and natural gas. So there are increasing efforts to discover new oil reserves; today the number of drilling rigs operating in the US is at an all-time high. But with 80% of the world's wells already located in the US and Canada, good new exploration prospects are difficult to find. The cost of drilling deep new wells has also greatly increased. The US faced a similar situation in the early 1950s, when primary oil production declines began. During that time, the petroleum researcher introduced secondary recovery techniques such as water flooding and gas injection. This increased the average amount of extractable oil from discovered US reservoirs from 17% to 33%. Production soared and the world petroleum price remained stable until the end of the 1960s. Secondary recovery techniques were then supplemented by tertiary oil recovery technologies-increasing sweep efficiency with such things as CO2 injection-that are, so far, only partially successful in most petroleum fields. Even so, these technologies could raise cumulative recovery expectations to 35-38%. The "lost" oil in depleted US reservoirs equals 48 km3 (300 billion bbl) of conventional oil, or 12 times the current recoverable reserve base. At the present rate of US consumption-1 km3/a or 6 billion bbl/a-this is enough to run the US for 50 years without importing any oil. Moreover, there are 16-24 km3 (100-150 billion bbl) of as-yet unrecoverable heavy oil and tar sands in the US.

Jan 12, 1981