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By A Chandra, P Guj

Only a few complex real options can be valued using closed-form equations, such as the Black and Scholes formula, because these algorithms are restrictive and prevent the construction of practical project evaluation models. Although a binomial lattice method paired with the ærisk-neutral probabilityÆ provides an easier and flexible modelling of exploration and mining projects, it has limitations when projects are complex, long-lived and influenced by the interplay of various market and private uncertainties. In order to overcome these limitations, modern decision tree software using dynamic programming capability can be used for real option valuations. This is a powerful computational tool in which the impact of various sources of uncertainties can be differentiated, so that the optimal decision path can be explicitly displayed visually. There has been significant academic controversy surrounding whether different real option (RO) valuation methods would lead to different real option values (ROV). This paper, using a realistic copper mining example, demonstrates that as long as the same degree of subjectivity and consistency are used in different real option valuation methods, they yield the same result. This conclusion is valid irrespective of whether the cash flow volatility generated by various sources of uncertainties is handled in an aggregated or in an explicit and differentiated manner. This paper compares two choices for an investor either to æbuy now and developÆ a project or to enter into a ætwo-year option to purchaseÆ after the proponents have developed it. It also shows how significantly different net after-tax operating cash flows may be generated by these different choices on the same underlying asset represented by the project. This is due to the difference in the amount and timing of the relevant capital investments affecting the depreciation and amortisation charges and as a consequence, the income tax paid. CITATION:Guj, P and Chandra, A, 2012. Real option valuation of mineral exploration/mining projects using decision trees - Differentiating market risk from private risk, in Proceedings Project Evaluation 2012 , pp 177-188 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 24, 2012

By A. Balint

The Photometric Optical Separation process is introduced and examples of sorting machines are given. Applications of the process are outlined in general terms with reference to specific types of industrial installations. Brief description is given of the capabilities and limitations of available equipment, including cost estimates.

Jan 1, 1967

By T. Brozell

"Communities near sand mines and processing facilities in Wisconsin have raised concerns regarding possible exposure to ambient respirable (PM4) crystalline silica. Fenceline PM4 (particulate matter captured with a 50 percent cut size of 4 micrometers aerodynamic diameter) crystalline silica concentration data were compiled at Fairmount Santrol Inc., Mathy Construction Inc. and U.S. Silica facilities. The long-term average PM4 crystalline silica concentrations ranged from 0.05 to 0.45 micrograms/m3 when sample values below the limit of quantification were treated as zeros. All of the long-term average concentrations were less than 20 percent of the Minnesota Department of Health’s and California Office of Environmental Health Hazard Assessment’s PM4 crystalline silica chronic reference exposure level of 3.0 micrograms/m3. The measured concentrations were consistently within the local background concentration range.Air Control Techniques P.C. compiled the sampling data using Thermo Fisher Scientific Inc. Partisol 2000i PM2.5 samplers meeting the requirements of 40 CFR Part 50, Appendix L. These samplers were adapted to capture particulate matter with a 50 percent cut size of 4 micrometers. The use of polyvinyl chloride filters allowed for crystalline silica X-ray diffraction analysis by NIOSH Method 7500. The combined use of adjusted PM2.5 filter-based samplers with Method 7500 crystalline silica analyses provided for a highly sensitive limit of quantification of 0.31 micrograms/m3 of PM4 crystalline silica.BackgroundIn 2005, the California Office of Environmental Health Hazard Assessment (OEHHA, 2005) adopted a 70-year chronic reference exposure level (REL) for PM4 (particulate matter having aerodynamic diameter of 4 micrometers or less) crystalline silica. The REL was extrapolated from occupational hygiene epidemiological studies, essentially all of which were based on in-plant PM4 crystalline silica measurements. No well-established ambient sampling technique for PM4 crystalline silica was available at the time that OEHHA adopted its REL. The personal samplers used for the National Institute for Occupational Safety and Health (NIOSH) Method 0600 in-plant sampling of employee exposure were designed for concentrations higher than ambient levels. The limit of quantification (LOQ) of PM4 crystalline silica on NIOSH 0600 filters was too high for the effective sampling of ambient air."

Jan 1, 2015

By Robin Schott

The blast furnace process is the most important process to produce pig iron. The necessary process energy is mainly covered by coke. But the production of coke is connected with CO2-emissions and high costs. A significant measure to reduce the coke rate and with it the CO2-emissions plus costs is pulverized coal injection (PCI) through the tuyeres into the blast furnace. A further increase to substitute coke by coal can be achieved by using the Oxycoal+ technology. This article compares and shows the cost effectiveness and the decrease of CO2-emissions with the help of simplified energy balances for the only coke operation of the blast furnace, the operation using pulverized coal injection and the operation using the Oxycoal+ technology.

Aug 17, 2017

By A. C. Fieldner, G. W. Jones

Tests were made at the Government Fuel Yard , operated at Washington , D. C. by the Bureau of Mines , Department of the Interior , in order to determine and improve the adjustment of the carburetors on the trucks used for transporting coal from the Fuel Yard to the different Government buildings in Washington . The tests were made possible through the hearty cooperation of G , S. Pope , engineer in charge of the Fuel Yard . Joseph Burrows and A. E. Foote of the garage department assisted during all the tests and supplied information on the mileage obtained by the trucks for the months preceding and succeding the time the tests were made . The Mack trucks used range in capacity from 2-1/2 to 7-1/2 ttoonnss .. The majority of the carburetors were Stromberg G- 3 type , as shown in Table 2. During the winter months , when the demand for coal is heavy , from 30 to 35 trucks are used . At the time the tests were made , only about ten of the trucks were in daily use , owing to the small demand for coal during the summer months , and scarcity due to labor conditions . Samples of the exhaust gas were taken on the trucks kept in service for summer hauling in order to determine the carburetor adjustment as used . Changes were then made to a more economical adjustment wherever possible , without sacrificing flexibility of operation and power . In every case the adjustments were maintained for maximum power , but were adjusted to the leanest position to give that power . In all but one case the carburetors were found to be adjusted too rich for maximum power and economy . These results are considered in detail in a later part of this report .

Jun 1, 1923

By Michael Kukay, Paul Conrad, Cosmas Opoku-Ware

This project is exploring the potential for developing trees tolerable to degraded un-reclaimed mine site soils and tailings as a solution to re-establishing long-term tree growth on those sites. The project incorporates growing tree seedlings in an underground greenhouse grown from seeds planted in the degraded mine soils in which they will eventually be planted. The outcome of the project is expected to lead to a successful solution for re-establishing tree growth in soils and tailings containing high metal concentrations with minimal post-planting human intervention. The research is being conducted in an underground greenhouse located 100 ft below the surface in the old Orphan Boy Mine Underground Mine Education Center (UMEC) located on Montana Tech’s campus in Butte, Montana.

By James S. Wroth

The Act of Congress approved June 25, 1926 (Public Act 424, 69th Congress), authorized joint investigations by the U. S. Geological Survey and the U. S. Bureau of Mines to determine "the location, extent, and mode of occurrence of potash deposits in the United States." The particular deposits selected for exploration were the extensive rock-salt formations underlying large areas in western Texas and southeastern New Mexico, from which potash salts had been identified in the cuttings and sludges from oil wells drilled with cable tools. The evidence of these sludge samples was qualitative only and beyond definitely proving the presence of potash salts in the salt beds, gave little clue to the possible size, richness, or extent of the potash occurrences.

Jan 1, 1929

By D. L. Romero

The Line Creek Mine is operated by Crows Nest Resources Limited, a wholly owned subsidiary of Shell Canada Resources Limited. It is located approximately 25 km north of Sparwood in southeast British Columbia (refer to figure 1). The Line Creek coal deposit is part of the Upper Elk Coalfield in the East Kootenays. The coal is a medium volatile, low sulfur, bituminous coal and is used as a coking coal. Coal close to the outcrop is typically of low F.S.I. and is processed for thermal use. The present pits have a total coal reserve of 30 million clean tonnes and is a multi-bench, open-pit operation. The coal is recovered by front shovel and backhoe combination, and hauled to the plant with a fleet of 120-tonne and 40-tonne capacity trucks. Line Creek is unique in that it can simultaneously treat both metallurgical and thermal coal in separate processing facilities (refer to figure 2). Run-of-mine coal is delivered to the truck dump. The plus 50 mm material is scalped off and reduced to minus 50 mm in two rotary breakers. The raw coal is then conveyed to one of five, 5000-tonne capacity, silos. Typically one silo is used for thermal coal and four for metallurgical coal (refer to figure 3).

Jan 1, 1991

By Geoffrey D. Collins

This paper deals with the construction of the Effluent Outfall Diffusers which form part of the outfall for the Deer Island sewage project. The work was executed 15 km out to sea in Massachusetts Bay and required the drilling, installation, grouting and accurate determination of the actual position of 55 riser shafts in 33.5 m deep water. Although not strictly a "foundation", the contractor's approach to the installation of the diffusers was a logical development from many marine foundation projects executed by the Contracting companies over the last decades. The only previous application of this design of outfall had been in Australia where offshore oil drilling techniques had been adapted for use in riser installation.

Jan 1, 1994

By Edward P. Chapman

IN the Leadville district toward the close of the "intermediate mesothermal period" of mineralization, there occurred a stage of ore deposition marked by a rather complex mineral association. As bismuth minerals formed in many places during this period, it is here called the "bismuth stage" for convenience of description. The minerals so far identified with this stage, listed roughly in the order of prominence, are: chalcopyrite; several varieties of galena, differing slightly from one another in their small contents of silver, bismuth and tellurium; altaite; hessite; galenobismutite; alaskaite; aikinite; ,gold; tennantite; argentite; and perhaps sphalerite and arsenopyrite. With the exception of gold, the age relations of these minerals are difficult to determine. As shown in their descriptions, they all appear contemporaneous and hypogene. Gold may be in part contemporaneous, but most of it is distinctly later. Where minerals of this stage occur so that they can be mined alone, as at the Tucson mine, they constitute high-grade ore. Elsewhere their presence in small amounts has served to increase greatly the value of what otherwise would be low- grade pyritic or zinc-lead sulphide ore. The distribution of the bismuth ores corresponds closely to the distribution of gold ores, though not so general. It seems probable that most of the gold in the district was deposited during the "bismuth stage." These ores occur relatively near the supposed centers of mineralization in Breece and Printer Boy Hills or deep down along the Tucson-Maid fault, which is one of the well recognized channels of mineralization in the Iron Hill and Graham Park areas. Consideration of the high-grade nature of this mineralization and the fact that it appears to be found relatively close to the source of mineralization suggests that prospecting along some of the known channels, even deeper than they have yet been prospected, may offer hope of commercial success.

Jan 1, 1939

By Toru H. Okabe

As part of a systematic study on the thermodynamic properties of complex nitrides, phase equilibria of the system Li-M-N (M Mg, AI, Ga) at 900 K were investigated. An attempt to determine the thermodynamic properties of complex nitrides was made by using the galvanic cell method, which utilizes LiMgN as an electrolyte under nitrogen atmosphere. The electromotive force (Emf) of ilie cell at temperatures between 800 and 1100 K was measured. Whilc the Emf of the cell at 900 K was measured to be 0.137 V, data discrepancies of ±0.03V were found. It was difficult to determine temperature dependence of ilie Emf. The Gibbs energy change for the reaction, 113 LbN (s) + 1/3 Mg3N2 (s) = LiMgN (s), at 900 K was determined to be tJ.Gor (LiMgN) -13.2 (±2.9) kJ/mol. Using thermodynamic information on ilie binary nitride from literature, the standard Gibbs energy of LiMgN was derived to be AGO f (LiMgN)= - 121 kJ at 900 K. The thermodynamic stability range of nitride was discussed by constructing isothermal chemical potential diagrams that provide a better understanding of ilie stability region of the LiMgN phase. The diagram was found to be in good agreement with the isoiliermal phase diagram determined by ilie alloy equilibration meiliod. Although the obtained data includes large uncertainties, the results provide a better understanding of the iliermodynamic stability of nitrides. The potential application of this complex nitride to nitrogen chemical sensors or a medium for controlling nitrogen potential is also shown.

Jan 1, 2003

By A. B. Kinzel

THE demands of the petroleum and chemical industries for steels to be used in pressure vessels and similar structures at artificially low tempera-tures are continually increasing, and the writing of proper specifications with suitable tests becomes increasingly important. Likewise, the selec-tion of suitable steels for such applications is of increasing concern to the metallurgist. It is generally recognized that highly alloyed steels of the austenitic stainless type retain their properties even at very low tempera-tures and represent the best technological solution of the low-temperature steel problem. However, in many instances less expensive carbon or low-alloy steels suitable for service within limited temperature ranges are available. The problem thus becomes one of defining the various factors involved in the production and fabrication of these less expensive steels and determining the temperature ranges in which their properties justify engineering application. Most of the applications involve welded structures, and the heat effect of welding as well as the nature of the weld metal are matters of prime concern. The first problem that the metallurgist faces is the determination of the type of test to be used as a criterion of the performance of the steel in low-temperature service. It has been generally recognized that the static properties of steel as determined in the ordinary tensile test undergo a gradual and relatively slight change as the temperature of test is lowered in the range of current interest; i.e., from room temperature to minus 120° C. It is further generally recognized that the behavior of steel under impact involving notch sensitivity is definitely affected at the lower temperatures. While the major subject of this paper is the effect of grain-refining deoxidizers, of low-alloy additions and of welding on the low-temperature notched-bar impact properties, an inquiry into the general behavior of steel under low-temperature impact testing is included. This is a pertinent portion of the investigation and the results thereof are

Jan 1, 1937

By Shklyar FR, Bokovikov BA, Gordon YM, Scherbatskii VB, Yaroshenko YG, Shvydkii VS

The paper presents, for the first time, a complete mathematical model of the flow of gases in packed beds which describes the processes of gas-mechanics in iron blast furnaces and other shaft type smelting units. Good correlation between calculated and experimental results was obtained confirming the adequacy of the model. It is shown that the uniformity of gas distribution is related to the tuyere size and the extent of its protrusion into the furnace and that these variables may be used to regulate gas distribution across the furnace diameter. It is also concluded that furnace height has no significant influence on gas distribution. The necessity for a mathematical description of raceway phenomena has been experimentally proved. Conclusions from theory are shown to have profound implication to furnace design and operation.

Jan 1, 1975

By Sam H. Patterson

Fuller's earth and bentonite are two clay commodities that are interrelated either by mineral composition or use. Because of this interrelation and the sale of both for many different uses, some ambiguity in their classification has resulted. The term "fuller's earth" has no compositional or mineralogical meaning, and it is used more or less as a catchall for any clay or earthy material suitable for certain uses. Most, but not all, of these uses require absorbent properties. Bentonite by geologic definition must have formed from volcanic ash or tuff or the glassy material in volcanic rock; most bentonites consist chiefly of montmorillonite but other clay minerals may be present. In industrial usage the term "bentonite" is applied to any clay consisting chiefly of montmorillonite, irrespective of origin. Georgia and Florida have historically been the leading States in the production of fuller's earth; bentonite has been produced in Alabama on a small scale. The first major use of fuller's earth was in refining of oils. Other materials have replaced fuller's earth for this purpose to a major extent, but many new uses for fuller's earth have been found, and production has increased in recent years. The new uses include absorbent products, insecticide and pesticide carriers, drilling mud, and many others. The bentonite now produced in Alabama is of the "southern," "low selling," or "calcium" type and is used mainly as foundry-sand bond. Most of the fuller's earth mined now is in the Hawthorn Formation of Miocene age; a lesser amount is produced from the Twiggs Clay Member and other beds in the Barnwell Formation of Eocene age. Inactive pits from which fuller's-earth was produced from other formations occur at several localities. The bentonite now mined in Alabama is in beds of Cretaceous age; several years ago bentonite was produced from Eocene beds in this State.

Jan 1, 1972

By G. C. Laurence

"This paper discusses the hazards and extensive precautions taken in Canadian uranium mines, concentrating plants and processing plants. It also outlines Canadian policy regarding the control of the sale and distribution of uranium and other nuclear materials.OVER THIRTY YEARS AGO, I spoke to The Canadian Institute of Mining and Metallurgy here in Montreal about radioactivity and its dangers. I must have made quite an impression thirty odd years ago, because now you have asked me to do it again. Of course, the picture has changed. Then they were mining uranium ore, recovering the radium from it and throwing away the uranium. Now they are still mining uranium ore, but are throwing the radium out on the tailings dumps. Thirty years ago, most people did not know what ""radioactivity"" meant. Nowadays, they have beard that it is dangerous, and some of them, recently, be-came worried about the radium in the tailings dumps and what becomes of it."

Jan 1, 1969

By R. F. Merwin

Advancement in automation intensifies the need to remove tramp iron from bulk materials being processed and carried on belt conveyors. Although magnets have long been employed for this purpose, it becomes increasingly necessary that magnetic equipment of appropriate types and sizes be selected and advantageously installed -- if maximum benefits are to be derived Tramp iron present in bulk materials consists of ferrous trash, such as wire, bolts, nails, equipment parts, tools, and machine cuttings. The results, if the iron is not removed, are damaging to equipment having close clearances, explosions, or fire, En the case of flammable materials, production downtime losses, and contaminated products.

Jan 1, 1966

By T. McWaters

Miami Copper Company began a block-caving operation in 1911 using a gravity mill to separate copper minerals from the Pinal Schist host rock. The tailing was deposited by the upstream method using perimeter launders and spigot valves in six canyons adjacent to the mill until 1932. In 1928 the larger and more distant Solitude tailing pile was developed which by 1932 was receiving all tailing except for upsets. In 1925 Miami Copper converted its gravity mill to flotation which began to produce higher sulfide copper recoveries.

Jan 1, 1990

By S. L. Ducummon

Inactive underground mines now provide essential habitat for more than half of North America's 44 bat species, including some of the largest remaining populations. Thousands of abandoned mines have already been closed or are slated for safety closures, and many are destroyed during renewed mining in historic districts. The available evidence suggests that millions of bats have already been lost due to these closures. Bats are primary predators of night-flying insects that cost American farmers and foresters billions of dollars annually, therefore, threats to bat survival are cause for serious concern. Fortunately, mine closure methods exist that protect both bats and humans. Bat Conservation International (BCI) and the USDI-Bureau of Land Management founded the North American Bats and Mines Project to provide national leadership and coordination to minimize the loss of mine-roosting bats. This partnership has involved federal and state mine-land and wildlife managers and the mining industry. BCI has trained hundreds of mine-land and wildlife managers nationwide in mine assessment techniques for bats and bat-compatible closure methods, published technical information on bats and mine-land management, presented papers on bats and mines at national mining and wildlife conferences, and collaborated with numerous federal, state, and private partners to protect some of the most important mine-roosting bat populations. Our new mining industry initiative, Mining for Habitat, is designed to develop bat habitat conservation and enhancement plans for active mining operations. It includes the creation of cost-effective artificial underground bat roosts using surplus mining materials such as old mine-truck tires and culverts buried beneath waste rock.

Jan 1, 1997

By James C. Barker

In 1981 and 1985-1986, the Bureau of Mines conducted orientation studies of marine placer platinum-group metals (PGM). PGM are derived from the Goodnews Bay ultramafic complex and magnetic surveys show that the complex extends offshore at least four mi. The present seafloor was an emergent foreland as recently as 8000 years ago. High-energy ocean processes are transporting and depositing sediment such that PGM-bearing materials are reworked and later masked by barren littoral drift. Exploration targets include 1) placers formed since present transgression began, and 2) ancient marine and drowned fluvial deposits. Additionally, there is evidence of PGM solution transport and accretion. At least minor values of PGM in Recent lag-type placers and possible submarine strands are concentrated along an offshore scarp incised through glacial deposits into the preglacial surface between Flat Cape and Red Mountain. Other Recent PGM-bearing features include Flat Cape shoal, Chagvan Bay, Salmon River delta, and modern beaches. Ancient placers include possible N-S fluvial systems 2 to 3 mi offshore, a nearshore scarp 50 ft below sea level, and strands adjacent to projected ultramafic bedrock slopes. The existance of ancient placers is dependent on depth of glacial erosion. SEM studies show PGM are principally isoferroplatinum and osmiridium, with minor sperrylite, moncheite, and platiniridium. Gold is a co-product, and concentrates comprise chromite, ilmenite, and magnetite. Beneficiation tests successfully concentrated precious metals from natural blacksand accumulations, but failed to concentrate low-grade lag gravels.

Jan 1, 2011

By Christian Heinz, Doug Harding

TBMs can last for decades and be rebuilt project after project with proper maintenance. How successful can rebuilt TBMs be? At the DigIndy Tunnel System in Indianapolis, Indiana, USA, a rebuilt TBM was used to great effect. The 6.2 m diameter Main Beam, originally manufactured in 1980, bored 40+ km of tunnels and set three world records in its size class of 6 to 7 m, including a best month of 1,754 m. In this paper, the authors analyze the TBM rebuild, performance and lessons learned to make recommendations for future projects seeking to use rebuilt TBMs over long distances.

Jun 23, 2024