Search Documents

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. J. Basu

An overview of the evolution of computerized mine planning and design has been given, emphasizing the need for a knowledge-based system for planning and design of underground coal mines. An outline for the development methodology and procedure has been provided. Problem structuring guidelines have been used to incorporate intelligence and integration to the design modules. A skeletal model for a mine planning and design expert system has been prescribed, and the development process has been documented in detail. A feasibility prototype has been developed to test the structure of the skeletal model and to ensure completeness of the design process. The feasibility prototype development and its contribution toward proto typing has been addressed in this paper. At present, prototype development is underway. The prototype is expected to be avail-able for testing and implementation in early 1991.

Jan 1, 1991

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 Thomas Varley

"The literature on flotation of oxidized ores except for patents (especially for reagents) is very sparse. The Bureau of Mines in 1936, published a circular on the subject, by Ralston and Allen. The treatment of oxides by flotation was then in its infancy, but several of the most important mining companies in the Western United States and Mexico are now operating flotation plants for treating oxidized ores. The purpose of this present circular is to review the progress made and bring the subject up to date. One of the writers of the 1916 report (Mr. Allen) has been associated with some of the most important mining companies who have put into practical operation the process of flotation of oxidized ores; among these companies are the Shhttuck Arizona Copper Co., Bisbee, Arizona (now the Shattuck Denn Co.) and the San Francisco Mines of Mexico, Ltd., San Francisco Del Oro, Chihuahua, Mexico. His experience and other sources of information have been freely drawn on in pre-paring this paper. Mr. Ralston, assistant chief metallurgist of the Bureau of Mines, contributed many valuable suggestions and criticisms.Sulphidizing Reagents for Oxidize Ores.The various reagents and methods that might possibly be used for sulphidizing were summarized by Ralston and Allen as follows:""Sulphidizing (1) by the use of hydrogen sulphide on either the dry or the wet crushed ore, (2) by the use of solutions of the various sulphides and sulpho-compounds of sodium, (3) by the use of solutions of the various sulphides and sulpho-compounds of calcium, (4) by the use of sulphur vapor, (5) by the use of a sulphureted oil, (6) with colloidal sulphur."

Jun 1, 1927

By Bowler Jonathan, Lorraine Kent, Tereza Crisu, Stuart Walker, Nicholas Lightfoot

"It has been the practice in Europe to extract the most economic seams first: taking the seams sequentially, top down, to avoid operating within the fractured strata formed by the subsidence trough above previously mined coal seams. In the 1990s, the UK coal industry found itself at a number of sites having to operate over one or more previously mined seams. This led to specific geotechnical challenges with respect to maintaining economic, safe and stable rectangular roadways with rock-bolted support.Within this paper, the current challenges and mitigation strategies of overmining in the UK are described following the completion of a -three-year European Commission-funded project in 2015. The challenges and mitigation strategies are related to:• A case study with overmining of older workings of variable geometry;• Numerical modeling for overmining layout and support design; and• A case study site planning mine layout when considering future overmining.INTRODUCTIONAt the first case study site, case histories were examined for a mine operating at a depth of approximately 700 meters where five longwall panels were extracted above workings 35-40 m below. The overmining of various extraction geometries below led to challenging conditions in areas of high vertical stress concentration. It was found that results from one longwall panel could be suitably used to predict behaviour in a subsequent panel. The experience was used to update previously existing guidelines on the positioning of roadways in relation to subsidence troughs. Existing guidelines recommended that only as a last resort should longwalls be planned to retreat over narrow pillars, or from solid ground into a subsidence trough. Existing guidelines regarding the layout of overmining panels are conservative, and new work indicates that such multi-seam geometries are possible with appropriate support management strategies."

Jan 1, 2016

By Frank E. Williams

This Bureau of Mines report deals with the urbanization of Tucson, Ariz., a southwestern city with an arid environment. Zoning regulations concerning known aggregate sources are described, and information relating to projected needs for the urban area is furnished. History of growth is outlined not only for the local aggregate industry, but also for the entire urban area. Past conditions are pointed out and background material for future conditions is provided.

Jan 1, 1967

By Barry James

Energy, like labour and materials, is one of the basic production inputs in the industrial minerals industry. This paper discusses the significance of the changing energy situation in Canada as it affects the industry. It is apparent that the importance of energy as a management concern has increased considerably since 1973. The importance placed on energy management today will undoubtedly be an important factor in determining company and industry sector strength and profitability tomorrow.

Jan 1, 1978

By Douglas W. Barr

Water is a necessary part of our environment. It is a biological necessity, but more than that, it is a necessary part of our life style. Those of us who live in the north woods expect water to be part of the scene. There are few natives of this region who would be content to eliminate the streams, the lakes, the marshes, or our forests. Throughout the world, water has been so much a part of man's environment and man's adaptation to life has been so closely tied to water that our way of life and ways of accomplishing our work include water as an essential tool. The production of taconite is an example of our dependence on water. Other methods could have been developed to process taconite ore but the process methods chosen utilize water. Water is used for grinding and separation and for trans- porting the ore from one part of the process to another and for dust control. A typical large plant producing 10 million tons of taconite pellets per year will have on the order of 130,000 gallons per minute (8.202 m 3/51 of water in circulation in the plant. About 120,000 gal. per min. (7.571 m 31s) will pass to tailing thickeners where 110,000 gal. per min. (6.940 m 31s) is separated from tailing and returned to the process. About 15,000 gal. per min. (.9464 m 31s) goes with thickened tailing to tailing basin. My point is that there are great volumes of water in motion in a taconite plant,

Jan 1, 1980

Falls of ground (FOG) still account for around 35 per cent of all fatalities in underground southern African mines. To help reduce FOG, appropriate support technology needs to be implemented, and a mindset and cultural change are required to make a significant change. Discipline plays a major role and needs attention, whilst appropriate first-world support technology is available to assist in the reduction of injuries and the improvement of productivity. Section 54 mine stoppages due to FOG are costly. Appropriate support should reduce these unnecessary stoppages. Coal mining has adapted leading support technologies over the years. Platinum and chrome mines have shown significant moves towards adopting leading and appropriate support technologies, seeing noteworthy changes in injury statistics for the better. In typical conventional underground mining operations, the use of temporary support components offers some protection to workers while the permanent and generally more elaborate support systems are installed or constructed. Nonetheless, FOG continue and still result in injuries to people. The author wishes to explore the options and practicality of making use of new-generation support products and technology to provide not only safer support operations, but to also enhance productivity at the working faces. This paper will examine the use of appropriate support technology as a means to making the working stope or development end a safer and more productive workplace.

Jan 1, 2012

By Robert R. Unterberger

The purpose of this paper is to summarize the research of the past sixteen years on three distinct methods of probing into solid rock. The first method is to use radar of the appropriate frequency. The second method is to use sonar. The third method is of recent vintage and uses techniques of nonlinear sonar also known as parametric sonar. The first two concepts, that of radar and sonar, are common to most people. Very few have heard of nonlinear sonar. Each of the probing techniques were investigated in order to overcome deficiencies in the former technique. Each has its advantages and disadvantages. It should be emphasized that all of these techniques for probing (or seeing) into rock are used in mines, and generally speaking not from the surface. Only in very special cases, such as certain very dry parts of Egypt or Peru, or, for example, the surface of the moon, will these probing techniques work from the surface. The reason for the development of these probing techniques has been to alert miners to possible hazards ahead of mining. Such hazards may be (1) old (unknown) boreholes connected with high pressure water zones above, (2) fractures that might connect to the Gulf of Mexico above the mine, (3) water-filled fractures that threaten the safety of miners, or (4) the discovery of dry faults ahead that can disrupt the planning of future operations.

Jan 1, 1983

By P. A. Hendricks

This U.S. Bureau of Mines (USBM) report identifies and evaluates factors responsible for metal/nonmetal (M/NM) underground mining accidents involving mobile equipment. Information regarding the occurrence and severity of the accidents, the type of equipment involved, the primary and contributing causes, and preventive measures is included. The goal of this report is to provide information that will aid mine operators and safety managers in the recognition of hazards associated with operating mobile mining equipment in an underground mining environment.

Jan 1, 1994

By E. A. Johnson

The Bureau of Mines determined the effect of slag additives on copper solubility and the distribution of typical impurity elements between copper-iron matte and silica-saturated fayalite (iron silicate) slag at 1,250° C, in CO-C02 atmospheres with 10 pct S02. Small additions (<10 pct) of CaO, A1203, and MgO were shown to decrease copper solubility in the slag. Additions of CaO increased the solubility of bismuth and tellurium in the slag at lower matte grades. Al 20 3 additions decreased the solubility of tellurium in the slag, but increased that of bismuth at lower matte grades. A1203 additions increased the solubility of both at lower matte grades. With no additives, matte grade did not affect the solubility of bismuth in slags, whereas increasing matte grade resulted in a slight decrease in the tellurium solubility in slag. Additions of CaO or As203 alone to the slag increased selenium and arsenic distribution to the matte, but had little or no effect on antimony distribution; whereas small MgO additions decreased antimony distribution to the matte but had no effect on arsenic and selenium distribution. In slags with no additives, selenium distribution to the matte increased with increasing matte grade, while that of antimony decreased and that of arsenic was unchanged.

Jan 1, 1982

By Bernadette C. Michalski

Mineral raw materials, labor, capital, and technology form the basis of industrial production. The augmentation of one or all of the elements--labor, capital, and technology--will result in industrial growth. Thus, an increase in the labor force would increase output. A similar result would be achieved by expanding capital investment and supplying labor with more equipment. Finally, industrial growth can be achieved by introducing more productive methods and techniques born of technological advancement. The Soviet Union has employed these elements in many patterns to catapult from an agricultural to an industrial economy in four decades. The early history of the Soviet Union was marked by limited capital and borrowed technology, forcing the Soviets to concentrate on an abundant labor reserve to support the industrial program. The source of this reserve was the rural population. In [1928], 80 percent of the working population was employed in agriculture. This figure dropped to 43 percent by 1956, whereas industrial employment in the same period increased from 8 to 31 percent.3/

Jan 1, 1960

1994 estimates for Porgera are probable and proven reserves of 58 200 000 t of ore grading 5 g/t Au. Gold mineralisation is related to an intrusive complex emplaced at shallow levels in poorly consolidated sedimentary rocks. The complex is located in a zone of fold-and-thrust deformation, whose formation may have been initiated shortly before emplacement and continues locally today. Abundant primary magnetite in the complex gives an intense, 5 km wide aeromagnetic anomaly. The deposit formed during two main stages of mineralisation, the first related to early magmatic-hydrothermal activity and the second representing later epithermal overprinting centred on the Roamane fault. Hydrothermal alteration followed closely on emplacement indicating a close genetic relationship between magmatism and mineralisation. Both stages of hydrothermal activity post-date and overprint early propylitic alteration. Several factors have acted in unison or sequentially to concentrate metals at the deposit, including an extensional or trans-tensional tectonic setting within an arc or collisional environment, the exsolution of a magmatic hydrothermal fluid prior to sulphur saturation in the melt, the development of the hydrothermal system into one favourable for transporting gold, the action of late-stage faulting in focusing epithermal fluid flow, and the role of dissolved gases in promoting fluid phase separation and high-grade ore deposition

Jun 19, 1905

By E. J. Gleim

Contact with trolley wire in the mines of the United States has taken a considerable toll of life throughout the years that trolley locomotives have been employed as a means of&apos; transportation. A study3/ of the records over a 15-year period for one State alone showed that, of 98 fatalities resulting from contacts with electrical circuits and equipment, 75 were caused by direct or indirect contact with unguarded trolley wire in coal mines. The law relating to guarding trolley wires in the mines of this particular State, as amended in 1935, reads in part as follows: "All trolley wires carrying 220 volts or more, and less than six feet six inches above top of rail, must be guarded at all points under which men and animals are required to pass***,&apos;" The natural conclusion to be drawn from such records is that lack&apos; of guards or shields must be held responsible for these fatalities. As a preventive measure, it has been advocated that every foot of trolley wire in mines should be guarded. Although some such drastic steps may appear to be amply justified, closer examination of the records nor this and other coal-mining States shows that absence of guards is not entirely responsible; but rather that other factors, such as carelessness and neglect it the observance of certain well-established simple rules concerning installation and location of trolley wires, also are responsible. In other words, if trolley wire is installed carelessly and its maintenance is neglected, it should not be expected that the mere installation of guards will overcome such carelessness and neglect. This publication discusses Various types of guards that have been used in Coal and metal mines of this country, together with related steps bearing upon the problem of &apos;preventing shock and fatalities from contacts with trolley wire. The material herein contained is taken largely from Information Circular 6577,4/ now out of print, and has been revised to include some types of guards that have been used in metal mines, together with a discussion of guard materials not covered in that publication.

Jan 1, 1945

By Dianne C. Marozas

The U.S. Bureau of Mines is conducting research to evaluate the potential for developing an in situ leach mining process that will selectively extract manganese from oxide ores, leaving gangue relatively undisturbed. To accomplish this, a geochemical approach, based on deposit-specific information such as mineralogy and geology, is used to constrain the operating parameters of the system. Among the studies being conducted are (1) leaching experiments to define reaction mechanisms and kinetics, (2) detailed petrologic characterization at the microscopic scale to assess Mn distribution and leaching efficiencies, (3) deposit characterization and evaluation, and (4) development of potential Mn recovery schemes. Data from these studies are being used to develop engineering design information for an in situ mining process. Specific details of the Bureau&apos;s research project are discussed, including results obtained to date.

Jan 1, 1991

By T D. H McGrath, J P. Vaughan, J Heath, J J. Eksteen

A reliable laboratory method to characterise the response of free gold particles when subjected to flash flotation conditions has been developed by AMIRA P420 researchers at Curtin University. This test has been applied to assess the flotation recovery of gravity recoverable gold from free milling ores as well as synthetic ores featuring either a gravity concentrate or gold powder. Trends in free gold flotation kinetics as well as size and milling effects were identified for gold recovery, based on the different gold types, reagent dosage and residence time.CITATION:McGrath, T D H, Eksteen, J J, Vaughan, J P and Heath, J, 2013. Laboratory flash flotation trends for a variety of gold particles, in Proceedings World Gold 2013 , pp 357-366 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 26, 2013

By Yao Dun-Pu

Solution mining, sometimes also refered to as chemical mining or bacterial mining, is an innovative technology which, by making use of proper chemical reagents and taking advantage of bio-chemical action of some micro-organism species, can dissolve effectively most. desirable metallic values from ores and then extract them profitably from the resultant metal-bearing solution by suitable means to form the metal product it is more preferable to the conventional mining methods, not only because of its capability to improve working conditions and minimize environmental problems either underground or on surface, but also for its amenability in particular, to exploit low-grade or submarginal ore bodies, or those deposits which are too deep-seated to be mined out economically. Furthermore, it also provides a potential approach to win metals directly from their ores or ore-deposits in-situ by more simplified methods and at a lower cast than the conventional mining-milling-smelting process would do previously. Hence, in developing countries such as China, it will most, probably become a new mining tool of great promise. (1)

Jan 1, 1981

By H. F. Yancey

Traditionally the Pacific Northwest has relied on hydroelectric power, which has been both abundant and cheap. However, comparatively few hydroelectric sites capable of providing low-cost power remain, therefore the need for supplemental thermal generation, perhaps within the next decade, is generally recognized. Based on the present cost and availability of competing fuels, coal seems to be the logical choice for projected thermal power plants. Power companies and public utilities have become interested in establishing reserves of coal for future use. One deposit explored in 1958-59 lies in southern Thurston and northern Lewis Counties, Wash., near Centralia. Drilling, totaling 22,700 feet, proved the existence of 70 million tons of strippable coal--an ample reserve for the projected power plant. The coal, like most others and particularly those of Washington and Oregon, when mined in full seam section by mechanical methods, would require cleaning to make it suitable for use. The amount and nature of the impurities in this coal dictated a thorough investigation of its cleaning characteristics to establish economic factors and to insure proper preparation-plant design. Therefore, arrangements were made through a cooperative agreement to conduct such work at the Seattle Coal Research Laboratory of the Bureau of Mines. This report describes that investigation. The results are of interest primarily in connection with the utilization of this particular deposit, but some of the information developed is applicable to other deposits of low-rank coals in the West, because the impurities in these coals differ greatly in behavior from those generally associated with the higher rank coals of the Appalachian field.

Jan 1, 1961

By B. Meddings, O. J. I. Evans

"This paper is mainly concerned with the present and probable future role of hydrometallurgy in the production of base metals.The economic and technological bases of the hydro-metallurgical plants built and operative in the mid-fifties are compared to those in production in the mid-sixties. The trends observed are extrapolated and some estimates made concerning the probable size and type of hydrometallurgical plants which will be operative in the mid-seventies.The impact of emerging socio-economic factors such as pollution control and the market demand for specialized metal products which favour hydrometallurgical recovery processes are also discussed."

Jan 1, 1971