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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 Robert D. Thomson

Sheet mica is an important material in the manufacture of electronic and electrical equipment. Large quantities are consumed each year as an essential component in generators, transformers, radios, television sets, radar, electric lighting equipment, and electrical appliances. The nature, structural imperfections, and impurities determine to a great degree the usefulness of sheet mica. Proper processing and classification add greatly to its market value. This report is designed to assist producers in understanding the complexities of marketing muscovite sheet mica. ACKNOWLEDGMENTS Special acknowledgment is due S. A. Montague, of Spruce Pine Mica Co. and G. A. Purcell, mica consultant, General Services Administration, for their critical review and many helpful suggestions in the preparation of thin report. Assistance from other industry and Government representatives is acknowledged with thanks.

Jan 1, 1955

By Joan C. Biordi

A molecular beam-mass spectrometer-low pressure flat flame apparatus has been constructed for the purpose of examining the chemical microstructure of normal methane-oxygen-argon flames and those inhibited with Halon extinguishants. Details of construction and performance of this apparatus and of related flame temperature measurements are given. Particular attention is paid to the empirical characterization of the perturbation to the flame caused by the sampling probes. The composition profiles obtained for normal flames are compared to those of flames inhibited by CF3Br. In addition to the usual stable species (CH4, O2, CO, CO2, H2O, H2, and H2CO), the inhibitor, its products and intermediates associated with its reactions could be followed. In particular, hydrogen bromide, bromine atoms, hydrogen fluoride, and carbonyl fluoride were observed. The relatively rapid disappearance of inhibitor and early appearance of fluorinated reaction products suggest a short lifetime for the CF3 radical in this system. Observation of COF2 suggests that CF3Br is effective as an inhibitor, at least in part, by virtue of its interference with the oxygen containing species of the normal chain reaction. Profiles of the 17+ peak at low electron energy suggests that the hydroxyl radical may also be sampled, but the profiles obtained are not yet sufficiently accurate to determine the effect of inhibitor on this important flame radical.

Jan 1, 1973

By K. D. Dill, S. D. Rosenthal

"This project analyzed the efficiency of incorporating the use of directional drilling technology into coal overburden blasting. Directional drilling is currently in use in the petroleum industry and it is believed that it will be a valuable asset in the mining industry. This project has shown that directional drilling can be a viable technology for use in the coal overburden removal process resulting in increased drill utilization and potential for cost savings. Future work regarding blasting and geotechnical evaluation should be performed to solidify the concept. INTRODUCTION Determine the Potential Drill Utilization Improvements and Rock Fragmentation Requirements Using Directional Drilling in a Coal Mining Overburden Highwall Application was a project funded by Atlas Copco Drilling Solutions (Atlas Copco) based in Garland, Texas. The project was developed and researched by Montana Tech of the University of Montana. This project was intended to show how the use of directional drilling can increase drill utilization, while decreasing costs, without sacrificing overburden blasting results. This paper discusses a review of the literature, the methods performed, conclusions and future work Background Atlas Copco theorized that an alternative approach to drilling a cast blast pattern would be beneficial to coal mining operations by increasing drill utilization and therefore, decreasing overall costs. Increasing drill utilization results in an increase in the amount of time the drill is being productive, more drill bit time in ground. Atlas Copco’s theory is that by incorporating directional drilling in the design of a cast blast pattern, a drill rig could drill multiple directional holes, which are the length of the cast blast, from a single drill set up. A drill goes through a series of steps to complete a blast pattern, these steps include: tramming to the hole location, leveling the drill, drilling the hole, cleaning the hole, and retracting the drill steel. This process is repeated hundreds of times until the whole pattern is completed. The most time intensive part of this process is drilling out the blast pattern. Integrating directional drilling into this process could decrease the overall time it takes to drill out a blast pattern by minimizing the amount of time spent tramming and setting up for each subsequent hole. Tramming and drill set up are two aspects of the drilling process where the drill tool is not engaged with the ground and, therefore, not being utilized. A cast blast pattern designed to utilize directional drilling will allow the drill tool to be “in the hole” longer and will improve drill utilization. This change in drill utilization was analyzed. Drilling and blasting is an integral part of the mining process, without it mining would be a slower process and less material could be mined. Drilling provides holes for explosives to be loaded and then blasted. Blasting has been found to be the most cost effective method of fracturing rock in mining for material removal. Blasting is also used as a low-cost method to move the rock in open cast mines, commonly referred to as cast blasting. A cast blast is a large blast designed to allow for the maximum amount of overburden to be removed using explosives in a single blast thereby uncovering more coal at a lower cost. Not all the material is blasted to cast-to-final, which requires that material to be moved with large mining machinery. Material that is considered cast-to-final is material that has been thrown far enough to never be moved again in the coal extraction process, therefore it is in its final resting place. A typical cast profile and cast-to-final area is shown in Figure 1."

Jan 1, 2017

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 Larry M. Southwick, Phillip J. Mackey, A. E. (Bert) Wraith, Albert Pelletier

In 1881, the first commercial pneumatic Bessemer-type converter treating copper matte was successfully introduced by Pierre Manhes at the Eguilles copper plant near Vedène in France. This development followed over a year of testing on a smaller scale at a foundry in Vedène, during which the vertical tuyeres of the conventional Bessemer converter had been successfully replaced by horizontal tuyeres in an effort to avoid the freezing of copper which had occurred in the bottom of the vessel having vertical tuyeres. The Manhes Converter, as it became known, was the first successful large-scale adaptation of the Bessemer concept of using compressed air blown into a melt for metal refining and treatment. Within a few years, Manhes Converters utilizing horizontal tuyeres in either the original type of vertical converter, or a later and more enduring horizontal barrel converter, were in operation at over a dozen copper smelters around the world. It was this process that Messrs Peirce and Smith essentially improved with the introduction of the larger converter which bears their name and the development celebrated at this Symposium. The present paper briefly traces the original development by Pierre Manhes in the early 1880s and which set the stage for the later Peirce-Smith adaptation. The paper observes that the original development by Manhes was in part driven by the need to reduce coal (energy) consumption and hence the production cost in order for Eguilles to remain competitive with the larger plants in Swansea, Wales, where a ready supply of cheap coal helped keep smelter treatment terms of the day low. These themes are eerily resonant of today where booming copper production in China has impacted the industry, and also where energy consumption, closely linked to today’s more familiar theme of ‘climate change’ remains an important challenge currently confronting the entire industry. The paper concludes with comments on these seemingly parallel situations today and offers some thoughts for the future.

Jan 1, 2009

By C. W. Davis

This paper is the second of a series of progress reports on a study, of the hydrometallurgy of manganese which is being conducted in an endeavor to make possible utilization of the large deposits of low-grade domestic manganese ores that occur in several States. There are at least four processes in which a knowledge of the action of SO2 gas on manganese oxides at elevated temperatures may prove of value. One ,of these involves dissolution of manganese from ores. The Bureau of Mines has investigated the hydrometallurgy of manganese by a process in which SO2 gas, a waste product at many smelters, is passed into water to form a solvent for manganese. Although Several manganese minerals acre readily dissolved, rhodochrosite (MnCO3) was attacked but superficially.§. Recent experiments have shown that a roast at 650 to 900°C converts the manganese of rhodochrosite to a form that is quickly dissolved by a weak SO2 solution. Introduction of smelter gases containing as much as 5 per cent SO2 during such a roast would not add much to the cost of the operation and might result in the formation of considerable water-soluble manganese sulphate.

Jan 1, 1930

By P Hawke, J Hurst, B KrapeP

Hancock Prospecting Pty Ltd (HPPL) drilled two deep diamond stratigraphic holes (ECD0001 and RHD0296) within the eastern Fortescue Valley in the Pilbara of Western Australia. Located south of the Roy Hill Iron Ore project, the holes aimed to define the stratigraphy of the Marra Mamba Iron Formation (MMIF) of the Chichester Range and its south-dipping extensions below recent cover. Previous attempts to define the MMIF of the Chichester Range have resulted in differing interpretations due to the data available at the time.The unweathered MMIF beneath the Fortescue Valley in the HPPL drill holes is characterised by dolomitic carbonate interbedded with stilpnomelane-rich shales, chert and banded iron formation (BIF) with hematite staining. This intersection equates to ~75 m of carbonate-facies iron formation, as opposed to the ~230 m thick oxide-facies BIF and shale sequence encountered south of the Fortescue Valley.Various detailed geological core analyses and interpretations from ECD0001 and RHD0296 were integrated with regional diamond and reverse circulation (RC) holes from across the Fortescue Valley. Interpretation of the data indicates that the eastern Fortescue Valley MMIF represents a thinned thickness sequence of the whole formation. The MMIF of the Chichester Range and Fortescue Valley has gamma logs that correlate strongly in parts to the type section used for MMIF south of the Fortescue Valley. Therefore, the outcropping MMIF in the Chichester Range represents an eroded equivalent of the æreducedÆ thickness MMIF observed in ECD0001 and RHD0296.Data from deep diamond drill holes across the valley, from the Hamersley Basin to the Carawine Basin, were correlated. The correlation shows that the depositional site of the MMIF in the HPPL diamond drill holes is consistent with a proximal ramp setting, in which iron-rich shales wedge up-palaeoslope and shelf-derived carbonate turbidites wedge down-palaeoslope. Not only is it the occurrence of these shales that define the MMIF, but they also determine the northward potential to develop orebodies, as they are the source of iron from which iron-rich oxides and carbonates of metamorphic or diagenetic origin form.CITATION:Hurst, J, KrapeP, B and Hawke, P, 2013. Stratigraphy of the Marra Mamba iron formation within the Chichester Range and its implications for iron ore genesis at Roy Hill - evidence from deep diamond drill holes within the East Fortescue Valley, in Proceedings Iron Ore 2013 , pp 91-106 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 12, 2013

By R. H. Mozley

It is not my intention in this paper to review recent developments in the mineral processing industry which might fall under the above heading, but to refer to some of the research that I have done over the past 25 years or so. To begin with then, my student days at the Camborne School of Mines, the year 1952. Equipment from the last century was still in everyday use at the local tin mines. At South Crofty Ltd a steam beam engine 100 years old was pumping mine water from 2000 feet, the motive force being conveyed from surface to the pump at the bottom of the mine by a 14 inch square pitch pine rod joined with forged iron straps, steam winders were still in use, and in the mills, stamps ground the ore, and the cassiterite was recovered by equipment with exotic names like "buddies, kievs, and round frames." And to equip us students for the brave new world, we included in our practical mineral dressing a day's test programme with a Californian stamp -- experience that I am still waiting to put to good use!

Jan 1, 1984

By Harry F. Weaver

WHEN 1 was assigned by the Director of the United States Bureau of Mines to present a paper at this annual meeting of the Mining Society of Nova Scotia, 1 was grateful, honoured, and elated to realize finally a life-long desire to see your beautiful land and visit with you who have the good fortune to live and work here. Naturally, in preparing for this important event, 1 wanted to give you something of special interest within the limits of the subject so I chose an area dose to my heart -the operation of our Federal coal mine inspection service, which has, as its fundamental purpose, the prevention of accidents in and around ?Coal mines. In 1957 the United States had 10,879 active coal mines scattered throughout 28 States and the Territory of Alaska. The production of coal for the year was about 515,472,000 tons, including 2.5,472,000 tons of anthracite and 490,000,000 tons of bituminous coal and Hgnite. Anthracite is mined principally in a comparatively small area of one State. AU the 28 States and the Territory produce bituminons coal and/or lignite. The beds mined range from 18 inches to more than 100 feet in thickness and from the horizontal to the perpendicular.

Jan 1, 1958

By A. A. Davis

The decade of the 70?s saw a series of landmark environmental resource programs enacted by the Congress. Many states followed suit, so that by the end of the decade air quality, water pollution, and the conservation of other natural resources, including minerals, were the subject of a wide-ranging body of laws, policies, regulations, and procedures. Many of the actions required or permitted by this rule-making involved areas for which adequate information and substantial experience were not available. Moreover, goals and objectives were sometimes established which were enormously difficult to achieve technically, or of such formidable expense as to cause concern about their consequences in the marketplace. It is therefore hardly surprising that one product of all this activity has been a mass of litigation. Court dockets are crowded with suits and counter-suits involving both substantive and procedural aspects of environmental protection. Indeed, it is probably fair to say that the volume and range of environmentally-related disputes brought before the courts parallels that generated by the civil rights movement a decade ago. There were also some new dimensions to the environmental movement. For the first time, the national environmental policy act required agencies to prepare environmental impact statements when proposed projects or activities would have substantial impacts on environmental resources. Another requirement of many of the new programs mandated meaningful citizen participation in public decision-making. Here, as elsewhere, the purpose was admirable, but guidelines were vague, and the result often was inaction, polarization, and litigation.

Jan 1, 1986

By Dave D. Ferris

Today the coal industry is beginning to use some very fundamental economic evaluations to determine the most economical circuit to produce a specified saleable product. The fundamental economic methods used are standard return on investment and net present value calculations. By utilizing these economical evaluations, one can justify a larger capital expenditure and realize more return for an investment over the life of a coal property.

Jan 1, 1983

By Mark K. Larson, Douglas R. Tesarik, Heather E. Lawson

"Load transfer distance (LTD) is simple in concept and usually evident in underground coal mines. Many people in the mining industry recognize LTD as the distance from the panel to where the mine ribs and pillars show evidence of renewed spalling, floor heave, or other effects of increased weight due to longwall mining or pillaring. Barrier pillars, in particular, are designed to shield mains and other relatively permanent facilities from this loading. LTD is also important in determining the extent and degree to which mining increases the load on pillars and ribs in the gate roads. Generally, a long LTD reduces loads in gate roads, but may require larger barrier pillar widths to protect mains or adjacent panels from excessive loads. Therefore, a long LTD may make it easy or difficult to meet various objectives of mine layout design . LTD reflects overburden geology in two ways: First, overburden that is weak and readily caves will limit both the amount and distance of load transfer. Second, stronger, stiffer, sandier, and more massive overburden increases both the amount and distance of load transfer. As such, LTD is central to coal mine layout design and calibration of numerical models that seek to anticipate these transfers of load during mining. However, the term does not have a consistent definition in the literature, and various instruments and observational techniques with varying sensitivities and thresholds have been used to indicate the onset of mining-induced stress increase and, subsequently, to determine an LTD. Consistency is important for meaningful comparison of ground response between mining sites and for accurate calibration of models.This paper adds to the body of observed and reported LTDs by presenting cases with relatively sandy and massive overburden at two western coal mines. These two cases include observation and measurement of LTD with multiple methods and provide insight into how distances reported relative to different criteria and instrumentation could be adjusted for comparison against a common base. This base is the criteria used by Peng and Chiang (1984) to determine their empirical equation. In one of these two cases, LTD was recently measured at a western U.S. coal mine (Mine A) to be approximately four times that calculated using the Peng and Chiang empirical equation. LTD measurements were examined using various instruments at Mine A and at adjacent Mine B. The measurements at Mine B showed that LTD was significantly greater than that calculated by the Peng and Chiang equation. Difficulties with BPC installation and fittings at Mine B permitted only ranges of LTD to be determined from some BPCs. Even so, the LTDs and ranges of LTDs determined were consistent with the LTDs determined at Mine A."

Jan 1, 2015

By J. D. Lane

The U.S. Bureau of Mines is conducting research on guidance systems for computerized haulage in underground mines. This report describes the process of component selection, installation and testing, perception algorithm development, and steering control algorithm development, to produce a real-time steering control system for an articulated haul truck for underground mining. Ultrasonic transducers were mounted on the truck to provide perception data by measuring the distance to the ribs. Linear potentiometers mounted inside the steering cylinders measured the steering angles. Algorithms, implemented on an inexpensive, robust onboard computer system, analyzed the data and controlled the steering via an electro-hydraulic proportional valve. The steering algorithm presented follows a zone defined by the relative position between the truck and a rib. Experimental verification of the ability to follow the zone in a test corridor on the Colorado School of Mines campus is presented. The automatic steering system successfully negotiated straight sections, curves, and the transition zones between straight and curves with the truck in first and second gears. The resulting real-time automatic-steering system can be applied to many underground articulated machines.

Jan 1, 1994

By K. F. Unrug

An overview of the history of mining technology, both past and present, shows that some of the new concepts being successfully applied have changed the reserve categorization and are having an overall impact on production. Past coal mining operations in the eastern coal fields, and especially in Appalachia, extensively utilized stripping with the predominately applied contour method. As a result, vast mountainous areas have abandoned benches left behind by past mining operations. While thicker seams previously stripped were usually mined by underground or mountain top removal methods, thin seams beyond technical or economical limits were left intact after contour mining had reached the ultimate height of the wall. These thin seams quite often contain high BTU, low ash and sulfur coal that makes them attractive for a secondary recovery due to the market requirements. Secondary highwall recovery has obvious potential and is economically attractive; however, with the present state of industrial experience and lack of analysis of site data, a trial and error approach is used by operators.

Jan 1, 1983

By R. J. Hundhausen

"INTRODUCTION Preliminary examination of the Blue Ledge mine was made by O. H. Metzger, a Bureau of Mines engineer, in May 1943. A result of his recommendations; a Bureau of Mines sampling and exploration project was begun by J. R. Reynolds in October 1943 and continued to December when it was recessed for the winter. The project was resumed by the auther in May 1944 and was completed in November 1944. The Federal Geological Survey 3/ assisted by mapping the geology of the mine and logging the diamond-drill cores obtained from the Bureau's exploration Company maps, diamond-drill-hole records, several reports, and other data on the property were made available to the Bureau by D. C. Brown, of Towne Securities Corporation, owner of the Blue Ledge group of claims. E. A. White, general manager of the Tacoma Smelter of the American Smelting & Refining Co., supplied statistics for all ore that has been purchased from the Blue Ledge mine by his company."

Oct 1, 1947

By George F. Kunz

Jan 1, 1902

By F. A. McLean

The past decade has witnessed a rapid increase in the number and variety of uses found for internal combustion engines in mining operations. Gasoline engines are now widely used for operating core drills, pumps, compressors, small hoists, switching locomotives, tractors, boats, and other equipment. The heavy-oil engine is employed for operating compressors, generators, shovels, ore-milling machinery, and- in the iron, copper, and coal districts- in connection with that' latest newcomer in modern railroading, the oil-electric locomotive. Each of these applications could well form a subject for a lengthy treatise in itself. This paper, however, will be confined to a discussion of some of the features of internal combustion engines as applied to mine compressing plants and mill drive. Perhaps at no time in the history of mining in Canada has the search for new mines been more vigorously carried on, more old properties rejuvenated, or more remote districts exploited than during the past three years. The mine operator of today has a far wider range of equipment and facilities at his disposal than had the pioneers of Rossland, Cobalt, or Porcupine. Each year now witnesses the hinterland driven farther and farther back as improved forms of transportation, machinery, and methods make possible the exploration of properties once considered too inaccessible to warrant serious attention. Howey, Sherritt-Gordon, Callinan-Flin Flon, Jackson-Manion, Picard Gold Mines, and a number of properties in British Columbia, afford excellent examples of work carried out on an extensive scale miles from a railway, or in comparatively inaccessible mountain regions.

Jan 1, 1928

By M. Zanini, D. Wong

ABSTRACT: Metals market improvements in 2005 drove the desire to increase nickel throughput and the production of nickel oxide sinter at the Vale Ltd. Copper Cliff smelter. Significant difficulties were encountered due to the unreliable quality of Bessemer matte being produced. Concentrate feed changes and the loss of technical and operational expertise during the previous market downturn contributed to the challenge of making the required improvements. Significant progress has been made in the converter aisle by focusing on employee engagement and standardizing best operating practices for a new generation of skimmers. This paper documents these initiatives and seeks to balance the art and science of converting.

Jan 1, 2012

By Dale R. Andrus

Why is there such an increased thrust toward positive multiple use land management and where will it lead? History and purpose of the mining law of 1872. John Marshall discovered gold at Sutter?s mill near Coloma, California, on January 19, 1848, and utter chaos resulted. The great migration of people to the undeveloped western lands had begun. Prior to this discovery, copper, lead, and iron had been the minerals for which the laws were made. With this discovery of gold on the public domain, it became apparent that congressional legislation was necessary. This became even more apparent as each of the numerous mining districts which were springing up in California, and elsewhere in the west adopted local miners' customs to regulate their activities. Although these early miners acted under mining district rules and in some cases state regulations, they were, in reality, appropriating minerals without sanction of federal law.

Jan 1, 1970