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By D Lautier, A A. Ndiaye, A Galli

Traditionally gold producers had built up hedge books to protect themselves against adverse changes in the commodity price, but diversified mining groups were staunchly opposed to hedging in any shape or form. The situation has evolved over the past few years. Gold miners have been reducing the size of their hedge books in line with the rising gold price. Commentators have talked about ædouble-digit dehedgingÆ and have suggested that this is the final countdown for gold hedge books. It sounded as if the era of hedging by mining companies was drawing to a close. But as appearances can sometimes be misleading, we decided to find out what mining companies were actually doing. Companies listed on stock exchanges are now obliged to give details of their derivatives holdings in their annual reports. Two or three years ago there was no such obligation. Our reality check was based on the latest annual report issued by three multinational mining groups; two with diametrically opposed views on hedging (Rio Tinto and Barrick) and the third (BHP Billiton) with an intermediate position. This snapshot of their derivative positions at a point in time revealed that Barrick and BHP Billiton have substantial derivatives positions (worth billions of dollars) to protect against adverse changes in foreign exchange rates and interest rates. Moreover Barrick has recently started hedging against increases in fuel prices. Despite its opposition to hedging, Rio Tinto has derivative positions worth several hundred million dollars, but these are primarily a legacy from various mergers and acquisitions over recent years or were entered into as a condition of project financing. Lastly we were surprised to discover that Barrick was holding asset-backed commercial paper (ABCP). So the idea that mining companies donÆt hedge their risks is just another urban myth.

Jan 1, 2009

By L. D. Smith

Net Present Value Impact of Discount Rate The Discounted Cash Flow (DCF) method of valuations is universally used and accepted. The main criticism of the method is that it does not recognize the value of projects long life projects. This can be seen in the preceding graph where the present value of cash flows in later years are small for discount rates over about 10%. This graph covers a project that has a 25 year operating life. It is clear from the low height of the NPV bars at 10% and 15% in the last years of the project that an additional 25 years would add almost no value to total project NPV. As an example of this effect, an colleague undertook the evaluation of a pulp and paper project. The plant could be justified, but it was not possible to justify planting the trees as they took too long to grow and so had not appreciable NPV. The plant had to purchase wood to feed the plant.

May 1, 2013

By D H MACKENZIE

In common with several great orebodies and mineral camps around the world Broken Hill has been the subject of state-of-the-art technical and scientific scrutiny during its long working life. During the early years geological interest in Broken Hill tended to be directed at the body for its intrinsic scientific worth, mainly on account of its large size, high grade and wealth of mineral species. For much of the last 60 years the interest has had a more applied motivation, namely, to assist the search for either repetitions in the Broken Hill field or analogues in other terrains. This paper looks at the major changes in geological concepts and exploration techniques applied at Broken Hill and attempts to assess their impact.

Jan 1, 1992

By Ralph H. Sweetser

MUCH progress in -blast-furnace construction and in the manufacture of firebrick for furnace linings has been made since the publication of Bulletin 130 of the U. S. Bureau of Mines on "Blast-Furnace Breakouts, Explosions and Slips, and Methods of Prevention," by F. H. Willcox in 1917. At the time of publishing this report comparatively little information was available to blast-furnace men as to the fundamental facts relating to the character of blast-furnace refractories. Some of the accepted theories of only a few years ago have been completely reversed. The mortality of blast-furnace linings used to be so great that nearly every furnace plant had one or more complete linings in the brick shed ready for use in case of a lining suddenly "going out"; it was generally accepted that a furnace could not "keep her lines" more than two or three years at best, and often a hot spot in the shell would develop, or a breakout occur in the hearth or bosh within a year or two after blowing in on a new lining. In some respects these frequent relinings were not so detrimental as to he a complete loss because they afforded opportunities to take advantage of advances in blast-furnace practice. At present the cost of relining has greatly increased, but the life of a lining has also increased. Anything less than five years on a lining is now considered a short blast.

Jan 1, 1932

By Kenneth M. Maas

The Bureau of Mines inventoried the land availability for mineral exploration and development in northern Alaska and compared this land with known mineral terranes and mineral deposits, to quantify the potential for favorable location of mining claims for metalliferous mineral deposits. This report includes thirty-three 1:500,000-scale maps that depict land availability, and the accompanying text and tables relate availability acreage to areas of favorable mineral terranes. Three categories of land availability and ownership are identified, along with 12 subcategories of land status. Available land comprises approximately 14.5 million acres or 16% of the 90.3-million-acre study area; land available with restrictions accounts for 7.5 million acres or 8%; and unavailable land encompasses 68.3 million acres or 76%. Mineral terranes underlie 37.8 million acres or 42% of the study area; 5.3 million acres or 14% are available for mineral location, 2.8 million acres or 7% are available with restrictions, and 29.7 million acres or 79% are unavailable. There are 500 known mineral deposits or occurrences within the study area. This includes 271 lode deposits, of which 171 lie within a recognized mineral terrane and 55 are on available land. The remaining 229 are placer deposits.

Jan 1, 1987

By Herman Wotruba

Mercury emissions and other environmental impacts in small-scale gold mining are a world-wide problem. "Clean" or better: "Cleaner" technologies have -apart from being environmentally sound -to guarantee a higher income and better working conditions for the miners in order to have a chance for long-term acceptance. In small scale primary gold mining in several South American countries, a number of techniques have been adapted and improved so that they not only were accepted due to their efficiency and easy handling, but they could also significantly lower mercury emissions.

Jan 1, 2003

Classification within the Inferred Resource category is based on geological judgement and the balance of extrapolation versus interpolation that the Competent Person is prepared to accept. These resources are typically drilled at spacings well in excess of the geostatistical range and at a density that is non-uniform. In many cases, a substantial proportion of the available data will be historical, and should be considered with more recent data sources. The provision of a robust geological model will increase the confidence in any resource estimate, and should be viewed as a critical component. The definition of Inferred Resources is of great importance to vein gold projects, since Indicated and Measured Resources generally require costly underground development for delineation. Indeed, many gold vein operations possess substantial quantities of Inferred Resources (>75 per cent) in their resource inventory both at project start-up and during production. This contribution explores a number of the key issues when using the Inferred Resource category and presents four recent case studies.

Jan 1, 2006

By M. García-Vásquez

In Peru, the third destination in worldwide exploration based on expenditure, mining conflicts have spread dramatically over the last decade. Mining companies need to create new initiatives to avoid social conflicts and strengthen the social capital needed to keep mining in a country with proven mineralogical riches. This document provides information about a research project that explored the opinions and experiences of a resource many times overlooked by companies: the human resource. Over 30 surveys were conducted among professionals working at mines in the Peruvian mining industry, in different departments and from different organizational levels. Mining employees acknowledged that they play an important role in the development of company-community relationships and gave their impressions about initiatives implemented by international mining companies in Peru. Mining employees also provided their recommendations to succeed in a location where cultural differences have not been properly considered.

Jan 1, 2011

By Terry L. Muldoon

The report describes the development of preliminary requirement specifications for standardized operating controls for roof bolting machines used in underground coal mining. According to recent statistics, roof bolting continues to be one of the most hazardous occupations in underground coal mining. The two principal hazards to the roof bolter operator are the machine itself and roof falls during the bolting cycle. The lack of standardization of machine controls is a major contributor to this hazardous situation. Observations of roof bolting operations and discussions with roof bolter manufacturers coupled with detailed analyses of roof bolter control design specifications were performed during this study. Detailed roof bolter operator task analyses, commonality of control analyses, and classical link analyses were also performed. The results of these analyses were then used to produce preliminary requirement specifications for standardized controls.

Jan 1, 1980

By Karl J. C. Harries

Mineral Agreements and Royalties

Jan 1, 2003

By F. Garcia-Carcedo

This research aimed to develop a clean technology for the production of ZnO from residues generated by the steel making industry. Scientific and technologic parameters were both investigated in order to define an industrial methodology allowing the integral recycling of EAF dusts. A reengineering of the Waelz process was perform,~d, aiming to produce a clean fraction of ZnO, fluorine free, as well as a slag enriched in metallic iron, which can be recycled in electric arc furnaces. The technical conditions used to produce the ultra pure fraction of ZnO are described. The magnetic separation of the EAF dust allowing the production of a phase high in iron and recyclable to the electric arc furnace is also discussed. Thermodynamic of the volatilization of all the elements contained in the EAF dust was performed in order to better control the thermal process in the rotary kiln. Tests were run using different reducing agents, weakly or highly reactive, aiming to determine their specific efficiency.

Jan 1, 2000

By J. Saunders, N. Pretorius, G. Krafft, T. P. Katakwa

Imagine being able to see all the future planned mining activities in real time. This is exactly what SIMS (Short Interval Management System) will enable you to do. SIMS is a real time short interval control system that continuously measures and sets optimised plans for mining production processes. The system utilises algorithm-based software that takes resources (people, equipment, tasks, and workplaces) and gives you the best achievable plan. The algorithm was developed using methods found in the field of metaheuristics. A metaheuristic is a strategy to designed to efficiently search for optimal or near optimal solutions to problems that are very complex computationally. (Glover, 1986) There are several algorithms that have been developed to solve optimisation problems which are difficult to solve using traditional techniques. This has given rise to a field called evolutionary computing. (Simon, 2013) Examples of these techniques are genetic algorithms, particle swarm optimisation, and ant colony optimisation. These methods are used to solve problems in a variety of fields. As an example, Kok and Lane (2012) used particle swarm optimisation for equipment allocation in a mechanised underground mining environment. The first SIMS deployment took place in a platinum underground tabular mechanised mine near Burgersfort (province?) from 2017-2019. This included the development from a paper-based system to a fully operational online system. SIMS then moved to a second site and is currently being tested in a second platinum underground tabular mechanised mine in South Africa. Full deployment of the system is currently being phased in. SIMS was built in response to issues that have been plaguing the mining industry for years. These issues are all aligned into one major problem statement: how can we optimise mining production processes without compromising safety? This product was developed by combining years of mining experience with software development. SIMS is based on a four-pillar concept. Safety, productivity, accountability, and business improvement. SIMS uses a set of pre-configured mining and production rules, and with the resources that are available, to determine valid short term production plans. A background algorithm then determines the optimum plan to be executed. The system continuously produces a set of job cards that are pushed to respective operators on their allocated tablets. The management portal component allows you to view and manage all current and planned work on any connected device available. This allows real time visibility of completed, current, and planned work to operators, service departments and management, i.e., seeing into the future.

Sep 1, 2021

By Arel B. McMahan

The U.S. Bureau of Mines investigated mines, prospects, and mineralized areas in the Owlshead Mountains Wilderness Study Area (WSA) in 1982. Within the WSA, subeconomic manganese, iron, zinc, and lead resources were identified at two mines; sample analyses indicate five other mines and prospects may have gold, silver, iron, manganese, and copper resources. Three mines examined adjacent to the WSA have identified manganese and iron resources; and sample analyses indicate manganese, iron, and gypsum resources may exist at two prospects. Greatest likelihood for future identification of mineral reserves is for manganese at the Black Magic Mine in the southeast part of the WSA. The southern half of the WSA contains nearly all identified mineral resources, and properties at which sample analyses indicate additional resources. The most significant are manganese and iron resources at the Black Magic Mine in the southeastern part of the WSA; and the Ellie, New Deal, and Owl Hole Mines adjacent to that part of the area. Manganese and iron minerals filled fractures and replaced limestone in brecciated and faulted contacts with intrusive granitic rocks. In the southwest corner of the WSA, sample analyses indicate four prospects may have gold and silver resources. These precious metals are in gouge zones along contacts where diorite has intruded volcanic rocks. A small identified resource at the Kennedy Boys Lead Mine in the western part of the WSA consists of quartz veins with zinc and lead minerals along a brecciated contact between granite and limestone roof pendants.

Jan 1, 1985

By M Scoble

This paper addresses the importance of collaborative approaches to resolving future mining challenges. It attempts to provide some insight into understanding the theory, measurement, mapping and management of collaboration. This is related to the design and planning for successful research and educational initiatives. Reference is made to Canadian and global case studies and personal experiences.

Nov 22, 2011

By T. H. Peters

The historical development of this program, dating from the construction of Nickel Park at Copper Cliff in 1917 to the various current projects carried out in the Ontario Division's program, is reviewed. Practices used to grow vegetation on stressed areas, the beneficial aspect of the improved aesthetic appearance of company properties from the point of view of public relations and the improved approach to the workplace by the employee are discussed. The revegetation of the tailings area and its gradual transformation into a Wildlife Management Area is reviewed.

Jan 1, 1978

By W. G. Worcester

THE chief object in presenting this paper on bentonite is to attract general attention to one of the least known and most neglected industrial minerals of Canada, a mineral of extensive commercial possibilities, as evidenced by its development and exploitation in other countries, principally in the United States and Germany; countries upon which some of our most important Canadian industries are dependent for their supply of special clays, such as Fuller's earth and activated bentonite. It was in view of these conditions and the knowledge of the presence of large quantities of bentonite in the Canadian West that the work here reported on was under-taken. While the investigational studies have not been completed, the results indicate that among the many samples tested there are some of real merit and industrial importance. While it has been the author's privilege to examine deposits and samples of bentonite from all of the Western provinces, his chief activities in the field and in research studies have naturally been confined largely to Saskatchewan materials. Notwithstanding this, however, this paper is presented in the hope that it may stimulate a more general interest in, and study of, Canadian bentonites as a whole, a matter of such importance that provincial boundary lines should be overlooked. GENERAL CHARACTERISTICS OF BENTONITE According to Schurecht and Donda (1), bentonite is commonly composed of the mineral montmorillonite, (Mg,Ca)O.Al203 5SiO2 .nH2O, though some are known to consist of beidellite, Al2O3 3SiO2.nH2O: where n is approximately 4, and in certain cases the Al2O3 may in part be replaced by Fe2O3. For present purposes, however, it may be sufficient to state that, in general, bentonite is a "soapy' clay-like mineral or group of minerals composed largely of hydrous aluminium silicate, but frequently carrying small percentages of the alkalies, alkaline earths, and free silica, as well as silicates, gypsum, and other admixed detritus such that purification is usually necessary.

Jan 1, 1937

By AIME AIME

THREE of the addresses presented at this interesting and important session are printed in full else- where in this issue. The fourth, Mr. Hewett's paper, on "Cycles In Metal Production" has been issued as Technical Publication 183, and an abstract of it was published on page 162 of last month's issue. The general discussion that followed these four important papers is given in full below. S. A. TAYLOR: I would like to ask Mr. Veasey whether the control of oil in pools includes royalties, and, if so, in case of a new pool how are you going to control, or rather how are you going to describe the limits of that pool?

Jan 1, 1929

By R. W. Raymond

I wish to call the attention of the Institute to a curious subject, brought to my notice last summer by Mr. Begger, the accomplished metallurgist of the smelting-works of the Boston and Colorado Company at Black Hawk, near Central City, Colorado. At these works, the richest auriferous sulphurets of Colorado (particularly copper pyrites) are smelted in reverberatories, together with roasted tailings (iron pyrites), and the gold and silver are concentrated into a new, artificial sulphide, or copper matte, containing $1500 and upwards of the precious metals per ton, and this is shipped to Swansea. I will say in passing, that this shipment of an unrefined product, like the similar shipments from Utah and Nevada to San Francisco, Chicago, St. Louis, Newark, New York, and Europe, of crnde argentiferous lead or "base bullion," is not a sign of incomplete metallurgy here, but has a sound business reason. The separation of the precious metals in the West would be more expensive, to begin with ; and then it would necessitate the movement of these metals by express, . - at high rates and risk, to commercial centres or coining mints, while the base metals having no home market, must be shipped and sold at little or no profit. At present, the gold and silver, safely packed, as it were, in the base metals, are transported with safety as ordinary freight; and the base metals probably more than pay cost of shipment and separation. To return to the Black Hawk reverberatories. On a recent occa-

By Gerry Doeksen

The paper deals with three case studies: (a) the handling of wet concentrates (5 to 8 per cent moisture) through feed bins; (b) the handling of the same product in rail cars; and (c) the handling of dry concentrates (less than 0.5 per cent moisture) through feed bins. In each case, the paper discusses the problems of rat-holing. In each of cases (a) and (c), there is a discussion on the consequent extreme variations of feed rates coming from the feeders, making automation of process control difficult to impossible. Currently available bin-flow theory and flow property tests are used as aids in redesigning the bins. The paper concludes with illustrations of the final results after the redesigned hoppers were installed and tested. There is also a discussion on the advantages of the new mass-flow bins on adjacent feeder performance.

Jan 1, 1970

By Robert H. Peters

This Bureau of Mines report describes several significant problems associated with absenteeism among underground coal miners. The vast empirical literature on employee absenteeism is reviewed, and a conceptual model of the factors that cause absenteeism among miners is presented. Portions of this model were empirically tested by performing correlational and multiple regression analyses on data collected from a group of 64 underground coal miners. The results of these tests are presented and discussed.

Jan 1, 1987