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By V. Ushakov, P. Bogdan

Daily production scheduling in a highly dynamic smelter environment has always been a great challenge for the operation management due to a significant amount of uncertainties. Planned and unexpected equipment failures, various energy outages, inaccuracies in flow and mass balancing, manpower availability conflicts and other constraints make the job of daily production planning exceptionally difficult. This paper discusses a general scheduling approach utilized by the production management of the Phelps Dodge Miami Smelter (the Smelter). It also describes logical assumptions and some practical software solutions that have been exploited by the Smelter managers to assist the front line supervisors in dealing with daily planning activities for several years.

Jan 1, 2007

By R. Bonifaz

The Chagres Smelter, part of the Anglo American plc group situated 80 Km north of Santiago in Chile, completed a series of operational improvement in 2005 resulting in an optimum capacity in its operational units. At present the Chagres Smelter has developed an operational strategy which seeks to reduce bottle-necks in the production process. In this way we have managed to lower operational cost, decrease energy consumption and maximize the capacity of the Acid, Oxygen, and Smelting, Converting, Refining and Casting units. A constant application of international benchmarks together with continuous staff improvement and the latest smelter technology have combined to place Chagres among the finest smelting works in the world. In response to environmental challenges, we have studying various options for investment suitable for a profitable business of benefits to both Anglo American and Chile as a whole. The most relevant technical indicators are the figures : Energy consumption less than 6,3 GJ/ton fine copper, Intensity of smelting rate in Flash Smelting unit of 6900 ton of copper concentrate/m2 settler of furnace area and be one of the top five smelter in direct cash cost .

Jan 1, 2007

By S C. Sc, J Young, N Belluz, D Nicholas

The heavy sulfide zone (HSZ) of the Grasberg deposit has the geometry of a funnel and is located at the contact of the mineralised intrusive and the relatively barren sedimentary rock types. The geometry and the rock properties associated with the HSZ plays a significant role in pushback design and sequencing. Most of the HSZ has relatively low strengths which must be considered in slope design and management. This paper presents the open pit mine geotechnical and planning design considerations associated with the HSZ.

Jan 1, 2007

By Jon Y. Kaneshiro, Sean A. Menge, M. Luis Piek, Brian Barker

The Lake Hodges to Olivenhain Pipeline project is part of a 40-megawatt pumped storage project linking two reservoirs as part of the San Diego County Water Authority’s $939 million Emergency Storage Project. Seeking to expedite project completion, the project was advertised as Design-Build, a first for the owner. Awarded to Kiewit Pacific with Parsons as designer, the 1,750m (5,700ft) long, 4.25-m (14 ft) horseshoe tunnel was excavated with conventional drill-and-shoot technique. The mining method was well suited to deal with the shear zones, the very abrasive rock, and 13.3% and19.6% grades. At the apex of the alignment, a 60m (200ft) by 3.6m (12ft) diameter raisebore shaft with surge chamber to protect against pump malfunction was constructed. Upon completion of mining, the tunnel was lined with a 3m (10 ft) diameter high strength steel pipe. Scheduled to come on-line by January 1, 2008, the Lake Hodges to Olivenhain pumped storage project is valued at $108 million, delivering a reliable source of water in emergency situations and electricity-generating capability to meet the growing demands of the San Diego region.

Jan 1, 2007

By S. Dessureault, M. Yildirim

More mining companies are now investing in IT, including updating one of the traditional IT process control tools used in the mining industry: real time in-pit truck allocation control and monitoring systems, or fleet management systems (FMS). These systems have been used to maximize the overall mine production by improving equipment utilization and reducing production costs. Most modern operations monitor the in-pit operations using GPS and wireless communications to produce data. Improvements in bandwidth, sensors, and computing power are causing modern systems to become more complex and generate more data. However, human analysis by simple regression or table generation in spreadsheets of the data is becoming impossible. Data mining solves this data management problem. Data mining finds patterns and relationships in very large data sets. This paper describes the application of modern data mining techniques on truck dispatching systems in a real open pit hard-rock copper mine. The analyses conducted included determining how the trucks performed under particular conditions and allocation systems. The long-term benefits of this work are to identify strengths and improvement opportunities in truck assignment systems and establish the skill sets and IT infrastructure needed in undertaking more complex datadriven technology such as a truck dispatcher trainer.

Jan 1, 2007

By William R. Yernberg

The early part of the decade was marked by world-wide problems and economic difficulties. In 1980, President Jimmy Carter ordered the failed military mission to rescue hostages in the U.S. Embassy in Iran, Mt. Saint Helens, WA erupted killing 60 people and the Soviets and Mujaheddin guerrillas clashed in Afghanistan after the Soviet invasion. Later in the year, Ronald Reagan was elected president, defeating Carter. The first launch of a space shuttle (Columbia) occurred in 1981. Also in 1981, the first IBM-PC’s begin to roll off the lines. In 1982, Argentina invaded the Falkland Islands and Mexico’s economy was in collapse. In 1980, the U.S. unemployment rate stood at 7.1 percent, and by 1982 the rate increased to 9.7 percent. 1980 marked SME’s first full year in its new office building in Littleton, CO. The new facility was dedicated in November 1979. Claude L. Crowley was executive director of SME in 1980 and remained in that position throughout the decade. SME’s membership stood at about 26,000 throughout this period (1980-1982).

Jan 1, 2007

By K. G. Markkola

Since 2005, Compafifa Contractual Minera Candelaria (CCMC) has defined various strategies which aim to optimize the usage of the available energy in each of the SAG grinding circuit modules (SABC-A configuration). For this purpose, the use of larger size balls along with operating with an optimum balls/load ratio has been implemented. Additionally, in the ball mills, the amount of balls in relation to the equipment's usable diameter has been optimized. In the pebble crushing circuit, the percentage of material passing 12 mm (112 in) product has been increased by 15% by: (1) modifying the crusher mantle profile, (2) implementing a strategy for maximizing the power in each crusher, (3) using continuous improvement tools (Lean - Six Sigma), (4) redesigning SAG mills discharge grates, and (5) changing discharge grates in order to control the crusher feed size distribution profile. All these activities have improved plant throughput by 1,000 t/d with no significant capital investment. As part of the energy consumption optimization study, we have considered determining the optimum operational rate of each SAG mill, in relation to the mill liner life and also the improving the control strategy in conventional grinding.

Jan 1, 2007

The Argyle AK1 Pit has been operating and producing over 25 per cent of the worldÆs diamonds by volume for over 20 years. The mining boom in Western Australia is creating upward cost pressures to ArgyleÆs mining operation while the price received for its product remains flat in comparison to many other Western Australian commodities. This incongruity, which when combined with other circumstances such as the pit being close to the end of its mine life, a decline in head grades and a tightening in operational constraints caused by the pitÆs maturity, is causing the leadership team at the mine to utilise innovative strategies in order to ensure that the open pit continues to perform economically until its final closure in late 2010. The strategies that will be discussed in this paper are step change business improvement methods, localisation of the workforce, employment of Aboriginal people and the use of a clear and concise consultation process in order to provide certainty to a workforce working in a pit during boom times where pit closure is imminent.

Jan 1, 2007

By E. R. Bauer

Noise-induced hearing loss (NIHL) continues to be a concern of the mining industry. A new noise standard (30 CFR, Part 62) is aimed at reducing NIHL in mining through engineering and administrative noise controls. However, the difficulty and expense of implementing engineering controls can make administrative controls an attractive alternative for reducing worker noise exposure. Over the last three years, the National Institute for Occupational Safety and Health (NIOSH) has conducted worker noise exposure surveys in underground and surface coal mines and in coal preparation plants. The surveys revealed numerous possible administrative controls and an approach to implementation and analysis. The surveys have shown that worker dosimetry, time-motion studies and equipment noise profiling are important aspects of effectively utilizing administrative controls. A description of the approach for selecting, implementing and evaluating administrative controls and a list of possible administrative controls are reported.

Jan 1, 2007

Solid EnergyÆs project evaluation process utilises a standard staged gate approach, with five levels leading ultimately to project execution (level 6). For a project to progress through each level, specific financial criteria need to be satisfied. Solid Energy primarily use value based (discounted cash flow) metrics to support investment decisions. Within this approach Solid Energy utilise a number risk-based techniques to quantify project uncertainty. This includes the use of risk-based probabilistic analysis using Monte Carlo simulation and probability-based scenario analysis. Figure 1 shows the net present value (NPV) cumulative probability. Project risks are identified through comprehensive risk workshops. The output of these workshops (list of key risks, ranges of uncertainty and probability of occurrence), is quantified within the financial models. Incorporating this risk information on a probabilistic basis allows an investment decision to be made with a robust knowledge of the range of possible project outcomes along with the likelihood (probability) of those outcomes occurring, for example 80 per cent confidence that the project value will be greater than NZ$10 M, 50 per cent confident it will be greater than NZ$50 M and ten per cent confident it will be greater than NZ$70 M. Incorporating risk implicitly into the financial analysis allows the business to easily evaluate/measure projects with different risk profiles. The detailed risk analysis does away with the complexity of arbitrary risk-based hurdle (discount) rates, as projects can be evaluated based on their specific risk characteristics. Whether a project will progress to the next level of investment and ultimately into implementation depends firstly on the value assessment in comparison with the associated risk/uncertainty, and secondly matching this with the businesses appetite for risk. At Solid Energy standard criteria are used for specific project evaluations, but in addition projects are considered on a portfolio or strategic basis also. Solid Energy attempts to maintain a mix of low risk (low value) projects with some high risk (high value) opportunities. The mix of projects must remain in line with the shareholdersÆ risk appetite. One of the keys to a successful investment decision is ensuring that the appropriate information is available to decision-makers so that they may proceed with a comprehensive understanding of the risks and impacts associated with the decision.

Jan 1, 2007

By F. Mendaña

The characteristics of the igneous and metamorphic bedrock, extra-hard and abrasive, of the Guadarrama Tunnels, a bi-tube project of length 28.4 km without any intermediate attack, are first commented upon. Next, a detailed discussion is given of the most relevant aspects of the performance of the four double shield type TBMs. The experience of this leads to various recommendations to be borne in mind in future designs of TBM having to work in rock of similar characteristics.

Jan 1, 2007

Mining in the twenty-first century brings with it a new range of challenges, some unfamiliar to our industry. Skilled staff recruitment and retention is a significant issue. Equipment supply lead times are changing the risk profile under which we operate. And the new landscape of this century demands accountability at all levels while also requiring that we deliver more to our shareholders and our host communities. This paper draws on experiences in Waihi, addresses some of the challenges facing the modern mining industry and suggests some modest mitigation strategies.

Jan 1, 2007

By J Pric, M Fulton, C Xia

A cyanidation study was conducted on a mild refractory gold ore sample from the Central zone of Clarence Stream Property, owned by Freewest Resources Canada, to develop a leaching strategy to extract gold. Gold, at a grade of 8.00 g/t, is present as native gold, electrum and aurostibite. The ore also contains 2.8 per cent pyrrhotite, together with several antimony minerals (0.8 per cent berthierite and gudmundite, 0.18 per cent native antimony and stibnite). It also exhibits weak preg-robbing properties with 0.16 per cent organic carbon. Aurostibite, a gold antimony compound, is particularly known to be insoluble in cyanide solution. The antimony dissolves in cyanide solution to form antimonates, which retards gold dissolution. Industrial practice of extracting gold from aurostibite generally consists of producing a flotation concentrate, which is leached in a pipe reactor at low alkalinity and high oxygen pressure with about 20 g/L cyanide. The proposed new approach is efficient and allows the extraction of gold directly from an ore at atmospheric pressure and a low cyanide concentration at pH 10.5. The effects of grinding, pretreatment, lead nitrate, kerosene and cyanide concentrations have been investigated. The maximum gold extraction obtained on the ore was 87.9 per cent using 800 ppm NaCN, 500 g/t lead nitrate, 30 g/t kerosene, DO 10 ppm and pH 10.5 in 168 hours. The associated cyanide consumption was 1.3 kg/t. The additions of lead nitrate and kerosene increased gold extraction. In comparison to a P80 of 74 ¦m, a P80 of 30 ¦m significantly increased gold extraction. Gold in solid solution in gudmundite and arsenopyrite was believed to be responsible for the unleached fraction until mineralogical analysis of hydroseparation concentrates of leach residues showed that most of the unleached gold occurs as aurostibite, either as locked grains in sulfides/sulfarsenides or as grains with passivation rims of an Au-Sb-O phase. Coarse gold was also found. Gold extraction was not sensitive to cyanide concentration from 250 ppm to 1200 ppm NaCN and high pH was detrimental. Decreasing the cyanide concentration reduced the cyanide consumption to 0.85 kg/t. The removal of coarse gold using a Knelson concentrator and a Mosley table prior to leaching increased the gold extraction to 90.4 per cent (leach residue at 0.77 g/t).

Jan 1, 2007

By E Topal

There are presently no suitable underground mine production scheduling optimisation models available for application to sublevel stope mining. Scheduling underground production for maximum return is therefore still a manual process, which generally involves scheduling production from the next available highest cash flow stope within the operational constraints of the project. In most mining operations, the scheduling problem is too large and complex to guarantee truly optimal results through manual scheduling. This paper reviews some general optimisation studies that have been proposed for underground hard rock mining. Furthermore, an example of a mixed integer programming model is presented for a small conceptual sublevel stoping operation. Comparative results of a schedule generated by a mixed integer programming (MIP) production scheduling model and a manually generated model on a nine stope example is presented. Results indicate that the potential benefits of the MIP production scheduling model for the purpose of maximising NPV are significant. Finally, a new constraint was formulated to limit multiple exposures of fill masses for use in an existing MIP production scheduling model. Testing of the formulation took place on the central stope of the nine stope example, which showed that the formulation performed its task without breaking other operational constraints.

Jan 1, 2007

By Harvey Parker

This is part two of an article on the prominent role that the United States and its industry leaders have played on the International Tunnelling and Underground Space Association (ITA), which represents the underground construction and underground space industries worldwide. The U.S. is officially represented in ITA by UCA of SME. (Part one is in T&UC, June 2007, pp 39-42) Tunnel advances in 1960s and 1970s The 1960s and 1970s were active and productive times for the U.S. tunneling industry. During that time, federal programs, sponsored by the Federal Railroad Administration (FRA), the Office of High Speed Ground Transportation (OHSGT) and the Advanced Research Projects Administration (ARPA), stimulated tunnel research and development. Also, the American Society of Civil Engineers (ASCE) and SME collaborated to create the Underground Construction Research Council (UCRC) and the Rapid Excavation and Tunneling Conference (RETC) series.

Jan 1, 2007

By P. J. Williams, A. R. Foster

Petrographic studies, assay records, and laser ablation-inductively coupled plasma-mass spectrometer (LA-ICP-MS) analyses of major sulfides suggest nearly all of the gold at the Ernest Henry Cu-Au deposit occurs in the form of native gold or electrum (95-65 wt.% Au); sylvanite and dissolved gold in cobaltite, chalcopyrite, and pyrite make only minor contributions. LA-ICP-MS analyses of the gold contents of chalcopyrite gave from 8 to 139 ppb (mean = 56 ppb), more than an order of magnitude lower than those experimentally determined in chalcopyrite in equilibrium with native gold at the estimated mineralization temperatures (350°-450°C). Gold content is more variable in pyrite (1-400 ppb, mean = 77 ppb) and highest in narrow growth zones of a subordinate type of complexly zoned pyrite wherein it is associated with elevated As, Ag, Sn, Sb, Te, and Bi. Deposition of gold-electrum was closely associated with, but preceded some of the chalcopyrite deposition, as indicated by microtextures and lower bulk Au:Cu ratios in late-stage chalcopyrite-rich veins. Gold grains have maximum dimensions from <1 to 50 micrometers, and are heterogeneously distributed with most occurring in microscale clusters. Fifty-five out of 76 grains recorded in polished sections are in contact with both chalcopyrite and pyrite, and many of the rest are in sites where such a relationship could exist in the third dimension. The dominant textural sites are intergrowths with chalcopyrite in microveinlets cutting pyrite, and on faces of pyrite grains in contact with chalcopyrite. Scanning electron microscopy, electron microprobe analysis, and proton induced X-ray emission studies show that pyrite associated with gold includes complexly zoned, weakly zoned, arsenian, and arsenic-poor types. The textures are compatible with the possibility that most gold was deposited electrochemically as native metal on pyrite surfaces. The textural distribution of gold has important metallurgical implications given that the ore processing circuits at Ernest Henry and most other sulfide copper mines are designed to exclude pyrite (and arsenic) from concentrates.

Jan 1, 2007

By Rolf Katzenbach

Construction of drilled shaft foundations with the use of hydraulic oscillators and rotators to install temporary casing over the full depth of the shaft is described. The equipment and techniques were developed in the 1960?s in Germany and full-depth casing is now the predominant method of construction in Europe. Its use in North America is increasing. This paper presents an overview of full-depth casing methods and a summary of available load test data evaluated by the authors to compare the load transfer and capacity performance of shafts installed by various construction methods. Results demonstrate that load transfer and capacity of full-depth casing shafts are equal to or exceed that of shafts constructed by dry or slurry methods and that measured capacities are consistent with generally accepted design equations. The principal advantage of full-depth casing methods over other installation techniques is that the risk of defects in the shaft is minimized. Casing is able to penetrate into the ground under any geologic or groundwater condition when this technique is applied. Potential delays and cost overruns can thus be avoided and a safe, economical foundation element is created.

Jan 1, 2007

By Brendan Reilly, Jon Isaacson, Paul McDermott

Kenny/Shea JV is constructing the water intake tunnel for the new Elm Road Generating Station, a supercritical coal-fired power plant in Oak Creek, Wisconsin, being built by Bechtel Power Corporation. The intake tunnel system consists of a temporary mining shaft, pump house and intake channel riser shafts, and four lakebed intake shafts. An 8.33 m diameter, 2,800 m long TBM mined rock tunnel is being constructed to connect the shafts. The intakes are located 2.4 kilometers offshore in Lake Michigan. The shafts and tunnel are being constructed in glacial tills and Silurian Dolomite. The estimated tunnel completion is December 2007.

Jan 1, 2007

A new approach to strategic planning, the Life of Business Optimisation System (LOBOS) optimises production systems from the scale of stopes in a single mine to an entire business strategy consisting of multiple mines and products competing for capital and processing capacity. LOBOS has optimised cash flow for a wide variety of operations, including large metalliferous or coal mines and as an aid to high-level strategic business optimisation solution to multi-mine/processing/product complexes. This paper discusses the application of optimisation technology to strategic planning with an emphasis on project evaluation with examples on the application of LOBOS to a variety of recent projects.

Jan 1, 2007

By K E. Barns, P J. Sharman, S A. Thomas and

This paper presents the development of a regrind facility design at BHP BillitonÆs Leinster Nickel Operations (LNO) in Western Australia. The recovery opportunity was identified from an analysis of plant operating data together with scanning electron microscope (SEM) measurements on relevant tailings streams from LNO. A laboratory procedure was developed to determine the potential recovery improvement of installing a regrind facility at LNO. The last step in formulating the process flow sheet and defining the process design criteria was to construct and operate a pilot plant, which incorporated four banks of flotation cells and an Xstrata M20 Isa Mill. Pilot plant on/off trials were used to define the expected metallurgical benefit. A prefeasibility engineering design and cost estimate was completed. Following a successful internal business evaluation, a feasibility study is currently underway.

Jan 1, 2007