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By Dr. O’Neil Thomas J., Donald W. Gentry

Introduction “A Western mine is a hole in the ground owned by a liar. . ." -Mark Twain THE CAPITAL INVESTMENT DECISION Decisions pertaining to a firm's proposed capital investments can have vital short- and long-term consequences on the organization's ability to compete, and even survive.Capita1 investment decisions, in general, center around two fundamental activities: (1) allocating capital funds to specific investment projects or assets, and (2) obtaining necessary financing in such proportion as to increase the overall value of the firm. In essence these activities or decisions describe the science of finance (as contrasted with economics). Fimnce has been described in general terms as the study of how a present, known amount of cash is converted into a future, perhaps unknown, amount of cash (Archer, Choate, and Racette, 1979). Fundamental to understanding the science of finance and the capital investment decision process in general are the basic concepts relating to cash flow transactions, time, income generation (markets), expected returns, and risk. The functions of finance may be segregated into three fundamental decisions which a firm must address: (1) the dividend decision, (2) the financing decision, and (3) the investment decision. These decisions are interdependent and their joint impact on the objective of the firm must be considered. This book primarily addresses the concepts and components associated with the investment and financing decisions as they affect the practice of mine valuation. Responsibilities of Management A primary assumption incorporated in this book is that the fundamental objective of any firm is to maximize its value, or wealth of its owners (stock- holders). Here, the term wealth refers to the total current market value of the firm's assets. In the case of corporations, the wealth or value is considered to be represented by the market price of the firm's common stock. The price of the firm's common stock obviously will be affected by its investment, financing, and dividend decisions. Consequently, an optimal combination of these three decisions should maximize the value of the firm to its stockholders. It is important to point out that wealth maximization is a more appropriate and inclusive goal for the firm than profit maximization. Indeed, there is a difference between the two objectives in most situations. For instance, a firm can always raise profits by selling stock and investing the proceeds in treasury bills or certificates of deposit. This type of activity, however, would rarely cause net shareholder wealth

Jan 1, 1984

By Conrad G. C. Douglas, Parris A. Lyew-Ayee, Vincent G. Hill

ABSTRACT Distinct patterns are identified in the associations, distributions, and levels of concentration of the silica minerals, boehmite, aluminous goethite, and phosphate minerals in the bauxite deposits of Jamaica. These result from syngenetic and diagenetic reactions associated with post-bauxitization tectonic and associated activities. Three basic types of bauxite are identified, viz., Jamaica-1 (< 3.0% boehmite), Jamaica-2 (> 3.0% boehmite and 30-80% of the iron as aluminous goethites), and Jamaica-3 (> 3.0% boehmite and > 90% of the iron as aluminous goethites). The Jamaica-1 type has a mean value of < 2% boehmite as A1203, while this level in the Jamaica-2 type is usually about 3.5%, and > 4% in the Jamaica-3 type. Similar discrete associations were found for the species and concentrations of aluminous goethite and phosphate minerals. The process and geological implications of these are discussed.

Jan 1, 1984

By William H. Pomroy

This report describes research leading to the design, prototype fabrication, and successful in-mine proof-of-concept testing of two improved stench fire warning systems for underground noncoal mines. The stench system, widely used in underground noncoal mines to warn of fire or other emergency suffers several serious shortcomings, including the toxicity of the odorant leading to debility in miners; reactivity of the odorant with iron oxide, resulting in unreliable warning because the odor may fade when transported long distances in steel pipe; lack of control over the rate at which agent is released into the air-stream, resulting in some work areas receiving unbearably high stench concentrations and other areas being missed altogether; lack of visual indication of system status, valve positions, or proper system operation; and excessively long stench transit times. In 1979, the Bureau of Mines, U.S. Department of the Interior, began research to upgrade the stench warning system. Two systems were subsequently developed which offer significant advantages over current systems.

Jan 1, 1984

This chapter analyses the parameters influencing initial design of communication systems, for new mines and upgrading existing systems. Paragraph 5.2 outlines those variables that must be taken into account during the design stages of a new wired phone system. Recommended features, general requirements, and how they can be implemented are treated in this section. Paragraph 5.3 describes ways of improving or extending the range of trolley carrier phone systems and pager phone systems already installed in the mine. 5.2 New Phone System Design The task of designing an adequate communication, control, and monitoring system for an underground mine must be addressed on a system basis. In addition to insuring that effective voice communication is established, any new system should take into account present and future requirements of remote control and monitoring functions. Chapter 4 illustrated the drastic savings in response time that can be realized when remote control and monitoring are integrated into the overall communication system. The importance of including control and monitoring in the overall design plan for any system cannot be overemphasized. Because each mine is unique, and thus usually has its own special operating characteristics and communication requirements, there is no such thing as "the one best system" to meet the requirements of all mines. The optimum communication, control, and monitoring system for a mine must be one that has been tailored to meet the special requirements of that particular mine. Factors that must be considered during system design include- a. Type of mine and mining methods (low- or high-seam coal, deep hardrock mine, stope caving, longwall, room and pillar, etc.). b. Maximum number of working sections. c. Expected mine growth rate and eventual maximum size. d. Haulage methods (tracked trolley, diesel, belt, etc.). e. Underground power distribution system (dc, ac, or both). f. Features desired (two-way radio paging, private line capability for emergency use, etc.). g. Redundant or backup systems for use during outages of the normal system. Although no two mines are alike, the following items have been established as the main characteristics desired for any underground communication system: 1. Multiple Communication Paths to Outside--the objective here is to give all telephones a second method of communicating with the surface. 2. Audible Emergency Signaling--the communication system provides the main means of alerting miners during emergencies. The system should include means to broadcast distinct audible signals for emergency signaling. Initiation of these signals should probably be controlled from. a central outside point, such as a surface control room. 3. Emergency Override--provisions should be included to permit any conversation to be overridden with emergency communication. 4. Selective Area Page--as mines grow larger it is apparent that the entire telephone system paging mode need not be activated each time a call is initiated. When the general area of a

Jan 1, 1984

By W. G. Pariseau, C. H. Schmuck, Fei Duan

The Homestake Mine is located in steeply dipping Precambrian metasediaents, an environment common to a number of world class ore bodies. Development of a pronounced plane of schistosity raises a question concerning the importance of anisotropy to the design of vertical crater retreat stopes. Little is known about the actual influence of elastic anisotropy in such -circumstances; even less is known about strength anisotropy. A cautious step- by-step approach was therefore taken towards a numerical assessment of the role of anisotropy in the analysis of stress and stability. The sequence of analyses begins with elementary test problems for computer program checks and proceeds to the analysis of a study stope area between the 6950 and 7100 Levels of the Homestake Mine. Anisotropy (orthotropy) is important at the Homestake Yine. No simple guidelines for evaluating in advance the need for plastic and strength anisotropy in design analysis appear to be forthcoming, ;o that some physical properties testing is necessary where the question is in doubt

Jan 1, 1984

By SME

"Comparison of Secondary Fe-Mn Oxides in Fracture Coating and Heavy-Mineral Concentrates as Sampling Media, Silver City Mining Region, New Mexico," a technical paper, appeared in the Aug. 1983 issue of the magazine. In Table 1, page 1182, the correct sequence of the first five metals in column 1 (Elements) should read: Zn, Pb, Cu, Fe, and Mn under "Central District" and Zn, Fe, Pb, Cu, and Mn under "Pinos Altos District." The published table shows the sequences transposed under the opposite districts. All other columns and sequences read correctly.

Jan 1, 1984

Part of a four-year course in metallurgy, dealing with metallurgical process engineering, was designed for students to acquire knowledge and skill from physical science, metallurgy, process engineering, and social science. Principles of education, and guidelines obtained from a study of professional practice, indicated that students may learn effectively through a planned sequence of problem-solving exercises based on the diverse functions of metallurgists in industry. The more important characteristics of the curriculum and a few illustrations of the problems are included. An outline is given of the current procedures used to develop parts of the curriculum, and of the students&apos; diffic- ulties and achievements.

Jan 1, 1984

By Kellett KR

Gold Mining at the Lancefield Mine was commenced initially in 1897 and continued intermittently through to 1956 when rising costs and mine cave-in forced closure. The mine was redeveloped in 1981 and a new-oxide treatment plant commissioned, followed by a new refractory treatment plant in late 1982. Both these treatment plants are located within the Windarra Nickel Project plant area.The refractory ore is processed by fluidised bed roasting of flotation concentrates. This is carried out in two series connected reactors to maximise arsenic and sulphur eliminations and to minimise reagent consumption. For gold recovery the zinc precipitation process was initially used, to be later replaced by carbon-in-pulp.

Jan 1, 1984

By C. M. Brinckerhoff

Much has been written in the mining technical magazines about the caving system. Many of these articles were published in the Transactions of the American Institute of Mining Engineers prior to World War II. In recent years little has been written on mining methods or on the detailed planning always required. Block caving had primarily been used to mine deep copper ores in Africa, the United States and in Chile, although other ores had been mined by this same system. Asbestos ore had been caved in Canada, tin ore in Bolivia, molybdenum ore in Colorado, iron ore in Wyoming and Sweden, and limestone in California.

Jan 1, 1984

By Waddell S

A new procedure has been developed for the direct determination of metals loaded on activated carbon. It involves preparation of a suspension of the powdered carbon in water, followed by direct sampling of the suspension with a micropipette,and analyses by atomic absorption spectroscopy using carbon rod atomization. Advantages of the method include the simplicity of sample preparation and the ability to provide a complete metal analysis in 1 - 2 hours. This enables carbon-in-pulp operators to respond quickly to changes in plant efficiency arising from carbon fouling. The successful application of the method has been demonstrated for gold, copper, nickel and iron. Other elements to be surveyed include calcium, magnesium and silicon.

Jan 1, 1984

By Kazis JV

The beneficiation of fine coal has been the major problem facing the coal preparation engineer in recent years. The influence of clay slime, particle size and reagent type are but a few of the many factors that affect the recovery of fine coal. Laboratory test work has indicated that substantial increases in recovery could be achieved by improvements in technology in all these areas. Unfortunately, in most cases this technology has not carried through to the operating plants.

Jan 1, 1984

By John D. Nelson

Unprotected uranium mill tailings impoundments can pose a significant risk to nearby inhabitants and the surrounding environment in the event of a prolonged or catastrophic release of contaminants contained in the tailings. As a result of this potential, reclamation plans for such facilities must include engineering designs to protect against disruption of the tailings and the potential release of radioactive materials. The goals for such engineering designs should be to provide overall site stability for long-term periods with no need for planned ongoing maintenance and to provide a repository for the tailings that will not place a burden on future generations. Although the goal is to provide a maintenance-free system that does not require monitoring, it must be recognized that some period of surveillance would be reasonable. The surveillance period could be relatively short and only needs to assure with reasonable confidence that the reclamation scheme that was implemented is functioning adequately. An investigation was conducted by Nelson, Volpe, Wardwell, Schumm and Staub (1983) entitled Design Considerations for Long-Term Stabilization of Uranium Mill Tailings Impoundments (NUREG/CR-3397). This report assesses the degree of confidence with which long-term reclamation plans can be expected to remain effective over specific periods of time, and to assess the additional effort required to extend the design period from one long-term period to a longer one. This paper presents a summary of that investigation and discusses some of the important conclusions.

Jan 1, 1984

By Ormsby W, Peters M, Van Gils H, Kehprens P, De Boorder H

The northern margin of the Arunta Block is characterized by a metasedimentary and volcanic sequence of lower metamorphic grade than that of the central Arunta Block. Whereas the Harts Ranges have granulite to amphibolite metamor- phic grades, the northern margin only reached greenschist to lower amphibolite facies. Most of the high grade area of the central Arunta Block appears to be unprospective, but the lower grade marginal fringe contains most mineral pros- pects to name a few: Barrow Creek, Molyhill and the Jervois Mine. Numerous smaller prospects occur in this marginal zone. Four major lithostratigraphic units can be recognized in the Jervois Mine area: 1. Gneissic Suite consisting of granitic and rhyolitic gneisses which are characterized by a distinct intersection lineation. 2. Metasedimentary Suite of cordierite- biotite schists and chlorite-biotite schists. 3. Mine Sequence, consisting of spotted schists with andalusite and cordierite, quartz- sericite-feldspar schists with distinct rhyo- litic remnants and quartz-sericite-feldspar schists which contain the lode horizons:

Jan 1, 1984

By Colin M. Spence

The Federation of Societies of Professional Engineers (FSPE), in collaboration with the Habitat Council and the Environmental Planning Professions Interdisciplinary Committee (EPPIC), held a Symposium on &apos;Engineering our Environment&apos; at the Rand Afrikaans University on 5th June, 1984, under the chairmanship of Mr Colin M. Spence, Vice-President, to commemorate World Environment Day.

Jan 1, 1984

By C. H. Pitt

A jet slurry apparatus has been constructed to test corrosive/erosive wear properties of grinding ball metal. Plain high carbon steel heat treated to a hardness of about 60 RC was used. Slurries of quartz and chalcopyrite ore concentrate were used as the jetting media. Weight loss due to pure corrosion was determined by the linear polarization technique and weight loss due to pure erosion was determined by jetting while cathodically protecting the sample. By comparing the total weight loss with the sum of the weight losses from pure corrosion and pure errosion it was found that there was a synergistic effect between corrosion and erosive wear. Erosive wear rates are given as a function of pH and mineral type.

Jan 1, 1984

By Madan M. Singh

It is estimated that through 1975, there were 1.69x109 m2 (418 000 acres) of urban land threatened by potential subsidence due to mining with a value of over $12 billion (19;3 dollars; USBM, 1979). With increased coal production to meet the energy needs of the nation, both these figures may be expected to increase. Hence greater attention to controlling surface damage due to subsidence is merited. In fact, the Surface `lining Control and Reclamation Act of 1977 (SMCRA) (Public Law 95-87) mandates that underground coal mining operators "adopt measures consistent with known technology in order to prevent subsidence causing material damage to the extent technologically and economically feasible, maximize mine stability, and maintain the value and reasonably foreseeable use of such surface lands, ..." The term "subsidence," as used in this paper, implies the total phenomenon of surface effects associated with the mining of minerals, and not only vertical displacement of the surface as is sometimes inferred in the literature.

Jan 1, 1984

By C. Y. Chen

Public Law 95-87, the Surface Mining Control and Reclamation Act of 1977 (SMCRA), Section 516 (b), requires the underground coal mining operator to "adopt measures consistent with known technology in order to prevent subsidence cawing material damage to the extent technologically and economically feasible, maximize mine stability, and maintain the value and reasonably foreseeable we of such surface lands, except in those instances where the mining technology wed requires planned subsidence in a predictable and controlled manner.. . ." Congress also directed the Secretary of the Interior to promulgate regulations to implement the law. As a result, the control of subsidence from underground coal mining to minimize surface damage has become the mandate of a federal law. This paper discusses the mechanics of subsidence and the effects of subsidence on ground features. This paper also summarizes some measures used to minimize the possibility of damage to structures as a result of subsidence due to underground coal mining.

Jan 1, 1984

By M. G. Schuerger

The United States Steel Mining Company, Inc., (USM) Lynch District, operated the No. 37 Mine in the Harlan coal seam, Harlan County, Kentucky, from 19&apos;2 until its sale to Arch of Kentucky in 1984. Overburden depth varied from 400 to 2000 feet and mining height varied from 8 to 12 feet. In 1981, because of deep overburden, high seam height, and previous pillar stability problems, U. S. Steel Research and the Lynch Mining District entered into a joint project to measure longwall pillar stress. Eight gateroad pillars were instrumented with a total of 86 vibrating-wire stressmeters under overburden depths varying from 500 to 1550 feet. Stress-increase measurements were taken during: (1) pillar development, (2) retreat of longwall panel No. 1, and (3) retreat of longwall panel No. 2. Total average pillar stress was approximately three times the pre-mining stress with total stress at an individual meter reading 5.5 times the pre-mining stress. When maximum, measured average pillar stress was compared to pillar strength predicted by several popular pillar design methods, the pillars were found to be stronger than predicted. This paper will summarize the pillar instrumentation program and present the results. Stress distributions, average measured pillar stress, and comparison of measured pillar stress to predicted pillar strength by several design methods will be given.

Jan 1, 1984

By E. C. Robertson

Observations of faults in mines, at outcrops, and in the laboratory lead to the conclusion that the displacement d of a fault increases irregularly but monotonically with the thickness t of its associated fault gouge and breccia, not including adjacent undisplaced jointed rock. The general trend of data points has a slope d/t of about 100. (The correlation coefficient of a logarithmic regression line is r = 0.94.) The rather wide scatter of the points can be accounted for by inaccuracies in measurement of d and t, and by variation in the conditions at faulting of confining pressure, rock type, water pressure, and deformation history. Limestone is an exception to the relation. Until the data can be corrected and refined, the relation should be used only qualitatively for estimating displacement of ore bodies in mines. The suggested relation is based on observations of 48 steeply- dipping normal and reverse faults and nine small flat-dipping thrust faults, with displacement less than 5 km (3 miles). It does not apply to large strike-slip and low-angle overthrust faults because their large displacements are poorly determined and their breccia thicknesses are widely variable.

Jan 1, 1984

By E. K. Albert

Computer oriented simulation techniques can be effective in the design and analysis of complex mining systems. In fact, a number of computer software products are available for mine systems simulation. While providing a useful tool for the investigation of mine planning problems, the availability of graphic output was limited or non-existent. Computer graphics is a natural extension of mine simulation methods and provides a more dramatic level of understanding and interface with an engineer. With today&apos;s high cost of venture development, the need for an easy to use but complete systems model which includes the major elements of mine planning with an interactive graphics interface has never been more apparent. In this paper, the underlying philosophy of design of an interactive interface to a complete surface mining simulation model is described. The basic structures of the surface mining system and the simulation model are discussed. The methods and algorithms used to implement the various subsystems are presented. Practical considerations of the design of displays and user interaction are illustrated, especially as they apply to the application of the package by a mining engineer. A simple example is provided to demonstrate the concepts embodied in the model and to show how a simulation is built from mine data.

Jan 1, 1984