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By Robert L. Russell

Production at Freeport Indonesia's Ertsberg open pit copper-gold mine started in 1972 at a rate of 7.5 kt/d (8270 stpd). Mill throughput remained at that rate for several years until the discovery of the Ertsberg East (GBT) ore body. This discovery prompted three succes¬sive expansion stages from 1981 to 1988 that boosted production to 20 kt/d (22,000 stpd). In 1988, the discovery of the huge Grasberg porphyry copper deposit launched an era of much larger expansions. The first of these was the installation of a fourth primary mill in 1989 that increased throughput to 32 kt/d (35,270 stpd). That was followed by an expansion of the crushing and screening plant and in 1991 the addition of a new south concentrator to bring production to 57 kt/d (62,830 stpd). The addition of a primary ball mill and the changeout of the original Denver flotation cells in 1993 brought production to its current level of 66 kt/d (72,750 stpd).

Jan 1, 1994

By Lars Olaf Höglund

MiMi has been set up to be i) visionary, ii) strategic and iii) long-term. The planning as well as the executive phases involves industry, academia and authorities in close co-operation. MiMi focuses on improved, economically efficient management of mining waste, a challenge that requires combined and integrated research efforts across discipline boundaries. The MiMi programme is financed by the Swedish Foundation for Strategic Environmental Research (MISTRA) with support from the mining industry. The first programme phase covers the period 1997 - 2000, with intentions for additional phases. Planning, experience and results from the first programme period are highlighted. INTRODUCTION Most of the mining activities in Sweden takes place in the No

Jan 1, 2000

By John A. Folinsbee

Placer Dome Canada owns and operates the Campbell mine and mill at Balmertown, in the north western corner of Ontario. The mine operates at 1.3 kt/d (1,500 stpd). It produced more than 9.3 t/a (300,000 oz/year) of gold during the last three years. Changes to the gravity concentration circuit have resulted in a 10% to 15% increase in gravity recovery. The mill head grade at the Campbell Mill is relatively high, averaging 18.5 g/t (0.54 oz/st) over the total reserve tonnage. During the past several years, the head grade was averaging close to 20 g/t (0.6 oz/st). Before 1994, gravity concentration was achieved by using a combination of conventional mineral jigs and tables. Jig concentrates were upgraded on shaking tables to produce a concentrate, which was refined to bullion. In May 1994, management decided to buy two Knelson CD 760-mm (30-in.) concentrators. The objective was to replace the existing jigs and increase gravity gold recovery by up to 15%. Gravity recovery with jigs averaged between 30% to 35%. Gravity recovery was anticipated to increase to about 50% with the Knelsons.

Jan 1, 1997

By Hassan El-Shall, Rosana M. Macedo Borges, Ponisseril Somasundaran, Regis Stana, José Renato B. Lima, Patrick Zhang

The phosphate fertilizer industry is a large activity in Brazil because the soil has a phosphorous deficiency. The phosphoric acid that is produced is extensively used in the production of fertilizer. It is produced by reacting phosphate carbonaceous rock with sulfuric acid, generating phosphogypsum as a by-product. In 1991, there were about 29 million tons of phosphogypsum stored in Brazil. This has increased to an estimated 280 million tons in 2001. While the phosphogypsum is used in the cement industry and also in agriculture, the quantity used is much less than the production rate, and the stockpiles are still increasing. The radioactivity of this waste may not allow its continued use as a construction material and some other uses. However, Brazilian phosphogypsum contains a smaller quantity of radioactive materials than is reported for phosphate rocks from other countries. One important reason is the geological origin of the Brazilian apatite. All the large deposits being currently mined are igneous, not sedimentary, as is the majority of the phosphate rock produced around the world. An extensive study is being conducted to characterize the phosphogypsum generated in two production facilities in Sao Paulo state to develop safe uses for this waste and determine the environmental impact caused by the present method of phosphogypsum disposal.

Jan 1, 2002

By Robert E. McIvor

The “Functional Performance Equation for Ball Milling” was first presented in 1988. It now has been used successfully in more than a dozen mineral processing plants. This powerful, yet simple tool provides a new level of understanding of closed circuit grinding. It shows how grinding circuit efficiency is in reality comprised of two distinct efficiencies. It demonstrates how circuit production rate is related, collectively, to these two efficiencies, mill energy input, and the grindability of the ore. It links circuit performance to design and operating variables that can be manipulated, and creates an effective strategy for making plant improvements. This paper covers the derivation and industrial validation of this equation. As part of an engineering and management system that also incorporates suitable metrics and process control, other operators can now use this tool to make improvements and to manage the performance of their grinding operations with clarity and confidence.

Jan 1, 2005

By N. Edmonson

During the last 30 years, a dramatic increase in the supply of byproduct sulfur substantially reduced the share of the market held by Frasch-mined (non-by-product) sulfur in North America. Even though Canadian sulfur production is not discretionary, the geographic remoteness from the large US markets and the high transportation costs associated with delivering sulfur to those markets has meant that Canadian producers act like discretionary producers in many important ways. They have effectively replaced the US Frasch producers as the cost-marginal sulfur source to large US markets. Implications of this change in market structure include more volatile sulfur prices and longer sulfur price recessions.

Jan 1, 1997

By B. Bergmark, O. Guyot, A. Broussaud, C. Bouché

The Boliden Aitik concentrator in Sweden processes 2,000 t/h (2,200 stph) of low-grade copper ore. The plant consists of five grinding lines that feed four bulk-flotation banks with a scavenger-concentrate regrind mill und a column cleaner circuit with a regrind mill. The authors installed a model-based expert optimizing control system to maximize copper recovery in the bulk-flotation circuit while maintaining an appropriate copper grude in the cleaner feed. The optimizing control system uses on-line assays and calculates and implements set points for cell pulp levels, air rates and reagent- addition rates. It combines the power of a dynamic population-balance model that estimates mineral liberation in each stream, an optimizer that computes appropriate set points and a rule-based module that implements the strategy. The benefits have been evaluated over a period of three months. The model-based expert optimizing control system generates a measurable increase in copper recovery, around 0.5%, and an optimized bulk-concentrate grade. The need to maintain the optimizing control system and other practical aspects are discussed.

Jan 1, 2000

The molecular form of aliphatic amines precipitates in alkaline solutions when the amine solubility limit is exceeded and forms a typical colloidal system. The zones of mines precipitation and micellization are defined and it is shown that the appearance of a colloidal system in a certain pH range is a unique feature that makes weak electrolyte type surfactants differ from strong electrolytes. The formation of iono-molecular complexes reported in the literature is shown to be a pre-precipitation phenomenon. The zeta potential - pH curves for minerals and bubbles in the presence of amines in the pH range where the amine forms a colloidal precipitate are entirely determined by the precipitate. The pH dependence of the flotation of certain minerals using amines is discussed in the light of these findings.

Jan 1, 1989

By John K. Adams

Phosphorus may be incorporated into sedimentary rocks in at least four different ways: (1) by the accumulation of detrital mineral fragments, (2) by the accumulation of phosphatic organic debris, (3) by diagenesis and (4) perhaps by the primary precipitation of calcium phosphate. Based-on the petrographic examination of Cretaceous and Tertiary sediments from the northern and central parts of the Atlantic Coastal Plain, Diagenesis is the most important of these mechanisms. Both syndiagenesis and epidiagenesis are required to explain the origin of all the diagenetic phosphate mineral species which occur in the northern and central parts of the coastal plain. Syndiagenesis produced much of the coastal plain's apatite. It was operative below the sediment-water interface while the substrate was being compacted. Compaction forced pore waters, which were enriched in phosphate by the decomposition of organic matter, upward through calcareous sediments. The PO43- radicle replaced the CO23- and calcareous nodules, pellets and shell fragments were converted to apatite. Epidiagenetic reactions occurred in the subaerial environment where downward percolating meteoric waters carried phosphate in solution to cites where cation activity was sufficiently high to form new minerals. Vivianite may form where ferrous iron is available and wavellite and variscite may form in the presence of aluminum rich minerals. Textural evidence suggests that many of the reactions were repeated. The present day appearance of apatite, vivianite, wavellite and variscite in the coastal plain may represent several generations of diagenesis.

Jan 1, 1972

By Mark E. Smith, Gerald J. Gierszewski

Introduction The purpose of this paper is to present a procedure used by the authors for evaluating and designing soil liner systems. This method is particularly valuable in evaluating various treatment schemes for chemically amended soil liners. A tabulation of laboratory test results on various soil types are presented to quantify the effectiveness of certain treatments. A typical liner design program includes developing and proving soil borrow sources, designing the cross-section of the liner system, developing construction specifications, and providing construction services to ensure the intended product is achieved. Material Source Development The first step in designing a soil liner is to identify and evaluate suitable borrow sources within an economical haulage range. This is best done in a two step approach: a reconnaissance level investigation to identify target areas and a detailed evaluation of those targets. Reconnaissance: The goal of the preliminary investigation is to locate potential borrow sources for liner quality soils. This includes all natural materials which can be compacted, chemically treated, or otherwise amended to yield an installed permeability at or below some target value. This requires utilization of all available data sources: Soil Conservation Service, BLM, aerial photos, USGS geologic maps, and project geologist records. The goal at this stage is to locate shallow deposits of favorable soil types. The Unified Soil Classification System provides an excellent first pass grouping. Clays, clayey sands and silts are the most favorable soil types, although silty sands and occasionally clayey gravels can make excellent liners, and are often amenable to chemical modification. The lowest permeabilities are generally achieved with CH, CL and MH soils. Once preliminary targets have been identified using visual examination, laboratory classification tests should be performed to further refine the selection. Testing at this stage should include gradation, plasticity and hydrometer analyses. Additionally, "preg-rob" testing should be done as early as practical. Preg-rob is a phenomenon where gold or silver ions in solution associate with the clay, or other, minerals. When this occurs, a portion of the gold or silver leached from the ore is actually tied-up by the clay and thus a reduces recovery. Testing for this consists of agitating a small sample of the soil in a solution containing dissolved gold or silver, preferably of similar chemical make-up as the solution which will contact the actual liner. The solution and soil are assayed before and after agitation to determine loss to the clay. A reliable estimate of the hydraulic conductivity, commonly referred to as permeability, can be developed from the D10 value by the use of Hezen's formula: K = 100 (D1012 This relationship is limited to soils where the finer particles do not move due to the force of flowing water (i.e.: "hydrodynamic stabilitym)(1). Additionally, the effect of platty particles on permeability is not as predictable as the effect of equidimensional particles. D10 is the sieve opening size at which 10% of the material is finer. Plasticity is also important from several standpoints. Constructability is directly related to plasticity. Very plastic clays and non-plastic silts both tend to be difficult soils, while medium plastic clays and clayey sands are generally very desirable. Post construction performance is also related to plasticity (e.g. swelling, shrinkage cracking, frost heave, etc.). Additionally, low plasticity silts and silty sands generally do not respond well to chemical amendment. Source Development: The result of the reconnaissance evaluation should be an estimate of the relative probability of developing a suitable borrow source within an economical haul distance. Of course, "economical distance" depends on the degree of handling and treatment the borrow material requires, as well as the cost of synthetic alternatives. The purpose of the detailed investigation is to prove out quantity and quality of material sources, and determine design parameters such as degree of compaction, mixing, treatment and thickness of liner. The emphasis of the testing program should be permeability and strength. Strength becomes increasingly important as the slope of the liner and the height of the heap increase. Permeability testing should evaluate the effects of compaction, water content, mixing and chemical treatment where appropriate. The effects compaction and water content during compaction have on

Jan 1, 1987

By N. D. Jagger, I. M. Arbuthnot

Introduction Over the last five years, a large number of small- to medium-sized carbon-in-pulp treatment plants have been built in Australia, most designed to treat between 250,000 t/a and 1.5 Mt/a of ore. Because of the limited capital resources and tight cash-flow positions of these relatively small mining companies, the primary requirement was often to get a plant built and operating in a short period of time and at minimal capital cost. Therefore, since the inclusion of both pre-leach and tailings thickeners represents an obvious and significant capital cost, most of these plants were built without thickeners or even detailed, cost-benefit analyses on their inclusion. In some cases, the increasing use of High Rate Thickeners (HRTs) in the mineral processing industries has, however, resulted in a reassessment, because of their considerably lower cost. This reassessment was triggered primarily by the need to conserve water in arid mining areas where borefields are costly to install and water is limited. With the startup and operation of these installations, the resulting significant savings in cyanide consumption has been recognized, in many situations, as a primary justification for the installation of HRTs. Solution balances Degradation of cyanide occurs in the tailings water discharge to slime dams. The degree of degradation (cyanide loss) in the water recovered depends on a number of factors, but it is usually assumed to be about 90%. The most important mechanisms of CN loss are through HCN losses and oxidation by oxygen in the air, which also assists in the hydrolysis of CN. These mechanisms are supported by the large dam surface area and the long retention time of the tailings water in the dam. By thickening the CIP tailings at the plant and recovering as much tailings water as immediately possible, these losses are avoided. The retention time in an HRT is less than three hours, and the surface area is relatively small. Therefore, CN losses are negligible, which is not necessarily the case in conventionally-sized thickeners. Fig. I shows a block diagram of a 100-t/h gold plant without a thickener. In this example, 50% of the tailings water pumped to the tailings dam is recovered, and the CN concentration of the returned water is 10% of the tailings CN concentration of 150 ppm. Fig. 2 represents a plant with an HRT on tailings, thickening to 55% w/w solids. In this case, the thickened tailings are pumped to the dam, and 25% of the contained water is recovered. The recovered water and the mill make-up water are not sent directly to the mill; instead, they are added to the thickener feed and mixed with it prior to thickening. By doing this, the tailings are effectively washed, and the additional cyanide is recovered. Solution balances over these two circuits show cyanide recoveries of 5% and 65%, respectively. Thus, the thickener use increases cyanide recovery by 60%. Fig. 3 shows a two-stage HRT circuit in a countercurrent decantation (CCD) configuration. In this example, an additional 13% of cyanide is recovered through the use of the second-stage unit. This configuration can be justified when residual cyanide levels are high. Capital and operating costs - Case study 1 Illustrative cost figures are based on a CIP tailings thickener installed, in early 1988, as part of Dominion Mining's treatment plant at Paddy's Flat near Meekatharra. (All costs within this paper, unless stated otherwise, are in Australian dollars.) [Assumptions: Feed rate 150 t/h Ore moisture content 5% Leach density 40% solids Underflow density 55% solids Residual cyanide in tailings 150 g/m3 Flocculant dosage 15 g/t Consumable costs: Water $ 0.40/m3 Cyanide$ 2.00/kg Flocculant$ 4.50/kg Power$ 0.12/kWh Length of tailings pipeline2,500 m Capital costs of the major items involved in the thickener installation are given below: Thickener unit, 15-m diam $ 230,000 Water return pumps 12,000 Water recirculation pumps 28,000 Feed box 5,000 Flocculant make-up system 18,000 Flocculant storage tank and dosing pumps 11,000 Piping and valves 85,000 Electrics and instruments 47,000 Civil works 29,000 Installation 69,000 Total cost$ 534,000] Savings in capital costs that can be attributed to the

Jan 1, 1993

By I. Nishkov, L. Alexandrova

The kinetics of froth flotation and the three-phase contact (TPC) parameters are studied at temperatures varying from 20°C to 40°C. The material floated consists of glass spheres and a quartz particles with various diameters. Dodecylamine hydrocloride (DDAHCI) is used as a collector. The equilibrium three-phase contact angle is measured with a microscope technique using the modified Mingins-Scheludko method. Using a Wilhelmy method, the temperature effect on the surface tension of the DDAHCI solution is determined. The formation of the thin film on a polished plate of vitreous silica and the expansion of TPC is monitored by means of a metallographic microscope and recorded on a attached camera at different temperatures. The experimental data show an intensification of the flotation kinetics at 30 and 40°C in the case of small particles. Such an intensification is not observed with the larger particles. The cause for intensification of the flotation kinetics is sought for in the dependence of the TPC rate of expansion and induction time on temperature.

Jan 1, 1995

By Gunnar Nord, Per-Anders Persson, Duri Prader

The paper gives a short resumé of the findings of the joint US - Swedish "Mechanical Boring (MB) or Drill and Blast Tunneling (DB) ? Workshop" in Stockholm December 1976. New developments and trends in both MB and DB techniques in Europe since 1976 are described, and information is given on some interesting new projects. Differences in contracting principles between the US and Europe lead to different practices for preinvestigations, design, excavation and arbitration and legal affairs. It is shown that this often leads to a higher cost in the US than in Europe for similar excavation jobs. A typical US tunnel job also has more men on the site than a similar job in Europe. This adds to the cost difference and is only partly balanced by a slightly higher rate of excavation in the US. A comparison is made between two quantitative methods of predicting MB penetration rates. These are in reasonable agreement. A probable future development in machine design is an increase in cutter load towards perhaps 25 tons per disc where the tunnel diameter is large enough to house the machine size dictated by the size of the very large electric motors required. Recent European developments in drill and blast technique include improved methods for cautious blasting, precision hydraulic drilling of small diameter holes, and non-electric interval blasting techniques. These developments still keep the drill and blast method ahead of mechanical boring costwise for tunnels in igneous rock whereas for most sedimentary materials mechanical boring has a lead, particularly for long tunnels.

Jan 1, 1979

The 2014 George A. Fox Conference at the Graduate Center, City University of New York in New York City was presented under the theme, ?21st Century Challenges for the Tunneling Industry. Bruce Grewcock, chief executive officer and president of Peter Kiewit Sons? Inc., opened the conference with a keynote address in which he set the tone for the rest of the day by touching on the many challenges the industry is facing, which are plentiful and complex. Covering the breadth of the industry, he spoke about everything from the technical challenges that come from working beneath the streets of some of the most densely populated regions in the world to the challenges that come from working with the people who live in those areas. ?My observation is that we, as an industry, are being asked to put structures in places where they are needed, but are complex environments to work in,? said Grewcock. ?We work in an industry that relies on some of the most technically challenging engineering in the world, and when we are done with a project, we cover it up and no one ever sees it.? Despite these issues, Grewcock said that, in his opinion, the biggest challenge the industry is facing is that of people; more precisely, where to find the next batch of people. Looking out at the conference-record crowd of more than 400 registered attendees, Grewcock quipped that he saw plenty of gray beards and asked aloud, ?Where will we find, educate and train the people to tackle the issues that this industry will face in the future??

Mar 1, 2014

By R. K. Mehta

An electrochemical coal oxidation model involving heterogeneous kinetics is presented. This model was tested by collecting current transient data on three coals assaying different ash content under varying operating conditions such as particle size, temperature, and % solids. In all cases, the model fitted the data very satisfactorily. Three intrinsic rate constants, namely mass transfer coefficient of Fe(II) Ions diffusing from solution to the anode (kma), mass transfer coefficient of Fe(II) Ions diffusing from solution to the coal surface (kmc), and chemical rate constant for coal oxidation with respect to Fe(III) at coal surface (k), were calculated. It was interesting to note that in this system, the mass transfer at anode was as important as the chemical reaction at the coal surface. The validity of this model was further demonstrated through a comparison of the activation energy of coal oxidation: firstly, by utilizing calculated chemical rate constant and assuming Arrhenius' type of relationship: secondly, by utilizing conventional approach using limiting current values. The comparison revealed that agreement was quite close. This kinetic analysis is useful because such a model can be used in predicting the intrinsic rate constants so that the relative importance of mass transport can be rationally analyzed.

Jan 1, 1991

By J. Patrick Powers

In tunneling through water-bearing formations, the expense of controlling the water can have a major impact on overall project cost. The author has seen the cost of an eight-foot, finished sewer tunnel rise from under $500 per foot to over $1,000 when a water problem, anticipated as modest, became severe. There is need for greater professionalism in the approach to groundwater control. The days of the forked stick should be behind us. The basic technology exists. Its application is not yet widespread. This paper discusses predrainage; that is, the lowering of water in advance of tunnel excavation. Both free air and compressed air tunnels are considered. Examples from recent tunnel projects are described. SPECIAL NATURE OF TUNNEL DEWATERING Tunneling is unlike other excavations below the water table in a number of significant ways. The tunnel excavation is always on the critical path; if production slows or stops, there is no other work for the heading crews, no other work to carry the cost of service crews and job overhead. The dewatering commitment must be made well in advance. Construction of wells, and pumping down take time. After the heading reaches a trouble area, time is not available

Jan 1, 1997

By Bruce K. Cantrell, Stephen W. Stein, Kenneth L. Williams, David Hassel, Harvey Patashnick

In June 1992, the Mine Safety and Health Administration (MSHA) published the 'Report of the Coal Mine Respirable Dust Task Group; Review of the Program to Control Respirable Coal Mine Dust in the United States." As one of its recommendations, the report called for the accelerated development of two mine dust monitors: (1) a fixed-site monitor capable of providing continuous information on dust levels to the miner, mine operator, and to MSHA, if necessary, and (2) a personal sampling device capable of providing both a short-term personal exposure measurement as well as a full-shift measurement. In response to this recommendation, the National Institute for Occupational Safety and Health (NIOSH), Pittsburgh Research Center, initiated the development of a fixed-site machine-mounted continuous respirable dust monitor. The technology chosen for monitor development is the Rupprecht and Patashnick Co., Inc. tapered element oscillating microbalance. Laboratory and in- mine tests have indicated that, with modification, this sensor can meet the humidity and vibration requirements for underground coal mine use. NIOSH is continuing that effort by developing prototypes of a continuous dust monitor based on this technology. These prototypes are being evaluated in underground coal mines as they become available. This effort, conducted as a joint venture with MSHA, is nearing completion with every promise of success. The immediate benefit of this effort will be to researchers, regulatory personnel, and mine personnel, by permitting evaluation of specific mining practices to see which expose mine workers to excessive dust levels. Using this information, mine personnel can optimize mining procedures to reduce dust exposure. MSHA and the operators will also be able to use the dust concentration data to judge whether dust plan parameters are adequate to continuously maintaining environmental dust levels below the applicable standard. The second development recommended by the Dust Task Group was a person-wearable version of the continuous dust monitor. It will be a monitoring system designed to provide a measurement of worker exposure to respirable dust, both during and at the end of the shift.

Jan 1, 1997

By Bastiawarman Rifki, Nugraha Nico, Priatna Anton

The Deep Mill Level Zone (DMLZ) is one of the underground mines operated by PT Freeport Indonesia (PTFI). DMLZ is located approximately 1,500 m below ground level, where dominant rock types are skarn and diorite. The DMLZ mine and layout was designed based on the previous mine located above ground, the Deep Ore Zone (DOZ). The DOZ mine, located approximately 1,000 m below ground level, was a proven success, with a maximum capacity of 80K tonnes per day. During the production ramp up, which started in 2015, the DMLZ experienced several seismic events. The most significant event occurred in January 2018 with a recorded magnitude of more than 2.0 Mw, which resulted in a 14-month delay of the undercutting until March 2019. The significant event in January 2018 required the DMLZ to apply several adjustments related to the mining plan to help ensure it could continue development and achieve production target safely. This paper will describe the changes in the DMLZ mine plan as a response to the seismic activity at the mine, the reason behind the decisions being made to change the mine plan and strategy, as well as strengths and weaknesses between the previous plan compared with the new plan.

Apr 26, 2022

By Y. Gonzalez

The reaction kinetics of sulfuric acid leaching of brass foundry flue dusts were studied. As received flue dusts were separated into two size fractions, a coarse fraction (median size 103.5 microns) and a fine fraction (median size 3.4 microns). Experiments were performed on both fractions al-though most results are reported for the coarse fraction. Leaching experiments were conducted in a stirred reactor to determine those factors which govern the kinetic response of the sys-tem. The kinetics were followed by determining the increase in the concentration of dissolved copper with time. The effects of temperature, concentration and oxygen partial pressure on the rate of copper dissolution were examined. In addition, reaction residues were examined by SEM, EDAX and X-ray analysis. An activation energy of 4.8 kcal/mole (20.08 kJ/mole) was calculated. The rate was found to be significantly dependent on oxygen partial pressure and acid concentration. The order of the reaction with respect to oxygen partial pressure and hydrogen ion concentration was approximately 1.50 and 0.37, respectively. Results indicate that the dissolution reaction is limited by diffusion and can be described by the following mathematical expression where ~ is fraction of copper extracted in time t

Jan 1, 1988

By Deepak Malhotra, William F. Riggs, Edward C. Dowling

INTRODUCTION Mining companies are In the business of making an acceptable profit on their Investments, It became obvious in the recent recession that economic profitability/viability depends on being the lowest cost producer In order to compete on a global basis. The burden of achieving this objective falls on the mineral manager. He must strive to produce a salable product in an environmentally acceptable process while continuously Improving the profit margln.(1,2) Metal prices fluctuate on a regular basis. They directly Impact revenue and hence operating philosophy. The mineral engineer needs to develop an optimum operating strategy to meet his overall objectives, One would expect that, In the modem era of complex computer models, it would be easy to develop an economic model to maximize profits and/or cash flow. Discussions with mill managers Indicate that one mine/corporation's optimum operating strategy is not necessarily optimum for another. This paper approaches the problems from basics "Economics 101" and Illustrates the complexity of developing a universal model which can be applicable to all mines. Case examples are used to illustrate the need for better communication to avoid the basic economic fallacy “that optimization of segments leads to optimization of the whole system.” TECHNICAL MODELS Technical models are a prerequisite to the development of economic models because they provide the necessary Input data to these models, The flow of material from a mine through the sale of the finished product is shown In Figure 1. The ore Is mined and milled, and the concentrate can be stored for sale or smelted and refined In-house or at a toll facility. The finished product(s) are held In Inventory until sold either through existing contracts or in the spot market. [ ] Fairly reliable technical models have been developed for mining, milling and smelter operations. Mine plans are developed to provide a good Indication of the relationship between production and cut-off grade. It is easier to change surface mine plans than plans for underground mines. However, there are limits to maximum production that can be achieved with existing equipment. It Is possible that mine benches may not be developed to handle additional equipment, even If It was purchased to enhance production. More often than not, the cut-off grade Is lowered to Increase throughput goals.

Jan 1, 1993