Search Documents

By I. Ward, E. Milosavljevic, M. Botz

"The silver nitrate titration method is a rapid and acceptably accurate means of analyzing for cyanide in leach solutions that contain primarily free cyanide. However, in leach solutions containing elevated levels of copper, the titrimetric method overestimates the concentration of free cyanide and underestimates the concentration of weak and dissociable (WAD) cyanide. The authors have developed a modified potentiometric (MP) titration method for determining WAD cyanide that overcomes issues associated with high copper levels in solution. The new MP-WAD method involves addition of a chemical ligand to the sample prior to silver nitrate titration to release cyanide bound to copper. Once released from copper, cyanide in solution is no longer affected by the presence of copper, and titration results are quantitative rather than empirical. In multiple laboratory trials with synthetic solutions and complex actual leach solutions, analytical results obtained with the new MP-WAD method were found to be within about ±5% of analyses obtained with the USEPA OIA-1677 WAD cyanide analytical method.IntroductionThe silver nitrate titration method is widely used to estimate the concentration of cyanide in leach solution for purposes of cyanidation process control. Cyanide determined by silver nitrate titration is commonly referred to as “free” cyanide, but frequently should be referred to as “titratable” cyanide. By definition, free cyanide is the sum of the concentrations of aqueous hydrogen cyanide HCN(aq) and the cyanide anion CN- (ASTM, 2010). Titration will only yield a reasonably accurate measurement of free cyanide when metal-cyanide complex concentrations (e.g., cadmium, copper, mercury, nickel, silver and zinc) in solution are low. In other words, titration will only yield a reasonably accurate measurement of free cyanide if the solution primarily contains free cyanide."

Jan 1, 2015

By R. B. Lawrie

Diesel powered underground mining equipment is presently the most productive, safest and efficient equipment used in underground mining operations. The widespread application of this equipment to underground mining is restricted, however, largely because of the difficulty of controlling the diesel engine exhaust emissions. This paper briefly examines control devices currently available for underground application, and also discusses the theory and mechanics of controlling diesel missions with particulate traps and filters.

Jan 1, 1985

By J. Helton, J. L. Bellanca, M. McNinch, L. R. Swanson

DISCLAIMER The findings and conclusions in this paper are those of the authors and do not necessarily represent the official position of the National Institute for Occupational Safety and Health, Centers for Disease Control and Prevention. Mention of company names or products does not constitute endorsement by NIOSH. ABSTRACT Accident data indicates that mobile haulage poses a significant pinning, crushing, and striking risk. Proximity detection systems (PDSs) have the potential to protect mineworkers from these risks. However, unintended consequences of mobile PDSs can undermine the safety benefit they provide. Soliciting iterative user input can improve the design process. Users help provide a critical understanding of how mobile PDSs may hinder normal operation and endanger mineworkers. Researchers explored users’ perspectives by conducting interviews with mineworkers from seven mines that have installed mobile PDSs on some of their haulage equipment. Mineworkers reported that mobile PDSs affect loading, tramming, section setup, maintenance, and general work on the section. Mineworkers discussed the operational effects and increased burden, exposure, and risk. Mineworkers also suggested that improved task compatibility, training, logistics, and PDS performance might help address some of these identified issues. This paper also gives additional insights into mobile PDS design and implementation. INTRODUCTION Pinning, crushing, and striking accidents are a large problem in underground coal mines, especially for mobile haulage. Between 1984 and 2014 there were 179 non-fatal and 42 fatal pinning, crushing, and striking accidents involving mobile haulage vehicles, including coal hauling machines and scoops [1]. Proximity detection systems (PDSs)—automated systems that decelerate and stop a vehicle in order to prevent a collision—have the potential to protect mineworkers in these situations. In fact, PDSs are now required on all place change continuous mining machines as of March 16, 2018, as a result of the final rule published in January 2015 (30 CFR 75.1732) [2]. To address mobile haulage, later in 2015 the Mine Safety and Health Administration (MSHA) also proposed a new rule that would require PDSs on mobile haulage vehicles [3]. Though there has been no additional actions related to the proposed rule and it is not currently required, mobile PDS can still help to save lives. MSHA estimates that the adoption of mobile PDSs could prevent approximately 70 injuries and 15 fatalities over the next 10 years [4]. As of June 2015, the underground coal industry had already equipped 155 of the 2,116 mobile haulage vehicles in use [1]. In order to capitalize on the projected safety gains afforded by PDSs, it is important that the systems are designed and implemented effectively. Along with others, researchers at the National Institute for Occupational Safety and Health (NIOSH) have been exploring PDSs for more than two decades [5-7]. Throughout this time, NIOSH has also held several stakeholder meetings (2010, 2014, 2016, and 2017) in order to disseminate information and provide an opportunity to discuss on ongoing issues and concerns. Despite some progress, human factors remain a key concern. Previous research examined mineworkers’ attitudes towards PDSs on continuous mining machines [8] as well as how continuous miner operators’ perceptions of risk have changed as a result of PDSs [7]. However, stakeholders have still expressed a need to better understand how mobile PDSs affect the mining process, the mineworker, and whether and how they may present previously unidentified risks.

Jan 1, 2019

By Alcides Freitas

The great importance of aggregates as a basic building and maintenance material for both public and private projects makes the identification and availability of this valuable resource imperative for our economic and social well being. This was one of the main reasons that led the California Legislature to enact the Surface Mining and Reclamation Act of 1975 (SMARA). The Act requires the State Geologist to classify mineral areas in the state and the State Mining and Geology Board to designate mineral deposits of regional or statewide significance. What is the "Classification and Designation" process and how is it working?

Jan 1, 1984

A digital computer program has been developed to mathematically simulate the effect of limited changes in feed rate on the grinding circuit of an operating mill. The data on which the program is based was supplied by the staff of the mill in question. Samples taken around the complete grinding circuit were analyzed for solids content and particle size distribution for two feed rates. Matrix models were used to represent the grinding units: rod mill and pebble mills. Parameters for these models were computed using a method developed by Mular(l). Classifier parameters were computed by the Powell search method(2) for the Plitt model (3) . The simulation program, which permits the computing of the size distributions in the circuit resulting from the changes in feed rate between the two measured values, assumes that a linear relationship exists between the corresponding parameter coefficients. The program uses an iteration method to bring the simulated grinding circuit to a steady-state material balance for any specified' feed rate between those measured. The program is, in addition, extremely fast and economic in computing time. The results show that the simulations are not everywhere consistent with practice. For example, higher feed rates on simulation predict finer products. These errors are shown to be attributable to anomalies in data gathering techniques. An improved sampling procedure for grinding-circuit data gathering is suggested for future simulations of this type. It is concluded that the

Jan 1, 1971

By Armine F. Banfield

The Purpose of the Paper It is fitting that the first paper of a session on the Financial Aspects of Mining should be on the basic data upon which any financial discussion of a mining project must be based. The history of a mining project starts with exploration in an area considered geologically favorable for mineralization and culminates in the discovery of a body of valuable mineral material commonly known as a mineral deposit. Subsequently more detailed exploration establishes the approximate size, shape, tonnage and average grade of the deposit by surface and/or underground drilling, -surface trenching and/or underground workings. Some preliminary metallurgical testing and other studies, as required, are made at this time. Development work is then carried out to provide representative samples for determining flowsheet and metallurgical balances, preparing the deposit for production and establishing more firmly the grade and mining characteristics of the deposit. A feasibility study is then made of the engineering aspects of the project including the estimation of operating coats, the capital required to place the deposit into production, profit and return on investment. A valuation of the deposit

Jan 1, 1972

By T. Yue, Z. Gao, X. Tong, R. Liu

"Lead ions (lead nitrate) were introduced to modify the surface properties of scheelite, effectively and selectively improving the flotability of scheelite, with benzohydroxamic acid (BHA) serving as the collector. A series of experiments about the mode of addition and the ratio of lead ion to BHA were conducted and indicated Pb-BHA complexes were the active species responsible for the flotation. And two adsorption models of BHA on the surface of scheelite were established. For both the two adding methods, some kind of complexes formed by lead ions and BHA played a key role in the flotation process. Zeta potential, FTIR, and XPS studies indicated that the adsorption amount and intensity of BHA on the surface of scheetlie were larger by adding the reagents as a mixture. The mixed addition is conducive to form Pb-BHA complexes and improve the adsorption efficiency of BHA on the surface of scheelite, as well as the recovery of scheelite. INTRODUCTION Scheelite, as an important tungsten-bearing mineral, is nowadays utilized mainly by flotation (YIN and WANG, 2014; Sun et al., 2011; Gao et al., 2015; Gao et al., 2015). Flotation separation of scheelite from calcium minerals creates difficulties because of the existence of the same cation in the minerals and similar physico-chemical characteristics such as solubility, hardness, specific gravity, point of zero charge (PZC), etc. (Arnold and Warren, 1974; Deng et al., 2016; Deng et al., 2015; Ozcan and Bulutcu, 1993a; Yongxin and Changgen, 1983). The conventional collectors used in the flotation of scheelite ores are generally fatty acids or fatty acid derivatives (Bo et al., 2015; Oliveira and Sampaio, 1988; Shi et al., 2014; Sivamohan, 1988; Yongxin and Changgen, 1983). It is difficult to separate scheelite, especially from calcite, with these reagents because the adsorption mechanism of these collectors occurs through chemisorption of the oleate ion onto the mineral surface (Atademir et al., 1979; Changgen and Yongxin, 1983; Hiçyìlmaz et al., 1993; Hu et al., 2011). Therefore, it is almost impossible to separate them by fatty acid flotation without using any selective depressant. Although oleoyl sarcosine was used as a selective collector in the flotation of fluorite and siliceous scheelite ores (Ozcan and Bulutcu, 1993b; Ozcan et al., 1994), this selectivity is inadequate for a low-grade calcitic scheelite ore. Unfortunately, reagents such as organic colloids (dextrine, starch), quebracho, sodium phosphates, sodium silicate solutions containing polyvalent cations (hydrosols), etc. (Bo et al., 2015; Schubert et al., 1990; Shi et al., 2014; Yongxin and Changgen, 1983), used for calcite depression also depress scheelite to a large extent. Cationic collectors, such as amine and quarternary ammonium (Yang et al., 2015) and collector mixture (Gao et al., 2015) have been used to improve the scheelite flotation. However they have not been applied in industry due to the poor separation from silicate minerals."

Jan 1, 2017

By A. I. Johnson

This paper describes," the application, of a modular or building block approach to the analysis, design, and control of complex mineral treating processes. The main purpose of the paper is tutorial, to show the reader how such processes can be modeled using a modern digital computer" and, not to discuss in any detail the results that may be achieved in such studies. It is proposed that, the main techniques be illustrated by reference mainly to the Bayer process for alumina extraction and purification; in cooperation with the Aluminum Company of Canada Ltd. the author and his Colleagues at McMaster University and their students have studied this, process as a means of applying new computer techniques to extractive metallurgical processes. The plant described was studied by the author and his colleagues as a senior undergraduate project in cooperation with the Aluminum Company of Canada. It is one of several studies that have been carried out with Canadian industry. (1)

Jan 1, 1972

By J. Restrepo, N. Ripepi

"The International Organization of Standards defines risk as “the effect of uncertainties on achieving objectives (15).” In mining, many uncertainties can influence the outcome of personal or professional objectives and are often difficult to predict. Risk management, the minimization and control of adverse effects from exposure to identified risks, is a well-established concept that can summarized as “being smart about taking chances” (12). Risk management now consists of management processes unique to numerous organizations across many industries, as varying sectors encounter a variety of needs, including the analysis and mitigation of risks related to physical security, product liability, information security, various forms of insurance, regulatory compliance, and workplace safety (12). The reoccurrence of multiple fatality events in the US mining industry, especially the underground coal sector, suggests an opportunity for improved methods of major safety hazard identification, assessment, and mitigation. A risk management approach would include ready identification and mitigation of these risks, inclusive stakeholder engagement, and rapid integration. While many solutions to reducing the risk of mine disasters have been proposed including stricter regulation and improved technology, a comprehensive risk management approach has yet to be fully integrated in the US mining industry. In December of 2006, R. Larry Grayson of the National Mining Association’s Mine Safety Technology and Training Commission called for “a new paradigm for ensuring safety in underground coal mines, one that focuses on systematic and comprehensive risk management as the foundation from which all life-safety efforts emanate (7).” A risk management approach has already been implemented with success in Australia’s minerals industry as part of a transition during the mid-1990s from a prescriptive based health and safety attitude to a more proactive, duty-of care [risk-based] philosophy (13, 16, 17).FUNDAMENTAL ELEMENTS OF RISK MANAGEMENT TECHNIQUES The fundamental components of a comprehensive risk assessment/management program are well-established within the realm of mining health and safety. Figure 1 depicts the elements of a typical mining hazard management framework. The first step in any safety-based risk management system is to identify and assess hazards by their location, nature, and magnitude within a mine. Next, a decision is made about choosing to eliminate, mitigate, or tolerate each hazard. Ideally, a hazard will be eliminated during the design stages of mining, though dynamic mining conditions often require continuous improvement and reevaluation of existing hazard controls. If elimination is not possible, hazard mitigation actions can consist of methods, rules, equipment, competencies, or other mechanisms. If a hazard is simply tolerated, as many inherent mining hazards must be, then specialized administrative controls must be utilized to minimize losses. During this process, the performance of each action is monitored and modified as needed (13)."

Jan 1, 2015

By R. Ribeiro

The designers of the new Arafertil concentrator in Brazil provided for complete automatic control of the grinding circuit to meet the operating objective of maximum throughput at a specified grind. Analog control methods were selected because of proven reliability and simple maintenance, and in order to minimize commissioning time and effort. This paper summarizes the step-by-step effort required to progress from local loop control of certain individual parameters to an integrated system capable of achieving the design goal. Emphasis is placed on the practical aspects of commissioning a control system.

Jan 1, 1979

By W. Hermülheim, J. Brune

"This paper analyzes mine emergency management and rescue practices in German underground coal mines and compares them to those used in the United States. The German mining industry has developed these practices over more than 100 years, and they have successfully managed numerous fire, water inundation and ground control emergencies using these techniques. The authors interviewed German mine emergency professionals about rescue team and emergency operations. These operations were then analyzed to determine which of these German principles would be of interest to United States mine rescue teams. Implementing these programs into United States mine rescue and emergency operations was analyzed. INTRODUCTION Coal mining has become much safer industry than it has been in the past. Advances in safety and health regulations and company polices have improved working conditions for miners all over the world. Even with these advances there is still a need for continued attention to safety and health. It is also important for mine safety professionals to observe practices and procedures in other countries and cultures and learn what and how to apply this knowledge in their own systems. Coal mine rescue has been an integral part in improving coal mine safety. Mine rescue procedures have evolved with time, experience and technology development. Today, coal mine rescue teams are still needed and must be continually trained and prepared for any mine emergency. Although it is hoped that improved mine safety policies and practices will eliminate coal mine disasters in the future, accidents remind us that disasters can still happen today. In May 2014, Turkey experienced a severe coal mine disaster where 301 people were killed [G.Tuysuz, 2014]. Our industry must learn from these incidents, focusing on disaster prevention and making improvements in mine rescue operations. Mine rescue procedures differ from country to country due different regulatory environments and different historical evolution of emergency response. Sharing practices and procedures from one country to another enables learning from different experiences and cultural backgrounds. Sharing is also a way of preserving information, identifying and learning best practices."

Jan 1, 2015

By M. E. Rossi, J. A. Bassan, J. B. Novillo

Sampling and geological models are the basis of recoverable resources models. They are pillars of mineral resources and reserves estimation, and what geostatistical methods for grade estimation should rely upon. The resource model is best estimated if geostatistical methods make good use of sound geologic models. Data collection from the original drill holes, including field procedures and the quality assurance and quality control (QA/QC) of those samples are pillar one of a resource model. The second pillar of the model is the good use of the logged geological information, resulting robust geological interpretations, and the corresponding three-dimensional models of those interpretations. These models are partly subjective and mostly conditioned by the quality of logging and the geologist’s experience. They are also conditioned by the quality of the three-dimensional models built, regardless of the modeling method employed, traditional or implicit. Grade estimation is more commonly done by applying some geostatistical method and using the two basic sources of information, data and geologic model. Multiple stages are involved in this process, and in all of them there are uncertainties and risks that have to be dealt with. Knowledge, understanding, interpretation, and management of the model’s fundamentals are critical, given that they directly affect its accuracy and predictive quality. The mitigation of related risks allows for the creation of opportunities, generating value and reducing the project’s uncertainty. This paper discusses some of the key variables, uncertainties, and risks involved in the resource modeling process, illustrating with specific examples; discusses possible risk mitigation alternatives, and proposes best practices to avoid or mitigate those uncertainties. Emphasis is placed on taking advantage of technological advances without ignoring fundamentals. INTRODUCTION In the area of mineral resource estimation, one alarming trend that these authors have observed in the past 20 years or so is that the care and diligence in checking the work as it progresses has generally diminished. This is, perhaps, an unintended consequence of the availability of new technologies and tools that attempt simplify and speed up the work involved. This has led to a more casual attitude towards checks and balances that have to be in place at any given stage of the process before proceeding to subsequent stages, as best practices dictate. To some extent, some of these aspects are covered in international standards for resource estimates reporting (JORC, 2012; CIM, 2010). But these are broad, and do not specifically recommend best practices to a level of detail that would have an impact on certain aspects of the process. There are numerous references in the geology and mining journals and conferences that discuss the consequences of poor recoverable resource models (Baker and Giacomo, 1998; Vaughan, 1997).

Jan 1, 2019

By M. A. Kaufman

In this paper I will attempt to present an up to date review of the type of exploration' that has previously been carried out in Alaska, discuss some of the more significant past producers and recent discoveries, and suggest some approaches to future exploration. Hopefully this information may be of some use to those parties tempting to evaluate Alaska's non ferrous, non placer, metal potential or contemplating initiation of exploration in the state. II. SUMMARY AND CONCLUSIONS Past production of non ferrous metals from lode deposits in Alaska has been meager considering the size of the state. Since there have been no major lode mines operative in Alaska since World War II, and since logistical conditions vary throughout the state, it is not possible to generalize with respect to mining costs in Alaska as compared to those in other areas. There seems to be little question, however, that a major deposit situated in a reasonably favorable location' could be profitably operating at present. Host of the known metal prospects in Alaska were discovered by early gold prospectors prior to World War I. From World War I through World War II exploration consisted chiefly of surface prospecting by prospectors on a diminished scale, as compared to the early gold rush days, drilling of some prospects by the U.S.B.M,, and occasional mine or prospect evaluations by mining companies. From the end of World War II to the present time, there has been a generally steady increase in exploration by mining companies consisting chiefly of prospect and district evaluations, large scale aerial reconnaissance programs in search of color anomalies, and regional drainage geochemical surveys. The post World War II increase in mining company exploration has not been matched by an increase in conventional surface prospecting.

Jan 1, 1972

By J. Starwood

Post-super-cycle mining executives must exploit every aspect of the value chain to deliver continued value to stakeholders. Integrating enterprise-wide information technology with value-chain-wide operational technology, known as IT-OT integration, is essential to extracting optimal results from the value chain. Mining companies trail other industries with respect to IT-OT integration across the value chain. Manual data consolidation and value chain optimization using spreadsheets and human intelligence are widespread practices within the industry. Increasing automation with smart devices and controllers means the volume and velocity of data will soon increase beyond human abilities. Enterprise Architecture provides a method for aligning information technology with the business operating model to successfully implement IT-OT integration. A Value Realization Framework (VRF) provides a means for predictable traceable value realization from IT investments and assets. With these principles, frameworks, models, methods, and techniques, mining organizations can accomplish IT-OT integration that provides their executives with a strategic value-chain-aligned platform for sustained value realization over the long term.

Feb 23, 2014

Sequential and evolutionary changes through time are recognizable in many, perhaps most major families of ore deposits and their geological environments. These changes are additional useful indicators of the evolutionary history of the earth and its tectonic processes. They are important in mineral exploration because they involve consideration of time as a fourth dimension, thereby indicating the most favorable ages, rather than types of rock for investigation. Many of the changes are analogous to those recognized in faunal evolution. Some primitive, unspecialized types of ore deposits occur nearly unchanged through rocks of widely differing age. Others diversify into several, more specialized variants, whereas still others become extinct. The place of these is taken by new, younger types, some of which undergo sudden proliferations and later diversifications of their own. In Archean greenstone belts irrlportant iron, nickel, gold, and base metal deposits occur co-regionally, but in different stratigraphic positions in the same, thick volcano-sedimentary successions. Here their close temporal and spatial associations suggest common genetic exhalative hydrothermal processes. The massive base metal sulfide family of ore deposits provides an excellent example of evolutionary changes, exhibiting distinct variations through both time and space. Deposits belonging to this family span the entire range of time, occurring in rocks of ancient Archean to Recent age, and specific types within the family also span the entire range of spatial environments from ensimatic to ensialic. Moreover there are possible evolutionary metallogenic links between certain types of massive base metal sulfide deposits and other important base metal ores, noteably Mississippi Valley-type and porphyry copper deposits.

Jan 1, 2013

By Deborah A. Peacock

"Outer space technology and exploration have reached a tipping point, so that mining and mineral processing in outer space is now a certainty and not a dream. Several competing companies worldwide are on the way to building spaceships to land on the Moon and eventually mine the Moon and asteroids for volatiles, rare earth metals and Helium-3.The Google Lunar XPrize offers a $30 million prize1. China has recently landed a spacecraft on the Moon. The European Space Agency, with cooperation from the United States, has landed a spacecraft, Philae, on a comet. And, Mars One is planning a one-way trip to establish a settlement of humans on Mars.How and why are the Moon and asteroids and their resources of interest to private space industry companies? Why are the Moon and asteroids viewed as a potential business venue?Geology of the Moon and asteroids — Why do we want to mine there?Space enterprises are actively working toward establishing and operating lunar and asteroid mining locations for resource extraction, resource processing, conversion to salable products and distribution of the products and services in space and to Earth and beyond2.Forty-five years ago, the Apollo manned missions to the Moon returned rocks and regolith to Earth, which were studied and analyzed. What they found was that the Moon contains valuable minerals and resources. These minerals are largely due to meteor and asteroid impacts, which have, over eons, created this mineral-rich regolith. These impacts have occurred on Earth as well, for billions of years, particularly early on in the history of the solar system. However, on Earth, wind, water and vegetation have erased most of these impacts. On the Moon, in contrast, the only weathering is caused by subsequent impacts and the solar wind."

Jan 1, 2017

By Juan Camus

To understand why some companies excel in creating value, Jim Collins (2001) and a group of postgraduate business students engaged in a comprehensive, five-year research project. They examined 1,435 U.S. companies for more than 40 years, seeking those that made significant improvements in their financial performance over time. The distinctive pattern sought was: ?Fifteen-year cumulative stock returns at or below the general stock market, punctuated by a transition point, then cumulative returns at least three times the market over the next 15 years. ?The search identified 11 outperforming companies, all in different industries, that were called the ?good to great? companies. To contrast these companies with similar peers within the same industry, the search also selected a group of comparison companies that failed to make the leap from good to great. Collins then set out to examine the transition point. What distinguishing features did the good-to-great companies have that their industry counterparts did not? At the heart of the findings about these outstanding companies is what Collins refers to as the ?hedgehog concept? ? how to find the one big thing that the company must focus on. According to Collins, those who built the good-to-great companies were, to one degree or another, hedgehogs. Those who led the comparison companies tended to be foxes, never gaining the clarifying advantage of a hedgehog concept, being instead scattered, diffused and inconsistent. This insight is complemented by Peter Drucker (2004), an influential management guru, who asserts that the first question an effective executive should ask is: ?what needs to be done?? Asking this question and taking it seriously, he asserts, is crucial for managerial success; and that the answer almost always has more than one urgent task, but the effective leader only concentrates on one task. In this last respect, Drucker emphasizes: ?If they [executives] are among the sizeable minority who work best with a change of pace in the working day, they pick two tasks. I have never encountered an executive who is effective while tackling more than two tasks at a time.?

Jan 1, 2011

By John L. Shafer

Often an in situ leach is the only practical economic method for copper recovery from small low grade oxide deposits. The decision to develop a copper property by an in-situ blast and leach is strongly dependent on ore grade, tonnage, hydrology, and the copper extraction and acid consumption rates. The inherent "leachability" of the ore will in part determine the desired amount of fracturing of the ore deposit by the blast in order to obtain a copper extraction rate that is economical. For the last several years Occidental Research Corporation (ORC), the corporate R&D for Occidental Petroleum has under-taken a modest effort to address the question of "how to best identify and determine the information necessary to predict and control the operation of an in-situ leach for the economic recovery of copper."

Jan 1, 1977

By R. B. Massy-Greene

Project engineering and development is a process of optimisation of capital, operating and financial costs, and extraction rates in the light of current and forecast economic conditions for the sale of the product. The aim of the process is to maximize financial returns to the sponsors (project owners) within many often conflicting constraints. Thus, the sponsor's engineering and financial staff have a common goal, with performance measured in financial terms. Consequently, each group must be aware of, and responsive to, the constraints imposed upon the other. For financial staff, the increasing size and complexity, and escalating capital costs of new ventures have required them to seek finance in larger amounts, and by non-traditional methods. In addition, senior management are requiring indications of the availability of finance as a pre-requisite to a decision to commence project development activities.

Jan 1, 1982

By T. R. Ellis

Many appraisers/valuers believe that the only valuation method available within the cost approach category for real property appraisal is the depreciated replacement cost method. Some valuation and financial reporting standards setters also believe the same. This paper introduces the minerals appraiser to a number of useful methods for mineral property appraisal that are based primarily on the principle of contribution to value, the predominant economic principle in the cost approach. Most of these cost approach methods discussed are primarily for use in valuation of exploration tracts and resource properties that have no defined reserves. However, the powerful rural cost method can be used to calculate the contribution of categories of resources, reserves and other property components to the value of a mineral property. This method can be applied to mineral properties at all stages of development, including producing properties. The author reasons that standards and regulations pertaining to real property valuation should be modified, and underlying principles should be expanded, so as not to inhibit appropriate application of these cost approach methods.

Jan 1, 2011