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By A. G. Yapo, T. W. Camm

"All-in sustaining cost is a metric used by mining companies to reflect the cost of gold mining in a consistent format useful to both investors and mining professionals. Cost reporting focused on the direct cost of mining and processing ore was summarized in the non-GAAP cash cost developed by the Gold Institute in 1996. In 2013, a group of mining companies, working with the World Gold Council, developed a more inclusive approach to reporting costs designed to solve the dilemma of showing a more comprehensive reflection of recurring costs involved in producing gold, without discouraging investors. INTRODUCTION Mining today plays a key role in the development of our civilization as a source of essential raw material and provider of essential fuels, producer of jobs, and a factor in support of the international balance of monetary payment (Camm, 2014). Professionals in mining locate, develop, design and manage ore deposits in an environmentally safe and profitable manner. As mineral deposits become increasingly scarce, new challenges face the industry. A current trend is to an increased emphasis on underground mining techniques for deeper deposits. Operations are safer today than before as companies understand better their work environment and the importance of mining responsibly. A continual challenge for the industry is accurately reflecting the costs and selling price of ore. An enduring characteristic of mining is the situation where the market typically determines the price of a commodity; the main control a company has on the bottom line is to control the cost of production. An attempt to bring light and clarity on the cost of their business will give a better idea to investors on the true profitability of the mining business. Gold producers face this struggle to accurately reflect the cost of production while also seeking to attract the interest of the investment community (Hill, 2013). In order to have a consistent format to report on their production costs, leading gold producers through their alliance inside the World Gold Council (WGC), worked on the adoption of a new cost framework: the All-in Sustaining Cost (AISC) and All-in Cost (AIC). Since 1996, the traditional cash cost reporting has focused only on the mining and processing costs incurred in mining an ounce of gold, which included the costs of goods sold (labor, energy, and consumables costs) and royalties (Table 1). But cash cost reporting ignores many important aspects, like sustaining capital, general and administrative expenses, and site rehabilitation at the end of the mine life (Whelan, 2013). The cash cost was used to attract many investors into the business. In fact the high gross margin (sales minus cash costs) has been promoted the past decades by the industry instead of the net or operating margin. As a result, even when the gold price was high, nearly $1900 per ounce in August 2011, gold producers were not reporting excessive profits in their cash flow / income statements, to the disappointment and incomprehension of investors (Milstead, 2014). The truth was simply that the other costs omitted in the traditional cash cost were reducing the apparent profits."

Jan 1, 2017

By A. Steinmüller

Introduction In the design and operation of gravity concentration circuits, the application of process models for spiral concentrators offers significant benefits. A substantial amount of work has been produced over the last 30 years in the field of modeling the metallurgical performance of spiral concentrators. It is not the aim of this contribution to add to the refinement of modeling technique but to share some of the experiences and potential improvements which can be achieved in a relatively simple way. The design of spiral circuits usually requires extensive testing. This is often conducted in batch operation only, either due to lack of suitable continuous testing facilities, the unavailability of sufficient quantities of sample, or other constraints. Typical problems arising during circuit development from batch testwork are the extrapolation of results to different feed conditions, and resolving of internal recycles. Model selection and development The classic approaches in spiral modeling technique range from fundamental fluid dynamics, based on the Navier-Stokes equations in combination with expressions for local slurry properties, to fully empirical and statistical models. With the initial objective of developing an in-house tool for gravity circuit optimization and development, mathematical model types from each category, available either commercially or in the published literature, were evaluated. Model selection For the desired purpose, an approach proposed by Holland-Batt (1990) was found suitable, which was adopted and modified. Holland-Batt reported that the shape of release curves in spiral applications could be described by a combination of a linear function in the initial recovery zone, and a power law function outside this zone. The proposed recovery function was formulated as

Jan 1, 2005

By Brent K. Nelson, D. Lee Petersen, Charles R. Nelson

INTRODUCTION Tunnels are commonly constructed in the very weak St. Peter sandstone in the Twin Cities area of Minnesota. Historically, core recovery in this weak sandstone was very small in the critical weaker strata resulting in little preconstruction information on the ground conditions. Improved core recovery techniques have been utilized for recent projects, allowing rock quality rating methods to be developed for the recovered core. Down-the-hole tests, and the use of combination ratings between different types of core data provide for more detailed characterization of ground conditions. THE ST. PETER SANDSTONE The 45 m thick St. Peter is an unusually pure quartz sandstone. It underlies all the Twin Cities area, except where it has been eroded by the present day Mississippi River or by pre-glacial rivers. It forms conspicuous steep bluffs along the Mississippi River where the upper Platteville limestone formation protects it from erosion. Where the Platteville formation is missing, the sandstone slopes are often more gentle. Natural case hardening of the exposed sandstone bluffs often forms a resistant crust and reduces sloughing. This case-hardened surface is not representative of the sandstone back from the bluff.

Jan 1, 1987

Diesel powered machines are doing some specific operations in the cyclic order required by the technical process. The dynamics of this process in certain conditions has an essential influence on environmental health conditions in the working area. The main purpose of this paper is to show, using computer simulation, how the movement (dynamic) of diesel vehicles effects environmental health standards and also how to determine the required air quantity for ventilation.

Jan 6, 1985

By S. Noll

Ventilation is an essential part of any underground mining operation. It provides fresh air for workers and machinery, keeps up an adequate mine climate and dilutes and dissipates noxious gases. Possible changes in the economic environment for mining in the future, e.g. increasing energy costs, will necessitate optimization of distribution of airflow within most mines. This paper discusses the scientific set-up for measurements as well as the behavior and influence of parameters of ventilation according to airflow distribution under consideration of technically possible set-ups of mine fans. This study was done in an underground mine with a flat seam room and pillar mining method.

Feb 27, 2013

By G. R. Robinson

Aggregate resources consist of sand and gravel, and crushed stone. They are large-tonnage, bulk-minable mineral commodities that are used in construction and industrial activities (Tepordei, 1999, 2001).Rates of aggregate production, use and mine permit approval in the mid-Atlantic region differ by population density. These rates are influenced by economic and human factors, such as demand, costs, land availability and community opposition. In some areas, the local availability of aggregate is limited. This is due to the lack of suitable local source materials for aggregate, the loss of potential high-quality aggregate resource production sites by preemptive land development and restrictive zoning (resource sterilization), and the difficulty of developing and permitting production sites for aggregate.

Jan 1, 2004

By C. Allen

Vale Inco Ltd. is trialing several energy conservation initiatives in an effort to minimize costs and reduce green house gas emissions. The Ventilation on Demand (VOD) concept is a major project being carried out in various phases at Vale Inco mines. Due to the complex nature of a dynamic VOD system, Vale Inco is taking a systematic approach of testing VOD system components with milestone evaluations of each project. Coleman Mine was selected to pilot test the functionality and robustness of automated louvers in the underground environment; with the goal of optimizing mine airflow such that ventilation would be available for developing a new ore body. This project involved installing automated louvers in the exhaust raises; and installing variable frequency drive (VFD) starters on auxiliary supply fans. Because the VOD project created efficient utilization of the ventilation air in the 153 OB, the 170 OB is currently being developed without increasing the total fresh air into the mine. This paper describes the louver system component of VOD as applied at the mine.

Jan 1, 2009

By W. J. Kennedy, John D. Gardner

Introduction During the past 10 years, energy costs in mining have risen from about 4% to as much as 25% of total production cost. When combined with declining ore grades, these costs exert inordinate stress on mine productivity. Industrial engineering techniques have traditionally been aimed at improving manufacturing facilities productivity, but they have been applied to mining as pressure for productivity improvement has increased. These techniques can perform four useful functions for mining operations by improving methods, equipment selection procedures, energy use through scheduling, and managing energy costs rather than being managed by them. This article discusses some of the standard techniques for productivity improvement, and how they can be adapted to perform these four functions. Pre-Production The best time to seek high productivity is when a mine is being planned. During pre-production, when most options are still open, an optimum mine design is achievable. At this time, major equipment selections are made, the layout, material handling systems, and processes are designed, and critical energy source decisions are made. By including explicit energy cost projections, decisions can be made that will save significant amounts of money per ton of ore over the life of the mine. Attention can also be given to often overlooked details such as lighting. Some of the same tools used in new mine planning are applicable to productivity improvements at an existing plant. These tools are the charting and modeling methods that have been developed by industrial engineers over the past 75 years. Energy Consumption Before any analysis of energy consumption can be performed, preliminary work is necessary to find the kind of energy used, how much it costs the plant, and when electrical peaks occur. Past bills should be examined to determine the monthly consumption rate and the cost of each energy type. These data should be adjusted to remove effects caused by production fluctuations or weather. Knowing when electrical peak demands occur is necessary because these determine either the electrical capacity needed or the amount that must be bought. At $500-$800 per kW for construction or $5-$15 per kW per month for purchase, they represent a significant cost. By the time these data are collected, planners should be aware of the importance of energy in the total cost of mine operation, and should have the most crucial time data for electrical peak demand. Flow Process Chart Reducing costs can be accomplished by a thorough look at mine systems and how altering one system causes changes in others. By developing and exercising models of production processes outward to the transportation of the final product, otherwise obscured weaknesses may become apparent. There are tools available for analyzing the mine and its associated systems; one of the most useful is the flow process chart. The flow process chart gives a system analysis of a production procedure by classifying all actions into one of five types: operations, inspections, transportation, delays without paperwork, and delays with paperwork. Operation: In an operation, the nature of something is changed. Examples are blasting, washing coal, and processing matter. Denoted by 0. Inspection: Examining an object for identification or to measure some attribute. Examples are determining whether a drill hole is deep enough, deciding how far to cut under an unsupported roof when operating a continuous miner, or checking the lubricant level on a truck. Denoted bye. Transportation: Moving an object from one place to another. Examples are transporting overburden, moving coal on a conveyor belt, and pumping water. Denoted by =>. Delay without paperwork: A delay that is an inherent part of the system. Examples include idle time of a continuous miner while waiting for shuttle cars or for roof bolting, crushed ore in a storage area waiting for grinding and flotation, and people from one craft waiting for another craft to finish. Denoted by D. Delay with paperwork: A delay that can be terminated only by some written authorization. Examples are coal that cannot be removed until authorized by a bill of sale and transportation orders, personnel records, maintenance, or spare parts. Denoted by V. In practice, the flow process chart is completed after data collection and a detailed examination of the process. Data collection is needed to answer questions on distance, quantity, and time for each of the operations. As the analysis is being performed, each step of the process is subjected to these questions: • Why is the step necessary? • What is being moved? • When does the step take place, and why?

Jan 11, 1983

By A. L. Martikainen

In fluctuating airflow, continuous air velocity recording is the most reliable method of air velocity measurement. It allows for fast recognition of changes and the calculation of long-term averages. Also, it enables the mine operator to identify when the airflow has decreased to a point requiring action. Using ultrasonic anemometers provides an accurate option for continuous air velocity monitoring. This paper provides information about the effect of common obstructions in underground mining on air velocity readings. Stationary and moving obstructions are used to represent workers and equipment that would cause discrepancies in measured airflow. Also, it is important to know how large of a sample size is required to ensure reasonable accuracy of results. Statistical analysis is used to evaluate the required sample size. The sampling procedure is further studied by comparing two different sample rates. The results show that obstructions provide noticeable differences in air velocity measurements. Also, movement of obstructions can be recognized from changes in results. Surprisingly small sample sizes provide reliable air velocity information. Standard sample rates are found to be suitable for the underground environment.

Jan 1, 2011

By Carl Johnson, D. R. Todd

The Blue Ridge Low Level Outlet (LLO) was a design/build contract to provide a secondary means of discharging water from the Blue Ridge Reservoir. The project involved driving a 3.25 m (11 ft) modified horseshoe tunnel by 293.5 m (963 ft) long utilizing conventional drill and blast methodology. The intake shaft and structure were constructed inside of a sheet pile cofferdam surrounded by a maximum of 20.1 m (66 ft) of water. The shaft was excavated 4.87 m(16 ft) diameter to a depth of 12.8 m (42 ft) below the tremie slab elevation. Steel lining, including a transition from 3.66 m to 2.74 m (12 to 9 ft) diameter and a90 degree elbow were installed in the inlet shaft and then backfilled with concrete. This paper will describe the RFP phase, the design phase, challenges of the underground construction and contractual challenges.

Jan 1, 2005

By Tim O’Neil

The search for precious metals opened up the American West. And Nevada was right in the heart of this development. In the mid-19th century, prospectors seeking gold roamed the hills of Nevada and discovered the ComstockLode. The development of this huge silver and gold deposit began in1859 and was responsible for Nevada’s early entry to statehood. Mining was Nevada’s first industry. In more recent years, the Nevada mining industry has led the nation in gold, silver and barite production. Nevada also produces many other minerals. These include aggregates, clays, copper, diatomite, dolomite, gypsum, lime and limestone, lithium and magnesium compounds, perlite, salt and silica. Even today, Nevada’s mining industry continues to be a major economic force in the state. The mining industry has made more than $10 billion in capital investments in Nevada since 1985. And the value of Nevada’s mineral production last year was about $2.7 billion.

Jan 1, 2000

By Gary B. Glass

Seventeen percent of US coal production now comes from the 19 surface coal mines in the Powder River Basin of northeastern Wyoming. The Powder River Coalfield, which coincides with this topographic and structural basin, is unique to the conterminous US, in that it contains an estimated 934.4 Gt (1.03 trillion st) of in-place coal resources. At least 13.2 Gt (14.6 billion st) is a compliant, strippable reserve base. In 1993, an estimated 162 Mt (179 million st), or 98% of the coal mined in this Wyoming coalfield, came from the thick - average 30.5 m (100 ft) - subbituminous, Wyodak coalbed, or from the Anderson and Canyon coals in the one mine where the Wyodak is split into two separate coalbeds. The other 2.7 Mt (3 million st) of coal mined in the Powder River Basin in 1993 came from the School, Badger, Monarch and Deitz No. 3 coalbeds. In this "world class" coalfield, there are at least 13 other persistent, 3 to 15 m (10 to 50 ft) thick, coalbeds as well as the Big George and Lake De Smet coalbeds, which are each 61 m (200 ft) or more thick in places. None of these latter 13 coals are mined at this time.

Jan 1, 1994

By Paul L. Russell

Interest in the western oil shales of the US began in about 1908, with the first retort in Colorado constructed in 1917. The most successful early developments were near Elko, NV, where the Catlin Shale Products Co. produced more than 1.9 dam3 (12 000 bbl) of shale oil during 1920-1924 and at Rulison, CO, where a US government operation produced about 570 in 3 (3 600 bbl) of shale oil during 1926-1929. Plentiful low-cost crude oil was developed about this time and shale oil was of little or no interest until after World War II. From 1944 to about 1972, several companies, and the US government, operated shale oil mines and recovery plants in Colorado. While technical successes were achieved and an estimated 40-56 clam' (250 000-350 000 bbl) of shale oil were produced, economics were not favorable and commercial production was not achieved. In recent years domestic production of crude oil supplies has not kept pace with US consumption. The growing shortfall has been met with imports. The cost of imported oil has continued to escalate and increased US dependence on petroleum imports are national concerns, because of the negative impact on US balance of payments and an increasing dependence on other nations for US energy needs. In 1978, petroleum imports equaled about 44% of demand, up from 23% in 1970, but down from 48% in 1977 because of availability of Alaskan North Slope crude oil. Reduced domestic consumption and other factors have reduced current imports to about 40-45% of de¬wand-but at ever increasing cost. The growing shortage of crude petroleum and its increasing cost have resulted in renewed worldwide interest in oil shales. In the past, the main obstacle to oil shale development (progress toward commercial production) has been economics-shale oil cost too much to develop and thus could not compete with conventional petroleum crudes. Even with today's inflated energy prices, some experts say the production of synthetic crude oil from oil shale is, at best, marginally economic. The 1973-74 Arab oil embargo and increased crude oil costs-along with the federal government's offer to lease oil shale lands-resulted in renewed

Jan 1, 1981

By Adam H. Zimmerman

Introduction Noranda, like similar businesses, is suffering the pain of previously unheard of currency relationships, a cost structure built in better days, and conditions of gross oversupply possible in almost any commodity. Indeed, it does seem like the worst of all possible worlds is out there before us. To understand a Canadian natural resource company, you must know how the country is organized. So far as natural resources are concerned, Canada is not Canada. Canada is 10 provinces and each own the resources situated therein. Thus, the conditions of extraction, exploitation, and operation are all set by the province, while the conditions of trade and currency are set by the Federal government. This means that what may be the rule in Newfoundland may not be the rule in Manitoba or British Columbia. The second thing is that the Canadian currency has been a satellite of the US dollar for a long time. This means that we hold the unenviable and unjustified position of being the country with the second strongest currency in the world. What this has meant to us is what it has meant to an American operator. Since 1980, a pound of copper fetches 214% more for a Chilean than it does for us and a pound of zinc 115% more for a Belgian. From an American point of view, Canada is favored because its dollar is valued at 25% to 30% less than the U.S. However, because of industrial indiscretions in years past, Canada has a locked in labor cost disadvantage that is very hard to cope with. Canada has a unique situation with its labor unions. Many of the unions are, or have been, internationals and therefore gained undue strength in early days. Canada has a third political party of socialist persuasion. It is entirely funded by dues from laor union members. Thus, we have a politicized workforce. And finally, we have a public service that has the right to strike. This had made the public service unions by far the strongest now in Canada. What this means to the mining industry is that there is somebody out there blazing the trail. The unrelenting power of these public service unions probably creates a climate more conducive to excessive wage settlements in industry than would otherwise be the case. Study, Work, and Pray So what do we do when times get tough? In simple terms, we study a lot, we work harder, and we pray a great deal. We study a lot in terms of learning hitherto unknown strengths and weaknesses of our products, processes, and operations. We work hard in the sense that we do everything possible to improve our productivity. And we pray a lot because, so far, anything else we have done has not been enough. Some years ago, Noranda recognized that its principal base and precious metal operations were diminishing. To provide for the future, we should branch out into other resource type operations. These might be countercyclical and also perhaps a little more permanent. For this reason, Noranda entered the potash, aluminum, and forest products businesses. This, of course, was a 'brilliant' strategy that was much applauded in its early days. We built an excellent potash mine, the smallest inte-

Jan 6, 1985

Two new inorganic-organic hybrid polymers, Al(OH)3-polyacrylamide (Al(OH)3-PAM) and Mg(OH)2-polyacrylamide (Mg(OH)2-PAM) were synthesized and successfully applied for the treatment of oil sand tailings. The results indicate that both Mg(OH)2-PAM and Al(OH)3-PAM were unaffected by the change in pH, and could be applied to oil sand tailings with varying sand-to-fine ratio (SFR). The optimum dosages for the Mg(OH)2-PAM and Al(OH)3-PAM were about 330 g/ton and 650 g/ton, respectively for SFR 3.75. The flocculated oil sand tailings dewater quickly producing 66-68% solids. The flocculated tailings produced similar filtration rate before and after shear. Mg(OH)2-PAM treated oil sand tailings produced twice the filtration rates (220 ml/min) compared with Al(OH)3-PAM. This study clearly indicates that Mg(OH)2-PAM and Al(OH)3-PAM is a viable solution while decreasing the mass-production of tailings and increasing the rate of water-recycle.

Jan 1, 2012

By Steve Kral

As the mining industry watches commodity prices continue to soar, the question on most everyone’s mind is how long will this upcycle last. The con-census among speakers and attendees at the SME Annual Meeting and Exhibit is that this cycle is sustainable. The buzz at the meeting was, of course, the current boom cycle the industry is in. Most agree that China’s huge appetite for mineral commodities is part of the force driving the upturn. But the improving economies of other developing nations also plays a role. However, along with the good times come challenges. Speakers at the keynote session addressed some of the challenges and offered their opinions on the sustainability of the boom.

Jan 1, 2006

By Y. Nien Wang

The Devil?s Slide portion of Highway 1 between Pacifica and Montara is often closed due to the instability of the adjacent slopes. Following many years of public input and careful evaluation of alternatives, Devil?s Slide will be by-passed via two inland tunnels, providing a safe, dependable highway between Pacifica and Montara. For the twin tunnels, each 9m diameter tube will accommodate only one traffic lane. Each tunnel tube will accommodate a 3.6 meter roadway, 0.6 meter and 2.4 meter inside and outside shoulders respectively, and 1.2 meter walkways on each side. Cross passages will connect the bores at about 120 meter intervals and jet fans will provide tunnel ventilation. The twin tunnels are approximately 1,250 meter long and 9 meter wide. Excavation will progress from south to north using tunneling techniques that rely on inherent rock strength for support known as the New Austrian Tunneling Method (NATM). Both tunnels will be excavated at the same time, one tunnel face approximately 40 meters ahead of the other. Staggering the tunnels reduces the likelihood of damage from blasting in alternate tunnels. The work schedule is 24 hours a day, 7 days a week resulting in a 24-month timetable to break through to the north portal.

Jan 1, 2008

By G. Daws, N. Woodward, A. Oxley

Many mines around the world have been seeking ways to achieve sustainable developments and reduce operating costs. Rockbolting is a technology that needs to be considered as it provides a means of reducing operating costs and improving safety whilst allowing improved production to be achieved. The problem is how to introduce this technology in the knowledge that a successful outcome will be achieved. Rockbolting is a complete package and not only includes the consumable materials but also training, production of Codes of Practice, Monitoring Schemes, Refinement of Design and long term management of the systems. This paper explains the methods that have been applied for its successful introduction and discusses several case studies. It does not give fine detail but is intended to allow decision makers to gain a basic understanding of the method used to successfully introduce rockbolting to a mine.

Jan 1, 2011

By B. R. Zernich

Advances in tunneling technology, such as Earth Pressure Balance and Slurry Shield methods, have allowed the tunneling industry to construct tunnels in increasingly difficult ground conditions. In recent years, a number of civil projects including large diameter train tunnels, subway tunnels, water tunnels, sewer tunnels, and combined sewer tunnels have been successfully completed deep beneath the water table in soft ground conditions utilizing modern day Tunnel Boring Machines (TBM). With the increase in difficult ground conditions and higher water pressure comes the inherent need to utilize compressed air to gain access to the TBM?s cutterhead and cutting tools. This paper focuses on one such instance in Los Angeles, CA in which Traylor Brothers Inc. performed a cutterhead intervention by compressing the heading of an 11-foot diameter tunnel to approximately 3 bar gauge pressure. This paper focuses on the environmental controls used to manage ventilation, oxygen levels, temperature, and pressure, as well as discusses the problems associated with toxic gases and the increased risk of fire. The paper will also cover the physical science of the environment and the increased risks of performing basic job functions while in a compressed air heading.

Jan 1, 2009

By Steve Kral

For an industry that provides more than half of the nation’s energy needs, the U.S. coal industry still attracts negative publicity. However, the nation’s energy appetite continues to increase. And political leaders and the public are beginning to understand that alternative fuels will not be enough to keep up with that appetite. Does that mean the nation will now embrace the coal industry? No, according to speakers at the Rocky Mountain Coal Mining Institute (RMCMI) meeting. The industry still needs to sell the public on coal’s advantages over other fuels. And the industry must continue to develop technology that will allow coal to meet and exceed strict clean air and clean water regulations.

Jan 1, 2002