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By Mike McWha

Drivers to increasing RM use ?Compliance issues ?Section 12 JSE Listing Rules ?Canadian NI 43-101 ?Sarbanes Oxley ?Shortage of African ore reference materials ?Poor perceptions about quality of some local RM?s

Jan 1, 2005

By Frank P. Frandina, Diane R. Hirsch, David P. Field, Colin R. Weeks

To accommodate growth in air service and to follow the Master Plan for long-term airport development, the Metropolitan Washington Airports Authority established thed2 Development Program at Washington Dulles International Airport. A sub-surface Automated People Mover (APM) System is under construction to replace the Mobile Lounges as the primary people mover system at Dulles. To minimize disruption to airport operations the majority of the APM System’s crossings of Taxi lanes will be undertaken using Tunnel Boring Machines (TBM) or the New Austrian Tunneling Method (NATM). This paper explores the planning and design of these shallow tunnel segments for future generation aircraft loads, within the constraints of minimal construction access under post 9/11 security requirements and the context of the overall airport expansion program.

Jan 1, 2005

"Lax, misguided, and dangerous" is Rep. James Santini's description of the official US position on strategic nonfuel minerals. Santini (D-NV), chairman of the House Mines and Mining Subcommittee, criticized the Interior Department for "its long record of benign neglect" regarding the domestic minerals crisis. Santini made his remarks at a news conference at the American Mining Congress convention in San Francisco, where he released his subcommittee report "US Minerals Vulnerability: National Policy Implications." The report-said to be the first major congressional study of the minerals issue by a committee of jurisdiction is the result of a two-year inquiry. The investigation was undertaken, according to the chairman, "because no person or agency in the executive branch of government fully grasps the critical importance of nonfuel minerals to the nation's economy, defense, and quality of life." The report also urges a larger role for the Department of Defense, which has "stood passively by for many years as a consuming by-stander," according to the report. President Carter's incomplete Non-fuel Minerals Policy Review also drew the committee's ire; Santini calls it "a tragic waste that cost tax-payers $3.5 million and the loss of some 13,000 person-days." The subcommittee examined the following issues for its report: • The US minerals industry's inability to meet national raw material needs under a "hodgepodge of contradictory, restrictive, and irrational" federal regulations; • Dependency on foreign sources of strategic minerals in times of "increasing resource nationalism" and "Soviet mineral expansionism;" • National security needs for foreign mineral resources that do not have effective substitutes; • The US government's approach to national minerals policy "amid a growing realization that such a policy does not exist." The subcommittee report includes an analysis of public and private studies on nonfuel minerals and discusses a series of policy problem areas that negatively affect domestic production. Capital formation disincentives, tax policies, antitrust enforcement, environmental laws, health and safety regulations, technical problems, and restricted access to federally-controlled public lands contribute to what Santini calls a "tragic irony." "The irony is that we are a nation vastly rich in mineral resources yet our own government chooses to stifle development of these critical raw materials and thereby increase offshore reliance. The tragedy is that we also are ensuring US vulnerability to severe economic dislocations and a weakening of our national security." In just six years, from 1973-1978, the US trade deficit in nonfuel minerals rose from $2 billion per year to $8 billion, according to the report. The country imports more than 50% of 23 critical minerals, including 100% of its manganese, chromium, cobalt and platinum. The US is promoting its dependence on foreign mineral sources at the very time the security of many of those sources is becoming less certain, the report notes. Santini said the subcommittee investigation revealed a vulnerability that may be more serious and pervasive than that of foreign oil. The US may be able to develop alternate energy resources, but there are no effective substitutes for many nonfuel minerals. The report also discloses that US stockpiles of critical and strategic minerals are of inadequate supply and quality. Holdings of some vital minerals are far below present objectives, and for some there are no holdings at all, according to Santini. To resolve the current crisis, the report makes the following recommendations: • Complete immediately President Carter's Interagency Nonfuel Minerals Policy Review; • Implement (throught the Interior Department) the 1970 Mining and Minerals Policy Act; • Create an Office of Energy and Minerals with the same stature, power, and oversight responsibilities as the Council on Environmental Quality; • Ease federal restrictions on mineral exploration and development on public lands and implement a complete review of public land use policies; •Fund for and fulfill US nonfuel minerals stockpiling objectives; •Increase federal funding for non-

Jan 11, 1980

Cripple Creek and Victor Gold Mine is an epithermal gold deposit located in the Rocky Mountains of Colorado. Surface operations are continuing along with an expansion for an onsite mill to take place in the next couple of years. The surface pit is currently progressing downward from an oxidized zone into a transitional, more sulfide/ telluride-rich zone. Gold mineralization includes native gold, electrum, and tellurides. Cyanide heap leaching is the recovery process for the oxidized ore with the sulfide/telluride-rich ore to be processed at the new onsite mill. Ore characterization prior to mining is vital when there are two possible recovery processes. This characterization is dependent on geometallurgy. To identify the causes of the variability, multiple parameters are analyzed and assayed. These parameters are measured by a variety of analytical testwork. The analytical testwork provides measurements for the desired parameters. Geometallurgical models are developed for the parameters per recovery process, so estimations can be inserted into the resource model to optimize operations and recoveries.

Feb 27, 2013

By W. R. Reed, G. J. Joy

The personal dust monitor (PDM) is a new coal mine respirable dust sampling instrument that has the ability to provide accurate end-of-shift and real-time respirable dust exposure data. A hypothetical cost comparison analysis of the PDM with the current MSHA-required coal mine dust personal sampling unit (CMDPSU) was conducted. Some simplifying assumptions were made to create hypothetical cases for analysis. This analysis was limited to respirable dust sampling of one designated operator (DO) and one designated area (DA) for one mechanized mining unit (MMU) which operated one shift per day. Only sampling intervals of the minimum sampling as required by federal regulations and continuous sampling were analyzed. This cost analysis from the company perspective is only one part of an overall cost/benefit analysis that should be conducted at a later date. In this analysis, company-associated costs were examined for both sampling systems. Results show that the PDM, while it has high initial costs of approximately $12,600, may be a cost-effective sampling system for measuring coal mine respirable dust. The estimated present worth cost of conducting the minimum required dust sampling over a five-year life ranges from $5,850 to $19,000 for the CMDPSU, with the higher present worth cost including costs of potential violations incurred. For the PDM, the comparable present worth cost is $14,900 to $19,300, with the lower present worth cost representing a lower capital cost of $8,150 per unit if more than 850 units are produced per year, while the higher present worth cost reflects the result with the higher $12,600 capital cost.

By E. R. Spencer

An assessment of U.S. western hard-rock miners? noise exposures was conducted as part of a multi-year National Institute for Occupational Safety and Health (NIOSH) survey of noise exposures in each sector of the mining industry. Noise from selected mining equipment and operator noise exposures were measured, analyzed, and tabulated for dissemination to the participating sites and are being used to direct NIOSH research and interventions to address the greatest noise hazards. Eighty-two noise dosimeter measurements were obtained, along with time-motion studies as the miners operated hard-rock mining machines. Ninety-six percent of the operators had daily noise doses that exceeded the Mine Safety and Health Administration?s permissible exposure level. The average gold miner dosages while operating the following equipment were: haul trucks - 261%, load-haul-dumps (LHDs) - 235%, single boom drills - 221%, bolters - 214%, and dual boom drills - 163%. The worst exposure level was a silver miner with a daily dose of 873%. Time-motion data showed that this miner?s exposure accumulated most rapidly while operating a jack-leg drill. These results will be used to help prioritize noise control development by NIOSH and other partners. Disclaimer: The findings and conclusions in this report have not been formally disseminated by the National Institute for Occupational Safety and Health and should not be construed to represent any agency determination or policy.

Jan 1, 2009

By Bill Parnell

"Friction winders and double drum winders have been used in the vertical shaft mining industry for over 100 years. In that time, there have been many changes made in the electronic and mechanical fields of hoisting, but few changes made in the manufacturing and performance of steel wire rope, until recently.In the past ten years, with the advent of high polymer thermoplastics, the industry has seen some major advancements in steel wire rope. By incorporating a polymer with steel, improvement of rope life and reduction of costly maintenance downtime has been accomplished.IntroductionThe Williams Mine is Canada's largest gold producer with an annual production of some 500 000 ounces of gold from 2.2 million tonnes of ore. The Williams Mine is situated in the Hemlo area of northwestern Ontario, approximately 40 Ian east of the town of Marathon. It is operated by the Williams Operating Corporation which is owned equally by Teck Corporation and Homestake Canada Inc. It is one of three adjacent properties forming the Hemlo gold camp."

Jan 1, 1995

By George H. Hope, Steve Ciccone

"The Red Dog Mine is both the largest known zinc reserve and the largest zinc producer in the world. The mine started in 1989, and by 1999 had increased production from approximately 300,000 tonnes per year (t/yr) of zinc concentrate to in excess of 900,000 t/yr. The VIP Mill Optimization Project further increased zinc concentrate production to 1.1M t/yr while improving both product quality and zinc recovery. The Mill Optimization project also addressed a number of issues related to risk reduction: power generation capacity, water treatment capacity and concentrate thickening. The project was faced with numerous challenges, the most daunting of which was the schedule. This US$105M project was executed, from conception to completion, inside of two years. Less than nine months elapsed from concept to delivery of materials and equipment to site. The project also faced a 100-day ice-free shipping window, the challenges of construction in an Arctic environment, and an extremely tight labour market for qualified craft personnel. These challenges were successfully addressed with several innovative approaches to project execution, including an Alliance contracting arrangement between the owner, engineer and contractor; full integration of the team; construction of modules in Anchorage; and fast-track engineering, procurement and construction.INTRODUCTIONThe Red Dog Mine, which began operations in 1989, is located above the Arctic Circle in Northwest Alaska, approximately 145 km north of Kotzebue (Figure 1). An 80-km road connects the mine site to the DeLong Mountain Transportation System (DMTS) port site. Red Dog is the largest known zinc deposit in the world, with known reserves totalling 94.5M tonnes, and is the largest zinc producer with a concentrate production rate of more than 1.1M t/yr.Open-pit mining is by typical drill, blast and load operation using moderately sized mining equipment. Ore is processed through conventional crushing, grinding, and flotation to produce separate lead and zinc concentrates. Filtered zinc and lead concentrates are trucked year-round to the DMTS port site, where they are stored in two A-frame buildings, 330 and 440 m long. A lightering barge system is used to transfer concentrate from the shallow water load-out to deep-sea vessels anchored approximately two miles offshore. Shipping is limited to a 100-day, ice-free window beginning in early July."

Jan 1, 2003

By H. Akbari

The ordinary Portland cement (OPC) is the key pozzalonic component of the concrete mix, widely used as the construction material world-wide. Billions of tons of OPC are used in the construction industry each year. However, calcinations of limestone and silica that produce OPC also produce almost an equal amount of CO2 during the cement manufacturing process. Thus, OPC production accounts for nearly 7% of all anthropogenic CO2 emission each year. The main objective of this study was to develop a geopolymer-based composite to be used as a substitute for OPC in concrete application to significantly lower the carbon foot print of the construction industry. A waste material produced during the coal combustion process was used as the main raw material for the geopolymer-based composite. It was mostly the non-metallic content of the F-type fly ash produced from the combustion of bituminous coal. The authors envisioned to extract some of the valuable metal oxides from fly ash prior to using the major non-metallic portion of the fly ash for geopolymer concrete application. The results obtained from this study exhibited that the compressive strength of the geopolymer concrete compares favorably with that of the conventional concrete prepared using the OPC.

Feb 27, 2013

No one process, product or effect of the minerals sector can be viewed in isolation when addressing sustainable development. Meaningful assessments of the minerals sector require that its processes and production are drawn together in a generic framework that gives a holistic view of its performance and progress. Lifecycle Assessment is increasingly accepted as an appropriate means of constructing such a framework. It is a step beyond using the simplistic concept of the triple bottom line of social, environmental and economic performance to drive and communicate sustainable development. However, fundamental questions need to be raised about the scope and purpose of lifecycle assessment, such as what effects and performances should be assessed, for whom should they be assessed, and what performance indicators should be used and how should they be selected. The principles of eco-efficiency, industrial ecology, The Natural Step (TNS) and other pertinent philosophies and initiatives driving mineral sector sustainable development are outlined to support a lifecycle stewardship vision for the minerals sector. Articulating this vision through a holistic lifecycle indicator system showing inputs and outputs, natural partnerships, effects on community, environment and economy facilitates recognition of problems, opportunities and partnerships that can be usefully pursued.

Jan 1, 2002

By Tony Lipiec, Greg Gosson

"When it comes to new mines being developed, there is a general industry consensus that most low-hanging fruit has been picked. Many projects currently in the mine development pipeline have been around for decades, but were held back because of technical challenges. Future development of these deposits will likely require access to the public capital markets, and in Canada that means providing scientific and technical disclosure on these deposits in compliance with NI 43-101. As many of these “challenged” projects have metallurgical issues, the companies that own the projects need to ensure their metallurgical Qualified Persons provide transparent disclosure regarding proposed solutions to those issues.This paper provides an overview of the disclosure requirements under NI 43-101 that are pertinent to metallurgists, and other Qualified Persons who prepare technical disclosure regarding the metallurgical characteristics of a mineral project. It lists the triggers for a technical report under NI 43-101 and Canadian stock exchange policies, and identifies the sections of the report that should involve input from a metallurgist or process engineer. It briefly outlines new civil liabilities under Canadian securities laws that increase the possible consequences for not complying with the technical disclosure standards.These materials are provided for general information purposes only and do not constitute legal advice. Readers are advised to seek specific legal advice from their own legal counsel in relation to any decision or course of action contemplated."

Jan 1, 2010

By R. L. Grayson, F. Giana, R. Aspinwall

Small-mine and contractor Fatal Incidence Rates have been a problem for over 20 years in the coal industry, and the rates persist as unacceptably high. This paper briefly retraces historical information and data on the continuing problem and recounts the many unsuccessful efforts and initiatives to address the problems effectively. Next the results of a review of international literature on addressing the problems are presented. After focusing on a method to pinpoint the trouble spots more specifically through a nested data analysis, suggestions are provided on how the problem may potentially be addressed more systematically and effectively in the U.S.

Jan 1, 2006

By M. Javier

This concept paper is presented in the hope of raising the awareness of mankind on the necessity for its peaceful coexistence with nature. It is a food for thought. It takes compromise and sacrifice of people, who will have to learn to curb their greed and move toward a more organic form of prosperity. A nature-friendly sustainability is first step toward the protection of nature that is critical to the mutual survival of mankind and nature. People need the resources from the finite earth to survive and nature needs the prevention of human destruction in order to continue to regenerate and provide. The contemporary notion of sustainability is self-serving. It serves the interest of industry by camouflaging itself to look like nature?s protector. The ?sustainability? concept presented in this paper aims to extend the longevity of the utilization of the limited natural resources for many generations to come. It is an important, responsible first step in creating a healthy sustainability concept that, when implemented, extends the longevity of mankind by the most efficient use of the finite resources on this limited Planet Earth, all the while taking into consideration the increase in anthropogenic activities due to exponential human population growth. This new definition of ?sustainability? has completely different characteristics than its contemporary versions. Nature has its own destiny, rules and principles. Being a part of nature, human society depends on it for survival and must play by its rules and never the other way round as in its initial pretensions. Society should not try to humanize nature, but rather to respect the rule of the nature in a peaceful way of co-existence. When implemented, this new concept of sustainability aims to affect the designs of engineered structures and revolutionize the recovery methods and processing of natural resources, such as mineral resources in the most efficient manner. Finally, this paper intends to stimulate critical thinking and initiate serious discussions aiming at producing a general consensus for the best definition for human society to not only enrich, but to extend its existence. Thus, the spirit of this new definition is pro future generations and environment. KEYWORDS: Sustainability Definition, Nature, Geomímic, Deproduction.

Feb 27, 2013

By Luis A. Tondo

The Paracatu Expansion Project III in Brazil was implemented between 2006 and 2008 to increase the existing capacity from 20 to 61 Million tons per year of gold ore treatment. This expansion led the Brazilian subsidiary of the Canadian Kinross Gold Corporation to become the single largest gold producer in Brazil and the largest single gold concentrator in the world, with a nominal capacity to treat around 167,000 tons per day of ore. This paper describes the Project Development areas for the Paracatu Expansion, using the approach proposed by the Project Management Institute (PMI) and the methodology included in the PMBOK (Project Management Book of Knowledge). The author has more than 20 years of experience in the gold mining industry, having worked as a plant metallurgist, mill superintendent and development manager for RPM until he took the position as the Project Manager of the Paracatu Expansion III in 2005. Luis Tondo has a BSc in Mining Engineering from UFRGS-Brazil, an MScEng from the University of Queensland - Australia and an MBA degree from FDC-Brazil. Luis is currently based in Santiago-Chile, acting as the Project Director for developing projects in Latin America for the Kinross Gold Corporation.

May 1, 2009

By M. Mankosa, G. Taylor, G. Luttrell, J. Yasalonis

Several industrial-scale HydroFloat separators have recently been installed at Mosaic’s South Fort Meade beneficiation plant for the purpose of improving phosphate recovery and throughput capacity. This technology was implemented after numerous laboratory, bench-scale, and on-site, pilot-scale test campaigns. The results from this detailed test work provided sufficient justification for the complete retrofit of the existing coarse and ultra-coarse flotation cells. Data indicate that the metallurgical results obtained with the full-scale separators are consistent with that obtained during both the bench- and pilot-scale evaluations. The apparent benefits, theory of operation, and commissioning of the equipment are also discussed.

Jan 1, 2007

By L. Chen, G. A. Brooks, S. A. Nightingale

The dissolution of alumina and magnesia has been investigated using laser scanning confocal microscopy (alumina) and a rotating finger apparatus (magnesia) to assess the effects of temperature, composition and forced convection on the rate of dissolution in CaO-SiO2-Al2O3based slags. The two techniques have differing strengths and limitations, and provide complementary methods for studying dissolution. Alumina dissolution was studied for temperatures from 1477 to 1577°C. Based upon the data, the rate controlling mechanism was thought to be mass transfer control in the slag. The diffusion coefficients for the alumina particles are estimated to be in the range 10-11to 10-10m2.s. MgO degradation for sample rotation speeds of 50 to 800 rpm at 1500 and 1530°C was studied for both congruent and incongruent dissolution. The results show that the rate of dissolution for this is primarily controlled by a diffusion mass transfer mechanism for congruent dissolution except at the highest rotation speed. For incongruent dissolution, the mechanism is much more complex, with the morphology and distribution of the spinel reaction product having a significant effect. At high speeds and prolonged times, mechanical forces played a major role in the degradation process. Keywords; kinetics, corrosion, refractories, dissolution rate, inclusions, mass transfer, slags, steelmaking

Jan 1, 2004

By W. H. Bassett

THE ease and value of the application of spectrum analysis to industrial chemistry appears to be appreciated in few of the large works laboratories of this country. For 8 years, this analysis has been of great value to the authors in both analytical and metallurgical work. To the analyst the complete qualitative analysis of an unknown alloy, revealed by a spectrogram, is a sure basis for the planning of the most direct and rapid method of attack. As the determination of each element proceeds, the purity of precipitates may be checked as often as desired. The spectrograph proves invaluable in the recognition of impurities, the separation of which would entail a lengthy and difficult procedure, or when the weight of an unknown is less than is necessary to complete the desired determinations. A few hundredths of a gram will usually suffice for spectrographic analysis. In the separation of the rarer elements, the spectrograph will show, with precision, the point where each step has been successful. In zinc of certain classes, indium, gallium, and germanium have been isolated in this way; the presence of antimony in lake coppers has been proved; and bismuth has been detected in zinc and in alloys where the presence of a few thousandths of a per cent. would be harmful. An antimony precipitate in a delicate determination may contain a considerable proportion of tin or arsenic, both of which will be revealed. The spectrograph is consequently important to the metallurgist as well as to the analyst.

Jan 2, 1922

A Loss of Strength of Gold Sulfide Concentrate Before Grinding and Cyanidation Using Magnetic Impulse Treatment Gold recovery from sulfide concentrates is going with cyanidation usually. The fine grinding to 95 per cent -0.020 mm is required for refractory concentrates, in which gold encapsulated by sulfides. According energy consumption is 10 and more kW h/ton. At this paper we suggested to use magnetic-impulse treatment with small energy consumption 0.1-0.2 kW h/ton for loss of sulfide strength before grinding and cyanidation. The object of studies was the gold-pyrite flotation concentrate which was produced from ores at the Kumtor Mine, Kyrgyzstan. The concentrate composition, physic-mechanical properties and loss of strength mechanism were studied there. The tested concentrate assayed, per cent: 62.5 pyrite, 10 feldspar, 10 mica, 5 quarts, 5 carbonates, 4 haematite and another. Haematite has intimate intergrowth with pyrite ? partially with quarts. The magnetic susceptibility of haematite and less pyrite causes in these grains and mineral complex the effect of magneticstriction. As a result numbers of deformations are increased and minerals and gold are also exposed. Lateral and longitudinal strains in the minerals by magneticstriction were calculated in this work. By quantitative analysis of pyrite mono fractions were showed next micro impurities: alumina, arsenic, nickel and others elements. These micro impurities are generated a charged dislocation, cracks and micro cracks. The inter-granular links at a boundary of haematite-pyrite, pyrite-quarts, haematite-quarts have disintegrated. The dislocation is depended from mineral modulus elasticity. It was determined an indicator of mineral electro-mechanic sensitivity which characterises a conversion of electro-magnetic energy to mechanic energy. Pyrite has most dielectric constant and electro-mechanic sensitivity as haematite and quarts. The dislocations in pyrite are account for clacks and a loss of mineral strength. Size analysis of the flotation concentrate after magnetic-impulse treatment is shown the increasing the content of thin fractions by comparison no treated concentrate. Magnetic-impulse treatment has increased the effect of the next fine grinding too. The electronic microscopy has confirmed a loss of strength of gold sulfide concentrate. The gold recovery by cyanidation increased too after preliminary magnetic-impulse treatment of concentrate by laboratory tests. The magnetic-impulse concentrate studies at the Kumtor plant have showed that a recovery gold increase in the processing of cyanidation. The consumption of energy also reduced.

Sep 13, 2010

By M. Massinaei, S. Abasi, M. Oliazadeh

Reliable measurement and control of the pulp-froth interface (froth depth) in the flotation columns is critical to achieve the desired metallurgical performance. Shallow froths result in a reduction of grade because of particle entrainment and deep froths reduce recovery because of the drop back of entrained and weak hydrophobic particles to the pulp zone. The cleaner circuit at Miduk copper concentrator consists of three parallel MicrocelTM flotation columns 4 m in diameter and 12 m in height. The interface level of the flotation columns is measured by two pressure sensors located at 1.4 and 2.4 m from the cell lip (in the collection zone). In this study the performance of the level detection system at different operating conditions was evaluated. A calibrated float-ultrasonic location system was used for measuring the actual froth depth. The results indicated that the existing level control system was subject to considerable error. The absolute error was found to be 33.27 cm. This was mainly attributed to the constant set-point value assigned to the froth density (ρf=0.3 g/cm3), which actually varies with the operating conditions. The actual froth density at different conditions was calculated and its average value (ρf=0.12 g/cm3) was re-set in the control system. This resulted in substantial reduction in the level-detecting error. Recommendations for more accurate measurement of the interface level were presented. INTRODUCTION Froth flotation is a complicated process because of many involved variables. One of the most significant controlled variables in the flotation process is the pulp-froth interface (froth depth). The froth depth has a profound influence on the metallurgical performance parameters (i.e. grade and recovery). Shallow froths result in grade reduction because of particle entrainment and deep froths reduce recovery resulted from the drop back of entrained and weak hydrophobic particles to the pulp zone (Finch and Dobby, 1990). Various techniques have been developed for measuring the interface level of the flotation cells in the last few decades. These techniques can be classified as: Techniques based on hydrostatic pressure measurements (Finch & Dobby, 1990), Techniques based on the density gradient (float) (Moys & Finch, 1988), Techniques based on conductivity measurements (Uribe-Salas, 1991), Techniques based on temperature measurements (Moys & Finch, 1989).

Jan 1, 2019

At present, discounted cash flow analysis is generally accepted as the preferred method of valuation of mine projects in surface coal mining. One of the major reasons for that is its ability to take into account the time effect of money over the life-of-mine. As a looking-forward method, it requires forecasts be made with regard to economic, technological, technical, geological, and environmental conditions that will prevail in the future. All forecasts are inherently uncertain as they are a function of the uncertainty of all variables of the discounted cash flows analysis. This indicates that the only alternative for modeling the uncertainty in the project evaluation is the development of adequate risk models to serve the decision-making process. The paper offers a model of project cash flows at risk in strip coal mining, which is an integrated corporate risk management solution. The model is based on a stochastic approach that provides the answer to the question about how large is the deviation between stochastic cash flows and the planned value (or that used in the budget) at each time step of the discounted cash flows analysis, that is due to the uncertainty in the model variables. A solution is worked out for the allowable range of the stochastic cash flows variation that determines the probability of achieving the planned value of a mine project. The Monte Carlo simulation technique is used to model the stochastic behavior of the project variables. A case study of an opencast coal mine project is provided to illustrate the applicability of the risk model. The results obtained provide a new understanding of the mine project risk as a component of the project discount rate.

Jan 1, 2006