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By COLIN A. LAWRENCE, Anthony Del Vescovo

All Rights Reserved. Printed in the United States of America. Information contained in this work has been obtained by SME, Inc. from sources believed to be reliable. However, neither SME nor its authors guarantee the accuracy or completeness of any information published herein, and neither SME nor its authors shall be responsible for any errors, omissions, or damages arising out of use of this information. This work is published with the understanding that SME and its authors are supplying information but are not attempting to render engineering or other professional services. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Any statement or views presented here are those of individual authors and are not necessarily those of the SME. The mention of trade names for commercial products does not imply the approval or endorsement of SME.

Dec 1, 2017

By Gregg Davidson, Lonnie Jacobs, Brett Zernich, Alan Howard, Robert Pintabona

All Rights Reserved. Printed in the United States of America. Information contained in this work has been obtained by SME, Inc. from sources believed to be reliable. However, neither SME nor its authors guarantee the accuracy or completeness of any information published herein, and neither SME nor its authors shall be responsible for any errors, omissions, or damages arising out of use of this information. This work is published with the understanding that SME and its authors are supplying information but are not attempting to render engineering or other professional services. If such services are required, the assistance of an appropriate professional should be sought. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Any statement or views presented here are those of the authors and are not necessarily those of SME. The mention of trade names for commercial products does not imply the approval or endorsement of SME.

Dec 1, 2014

By Bradford F. Townsend, Marc R. Kritzer, Michael F. Roach, Dennis Ofiara

All Rights Reserved. Printed in the United States of America. Information contained in this work has been obtained by SME, Inc. from sources believed to be reliable. However, neither SME nor its authors guarantee the accuracy or completeness of any information published herein, and neither SME nor its authors shall be responsible for any errors, omissions, or damages arising out of use of this information. This work is published with the understanding that SME and its authors are supplying information but are not attempting to render engineering or other professional services. If such services are required, the assistance of an appropriate professional should be sought. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Any statement or views presented here are those of the authors and are not necessarily those of SME. The mention of trade names for commercial products does not imply the approval or endorsement of SME.

Dec 1, 2008

By Mirko Martini, Marcelo Benaglia, Andrea Codalli

Riachuelo Lot 3 forms part of a sanitation programme being implemented in Argentina to relieve the Riachuelo river basin from its current contamination. The programme, by far the most important in its kind in the country during the last decades, will expand the sewage capacity of Buenos Aires and will benefit an area of 4.3 millions inhabitants by intercepting a number of waste water discharges and conveying them to a new treatment plant prior to final discharge into the Rio de la Plata. The project foresees amongst other works the construction of an onshore 48 m deep shaft at the outlet of the treatment plant plus a 4,3 m inner diameter outfall tunnel of 12 km length. The last 1.5 km of the alignment is fitted with 34 vertical risers jacked from inside the tunnel to allow the discharge and dilution of the treated effluent into the Rio de la Plata. This paper describes the peculiarities and challenges, both in terms of design and in terms of construction, of the outfall tunnel, which was entirely bored under the Rio de la Plata using a 5.2 m cut diameter Tunnel Boring Machine (TBM). On one hand, the tunnel segmental lining was designed to work in tension during the system flow rate peaks while on the other the tunnel excavation faced a variety of complex conditions, such as crossing water bearing permeable soft ground formations and advancing at face pressures in excess of 3,5 bars for the entire route.

Jun 13, 2021

By Alfred Weiss

Selecting a minicomputer is not unlike selecting a costly piece of mining equipment such as a truck, shovel, crusher, or conveyor belt system. A marked difference might lie in the frequency at which such selection takes place; another difference might be mine management's familiarity with mining equipment vis a vis a minicomputer. These basic differences might prompt a mining company to seek the aid of a consultant when selecting a minicomputer system. Advantages and Disadvantages The fundamental advantage of employing an independent consultant is that it provides management with a source of knowledge and breadth of experience not readily available within the organization. If the consultant has a minerals background, such knowledge and experience are further enhanced by actual experience in exploration, mining, and mineral processing. If the consultant has worked within a mining company, such hands-on experience is supplemented with a meaningful understanding of the client's business; this facilitates communication between the consultant and members of the client organization. The consultant has been, so to speak, "in the client's shoes." There are several other advantages. Since computer systems cut across organizational boundaries, the independent consultant may be able to move within the organization more easily than an inside staff person to collect necessary information. Also, detachment from any manufacturer should provide the client with an objectivity and a set of recommendations as near optimal as feasible. The principal disadvantages lie in the area of continuity and accountability. Once the consultant's report has been submitted and his recommendations implemented, a discontinuity might occur. Also, if implementation does not provide the desired results, the consultant might not be available to correct the situation or account for actions taken. Proper selection of consultant services, relative to kind and duration, and the consultant's method of operation, will often prevent many of these aftereffects. Services Offered The professional consultant can help a client: •Define and summarize information systems technology* needs; • Evaluate alternatives such as in-house capability and capacity, time-sharing, or service bureaus; • Prepare a formal request for proposal (RFP) to be submitted to vendors; •Evaluate vendor proposals; •Evaluate the economics of lease vs. purchase; and •Assist in the conversion and installation. Thus, consulting services may range from evaluating an existing system and upgrading to a larger piece of equipment, to selecting a new first-for-the-organization computer. First, Define and Summarize Needs Regardless of circumstances, the most valuable document required before equipment selection is the information system plan (I/S plan). It helps insure that the company's information needs are met in a cost-effective manner. An I/S plan is usually a comporient of the mining company's overall business goals. Since an I/S plan is a formal vehicle for establishing and communicating the direction the organization intends to take to satisfy information requirements needed to achieve goals and objectives, most initial systems services are likely to center around creating such a document or updating an existing document. The trend toward company-wide I/S planning is increasing in the mining industry; however, smaller scale efforts focused at the information systems needs to support an individual

Jan 11, 1981

By Bernie W. Martin, Raymond Leray, Christian Criado

Aguas Argentinas,1 a consortium managed by Lyonnaise des Eaux of France and operator of the world’s biggest privatized water supply and waste water collection system for the City of Buenos Aires, a city of 9 million people, was faced with the daunting task of providing new service to 1.6 million more people in the first five years of their 30 year concession. Aguas Argentinas elected to use the Negotiated Compressed Process - NCP - for the fast track implementation of a 15000 meter, 3,5 meter diameter tunnel, a key component of the infrastructure master plan. NCP was developed by Klohn Crippen for the $200 million international railway tunnel between Canada and the United States. The conceptual design of the project was performed by Safege Montgomery-Watson, who engaged Klohn Crippento assist with the NCP, the preparation of the tender documents, and implementation of theproject during construction. The process included the purchase by the client Aguas Argentinas of two sophisticated 4 metre diameter earth pressure balance tunnel boring machines from Herrenknecht of Germany. Construction of the tunnel is being performed by the consortium Wayss & Freytag (Germany) and Sollazzo Hnos S.A. (Argentina). The water tunnel is being built with a one pass, bolted segmented gasketed reinforced concrete liner. The purpose of this paper is to describe a transferable methodology for this innovative contracting procedure, the project organization and quality control plan for this important world class tunnel project which is designed to service one of Latin America’s largest metropolitan areas.

Jan 1, 1997

By Steve Stuart

Deep-sea mineral SMS deposits present some of the world’s most challenging conditions for drilling equipment. As robotic seabed drilling services mature so too the ways that clients engage with service providers to maximise their data requirements. This presentation reviews key considerations for planning and executing a successful seabeddrilling program in variable mineralised deposits. Some of the means of collaboration between robotic seabed drilling contractors and those hiring their services are explored; where improved efficiencies and recoveries over the period of a drilling programme could be achieved. Potentially new technology or methodology can be looked at to further improve these approaches.

Sep 1, 2014

By Victor Romero, Steve Redmond

All Rights Reserved. Printed in the United States of America. Information contained in this work has been obtained by SME, Inc. from sources believed to be reliable. However, neither SME nor its authors guarantee the accuracy or completeness of any information published herein, and neither SME nor its authors shall be responsible for any errors, omissions, or damages arising out of use of this information. This work is published with the understanding that SME and its authors are supplying information but are not attempting to render engineering or other professional services. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Any statement or views presented here are those of individual authors and are not necessarily those of the SME. The mention of trade names for commercial products does not imply the approval or endorsement of SME.

Dec 1, 2011

By Shemek Oginski, MARK C. JOHNSON

All Rights Reserved. Printed in the United States of America. Information contained in this work has been obtained by SME, Inc. from sources believed to be reliable. However, neither SME nor its authors guarantee the accuracy or completeness of any information published herein, and neither SME nor its authors shall be responsible for any errors, omissions, or damages arising out of use of this information. This work is published with the understanding that SME and its authors are supplying information but are not attempting to render engineering or other professional services. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Any statement or views presented here are those of individual authors and are not necessarily those of the SME. The mention of trade names for commercial products does not imply the approval or endorsement of SME.

Dec 1, 2015

By William M. Gleason

Hard times continued to plague the industry when the calendar rolled over to 2000. During 1999, the United States economy had grown vigorously, capping the longest economic expansion in United States history. However, the mining industry was not so fortunate. Commodity prices remained in a slump in the “new-economy” that was fueled by excitement and speculation about the power of the Internet during the infancy of the Information Age. Much of the investment money that once went to mining and exploration was now headed to the world of virtual gold mines. SME President Donald E. Ranta implemented new technology into his plans for SME. His two major goals were new membership growth and to foster the establishment of the comprehensive Internet presence for the Society’s technical information. His strategic priorities included enhancing the quality and quantity of publications, programs, meetings and short courses. “The Internet is the vehicle that will advance the priorities,” he said.

Jan 1, 2007

By Hans W. Schreiber

Most geologic and mining engineering consulting firms* began to experience the recession with declining billing levels, number of inquiries, and proposal requests in late 1981 or early 1982. As of today, most of them have been functioning at reduced income levels for nearly a year. And while many consulting firms have apparently reached a stabilized income level, they can see little prospect for attaining normal (pre-late 1981) billing levels and income for the remainder of 1983. A few firms have escaped being affected by the recession. Such com panies almost without exception are small (fewer than 20 personnel), offer a limited range in technical capabilities, and tend to be highly specialized in a particular niche. They include those specializing in the heap leaching of precious metals ores, in ground water testing programs, and in the derivation of computer-aided programs to monitor particular mineral processing functions. Those firms affected by the economic downturn have instituted a variety of policies and undertaken actions to cope with significantly reduced incomes to bring fixed costs in line with the depressed demand for services. These changes fall into the following broad categories: • management and management practices; • markets and market definition; • marketing and the pursuit of assignments; and • administration and personnel relationships. Not all of the perceived changes have necessarily been instituted by every consulting firm, and any one appears sporadically instituted. Management and Management Practices In favorable times the managers, and often the owners of the equity, of consulting firms tend to concentrate their attention on the part of the business they find most satisfying and enjoyable. For some, this means acting as project or assignment leaders, even undertaking a specific technical aspect of the job. For others, it means constant marketing with the associated heavy travel and entertainment schedules. In unfavorable conditions, such as the current recession, managers tend to spread themselves far more thinly, expending time and effort on all facets of the business including marketing, proposal preparation and cost estimating, budgeting, general administration, accounting and cash flow monitoring, project/assignment overview, and actual client work. The manager who in favorable times concentrated on client work is now less billable. The manager who concentrated on marketing is somewhat more billable. The manager now needs to pay attention to and expend equal effort on each facet of the business just to keep all the facets in relative balance. Falling behind schedule on a client job or carrying an unduly large percentage of accounts receivable exact a cost to the firm. Clearly the absolute cost to the firm is the same whether demand for service is good or slack. But in periods of slack demand the firm is frequently less able or even unable to bear such costs. Marketing and Market Definition Markets appear to have undergone some significant changes: • Federal and state governments have assumed a greater importance as providers of work vis-a-vis both industry and private groups. • Projects with increase-in-capacity aspects have given way to projects with maintenance or reduced operating cost aspects. • Projects searching for new deposits of minerals in generally new locations have given way to projects reviewing known mineral districts or known deposits. • Industrial mineral and mining companies have exhibited a great propensity to cut back the use of consultants and to undertake as much work as possible in-house. Further-more, a number of industrial mineral and mining companies have entered the competitive arena with consulting firms, submitting proposals (usually to the federal government) in an effort to keep their staffs intact and occupied. In response, consulting firms have reevaluated their capabilities by reviewing old work and reassessing personnel. The purpose is to broaden the services offered and the potential client base, thus redefining the available market. For example, a firm specializing in assessment of technical and cost parameters of a deposit would normally assist a prospective lender in judging the deposit's suitability for project financing. That same company could easily expand into the field of analyzing production costs for an individual operation -something that is needed in periods when lower prices reduce profit margins. Similarly, a firm that has confined such economic assistance to commercial banks could expand to provide its expertise to other lending and even equity buying in-stitutions such as insurance companies. Marketing and the Pursuit of Assignments With few exceptions, consulting firms have significantly increased their

Jan 2, 1983

By A. López-Valdivieso, M. A. Corona-Arroyo, M. Llamas-Bueno

Magnetite (Fe3O4) ore is concentrated by low-magnetic-field drums to recover a magnetite concentrate that is low in silica (SiO2). The presence of SiO2 in the magnetite concentrate for steel production increases the steel processing costs, so a major challenge in magnetic concentration is to lower the SiO2 grade in the Fe concentrate. This work presents studies that were carried out on the removal of SiO2 from the magnetite concentration at the plant scale. Studies were performed with a three 36 × 96″ drum unit processing 46 ton/h of rougher magnetite concentrate. These studies showed that silica appears in the magnetite concentrate by three mechanisms, namely SiO2 entrainment in Fe3O4 chains, heterocoagulation between Fe3O4 and SiO2 particles, and mineral locking of SiO2 to Fe3O4. The SiO2 entrainment mechanism had the highest contribution (75%) to the SiO2 recovered in the Fe concentrate. Electrokinetic studies on Fe3O4 and SiO2 showed that heterocoagulation occurs because of the low negative zeta potential of the minerals at the pH of the plant slurry. This study also showed that a high percentage of ultrafine size SiO2 particles trapped in Fe3O4 agglomerates was not removed by the dilution water for the slurry fed to the drum. To lower the SiO2 recovery in the drum magnetic concentration process, work should be directed towards the removal of trapped SiO2 in Fe3O4 agglomerates.

By Frank Pepe, Nestor Garavelli

The 2023 Rapid Excavation and Tunneling Conference (RETC) will be held in Boston, MA and will include the presentation of 133 papers divided into 20 technical sessions during the 3 day conference that were selected from over 200+ papers that were submitted to the committee. The selected papers are included within this book to provide a comprehensive recap of the conference while also providing a source of reference for contractors and engineers in the future. The selected papers will include contributions from all divisions of the tunneling industry plus risk management and best contract practices. Boston is known to the tunneling industry for its complex and difficult tunneling history, specifically of recent memory the Central Artery/Tunnel Project also know as the “Big Dig” of the 1980s and early 1990s. The selection of Boston as a host city was fitting from a historical perspective and as avenue for the city to present its upcoming tunnel projects. RETC began in 1972 with the idea of sharing ideas, design and project construction experience, and new technology, between contractors, designers, owners and suppliers. The ability to provide a single location every other year for all facets of the tunneling industry to gather and discuss the aforementioned was and still is viewed as a way to help the tunnel industry grow. The lessons learned from completed projects, the advancement of technology which could be implemented into design and the presentation of new projects by owners/designers and contractors allows for the limits and complexity of upcoming projects to be expanded beyond our current capabilities. Our industry has never been as busy as it currently is, and we are seeing more future projects coming out for solicitation across all business sectors. With the good fortune that all of us have been blessed with one of the biggest challenges that we have been faced with is the shortage of future management on all levels for our projects including the labor force. We all want our industry to continue to grow and succeed, our most important assets are the people that we employ. Investing in the education and continued training of our work forces to be up to date with the latest technology and methods is the key to our success. This also includes develop, recruiting and mentoring of young students graduating college to join our industry so that we can all continue to grow. We hope that all those attending the conference will have the ability to attend as many sessions as possible and to expand their network within our industry. As in past years, scholarship students will be in attendance and we encourage all to offer these students an opportunity to visit jobs, attend learning sessions or future internships to expand their interest in our industry that needs an injection of young engineers to contribute and lead our future Rapid Excavation and Tunneling Conferences. The program chairs wish to thank the session chairs, co-chairs, authors, and other members of the RETC Executive Committee for their dedication to this conference. Last but certainly not least, we give special thanks to the SME staff for their hard work and enthusiastic support in making this conference possible.

Dec 1, 2023

By Ray Wood, Rene Sterk, Robin Falconer, Sean Aldrich, Simon Nielsen

"The Chatham Rock Phosphorite project is situated 450 km east of New Zealand at approximately 350 to 450 m water depth. The deposit occurs as a thin layer of phosphatebearing glauconitic sand at the surface of the sea floor and has a thicknesses typically ranging from 0 to 1 m. The sand layer consists of mainly silt and sand-sized sediments, with phosphatised chalk nodules up to 15 cm in diameter. Phosphate nodules were first discovered on the Chatham Rise in the 1950s by a New Zealand Government survey. During the 1960s to 1980s several private and government sponsored cruises explored the Chatham Rise and surrounding seafloor area. A total of 1174 samples were collected over a 600 km2 area with the majority of the samples collected using a pneumatic -or large Van Veen-style grab-sampler.Since acquiring the licence in 2010, Chatham Rock Phosphate Limited has conducted six cruises in two programs in the Project area. A total of 261 samples were collected using a Van Veen grab, box core and grab samples.Sample quality and QA/QC measures varied considerably between the cruises and within each cruise. A critical part of the assessment of the data collected in the Project area was to determine what quality thresholds to use to allow or disallow data to enter into the estimation process. As part of the data verification process, the relative and absolute quality of the data was assessed in as much detail as practically possible. The best samples were those that were collected using the pneumatic grab, sampled the full sand horizon, had a small location survey error and had no other apparent data ambiguities. This paper describes the challenges for mineral resource estimation for an unconventional style of mineralisation using unconventional sampling techniques."

Sep 1, 2014

By Georgene Renner

At the beginning of the 1990s, Communism fell and signaled the end of the Cold War. The world rejoiced but also watched and waited to see how those countries would restructure themselves. The 1990 SME Annual Meeting was held at the Salt Palace Center in Salt Lake City, UT. The keynote session featured Alistair Frame, chairman of RTZ; Paul Queneau, professor of metallurgy at the University of Utah; and TS Ary, director of the U.S. Bureau of Mines. The SME Board of Directors voted to hire a Manager of Public Information and Education to be the GEM Program coordinator. This person was to collect and disseminate information that could be used by individual members and Local Sections to interface with government personnel and the general public.

Jan 1, 2007

By Donald W. Stever

In 1995 I was asked to participate in a litigation matter between a corporation and its insurance carriers concerning insurance coverage for remedial costs at a large, environmentally contaminated closed-down former industrial facility. One of the buildings on this site became known to the lawyers representing the company as “the infamous Building 8”. This building housed millions of documents retrieved from various locations at the facility while it was being shut down. It became apparent that the facility management had no document destruction policy, and thus Building 8 contained internal memoranda, notes, copies of correspondence, permits, operating records, inventory records, and the like from fifty years of operation. Needless to say, some of these documents, all of which were subject to discovery by the insurance companies in the litigation, contained material that was less than helpful to the company’s case. Of course, there were also a few helpful documents, but the overall usefulness of these records was outweighed by the negative impact they had on the conduct of the litigation. A second example involves e-mail. Several years ago, acting on an anonymous complaint that we later discovered was made by a disgruntled former employee who had been fired, a small army of federal environmental investigators descended on a client’s operating facility and, armed with a search warrant, literally commandeered the facility’s EH&S department. The investigators impounded the computers of the EH&S personnel and extracted all of the data from the hard drives of those PCs, as well as all EH&S related files from the hard drives of several servers used by the facility. These computers contained many years’ worth of stored e-mails, draft letters and memoranda, and other documents that provided grist for a four and one-half year criminal grand jury investigation of the facility and its EH&S staff. Both of these companies would have benefited from following a rigorous, enforceable, corporate records policy. Here is a third problem. My client had, during the 1960s, made a brief, and unprofitable foray into the nuclear fuel processing business. It ultimately sold the subsidiary, and was forced to give the purchasing company a broad indemnity against future liability. As might be expected, years later the facility was found to have considerable soil and ground water contamination both by chlorinated solvents and low-level radioactive material. Several years into the remediation program, my client discovered a tractor-trailer load of files, apparently removed from the subject facility, sitting in a parked trailer in a company-owned lot 300 miles away from the facility, where they had been for nearly thirty years. These documents were not helpful to the client, but had to be reviewed, at considerable cost, by paralegals. Moreover, several of the boxes turned out to have been mildly radioactive, setting off a chain of health and safety issues that consumed tens of thousands of dollars of legal expenses before they were resolved. Today, formal, enforceable corporate records management programs have become an extremely important element of overall corporate management. What was for most of the last century little more than a low level warehousing function is now a critical, actively managed, operating function that affects every level of corporate management. The rapid assimilation into corporate culture of electronic document management and the prevalence of e-email as the primary means of internal communication have created records management complexities the likes of which were not even conceived of fifteen years ago. Record preservation and destruction are no longer matters that can be handled on an ad-hoc decision making basis. Because of regulatory requirements affecting various classes of documents and the litigation consequences of ad hoc retention and destruction of corporate business records, and the need to have the ability to quickly retrieve documents in either a litigation or business negotiation context, a set of records management norms have evolved over time that have become the core elements of virtually every corporate records program. However, notwithstanding the existence of a set of norms (which are the basic elements of a

Jan 1, 2005

By Greg Partington, Darryl Thorburn, Charlene Wildman, Elisa Puccioni, Connie Payne, Campbell McKenzie

"Mineral prospectivity modelling of polymetallic nodule deposits has been completed over the Cook Islands Exclusive Economic Zone (CIEEZ) using the GIS based Weights of Evidence modelling technique. Polymetallic nodules, also known as manganese nodules, have been explored as a possible resource for a number of metals including cobalt since the early 1970s. Recent data on the nodule composition and abundance in the CIEEZ has led to a renewed interest in the prospectivity for manganese nodules in the region. The predictive modelling has used the most recently accepted mineral model for polymetallic deep-sea nodule deposition to identify factors that are most likely to map the presence of this type of mineralisation in the CIEEZ.Manganese nodules form on the deep seafloor as concretions formed by concentric layering of iron and manganese hydroxides around a core and they grow at a very slow rate, on the order of millimeters per million years. The available data for the CIEEZ indicates a greater abundance in the area of nodules formed by hydrogenetic processes, which are the result of slow precipitation of metallic components from seawater. The environment in which the nodules are most abundant is at depths between 4,000 m and 6,000 m in areas of low sedimentation rate. Hydrogenous nodules commonly grow on siliceous and pelagic clay sediment, they are less common on other types of sediment."

Sep 1, 2014

By F. Mielli

Camera systems and video surveillance are usually associated with people and asset protection. However, they can be applied in a mine environment beyond conventional surveillance: For process monitoring, collision avoidance, sizing, flotation cells, conveying systems, blasting, objects and people tracking, thermal profile, and to automatically identify equipment that is missing parts,. Image and video solutions can be driven by better integration of powerful video analytics and cameras systems in automation tools such as process controllers and supervision systems.

Feb 27, 2013

By S. Garcia, J. Gebhardt, D. McBride, A. Hernandez, A. Esplín, M. Cross

The Minera Yanacocha operation consists of several heaps interconnected with ponds and gold recovery plants and presents various operating challenges. A comprehensive process model has been developed in order to better understand the effects of certain operating parameters and inventory issues. An integral component of the process water/mass balance is a model of each heap that describes heap behavior based on the individual characteristics of the heap. The heap models are linked to a mass balancing program in order to track flows and concentrations throughout the circuit. A case study of the process heap model is presented for the La Quinua heap, including results for the normal base line operation and several operational problems such as loss of solution flow to the heap (i.e., pump failure), increased flow to a section of the heap (i.e., pond volume control), effect of significant rain events, and impact of a change in material properties (i.e., change in ore type). The impact on heap operating efficiency is discussed with regard to effects on recovery and gold solution grades.

Jan 1, 2007

By Thomas D. Kaufmann

Introduction What drives the price of gold? Supply and demand, of course. But in ways far different from the forces that drive the prices of other major metals, such as steel, aluminum, and copper. Gold, in fact, is one of the few commodities where both buyers and sellers are happy when the price goes up. Current production, production costs, and variations in production have little influence on its price. Gold inventories are so tremendous that current production has small impact on the amounts available to the market at any time. Worldwide gold inventory and production The world's inventories seem to be between 78 and 98 kt (2.5 and 3 billion oz). Since biblical times, the gold miners of the world have produced about 98 kt (3 billion oz), mostly in this century. Only small amounts have been thrown away and most of it - more than 78 kt (2.5 billion oz) - remain in bullion, coins, or jewelry. About 40% is held by central banks and other governmental authorities, 30% by private individuals as bullion or coins, and about 30% as jewelry. Except for some of the jewelry and the few industrial applications, this inventory is constantly available in marketable form at a price. By comparison, gold production is indeed small. The US Bureau of Mines estimates that the world produced 1.5 kt (50 million oz) of gold in 1986. Consequently, production increased world inventories by only 2%. Variations in production have a negligible or very short-term effect on the supply and, consequently, on the markets for gold. Although South Africa mines about 40% to 50% of the world's annual production, continuing labor strife there does not seem to have ruffled gold prices. Determining gold's price Gold prices, however, do determine cutoff grades in the mines and, thus, do influence production. Nonetheless, changes in production have little impact on the inventory supply. Consequently, it has small influence on the price of gold on the market. With a fairly stable supply, price changes are driven by changes in its demand. Unlike other metals, very little of the demand for gold comes from industry. Dental, electronic, and other industrial uses for gold consume less than 46.6 t/a (1.5 million oz per year). It would be safe to assume that such uses are less than 124 t/a (4 million oz per year) for the entire world. Variations in the 124 t (4 million oz), compared to a supply of 78 kt (2.5 billion oz) of supply can have only a negligible effect. Production net of industrial uses adds perhaps 1% annually to world inventories. This could, in time, affect markets. The increase, however, is mostly absorbed by population growth - more people wanting to own gold - and by gold being put in more attractive forms, such as coins. As an ancient Lydian king discovered, minting bullion permits

Jan 9, 1987