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By J. Bertisen, G. Davis

Previous analyses of small samples of mining projects have found that feasibility studies tend to well under-estimate the actual capital costs of the project. Our review of 63 mining and smelting projects completed over 4 decades confirms that as-built capital costs are, on average, 25% higher than as estimated at the bankable feasibility study stage. There appears to be little attenuation over time of this bias in capital cost estimation, at first appearing to reflect an absence of learning on the part of the consulting engineer. We instead argue that this persistence of bias is intentional, driven by a scarcity of project financing and the need to inflate the project economics in a bid to secure financing. Around this intentional bias is a considerable amount of scatter. Roughly half of all projects’ as-built capita costs fall outside of the expected ±15% of the feasibility study capital cost estimate, even after allowing for intentional estimation bias. Cost overruns of 100% or more happen in roughly 1 out of 13 projects. The data reveal that a shifted lognormal probability distribution should be used when modeling mining project capital costs in a Monte Carlo analysis.

Jan 1, 2007

By J. A. Botín

NPV is a static measure of project value which does not discriminate between levels of internal and external risk in project valuation. Due to current investment project?s characteristics, a much more complex model is needed: one that includes the value of flexibility and the different risk levels associated with variables subject to uncertainty (price, costs, exchange rates, grade and tonnage of the deposits, cut off grade, among many others). Few of these variables present any correlation or can be treated uniformly. In this context, Real Option Valuation (ROV) arose more than a decade ago, as a mainly theoretical model with the potential for simultaneous calculation of the risk associated with such variables. This paper reviews the literature regarding the application of Real Options Valuation in mining, noting the prior focus on external risks, and presents a case study where ROV is applied to quantify risk associated to mine planning.

Jan 1, 2012

By V. McLemore, A. Fakhimi, K. Donahue, D. Sweeney, V. Viterbo

In order to evaluate the relationships between weathering and durability and strength of rock samples from the Goathill North rock pile at the Molycorp Questa mine, NM, we conducted slake durability and point load tests. Slake durability index (ID2) values ranged from 84 to 98%. Point load strength index (Is50) averaged for all rock units ranged from 1.1 to 5.7 MPa. Results show a slight positive trend between ID2 and paste pH. Two populations of data are distinguishable when ID2 is plotted versus the percentages of chlorite, illite and internal friction angle. In general, Is50 values increase toward the interior of the rock pile. Preliminary conclusions indicate that the durability and strength of the rock pile material generally increase toward the interior of the rock pile. Pre-rock pile alteration and post-rock pile weathering history have affected the durability of the GHN rock pile samples.

Jan 1, 2007

By John B. Sabey, Vernon R. Degner

The industrial coal processing trend toward greater fines production, due to mining techniques and customer requirements for reduced ash and sulphur content in the fine coal product, is the basis for ongoing efforts to improve the performance of the flotation machine. WCO has successfully adapted the principles of the beds Column to a full size machine prototype. Recent plant evaluation tests confirmed the initial promise of this concept by achieving a considerably lower ash product while maintaining the combustible recovery level of conventional flotation machinery. The paper will include a review of the fundamental principles of the beds Column concept, together with a summary of the WEMCO R&D Program from concept evaluation and laboratory testing, through pilot, to full size machine tests. The performance of the WEMCO/Leeds flotation column will be compared to conventional flotation concepts using a flotation "kinetics" approach, which quantifies the floatable and non-floatable specie recovery performance using the Klimpel model as the basis for analysis. The variety of distinct features unique to this concept include a series of barrier rods which are used to advantage, often together with countercurrent reflux water flow, to achieve a significant improvement in product grade. The hydrodynamics associated with the mechanics of "gangue stripping" from the rising "air bubble-floatable specie" matrix will be briefly reviewed.

Jan 1, 1988

By Joseph Irons, David Westfall

Three rock tunnel sewer systems are underway in the Chicago Area. (Figure 1) The three are designed to act independently and to be later connected to the future tunnels of the master plan. The tunnel excavation for each of the systems has been completed. One is in the Northwest area within the City being built by the City, known as the Lawrence Ave. System. Another is in the Southwest suburbs, known as the LaGrange-Brookfield Sewer or Southwest 13A, being built by the Sanitary District, the third is in the South suburbs called the Crawford Avenue sewer or Calumet 18-E, Ext. A- being built as a joint venture between the City and the District. The three are similar in that they have the same purpose, the same component parts and their tunnels were constructed in the nigaran limestone using a mechanical mining machine. The purpose of each of the systems is two-fold. First to provide flood relief for existing inadequate sewer systems, and second to reduce the pollution load to the waterways caused by combined sewer overflows. The existing systems in the areas to be relieved are combined sewers built many years ago. The main outlet for the Village of LaGrange, for example, was built in 1908, is badly in need of repair and lacks the capacity to handle the flood flow from the heavily urbanized area it now serves. The dry weather flow from the area is taken off by intercepting sewers. However during

Jan 1, 1997

By Louis M. Schlesinger, Michael J. Garska, Joel F. Hutwelker, James T. Jr. Tanner

A pilot plant was constructed and operated to investigate the column flotation of 20 x 200 mesh North Carolina phosphate ore, using high throughput, high solids operating conditions developed at the NCSU Minerals Research Laboratory. Flotation was performed at 45% solids in a 9.5 cm (3.75 in.) diameter by 2.26 m (7.4 ft.) tall column at throughputs of 19.1 t/hr/m2 (2.0 stph/ft2) and 31.7 t/hr/m2 (3.3 stph/ft2). Recoveries in excess of 98% of the phosphate value were obtained at the lower throughput -- while obtaining concentrate grades containing over 28% P205 (61.2% BPL) at that recovery. Recoveries of about 95% of the phosphate value were obtained at the higher throughput, while making a concentrate averaging 27.6% P205 (60.3% BPL). In addition, a better understanding of the variables governing the column flotation of coarse nonmetallic minerals was gained. Variables examined included superficial air velocity, throughput (superficial feed velocity), frother type, frother dosage, and bias rate.

Jan 1, 1993

M.S. Azun I have many objections to the content of the author's paper. Before discussing it, however, I would like to repeat the property of semivariogram function. Second order stationary properties of regionalized variables (ReV's) such as semivariogram function y(h) are perfectly known in geostatistics. Also, the kriging equations in the language of mathematical statistics using second order stationary properties are well understood. However, the way to use the sample (estimated) semivariogram function in any one of the kriging procedures is vague. The sample semivariogram function is given as follows: [ ] where N is the total number of samples, Xi is the sample value at the i - th location, Xi+h is the sample value at the i + h - th location, and h is the distance among the samples. An estimation variance of sample semivariogram function of first lag is smaller than that of higher order lag. The theoretical semivariogram function reaches the variance of samples asymptotically. But this is not easily observable because of the larger variation involved in the estimate of semivariogram function. In general, an estimation procedure is done for h = 0, 1, 2, up to the greatest integer less than N/2, even though sample semivariogram function can be computable through N-1. After estimating semivariogram function, the critical question of how to model sample semivariogram function arises. As seen in the above equation, sample semivariogram function is discrete and can be smoothed by the model being selected. Therefore, modeling of sample semivariogram function is the most important step in geostatistics. It not only smoothes a discrete function but also affects the results of the kriging procedure. When the only aim is to model the semivariogram function, which is the basic point of the author's paper, one can employ any fitting techniques, such as curve fitting, or any arbitrary functions, which are called submodels in the paper. The term "arbitrary function" is used rather than "submodel" because there is no basic understanding of developing them. The author suggests that the sum of those submodels can also be used for the modeling of sample semivariogram function. The combination of any arbitrary functions brings many problems instead of giving an insight of the domain structure considered. The author used two arbitrary functions and the nugget effect in response to sample semivariogram function (Fig. 10). For the same example, he stated that the parameters involved in the mixed arbitrary function model can be accepted when the discrepancy between sample semivariogram function and the model is small visually. For verifying the fitting behavior of any selected model, one should not be contented with the visual satisfactory. Some statistical measure such as goodness of fit has to be used. The author's practice is no more than an exercise in curve fitting without any fundamental understanding or conceptualization of the underlying physical mechanism. Furthermore, the selection of any model is not an easy task if the purpose is the search for the "best" response to the observed second order properties of ReV's. I suggest that the Markovian model (Azun, 1983), on the basis of a theoretical understanding of underlying mechanism, which gives more information about the occurrence of regionalized variables, is used to respond all properties of ReV's. There are a lot of problems for modeling of one-dimensional sample semivariogram function. Thus, it is not appropriate to go to higher order dimensional sample semivariogram function modeling. In the meantime, I would recommend that one can connect the values of standardized sample semivariogram function rather than simple values of semivariogram function in the two-dimensional estimation. The standardized values can be computed in dividing the semivariogram function value by the number of sample pairs involved in each lag regardless of the directions. In conclusion, geostatistics is an interdisciplinary area in mining that uses the principles of mathematical statistics. Thus, it should not violate any probabilistic and statistical rules. When Matheron was developing the theory of geostatistical study in the early years of geostatistics, many mining people had a reservation accepting the geostatistical tools. However, this does not mean that we, the geostatisticians, might try to convince those people using some "strange" tools or rules as some authors implied (Baafi and Kim, 1984). Instead, we have to develop and explain the geostatistical tools staying only in the framework of statistical concepts and properties. References Azun, M.S., 1983, "Stochastic Process Modeling of Spatially Distributed Geostatistical Data," Columbia University, Ph.D. Thesis. Baafi, E.Y., and Kim, Y.C., 1984, "Discussion - Comparison of Different Ore Reserve Estimation Methods Using Conditional Simulation," Mining Engineering, Vol. 36, No. 3, p. 280. Reply by J.M. Rendu The interactive method proposed by Rendu allows practitioners to develop semivariogram models that take into account not only the numerical information obtained by sampling, but also highly significant additional information that often cannot be quantified. The geology of the deposit - including hypotheses concerning its genesis, sampling methods, assaying methods, and mathematical methods used to calculate the semivariograms - all have an influence on the numerical results obtained and on how these results should be interpreted. If all the information concerning the spatial distribution of values in a mineral deposit was contained in the sample values, it could be argued that statistical techniques alone would produce optimum models. However, this is rarely, if ever, the case. Methods that allow the user to take into account his experience and his geologic understanding of the deposit should not be rejected for the sake of theoretical statistical purity.

Jan 11, 1985

By Xuehua Zhang, Shengxiong Yang, Huiqiang Yao, Gaowen He

"Seamount cobalt-rich ferromanganese crusts (hereafter crusts) are authigenic iron/manganese hydroxide/oxide deposits formed from direct precipitation of minerals from seawater onto a hard substrates surface. Crusts contain significant concentrations of cobalt, manganese, nickel, copper, platinum, rare earth elements and other valuable metallic elements, with potential economic value. Regulations on Prospecting and Exploration for Cobalt-rich Ferromanganese Crusts in the "Area" was approved by the Council and Assembly of the International Seabed Authority in July 2012, China and Japan became the first to obtain exploration contracts, which were signed respectively in April and January 2014.The crusts form pavements and are mainly attached tightly to the surface of the substrate, and less commonly crusts coat talus debris located on the surface of sediment and substrate rock. During prospecting, crust sampling methods mainly include dredge, TVgrab and sub-bottom coring system. During exploration, the sub-bottom coring will be the dominant method for crust sampling, and if necessary, ROV sampling will be used. Usually the samples collected by different methods provide a larger quantity than samples needed for chemical analysis, but sampling quantity is a question that should be considered for mineral resource evaluation that how to ensure that the sampling is representation for the sampling station. Using the samples collected by China from Pacific seamounts, according to the designed analysis flow and Qeqott formula (Q=Kd2), the minimum reliable assay sample quantity ("MRASQ") of crusts for Mn, Co, and Ni are obtained. In the case of the sample homogeneous fines at ~100 mesh size (~0.15 mm), MRASQ for Mn, Co, Ni is respectively 4.5 g, 9 g and 9 g. This result provides the basic data for crusts resources evaluation."

Sep 1, 2014

By M. A. Raza

Cable shovels are capital-expensive and primary production equipment in many surface mines. The forces acting on the shovel dipper vary as the dipper moves through the muck-pile. The variations in the forces cause stress loading of the components of shovel and dipper resulting in unplanned downtimes, reduced shovel efficiency, and high mining costs. A potential solution to the above problems is the deployment of an intelligent shovel excavation (ISE) technology, with real-time formation identification, recording, and knowledge transmission capabilities. This research advances the ISE technology by developing dynamic model of cable shovel dipper using Newton-Euler techniques. The model includes the dynamic cutting and dynamic weight forces acting on the dipper as it moves through the muck-pile.

Jan 1, 2011

By M. Dobbins

The advent of the more efficient and effective rare-earth roll (RER) separator in the early 1980?s began a new era of dry magnetic separation. The RER units quickly became the separator of choice within the materials processing industry. Though RER separators are now commonplace throughout the world, only modest advancements have been made to the original design. This paper details recent, more significant, rare-earth magnetic separation developments. These developments maintain the best features of existing technology while minimizing shortcomings. The discussion includes discerning features that aid in better metallurgical performance. Also discussed are improved mechanical aspects that allow for both easier operation and maintenance. Performance details from various test programs are included.

Jan 1, 2009

By T. Bajpayee, J. Ellenberger

Microseismic monitoring and evaluation is one aspect of the National Institute for Occupational Safety and Health (NIOSH) research program. Roof falls are often preceded by a period of elevated microseismic activity, but not all periods of elevated activity result in a roof fall, nor do all roof falls occur after some amount of elevated activity. The objective of this study is to review periods of elevated microseismic activity and determine whether fracture activity rate can be used to anticipate the initiation of roof falls. The study was carried out at an underground limestone mine where major roof falls are associated with excessive horizontal stress. The progression of roof falls was detected by the microseismic signature produced by the rock falling from the mine roof onto the mine floor, which is termed a roof fall impact event. A total of nine elevated fracture activity periods that resulted in seven major roof falls were examined. It was observed that elevated fracture activity preceded the initial roof fall impact event in three out of four major roof falls. The initial impact event was not identified for the remaining three roof falls. Fracture event rates were analyzed and a roof fall alarm trigger of five fracture events in a ten minute time period was established for this test case. The fall alarm trigger was tested against six of the elevated activity periods. Four roof falls occurred in the six periods of elevated activity, and two would have triggered the alarm before the roof fall occurred, while two false alarms were generated. The results show that limited success would have been achieved by the microseismic system as a roof fall alarm trigger. However, the trigger would have been successful at warning of the onset of elevated activity, allowing mine employees to respond appropriately. The study highlighted some issues with implementing such a system in an operating mine, including the need for real time identification of fracture related microseismic signals among mining induced signals, and accurate location and identification of fracture clustering.

Jan 1, 2007

"With millions of dollars and thousands of lives at stake, the Iron Ore Company of Canada (IOC) turned to a private wireless network for help.IOC needed a network that possessed the ability to adapt to changes in a nanosecond and to function seamlessly in the most rugged of environments.Canada’s largest iron ore producer required a private wireless network powerful enough to support all mine applications and deliver all data to one central point — without any existing cellular/3G/Wi-Fi coverage.Operations at IOC, a leading global supplier of iron pellets, involved dispatch, drill management and equipment monitoring, pump control and remote video that must service three distinct pits. Due to its setup, the facility does not offer a great deal of flexibility for transmitting signals.IOC serves a robust customer base made up of North American, European and Asian steel producers. It also employs nearly 1,900 people. Catastrophic death and destruction are two very real potential consequences of system communication failure.Technology for tough terrainKinetic mesh technology was born in the wake of the 9/11 terrorist attacks on the United States, one of the most high-stakes emergency situations in U.S. history. The failure of the communications infrastructure on a massive scale that day underscored the need for networking technologies that could provide service even in the most chaotic of conditions.Kinetic mesh networks allow organizations to deploy networks at sites where communications infrastructure has been compromised, as well as quickly establish networks in places where they did not previously exist. Kinetic mesh networks have also demonstrated a better ability to adapt to network changes on-the-fly versus other types of networking technologies."

Jan 1, 2015

By Michael Hughes, Paul Bonapace, Harry Charalambu, Stephen Rigbey

Ontario Power Generation is building a 10.4-km water diversion tunnel in Niagara Falls, Canada. The tunnel is a two-pass, cast-in-place prestressed concrete-lined pres-sure tunnel with a nominal internal diameter of 12.7 m. It is mostly situated within the Queenston formation which swells in contact with fresh water and has very aggressive groundwater. Tunneling in this material presents challenges in both design and construction. The tunnel design includes for a membrane to eliminate the potential for rock swelling and to protect the concrete liner from the ground conditions. A unique three-stage Geotechnical Baseline Report (GBR) is being used and is expected to provide an equitable method of dealing with any variations in subsurface conditions.

Jan 1, 2007

By R. K. Singhal

Canada is a world class producer and exporter of minerals and mineral products. Today's highly mechanized Canadian open pits use state-of-the-art equipment and support technology. They are taking advantage of larger equipment, including in pit crushing and conveying, truck dispatch systems and electronic management tools. Mine planning is computerized. Environmental issues are dealt with in all phases of planning, and equipment modifications are pursued to keep them functioning in the hostile Canadian north. In 1991, Canada's mineral production (excluding fuels but including coal) totaled $C 16.9 billion, a decline of 13.8% from the 1990 total of $C19.6 billion. It is a major producer of nickel, zinc, asbestos, potash, molybdenum and uranium. Canada is also an important source of copper and iron ore (Fig. 1).

Jan 1, 1995

By Daniel M. Flanagan

"Editor’s note: Each year, Mining Engineering features an industrial minerals review. Several people put in a fair amount of time in developing the material for this issue, all the while doing their own jobs. Thank you to the industrial minerals annual review editor, to the Industrial Minerals & Aggregates Division technical committee chair and vice chairs, and to the authors of the individual commodity profiles. Jim Norman, member SME, of Tetra Tech, is the industrial minerals annual review editor.Joe Garska, member SME, of Imerys, is chair of the Industrial Minerals &Aggregates Division’s Technical Committee.The technical committee vice chairs include:• Hyunjung Kim, member SME, of Chonbuk National University, agricultural materials.• Xihui Lin, member SME, of Kemira, ceramics and refractory materials.• Nikhil Gupta, member SME, of Virginia Tech, chemical raw materials.• Adam Rodriquez, member SME, of Penn State, construction aggregates.• LeDeana Roberts, member SME, of Imerys, fillers and pigments.• Harsha Kolla, member SME, of ChemEOR, sorbents, filters and process aids.• Edgar Blanco, member SME, of FLSmidth, specialty minerals.Their help makes possible this July industrial minerals issue. On behalf of ME readers, the editors thank them.During the past 25 years, U.S. ball clay production (the quantity sold or used by domestic producers) increased from 788 kt (869,000 st) in 1990 to an alltime high of 1.31 Mt (1.44 million st) in 2003 (Fig. 1). Housing construction within the United States, a leading market for ball clay-based ceramics and sanitaryware, began to decline in 2005, which resulted in a considerable decrease in sales of ball clay that continued through the 2008-2009 economic recession. After bottoming out at 831 kt (916,000 st) in 2009, ball clay production steadily increased through 2015 (Fig. 1). Estimated sales in 2015 were 36 percent higher than those in 1990 and 18 percent lower than those in 2003.Four companies (H.C. Spinks Clay Co., Imerys S.A., Old Hickory Clay Co., and Unimin Corp.), mined ball clay in five states during 2015. An estimated 1.7 Mt (1.18 million st) of ball clay valued at an estimated $47.5 million was sold or used by U.S. producers, a 4-percent increase from 1.03 Mt (1.14 million st) valued at $45.2 million in 2014. Approximately 65 percent of total ball clay production was air-float, 25 percent was crude or shredded and 10 percent was water-slurried"

Jul 1, 2016

Using a series-model of an automotive short range radar sensor (SRR) and a recently completed experimental radar system, field tests have been performed in a surface mine. It was examined, to what extent low-cost electronically scanning radar sensors can provide useful data for assistance systems on large scale mining machines. Simple sensors are useful for anti-collision safety zones or hopper car automation. The more complex and sophisticated experimental radar system using digital beam-forming can clearly detect and map the contours of trenches and slopes. The overall promising results refer to many more potential applications for electronically scanning radar in surface and underground mining as a reliable alternative to mechanical laser scanners.

Jan 1, 2007

By D. H. Garcia

The mining industry responded to public concerns about use of cyanide by developing a voluntary certification to allow companies to demonstrate their commitment. The International Cyanide Code (Code) establishes standards for the manufacture, transportation and use of cyanide. Key concepts in closure planning to comply with the Code are to decommission all facilities related to cyanide operations and to provide a financial assurance mechanism for those activities. Code requirements may differ from state-specific regulations, but requirements are based on closure goals for protection of the human health and the environment. Only issues related to cyanide operations are required to be included in decommissioning demonstrations. For example, the disposal method of cyanide solution holding tanks and the cost must be included in the closure plan, but information regarding closure of roads is not required. Closure costs must be based on a third-party contractor as opposed to internal budgets. Compliance with the closure requirements of the Code allows companies to show their stockholders, lending institutions, and the public that their operations are environmentally responsible.

Jan 1, 2010

By D. Gu

Shaft drilling is one of the most useful methods of driving shafts. This paper describes the application and development of the technique in coal mine construction in China.

Jan 1, 1993

Introduction Some people say it is almost impossible to get mining permits in California. Some say the day of the lone mining entrepreneur is past. And some say you cannot make money mining gold where old-timers have already mined it, especially in Tertiary gravels. But a young mining operator and SME member, Tim Callaway, is proving these ideas wrong. Callaway's company, Brush Creek Mining and Development Inc., has the necessary permits for its Gardner's Point gold mine in Sierra County, CA. And, Callaway has secured funds for the 7.7 km'/d (10,000 cypd) Tertiary gravel operation. The company's initial goal is to produce 373 to 466 kg/a (12,000 to 15,000 oz per year) of gold at Gardner's Point mine at a cost of less than $6.43/g ($200 per oz). Feasibility studies are currently being conducted to consider product levels up to the 1555 kg/a (50,000 oz per year) involving additional plants and infrastructure. While exploring for other hard-rock properties, the Brush Creek company already operates the Brush Creek lode gold mine. The mine sits high on a ridge south of Goodyear's Bar, which is located on the North Yuba river. It might be noted that the Brush Creek mine has been the subject of media stories recounting how a mine can operate with sensitivity to the environment. Gardner's Point project In 1983, Callaway negotiated with the Gardners Point Ltd. Partnership for control of the Gardner's Point property. The Partnership had been engaged for three years in securing permits, mapping and drilling, and test mining. The Partnership actually mined about 43.5 dam3 (57,000 cu yd) of gravel, which yielded 25.2 kg (810 oz) of free gold. Later, the Brush Creek company acquired ownership of the property. The company then began its own exploration and development program. As underground development proceeded at the Brush Creek mine, plans matured for a high-volume operation at Gardner's Point. Australian and English investors contacted Callaway. A joint venture was negotiated. The Australian owners became majority participants; the Brush Creek company, a minority participant and the operator. The Australian investors agreed to contribute $3.5 million (60%) to the Brush Creek Joint Ventures. The Brush Creek company will contribute its expertise as well as assets and liabilities valued at $2.3 million (40%). About $2 million has been allocated to the Gardner's Point project. Later, Brush Creek Mining and Development Inc. sold 50.4% of the company's common stock to English investors for $5.4 million. Callaway negotiated this private placement, which permits further exploration of projects being investigated. Geography and history The Gardner's Point mine is located in the northern Sierra Nevada of California, about 9.6 km (6 miles) east of the little town of La Porte in Plumas County. The mine lies high on a ridge above Slate Creek, which divides Plumas and Sierra Counties. La Porte is accessible from the Sacramento area by a winding, paved, two-lane highway. But the mine is reached only by two different unpaved county and Forest Service roads. Both roads include steep grades in and out of the Slate Creek canyon. Mine elevation is about 1.4 km (4600 ft) above sea level. The area is thus threatened by occasional heavy winter snows, though it

Jan 3, 1987

By L. R. Stoiser

The mineral resource potential of the Los Bronces deposit was successfully evaluated by an intense, coordinated program over a 37-month period (April 1978-May 1981) as part of an economic feasibility study. The program included more than 120 km of core drilling, 63 km of access road construction under adverse topographic and climatic conditions, detailed geological mapping, plus other related activities. This Tertiary-age copper-molybdenum deposit is composed of an earlier mineralized porphyry-type body intruded in part by a large complex of mineralized hydrothermal breccia pipes. Both intrusive and extrusive igneous rocks are present. Erosion, oxidation, leaching, and supergene enrichment of copper have resulted in a deposit now exposed at the surface that contains more than 368 Mt grading about 1% copper equivalent as sulfides.

Jan 1, 1982