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By B. Berhe, R. D. Lawrence, J. Hinzer

"The fortunes of mining companies and their implied value are tied to cycles - both economic and commodity – within which they operate. Hence the determination of appropriate future metal prices is one of the most critical factors faced by mineral valuators especially for advanced projects. Price, and hence revenue, is usually the most sensitive input to the valuation model. Empirical studies of past forecasts show that the success rate for commodity price forecasting is very poor. This paper explores various approaches and comments on their strengths and weaknesses. We conclude that careful evaluation of long-term metal prices is a key element and is hardly a luxury that can be left to simple averages or rules of thumb. INTRODUCTION Discounted Cash Flow (""DCF"") analysis, is well suited for the valuation of advanced mineral development assets, for which there are identified mineral resources and some form of economic assessment (Pre-Feasibility or Feasibility Study). The DCF method is also the most commonly used method for determining value for such assets. It provides a means of relating the magnitude of expected future cash flows from profits (or losses) to the magnitude of the initial cash flow (investment) needed for capital expenditures to purchase or to develop an asset for commercial production. The method proves useful in making investment decisions as it allows for the quantification of the Net Present Value (“NPV”), as well as the Internal Rate of Return (IRR) and Payback Period on initial investment capital. Valuation by its very nature is a forward-looking exercise. The DCF method attempts to estimate the NPV of expected future cash flows, by selecting factors that will likely affect future cash flow based on informed analysis. One of the most critical and sensitive factors is the determination of appropriate future commodity prices. “The variables that have the greatest impact on a DCF evaluation are the reserves, the metal prices, and the discount rate.”1 The determination of future commodity prices for valuation purpose or during M&A negotiations is a hotly contested issue. There are a number of analysts, institutions and specialized commercial data suppliers that provide both short and long-term commodities price forecasts. Also, the use of an aggregated mean for all available forecasts, or consensus forecasted prices for valuation purposes is not uncommon. The methods used in making forecasts for each forecaster may vary and in many cases may not be publically disclosed. Nonetheless, the aggregated mean of all forecasted commodity prices of reputed institutions is usually taken to “represent the market’s view of likely future commodity prices.”"

Jan 1, 2016

By Alper Kirmaci, Taghi Sherizadeh, Dogukan Guner, Samuel Nowak, Khaled Mohamed, Morgan Sears

Coal ribs present a major safety hazard in underground mines, and there is currently no unified approach for their design in the United States. To tackle this issue, this study investigated the stability of underground coal pillar ribs under development load. Utilizing over a thousand 3DEC models, a framework for calculating coal pillar rib rating (CPRR) was developed. A detailed step-by-step method was outlined for computing the CPRR based on a 3DEC analysis, which was then validated with various 3DEC models, demonstrating a strong correlation between the two models. The results demonstrated that the rib factor of safety (RibFOS) under development load is directly proportional to CPRR, coal mine roof rating (CMRR), and floor strength, and inversely proportional to the overburden depth and rib height. Moreover, a regression equation was formulated to predict the RibFOS based on the aforementioned parameters. Furthermore, empirical relationships were developed between the RibFOS and the applied primary rib support density (PRSD) in U.S. coal mines. To ease the calculations, a stand-alone application, Design of Rib Support (DORS), was developed. This application can be used to assess rib stability and easily calculate CPRR, RibFOS, and PRSD.

Jul 1, 2023

By S. M. Smouse

Total world energy consumption is projected to continue its strong growth of recent years. Because coal is the most abundant fossil fuel, it will likely remain an important energy source, particularly for power generation, into at least the early years of the next millennium. Clean coal technologies are available today that can economically reduce air pollution, primarily SO2 NOx and particulates, and for the higher efficiency technologies, CO2, from power generation. U.S. Department of Energy analyses show that the adoption of clean coal technologies could decrease carbon emissions worldwide while creating a strong export market with attendant creation of jobs in the U.S.

Jan 1, 1998

By G. J. Joy, J. P. Rider

Technical advances in longwall mining over the last several years have resulted in much larger and faster shearers that have the capability of mining at speeds over 30 m/min (100 fpm). This has resulted in a substantial increase in the amount of dust that is generated at the shearer and during shield advances. Meanwhile, increased underground coal production has put a greater demand on longwall dust control systems as some operators have had difficulty maintaining consistent compliance with federal dust standards. To address this need, the U.S. National Institute for Occupational Safety and Health (NIOSH) is investigating the effectiveness of a water spray manifold mounted on the tailgate end of the shearer body. The sprays are oriented parallel to the tailgate ranging arm, and these sprays create a water curtain confining the dust plume near the face, preventing the dust from drifting into the walkway. This redirection of dust provides a clean air envelope for the tailgate shearer operator and jacksetters working near the tailgate drum. Three different tailgate spray manifold designs were tested and evaluated at the Office of Mine Safety and Health Research (OMSHR) Pittsburgh Longwall Test Facility. Manifolds were equipped with hollow cone or flat fan water spray nozzles and evaluated at three face air velocities — 152, 213 and 274 m/min (500, 700 and 900 fpm)— and at water pressures of 689, 1,034 and 1,379 kPa (100, 150 and 200 psi). Reductions in dust concentrations were observed at six face sampling locations for all the tailgate manifold systems at each of the tested spray pressures and face velocities. Average reduction efficiencies of at least 90 percent were seen at the three sampling locations closest to the shearer for all three manifold systems at nozzle spray pressures greater than 689 kPa (100 psi). Based on results from the laboratory tests showing reductions in dust concentrations at sampling locations downwind of the shearer, a spray manifold was fabricated and evaluated at an underground operation.

Jan 1, 2016

By R. Wensel

A composite material consists of two or more dissimilar components. These dissimilar components retain their identities when mixed together and contribute to the properties of the composite. A composite usually consists of two parts, the matrix and the reinforcing material, or extender that is added to the matrix. Typical materials used as the matrix in composites are metals, polymers, and ceramics. The reinforcing material can be added for any number of reasons. For instance, if the matrix is expensive, an inexpensive filler may be added to the matrix to lower the cost of the product without sacrificing properties. An example of this is calcite (CaC03) which is added to systems such as polyvinyl chloride (PVC), to lower the cost. Reinforcements may also serve as a means to enhance the properties of the matrix material. For example, carbon fibers are frequently added to plastics to increase their strength, and glass spheres may be added to plastics to improve flexural strength. Mg(OH)z is added to polymers to give the property of fire retardancy. The latter is the focus of this paper.

Jan 1, 1995

By George B. Griswold

The two most stringent parameters for in place fracturing of rock are the lack of any initial void space in the rock which to expand into and the ability to gain access only through drill holes. These two restrictions have proven so severe that as of today the only proven techniques for efficient fracturing are the contained nuclear detonation and hydrofracing. Both of these methods have highly developed technologies for their application. Hydrofracing has been a standard oil field practice for two decades, and the experience gained from a couple hundred underground nuclear detonations has resulted in a thorough understanding of the phenomenology of cavity and chimney formation. What is still lacking is a practical method to create a suit- able degree of fracturing for those ore bodies which do not meet the application criteria for either the nuclear explosion or hydrofracing. Nuclear applications must be restricted to thick ore deposits so as to take advantage of chimney collapse height--preferable in excess of 200 feet thick. Other requirements such as ground shock, containment, and radioactive contamination further reduce the number of sites that prudently can be selected.

Jan 1, 1969

By Randall Smith, Leslie Stayner

At the request of the Mine Safety and Health Administration, a quantitative assessment of the risk of lung cancer associated with occupational exposures to diesel exhaust was performed. This assessment was primarily based upon the results from a study of the effects of chronic inhalation exposure to diesel exhaust in Fischer-344 rats (previously reported by Mauderly et al., 1987). An adaptation of the Armitage-Doll multistage model, which allows for an age-dependent effect of exposure, was used to model the tumor response data. This model was fitted to all tumors (benign and malignant), and to malignant neoplasms alone. Estimates of unit risk (potency) were derived based upon a linear approximation to the results from the multistage model. A biologically equivalent dose was developed to scale the results from airborne exposure in rats to humans, which was adjusted for differences in weight, ventilation rate, deposition fraction, and the percentage of time actually exposed. Comparisons are made with risk estimates derived from modeling other rat inhalation bioassays and from applying different models to the study by Mauderly et al. (1987). We emphasize that our risk estimates are based upon a series of assumptions and carry a great deal of uncertainty. In particular, uncertainties regarding the effects of exposure on lung clearance mechanisms, the deposition rates in humans, and the relevance of our exposure index limit our confidence in these risk estimates. Because of these uncertainties, this risk assessment would best be viewed as an exploratory effort. Key words: Diesel, lung cancer, risk assessment

Jan 1, 1991

By H. V. Alminas

The U.S. Virgin Islands consist of three major islands (St. Thomas, St. John, and St. Croix) and some 50 smaller islands that are located primarily along the coasts of St. Thomas and St. John. St. Croix, the largest of the islands, is located approximately 160 km south-southeast of San Juan, Puerto Rico and is about 218 km in area (Fig. 1). St. Thomas, the second largest island is located 64 km east of Puerto Rico and incorporates approximately 77 km2. St. John is located immediately to the east of St. Thomas and incorporates approximately 49 km2. The climate in the U.S. Virgin Islands is maritime tropical. The average annual rainfall at higher elevations is 127-152 cm and at lower elevations 51-76 cm. There is no well-defined wet or dry season. Temperatures generally average in the 80's (F°) with only a 5°-7° F variation throughout the year.

Jan 1, 1987

By Kim A. Lapakko, William W. III White

The ASTM standard method D 5744-96 was developed to provide a well-defined kinetic test protocol, conducted under controlled reaction conditions, with the intent of generating reproducible results. The US Bureau of Land Management, American Assay Laboratories, and the Minnesota Department of Natural Resources cooperated in a intralaboratory and interlaboratory testing of the protocol. Intralaboratory testing was conducted on duplicate samples of gabbro (8) and siltite-argillite (5) rocks for periods of 20 to 125 weeks. The difference between replica& intralaboratory pH readings on drainage from the gabbro for the drip-trickle leach alternative typically did not exceed 0.1 units, although differences as high as 0.4 units were observed. The difference from the mean for rates of sulfate, calcium and magnesium release was typically within 10%. Intralaboratory results for the siltite-argillite samples were generally similar, although a one unit pH difference was observed for one sample. Three different laboratories tested a gabbro sample for 125 weeks, with a maximum difference from the mean pH of 0.5 units. The percent difference from the mean for sulfate and calcium release rates was typically within lo%, although values as high as 30% were observed. Data on intralaboratory and interlaboratory agreement on the flood rinse alternative of the method were limited. Replication on the sample tested was comparable to of better than that observed for the drip-trickle method testing of the same sample.

Jan 1, 2000

By August V. Castelli

Drilling fluids have changed over the years from water and/or water frequently mixed with local clays to scientifically com- pounded materials (mud). This change has occurred due to changes in drilling methods from percussion to rotary: depth maximum from 21 m in the first oil well to more than 9 000 m; and variety in types of well or hole to gas, oil, water, and mineral exploration. Environmental concerns about the composition of the fluid as to heavy metals and oil on the cuttings has recently caused changes in the materials used in the mud. The drilling fluid should perform the following functions (Darley et al., 1980): 1) Carry cuttings from beneath the bit, transport them up the annulus, and permit their separation at the surface. 2) Cool and clean the bit. 3) Reduce friction between the drilling string and the sides of the hole. 4) Maintain the stability of uncased sections of the borehole. 5) Prevent the inflow of fluids-oil, gas, or water-from permeable rocks penetrated. 6) Form a thin, low-permeability filter cake which seals pores and other openings in formations penetrated by the bit. In addition to these, the fluid should: 1) Not injure drilling personnel nor be damaging or offensive to the environment. 2) Not require unusual or expensive methods of completion of the drilled hole. 3) Not interfere with the normal productivity of the fluid- bearing formation. 4) Not corrode or cause excessive wear of drilling equipment. A number of industrial minerals, chemicals, and other materials are used as additives in the drilling fluid to accomplish these functions. Industrial minerals make up the highest percentage of the additives in a drilling fluid. Drilling fluids are classified according to their principal components: water, oil, and gas. If the major component is either water or oil, the component along with the suspension of solids, cuttings and additives is referred to in the trade as a mud. The largest use of some industrial minerals, such as barite and bentonite, is in drilling muds. For other materials, such as gypsum and limestone, drilling usage is only a small percentage of total demand. RAW MATERIALS [Table 1] lists the industrial minerals used in drilling fluids, their form, specifications, and uses. Each raw material will be discussed as to its mineralogy, physical and chemical properties, and the location of major deposits with respect to drilling fluids. Attapulgite Attapulgite is a crystalline hydrated magnesium silicate clay mineral, prized for its viscosity in saline waters. The particles are needle-like rather than the platelets common to most clay minerals. The specific gravity is 2.5 and the Mohs hardness is 1 to 1.5. Attapulgite is one of the materials sometimes referred to as fuller's earth. The major producing areas in the United States are southern Georgia and northwestern Florida. It also is mined in Spain, Senegal, the Republic of South Africa, Turkey, India, and Australia. Barite Barite is crystalline barium sulfate. It has a high specific gravity for a non-metallic mineral, 4.5 when pure, and is used as a weighting agent. Generally, the specific gravity ranges from 4.20 to 4.35. It is relatively soft with a Mohs hardness of 3 to 3.5 and is not very abrasive. Barite is inert, non-toxic, and clean to handle. Common contaminants are quartz, iron minerals, gypsum, and calcium carbonate. If there is considerable gypsum in the barite, it will thicken the mud. The major deposits in the United States are in north central Nevada, near Battle Mountain. The major producing countries, other than the United States, are China, India, Mexico, the former USSR, Turkey, and Morocco. The major deposits in India and Nevada, and some in China, are stratiform, commonly quite pure bodies in bedded sedimentary rocks.

Jan 1, 1994

A PDP 11/34 computer has been inter- faced to existing instrumentation in a 400 tph rod-mill/ball-mill grinding circuit and programed with a Kalman filter to estimate several unmeasured variables. A dynamic two-size- fraction model of the circuit is used to predict the complete state of the circuit including particle size distributions around the circuit, mass holdups and flowrates, the ball-mill grinding rate, water additions and cyclone parameters. Online measurements of sump level, slurry densities and product particle size are used to update the model values sequentially on a 20-second interval. This procedure results in optimal estimates of circuit variables given the relative reliability of measurements and the accuracy of the model.

Jan 1, 1983

By Jacek Galas, Stanislaw Lenczowski

The image of the flotation froth surface in the mineral processing plant contains the information about its composition. This information can be very useful for a technological process automation. Images, captured in the optical part of the measurement system were read by the computer, then were transformed and analysed digitally. The set of image parameters, extracted from an image transforms, was evaluated by statistical analysis. The recognition algorithm constructed in this process allowed to estimate the froth composition.

Jan 1, 1995

By W. Joseph Schlitt

Aqueous SO2 (sulfurous acid) is an interesting chemical compound. It functions as a reagent in various hydrometallurgical systems, but also represents an undesirable constituent in pyro- and hydrometallurgical effluent solutions. When present in such streams, SO2 can be oxidized to the more stable sulfate form to avoid exsolution of SO2 as a source of fugitive emissions and to simplify standard water treatment plant operation. This study provides information on the stoichiometry, kinetics and mechanism of SO2 oxidation using oxygen and an iron salt catalyst with solutions containing 0.05 to 20.0 g/l S02. Other test variables include iron salt concentration, oxygen pressure, temperature, degree of agitation and pH.

Jan 1, 1982

By J. Franko, M. S. Klima

Wet-drum magnetic separators are used extensively for upgrading iron ore and for magnetite recovery in dense-medium separation circuits. In this study, the performance of a continuous, laboratory wet-drum magnetic separator was evaluated both with and without the application of ultrasonic energy when processing dense medium slurries. Test variables included magnetic-to-nonmagnetic ratio, solids concentration and nonmagnetic material. The results indicate that, under certain conditions, the purity of the magnetic material increased after ultrasonic treatment. Key words: Ultrasonics, Wet-drum magnetic separation, Iron ore

Jan 1, 2003

By R. S. C. Rogers

A mathematical model is proposed as a general formulation for the analysis and simulation of once-through crushing machines. Methods are described which can be used to estimate parameters of the proposed model from experimental data, thus minimizing reliance on backcalculation. The applicability of the model is demonstrated in the analysis and simulation of laboratory and full scale double roll crushers, and with evidence given for a laboratory scale cone crusher. An extension of the model for closed circuit crushing is also described.

Jan 1, 1984

By T. Negeri

Flotation is the most efficient and preferred solid-solid separation method in mineral processing. However, enhanced production of high-grade concentrates at sufficiently high recovery still poses technological challenges to-day. A novel flotation method to produce final-grade concentrates from finely-ground ores in a single step is being developed and tested by CANMET. For the complex sulphide ores tested, grades are superior while recovery is considerably improved. Furthermore, concentrate production rates, at similar recoveries, are faster than for the conventional rougher-scavenger-cleaner configuration. This paper discusses the physical operating parameters affecting Cu-Zn flotation metallurgy.

Jan 1, 1995

By D. R. Gladwell

This study examined the-feasibility of clay mineral identification and quantification by reflectance radiometry and subsequently developed a computer algorithm for deconvolution of the component spectra. Clay mineral analysis of 53 rocks and soils from Alberta, Saskatchewan, Ontario and Nevada by X-ray diffraction (XRD) compare favourably with the radiometric determinations. The application of the technique to precious metal exploration was examined at the Horse Canyon epithermal gold deposit, Cortez Mine, Nevada where low levels of illite and kaolinite are present alongside local silicification. Consequent on the success of the laboratory and field work a field portable clay mineral analysis system was designed and constructed.

Jan 1, 1985

By D. A. Fenton

The reliability of large diameter, high horsepower ball mill is paramount when large production and minimum downtime is required. The 17 ft. x 56 ft. double compartment ball mill at St. Lawrence Cement Company has the first gearless drive built in North America and has the world's largest hydrodynamic bearings currently built and running. The machine has seen three years operation and has met its specifications. The mill was designed by Aerofall Mills Limited and the gearless drive built and designed by the Canadian General Electric Company. This paper discusses the operation of the first North American installation of a gearless drive ball mill from the mechanical, electrical and process aspects.

Jan 1, 1977

By M. J. Laurila

Elemental analysis of slurry streams using X-ray fluorescence (XRF) has long been employed. However, detector technology has limited the application of XRF devices. Using detector technology employed on NASA's Mars Pathfinder to analyze soil samples, Process Control, Inc. has developed an on-line analyzer to mount on a sampling system. The prototype XRF elemental analyzer was installed at Detroit Edison's Monroe Power Plant in January, 1998 and has been employed to monitor feedstock quality. A slurry system has been developed for flotation control. This paper describes the testing of the analyzer using the new, draft ISO standard for evaluating the performance of on-line analyzers (ISO/DIS 15239).

Jan 1, 1999

By J. J. Whittaker

Zaldivar is an open pit copper mine operation located in the Atacama Desert, in northern Chile. The plant produces Cu cathodes using 4 solvent extraction trains. The plant was started up May 1995. Since 1996 the plant has been using on-stream analyzers based on X-ray fluorescence and titration for process monitoring and control. Elemental analyzer alone is not able to provide the critical information for plant operation, it has to be complemented by on-stream titrators integrated to one sampling system. The analyzers are located in a prefabricated shelter. The analyzer system project, operation and performance issues are the main topic of this paper.

Jan 1, 1999