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By C. Crussard, R. Tamhankar

It is the policy of The Metallurgical Society to provide, in the TRANSACTIONS OF THE METALLURGICAL SOCIETY OF AIME, a prompt and accurate medium for publication of reports of significant new research in both the scientific and engineering aspects of metallurgy. Papers submitted to the Society are judged by competent reviewers accord-ing to established criteria for technical merit, accuracy, originality, and presentation. STAFF: Editor, Gerhurd Derge Carnegie Institute of Technology Schenley Park Pittsburgh 13, Pa. Editorial Assistant, M. A. Redmerski Staff Coordinator, James J. Burke THE METALLURGICAL SOCIETY: W. R. Hibbard, Jr., President; J. C. Kinnear, Jr., Past-President; John Chiprnan, Vice President; T. D. Jones, Treasurer; R. W. Shearman, Secretary. PUBLICATIONS COMMITTEE OF THE METALLURGICAL SOCIETY: A. W. Thornton, Chairman; Dennis Carney, John Chip-man, J. C. Fulton, J. H. Hollomon, H. H. Kellogg, A. E. Lee, R. Maddin, J. D. Sullivan, and D. Swan. Review and selection of manuscripts is under the supervision of the following Publications Committees: Extractive Metallurgy Division: T. B. King, Chairman; S. J. Dickenson, R. P. Hermsdorf, R. Schuhmann, Jr., and P. T. Stroup. Institute of Metals Division: Robert Maddin, Chairman, F. Lincoln Vogel, Jr., Vice-chairman, W. A. Backofen, R. W. Balluffi, J. H. Bechtold, M. B. Bever, R. S. Busk, C. G. Goetzel, Paul Gordon, C. D. Graham, .Jr., Robert F. Hehemonn, R. I. Jaffee, F. E. Jaumot, Jr., Irving R. Kramer, A. J. Lena, Harold Margolin, C. J. McHorgue, Russell A. Meussner, J. B. Newkirk, H. W. Paxton, G. E. Pellissier, I. S. Servi, Alan U. Seybolt, A. J. Shaler, and Jack Washburn. Iron and Steel Division: J. C. Fulton, Chairman; T. B. King, F. C. Langenberg, W. 0. Philbrook, and T. 0. Winkler. Published bimonthly by the American Institute of Mining, Metallurgical, and Petroleum Engineers, Inc., 29 West 39th Street, New York 18, N. Y. Telephone: PEnnsylvania 6-9220. Subscription $20 per year for non-AIME members in United States and North, South, and Central America; $25, foreign; $5 for AIME members. Single copies, $4.00, single copies foreign, $5.00. The AIME is not responsible for any statement made or opinion expressed in its publications . . . Copyright 1958 by the American Institute of Mining, Metallurgical, and Petroleum Engineers, Inc. . . . Registered cable address, AIME New York ... Indexed in Engineering Index, Industrial Arts Index, and Chemical Abstracts... Second class postage paid at New Yark, N. Y., and Ann Arbor, Mich. Volume 212, Number 6.

Jan 1, 1959

By W. D. Maier, H. V. Eales

Paper presented at the IAGOD international symposium on mineralization related to mafic and ultramafic rocks held in Orleans, France, 1-3 September 1993. A lithological and geochemical study revealed significant lateral variation of the interval over 170 km of strike, from about 30 m at the Union Section to 220 m near Brits. The cumulates also become more evolved and leucocratic with distance from the Union Section both towards the NE (Amandelbult) and SE (Impala, Rustenburg and Brits). It is inferred that the persistent heat flux from a putative major feeder zone near the Union Section impaired deposition of felsic cumulates in the vicinity, delaying crystallisation of successive phases in parts of the chamber near the feeder. New influxes were therefore deposited on a footwall of varying thickness and lithology in response to different degrees of crystallisation and accumulation along strike. The development of cyclic units of chromitite, harzburgite, pyroxenite, norite and anorthosite was interrupted at different stages in different parts of the chamber

Apr 1, 1994

By Gary Kuhns

Central Florida is among the fastest growing urban areas in the United States, and its rapid development has required the steady construction of various types of civil engineering works. The karst geologic terrain and variable geotechnical conditions, however, present special challenges to the design and construction of deep foundations. The subsurface profile can be idealized as a surficial layer of Pleistocene sands, underlain by the highly variable Miocene-age Hawthorn Group, consisting of various combinations of sand, silt, clay, phosphate and highly weathered limestone. The Hawthorn Group is underlain by Eocene-age limestone that comprises the Floridan aquifer. Vast networks of solution cavities are present throughout the Eocene limestone, sometimes allowing downward raveling of the overlying soils and the creation of sinkholes. In some cases, the relic sinkholes can be filled with soft compressible organic soils extending to depths greater than 100 feet (30.5 m). Driven piles are frequently employed as a deep foundation alternative, although occasionally cast-in-place piles/shafts have also been used. Piles are often driven for bearing in the weathered limestone within the Hawthorn Group, but are sometimes installed as friction piles in the upper soil and intermediate geomaterials. Dynamic pile testing is routinely performed during pre-construction test pile programs, or during production for quality control and assurance purposes. This paper presents discussions on the design and construction aspects of deep foundations unique to Central Florida subsurface conditions and local practice. Foundation issues such as subsurface variability, soil setup, pile damage, negative skin friction, and sinkhole conditions are discussed with the aid of demonstrative case histories.

Jan 1, 2003

By K. Severin, B. Flanigan, P. Marion

“Plutonic-related” gold deposits in Interior and SW Alaska (Tintina Gold Belt) vary significantly in size, grade, vein/deposit morphology, depth of emplacement, distance from causative pluton and metal association. Metal associations such as Au-Bi and Au-As-(Sb-Hg) are a good empirical indicator of depth of emplacement and distance from causative pluton and have been used successfully in exploration. Results from a variety of analytical techniques also suggest a phenomenological cause for these metal associations, e.g. gold and bismuth have linked metallogenesis at high temperatures and thus are best correlated at deposits that are deep and/or close to causative intrusions.

Jan 1, 2000

By A. Ebrahimabadi

Roadheaders are very versatile excavation machines used in tunnelling, mine development, and mine production for soft to medium strength rock formations. Performance prediction is an important factor for successful roadheader application and generally deals with machine selection, production rate and bit consumption. Among many different parameters, brittleness is also one of the material properties related to breakage characteristics and can be used as a cuttability parameter from a mechanical excavation point of view. The main objective of the research study is to contribute the brittleness of rock excavated to construct a new empirical equation for predicting the performance of roadheaders in different material and operational conditions. In this regard, a new performance prediction model for medium duty roadheaders based on a brittleness index (BI) is presented. In this study, rock mass brittleness index (RMBI) is defined in order to investigate the influence of BI on roadheader performance. RMBI is an index which can be used to relate the intact and rock mass characteristics to machine performance. Results demonstrated that RMBI is highly correlated to instantaneous cutting rate (ICR) (R²=0.94). Moreover, through the further analysis and normalization, the pick consumption index (PCI) was introduced as a parameter having a good relation with pick or bit consumption rates (PCR) (R²=0.79). Finally, the new predictive models for ICR and PCR showed very good correlations with the actual measured values. Keywords Performance prediction, roadheader, brittleness index, mechanical excavation.

Jan 1, 2011

Mr. Murray said: Having recently returned from a visit to America, it may be of interest to members to hear something from me of the mining fields and metallurgical works which I had the opportunity of seeing, and the impressions which I formed concerning general practice and conditions there, as compared with our Australian standards in the mining industry, and in matters generally.The most striking feature of the North American continent is thehuge plan upon which Nature has built, the multiplicity of immense mountains, rivers, and lakes, the snow-covered tops of the former forming reservoirs for the latter during the summer months, being most impressive to the Australian visitor. Starting from Vancouver I travelled east for over 500 miles through the wonderful Canadian...

Jan 1, 1927

By Gerald L. Finlinger

This Bureau of Mines publication reviews underground methane drainage programs being conducted in various coalbeds. Equipment used in drainage programs such as drills, underground pipelines, and methane monitoring systems is described.

Jan 1, 1980

By Lawrence S. Darken

STAFF: Editor, Gerhord Derge Cornegie Institute of Technology Schenley Pork Pittsburgh 13, Pa. Editorial Assistant, M. A. Redmerski Production Editor, Otto T. Johnson THE METALLURGICAL SOCIETY: J. S. Smart, Jr., President; C. C. Long, Past-President; K. L. Fetters, Vice President; T. D. Jones, Treasurer; R. W. Shearman, Secretary. PUBLICATIONS COMMITTEE OF THE METALLURGICAL SOCIETY: C. L. McCabe, Chairman; H. L. Bishop, K. L. Fetters, J. J. Harwood, W. A. Krivsky, F. C. Longenberg, R. E. Lund, W. 0. Philbrook, L. L. Seigle, R. L. Smith, and F. L. Vogal. Review and selection of manuscripts is under the supervision of the following Publications Committees: Extractive Metallurgy Division: C. L. McCabe, Chairman; R. E. Lund, Vice-chairman; D. H. Baker, Jr., W. A. Krivsky, R. A. Lewis, Paul Qusneau, A. S. Russell, R, E. Shinkoskey, W. W. Stephens, and M. E. Wadsworth. Institute of Metals Division: L. L.Seigle, Chair-man, P. A. Back, J. J. Backer, l.l. Bessen, J. 0. Betterton, Jr., J. 8. Clark, R. S. Davis, A. E. Dwight, R. W. Fountain, R. B. Gordon, C. D. Graham, Jr., R. W. Guard, J. C. Gurland, E. L. Harmon, J. J. Hager, A. A. Hendrickson, M. Harmon, J. N. Hobstatter, H. H. Johnson, Jr., H. 5. Kolish, R. R. Nash, T. N. Rhodin, R. H. Richman, W. Rostokar, P. G. Shawmon, C. W. Spencer, L. Slifkin, J. K. Stanley, C. D. Starr, R. Steinitz, and H. C. Stumpf. Iron and Steel Division: H. L. Bishop, Chairman; 2. E. Boni, F. C. Langenberg, J. B. Wagstaff, and T. V. Wainwright. Published bimonthly by the American Institute of Mining, Metallurgical, and Petroleum Engineers, Inc., 29 West 39th Street, New York 18, N. Y. Telephone: PEnnsylvania 6-9220. Subscription PetroleumEngineers,$30 per year for non-AIME members in United States and North, South, and Central America; 332, foreign; $5 for AlME members. Single copies, $4.00, single copies foreign, $5.00. The AlME is not responsible for any statement mode or opinion expressed in its publications . . . Copyright 1%1 by the American Institute of Mining, Metallurgical, and Petroleum Engineers, Inc. . . . Registered cable address; AIME New York ..Indexed in Engineering Index, Industrial Arts Index, and Chemical Abstracts.. .Second class postage paid at New York, N. Y., and Ann Arbor, Mich. Volume 221, Number 4.

Jan 1, 1962

By Dan A. Brown

The New Mississippi River Bridge (MRB) employed conventional design-bid-build procurement, but the bidding process included the opportunity for pre-qualified bidders to develop and propose confidential Alternative Technical Concepts (ATC?s) for evaluation and approval in advance of bidding. The ATC process provides a mechanism for value-engineering prior to bid, with incentives and opportunities for both the owner and the bidding contractor. The contract described in this paper is for the river bridge composed of a cable-stayed crossing with two pylons and the anchor piers on each side of the river. The Massman-Traylor-Alberici (MTA) team developed a re-designed foundation system for the main pylon and anchor foundations which utilizes their equipment and experience along with field load test measurements to optimize the foundations. The paper describes the experience with the use of the pre-bid ATC process on the project from the perspective of the bidder, and outlines some of the benefits and limitations of this concept with respect to foundation design and construction. Some keys for success are identified and impediments to the effective implementation of the process are described.

Jan 1, 2011

With the proving of a mineable orebody at Orlando in May 1961, Peko Mines N.L. was faced with the decision of whether to mill the ore on site or to haul it 25 miles to central facilities at Peko. Orlando was a relatively small orebody, so that it was decided to haul, although no reliable assessment of possible ore haulage costs was available.The necessity for a good haul road was recognised from the beginning and a 17 mile, 12 ft wide, single seal bitumen road was constructed, to link the mine to the Stuart Highway and Peko. The initial selection of 20 ton capacity diesel-powered end-tipping ore carts was made, with the best information available at the time.Since then some 130,000 tons of ore have been carted over a period of 3 years, and this paper presents the experiences of this haulage operation and the lessons learned.A second mine has just been brought into operation at Ivanhoe, 19 miles from Peko. For this haul it was decided to use an ore haulage vehicle of the side tipping road train type, which would cart some 70 tons, or more than three times the load of the vehicles initially selected.Only about 5,000 tons had been hauled at the date of this paper, but preliminary figures indicate a cost 01 1· 65d./ton-mile as against 2·47d. for the smaller vehicles.It would appear that the road haulage of ore from small outlying mines to a central plant can be highly economical, if certain basic rules concerning haul roads and vehicle selection are followed. This paper does not try to determine the maximum tonnages and haul distances which would finally make road hauling uneconomical...

Jan 1, 1966

By R. L. Guerguerian

Nowadays, most grinding mills driven by a wrap-around ring motor are operating successfully. Some of the earlier problems could be attributed to the lateral stiffness and stability of their bearings. As a result, modifications to the bearings included the rearrangement of the shoes, or the addition of more shoes, closer to the horizontal centerline. This technical paper reports a study of the effects of bearings on the lateral stiffness of grinding mills driven by a wrap-around ring motor. The discussions cover the design of the four shoe trunnion bearings and examine the effects of the angular location of the shoes.

Jan 1, 2000

By K. Thirumalai

The feasibility of breaking hard rock by thermal weakening and subsequent mechanical impacting was tested, Field tests at a basalt quarry in Dresser, Wis., demonstrated that large hard-rock blocks (5 by 5 by 5 ft) could be effectively reduced in size by this method. A series of secondary breakage tests, using air-propane heating, resulted in an average heating cost of $0.36 per ton. This combination energy approach provides an alternate means of size reduction of large hard-rock boulders for quarry and for underground are chute and grizzly operations where mechanical methods, used alone, are ineffective.

Jan 1, 1975

By David B. Paul

"ABSTRACTThe US Army Corps of Engineers (USACE) has 704 dams in their inventory and over 100,000 miles of levees with a capital value of over $150 billion. Currently, there are 319 dams that are classified as high hazard and have actionable failure modes that will require structural modifications. The most frequent actionable failure mode associated with the inventory is seepage and piping. One of the most effective engineering solutions is the installation of a cutoff to limit seepage. Currently, USACE has over $1.5 Billion of cutoff wall projects under construction and/or design. Given the magnitude of the dam and levee safety issues, USACE is developing a new Engineering Manual (EM) titled “Seepage Control Cutoffs for Dams and Levees.” This EM covers all of the methods to construct cutoff walls. USACE has partnered with the Deep Foundation Institute (DFI) in preparation of the EM to ensure that it is comprehensive and draws from the expertise of the specialty foundation engineering companies that design, manufacture, and construct seepage control cutoffs around the world. The EM contains case histories as well as a comprehensive project statistical summary and guide specification paragraphs. The goal of USACE was to make the EM a state of the art document for use by Districts.HISTORYSlurry wall construction techniques were developed in the late 1940’s in Italy by ICOS. The first use of the slurry trench method of construction in the United States was by the USACE Memphis District in September 1945, to form a partial cutoff along the Mississippi River levee on the Arkansas side of the river just below Memphis, Tennessee. The idea for the project probably evolved from the use at that time of puddle clay trench cutoffs combined with the use of drilling mud for advancing borings. A paddle wheel mixing device was constructed for making slurry from native clays. Trenches were dug to a 20-ft depth using a trenching machine and to a 35-ft depth using a dragline with a 100-ft boom and 2-cu-yd bucket. Backfill was mixed in windrows at the site from hauled-in clay gravel and native materials and pushed into the trench by a bulldozer when the length of the trench was equal to about twice the trench depth. It is amazing that after almost 70 years, the technique is still about the same as it was when first developed by the Memphis District. A soilbentonite cutoff was constructed under the Kennewick Levee adjacent to the Columbia River as part of the McNary Dam Project in Washington by the Walla Walla District in 1952 The first application of a soil-bentonite slurry trench cutoff for control of underseepage at a major earth dam was at Wanapum Dam on the Columbia River in Washington in 1959.The first cement- bentonite cutoff in the United States was constructed at the Tilden Tailings Project to store tailings from the Tilden Mine in Michigan in 1976. The first cement-bentonite cutoff constructed at a dam on a river retaining a reservoir in the United States was completed in 1978 at the Elgo Dam (formerly the San Carlos Dam) in Arizona.The USACE has designed and constructed some of the deepest and most complex cutoff walls for dams since the 1970’s. The first major concrete panel cutoff wall constructed in a dam in the United States was at Wolf Creek Dam (Nashville District) by the ICOS Corporation between 1974-77. The dam has a long history of seepage issues associated with the karst geology that comprises the foundation. In 1968, about 17 years after first being impounded, wet areas, muddy flows in the tailrace and sinkholes in the downstream toe adjacent to the switchyard occurred."

Jan 1, 2014

A preliminary program dated April 25, 1974, was prepared for Development Engineering, Inc. (DEI) on research and development. for laboratory, field and other engineering studies on the disposal of retorted oil shale. This program was revised and published as a final document dated December 17, 1974. The document included discussions on the peculiarities of retorted shale materials to be investigated and discussions of the various laboratory and field tests which would need to be conducted to define their physical and chemical properties. The proposed research and development program was divided into eight work phases as follows: I Program Development. II Exploratory Laboratory Tests on Old U.S.B.M. Retorted Shale. III Laboratory Tests on Pilot Plant Retorted Shales, IV Laboratory Tests on Retorted Shale from the Semi-Works Plant, Field, Test Plots and Ponds. V Field Compaction Tests. VI Infiltration Pond Tests. VIII Final Report.

Jan 1, 1975

By Gábor Csicsovszki

We have developed a novel method - at the laboratory scale - comprising an ion-exchange separation and a membrane-electrolysis step for the purpose of zero-waste regeneration of spent HCl pickling liquors originating from hot-dip galvanizing of common steels. It is aimed at the parallel regeneration of HCl and iron. Experiments revealed that iron can be electrodeposited at high current efficiencies by maintaining the following conditions: 0.04-0.08 M HCl, 500-1000 A/m2, 20°C and stationary electrolyte in a conventional cell. Zinc in the solution did not disturb the deposition of iron, however it contaminated the product and it poisons the anion-exchange membrane required to tackle acidity during electrolysis. For a preliminary separation, anion-exchange tests were carried out to produce pure iron solutions. Beyond the equilibrium studies, column experiments were carried out showing that low flow rates of the loading solution and the ~1.5 M HCl eluent are essential for separation.

Jan 1, 2006

By A B. Christie, S C. Cox

Effective land-use planning requires accurate knowledge of mineral resource potential. Mineral companies during reconnaissance exploration, feasibility investigations and mine development also use this type of analysis. The Institute of Geological and Nuclear Sciences is undertaking a two-year project reviewing the resource potential of the West Coast of the South Island of New Zealand. Spatial prospectivity models have been developed as part of this resource assessment process, using computer based statistical pattern recognition techniques to delineate areas that are prospective for mineral deposits and to test deposit genesis models. Digital GIS data-sets of mineral occurrence were correlated against geology and exploration information. The distribution of mesotherrnal shear zone gold deposits in the Reefton Goldfield, were examined against geological data-sets from both the regional (QMAP) and local prospect-scale mapping. Weights of evidence analysis generated a correlation matrix that highlights relationships and degrees of association that might otherwise not normally be recognised.   Mesothermal shear zone gold deposits have strong positive spatial correlations with Greenland Group host rocks and areas with moderate to high quartz vein densities; moderate-strong positive correlation with regions <500 m from folds, with regions <600 m from faults and five to eight kilometres from granite contacts; moderate correlations with Ntrending fault and fold segments; and no/weak/poor correlations with fault intersections, fold-fault intersections, bends in regional structures and magnetic and radiometric data. The regional and prospect scale data sets give different results, with the more detailed prospect scale mapping giving generally better correlations. This emphasises the value of detailed geological mapping in the exploration process.   Maps generated by prospectivity modelling consistently highlighted areas of known mineralisation and generate targets where follow-up investigation is warranted. The prospectivity per unit area provides a measurable value that should change as new information comes to hand and, in addition to highlighting targets, can be used to measure the impact of increased exploration expenditure and assess the effectiveness of exploration investment.

Jan 1, 2001

By C. A. Geffen

This report, sponsored by the U. S. Bureau of Mines, presents the results of an examination of the safety of the impactor shaft sinking system in comparison to conventional shaft sinking technology. Detailed study of the impactor system was also performed to identify and recommend design changes for optimum safety conditions. A comparison of the impactor machine and its support systems with conventional shaft sinking was made on the basis of relative risk levels. Risk incorporates measures of both the frequency and the potential consequence of accidents. A safety evaluation of the com¬ponent operations of the impactor shaft sinking system was performed using a Failure Modes and Effects Analysis (FMEA) methodology. The results of this analysis show generally that the impactor shaft sinking system is safer than conventional shaft sinking. The potential risk of conventional shaft sinking operations could be reduced by an average of over 35 percent with use of the impactor shaft sinking system. Design change recommendations to further improve the safety of the impactor system include a revised fire suppression system, improved access to and from the operator cabs, reliable noise attenuation measures and improved communication systems. An operational safety manual was also developed for the impactor shaft sinking system.

Jan 1, 1982

By M Carr, K Williams, W Chen, J Plinke

The depletion of iron ore deposits at the face of the mine site dictates the necessity for the exploitation of formerly less attractive orebodies to meet the demand of the modern world. These orebodies will typically be found close to or even beneath the water table where an increasing clay and moisture content will result. Problematic iron ores, colloquially termed as ‘wet and sticky’ material (WSM), can have a significant impact in the material handling stream due to the expensive downtime of processing equipment, which is attributed to the inter-particle and boundary cohesion and adhesion forces of the bulk material.In order to gain a better understanding of the causes of poor handleability, experimental test methods to determine wall adhesion, and inter-particle adhesion within bulk materials were developed. Based on the combination of wall adhesion and inter-particle adhesion measurements, with traditional methods of assessing bulk material handleability, a new method to assess the potential of bulk materials to cause handling problems is proposed. This method reduces the multitude of factors leading to problematic behaviour to a handleability index (HI) [0,1], which is easily assessed and understood. The method is suitable for adhesive materials and applicable for a wide range of material flow, from gravity reclaim stockpiles to transfer chutes and carry back on conveyor belts.Additionally, this research presents an assessment of the HI derived by experimental testing of three iron ore samples. A clear understanding of the problematic behaviour of the iron ore samples is achieved with the use of dust extinction moisture (DEM) tests, which indicates the regions where problematic behaviour may be experienced on-site.CITATION:Carr, M, Plinke, J, Williams, K, Roberts, A and Chen, W, 2017. Determination of the handleability index of adhesive bulk materials, in Proceedings Iron Ore 2017, pp 503–510 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 24, 2017

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

By Will Jansen

When Enron rocked the United States with its Titanic-sized financial accounting scandal, miners and metallurgists were probably too busy on the mine sites in remote locations to wonder about its ripple effect. But then Enron sank, Arthur Andersen tanked and the list of scandals, costing billions of dollars, continued to ripple. Followed by the Public Company Accounting Reform and Investor Protection Act of 2002 (Sarbanes-Oxley), the recent credit crunch and weak economy, the currents from Enron?s collapse eventually washed right into the mine and the mill. These events placed intense scrutiny on metals production accounting processes as traditional semi-qualitative metal accounting practices provided insufficient credibility and transparency. ?There is growing intolerance of organizations that are unsure about the location of thousands of tonnes of ore, which will typically lose 10 to 15% of their notional value on the way to the concentrator,? Rob Morrison wrote in the opening chapter to An Introduction to Metal Accounting and Balancing. ?If the measurement and forecasts also contain qualitative (fudge) factors, a very real suspicion might emerge about just how much metal might disappear (by theft or misplacement) before detection becomes likely.? Metallurgical accounting, put simply, is the tracking and reporting of the quantity and quality (tonnage and grade, usually) of materials entering or leaving each stage from source to product for a specified accounting period. Lacking an accounting standard, metals accounting in precious metal operations has been performed in an ad-hoc, informal manner, leading to numerous errors and unidentified potentially significant inefficiencies and financial losses. As a result, mining companies are beginning to examine the quality of their metals accounting systems since they form the basis of mining company?s financial accounts and reports. As part of an effort to create that accounting standard in the mineral industry, University of Queensland?s Julius Kruttschnitt Mineral Research Centre published the textbook An Introduction to Metal Accounting and Balancing in 2009. While development of a textbook and standard are significant steps forward, the challenge in the precious metals industry is in the application of some of these suggested practices. Though improving process transparency and precious metals accounting reporting accuracy is a key driver for change from the financial side, perhaps even more important is the potential benefit to operational performance that comes with better measurement, accounting and reconciliation systems. Loss of precious metals, processing of waste and inefficient mining and processing systems are all problems that are faced in an operation on a daily basis that can help be resolved through improvements in metal accounting and reconciliation. The financial consequences of such operational inefficiencies and bad decisions based on poor information are arguably greater than consequences of fraudulent accounting. Large discrepancies between mine and mill measurement systems that measure the quantity and quality of valuable material currently exist. Some of these are expected because of statistical variation, but inherent random measurement variation is sometimes an insufficient explanation. Though the mill can usually make much better production estimates through their measurement systems (that is, less variation), this knowledge rarely benefits the mine. 3 Moreover, even if the mine does a reasonably good job of estimating expected production at the grade control level (in situ), issues such as blast movement, poor mining practice and inefficient ore/waste classification make for a disconnect between the in situ estimates of the mine and the estimates from the concentrator. This inhibits effective evaluation of the reserve and grade control models using concentrator estimates. Linking the two ends, mining and concentration, is a neglected area sorely in need of an overhaul. Hence the need for improved mine to mill reconciliation ? the area of comparing, balancing and adjusting production estimates between mine and mill for consistency in reporting.

Jan 1, 2009