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By G. Le Bel

The paper proposes three methods to determine optimum lifetime of a mining project1. The conclusion is that the three methods arrive at the same optimum production rate (by coincidence). It is also stated that: "The stochastic and option pricing models, in addition to providing a more realistic optimum mine life than the traditional NPV (net present value) calculation, showed that the example project has the potential for substantially higher return. By explicitly considering a project's potential risks, the stochastic or option pricing techniques can more accurately describe its probable investment performance." This discussion is intended to demonstrate that: • It is no coincidence that the three methods arrive at the same optimum production rate. • The stochastic and option pricing models do not provide a more realistic optimum mine life than the traditional NPV calculation. • The potential for a substantially higher return is misrepresented. First, a review of investment decision theory in mining is needed. Net present value is the preferred performance measure because of the flexibility offered when comparing various alternatives. However, it presents the following disadvantages: • The discount rate selection is not straightforward. • The NPV obtained represents a deterministic characterization of the variables included in the cash flow calculations, i.e. a single-point estimate.

Jan 1, 1993

By K. Whiting, R. Huffsmith, R. Olsen, D. Adams

Long-term closure alternative selection for heap leach pad effluent is a daunting task. Passive water treatment, if designed with enough long-term capacity, can minimize long term O&M while meeting water quality objectives. Leach pad effluent from a 30-acre leach pad at Basin Creek Mine, Basin, Montana was targeted for long-term water treatment using a passive water treatment system. The objectives and results of design and construction are: 1. Design a long-term passive system utilizing existing infrastructure. 2. Construct a field scale pilot test at the mine site.

Jan 1, 2002

By R. Patterson

Tracer gases have been utilized successfully in a variety of industries, each with specific releasing and sampling methods. The various attributes of tracer gases are dependent on the industry the tracers are utilized in. Tracers must be chemically and thermally stable, safe, odorless, detectable at low concentrations, have a low background concentration, and should not be naturally occurring in the environment if they are utilized in underground mining applications (Thimons et al., 1974). In addition, the tracer gas should be inexpensive, non-corrosive, non-toxic, easily transportable, readily attainable, and non-radioactive (Kennedy et al., 1987). Sulfur hexafluoride (SF6) met many of these above requirements and therefore was introduced as an ideal tracer gas to use in mining industry in the early 1970?s (Thimons et al., 1974). Due to the nature of underground mining including complicated geometry, irregular flows, turbulent flows, obstructed airways, and leakages it is difficult to use conventional anemometer and smoke tube techniques to accurately measure the effectiveness of ventilation controls (Thimons et al., 1974; Klinowski and Kennedy, 1991). There have been several applications of SF6 as a tracer gas in underground metal/non-metal and coal mines. Thimons et al. conducted early testing of SF6 in an underground limestone mine and determined that it is an effective technique for evaluating auxiliary fans, estimating volumetric flow rates in large areas, and measuring low flow velocities. A rapid face ventilation measurement method (FVM) utilizing SF6 was developed by the Bureau of Mines to make face measurements in underground coal mines (Timko and Thimons, 1982). When measuring the effectiveness of jet fans in dead headings SF6 was proven more effective than smoke tubes (Timko and Thimons, 1982). Experiments related to determining methane liberation in the gob were also conducted by injecting SF6 into a borehole (Timko and Thimons, 1982). Also, in an emergency situation where the gob had to be sealed due to a fire, SF6 was released to determine the effectiveness of the seals (Timko and Thimons, 1982).

Jan 1, 2011

By Liming Yuan

To reduce fire hazards from spontaneous combustion of coal in longwall gob areas, a series of computational fluid dynamics (CFD) simulations were conducted by the National Institute for Occupational Safety and Health (NIOSH) to model the spontaneous heating of coal in longwall gob areas. The previous modeling results demonstrate that spontaneous heating of coal usually occurred behind the longwall shields and along the face with a bleeder ventilation system. Assuming a stationary longwall face, the spontaneous heating could turn to a spontaneous fire in several days for the most reactive coal under favorable conditions. When the longwall face advances, the spontaneous heating process will be significantly affected. In this study, the effect of longwall face advance on the spontaneous heating in the gob area is investigated using the CFD model developed in previous studies. One longwall panel with a bleeder ventilation system is simulated. The width of the panel is 300 m (984 ft), while the length of the panel is changed between 1,000 to 2,000 m (3,280 to 6,560 ft). The same permeability and porosity profiles are used for gobs with different lengths. The spontaneous heating first develops in the gob when the longwall face is stationary. Then, the face advances at a certain rate. The face advance is simulated as a series of discrete movements, and the effect of the face advance on the maximum temperature developed during the face stoppage is examined.

Jan 3, 2010

By Stephen Davies

Mining at Hudson Bay Mining & Smelting's Snow Lake Division is now in the mature stage of the mines' lives. These base metal copper-zinc mines have been operating for more than 30 years. Stopes had small pillars called "crown pillars" left between them. These pillars range up to 100 m (330 ft) long by 40 m (130 ft) wide and 15 m (50 ft) thick. Hudson Bay have been successful in removing these pillars by using cable slings, electric scoops, longhole mining and diesel load-haul-dump equipment. The different shapes and sizes of these pillars has required that many innovative techniques be tried in order to find acceptable economic mining methods. An overview of the different methods will be outlined. Background Hudson Bay Mining & Smelting's Snow Lake Division is located in Manitoba some 800 km (500 miles) north of Winnipeg and 200 km (125 miles) by road from the Hudson Bay smelter complex located in Flin Flon, Manitoba (Fig. I). There are currently three producing underground mines and one open pit operating at the Snow Lake Division, producing copper and zinc concentrates. Pillar recovery is intensive and vital to continued production of these mature mines. The crown pillars are producing more than 50% of the current mine production. This figure will increase in the future. The two mines at which crown pillar recovery is taking place and that will be discussed are the 400 t/d (440 stpd) Rod Mine and the 1000 t/d (1100 stpd) Stall Lake Mine, both five-day-a-week producers. Crown pillar mining has been applied for some time at these mines. However, it was only recently that the crown pillars became vital to production. This has necessitated a number of innovative techniques to recover them.

Jan 1, 1992

By M. E. Smith

Waste rock dumps, tailings impoundments and spent leach heaps are common features at mine sites. Many of these waste disposal facilities contain sulfide-rich minerals, which generate acid mine drainage (AMD) when they oxidize. Control of AMD can be achieved by removing one or more of the three essential components in the acid-generating process (sulfides, air, or water). One AMD prevention measure is to cap the waste with an engineered cover system to minimize the infiltration of water and diffusion of air into the system. Possible cover designs include: ? Earthen ?store-and-release? covers (also known as evapotranspiration (ET) or water balance covers), including capillary barriers. These covers require climate conditions where there is both modest to little rainfall and significantly greater evapotranspiration than precipitation, both annually and seasonally. ? Low-permeability compacted clay liners (CCLs) employing fine-grained soils typically compacted at wet of optimum water content. ? Geosynthetic composite covers, comprised of a geomembrane liner placed over and in direct contact with either a CCL or a geosynthetic clay liner (GCL). These systems have been commonly used for base liners for leach pads as well as covers and base liners at municipal solid waste (MSW) landfills in the US for more than 20 years. Comparisons of these different cover systems, both in terms of performance and cost, are presented later in this paper. First, however, a review of the typical mine closure approaches, and the possible rationale behind them, is warranted.

Feb 27, 2013

By P. S. Baker

CRU estimates that the global supply of metallurgical grade alumina (MGA) grew by 5 percent during 2005 to a little more than 61 Mt (67 million st). About 30.7 Mt (33.8 million st), or 50.3 percent, of that originated from Oceania (principally due to the commissioning of the CAR refinery in Australia) and Latin America. In this context, Chinese production surged by 20.5 percent year-on-year to 7.7 Mt (8.5 million st) on the crest of a 17-percent rise in that country’s primary aluminium production. Meanwhile, on the demand side, there was a 6.7 percent climb year-on-year in global consumption to 62.3 Mt (68.6 million st). This reflected a healthy demand for primary metal from aerospace, construction, packaging and passenger transportation (to a lesser degree) in the United States, China, Brazil, South Korea and India. So there was an overall supply deficit of more than 1.2 Mt (1.3 million st). This, combined with an 18.3-percent diminution in closing stocks (down to 35 days of requirement), lifted the average spot price of MGA by 17.6 percent year-on-year to US$448/t (US$406/st).

Jan 1, 2006

By P. Mills

More than 95 percent of all the barite mined and produced is used in the petroleum industry as “drillers mud.” The remaining barite is used in the industrial and medical markets. Therefore, the amount of drilling activity is a good indicator of the health and growth of the barite industry. The four major barite-producing countries in the world are China, the United States, India and Morocco. In 2005, the average number of drilling rigs exploring for oil and gas increased by about 15 percent over the average number in 2004. This increase in oil and gas exploration has resulted in a higher demand for barite and an increase in barite production.

Jan 1, 2006

By J. C. Fox, V. L. Ketellapper

The Summitville Mine, located in the mountains of Southwest Colorado, is an abandoned gold mine. From 1984 to 1992, Summitville was mined for gold using an open pit heap leaching technology. During this period, the volume of acid mine drainage released from the mine significantly increased. This was attributed to the development of the mine pits, the waste rock piles, the heap leach pad, and increased discharges from the drainage adit. The release of this acid mine drainage resulted in the destruction of the aquatic ecosystem for more than twenty miles downstream of the mine. Beginning in 1993, plans were implemented to reduce the amount of acid mine drainage released from the mine. The majority of this work has been completed at the mine. This work includes removal of the Cropsy Waste Pile, closure of the Heap Leach Pad, and revegetation of disturbed areas. Significant improvements to water quality downstream of the mine have occurred resulting from mine reclamation. Aquatic life has returned to portions of the previously mining impacted areas. This study discusses the actions taken to reduce the amount of acid mine drainage generated at the Summitville Mine, the costs of these actions and the resulting reduction in metal loadings. Over 250 samples taken at over 10 locations since 1993 form the basis of this evaluation. Copper loading is analyzed as an indicator of the effectiveness of the actions taken.

Jan 1, 2002

By M. C. Roberts

Currently, mineral producers are suffering through a major downturn in prices for their products, even though it has only been a few years since they were enjoying high prices. From an historical perspective, the current situation is another of the cyclical down-turns that often reoccur every 5 to 7 years or so. This paper uses time trend decomposition techniques to identify the cycles and statistical methods to find the duration of these cycles for a variety of mineral prices. Given some idea of how long and severe these cycles typically are, the mining industry can better plan to weather the downturns and take advantage of the upturns. For example, timing investments in new projects to take advantage of the cyclical upturns can dramatically improve project profitability.

Jan 1, 2000

By S. K. Kawatra, S. J. Ripke

Bentonite clay is used as a binder for iron ore concentrate pelletization. Bentonites are sensitive to cations such as calcium, magnesium, sodium, and potassium that are known to be dissolved in the moisture remaining in the iron ore concentrate. These cations affect the ability of bentonite to absorb water, as measured by the plate water absorbance (PWA) test. This paper addresses the relationships between plant water chemistry and pellet strength for a wide PWA range of bentonites. Experiments were conducted to determine the effect of concentrate moisture solute chemistry and bentonite PWA value on the wet knock and wet and dry compressive strengths of iron ore pellets. Experiments used seven different types of bentonite that had PWA values ranging from 564 to 1033. Flushing plant concentrate with distilled water to remove the dissolved cations resulted in increased pellet strengths, to a widely varying degree, for each bentonite tested; wet knock values increased an average of 92% and dry compressive strength increased an average of 46%. In addition, pellet strengths were not found to be directly related to the ability of bentonite to absorb distilled water, measured by the PWA test.

Jan 1, 2002

By C. Stacy

The mining industry is changing rapidly. Competition among OEM and aftermarket vendors increases dramatically each year as a result of mergers and acquisitions, and especially technology advancements in the mining industry. Adding value to mine operations by delivering technical value and differentiation is becoming more subtle and more difficult to accomplish. Because of this, identifying and protecting intellectual property has become more important to the product development, engineering and marketing/sales continuum than it had been in the past. How companies protect intellectual property and determine the value of those assets is critical to the sustainability and differentiation of technology providers in the mining industry.

Jan 1, 2012

By M. Deal

Particle size analysis is a fundamental measurement utilized in the mining industry, especially in comminution, hydrometallurgy, and mineral processing. While sieves and cyclosizers are the standard methods used to determine particle size distributions, in recent years alternative instruments have been developed that claim to provide more rapid and equally reliable results. Newmont Metallurgical Services has implemented the use of two such instruments, along with traditional methods (sieves and a cyclosizer), on a daily basis. The Malvern Mastersizer 2000 laser analyzer is a wet sample system that can analyze particles in the size range 0.02µm to 2000µm, and the Horiba CAMSIZER® is a dry system that can analyze particles in the size range of 30µm to 30mm using digital image processing. A comparative analysis has been performed to determine the applicability of each particle sizing method in laboratory testing.

Jan 1, 2011

By K. Oraee

Rate of penetration of Tunnel Boring Machines (TBM) has a significant role in the planning, measurement of productivity and performance of any tunneling project. In this paper, the application of Adaptive Neuro Fuzzy Inference System (ANFIS) in prediction of TBM penetration rate is evaluated. For this purpose, a database including Rock Quality Designation (RQD), Uni-axial Compressive Strength (UCS) of the rock, the Distance between Planes of Weakness (DPW) in the rock mass, and empirical data regarding rate of penetration of TBM from several tunneling projects are collected. The Rate of Penetration is then estimated by using ANFIS. These results are then compared with measured TBM penetration rates (actual data). It is concluded that ANFIS can be applied successfully for such purpose and result in high accuracy for prediction for the rate of penetration of TBM. The method provided in this paper can assist the mining engineer to estimate the performance of tunneling accurately.

Jan 1, 2012

By Chee Theng

"Mining professionals are a resilient lot. Sure, copper prices are dismal, permitting processes seem interminable and the top mining companies are shedding jobs like a Shetland sheepdog sheds hair. All the more reason to hone technical skills, reconnect with old contacts and get one’s finger on the pulse of the industry.More than 400 did just that in the balmy sunshine and among the saguaro cactus of the Tucson venue of the SME Arizona Conference.Giving the keynote speech was Patrick Merrin, vice president at Hudbay Minerals (see box), while the luncheon speaker was University Distinguished Professor Mary Poulton, director of the Lowell Institute for Mineral Resources at The University of Arizona.“Attendance was great, especially given the copper price,” said Ta Li, vice president of business development at Tetra Tech and 2001 SME President. “The luncheon speaker was one of the better ones in recent years. Her talk contained a lot of fresh ideas, and practical versus theoretical concepts.”Talk about values, not economicsPraise was unanimous for Poulton, who gave a thought-provoking talk on “The New Face of Mining: The Culture Change for Compatible Mining.” Corporate social responsibility has been embraced by the metals mining industry, and it’s being done right, she said. “So why do we have more conflict? Why are there more protests? Why does permitting take longer and longer?” Poulton made a case for an approach based on compatible, rather than sustainable, mining to present a new face of mining that can be compatible with communities, cultures and the environment, and still be profitable. When the mining industry starts to talk about compatibility between what it is doing and what “me,” as the consumer, wants, what “we,” as citizens of a community, want, and what’s good for the “world,” we’re going to see the next culture change happen, she concluded."

Jan 1, 2015

By Simon D. Strauss

This article is part of a presentation Strauss made Dec. 3, 1988 at the sixth annual American Mining Hall of Fame (AMHofF) banquet in Tucson, AZ. At the banquet, the Mining Club of the Southwest honored Strauss by naming him the 1988 recipient to the AMHofF. (Industry newswatch, page 6). Introduction In the last two decades, there have been two previous periods of sharply rising copper prices. One was in 1973-74; the other in 1979-80. In both cases, a short period of high copper prices was followed by steep and prolonged periods of low prices. In the language of the market analyst, the high prices were called spikes. Is it likely, then, that three or four years from now the present price of copper will show up as a spike in the charts? There are substantial differences between the current position and the markets of 1973-74 and 1979-80. In 1973-74, US copper prices were subject to government-imposed price ceilings of $0.60 per lb through early December, 1973. These were increased to $0.68 per lb through May, 1974. Meanwhile, mines outside the United States were free of restraint. Rising demand in London pushed the price above $1 per lb in the third quarter of 1973. In early April 1974, it reached a peak of $1.50 a lb. In May of that year, the US ceilings were removed and the domestic price began to rise. What were the causes of this price strength? While ceilings held the domestic price below the world market, domestic consumers acquired all the tonnage offered by US mines. Meanwhile, in the world market, buyers feared prolonged shortages. The Club of Rome had warned that world economic growth would be limited by impending depletion of mineral resources. There was al so concern about a copper cartel that might increase copper prices even more. In early 1974, at a special United Nations session, developing-country spokesmen warned the industrialized world to expect high commodity prices. Also adding to the concerns of copper buyers was the fear that when US wage contracts expired in mid-1974, protracted strikes might ensue. The combined effect of this atmosphere was that consumers accumulated large amounts of copper, far above their normal carry. By midsummer, the position changed radically. While some strikes did occur in the United States, they proved short-lived. The most significant development was a massive economic recession. The energy crisis was causing enormous dislocations in the world economy. Construction activities were sharply reduced and automobile sales plummeted. Public confidence was shaken. Copper sales fell precipitately as consumers decided to draw down their swollen inventories. The price came down too. In April 1974, the London price- as noted-was $1.50 per lb. By the end of the year, it was down to $0.57 per lb. In 1973-74, the copper price rise was fed by fears of shortages, cartels, and strikes. In 1979-80, the market rose on the strength of good demand plus political and military instability. The price rise was also fed by inflationary trends, exemplified by speculation in precious metals. Prior to this second spike in copper prices, the market had been depressed despite economic recovery. Despite reduced US output, copper production in the rest of the world was increasing. Though consumption was rising, surplus stocks reached unprecedented levels. At the end of 1977, the aggregate of stocks at the refineries and in the exchange warehouses was 1.5 Mt (1.67 million st). That was more than three months' shipments at then rates of consumption. In 1978, the statistical position improved. Shipments of refined copper that year were 8% greater than in 1977. The result was reduced visible stocks but -just as was to be the case in 1984-86 - the price remained depressed. In 1979, an even sharper drop in visible stocks occurred as shipments rose by another 4%. This time, though, the price responded. In December 1978, the price in current dollars had been less than $0.70 per lb. By the end of 1979, it was above $1 per lb. And in the first quarter of 1980, it averaged more than $1.20 per lb. Military and political developments were a factor. The hostage crisis in Iran was followed by the Soviet invasion of Afghanistan. To many, it appeared that war might result if the Soviets pushed on into Pakistan. At the same time, speculation drove gold and silver prices to incredible levels. As silver prices rose above $40 per oz), copper above $1 per lb did not seem unreasonable. Then, in March 1980, the precious metals price boom collapsed. Copper prices also retreated, though not as much. In February 1980, the copperprice averaged $1.32 per lb. By December, it had dropped to $0.85 per lb. In 1981 and 1982, the decline continued. The present copper situation Why is the current situation different from these two previous episodes of high prices? First of all, today's inventories are far lower than they were in either 1974 or 1980, when the price declines began. The stocks at refineries and in exchange warehouses are substantially less than they were then. More significantly, consumers today have very limited holdings compared with stocks they carried in 1974 and 1980. Even if faced with a downturn in their own business, copper consumers will not be able to stay out of the market. To the extent they have any business at all, they will have to buy copper. And on the supply side, there is also a significant difference. The year 1988 has been unusual. US production is up sharply, responding to higher prices. But production is little changed in the rest of the Free World. Indeed, several of the major producing countries have mined less copper this year than in 1987 despite the prices increases. Peru has had labor problems that have cut its output. Zambia and Zaire suffer from shortages of expatriate technicians, not to mention spare parts. They also suffer from the failure to maintain equipment or perform adequate development. In Chile, the two largest mines, Chuquicamata and El Teniente, have not met their production targets. Chuquicamata is struggling with high arsenic content in its ore. And, in late 1987, severe rockbursts hampered operations at El Teniente. In addition, depletion of some mines in Australia and South Africa has offset rising output at other properties. Indeed, when final mine output figures for 1988 become available, it may well be

Jan 1, 1989

By J. Hindman, E. Moeller

Vermiculite is currently mined from shallow (less than 25 m or 80 ft) surface deposits throughout the world. The largest producers are Palabora Mining of Phalabowra, South Africa (ore stock is a phlogopitemica), Xinjiang Yuli Xinlong Vermiculite of Korla, China, and W.R. Grace of Enoree, SC (ore stock is a biotite mica). Smaller operations are in Australia, Brazil, Russia and Zimbabwe. They also produce vermiculite on a continuous basis but do not export any significant amounts of product to North America. Intermittent and poorly documented production on a minor scale is reported from Argentina, Egypt, India and Uganda. Worldwide vermiculite production in 2004 increased1.7 percent to 432.8 kt (477,000 st). North American production declined, while African and Chinese production continued to increase.

Jan 1, 2005

By Stanley C. Suboleski

1977 was the modern day low point for productivity in the coal industry. At that time, no one could have predicted that the industry was about to enter a productivity rise that would continue unabated through the 1980s. Thirteen years later, the cause of this phenomenon is still not well understood. While many government studies focused on the fall in productivity from 1969 to 1977, none have been undertaken to explain the rise. Some of the likely causes of the gain in productivity during this period will be discussed here. An attempt will also be made to quantify the value of some of the technical innovations that have taken place. The remainder of the gain is assumed to come from non-technical sources. The nature of these sources, although largely non-quantifiable, is also discussed. Since the number of mines that have adopted the technical innovations noted here is largely unknown, the actual contribu¬tion of technological changes to the overall productivity gain can only be estimated.

Jan 1, 1990

By T. Patten

A method for stabilizing mercury containing waste for landfill disposal would be a very cost effective solution for industry. A mercury polythiocarbonate material which is made via a metallurgical process passes a traditional TCLP for mercury. The mercury polythiocarbonate material was subjected to a more thorough evaluation, the Integrated Leaching procedures as described in Kossan (1) and Sanchez (2)The procedure involves leaching the mercury polythiocarbonate material at varying pH and sample size to liquid. The procedure had to be adapted for small sample sizes and finely divided materials due to the product characteristics and available material. The leachates were evaluated and found to be stable within common environmental pH values. The performance details on how Inter-Mountain Labs met the leaching requirements of the procedures and the analysis of mercury are presented.

Jan 1, 2012

By V. T. McLemore

In-situ leaching (ISL) operations have been proposed to recover uranium from sandstone-uranium deposits in NM. ISL (also known as in-situ recovery, solution mining, solution-leach mining, leach mining) consists of injecting a leaching solution into the mineralized zone through injection wells. The leach solution migrates through the formation, dissolves uranium and is recovered through production wells. The uranium is then precipitated through a conventional uranium recovery system. Several criteria must be met in order for in-situ leaching to be successful, most important is that the ore body must be amenable to chemical leaching. A number of ISL operations have been conducted in NM in the past (Mobil, Crownpoint; UNC-Teton, Section 23; Grace Nuclear, Hook?s Ranch, Seboyeta, Church Rock; Anaconda, Windwhip). Kerr-McGee (later Quivera Mining Co., Rio Algum) successfully produced uranium from mine-water recovery (recirculated mine water) from the Ambrosia Lake mines (mid-1960s to 2002). Despite some difficulties, ISL is a viable alternative to recovering uranium and could be utilized in the Grants district with proper aquifer characterization and monitoring.

Jan 1, 2009