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By G. Le Bel

Discussion by G. Le Bel The paper proposes three methods to determine optimum lifetime of a mining project 1. 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. Discount rate selection The opportunity cost of capital represents the rate of return that would be obtained if the capital was instead invested in other opportunities considered to exist. Such opportunities must be bypassed if the available capital is invested in the project studied 2. If these other opportunities carry risk similar to the project under analysis (for example, if they are other mining projects), there is no need to add incremental [ ] risk factors. On the other hand, if these opportunities are represented by the acquisition of government bonds yielding 7%, a risk premium factor must be included. The types of risks associated with a mining venture are shown in Table 1. Together they represent the "business risk" of being a mining company. The individual project risk is important to investors if it differs substantially from the business risk of the company and that of the other investments in mining ventures that we must pass up to invest in this particular project. A risk premium or discount would then be required. This can be illustrated by the following example. Consider that a company has two investment alternatives: one is the Cavender hypothetical project located in Nevada, and the other is the same project located in a civil war zone of central Europe. The second project requires a risk premium factor on the discount rate. Conversely, a project showing highly uncertain returns that are negatively correlated with the returns of the firm's other assets may decrease the company's corporate risk. Deterministic character of NPV calculation The cash flows used in NPV calculations are obtained from a set of variables. These variables are estimated using one parameter obtained from the engineering studies. Each parameter is thus a single value that is often termed a "realistic" or "best estimate" as opposed to "optimistic" or "pessimistic." However, considering that each variable can assume a range of values between the

Jan 1, 1994

By W. M. Ma, Daniel W. H. Su, K. Centofanti, Yi Luo, W. L. Zhong, Syd S. Peng

1.1 INTRODUCTION When underground mining involves total extraction, it induces overburden strata movements. If not properly planned it causes surface subsidence and affects surface environmental conditions. Total extraction usually refers to longwall mining and room and pillar mining with pillar extraction. Surface subsidence has long been a subject of intensive research for scientists all over the world and considerable achievements have been obtained. However due to its difficulties and complicated nature, research into overburden movement has been thus far incomplete as compared to that into surface subsidence. Since surface subsidence is a manifestation of the results of overburden movement, the processes and mechanisms of overburden movement must be fully understood in order to establish the mathematical prediction models of surface subsidence. In this chapter the processes of overburden movement and its zones of movement in the overburden will be discussed. 1.2 PROCESSES OF OVERBURDEN MOVEMENT When total extraction is used, it produces a large void in the coal seam and disturbs the equilibrium conditions of the surrounding rock strata. The roof strata bend downward while the floor heaves. When the excavated area (or gob) expands to a sufficient size, the roof strata will cave. As a result, the overlying strata continue to bend and break until the piles of the fallen rock fragments are sufficiently high to support the overhanging strata. At this tie the overhanging strata no longer cave, but bend and rest on the underlying strata. Strata bending and subsidence develop upward until reaching the surface and forming a subsidence basin. The whole overburden strata and the surface subsidence basin will further go through a period of compaction and gradually become stabilized. Current knowledge regarding the process of overburden movement has been derived from several sources. One is the direct observation of the mined sections and their surfaces, another from field monitoring of strata movements in the overburden, and others from computer modeling and scale modeling in the laboratory. For example, Figs. 1.1 and 1.2 show the results of a borehole monitoring experiment (Borehole B-2) using the full profile borehole inclinometer and full profile borehole extensometer for lateral displacements and vertical subsidence, respectively (Conroy and Gyarmaty, 1983). The panel, 400 ft wide by 5000 ft long and 630 ft deep, was extracted from the Pittsburgh No. 8 seam which had an average thickness of 54 in. The face advanced from east to west. Curve A in Fig. 1.1 shows the inclination of the borehole when it was 45 ft ahead of the face at Position A (i.e., on the solid coal side). The total deviation of the borehole was 1/7000. The first shear movement occurred at 130 ft above the coal seam and appeared to have occurred along the bedding plane with large contrast of rock strata on both sides, i.e., sandstone vs. shale. When the face had passed the borehole 79 ft at Position B, the borehole deformed to assume a bow shape with a maximum deviation of 2.8 in. from the center line. Numerous shearing planes occurred and extended further upward. When the face had passed the borehole by 75 ft at position C, strata subsidence was measured. Fig. 1.2 shows that a strata separation as large as 4 ft occurred at 40 to 100 ft above the coal seam. Above this level, the strata subsided more uniformly with bedding separations within 1 to 2 in. Another example is the longwall mining with complete caving in the Soviet Union's Karaganda Coalfield (Kolebaeva, 1968). The coal seam was 6 ft thick and 154 ft deep. The immediate roof was the fine-grained sandstone interbedded with coarse-grained sandstone. Above this, there was sandy shale and shale. In order to monitor the process of overburden movement, 15 stations were established in a borehole (Fig. 1.3). The elevations of those stations were measured when the face was at various distances from the borehole. Fig. 1.3 shows the movement history of each station. For convenience of comparison, the movement history of each station was plotted on a common reference point as shown in Fig. 1.4. Clearly, the movements of strata from Station # 1 to #6 were nearly simultaneous, i.e., they behaved as a single unit. The strata from Station #7 to # 15 had differential separations, the maximum of which was 40 in. As the face passed by and moved away, strata separations in general reduced gradually. But strata separation between Stations #12 and #13 remained the same until the end of the monitoring period. The total bed separation between Station #7 and # 15 reached 11 in., approximately 18% of seam thickness, when the face was 132 ft beyond. Based on the above observations, the author developed a conceptual model of overburden movement due to underground longwall mining (Fig. 1.5). The above-mentioned two case studies illustrated that subsidence in the overburden strata propagates upward and subsidence velocity decreases from the bottom to the top. When the subsidence velocity at the surface reaches the maximum value, the subsidence velocity at the bottom portion of the overburden strata has decreased considerably and the strata have begun to compact. Bed separation occurs within a certain distance above the coal seam and reduces from the bottom to the top. When the face has moved away, bed separation reduces gradually, so that eventually some beds completely close and others partially close. Bed separation reaches the highest level when the subsidence velocity at the surface is at its maximum value. For instance in Fig. 1.4 surface subsidence velocity was maximum when the face was 38 to 44 ft past the point. At this time the total bed separation was maximum. Overall the strata directly above the opening are subjected to tension in the vertical direction. But above a certain level, all strata move nearly simultaneously. There is also significant shear movement along some bedding planes. 1.3 ZONES OF MOVEMENT INTHEOVERBURDEN After the extraction of a longwall panel or room and pillar section of sufficient width the strata in the overburden are subjected to various degrees of movement from the bottom to the top. According to the movement characteristics, the damaged overburden can be divided into four zones (Fig. 1.6). Caved Zone. After the extraction of coal, the immediate roof caves irregularly and fills up the void. The strata in this zone not only lose their continuity completely, they also lose their stratified

Jan 1, 1992

By S. A. Braley

Water is our most important natural resource, for without it there is no life. It is also the principal natural resource for all manufacturing processes, in particular for the development of power. For these reasons it is essential that water be protected and conserved, with the realization that its quality 18 as important as the water itself. A significant factor in the quality of ground water is the mining of coal -- that other main ingredient of Power. In the mining of coal it is necessary to disturb the geological strata overlying or adjacent to the coal seam. This procedure not only releases water from water-bearing strata or underground aquifers but also exposes other minerals which eventually become the source of pollution or deterioration of the released water as well as of the surface stream into which It is discharged It is then evident that in attempting to utilize one essential natural resource there is degradation of the quality of the other. Many selfishly assume that the principal function of a stream is fishing and recreation, but the real function is the support of industry and agriculture upon which civilization is dependent.

Jan 1, 1959

By Dennis C. Drehmel

Because of their relatively low cost, carbonate rocks are desirable in abatement of air pollution by acid gases. Although many processes and types of equipment have been proposed to control or prevent the emission of acid gases, this paper considers only three: dry-limestone injection, wet-limestone scrubbing, and chemically active fluid beds. For the dry-limestone-injection process, surface area-especially from pores in the 0. 2- to 0.3-micron range-is one of the important parameters which will discriminate between less and more reactive carbonate rocks. Marls, chalks, oolitic calcites, and other fine- grained limestones show larger-than-average surface areas and better- than-average removal efficiencies. Inert chemical impurities such as silica detract from reactivity. A dolomite is not necessarily less re- active than a calcite. For the wet-limestone-scrubbing process, dissolution rate of the carbonate rock controls the differences in stone reactivity. In this process the dolomites are less reactive than the calcites. In addition, more than 90 percent of the dolomitic impurity in Fredonia white lime- stone is inert during limestone scrubbing. Dissolution rate is also a function of particle size for large-grained carbonate rocks. Fine grinding of such rocks will increase the dissolution rate to that of a fine-grained rock. Hence the requirement of high dissolution rates may be met by some grinding of fine-grained material (e. g., marl, chalk, or other limestone) or by fine grinding of coarser grained material. For chemically active fluid beds, chalks have the best capacity to absorb both SO2 and H2S. However, most chalks are probably unsuitable for fluid beds because of high attrition rates. Because dolomites are generally more reactive than calcites with both SO2 and H2S, a dolomite would be the feed material of choice for a chemically active fluid bed.

Jan 1, 1974

By-products are of greater importance in lead and zinc mining than in any of the other major base metals. While I think most mining people would accept that statement, you would probably get some widely varying estimates when attempting to quantify the value of by-products in lead and zinc mining. We are now able to do this with our lead-zinc mine cost model. This model was originally developed as a zinc mine cost model to help us forecast long-term zinc supply and price as part of a study we completed in late 1979 entitled "Zinc - The Next Decade". Before demonstrating the importance of by-product revenue to lead- zinc mines, let me first explain how the cost model was constructed. I will discuss the model as it was originally constructed - as a zinc mine cost model. It has subsequently been expanded to include lead only mines and now can Be run either as a zinc or a lead mine cost model.

Jan 1, 1980

When I reached Warren after the "de luxe" South American expedition I had little idea what was in store for me. From the large check Thayer had handed me just before I left New York I was pretty sure the future would be good, and that before long it would involve Anaconda. Evidently, Mr. Thayer had left it to Dr. Ricketts and John Greenway to work out the details The next morning Greenway asked me to come to his office and told me that he and Dr. Ricketts had discussed the question and that Anaconda would make me an offer I could not refuse. They proposed to pay me almost $1000 a month, more than twice my current salary. They had agreed that I should stay with Calumet and Arizona for the rest of the year to help with Bisbee development and anything I could to assist with the New Cornelia plans and construction Of course I could not turn down such a flattering offer, as I had about reached the limit of advancement with a much smaller company in anything save a high executive job, and it would be a long time before I could be ready to change from exploration and geology to operating. Greenway and I agreed that I would stay with him for the remaining eight months of 1916 without any particular title but helping in any way I thought would be most useful. Bisbee and Ajo Study It turned out to be a busy half year, in addition to many good times with my Bisbee friends. The Uplift Club did not meet as regularly as in earlier years, but Mason Ross, Jim Lewis, Bill Gohring, Roy Mitchell, Hubert d'Autremont, Arthur Notman, and I did have many "bull sessions" and poker games. I saw much more of Greenway than before and made many trips with him to Ajo and later to the new

Jan 1, 1976

By Alessandro Navarra, Aldo Quelopana

Sophisticated models have progressively been developed to address the challenges related to long-term, openpit mine planning under conditions of geological uncertainty. Prior research has acknowledged that strategies for mine planning and the design of mineral concentrators are interdependent; thus, it is highly desirable to optimize them together. However, achieving detailed holistic optimization of the mineral value chain remains unresolved because of the inherent limitations associated with mathematical formulations and computational processing capacity. This paper details a method that contributes to bridging these limitations by employing a novel parallelized variable neighborhood descent approach combined with an embedded mass–balance component using linear programming techniques refined through Dantzig– Wolfe decomposition. This approach is exemplified through a case study of a gold deposit, which illustrates the enhanced performance capabilities of the new algorithm. The findings demonstrate significant improvements in the optimization process for mine planning, providing a stronger link between the mine’s output and processing plant’s capabilities.

Mar 1, 2025

By S. Lin, Y. J. Wang

Fan stall is a notorious phenomenon of axial flow fans. When multiple fans of this type serve a ventilation system, their mutual impacts on the stability of the ventilation system are very complicated and not well understood. Results from laboratory experiments indicated that, when a fan is working across its stall zone (i.e., the pronounced trough on the fan characteristic curve), some branches in the system may suffer abrupt and even drastic changes in air quantity and pressure. The quantity range of the fan that causes the abrupt change is called an unstable operating range. The corresponding quantity range of a branch is called a nonachievable quantity range of the branch, because any quantity within this range cannot be achieved without changing some parameters of the ventilation system (e.g., branch resistances). This paper discusses these important characteristics of ventilation systems by using results from tests on laboratory tubing networks.

Jan 1, 1998

By Lawrence S. O’Rourke

Pricing for tantalum raw materials experienced explosive increases in the period 1978-1979, and-similar declines over 1980-1982. The causes for this are examined. Negative effects on the industry are highlighted. Analysis is provided of subsequent structural changes within the industry which minimize probability of future pricing excursions. Data on markets, sources of material, and outlines of concentration and extractive processes are reviewed. The conclusion is reached that expanded sources, future flat demand, and a broader international base of industry participants are principal forces in this restructure. Flat demand is reviewed as a function of increasing application of tantalum, but in more cost effective forms. This is driven by technical advance, notably in electronics applications.

Jan 1, 1986

By J. Villeneuve, M. A. Reute, E. Verhoe

The objective of EU waste policy is to reintroduce used materials into the economic cycle, especially by recycling, or to return them to the environment in a useful state or at least a harmless state. To support decision-making in complex systems, the standardised ISO 14040 life cycle assessment (LCA) method can be used to quantify and to interpret the environmental repercussions of (changes in) a product system from cradle to crave related to a functional service unit. The use of the standardised LCA method at European level can be characterised as a damage-oriented or top-down method, which is often used in product design. Winning, extraction and processing of metals are part of the interconnected worldwide metals production system linked to product design, manufacture and recycling. This complexity cannot be dealt with using LCA. This paper will discuss a dynamic model that deals with this complexity, at the same time providing detailed bottom-up insight into the complex web of materials referred to as Metal Ecology. An example on the replacement on lead in solders will be discussed to illustrate this.

Jan 1, 2005

By Regina N. Tempel, Timothy E. Eastep, R. Craig Ford, Bryce R. Roming, Geoff Clothier, Maggy F. Lengke

The Climax Mine, near Leadville, Colorado treats acid drainage in a lime neutralization chemical treatment system. Chemical treatment has been successful in reducing the concentration of metals to below surface water discharge effluent limits, but lime usage has not been optimized. A geochemical modeling approach has been developed to increase the efficiency of lime neutralization. The modeling approach incorporates two steps: (1) calibration, and (2) calculation of amount of lime needed to increase pH and remove metals. Results of our work quantify the lime treatment process and improve our ability to predict overall water quality.

Jan 1, 2000

By Nikolay M. Sirakov, Michael L. Feves, Rumen P. Mironov, Daniel R. Hack

Subsurface investigation of sand and gravel deposits has generally been limited to test pits and borings. These techniques are problematic in terms of the accuracy, usability, and cost of the final data. Innovations in the application of geophysics have been gaining acceptance in the aggregate industry, especially to determine depth to bedrock and the extent of uneconomic inclusions. This paper presents a system to optimize the processing and evaluation of electrical resistivity data. The system uses 3D separation, geometrical reconstruction, and visualization of subsurface objects.

Jan 1, 2002

By William E. Lamont

The Mineral Resources Institute (MRI) of the School of Mines and Energy Development (SOMED), University of Alabama conducted studies to determine the potential for upgrading the Eastern Devonian shales by flotation. Results of those studies indicate that flotation concentrates containing 150 liters of oil/t (36 gal/t) can be produced from shale containing 50 liters of oil/t (12 gal/t) as determined by Fischer Assay with good recovery of the kerogen. Organic carbon and trace elements such as molybdenum, vanadium and uranium also are concentrated with the kerogen. Kerogen concentration was found to be a function of the size of grind.

Jan 1, 1983

By Eileen Ashworth

Computer-assisted instruct ion is now being used in areas as diversified as training handicapped children to preflight simulation for airline pilots. This paper reports on two courses that have been developed at SDSM&T on the PLATO system for miner safety training. Advantages of computer-assisted instruct ion for this type of training is discussed. (Figures show examples of actual use.) A discussion will be given on other applications such as maintenance troubleshooting, training of engineers and managers at remote sites and training of local people for working in the mine.

Jan 1, 1983

By Frank McKinley

This paper discusses the basic requirements covering the area between the initial discovery of a deposit and a decision as to whether or not the deposit will support an economically sound mining venture. The procedure for gaining the necessary information and the sequence of steps is in .some respects parallel to gaining like information on deposits other than the sand type. For the sake of simplicity the stages and sequence are presented as follow: first, the initial reconnaissance drilling; second, the exploration drilling to permit initial ore body estimates; third, metallurgical testing; fourth, the estimate of plant and operating costs; and last, the economic balance. The objective of the reconnaissance drilling is to collect sufficient information to reach a decision as to the advisability of further exploration or the abandonment of the area. This initial phase will comprise, in addition to some drilling, a thorough reconnaissance of the area, a study of the best geological and topographic maps of the region, and a study of any literature available, all under the guidance of a geologist.

Jan 1, 1958

By Gregory W. Gustina, Terry P. Boyle

Analysis of the structure of the benthic macroinvertebrate community, consisting of the number of taxa and the relative distribution of total numbers, is a routine method of assessing the ecological quality of streams. Various multivariate statistical techniques, which assess the structural variability of the benthic macroinvertebrate community and the relationship of that variability with natural and anthropogenic environmental variables, have utility in separation of the various physical and chemical factors associated with impact. Multivariate methodology, while computationally complex is statistically rigorous and better integrates physical, chemical, and biological data for more synthetic interpretation. Using the multivariate analysis technique, canonical correspondence analysis, we have analyzed a number of sites in the upper Boulder River Basin, Montana to determine which are the important environmental variables associated with variation in community structure. The results of this analysis an integrated with more traditional analysis of community structure and incorporated in a risk analysis for the mediation of abandoned mines and mill sites within the watershed.

Jan 1, 2000

By R. E. Mclaughlin, R. J. McLaughlin, A. H. Danzberger

Acid mine drainage (AMD) can occur as a natural phenome­non through oxidation of sulfide minerals. Oxidation by air and water can be exacerbated by mining. Because AMD can exhib­it low pH, it is capable of extracting heavy metals from mineral deposits. The result is highly acidic drainage with elevated heavy metal concentrations - the combination of which can cause extensive environmental damage. Because of the importance of these factors, this paper is focused on sulfate based AMD. Due to widespread mining, the occurrence of AMD is ubiqui­tous. As a result, several approaches to treatment have been developed. Chemical treatment using alkali is most commonly employed to treat AMD. There are alternative methods of treat­ment, as well as alternative ways of handling treatment sludges or concentrates. Dewatering of sludge or concentrates is beyond the scope of this paper. Within the family of chemical treatment processes, there are three principal recognized methods, namely, "Conventional," "High Density Sludge" (HDS) and "Heavy Metals Removal Process" (HMRP). All three are now employed or specified for treating AMO at mining sites which are being reclaimed under Superfund. Only limited data are available for more specialized chemical treatment processes such as "ferrate", borohydride membrane and electrochemical methods. Therefore, these data are not included here. Performance data for these three processes are presented in this paper and comparison among them is made. Comparisons include consideration of water quality, sludge characteristics, and operational ease. Capital and operational cost comparisons of these processes were addressed in a previous paper by the authors (see bibliography). The results presented here are impo1tant not only to metals mining, but are also applicable to other industries experiencing metals-laden acidic wastes including: coal mining and prepara­tion, metal plating, and electronics circuit board manufacturing. The acceptance of any process should be based on bench scale demonstration before implementation is contemplated. The three processes included herein are discussed in relation to the particular sites at which they are in use, or their use is planned. The sites selected were representative of the various types of processes and the wastewater parameters.

Jan 1, 1998

By Ryan Ward

The Missouri River Intake Screen Structure and Tunnel (MRISST) is one phase of the Red River Valley Water Supply Project (RRVWSP), a vital piece of infrastructure in the state of North Dakota to transport water to drought-laden communities in the eastern half of the state. The scope of work consists of constructing a cofferdam in the Missouri River, mining a 1,600-foot by 74-inch tunnel from a secant pile shaft near the riverbank into a cofferdam, and erecting a 40-foot Y-shaped vertical pipe structure in the cofferdam to support the intake screens. Construction personnel worked in the river through the North Dakota winter to construct the cofferdam and contended with high hydrostatic pressures and raveling sands, gravels, cobbles and boulders while mining the tunnel. Diligent planning and meticulous execution were essential to overcoming the challenges encountered below the Missouri River.

Jun 13, 2023

By R. B. Tippin

The material balance computer program (MAT-BAL) developed at the Minerals Resource Research Center of the University of Minnesota, has been used in conjunction with routine process profile samples taken in the potash compaction plant at Great Salt Lake Minerals and Chemicals Corporation, Ogden, Utah. In this manner, a uniform data base is being established for the process, and selected key indicators are used for decisions in plant operation and maintenance. With present emphasis on improving product quality and increasing production rates, the standard data base system provides a means of measuring results from test programs to optimize the circuit. The development and application of this process control method is discussed. The compaction plant computer-assisted data base has been in existence for only two years, but it has made significant contributions to the knowledge of the process and continues to assist in monitoring the plant performance. It is anticipated that the material balance program will be adapted to the GSL flotation plant in 1979, and to other circuits in the potassium sulfate chemical plant.

Jan 1, 1979

By A. S. Dremukha

The problems of geological exploration are discussed on the basis of computerized modeling of, complex orebodies, as well as the task of data authenticity evaluation. The theoretical baseof modeling is solving the problem of determining the parametres of orebodies sizes distribution along random intersections by exploratory workings. The relationship is established between univariate distribution moments in the intersections and the moments of the orebodies sizes distribution in three dimentions. It is suggested to use the obtained results for compyter modeling of the orebodies accumulations and for imitation modeling of their exploration. The computer experiments with the models make it possible to establish the optimum parametres of exploration networls.

Jan 1, 1989