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By A. Mcdonald, F. W. Breaks, T. F. Morris, S. A. Averill, D. C. Crabtree

Gahnite, a zinc-bearing spinel, is a resistate mineral that may be used as an indicator mineral of polymetallic deposits in high-grade metamorphic terrain. The Ontario Geological Survey recently completed sur?cial mapping and sampling programs in the Separation Lake area of north-western Ontario and Kinniwabi Lake area of northeastern Ontario in which gahnite was recovered from samples of sur?cial sediments. Ternary plots of the composition (ZnO, MgO, FeO[t]) of gahnite recovered from these sur?cial studies reveal three distinct groups: Group 1 is characterized by low (< 1 wt%) MgO values; Group 2 by higher (>1 wt%) MgO values; and Group 3 by higher FeO(t)values than Groups 1 and 2. The composition of in situ gahnite recovered from volcanogenic massive sul?de mineralization, Zn-rich Sedex-type mineralization and peraluminous rare-element mineralized granite and pegmatite also was determined. The composition of the gahnite obtained from sur?cial samples was compared with that of in situ material. Gahnite from the peraluminous rare-element granite and pegmatite overlapped very well with sur?cial gahnite of Group 1. Gahnite from volcanogenic massive sul?de mineralization and Sedex-type mineralization overlapped well with sur?cial gahnite of Group 2. These results suggest that determination of gahnite composition in indi-cator mineral surveys may be useful in exploration programs when assessing the mineral potential of a region.

Jan 1, 1997

By George C. Coupland

"THE PRELIMINARY EVALUATION of the orebodies was computerized for tonnages and grades on a 20- by 20-ft grid. The evaluation was based on drill-core intersections over 40-ft vertical projections coinciding with the proposed bench intervals, taking the deviations of the drill holes into account. The computer print-outs gave an ore distribution and evaluation bench by bench and indicated the areas of varying mineralization. The two orebodies have a combined length of 2,200 ft. and a maximum width of 600 ft. They strike almost due north, dip about 85 degrees east and rake to the north. The computer print-outs were used to design an open pit with an over-all waste to ore ratio of 2.58:1. At the outset, the waste to ore ratio was 4:1. The pit is tear-drop shaped, with the narrow end to the south, and at the surface is 2,600 ft long by 1,800 ft wide. Ramps are 100 ft wide, with a 10% grade. The south ramp is left-handed, starts at the southeast and will continue to the bottom of the pit. A second ramp on the west and north walls runs from surface to join the south ramp at 7 bench. This ramp will handle the total pit production when part of the south ramp, from 4 bench to surface, is lost due to the underground operation. Over-all wall slopes are 53 degrees, and are laid out to avoid prominent protuberances which could relax and become unstable and potentially dangerous (Fig. 1) ."

Jan 1, 1974

By Y. Okita

The Goro Nickel Process, developed over a ten-year period, uses a number of novel processing steps and treats two ore types, limonite and saprolite, together. Nickel and cobalt are solubilized using a 270°C pressure acid leach in sulphuric acid, which rejects the bulk of the Fe into the leach residue as hematite particles. The leach liquor, after CCD, is aerated to oxidize any ferrous iron to the ferric form and is neutralized with limestone to precipitate iron as hydroxides together with gypsum from the neutralization of the free acid. Further neutralization with lime, together with steps to remove suspended solids, reduces the iron to trace concentrations. Nickel and cobalt are directly recovered from the low-iron leach solution by primary solvent extraction using Cyanex 301® (SXl) in a high-strength hydrochloric acid solution. Nickel is subsequently separated from cobalt in a secondary solvent extraction circuit using tri-isooctylamine. A granular nickel oxide is made by pyrohydrolysis, and this allows the recycling of hydrochloric acid to SXl. The process is currently being commercialized to produce approximately 60,000 t/y of nickel as nickel oxide granules and approximately 5,400 t/y of cobalt as cobalt carbonate. This paper describes the process development to control the Fe concentration in the SX1 feed solution.

Jan 1, 2006

By J. F. Fiset, N. Bouzoubaâ, N. Reynier, C. Laviolette, Canadian Nuclear Laboratories

Canadian Nuclear Laboratories (CNL) is developing a disposal strategy for radioactive wastes, which contain significant amounts of uranium, cesium, and mercury. There are safety and economic incentives for the extraction of these elements before permanent storage in deep underground repositories. In addition, the actinide elements are also an important component in rare earth element (REE) ores and considered as impurities. Actinides separation from REE tailings is a significant concern in order to manage radioactive nuclides. Reprocessing mine wastes may present significant financial and environmental benefits. Experiments were carried out with radioactive cemented wastes (RCW) prepared at CanmetMINING. For all of the tested RCW batches, solubilisation yields are above 97% for Cs and 98% for U and Hg. Sulphuric acid leaching with potassium iodide improved the solubilisation of Hg by oxidation and formation of the tetraiodide complex (e.g. HgI4 2-, Kf = 2.1030). Cs and Hg were removed selectively by using potassium cobalt hexacyanoferrate (KCFC) and Lewatit TP214 ion-exchange resin respectively. U recovery using the chelating resin Lewatit TP260 was the most efficient. The presence of high iodine concentration improved the U uptake by the resin. The best U elution was obtained using 1 M Na2CO3, which resulted in 99% U recovery. U was then precipitated as sodium diuranate. A counter current effluent recirculation was performed successfully on RCW. The process was also applied to submerged tailings collected from two U mines and an REE ore. This paper presents an innovative process, using sulphuric acid and potassium iodide, for U, Cs, a

Jan 1, 2016

By A. R. Chambers

Malagash received its name from the Indians many years ago on acco.unt of its turbid (milky) waters, although,&apos; the red men did not appreciate the significance of this turbidity, and were, of course, entirely ignorant of the crystal beds of pure salt that lay beneath their feet. The salt lake of the Mississippian, or Lower Carboniferous period, in which these beds occur, was apparently a large one, for there is evidence of its existence at intervals all the way from Sydney, Cape Breton, to St. John, New Brunswick, 300 miles as the crow flies, and there is no knowing what its other dimensions may have been, as much of this horizon is now buried on the one side beneath the waters of the Gulf of St. Lawrence, and on the other underneath the Atlantic ocean. About midway of the area and underlying the counties of Colchester and Cumberland, there occurs a synclinal basin of which the Malagash salt outcrop forms only a small portion of its northern limit. This basin has been described very fully by A. C. Hayes. (1) The operations carried on at Malagash since Hayes wrote his report have brought to light very little in the way of new geological data, except to confirm his pre-dictions as to the probable faulting of the salt strata, and the effect which these faults would have on mining operations.

Jan 1, 1924

"The Society for Mining, Metallurgy, and Exploration (SME) Inc. developed a guide of minimum standards for reporting exploration results, mineral resources, and mineral reserves for the purpose of informing the general public. The SME Guide has been adopted by the Society.History1. In 1988, at the request of members of the Society for Mining, Metallurgy, and Exploration (SME), Inc., the President of SME formed Working Party #79, Ore Reserve Definition, with the mission to develop guidelines for the public reporting of exploration results, resources, and reserves. A Subcommittee was appointed by the Working Party to draft these guidelines and submit recommendations to SME. The Subcommittee's recommendations were published by SME in the April 1991 issue of ""Mining Engineering"", and as a document entitled ""A Guide for Reporting Exploration Information, Resources, and Reserves"" (the SME Guide) in January 1992. Work continued on an ad-hoc basis until 1996, when Working Party #79 was renamed the SME Resources and Reserves Committee and became a standing committee.In 1994, the Council of Mining and Metallurgical Institutions (CMMI) started a concerted international effort to create a set of international definitions for reporting mineral resources and mineral reserves. An ad-hoc International Definitions Group was formed, with representatives from mining and metallurgical institutions from the United States (SME), Australia (AusIMM), Canada (CIM), the United Kingdom (IMM) and South Africa (SAIMM). A major breakthrough came on October 18, 1997 when the CMMI International Definitions Group met in Denver, Colorado and reached a provisional agreement (the Denver Accord) on definitions of mineral resources and mineral reserves. Concurrently, and since 1992, the United Nations Economic Commission for Europe (UN-ECE) was developing an international framework classification for mineral resources and mineral reserves. Starting in October 1998, joint meetings were held in Geneva between the CMMI International Definitions Group and the UN-ECE Task Force, resulting in agreement to incorporate the CMMI definitions into the UN framework classification."

Jan 1, 2003

By M. O. Makwarela, M. W. Erwee, K. Bisaka

"Energy efficiency in mining and minerals processing forms part of Mintek’s long-term research strategy which includes a specific programme designed at overcoming the challenges faced by the South African pyrometallurgy industry.The electric smelting industry is currently severely constrained by the global economic downturn as well as by the availability and increasing cost of electricity. Efficient utilisation of electricity through energy recovery systems and improved smelting process flowsheets can significantly contribute towards creating sustainable operations.Apart from efficient engineering design and solid process control, smelting of either cold or hot pre-reduced ores has been shown to decrease furnace electricity consumption by more than 40%. Various methods of solid-state reduction tests have been carried out at Mintek in order to select the most appropriate process option in the context of the South African industry. This paper summarises a subset of the results obtained, specifically on pre-reduction tests done on South African chromite and manganese ore pellets.In this set of tests, it was found that the use of an organic binder, together with B2O3 as flux, promotes manganese ore pre-reduction, but retards the pre-reduction of chromite. By pre-reducing the manganese ore feed, significant cost savings can be achieved in subsequent smelting processes and there is potential to minimise manganese losses as a result of fuming, due to possible lower operating temperatures."

Jan 1, 2016

By F. R. Joubin

MR. CHAIRMAN, Members of the C.I.M., and Friends -particularly friends, because I am not entirely a stranger in your city. I was last here some five years ago and it has given me a great deal of pleasure this evening to be able to say "Hello" again to those I had met at that time, when Bourlamaque and V al d&apos;Or were very busy centres of intensive and successful gold exploration. My remarks this evening have to .do with Canada&apos;s Place in the Atomic Age. They will be of a general nature but I hope to tell you ?enough to whet your appetite so that you may be provoked into per-.suing the subject further. Now, atomic developments have become quite commonplace. Words like radioactivity, reactors, nuclear fission, and so on are known to everyone, even the youngsters. I re-member two or three years ago one of my office boys came to me and said "Mr. Joubin, I would like a raise." I gave the request a few seconds of serious thought and finally said "Alright, Jimmy, we&apos;ll give you a raise." However, he made no effort to leave, so after a -couple of seconds more I said, "Is there something else ?" and he said "Yes, Mr. Joubin, could you make that raise &apos;radioactive&apos; to the first .of the year ?"

Jan 1, 1958

By Sunil S. Gandhi

"Uranium occurrences are widely distributed in tuffaceous-argillaceous beds and abundant rhyolitic volcanic rocks of the upper Aillik group, which is more than 3 km thick and over 125 km by 40 km in areal extent. They include partially developed Kitts and Michelin deposits, containing 1560 and 7366 t U respectively.Uranium occurs mainly as disseminated fine pitchblende grains in beds and lenticular stratabound zones, and rarely as coarse pitchblende aggregates and thin veinlets. The Kitts deposit and ten other occurrences are in the argillaceous-tuffaceous beds within a steeply dipping stratigraphic zone, less than 50 m thick and over 20 km long, at the base of the upper Aillik group. The occurrences hosted by the rhyolitic rocks, numbering over fifty and including the Michelin deposit, are in elongate structural-stratigraphic belts or zones, and are characterized by a pronounced enrichment of soda and depletion of potash associated with mineralization. The mineralized zones are affected to a varying degree by Hudsonian deformation, metamorphism and granitic intrusions.The uranium mineralization is interpreted as genetically related to the felsic volcanism, involving syngenetic deposition in argillaceous-tuffaceous beds and epigenetic emplacement in rhyolites. The volcanic activity occurred 1855 ± 5 Ma ago according to a preliminary U-Pb zircon date on porphyritic rhyolite. Pitchblendesfrom the Kitts and Michelin deposits and a few other occurrences in rhyolites have yielded nearly concordant dates in 1810 to 1730 Ma range. They reflect resetting of isotopic equilibrium at the time of Hudsonian deformation. Other isotopic data on pitchblendes and galena from veins and aggregates .in the south near the 'Grenville Front' indicate local redistribution of uranium and radiogenic lead at the time of Grenville Orogeny approximately 1100 Ma ago."

Jan 1, 1986

By M. Al-Khawaja, F. Hassani, F. Mucciardi, N. Razavinia

"In today’s economy many industries are becoming aware of the need to recover some of the waste heat they create. Industrial processes release, on a global scale, over 100 tera-Joules (i.e. 1014 J) of waste heat annually. The recovery of waste heat can lead to a reduction of greenhouse gas emissions and it can also provide a financial benefit which can be obtained by converting some of this excess heat to electricity. At McGill, a research program has been initiated so that low grade waste heat (temperature between 100ºC and 300oC) from process off-gases found in pyro-metallurgical industries is captured and concentrated by using heat pipes and then converted to electricity by a mechanical engine. This paper illustrates the 3 C’s process (capture, concentrate and convert waste heat to electricity). It also provides some preliminary experimental data. INTRODUCTIONThe problematic climate change caused by the use of fossil fuels, the rapid depletion of global reserves and the catastrophic consequences of nuclear power generation call for renewable and safe, resources of energy, for both man and the environment. Extensive researches in the production of energy from renewable sources and improvements in efficiency of current technologies can help us to reverse this trend.The greatest advantages of using renewable energies are that they don’t deplete and they also contribute to a green environment. On the other hand the disadvantage of using these resources is that the energy available from renewable sources is much less concentrated than that provided by fossil fuels and nuclear energy. This makes renewable energy less attractive for large scale industrial uses in most cases. A key target for society for the 21st century is the production of energy from renewable sources at a cost that is competitive with fossil fuels. Fossil fuels represent a concentrated form of energy; usually it is referred to as high grade energy. Nonetheless, there is a vast supply of alternative energy. The sun, wind, water and biomass were the first to be explored. While these are all valid options that warrant concerted efforts and large investments, there is another source of energy that typically is produced by manufacturing industries. This energy is often referred to as low grade waste heat. Most of this energy is simply vented to the environment through the stream of off-gases. In the future it will be necessary to capture and convert some of the low grade heat to a valuable form such as electricity if we are to improve on the efficiency of energy usage."

Jan 1, 2012

By M. Turek

Cost management in the conditions of increasing competition and unforeseen market turbulence constitutes one of the key areas of the enterprise?s activity. In the last two years the demand for hard coal on the domestic and global market of non-renewable resources has increased significantly. Polish hard coal mining industry, as an industry in the stage of decline, received a chance for rejuvenation. However, one of the most significant conditions of seizing this opportunity is the rationalization of mining costs and improvement of production effectiveness. Due to the significance of this issue, the main objective of the paper is to identify the possibilities of improving the production effectiveness in the hard coal mining industry. In order to meet such an objective, in the first part of the paper we measured effectiveness in the Polish hard coal mines in years 2006- 2011. The research encompassed three out of five mining enterprises operating in the country. Then based on the received results, guidelines concerning the improvement of effectiveness of production were created, taking into consideration infrastructural, technical, economic and organizational determinants. Furthermore, opportunities and threats for improving the production effectiveness, stemming from the external conditions have also been indicated.

Aug 1, 2013

By T. Krumins, L. Zunti, R. Frischmuth

Mercury is known to occur in sulphide-bearing refractory gold deposits in the form of sulphide minerals or elemental inclusions. These deposits typically require an oxidative pre-treatment process, such as pressure oxidation or roasting, to achieve economic gold recovery. However, these processes also have the potential to liberate mercury, a portion of which may then be released to the environment through gaseous emissions. Mercury emissions from mine processing operations have been of particular interest in recent years, as governments impose lower emission targets and organizations adopt better industry practices to reduce the environmental and health aspects of releasing mercury into the environment. This paper describes various mercury removal technologies with respect to pressure oxidation gas handling circuits, with a focus on key design variables and technology selection criteria.

Jan 1, 2014

By Tyson Birketi, Françoi Robert, Steve Green, Dan Richardson

Detailed sampling using a portable diamond drill, and inter laboratory comparison of selected samples have been combined with statistical studies of truncated populations to establish the gold content of several outcrops in the Val d&apos;Or area. The outcrops chosen are non-mineralized. The background gold concentration in the rocks of the region is 5 ppb or less. Gold is distributed relatively homogeneously within the outcrops studied except for slightly increased concentrations within quartz-tourmaline veinlets. Three samples, of which 20 grams of powder are analyzed for each, can adequately determine the gold concentration of a structurally simple outcrop in the Val d&apos;Or area.

Jan 1, 1992

By Peter Moser, Thoma Oberndorfer

"Within the research project “Mine Development” (Fettweis and Moser, 1990) a PC-based mine database has been built up since 1991 and so far includes detailed technical and economic data of about 150 under-ground hardrock mines in industrialized countries worldwide. These data represent about 50% of the underground hardrock mines in west and central Europe, Scandinavia, United States, Canada and Australia (Fig. 1). The mining operations included in the database have been visited directly and analyzed with respect to their deposit conditions, their general design and layout and also their operational and economic performance.The main aim of the Mine Database is to make a contribution to an improved planning of new underground hardrock mines. An analysis of current mine planning practices shows, that both personnel and company experience is still a dominant factor in planning new underground hardrock operations. Through the information included in the Mine Database the experience of a single per-son or company is supplemented by the experience of a wider group of people. The Mine Database makes the huge amount of experience that is available worldwide in the field of under-ground mining accessible for new mining projects. From that a contribution to a more reliable mine planning procedure based on the performance of existing mining operations is expected.In addition to its use in planning new mining operations, the Mine Database can con-tribute to the exchange of technical data among different mining operations, especially on equipment performance, etc. Such an information service is offered by the Department of Mining Engineering & Mineral Economics in Leoben and is already being used by different mining companies. To respect proprietory information, company specific information is not released under any circumstances.The cost of building up the Mine Database, so far, is about US$500.000 — two thirds of which is labour, and one third, travel."

Jan 1, 1996

By C. R. Ross

"THE ASSESSMENT of pneumoconiosis-producing dusts in mines and other industries is usually undertaken for one or more of three reasons: (1) To compare dust exposures at particular operations with standards of permissible dustiness in order that hazards may be evaluated and preventive procedures initiated where required.(2) To study particular operations with the objective of improving dust control devices or procedures by locating dust sources. (3) To obtain data which, along with the results of medical investigations, may assist in understanding the causes of dust-induced diseases or aid in the establishment of permissible standards of dustiness. Most dust measurements are made for the first of these reasons -to evaluate dust hazards so that they may be controlled. For this purpose, four quite different assessment techniques have been in widespread use for many years. One of these is based on the konimeter, an instrument familiar to most .Canadian mining men; a second on the impinger, which is also widely used in Canada, and almost exclusively so in the United States; a third on the thermal precipitator, used extensively in Britain and South Africa; and a fourth on the tyndallometer, a light-scattering instrument used in Germany."

Jan 1, 1960

By G. A. Brown

"Mining executives are becoming increasingly involved with decisions of the ""What would happen if ... "" variety. Potential changes in government policy, such as tax incentives, E.G.M.A. allowances, etc. affect the economic future of present and proposed mining ventures.This paper will discuss various measures of effectiveness normally used in assessing this future, such as discounted cash flow, etc., and will describe means of introducing uncertainty into the computations. As the recognition of risk and attitudes toward accepting it are very important in the life of a mine executive, there will be a brief discussion of utility theory and its application to risk analysis.Risk models are usually of a size to warrant the use of an electronic computer. Therefore, to demonstrate the simple interaction necessary between a financial analyst and such a model, data will be read into a remote computer from a time-sharing terminal in the meeting room. It will be shown that changes may be rapidly made and alternative policies investigated ""on line"" to a computer."

Jan 1, 1970

By Jing Li, Weiqiang Lai, Joe Zhou, Jiezhen Ma, Shuibo Chen, Ashele Copper Company, Feng Gao, Guofu Feng

"Copper-zinc ores often contain gold and silver, which can be recovered into copper concentrate by flotation as by-product. The challenges for operations that produce copper, zinc, gold and silver are the separation of copper and zinc and the low grade of precious metals. Ashele copper-zinc ore in north China contains 2.38% Cu, 0.69% Zn, 0.21 g/t Au and 18.10 g/t Ag and the plant produces copper and zinc concentrates, with gold and silver being recovered into copper concentrate. Copper occurs mainly as chalcopyrite and Zn occurs as sphalerite. Copper is well recovered with a recovery of over 94%. However, the recovery of Zn is substantially low (around 50%) due to fine grain size of sphalerite. In addition, gold recovery is much lower than expected and only 33% of gold in the flotation feed was recovered. The grade of gold in copper concentrate is also lower than the required payable grade (1.0 g/t). To determine the cause for lower Zn and Au recoveries, a plant survey program was conducted on the operation. The information acquired shows that the loss of Zn was mainly in the copper concentrates (accounting for approximately 38% of the head assay); of which, 24% was liberated, 8.5% was associated with chalcopyrite and 4.6% was associated with pyrite, indicating that the separation of copper and zinc was the main cause for the Zn loss, with liberation being the second cause for Zn loss. Future effort in improving Zn recovery should be focused on the separation of zinc from copper. Gold in the ore occurs as both microscopic gold and submicroscopic gold, accounting for 36% and 64% of the head assay, respectively. Microscopic gold occurs mainly as native gold and electrum; it is relatively coarse with a grain size of 10 to 240 µm and a large portion can be recovered by gravity. Submicroscopic gold was mainly carried by pyrite (accounting for 38%), and to a less extent, by tennantite (15%) and chalcopyrite (10%). Gold in sphalerite is nominal (1%). It is suggested that more coarse gold and tennantite be recovered and a gold recovery increase can then be achieved to obtain a copper concentrate with over 1.0 g/t Au through flowsheet optimization. Gravity concentration should be investigated and may be worth added into the existing flowsheet to maximum the gold recovery and grade.INTRODUCTIONCopper-zinc ores containing gold and silver is a subtype of polymetallic sulphide ores. Unlike porphyry copper sulphide ores and iron-oxide copper-gold ores, this type of ores often contains substantial amounts of zinc and lead. Polymetallic sulphide ores are mainly distributed in Canada, such as at the LaRonde and Horne deposits. Other examples include Mt. Morgan in Australia and Boliden in Sweden. Globally, production and reserves from gold-rich VMS deposits account for 1370 t gold. This is equivalent to 1% of the world production and reserves, whereas the Canadian total for gold-rich VMS deposits is 870 t, representing close to 10 % of Canadian production and reserves (Gosselin & Dube, 2005a, 2005b). Flotation is the principal process for processing the copper-zinc sulphides ores, for subsequent smelting, roasting, or hydrometallurgical treatment. Oxidized copper-zinc ores can also be processed using leaching technology. For example, at LaRonde operation (a Cu-Zn-Pb ore containing 3-4 g/t Au and 60-100 g/t Ag) the flowsheet consists mainly of a copper flotation circuit and a zinc flotation circuit followed by a cyanidation process of flotation tails. The precious metals are recovered with copper concentrate, zinc concentrate and cyanidation of zinc tails via Merrill Crowe precipitation (Zhou et al., 2005)."

Jan 1, 2016

By Z. Y. Ma, H. Y. Yang

The process of microwave-ultrasound assisted leaching of valuable metals from copper anode slime was proposed in this paper. Design of experiments has been used to study the effect of the main leaching parameters, such as microwave power, ultrasound power and reaction time. The central composite design (CCD) was used to predict the maximum leaching efficiency of copper, tellurium and selenium. The experimental data obtained were fitted to a second-order polynomial equation, and they also were analyzed by analysis of variance (ANOVA). The 3-D response surface plots and the contour plots were applied to determine the optimal conditions. The optimum conditions of microwave-ultrasound assisted leaching process were: microwave power 834W, ultrasonic power 638W and reaction time 403s. Under these conditions, the experimental leaching efficiency of copper, tellurium and selenium were 98.88±0.56% 98.96±0.78% and 98.57±0.67%, respectively, which agreed well with the predicted values.

Jan 1, 2014

By Marc Symbaluk

Core Programs Current ? Aboriginal Involvement Program ? Adaptive Forest Management / Forest History Program ? Grizzly Bear Research Program ? Natural Disturbance Program ? Foothills Growth and Yield Association ? Foothills Stream Crossing Program ? Fish and Watershed Program ? Caribou Landscape Management Association ? Social Science Program ? Local Level Indicators Program ? Communications and Extension Program ? Geographic Information Systems Program ? Mountain Pine Beetle Ecology Program In Development ? Climate Change Program ? Forest Community Program ? Water, Quantity and Quality Program (Water for Life) ? Circumboreal Initiative ? Yellowhead Ecosystem Management Group

May 1, 2008

By Sabry A. Sabour

Metal price is among the key variables in the open pit optimization and the economic evaluation process. The common approach to handle metal prices in open pit mine planning is to optimize the ultimate pit and the mining schedules using a fixed, flat metal price. In this respect, metal price is assumed to be known with certainty throughout the entire mine life, which in some cases can reach 80 years. Given the volatile nature of metal markets and the metal price cycles, the conventional pit optimization approach may generate sub-optimized mining plans, which results in either extra costs to mining projects or lost revenues, or both. Long-term operational decisions such as future pit expansions, beyond the currently optimized limits, cannot be handled using the pit optimization approach based on flat metal prices. There is a growing interest in the mining industry to model and manage such market uncertainty in the pit optimization as well as the project evaluations in order to maximize the value of mining operations. In this paper, the author will outline a practical approach to optimize the ultimate pit taking into account the volatility and variability of metal markets. The proposed approach uses a combination of the pit optimizer of the commercial MineSight package and a simulation-based economic modeling real options valuation approach employing the least-squares Monte Carlo algorithm. MineSight pit optimizer employs both the floating cone for initial optimization exercise and the standard Lerchs-Grossmann algorithm. In this paper, Lerchs-Grossmann option will be used to generate the pit shells. Real options valuation approach used in this study is based on generating multiple metal price scenarios. Metal price uncertainty is modeled using stochastic metal price models such as the geometric Brownian motion and the mean-reverting process. The mining operational scenarios corresponding to the simulated metal prices are then optimized using the least-square Monte Carlo approach. The objective is to maximize the discounted cash flow value of the project while incorporating the operating flexibility to revise the operating status of the open pit with time as new information becomes available. The focus of this work is on the practicality of the proposed uncertainty-based pit optimization approach and the difference it can make to the technical operational mining decisions. A case study of a hypothetical open pit poly-metallic mine is provided. The deposit contains copper, gold and silver grades. The run of mine ore is sent to the process plant that produces copper concentrate with copper as the main metal and gold and silver as the by-products. Four uncertain variables are considered here include copper, gold, silver prices and foreign exchange rate. Both copper price and exchange rate are modeled using the mean-reverting process while gold and silver prices are modeled using the geometric Brownian motion. The case study is performed using both the conventional flat price pit optimization approach and the proposed uncertainty-based one to compare results.

Aug 1, 2013