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By S. Angioletti

This paper addresses strategic investment decisions when they are nested in a project development format where each project is implemented in phases and each phase is approved to move on to the next phase only if certain technical and economic requirements are met. This configuration is sometimes referred to as a ?Project Portfolio?. Mining companies maintain project portfolios in their exploration investment plan. This study proposes a procedure to best manage an exploration project portfolio including technical and economic uncertainties. The procedure may support decision makers in a simple and intuitive way, while maintaining the rigor and precision required by the rather large amount of financial resources typically called for by mining projects. The procedure was tested in a real case study of a gold mining company and its exploration projects portfolio. The procedure uses the following approaches: i) investment valuation methods under technical and market uncertainties based on Option Pricing Model, Real Option Theory and Option Space; ii) portfolio management and Stage Gate®1 method; iii) Monte Carlo simulation.

Jan 1, 2010

By Robert T. McKnight

Introduction The minerals exploration business, like many businesses, is faced with the problem of valuing future, risky cashflows. These cashflows are derived from those mineral deposits which have been successfully commercialized. Many deposits, however, do not have the quantities or grade of ore to be considered economic at the projected metal prices using the traditional tools of the Capital Asset Pricing Model and discounted cashflow analyses. If one calculates the future revenues, costs and cashflows of one these marginal properties, and discounted it at the appropriate risk-adjusted discount rate, it may have a negative present value. Yet such a property may still have real, positive value in the marketplace. Why would a firm pay money for a property with an (apparent) minus present value? Mining properties such as these are bought and sold in arms- length transactions on a regular basis. Why is this so? Part of the reason relates to the nature of ore reserve information. To generate cashflows, the analyst must t assume that the reserve information is known with certainty when, in fact, reserves are not known with certainty. Mineral reserves are a function of commodity price, extraction costs and the level of (usually drilling) information about the reserves. Stated, or currently known, mineral inventories may vastly understate the true state of nature. Some firms may therefore be buying a property based on a completely

Jan 1, 1988

By A. T. Yu

As a nation, we have been known as perhaps the most wasteful in history. From the perspective of engineers and builders on the other hand, planned obsolescence and demolition did beneficially pave way for growth and provided environment for new businesses. Recent economic recession and intense competition from overseas, however, have drastically changed the economics. The high cost of capital and the demise of indiscriminate plant expansion have totally altered the way we conduct our business and run our operations. As a response to increasing demands for better efficiency with little or no funding available, everyone is forced to make do and do better with whatever little he has. Today it nay not be an exaggeration to state that modification of existing facilities may have finally emerged as a way of life. This paper will outline examples of how several companies have effectively modified existing facilities to do more and do it efficiently without having to demolish everything and/or to spend a fortune.

Jan 1, 1985

By Francis Martino

There are numerous techniques and predictive models used by geologists and mining engineers to define coal reserves and plan mines. The traditional reserve estimation methods commonly used include the isopach, triangular, polygonal, inverse-distance weighting, weighted-moving-average, and trend-surface methods. Geostatistically-based estimation techniques are now being examined by many geologists and mine planners as a superior alternative to these traditional methods. With today's coal mine development costs often exceeding $100 million, and power generation $1 billion, it is logical that a technique that can indicate the degree of confidence associated with a reserve estimate (fuel supply), and thus also the degree of risk, is highly desirable to the coal producer, the financiers, and those desiring to commit to coal utilization under short or long-term supply arrangements.

Jan 1, 1983

By V. Rajaram

The Parachute Creek Member of the Green River Formation in the Piceance Basin, Colorado, contains vast reserves of oil shale, nahcolite, dawsonite, and other accessory minerals. The dry alkali process of sulfur dioxide removal using nahcolite (naturally occurring sodium bicarbonate) has great potential. A room and pillar mining scheme has been designed to extract a nahcolite zone occurring at a depth of 472 m, from the lease application area of the Yankee Gulch Joint Venture. Geotechnical parameters affecting mine design will be discussed. A preliminary development plan for mining at the rate of 1000 t/d will be described in detail.

Jan 1, 1977

By W. H. Jang

Recent research has demonstrated the utility of the FTIRIIRS adsorption density equation for in-situ study of surfactant adsorption phenomena at the surfaces of reactive internal reflection elements (IREs). The FTIR/IRS adsorption density equation is given by (formula) where r is the adsorption density, A/N is the absorbance per reflection, e is the integrated molar absorptivity, 4 is the bulk concentration of the surfactant, d. is the effective thickness, and dP is the depth of penetration. Previously, the validity of the adsorption density equation had been confirmed only from solution depletion measurements with high surface area powders. Now, FTIR/IRS studies of Langmuir-Blodgett (LB) monolayer films of fatty acid transferred to the surface of a calcium fluorite IRE .clearly validate the reliability of the FTIR/IRS adsorption density equation for quantitative analysis of surfactant adsorption. In addition, it was confirmed from the observed absorption band at 1550 cm-1 that the first monolayer of the transferred fatty acid chemisorbs at the surface of fluorite.

Jan 1, 1994

By V. Rajaram

A mine fire or roof collapse may necessitate the reversal of main fans to isolate the fire or provide an escapeway. Hence, to assist the mine operator in estimating the flow and pressure during reversal, Engineers International, Inc. conducted a laboratory and field study of the reverse performance characteristics of main mine fans. Laboratory tests were performed using a 96-inch (2.4 m) diameter vane axial fan to establish the forward and reverse performance characteristics under controlled conditions. Subsequently, a field test was conducted in a Colorado oil shale mine during which two 79-inch (2 m) diameter fans were reversed. The data obtained indicate that reverse performance characteristics are dependent upon the blade angle and the hub to tip ratio. The quantity in the reverse mode ranged from 30 to 65% less than in the forward mode, and the static pressure was directly proportional to the square of the quantity.

Jan 1, 1985

By Wolfgang Pietsch

DR iron') is a generic term for metallized product that results from the direct or solid state reduction of iron ore. In direct reduction, iron oxides are reduced to metallic iron in the solid state without an intermediate melting step. MIDREX ® Iron is the DR iron material produced in the MIDREX ® Direct Reduction Process. Except for some thermal and mechanical degradation, the external physical form of as-reduced DR iron is the same as the feed material. Chemically, oxygen associated with iron is removed leaving a very porous structure. Figure 1 is the scanning electron micrograph (SEM) of the internal surface of a MIDREX Iron pellet obtained from a Swedish oxide pellet during reduction at 760 °C. Figure 2 is the SEM of a polished and etched cross-section through the same pellet showing the amount of intraparticle porosity. As a result of this high porosity, apparent density of DR iron is relatively low, typically a¬round 2 g/cm3, and specific surface is extremely high, typically around 1.0 m2/g or more. Both density and specific surface depend on the raw materi¬al and the operating conditions of the direct reduction plant. Normally, more than 97% of the available iron is reduced into metallic iron with the rest mainly in the form of wustite (FeO). During direct reduction, the gangue in the iron remains essentially unchanged. Removal of oxygen and the corre¬sponding reduction in weight result in a slightly higher percentage gangue in the product than in the raw material.

Jan 1, 1976

By J. H. Wilhelm

Continuous thickeners can be sized either from previous experience, continuous pilot-scale test results, or from batch settling tests. Although it is a relatively simple process to size full-scale thickeners when previous experience or pilot-scale operating data are available, batch testing is often the only realistic method for sizing thickeners due to time restrictions, budget limitations and availability of sample material. Many authors have, therefore, suggested means of running batch tests and analyzing the resulting data. Fundamental thickening theory had its beginning with the work o£ Coe and Clevenger(1). In order to determine the size of the thickener settling area, they proposed that a series of batch settling tests be run at various initial concentrations. The solids handling capacity at each concentration can then be determined and the lowest capacity (maximum area requirements) used to size the thickener. Kynch(2) developed a mathematical analysis in which the relationship between solids concentration and settling rate can be obtained from a single batch settling curve. Talmage and Fitch(3), Yoshioka(4)(5) and Dick(6), have enlarged upon these works to give a basis for methods of sizing thickeners.

Jan 1, 1979

By K. N. Han, M. C. Fuerstenau, T. B. Onlin

A mathematical model describing the concentration profile of fine particles in the axial direction in liquid fluidized beds has been developed for the removal of fine particles. A forward finite differentiation technique has been used to solve a continuity equation with a source term to predict the concentration profile and, hence the recovery as a function of time. With the aid of experimental results obtained using a fluidized bed of 3-cm diam, dimensionless parameters were identified. These parameters were used to predict the concentration profile of fine particles in fluidized beds of larger sizes. Four different sizes of fluidized beds, namely, 1.3, 3.0, 4.0, and 7.5 cm in diam, were used in this investigation. The amounts of bed particles used included 4, 8, 16, 24, 59, and 120 g, and the size of bed particles were 48x100, 100x150 and 150x200 mesh.

Jan 1, 1987

By James D. Piper

In the summer of 1957,9 the University of California sponsored a World Conference on Prestressed Concrete in San Francisco to which were invited a number of Soviet engineers. While attending the conference, these engineers in turn asked the University to form a delegation of American engineers to visit the Soviet Union the following year for the purpose of studying Soviet advances in concrete technology. A six man delegation was formed, and the dates of the Russian tour fixed for May 10th through May 21st, 1958. Before arriving in the Soviet Union, the American Delegation attended the Third International Congress on Prestressed Concrete in Berlin. While there, we noticed that the delegation from the U. S. S. R. used displays and showed motion pictures of many construction projects which we later were shown in Moscow. Our delegation left East Berlin by Russian aircraft on May 11th, and arrived in Moscow that afternoon. We were met by our Russian engineer hosts from The Academy of Construction' and Architecture who made all subsequent arrangements for our itinerary. This Academy has no counterpart in the United States. It. does 40 per cent of all engineering-and scientific work in the building construction field and coordinates 60 per cent of that done by other Soviet agencies. Due to the prestige of the Academy in Russian affairs, our delegation was able to obtain a surprisingly broad picture of construction activities in Moscow and Leningrad in just ten days time

Jan 1, 1960

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 T. D. Kaufmann

When Dr. David Gully solicited this paper last spring a few questions basic to commodity trade between the U.S. and world markets appeared perplexing. Why, for example, when the demand for aluminum was at a peak and when little expansion of capacity had taken place, was the dollar price half of what it had been at the previous peak? Or, why in 1984 when imports surged by 50% as the U.S. economy pulled out of its recession did the dollar not fall, but rather rose by 35%? And, why when the experts all seemed to agree that the dollar was grossly overvalued did the price of gold continue to decline? Surely these were extraordinary times for the mineral economist. When this paper was written in late July, 1985 the answers seemed clearer. The prices of many commodities were not low - the dollar in which they were denominated was too high. In other currencies many commodity prices were indeed high. The dollar was overvalued in trade terms by some 40% caused by an influx of short term coupon investments made by foreign money managers to take advantage of the higher short term interest rates in the U.S. relative to other international banking centers. With a decline in the relative difference in interest rates, an unhealthy buildup of foreign bank accounts and a perception that the dollar would fall, the dollar did start to decline rapidly.

Jan 1, 1985

By N. O. Lotter

The reliability of a set of flotation results is key to minimizing project risk, either at the commissioning of a concentrator or at the point of implementing an improvement to an existing concentrator operation. High-confidence flotation testing (HCFT) was developed for this purpose and is part of the list of technologies at various scales used by Xstrata Process Support (XPS) in addressing these projects. The methodology is based on two principles: one, to ensure that the ore sample is representative and has been well-blended and subsampled; two, to perform the flotation tests in sufficient numbers of replicates with appropriate quality controls, so as to improve the reproducibility of the test data. Across ten years of research on this methodology at Xstrata Process Support, Sudbury, several improvements to the HCFT method and complementary connections between sampling and quantitative mineralogy have been developed. Two case studies are reviewed. These show the capability of this system in both optimizing an existing concentrator operation and in serving a new mine scenario. Further work to improve the efficiency of this procedure has been identified. Key words: Flotation testing, Flotation

Jan 1, 2010

By Walter R. Lawrence

Newmont Gold Company, formerly Carlin Gold Mining Company, is a publicly owned corporation, 95% owned by Newmont Mining Corporation. Newmont Gold Company has operated gold recovery operations North of Carlin, Nevada, since 1965. Development of the Gold Quarry ore body, 19 kilometers south of the original mine, resulted in the decision to construct gold recovery and ancillary facilities in what is referred to as the Southern Area. Plant No. 2, located 11 kilometers North of Carlin, Nevada, was designed to treat 6350 tonnes per day of oxidized gold bearing ore assaying 2.5 grams per tonne of Au at an average recovery of 87%. Flowsheet development conducted by Newmont personnel resulted in the decision to construct a carbon-in-pulp recovery circuit preceded by two-stage grinding, Detailed engineering was done at Toronto by Bechtel of Canada beginning on January 1, 1984. Actual construction began on March 1, 1984, and was completed in June, 1985. First feed was run on June 22, 1985.

Jan 1, 1987

By Paul D. Tomlingson

An effective maintenance program ensures the adequate availability of production equipment. In turn, this availability enables production to maximize utilization and successfully meet production targets. An overall production strategy is necessary to draw all departments toward this common effort. Only then will production targets be met. From the maintenance view this means that production must comply with PM and repair schedules. Purchasing must supply parts and materials on time. Mine engineering must not overwhelm maintenance with non-vital construction. Accounting must provide correct, timely cost information - - etc. This strategy - - its content, effectiveness and enforcement is the responsibility of the mine manager . . . his alone. This paper describes a successful approach to maintenance within this strategy.

Jan 1, 1979

By A. C. Barlow

The use of deep wells for waste disposal is not a new technique. The production phase of the oil industry has been using this method to dispose of unwanted oil field brine since the 1930's The adoption of this method by other branches of industry, however, to dispose of manufactured wastes is a relatively new development, but one which is finding increased use (2). Deep well waste disposal is not an ordinary technique even though it is finding relatively wide application. In fact, just the opposite is true; it is still a rather extraordinary measure. It is not now, nor is it ever likely to be a disposal method which can be assured of success before it is tried.

Jan 1, 1964

By Chee Theng

"Getting minerals out of ores is messy, but mineral processors learn to have fun with it. Celebrating the innate joys of the industry was the theme of this year’s Colorado MPD Conference. At the same time, attendees dug deeper for insights into problems that continue to dog the community, including tailings dam crises, water resource challenges, and a dwindling number of academics to teach and train the workforce (see box).Tailings dam crisesMatt Fuller of Tierra Group International Ltd. brought some of the audience to tears with his impassioned talk on “The Infamous Legacy of Upstream Tailings Dams,” which won the conference’s Lou Cope award for best paper. The talk was especially poignant coming on the heels of the January tailings dam failure in Vale S.A.’s Córrego do Feijão iron ore mine in Brazil, the latest in a series of catastrophic dam failures over the past decade that includes the Fundão dam failure in 2015.Noting that the two dams share a common characteristic — both are upstream tailing dams — Fuller explained the three basic dam construction methods and why certain upstream tailing dams are susceptible to failure (Fig. 1). The downstream, centerline and upstream methods denote the direction the centerline of the dam crest moves with each successive raise in elevation of the dam. With the downstream dam, the foundation for future raises is essentially the same as that of the starter dam, he explained. With the centerline dam, half of the dam is constructed on the same foundation as the starter dam, and with the upstream dam, each successive raise is built out over the top of the tailings.“Downstream dams are expensive to build because each successive raise is bigger, so the sustaining capex to build them keeps growing,” Fuller said. Many decades ago, mine owners realized they could construct a starter dam, put their tailings through a hydrocyclone, generate a coarse sand fraction and stack the sand over the top of the tailings to build the next raise. “Then, there is no sustaining capex, it all comes out of operations,” Fuller added. The footprint is smaller, and it is a favorable means of retaining the tailings."

Jul 1, 2019

By R. Haecker, S. Gupta, P. Somasundaran

Rock disintegration processes are usually inefficient and costly operations in mineral beneficiation, mine development and oil well preparations. Thus, there is a strong need for improving the energy efficiency of unit operations such as drilling and comminution. The effects of selected cations and anions on drilling efficiency in a hard rock formation (Dakota Sandstone) were studied. The zeta potentials and the tensile strengths of the drilled samples were measured under similar chemical conditions. The chemicals tested included MgCl2, Na2CO3, AlCl3, NaCl and Dodecylammonium chloride. The results indicated that drilling rates can be enhanced or retarded depending on chemical conditions such as the solution pH and the type and concentration of reagents. Drilling data are correlated with mechanical (tensile strength) and interfacial (zeta potential) properties of the rock formation. The mechanisms involved are discussed in light of Rehbinder's and Westwood's theories.

Jan 1, 2000

By J. A. Herbst

Until the past decade, the energy-size reduction relationship was the dominant form of mathematical model used in the description of tumbling mill grinding processes (1,2). Typically, in these models some single measure of product fineness (e.g. the 80% passing size, the size modules, the specific surface area) is chosen as the dependent variable and the energy input per unit mass of material being ground acts as the independent variable. In some instances these models have been useful for the correlation of experimental data, but, invariably, they have been found to be inadequate for meaningful process simulation. During the last decade considerable advances have been made in the development of phenomenological grinding models derived from population balance considerations (3-7). In these models a set of dependent variables is employed, corresponding to the set of mass fractions which constitute the product size distribution, and energy input is abandoned in favor of "time in the mill" as the independent variable. The phenomenological models have been shown to provide accurate simulations of the entire size distribution of ground products produced in batch (8-10), locked cycle(11)and steady and unsteady state, open and closed circuit continuous grinding(12,13).

Jan 1, 1973