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By C. Musingwini, A. S. Nhleko

"Since the Global Financial Crisis (GFC) in mid-2008, capital has been more difficult to access. Mining projects must contend with projects from other industries for scarce capital. A decision to invest available capital in mineral projects requires that valuation be conducted to assess the expected return on the projects. The discounted cash flow (DCF) analysis is generally applied for the valuation of mining projects, whereby future cash flows are discounted to present value using an appropriate discount rate. The discount rate significantly affects the outcome of a valuation. Economic and finance theory provides tools to calculate discount rates. The discount rate must account for factors such as the risk and stage of development of the mineral project; hence the appropriate discount rate to utilize in a project is often a subject of debate.The discount rate is the weighted sum of the cost of debt and equity. There are several methods for determining the cost of equity. This study considers the commonly applied Capital Asset Pricing Model (CAPM) and Gordon’s Wealth Growth Model because of their simplicity and availability of parameters required to estimate the cost of equity. This study explores how differences in the cost of equity obtained by these two methods can be explained for a mining environment. Data for empirical analysis were collected from the I-Net Bridge, McGregor BFA, and Bloomberg databases. It was found that Gordon’s Wealth Growth Model provides better estimates of the cost of equity compared to the CAPM under depressed market conditions. Therefore, this research recommends that Gordon’s Wealth Growth Model be used to estimate the discount rates for mining projects during periods of depressed market conditions."

Jan 1, 2016

By Stuart Brashear, Robert Brush, Ben Cook

In early 1993, the Piney River quarry owned and operated by the Blue Ridge Stone Corporation of W W? Boxley received a series of complaints from the owners of a 130 year-old historic farmhouse that had been converted into a bed and breakfast establishment. Since the distance from the quarry to the farmhouse was substantial, a unique method of seismic data acquisition was utilized to determine if perceived blast effects were caused by air blast or low amplitude, low frequency ground vibration.

Jan 1, 1996

By R. L. Derick

On a regular basis, mine personnel should obtain air samples directly from active underground areas as well as remotely from sealed locations. These samples provide mine officials with data relative to the makeup of the various atmospheres. Should conditions underground change, these results can provide a baseline that can assist officials in determining the extent of change. Relating the concentrations of individual gases to time, applying gases to equations, and examining their change over time are tools that have been successfully used to determine if a heating event exists and, if so, the extent of the emergency. These atmospheric status equations have either been developed for the mining industry or adapted from other industries. They serve as tools to assist personnel in determining the condition of underground mine atmospheres. As long as the problem area continues to be ventilated, certain gases, gas ratios, and equations can be used to determine if a fire exists, what type of material could be burning, and what quantity of coal is burning. Once the mine or the involved section has been temporarily sealed, gases, ratios, and gas-derived equations can assist personnel in determining how conditions within the sealed volume are changing over time. To alleviate potential explosions when fresh air is once again introduced into the sealed volume, equations and a diagram have been developed to predict the likelihood of an explosive atmosphere. Similarly, prior to commencing recovery of a mine or section, equations exist that can assist in determining if the fire will rekindle when air is reintroduced. This paper serves as an overview to remind and/or instruct readers about gas-sampling methodologies and gas analyses to assist in determining the status of underground atmospheres.

Jan 1, 2006

By Wilson D, Kirkland J

Compressed air energy storage (CAES) uses low cost off-peak energy to compress air and pump it into pressurised underground storage. Expanding the air through a modified form of gas turbine generates electrical energy when required. While generating power, a CAES station consumes approximately one-third of the gas required for the equivalent installed capacity of a conventional gas turbine. Air can be stored in underground rock caverns, caverns in salt domes, or in aquifers. Existing CAES power stations use caverns mined out of salt domes. Aquifer storage for CAES has been proposed, but not yet implemented. The groundwater in the aquifer would be displaced during air injection and when required the air would be extracted using the natural hydro-static pressure. Victoria has no salt domes, but has aquifers onshore in the Gippsland Basin with geological dome structures of suitable depth, discovery pressure, porosity, permeability and caprock for CAES development. Field tests costing several million dollars would be required to prove the suitability. The most suitable aquifer is near Seaspray, where several dome structures exist. The aquifer, comprising of coarse sands capped by coal and mudstone, is some 600 metres deep with a hydrostatic pressure of 6.3 MPa. Computer simulation of injection and extraction of air from the aquifer under various combinations of horizontal and vertical wells, permeability and tubing head pressures indicated the largest aquifer structure had the capacity to sustain a 300 MW station. A well field comprising of 24 directionally driven wells with a horizontal exposure to the aquifer would achieve the air flow rates required. Using plant similar to that recently installed at McIntosh Alabama USA, would mean high capital costs compared to standard gas turbine plant. However, a review of modem gas turbines indicated that they could be easily and economically adaptated to CAES duty. Adapting a 120 MW gas turbine would give 344 MW output. A separate air compression plant would be used. Economic evaluations indicate that, for gas prices above $1.95 per GJ, a 344 MW CAES plant is more economic for intermediate/reserve load duty than simple cycle gas turbines.

Jan 1, 1992

By E. H. Cho, B. Conner

Three sulfide minerals, chalcopyrite, sphalerite, and pyrite, were leached using a bioleaching mode and an electrobioleaching mode. The former mode was used to leach the minerals with the bacterium A. ferrooxidans in a bioreactor. In the latter mode, the leaching of the minerals was performed in a combination of a bioreactor and an electrochemical cell. In this set-up, the solution was circulated between the bioreactor and the cathode compartment, the two reactors were in series, and the cell was operated intermittently. The mechanism is such that an increase in Fe(II) concentration, which is a nutrient of the bacteria, by electrochemical reduction of Fe(III) would increase the bacterial population and in turn would accelerate the leaching of the mineral. It has been found that the electrobioleaching of chalcopyrite is an improvement over the bioleaching with respect to the fact that leaching conversion is higher and a high level of Fe(II) concentration can be maintained. However, the electrobioleaching of sphalerite does not show any improvement over bioleaching. The electrobioleaching of pyrite is similar to that of chalcopyrite, and this has potential to be used in applications such as coal desulfurization and pretreatment of refractory gold ore in heap leaching where fine gold particles are entrapped inside pyrite particles.

Jan 1, 2006

By G. Luttrell

Coal preparation plants play an important role in modern society by providing high quality feeds for coal-fired utilities, industrial boilers and metallurgical coke facilities. Unfortunately, field data indicate that preparation plants are often not operated under optimum conditions, resulting in lower productivity and lost profits. In many cases, this shortcoming can be attributed to a failure by plant operators (i) to recognize the importance of correctly adjusting plant operating conditions to accommodate requirements dictated by coal sales agreements within different coal markets and (ii) to properly account for variations in product moisture with particle size across different plant circuits. This paper discusses the important influence of moisture constraints on preparation plant optimization and provides a case study to illustrate the potential gains that can be realized via proper understanding of plant moisture control.

Jan 1, 2009

By Lam. E. K., J. W. Jarvi, B. P. Bharadwaj

"The Rabbit Lake Operation is located in Northern Saskatchewan on the western shore of Wollaston Lake approximately 800 km north of Saskatoon, Saskatchewan.The Operation is owned by a joint venture of Cameco Corporation and Uranerz Exploration and Mining Limited. Cameco is the operator.The Mill started production in June 1975 under the ownership of Gulf Minerals Canada Limited and over the past twenty years has increased the rated production capacity to over twice the original design.The Mill was originally designed to process 485,000 tonnes per year of ore with an annual production of 2.0 million kg of U308 (yellowcake). During the past ten years changes in ore sources and process modifications have led to increased milling capacity and production targets. The Mill has treated a total of 8.6 million tonnes of ore and produced over 40 million kg of U308 in the twenty year period, despite the shutdown and cutbacks in operating time since 1989.The 1995 tonnage throughput was 206,000 tonnes per year. Annual production though has risen to 3.6 million kg of yellowcake despite the departure from full-time to half-time operation in 1991 (7 up-7 down). The forecast for the coming years will see tonnage rising from 300,000 to 570,000 tonnes, production of 4.5 to 5.4 million kg of yellowcake and an anticipated return in the year 1998 to full time operation.This paper will give a brief history of the Mill and focus on the present flowsheet and recent improvements to the process."

Jan 1, 1996

By D. Nyungu

Despite observations of spalling and damage of mine excavation wall rock in the Bushveld Complex (BC) over the passage of time, there have been very few time-dependent or creep tests carried out in South Africa on rock, particularly on BC rock types. The research described in this paper deals with the investigation of stress and strain conditions influencing spalling of wall rock in BC mine excavations, and the influence of time on the tensile strength of several BC rock types. Time-dependent laboratory testing of BC rocks was carried out in indirect tension. The results show that the magnitude of the tensile strength of BC rock types is approximately 5% of their uniaxial compressive strength magnitudes. The average long-term uniaxial compressive strength of the BC rocks, interpreted from the axial stress-volumetric strain graphs, is 56% of the UCS value. The long-term tensile strength is shown to be less than 70% of the normal tensile strength. Extension strains at tensile strength failure ranged between 0.16 and 0.21 millistrain. Values corresponding with the long-term tensile strength are less than 70% of this range, namely, 0.11 to 0.15 millistrain. These results represent new knowledge, since such rock testing and analysis does not appear to have been carried out previously on BC rock types. Elastic numerical modelling was carried out to illustrate the extents of tensile stress zones and extension zones around of typical BC mine excavations. The models showed that large zones of extension strain can occur around BC excavations, and that the magnitudes of the extension strain can substantially exceed the critical values determined from the laboratory testing. The implication of this is that there are substantial zones surrounding BC mine excavations that will be prone to time-dependent spalling conditions and perhaps more significant failure.

Jan 1, 2014

By R. Farnfield, W. Birch

Arguably, some of the most restrictive statutory blast vibration requirements attached to mineral extraction operations can be found in the United Kingdom. Such limitations are, as a rule for the UK, stipulated together with a required statistical confidence that has to be observed in the blast design process in order to ensure total planning compliance. A key element in this procedure is the effect imparted by vibration data scatter from previous blasts as this becomes reflected in the site’s operational standard error statistic and in turn directly influences the maximum instantaneous charge weights that can be justifiably employed. The greater the scatter, the lower the compliant charge weights become.

Jan 1, 2006

A New Ingersoll-Rand Turbo Blower The Ingersoll-Rand Co. has added to its Turbo Compressors and Blowers a low-pressure machine t o handle volumes from 3,000 to 35,000 cu. ft. per minute at from 1-2 ½ lb. These are particularly adapted to such service as foundry cupola blowing, atomizing oil for oil burners, supplying blast to heating and annealing furnaces of various kinds, blowing air for water-gas generators, pneumatic conveying and ventilating. They are of the single stage, double flow type and are furnished either electric motor, steam turbine or water wheel driven.

Jan 6, 1916

Some low grade South Australian iron ores were classified on the basis of their physical characteristics. Ores from Mount Christie and Billeroo are coarse grained mixed ores; Mount Christie ore could be concentrated by gravity or dry magnetic separation at 10 mesh, but Billeroo ore needed to be crushed minus 36 mesh. Ores from Razorback Ridge and Wilgena Hill are fine grained mixed ores; ore from Wilgena Hill could be concentrated by flotation, but poor results were obtained on Razorback Ridge ore. Malcolm Creek ore is non-magnetic and crystalline, and can be concentrated by flotation, but the deposit is small. Ores from Grants Quarries and Peeralilla Hill are nonmagnetic and earthy and could not be satisfactorily concentrated.INTRODUCTIONThe Geological Survey of South Australia has for several years been undertaking a systematic study of the iron ore resources of the State (excluding the Middleback Ranges) in relation to their geology, reserves, and beneficiation. As part of the latter phase of the investigation samples of the ores have been submitted to The Australian Mineral Development Laboratories (AMDL), and it was the study of these samples which provided the material for this paper.The mineragraphic and metallurgical work was undertaken by several officers of AMDL and the results are contained in unpublished reports submitted to the South Australian Department of Mines. Field data published here was obtained from unpublished reports by G. F. Whitten, Senior Geologist, Iron Exploration, of the Geological Survey of South Australia.

Jan 1, 1964

By R. Owen

An overwhelming amount of data can be collected around the blasting process. This information can include blasting product, pattern design, blast results, and routing. It is only when these data sources are combined in a concise and accurate form that they are of real use in determining the safety and economic implications of each parameter. Two key technological aspects of blasting are drill fleet management (DFM) and size fraction analysis (SFA). As these technologies are integrated as near-real-time measurement and QA/QC tools, the resolution and realization of blasting parameters is significantly increased. The Freeport-McMoRan Morenci Mine has integrated these technologies along with other existing database structures to create a responsive and sustainable tool for reconciliation, forecasting and parameter matching. This ability allows Morenci to customize blast patterns to meet the criteria most critical to each shot, whether the impact is influenced by routing and recovery, equipment maintenance or safety concerns. DRILL FLEET MANAGEMENT The current DFM was stabilized in its current form in mid 2009 after database and hardware maintenance met stability requirements. Currently the system is running on 12 production drills. The system receives pattern layout and is capable of semi-autonomous drilling over the entire district. The fleet is capable of drilling in highly altered intrusive units and hard granites through the range of sedimentary and volcanic units that comprise the Morenci District. The system brings a level of accuracy not achievable with earlier paint-marked patterns. Depth control is also increased along with more consistent wear and maintenance patterns due to semi-autonomous drilling.

Jan 1, 2011

By K. Freytag

The extraction of lignite in open-cast mines has a severe impact on the landscape. Proper landscaping after the shut-down of the mines has always been the statutory responsibility of the mine operator. The large area of the land used for open-cast lignite mining requires special regional planning procedures well in advance of the permitting procedure stipulated in the mining law. The lignite plan determines, among other things, the objectives of land reclamation. These objectives will then be outlined in more detail in the mine operation plans and implemented accordingly. Apart from the actual mining laws and regulations, a large number of environmental laws also determine the process of land reclamation. The success achieved in the field of land reclamation in all mining regions during the recent decades has shown that the lignite mining industry creates new landscapes that do not leave any scars in the countryside and merge very well with it.

Jan 1, 2005

By A J. Cornah

Critical decisions in iron ore project evaluation and production are based on global and local spatial estimates of primary mineral deposit properties (such as in situ geochemical grades) and geometallurgical responses (such as screened, washed or concentrated product yields and grades), which are derived from limited sample data. These spatial estimates are typically made using classical geostatistical techniques, which fundamentally assume that the attributes of interest behave additively. This assumption is generally appropriate for æprimaryÆ variables but æresponseÆ variables may behave non-additively and therefore their direct linear estimates may be biased.In this paper an existing additivity testing mechanism is used to quantify the bias resulting from direct linear estimation of a non-additive iron ore attribute. Data from a magnetite project are used to determine the circumstances under which such biases may be of material impact. The implications for iron ore resource estimation, geometallurgical modelling and grade control are outlined and discussed.CITATION:Cornah, A J, 2013. Assessment of the impact of non-additivity in the estimation of iron ore attributes, in Proceedings Iron Ore 2013 , pp 129-136 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 12, 2013

By P. den Hoed, R. I. Rambiyana

"Four sulphide minerals - pyrite (FeS2), pyrrhotite (Fe1-xS), pentlandite ([Ni,Fe]9S8), and chalcopyrite (CuFeS2) - contain the base metals and most of the iron in concentrates of platinum group metals (PGMs). In the pyrometallurgical processing of PGM concentrates these sulphides form a matte during smelting, and iron and sulphur are removed from the matte during the converting process. This paper discusses the roasting of Merensky concentrate in air before smelting, with the purpose of reducing the matte load to the converter.Roasting tests were conducted in a bench-scale rotary kiln at temperatures from 350°C to 700°C. The concentrate tested contained 17.4% sulphur and consisted of 23% pyrrhotite, 16% pentlandite, 11% chalcopyrite, and 2% pyrite. The particles were fine (d50 = 22 µm), and all the sulphide particles were liberated. Roasting in air at 550°C and 650°C for 20 minutes removed respectively 60% and 70% of the sulphur. The iron in the sulphides was oxidized to Fe3O4 (magnetite) at temperatures below 500°C and to Fe2O3 (haematite) at temperatures above 550°C. At 700°C the bed sintered and copper oxides formed. At temperatures below 450°C oxidation was incomplete: pyrrhotite remained and only 30% of the sulphur was removed. Smelting tests were conducted to assess matte fall and the deportment of copper and nickel to matte. It was evident that roasting resulted in lower matte falls (a drop of approximately 60%) compared with matte falls from unroasted concentrate. The iron and sulphur levels in the matte were reduced to below 3.5% and 22% respectively.This paper also briefly describes the mechanisms by which pyrrhotite, chalcopyrite, and pentlandite are oxidized during roasting. For chalcopyrite, the mechanism proceeds through an intermediate solid solution phase, which extends from Cu1.02Fe1.04S2 to Cu2.04Fe0.72S2 to a copper-rich solid solution of bornite (Cu4Fe1.4S4-Cu2S). The oxidation of pentlandite proceeds through a monosulphide solid solution (Ni0.39Fe0.53S-Ni0.74Fe0.15S) to a solid solution of heazlewoodite ([Ni,Fe]3}xS2). These mechanisms are explored in relation to chemical thermodynamics and microstructures."

Jan 1, 2015

By James A. Schneider

Selection of resistance factors within Load and Resistance Factor Design (LRFD) requires accurate assessment of uncertainty and bias in load and resistance. To date, many studies have focused predominantly on the assessment of uncertainty, while the potential for bias appears to be the dominant factor in design for consistent levels of reliability under a variety of situations. Bias comes from factors which have been ignored in design method development but significantly influence resistance when extrapolating from conditions typical of databases to those at a given site. Uncertainty and bias can be quantified as the coefficient of variation and mean (or median) of a data set, respectively, for statistical assessment of load and resistance factors. This paper first presents an overview of statistical assessment of resistance factors, and then discusses factors that influence uncertainty and bias when extrapolating to situations outside of conventional databases of driven pile axial capacity.

Jan 1, 2009

By George L. Gates

[When clays e.re mixe~ "Jith "~later to nake mud fluids f'ol' use in :irilling ','Iells "for oil and gar: h;:r vue :;'0 tary me thee. t 18 liquid mij~ tUl"es have certair.. phypicr..l characteri.",t.ics that vary ",dth t e Qlldlltit.y find]

Jan 1, 1941

By J. Molgaard, J. Masounave, J. Prinsen, P. Beaulieu, G. Huard

"A study carried out on behalf of the National Research Council (NRC) indicates that economic losses due to wear in the Canadian mining industry are in excess of $700 million annually. Severe wear, mainly by abrasion, was identified as the most important wear mechanism in terms of possible savings. One way to reduce losses would be the proper use of databases. A joint project of The Canadian Institute of Mining and Metallurgy (CIM) and NRC (Tribology laboratories at IMRI) has been initiated to create a factual database containing all relevant experience in the area of wear in the Canadian mining industry. As a first step, a prototype covering slurry pumps is being built. This should help to answer many questions, such as the number of people involved, interest from industry, cost vs benefits, etc.IntroductionTribology is concerned with the understanding of the mechanisms of friction, wear, and lubrication.Tribology is concerned with the correct use of materials for interacting solid surfaces, with the interaction of those surfaces with lubricants, with the chemistry, physics and use of lubricants and their additives. It is concerned with the reduction of friction and wear (or, in the case of belts, brakes, clutch plates, and similar devices, in achieving optimum friction with minimum wear) and is concerned with the avoidance of associated failures in machinery.Lubrication is usually the solution to a problem of friction and wear. Yet far from all the problems of friction and wear are solved by lubrication. The wear of grinding rods or shovel track pads can hardly be solved by lubrication, to name just two examples with which mining engineers will be familiar. There are indeed many situations of wear and friction where the surfaces in contact are unlubricated.In part, tribology is a matter of design. A major aspect, however, has to do with the choice of materials, to satisfy external constraints upon the component design or choice. The operating conditions for much industrial equipment, particularly in mining are, often very severe. The development of wear resistant materials, including materials which are applied as coatings, is clearly an important technology from the point of view of tribology."

Jan 1, 1987

By O. E. Palasvirta

Several drum-type, low-intensity dry magnetic separators have recently been described 1,2,3,4 all of which share at least two generic similarities. The magnet consists of a multiplicity of poles of alternating polarity and, the speed of the drum shell, relatiw to the magnet, is such that the magnetics are agitated through rotation of the magnetic particles around their individual axes. The speed of the drum relative to the magnet (differential speed) determines the frequency of the field reversals. For effective agitation this frequency generally has to be above a specific value, which varies according to the mean particle size of the magnetics. With separators of small diameter, say less than 11/2 ft., a sufficient differential speed for treatment of fine magnetite can be attained only by rotating both the magnet and the drum separately; separators of large diameter may attain sufficiently high differential speeds with stationary magnets. Separators of large diameter thus have the advantage of simplicity of design. The capacity of a separator of this type is directly proportional to the speed of the shell. As the centrifugal force opposing the magnetic force increases at a slower rate than the peripheral speed of the shell when drum diameter is increased, large drums can be operated with higher peripheral speeds. Thus they have a higher capacity than smaller drums. Separation is also a statistical phenomenon, i.e. the grade of concentrate improves as the number of agitations or rotations of the magnetic particles per separation increases. As separators of large diameter have space for a large number of magnets they are best suited for production of optimum grade concentrate. The statements above are general clues For separator design. In the following an expression IS derived showing a more exact relationship between the pertinent separator variables. As both magnetic attraction and centrifugal forces are directly proportional to the volume of the affected bodies, complications in mathematical analysis, arising from variable particle size, are avoided by considering the force per unit volume of affected material. For the magnetic force per unit volume Runolinna (3) gives the following equation: V " 1 + N(ur, - 1) uo dr (1) where ur and uo stand for the relative permeability and the permeability of vacuum, respectively, N is the demagnetization factor, B the intensity of the magnetic field, and r the distance from the face of the magnetic pole. The permeability of a specific magnetite ore can generally be considered as a constant. For ground, liberated material N can also be treated as a constant, and the first simplification can be made by writing ur-1 1=k1. 1 + N(ur - 1) uD k1. Fig. 1 shows the field intensity curves for two U-magnets of different size, but of roughly similar geometry of cross-section as plotted against the distance from the plane of the pole faces. The curves

Jan 1, 1961

By P González, E Córdova, E Faundez

An integrated mine system must be capable of displaying and reporting valuable information that can be used to easily understand, manage and take action on the key parameters being reported.One of the key aspects of integration is the standardisation of the mine information up to a level capable of adapting the main characteristics of past projects at the mine and enforcing the same or higher standards for newer projects being developed.At the El Teniente mine, photogrammetry is used to map the advance of horizontal developments, and the constructed 3D representation of each face is then used by the geologists to obtain structural information about the areas being photographed.The mine realised that valuable mining information could also be extracted from the photogrammetry being applied, with three possible areas of development envisioned.The first area was creating a link between the developments being planned on a yearly and monthly basis and matching them with plan sections of the 3D developments of the system to account for any deviations.The second area was to use vertical sections of the 3D developments to estimate the overbreak of the excavations in different areas of the mine.The third area was the provision of a more detailed analysis of the sections so that they could provide information on the thickness of the shotcrete being applied.This paper presents the different alternatives being used and examines how the project is currently being developed and managed at the mine. It also looks at the challenges associated with implementing the reporting platform and the results being obtained.CITATION:Córdova, E, Benado, D, González, P and Faundez, E, 2016. Mine planning information from photogrammetry sources at the El Teniente Mine, in Proceedings Seventh International Conference and Exhibition on Mass Mining (MassMin 2016), pp 653–658 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 9, 2016