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By A. G. Yapo, T. W. Camm

"Mining plays a key role in the development of modern civilization as a source of essential raw materials and provider of essential fuels, producer of jobs and a factor in support of the international balance of monetary payment (Camm, 2014). Professionals in mining locate, develop, design and manage ore deposits in an environmentally safe and profitable manner. As mineral deposits become increasingly scarce, new challenges face the industry. A current trend is to an increased emphasis on underground mining techniques for deeper deposits. Operations are safer now than before as companies understand better their work environment and the importance of mining responsibly.A continual challenge for the industry is accurately reflecting the costs and selling price of ore. An enduring characteristic of mining is the situation where the market typically determines the price of a commodity; the main control a company has on the bottom line is to control the cost of production.An attempt to bring light and clarity to the cost of their business will give a better idea to investors on the true profitability of the mining business. Gold producers face this struggle to accurately reflect the cost of production while also seeking to attract the interest of the investment community (Hill, 2013). In order to have a consistent format to report on their production costs, leading gold producers, through their alliance inside the World Gold Council (WGC), worked on the adoption of a new cost framework: the all-in sustaining cost (AISC) and all-in cost (AIC).Since 1996, the traditional cash cost reporting has focused only on the mining and processing costs incurred in mining an ounce of gold, which included the costs of goods sold (labor, energy, and consumables costs) and royalties (Table 1). But cash cost reporting ignores many important aspects, like sustaining capital, general and administrative expenses and site rehabilitation at the end of the mine life (Whelan, 2013). The cash cost was used to attract many investors into the business. In fact, the high gross margin (sales minus cash costs) has been promoted in past decades by the industry instead of the net or operating margin. As a result, even when the gold price was high, nearly $61/g ($1,900/oz) in August 2011, gold producers were not reporting excessive profits in their cash flow/income statements, to the disappointment and incomprehension of investors (Milstead, 2014). The truth was simply that the other costs omitted in the traditional cash cost were reducing the apparent profits.The disconnect led to a need for more accurate cost reporting in order to win back investor confidence and provide better understanding of gold mining economics. In 2012, the senior gold mining companies, including Gold Fields, Barrick Gold Corp. and Newmont Mining Corp., worked with the WGC to develop a new measure. This resulted in the June 2013 publication of the new framework AISC and AIC, which has been widely embraced by the sector since Jan. 1, 2014 (WGC, 2013).The adoption of the new cost template would have the dilemma of showing the real profitability of gold mine properties, which might alleviate taxes from governments and legislators, but it might also scare off investors toward more lucrative industries if not winning back their confidence."

Jan 9, 2017

By E. Watkins, V. Gangrade

Large-opening stone mines often rely on natural ventilation and a network of auxiliary fans to produce adequate ventilation conditions in the mine instead of main mine fans, which are commonly utilized in coal mines. Large air volumes in underground stone mines, poor ventilation practices, and low operating budgets for mine ventilation potentially increase mine workers’ risk for dust, silica, and diesel particulate matter (DPM) emissions exposure. To help improve mine ventilation practices, the optimal auxiliary fan location for maximum airflow production from a ventilated intersection was determined using a combination of field measurements and computational fluid dynamics (CFD) modeling. In this study, conducted by researchers at the National Institute for Occupational Safety and Health (NIOSH), airflow quantity and fan data were collected at a partner mine to be applied as CFD model input parameters and comparison data for model validation. A six-foot diameter auxiliary propeller fan was introduced into the validated CFD model at three locations at a mine entry intersection with established ventilation flow perpendicular to the fan direction. Placing the fan on the opposite side of the intersection from the target active face area produced the highest ventilation flow rates at the downstream locations tested and produced the lowest amount of air re-circulation. The findings show that optimizing the placement of an auxiliary fan may increase the net effective ventilation flow rate by 70,000 cfm and reduce recirculation by 26%, which maximizes the potential effectiveness of large-opening stone mine ventilation systems and decreases mine worker exposures to airborne contaminants.

Mar 2, 2022

By M. T. Webster

Views about the proper aim of public policy are, of course, matters of perspective and debate. Regardless of perspective, one would assume some consensus around the view that public policy ought to encourage mine operators to seek independent and critical assessments of worker safety and health at their operations through voluntary auditing. However, a review of the law on this topic shows that there is little to no manifestation of such a policy. Indeed, the balance of this paper, with a couple of exceptions, is devoted to the existing legal pitfalls that should be considered before a safety and health audit is conducted at a mine. While attorneys, particularly litigators like the author, might tend to focus on the potential problems that could arise from any given situation, the fact that most of this paper is devoted to potential legal concerns associated with auditing is a realistic reflection of the current state of the law. Specifically, this paper addresses the interplay between voluntary safety and health audits conducted at mines regulated by the Mine Safety and Health Administration (MSHA), and the administrative and civil legal issues related to such audits. The paper first provides an explanation of how and by whom an audit is conducted. The paper also addresses whether voluntary safety and health audits may be considered privileged and kept confidential in administrative and civil proceedings. Finally, selected legal issues related to such audits that could arise in administrative and civil litigation are discussed.1

Jan 1, 2012

By T. Hawthorne, H. Barnes

Homestake Mining Company has developed an estimating model, based on other closed projects, to audit and prepare new estimating plans. The results of recent closure audits reveal that the original budgets were often insufficient to cover the present expected expenses. Some of the major areas where technical challenges and costs are increasing include heap leach pile detoxification and rinsing, tailings dam closure, water management and treatment, abatement of contaminated soils, and many others. Risk and sensitivity analysis of each category will develop a level of confidence in the estimate and allow management to focus on the pertinent issues. Periodic audits of closure plans and costs throughout the life of mine serves to focus management attention on the complete costs of production. This will result in improved overall planning and management, and reduce the number of missed opportunities for savings.

Jan 1, 2000

By D. J. Gurtler

On January I, 1988, Chino Mines Company initiated the use of a system of economic splits for all materials encountered in mining. All mined material is evaluated as mill ore, solvent extraction-electrowinning plant feed and non-ore material to determine its disposition. Post-implementation studies indicate that a significant increase in financial returns on material mined was realized when compared with the copper cut-off grade previously in use.

Jan 1, 1990

By J. Villeneuve

Steady-state simulation has proved to be a very useful aid in designing new plants and optimizing existing ones. The algorithms and data definitions of existing simulators often, however, require a great deal of expertise for implementing a simulation-based methodology. The constraints imposed by conventional simulators are explained and the advantages of a new algorithm, the Objective-Driven Simulation, are shown. These advantages are a) an improvement in the simulation results, which enables simplifications of the methodologies used, and b) the possibility of taking into account economic objectives for plant operation, thus extending the range of application of steady-state simulation.

Jan 1, 1992

This paper presents the latest developments in the flotation model being developed collaboratively between the Julius Kruttschnitt Mineral Research Centre in Brisbane, Australia, and the Mineral Processing Research Unit of the University of Cape Town in South Africa as part of the Australian Minerals Industries Research Association (AMIRA) P9 Project. It includes: - characterisation of flotation cells using the bubble surface area flux, Sb; - relationship of Sb to the overall flotation rate constant; - determination of the froth recovery factor; - evaluation of ore floatability; - modelling of entrainment - development of the Floatability Characterisation Test Rig (FCTR); - use of the model in design and optimization of flotation plants; and - current and future work.

Jan 1, 1999

By Kermit Allen

Storing natural gas in solution mined salt cavities appears to be one of the more promising methods being considered by some major gas transmission companies for meeting peak demands. Historically, these companies have been faced with the problem of meeting peak demands when the source of natural gas is located hundreds of miles from the marketing area. Transcontinental Gas Pipe Line Corporation's position was further complicated because some of its offshore Gulf Coast gas supply wells may have to be shut in during hurricane alerts. Transco's solution was to construct. solution mined salt storage caverns adjacent to its pipeline near Eminence, Mississippi. (See Figure 1.) In 1965, Fenix & Scisson, Inc., was engaged by Transco to evaluate the feasibility of storing natural gas in caverns dissolved from salt at selected locations along Transco's pipeline to the East Coast. In June of that year a report was submitted to Transco concluding that this proposal was feasible and recommending several potential sites for storage development. Additional engineering and geological studies followed and in March 1968 the Eminence Salt Dome site was selected and storage construction began that year.

Jan 1, 1971

By V. R. Burkhart

Pennsylvania Power & Light Company is an investor-owned public utility which was incorporated under the laws of the Commonwealth of Pennsylvania on June 4, 1920, with general offices at 901 Hamilton Street, Allentown, Pennsylvania. At the present time PP&L is operating five coal-fired steam electric stations, two hydroelectric stations and one steam heat plant which is being converted from anthracite to oil fired. In addition, PP&L is a partner in both the Keystone and Conemaugh mine mouth bituminous coal-fired steam electric stations in Central Pennsylvania and also part owner of a company which operates another hydroelectric station. PP&L plants, other than the two mine mouth stations, are located in Central Eastern Pennsylvania. (Figure 1) The company derives about 99% of its operating revenues from supplying electric service, while the balance is from the one steam heat plant serving the city of Harrisburg. The entire service area covering 10,000 square miles in 29 counties, has a population of approximately 2,300,000 people. The area served is mostly suburban. It includes 109 communities each having a population in excess of 5,000 people. The largest cities served are Allentown, Bethlehem, Harrisburg, Hazleton, Lancaster, Scranton, Wilkes-Barre, and Williamsport which range from 50,000 - 120,000 in population. So you see our service area does not include any major cities. The area has industrial, commercial, residential, agricultural and recreational activities that are linked with the Eastern Megalopolis by an extensive interstate limited-access highway system and railroad networks. We consider this Central Eastern Pennsylvania area we serve as the "heart of the market" -- an area with great growth potential.

Jan 1, 1973

By A. H. Srnallbone

Over the past few years the rising production costs, shortage of skilled labor, and increased use of lower grade ore bodies have all added justification for the use of on-stream analysis. A rise in the number of on-stream units indicates that this type of assay is now being accepted as a necessity. On-stream analysis is a much more rapid means of obtaining true assays of a flowing product when compared to wet chemistry or "grab" samples dried, briquetted and assayed by x-ray. In contrast, on-stream analysis uses real time samples assayed every 30 seconds while each stream is assayed every 5 to 15 minutes. It is very important not only to know that a change has occurred in the process, but to know what caused the change and how to correct for the change. For example, in a tailing sample the elements of interest comprise between 1% and 10% of the sample. The remainder is water and gangue. Previously the gangue was not assayed nor were the low atomic number elements used for corrections. In addition to the demand for higher accuracies some concentrators were being penalized for excessive Ca or in some cases 5i in their concentrates. This penalty was being imposed by the smelter in order that they could better cope with pollution problems and prolong the life of their furnaces. But until Ca, 5i, and S are measured on-line, nothing can be done about their control. By accurately measuring these light elements on-line, a complete assay is obtained of the total sample providing improved accuracy for the important products. The justification for complete accuracy assays is now even more obvious because they are possible at very 1ittle increased cost and at no increase in analytical time.

Jan 1, 1977

By E. J. Berentsen

The Turquoise Ridge gold deposit is located near the Getchell Mine, 72 km (42 miles)northeast of Winnemucca, NV (Fig. 1). The deposit is owned by Getchell Gold Corp. The host rocks consist of Ordovician and Cambrian age shales and limestones. They have been crosscut by the northeast-trending Turquoise Ridge shear zone and northwest-trending shear zones. Gold mineralization occurs at depths from 427 to 671 m (1,400to 2,200 ft) along the intersection of these structures. Large tonnage, flat-lying deposits occur where folded, favorable beds are intersected by the faults. The carbonate in the beds has been replaced with silica, pyrite and arsenic sulfides.

Jan 1, 1996

By James G. McKelvey

Owners have seen several major tunnel projects in recent years fall victim to a general reduction in the number of bidders as well as an erratic range of pricing. It should be noted though that this is not a universal trend and some projects have seen good competitive bids. Contractual terms and conditions are an important factor in attracting good competition. The Front End documents of tunnel projects have come under increasing scrutiny as tunneling contractors in the U.S. industry are looking much more closely at their risk exposure in the contract terms and conditions. Considering the amount of tunnel construction work upcoming in North America, it is important that General and Special Conditions are put together in a way that provides a reasonable basis to execute the Contract and also provide a fair, balanced and swift way to resolve disputes.

Jan 1, 2008

By I. J. Wu

China’s land area, comparable in size to United States or Canada, contains diverse geological environments and mineral resource potential. The diversity in geological environments is such that the potential for developing many world-class mineral deposits in China is good. However, China’s mining sector was not open to foreign investment until the1990s. The long-term prospect for Chinese resource development is attractive because of China’s enormous population and cumulative demand for minerals. Approximately 33 foreign mineral companies, including 11 major internationals, are to various degrees active in China. Chinese mining laws and regulations pertaining to joint ventures with foreign companies are, from the international investment prospective, evolving slowly, but positively. This positive trend is continuing under the current government reform process, which is moving China towards a freer market economy. Although improving the enforcement of relevant laws and regulations is an ongoing process, the environment for mineral investment and joint ventures is increasingly more accommodating to foreign companies.

Jan 1, 2000

By Y. C. Kim, F. Szidarovszky

G.M. Philip and D.F. Watson The article cited above reflects the difficulty that is often encountered in interpreting different aspects of kriging. Baafi et al. write : "Due to negative kriging weights, negative block grades may be obtained in some extreme situations, which makes no practical sense." Their solution to this particular problem is to constrain the kriged estimates to data values that have positive weights, i.e., reduce the subset size contributing to the estimation. As Journel (1986, p. 133) has already observed, "Negative weights are no evil." Indeed, they are an ineluctable result of the Lagrangian multipliers in the system of simultaneous equations. The fact that data distant from the estimation point may be given negative weights simply means that the influence of such distant values must be negated because their influence is contradictory to closer values (as illustrated by Baafi et al. in their Figs. 3 and 4). Of course negative kriging weights applied to distant grade values will not in themselves induce negative grade at some central interpolation point. Negative grade values, rather, seem to be a particular artifact of automatic methods of estimation involving accu¬mulations (Philip and Watson, 1985a, 1985b, 1987b). The elimination of negative weights, suggested by Baafi et al., is likely to exacerbate a quite different problem of kriging and piecewise spline interpolation discussed elsewhere (Philip and Watson, 1987a). In interpolating large data sets of scattered observations, changing local subsets or neighborhoods must be selected automatically. Because of the mathematical formulation of kriging and spline interpolation, discontinuities then occur between closely-spaced estimation points as the subset used in the estimation changes. If this subset is reduced in number and size, the discontinuities will be amplified and more common. ? References Journel, A.G., 1986, "Geostatistics: models and tools for Earth Sciences," Journal of Mathematical Geology, Vol. 18, No. 1, pp. 119-139. Philip, G.M., and Watson, D.F., 1985a, "Theoretical aspects of grade-tonnage calculations," International Journal of Mining and Geological Engineering, Vol. 3, pp. 149-154. Philip, G.M., and Watson, D.F., 1985b, "A deterministic approach to computing ore reserves. I, Grade Estimation," Earth Resources Foundation, Occas. Paper 2, The University of Sydney, 24 pp. Philip, G.M., and Watson, D.F., 1987a, "Neighborhood discontinuities in bivariate interpolation of scattered observations," Mathematical Geology, Vol. 18, No. 1, pp. 69-74. Philip, G.M., and Watson, D.F., 1987b, "Estimating interactions of topological functions," Mathematical Geology, Vol. 18, (at press). Reply by Y. C. Kim Before replying to the comments by Philip and Watson, it is desirable to establish the original perspective of our paper, which was intended primarily for the practitioners of mining who possess a working knowledge of ordinary kriging. The paper tried to convey the following practical points: (1) there are circumstances in which one observes negative weights, (2) illustration of circumstances under which one can expect negative weights, (3) should one obtain a negative estimated grade, one can resort to elimination of negative weights using the technique outlined in the paper, and (4) one could normally select only the first layer of surrounding assays to estimate the block grade. Under such a perspective, most of the comments by Philip and Watson are irrelevant and misdirected. For example, the practitioners do not find it difficult to "interpret" the results of ordinary kriging, as evidenced by the fact that they have been using the results for nearly a decade. Nor are the practitioners concerned with discontinuities in estimated block grades due to changing neighborhood of assays during kriging. What matters to the practitioners is the fact that kriging does provide the best estimate among all the estimation tools available to them as of today. ?

Jan 2, 1987

By Cyrus W. Field

Metalliferous sediments constitute an important component of the sedimentary veneer that overlies basaltic oceanic crust of the Nazca Plate and elsewhere. Although first collected more than one century ago near the East Pacific Rise during the Challenger Expedition and recognized for their anomalously high content of Fe and Mn, occurring as very fine-grained, yellow-orange, oxides, hydroxides, and oxyhydroxides, it was not until the more detailed studies of Bostrom and Peterson (1966) that their geologic significance and concentrations of other transition metals were fully appreciated. The Nazca Plate is a dynamic lithospheric unit bordered by the Peru-Chile trench and the East Pacific Rise to the east and west, and by the Galapagos Rift and the Chile Rise to the north and south (Fig. 1). Samples employed in this study were taken from piston core recovered from the Nazca Plate (Fig. 2), D. S. D. P. drill core from the northeast Pacific (Dymond and others, 1973), ferromanganese nodules from dredge-haul s at several locations, and from hydrothermal mineral deposits of the Andes. Our efforts have been largely sponsored by the National Science Foundation through its International Decade of Ocean Exploration Pro- gram. The metalliferous fraction of these sediments is widespread, but generally small. Sedimentation is dominated by biogenic silica in the equatorial latitudes, terrigenous debris adjacent to the South American Continent, and by biogenic carbonate elsewhere, except at depths below 3500 m in the central and northwest parts of the Nazca Plate near the East Pacific Rise. Contributions of these distinctive sediment types are shown by the distributions of Si02, A1203, and CaC03 given in Figure 3.

Jan 1, 1982

Although out of the ordinary, MINING ENGINEERING is pleased to present a few photographs that typify Western US mining activity during WWII. The photographs, taken by R.G. Zellers at Colorado mining operations between 1942 and 1946, were primarily intended for equipment manufacturers. The pictures capture scenes of hardworking miners during a time when output was essential to fuel a wartime effort. In addition to providing a rare opportunity to step back 40 years and view the equipment and activity common at the time, Zellers' skill with photo composition and his ability to obtain clarity in dimly lit underground operations gives viewers an acute awareness of the dampness and dirt of the mines, and a sense for the miners' limited working space.

Jan 6, 1983

By Dolf Vos

The balling section of the pelletizing plant at Hoogovens IJmuiden consists of 7 balling drums. Each with an average capacity of 100 tons of green pellets per hour. The balling drums are equipped with rotating scrapers and water-spraying systems. The scrapers are installed in order to restrict the growth of the race to a certain thickness. The spraying system is used to adjust the desired value of the moisture-content of the rewetted ground ore, the pellets and the race. The desired value is the value by which the balling- process is stable, good pellets are formed and surge occurs within certain limits. In October 1980 the construction of one of the balling drums has been modified. The rotating scraper was removed and the inner wall of the drum was supplied with a rubber-lining. In 1982 a second balling drum has been rubber- lined. At the same time the Tyler vibrating screen of this balling circuit has been replaced by a roller(bed)screen. By the end of 1983 all 7 balling circuits will be equipped with rubber-lined drums in combination with roller(bed)screens. The combination of these two modifications will improve the quality and the screen analysis of the green pellets, moreover resulting in savings on energy- and maintenance costs. This paper describes the influence of a rubber- lining on the balling process and the green pellet quality by carrying out in-plant testruns in November/December 1980. The testrun results have been compared with the results of a not modified balling drum.

Jan 1, 1983

By A. Karami

It is well established that an ordered sequencing of charge initiations in a blast pattern is an important design consideration that affects blasting performance. Delay times must be chosen such that damage to the rock mass is controlled. The accuracy of delay detonators is also of major concern. A large scatter could lead to an incorrect blast sequencing that would lead to damage to the rock mass causing increased over-break, degraded fragmentation, increased fly-rock and poor vibration control. In this study, the effect of using accurate delay detonators on the explosive energy generated is investigated. For this purpose, power spectral density of the blast vibration for delayed shots are calculated and compared with the case where holes are shot at the same time (no delay). At the end the results are presented and discussed.

Jan 1, 2000

By David A. Heitman

The Buick Concentrator is a highly automated operation which utilizes a process control system for continuous monitoring and control. The process control system development, installation, and application to the concentrator grinding and flotation circuits are presented in this paper. The design and implementation of analog field sensing instrumentation, a continuous on-stream X-ray analyzer, grinding and classfication circuit controls, and a recent digital process control system utilizing a centralized computer are discussed. Emphasis is placed on the project planning and installation of the digital control system including a presentation of future plans for continuing application of computer control.

Jan 1, 1982

By S. G. Britton

Thin seam mining presents unique challenges when management or economic conditions require significant productivity increases. These challenges are increased depending upon the presence of various external factors such as labor unions, Federal and state regulations, and market characteristics. This paper explores the turn-around situation occurring at Tanoma Mining Company (TMC), a medium-sized underground coal mining company in central Pennsylvania, USA. Using a systematic approach of improving management controls and direction, labor relations, and communications, coupled with an intensive upgrade/rebuild/replacement program for equipment and systems used at the mine, TMC has begun reversing its' cashflow position from negative to positive within two years.

Jan 1, 1991