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By J. A. Botín

NPV is a static measure of project value which does not discriminate between levels of internal and external risk in project valuation. Due to current investment project?s characteristics, a much more complex model is needed: one that includes the value of flexibility and the different risk levels associated with variables subject to uncertainty (price, costs, exchange rates, grade and tonnage of the deposits, cut off grade, among many others). Few of these variables present any correlation or can be treated uniformly. In this context, Real Option Valuation (ROV) arose more than a decade ago, as a mainly theoretical model with the potential for simultaneous calculation of the risk associated with such variables. This paper reviews the literature regarding the application of Real Options Valuation in mining, noting the prior focus on external risks, and presents a case study where ROV is applied to quantify risk associated to mine planning.

Jan 1, 2012

By R. L. Virta

Twenty-three companies mined kaolin in nine States in 2004. Production was estimated to be 7.6 Mt (8.3 million st) valued at $912 million, based on preliminary data. This was a slight decrease from 7.68 Mt (8.46 million st) valued at $939 million in 2003.Georgia was the leading producer state with an estimated 6.5 Mt (7.1 million st) in production. It was followed, in decreasing order of tonnage, by South Carolina, Alabama, California, Texas, Arkansas, Nevada, Florida and North Carolina. Georgia accounted for nearly the entire domestic water-washed, delaminated, and pigment-grade calcined kaolin production. Consumption Sales to the paper industry accounted for 49 percent of domestic sales and 64 percent of total sales. Other major markets for domestic sales were refractory products (10 percent), paint (5 percent), fiberglass (4 percent), catalysts (3 percent) and rubber (2 percent).Paper coating and filler markets accounted for about 87percent of export sales of kaolin.

Jan 1, 2005

By M. Wiber, P. Nicoll

Rio Algom has embarked on a major programme of expansion with the goal of becoming one of the world’s top-performing base-metal mining and metals distribution companies. To assist the company and its operations in achieving its business objectives, we are implementing an environment, health and safety (EHS) management system, built to be compatible with the 14001 model. We recognize that a sustainable development approach for Rio Algom includes outstanding performance in EHS and community responsibility and is essential to earn acceptance within the communities where we operate or wish to locate; raise capital; obtain permits, and operate efficiently. We are committed to triple bottom line accountability, i.e. full consideration of environmental, social and economic concerns in our business decision making.

Jan 1, 2000

By Jack Parker

Critical width Before we go further into pillar design, we should look into the matter of "critical width," because of its effect on pillar behavior. Critical width refers to the greatest width that the rocks above the mine can span before failure or, if there are pillars, the width to which we must mine before the pillars accept the full weight of the overlying materials. There are theories to help calculate that probable width, and they usually boil down to one-quarter or one-third of the depth of cover; but they don't always fit, and it would be better for us to understand the factors that control local conditions. Critical width may be controlled by the thickness or strength of one or more of the strata above the mining horizon. In a gold mine, we might have a thick granite or basalt above us, perhaps capable of bridging across most or even all of a small ore body. In that case, pillars might have to support nothing, or perhaps just the weaker or damaged rock below the strong main roof. Obviously it would be wrong to design for tributary load on pillars based on some lab-determined rock strength. In some coal mining districts in Utah, huge steps can be seen in the mountain sides, with slopes on weathered shales and vertical cliffs 100 or 200 ft high in thick, hard sandstones. The sandstones are capable of bridging across hundreds of feet, often making mining deceptively easy at first, but it becomes more difficult as greater areas are opened. Sometimes such a mining sequence leads to violent bumps and bursts as the wide spans of sandstone sag and bear down on the working faces, like giant nutcrackers, or as bridges eventually fail, releasing much pent-up energy.

Jan 1, 1993

By Dick T. Atkinson

Due to improvements in the safety of other aspects of mining (primarily in roof control), haulage related accidents, particularly rail haulage accidents, are about to become the most common category of hazards causing death and injuries to underground coal miners. The major causes of these accidents are collisions between vehicles, men caught between rib and trip or between cars, derailments, and runaway cars. Such hazards can be greatly reduced if the motorman has the capability to selectively couple and uncouple cars from the cab of the locomotive, to transmit braking intelligence to the coupled cars, to determine if the trip is intact, and if brakes are automatically applied in any uncoupled car. These capabilities can be provided through an improved coupler system, designed and built by Foster-Miller Associates under a Bureau of Mines contract. Early in the program, a survey of rail haulage patents and literature was conducted. Manufacturers of couplers, mine cars and braking systems were contacted and information relevant to the remote control mine haulage application was collected. From this information evolved a working specification and a design concept. The key elements of the specification, shown in Table I, are the result of a detailed tradeoff study and considerable thought given to the specific problems encountered in the mining environment. A brief explanation of each element is as follows: Automatic Coupling - The couplers operate similarly with most already in underground use - they latch together when a trip is backed into a car intended for coupling. Remote Uncoupling - From the locomotive, the motorman can decide how many cars are to be uncoupled, operate the appropriate controls, and the desired coupler is opened.

Jan 1, 1977

By D. Brady

When deciding to deploy rescue teams underground the decision makers need to be able to determine that there won?t be an explosion whilst the rescue teams are underground. Previously general body concentrations in areas likely to be travelled were compared to explosive limits on a one off basis with no formal process looking at trends or other areas. A new approach is being adopted that takes into account the rate of change of gas concentrations with triggers set to enable a withdrawal of personnel prior to a possible explosion and influences such a barometric pressure changes. This paper explains the rationale behind the changes made and the advantages and implications of adopting such an approach.

Jan 1, 2012

By J. L. Hoover

The goal of the drill bit consumption study was to develop an equation(s) based on various components that affect bit drill wear and use the equation(s) to estimate the consumption of bits during production drilling. Drill bit data from various geographic locations were compiled and used to develop linear regression equations using the Microsoft Excel Software. Multiple drill bit consumption equations were developed and statistical analysis was used to verify the accuracy of those equations. The equations will allow mining companies to more accurately forecast drill bit consumption when evaluating new mine properties. This capability becomes increasingly beneficial to forecasting as the cost of consumables increases.

Jan 1, 2012

By S. Frimpong

Shovel excavation constitutes a significant component of production costs in any surface mining operation. This makes shovel loading an important cost center that needs to be improved to lower production costs. Optimization of tool design will improve energy efficiency in earthmoving operations. However, modeling the soil-tool interaction is a complex process due to the fact that forces for excavating particulate material are functions of many variables. The magnitude of this resisting force depends not only on the type of soil but on the size, shape and orientation of the cutting element. Moreover, part of this complexity is attributed to the fact that the behavior of the material during excavation is not yet well understood. For the past five decades, researchers have mostly used the passive earth pressure theory to study the soil failure patterns around a cutting tool and to develop force prediction models for design optimization with some success. Although the force models developed from the passive pressure theory have been successful to some extent, they can hardly be extended to a general case because of the underlying assumptions and simplification of tool shapes. This paper aims at reviewing some of the existing empirical and analytical methods of cutting and excavation tool modeling with a focus on their merits and limitations. The paper also explores the use of numerical methods, specifically the discrete element method, for dealing with the unresolved aspects of soil dynamics in excavation.

Jan 1, 2011

By Daniel Journeaux

Introduction Daniel Journeaux is President of Janod Incorporated. Janod is a family owned and operated company that has been working in the field of slope stabilization since 1970. Daniel has worked in the rock stabilization industry for 25 years and has been President of Janod since 1992. Daniel has been an invited speaker for the Federal Highways Administration for the Northwest and Southwest divisions, Queens University in Kingston Ontario, The University of Laval, Vulcan Materials Company, CSX annual meeting for the Northeast Division. Daniel has written several articles and has been published in Pit and Quarry, World Tunneling, and American Shotcrete Association magazines. What is Required to Remediate Highwalls There are several techniques available to stabilize highwalls or temporary rock walls to allow for safe mining practices. The following are some of the techniques that can economically be used.

Jan 1, 2005

By S. G. Hardcastle, C. K. Kocsis

Ventilation is an expensive prerequisite for underground mining. Current mining trends, including increasing depth and mechanization and more stringent health regulations would generally dictate that more air volume is required in order to provide good working conditions underground. However, any increase in the mine’s intake airflow can produce a disproportionate increase in power consumption and hence operating costs due to the cubic relationship between the sup-plied air power and the airflow (Power a Flow3). Furthermore, forecasts of significant increase in energy prices and new commitments with regard to reductions of greenhouse gas(GHG) emissions, determined the mining industry to look into developing new concepts, design tools and incorporate the latest mining technologies in order to lower capital and operating costs while meeting commitments regarding GHG emissions. The advances in computing power and modelling software now make it possible to design, model and schedule a mine from opening to closure. A developing trend is to design and plan the mine by means of orebody modelling software, followed by using discrete-event simulation techniques to predict production rates and evaluate various operating scenarios throughout the life of the mine. The authors are currently evaluating how such process simulators could be adapted in order to forecast the need for materials or a specific resource, and one of these would be the mine’s “life-cycle” airflow demand as a function of scheduled production rates and mine operating characteristics. Further to this, based upon the mine’s life-cycle airflow demand schedule, the ventilation system could then be designed using a mine ventilation simulator. This new design approach would integrate in parallel the development of the ventilation system with the current mining conditions, therefore, heading towards “develop-as-you-go” as opposed to developing the system for final requirements with high upfront costs. This new ventilation system design criteria would also incorporate the use of the “ventilation-on-demand” technology, which will further lower development and production costs and implicitly, the mines’ GHG emissions.

Jan 1, 2004

By D. R. Hack

Increased consumption of concrete in the Pacific Northwest has pushed aggregate resource development pressure from urban areas west of the Cascade Range to rural areas east of the Cascades. Some recent development has focused on barge and rail accessible off-reservation Indian allotments that are exempt from state and county regulations. These lands have their own unique set of challenges, especially when Federal and Tribal governments have conflicting goals and attitudes pertaining to resource development. This paper discusses issues of leasing, reclamation, Federal vs. Tribal authority, cultural resources, and the history of allotment.

Jan 1, 2002

By L. A. Weakly, D. A. Weiss, R. B. Crookston

A presentation of experience gained from using mechanical and conventional equipment for excavating shafts, raises, tunnels and other openings in various Colorado oil shale mining properties.

Jan 1, 1983

By J. McMurray

Introduction Uranium was recovered from mining of collapse breccia pipe deposits in the Arizona Strip district in northwestern Arizona (Figure 1) intermittently between 1956 and 1990, with cumulative production having totaled 23.3 million pounds of U3O8 (8960 tU) at an average grade of 0.6% U3O8. Production was suspended in 1990 because of low uranium prices, but the recent resurgence in market price once again makes the breccia pipe deposits potentially attractive exploration and development targets. This paper describes: (1) formation of the pipe structures and their metallogenesis; (2) mining and milling of breccia ore; and (3) potential roadblocks to development of new breccia pipe mines. Breccia Pipe Formation Formation of the breccia pipes began in cave systems formed during development of karst topography in the Mississippian Redwall Limestone. The karst Redwall surface was eventually covered by up to 900 meters of shallow marine to continental sediments ranging in age from Pennsylvanian to Triassic. The pipes were formed by progressive upward stoping caused by groundwater ascending under hydraulic head along near-vertical faults, joints and fractures. The stoping process involved both chemical disaggregation and mechanical failure of roof and wall rock. Upward stoping of successively younger units allowed for upward propagation of a pipe and resulted in a chimney-like column of breccia between the steep walls of the pipe. Syndepositional thickening of sedimentary units of varying ages indicates that pipe formation began as early as early Pennsylvanian time and continued intermittently through Triassic time.

Jan 1, 2007

By Milan Yekich, Emanuele Cauda, Justin Patts, Cody Wolfe

A worker’s personal exposure to respirable dust in occupational environments has traditionally been monitored using established methodologies which entail the collection of an 8-hour representative sample that is sent away for laboratory analysis. While these methods are very accurate, they only provide information on the average exposure during a specific time period, generally a worker’s shift. The availability of relatively inexpensive aerosol sensors can allow researchers and practitioners to generate real-time data with unprecedented spatial and temporal granularity. Low-cost dust monitors (LCDM) were developed and marketed for air pollution monitoring and are mostly being used to help communities understand their local and even hyper-local air quality. Most of these integrated sensing packages cost less than $300 per unit, in contrast to wearable or area dust monitors specifically built for mining applications which have been around for decades but still average around $5,000 each. At the National Institute for Occupational Safety and Health (NIOSH), we are leveraging the power of high-volume data collection from networks of LCDM to establish baseline respirable hazard levels and to monitor for changes on a seasonal basis as well as following any application of control technologies. We have seen the effective use and advantages of monitoring live data before, during, and after events like shift changes, operational changes, ventilation upgrades, adverse weather events, and machine maintenance. However, many factors have prevented a systematic adoption of LCDMs for exposure monitoring: concern for their analytical performance, the complexity of use, and lack of understanding of their value are some factors. This contribution outlines a one-year case study at a mine in Wisconsin USA, covering the installation, maintenance, data visualizations, and collaboration between NIOSH researchers and the industrial hygiene professionals at the mine.

Feb 1, 2024

By Stanley C. Suboleski

1977 was the modern day low point for productivity in the coal industry. At that time, no one could have predicted that the industry was about to enter a productivity rise that would continue unabated through the 1980s. Thirteen years later, the cause of this phenomenon is still not well understood. While many government studies focused on the fall in productivity from 1969 to 1977, none have been undertaken to explain the rise. Some of the likely causes of the gain in productivity during this period will be discussed here. An attempt will also be made to quantify the value of some of the technical innovations that have taken place. The remainder of the gain is assumed to come from non-technical sources. The nature of these sources, although largely non-quantifiable, is also discussed. Since the number of mines that have adopted the technical innovations noted here is largely unknown, the actual contribu¬tion of technological changes to the overall productivity gain can only be estimated.

Jan 1, 1990

By R. Addison, T. Swendseid, R. Kehmeier, D. Larsen, J. Uhrie

"The development of a mining project necessarily progresses through many steps, beginning with the identification of a mineral resource and continuing through project construction. Several classifications of engineering study development are described, including preliminary economic assessment (PEA) or scoping studies, prefeasibility studies (PFS), feasibility studies (FS) and regulatory codes, each with a specific project organizational objective. This paper addresses the PEA, PFS and FS types of reports that are used by companies to evaluate projects, meet regulatory requirements and seek financing. The minimum requirements for engineering studies, focusing on the needs of financial institutions considering investment in a project, are outlined. IntroductionThe financing of mining projects in recent years has come under increased scrutiny by financial institutions owing primarily to an increasing percentage of projects whose capital expenditures had overrun project budgets or had failed to produce the economic returns anticipated during the project development process. Often, unfavorable project outcomes are not the result of widespread failures of the project engineering process but arise from inadequate engineering in limited specific areas of the project scope, such as overestimated mineral reserve, inadequate mine design, insufficient metallurgical testing or underestimated capital costs. Mill facilities and process infrastructure typically are responsible for up to 80 percent of the capital expenditures required by greenfield mining projects. They are often the project areas where capital costs are inadequately developed, and consequently are the areas highly scrutinized by financial institutions. This paper offers a perspective on the level of engineering expected by financial institutions as a prerequisite to committing support to developing mining projects.The evaluation of a mining project from exploration through development and production is a lengthy and complicated process. Mine development commitment activities for a potential project are initiated when a mineral resource is identified and continue through to the start of construction. The technical feasibility and the economic viability of each project are determined during the phases of mine development with more detailed engineering data required at each stage. There are at least four levels of engineering studies during development that are commonly acknowledged by the mining industry:"

Jan 1, 2016

By S. L. Lebo, J. D. Gargulak

Lignin, the second most abundant natural polymer and bi-product of the pulp and paper industry, has been commercially available in a number of forms since 1940. This growing industry is fueled by demand in traditional applications. Reagents that offer unique solutions in various mineral process applications are examples of advanced uses that also fuel growth. These applications include flotation reagents in fluorspar, bastnäsite and potash, as well as in the zinc pressure leach process. Due to the fact that no concerted effort has been made to find applications for modified lignosulfonates, it is quite possible that this natural material will find use in other benefication processes.

Jan 1, 2002

The use of belt air in underground coal mines has been a continuous discussion since it was first introduced in the Federal Coal Mine Health and Safety Act (Coal Act) of 1969. Although the Coal Act prohibits the use of belt air to ventilate active workings, there were two exceptions prior to the 2004 Final Rule. There have been several major studies/rule-proposals by MSHA since 1985 and the most recent of which is the Technical Study Panel (TSP) established by the Mine Improvement and New Emergency Response (MINER) Act of 2006 to study the use of belt air and related issues. This paper reviews the history of belt air use, its associated controver-sies, and more specifically, the 20 recommendations unanimously approved by the TSP.

Jan 1, 2009

By T. Freeman

In the past ten years, the Geotechnical Baseline Report (GBR) has arguably become the key document for tunnel construction. This report not only allocates much of the risk involved with the work, it serves as the basis for bid preparation and is used extensively in resolving disputes during construction. This paper discusses some important issues related to the GBR and presents suggestions for improving these vital reports.

By E. M. Abraham

The establishment and survival of different grass species and cultivars on various phytotechnic treatments at a limestone quarry was studied. The treatments applied were: a) bare soil, b) bentonite, c) bentonite-straw and d) asphalt-straw. According to the results, significant differences were found among species and cultivars, growing on different treatments as far as plant growth and survival are concerned. The seed germination was higher on bentonite -straw and asphaltic-straw than on bentonite but the plants survival were higher on bentonite. Lolium perenne had higher seed germination rate and better establishment than the other tested species at all treatments. However, the survival rate of Agropyron desertorum and of the cultivars palestina and chrysopigi of Dactylis glomerata was higher than of the other species.

Jan 1, 2007