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By S. A. Abdel Sabour

Strategic decisions in the mining industry are made under multiple technical and market uncertainties. Therefore, to reach the best possible decision, based on information available, it is necessary to integrate uncertainty about the input variables and model financial risk of the project?s merit measures. However, this provides few useful insights to decision-makers unless accompanied by modelling management responses to uncertainty resolutions. It is widely acknowledged that conventional decision-support methods based on static, no-change, discounted cash flow (DCF) techniques such as net present value (NPV) and internal rate of return (IRR) tend to provide inaccurate value estimates. This could mislead the strategic decision-making process and result in significant value losses. This paper aims to model financial risk related to uncertainty about market variables such as metal prices and foreign exchange rates. Other sources of risk that are related, for example, to geology and production costs are not considered in this work. The article outlines a flexible financial model that integrates uncertainty about market variables and management flexibility to react to uncertainty resolutions into mine project valuation using a real-options valuation technique based on Monte Carlo simulation. Significance of information generated from this simulation-based flexible valuation model to the strategic decision-making process is tested using an illustrative case study of a Canadian mining project. The project is a typical multi-metal, open pit mine that produces copper and gold. In this case, there are three uncertain market variables, which are: copper and gold prices and US$/CAN$ exchange rate. Financial valuations are carried out using both the conventional static DCF method and a flexible real-options model. In the flexible model, management flexibility to decide whether to go ahead with the next expansion or terminate production operations is integrated. Results show how the flexible financial model can enhance the decision-making process.

Jan 1, 2009

By D. G. Almond

Low-grade, complex mineral deposits have resulted in the need for complicated large-throughput processing plants delivering increased productivity, reliability, and utilization, together with reducing operational costs. Complex mineralogy has resulted in complicated process flow sheets designed to recover minerals as efficiently as possible. In addition, the remote location of many minerals¬-processing plants, continuously rising energy costs, and fierce competition pose significant challenges to the modern mine, compounded by a global scarcity of qualified and experienced operational personnel. Over the last decade the Internet and automation technologies have undergone major advancements. Automation technologies, solutions, and concepts that existed, but were considered risky or unreliable prior to the year 2000, have now gained acceptance and matured. Furthermore, new technologies and different collaboration schemes have appeared, offering innovative solutions to the mining industry to address many of the challenges described. These advancements in reliable remote systems that access technology through the Internet provide significant opportunity to support mining operations, enhance process performance, provide engineering services, and proactively anticipate and execute maintenance services. This paper references a global survey of automation trends in the mining industry and the potential for an intelligent collaborative environment using automation technologies to exploit opportunities in operating the plant of the future, increasing effectiveness, and reducing operational costs. A variety of possibilities are described, including asset management solutions, remote access capabilities, performance monitoring solutions, advanced process control technologies, and the formation of an intelligent collaborative environment. A real example where this technology is used to support the operation and maintenance at a cement plant in Egypt is given to underpin the concepts described in this paper.

Jan 1, 2013

By V. Léveillé

As new legislation drives metallurgical plants to lower SO2 emissions, plant managers face the challenge of keeping their costs under control. The Cansolv® SO2 Scrubbing System has been broadly adopted in the non-ferrous industry as a cost-effective solution for smelter operators to meet the new SO2 emissions targets. The Cansolv® SO2 Scrubbing System is an a mine-based regenerable process that selectively absorbs SO2 from a variety of gases, including dilute smelter gases, such as furnace and converter gases. The system produces a pure, water-saturated SO2 by-product stream, which can then be directed to the front end of a sulphuric acid plant for conversion to sulphuric acid. When deployed in a smelter complex, the Cansolv® SO2 Scrubbing System may also be used to process acid plant tail gas, allowing single absorption sulphuric acid plants to achieve emissions an order of magnitude lower than that of a double absorption acid plant with a lower capital investment. Depending on inlet gas temperature, SO2 emissions in the treated gas can be controlled to as low as 55mg/Nm3. This paper will describe some of the applications where customers have or are planning to use the Cansolv® SO2 Scrubbing System, as well as which features and cost advantages for the treatment of smelter gases were important in the technology choice.

Jan 1, 2009

By M. Yavuz

Determining the most convenient plant location is one of the most commonly encountered problems in engineering applications. This paper presents a fuzzy multiple attribute decision making (FMADM) model which is developed for the selection of the optimum plant location for natural stone factories in the mining industry. The criteria affecting the decision making process in natural stone industry were determined to solve the plant location problem in the FMADM model. To determine the optimum plant location for a new natural stone factory, which is planned to be established by a mining firm located in the Eskisehir region of Turkey, an analysis was carried out by incorporating the method and the analytic hierarchy process (AHP) method. The analysis shows that the Yager?s method can easily be applied to the selection of plant location in the natural stone and mining industry when the difficulties encountered in the application process of the AHP method is taken into account. Keywords: Natural stone, plant location, decision making, Yager?s method, analytic hierarchy process (AHP).

Jan 1, 2008

By Yuandong Qiao, Erdong Li, Chao Lv, Junjian Ye

The gas-based CO reduction of Panzhihua vanadium titanomagnetite concentrate from 1100°C- 1250°C was investigated in this paper. The reduction degree increased with increasing temperature and increasing reduction time. At a temperature of 1250°C and a reduction time of 20 minutes, the metallisation degree reached 92%. The iron-titanium oxide phase transformation during reduction process was Fe2.75Ti0.25O5→Fe2.5Ti0.5O4→FeTiO3→FeTi2O5 according to the X-ray diffraction analysis. The SEM and map scan by energy spectrum of results of reduced samples at different temperatures indicated that the metallic iron particle size increased gradually as the reduction temperature increased. These results can serve as a reference for the reduction of vanadium titanomagnetite by CO. Keywords: Vanadium titanomagnetite concentrate, CO reduction, phase transformation, reaction mechanism

Jan 1, 2020

By J. Hadjigeorgiou, Y. Potvin

In a benchmarking paper published in the SAIMM Journal, Potvin and Hadjigeorgiou (2008) reviewed ground control strategies to manage large deformations in underground hard rock mines. Significant differences were identified in the design and acceptable tolerance between civil and mining engineering practice for squeezing ground conditions. Variations were also noted in ground support strategies between Australian and Canadian mines. In this paper we review progress in design methodology and ground support practice since 2008, including the availability of more effective deformation monitoring, new design tools, greater access to yielding ground support elements, and better installation practices. An improved understanding of technical and practical issues associated with squeezing conditions has led to the development of ground support guidelines for a range of squeezing ground conditions in hard rock mines.

Jul 5, 2023

By P. H. S. W. Kulatilake

The paper introduces a computer simulation technique to estimate the target detection probabilities associated with search surveys. The technique takes into account the inherent randomness associated with the distributional properties of geologic targets. Use of the technique is illustrated through examples. The paper provides information as to how this technique can be used in obtaining the optimum sampling pattern and optimum spacing associated with target detection surveys.

Jan 1, 1987

By F. L. Wilke

The use of operations research techniques and computer models has become entrenched in the mining industry, particularly in the area of mine planning. The paper considers three major areas where increasing efforts are likely to be directed in the future: the integration of multiple disciplines in a single model; the decentralization of computing capacity within a structured network; and the incorporation of sophisticated techniques such as computer aided design and artificial intelligence.

Jan 1, 1987

By G. Ferrara

The mathematical framework of a well-established model proposed earlier by the authors for the screening process is briefly recalled. Some numerical methods for the application of the model, concerning numerical solution of the equations and parameter estimation, are indicated. Some applications of the model to improve screening operations, sizing of screen, simulation of screening and of integrated plant operations are discussed, and the computer software to be used for these purposes is described in detail.

Jan 1, 1987

The special mixing requirements for backfilling are discussed, and the problems associated with the mixing of coarse and deslimed slurries, as well as the tailings from the gold plant are outlined. The mixing of binders which are used to strengthen backfill and the parameters for the scale-up of mixer pilot plant work are also discussed

Jan 1, 1988

Traditionally, the term `total system' design applied to comminution conjures images of a design that addresses the usual business and operational drivers, including health, safety and environment (HSE), capital cost, operating cost, throughput and product size. In terms of the physical process, the mine to customer type studies also exemplifies an approach that satisfies a normal `total systems' approach. As an industry there are drivers that are forcing a re-consideration of what we regard as our total system. This modification of drivers will require changes in approach and implementation to provide the best solutions. Some of the major changes that impact the drivers are shortage of skilled personnel, changing social attitudes to remote mine site work, greenhouse gas emissions (GHGE), quality of available orebodies and geographical location of new mine sites. One approach to the challenges presented by the changing business environment is to expand the system envelope around comminution to ensure that comminution, in its widest sense, helps to meet the new realities. Background to the new drivers and constraints is provided and some of the appropriate responses are examined in relation to the impact on the total system.

Jan 1, 2007

By F. Lombard

We consider in this paper the use of a modified version of Hotelling?s statistic in the analysis of particle size distributions. The statistic can be adversely affected by the presence of outliers among the data. We propose a competitor to the statistic that is based on ranks, and hence is less sensitive to outlier effects. The results of a Monte Carlo study suggest that the rank test is highly competitive with the Hotelling test in its ability to detect differences between two mass size distributions. The calculation of the rank statistic is explained in detail and its application is illustrated on two sets of data.

Jan 1, 2012

By R. G. B. Pickering

The Faculty of Engineering at the University of the Witwatersrand and the Mining Technology Division of the CSIR have co-operated to define the problems associated with deep level mining and in this paper they will identify what they consider to be the critical areas requiring technological solutions. This perspective will then be applied to work currently being carried out by both the organizations and gaps for additional developments will be identified. Finally the Co-operative Research Centre methodology operating in Australia is described. The purpose of this CRC is to provide a vehicle for R&D co-operation to develop and implement technologies which will increase the competitiveness of the mining industry. A further objective is to develop an appropriately skilled human resource base.

Jan 1, 1996

By L. P. Fatti

An important feature affecting the classification of a remotely sensed scene is that the data are, in general, spatially correlated. Various approaches are discussed towards incorporating the correlation between neighbouring pixels when they are classified on the basis of their spectral reflectance data.

Jan 1, 1987

By E. Minnaar, P. J. Cilliers, M. Bellino, L. M. Roux, R. Dye

The classic technique to remove impurities in a cobalt stream is selective precipitation. This is usually followed by re-leaching to produce an advanced electrolyte for cobalt electrowinning. Although this technique ensures an adequate cobalt concentration in the electrowinning circuit, some of the consequences include unwanted losses through the numerous selective precipitation steps resulting in lower recoveries. One plant that currently utilizes selective precipitation is the Luilu Metallurgical Plant (Luilu) in the Democratic Republic of the Congo. This paper evaluates the benefits of using solvent extraction technology as a purification step in the Luilu Process with the aim of further increasing the overall cobalt recovery and to ensure that a suitable cobalt concentration in the advanced electrolyte is achieved. The implementation of a solvent extraction-electrowinning process is found to be beneficial in terms of achieving improved recoveries and cobalt cathode quality, however there are many other factors that impact the success of converting from the classic precipitation process used at Luilu.

Jan 1, 2007

By Y. C. Kim

The estimation of local recoverable reserves using the widely spaced exploration drill hole information in an open-pit mine is probably one of the most difficult tasks in ore reserve estimation. The difficulty of this problem is magnified if the grade distribution is highly skewed, such as in a gold deposit. This paper describes the results of performance comparison of three different kriging techniques in an open-pit gold - silver deposit. The three different kriging techniques compared in their local recoverable reserve estimation capabilities are: (1) lognormal kriging, (2) indicator kriging, and (3) probability kriging. For performance comparison, the predictions are compared with the actual recoverable reserves determined from blast hole information. Based on the results from one test bench, both indicator and probability kriging performed better than lognormal kriging, perhaps owing to samples not being truly lognormal. Between indicator and probability kriging, probability kriging results were definitely superior to indicator kriging results.

Jan 1, 1987

By R. L. Robinson

An analytical framework is formulated to assist mining companies in assessing the relative merits of mineral exploration and acquisition strategies. The anticipated costs, risks, and returns of each strategy are conceptualised using decision trees. Economic criteria - expected net present value, expected return per unit of investment, and the probability of success - for each strategy are derived(from the appropriate decision tree network. Application of the analytical framework is illustrated using the example of a medium-size company in the Canadian base metal sector.

Jan 1, 1987

This paper presents the development of a regrind facility design at BHP Billiton's Leinster Nickel Operations (LNO) in Western Australia. The recovery opportunity was identified from an analysis of plant operating data together with scanning electron microscope (SEM) measurements on relevant tailings streams from LNO. A laboratory procedure was developed to determine the potential recovery improvement of installing a regrind facility at LNO. The last step in formulating the process flow sheet and defining the process design criteria was to construct and operate a pilot plant, which incorporated four banks of flotation cells and an Xstrata M20 Isa Mill. Pilot plant on/off trials were used to define the expected metallurgical benefit. A prefeasibility engineering design and cost estimate was completed. Following a successful internal business evaluation, a feasibility study is currently underway.

Jan 1, 2007

By M. Gershon

During the exploration phase of mine development, drilling location is in the hands of the geologist, and drilling is spread over the entire domain of the property or deposit boundary. During the mine planning and production phases, however, the mining engineer also needs to use the information obtained from the drilling program. Thus it is important that he/she have some input into the selection of the drillhole locations. Usually, when exploitation will center on one portion of the property for the immediate future, the mine engineer will want to have more of the drilling performed in this area. In the early stages, the purpose of the drilling was to make a decision concerning whether or not to develop a mine. Once the decision is made to proceed with this development, the mine engineer needs to know, with as much confidence as possible, the estimate of the ore grade at each location where mining will occur. This paper addresses the problem of drillhole location for the needs of the mining engineer. The goal is to compare a variety of approaches to drillhole location with a new approach developed by the author. This approach is based on the theory of geostatistics, with the estimation variance used as the quantitative measure of the confidence attained. The goal of the algorithm is to select those locations that minimize the estimation variance subject to constraints on the number of drillholes and the total cost of the drilling program. The kriging equations are used as another set of constraints. The resulting nonlinear optimization model is expressed in terms of binary (0 - 1) decision variables leading to a solution by the branch-and-bound procedure. The algorithm has been applied at a number of operating properties, and practical results and suggestions for implementation are provided.

Jan 1, 1987

By P. R. Mothemela

The objective of the investigation is to optimize the truck and shovel operations for pre-stripping at New Vaal Colliery by introducing campaign mining. The aim of campaign mining is to improve the efficiency of the loading, hauling, dumping, and maintenance operations which are critical to the success of truck and shovel operations. The current loading (single-sided loading method), hauling, and dumping operations at New Vaal Colliery were found to be inefficient. Time studies were used as a major indicator to highlight the inefficiency of the truck and shovel operations, and it is recommended that an improved loading configuration, hauling, and dumping operations be implemented by using campaign mining. It is also recommended that a service truck be used to maintain the pre-stripping fleet in order to reduce travelling times to the main workshop. As expected, the improved operating conditions will lead to an increase in pre-stripping production.

Jan 1, 2013