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By A. J. MacKellar

The economic viability of any project is generally assessed on an evaluation of the total capital constructed costs along with operating costs, owner's costs and market conditions. This paper will be directed to the role that Cost Engineering plays in the development of the capital costs and the cost control techniques applied thereto.

Jan 1, 1975

By O. Schumacher

Guidelines for publication of information defining the amount and grade of resource material available in a deposit are well established in Australasia?s JORC Guidelines, Canada?s National Instrument 43-101 and similar documents in South Africa, Peru, Chile and elsewhere (Table 1). These guidelines provide standards to apply regarding the geologic and geostatistical basis for describing the level of confidence to be assumed for an estimate of the amount and grade of material. All of them provide for a strict distinction between material that has been demonstrated to be economically mineable and that which has not, and all of them provide terms such as ?resource? or ?exploration information? to be applied to data regarding material that has not been demonstrated to be economically mineable. It is not until an economic study has been completed that we are allowed to apply the powerful terms ?reserves? and ?ore? to our deposit material. Indeed, the application of these eye-catching labels immediately tells the reader that an economic study has been completed by a qualified person, and that the results of the study were positive. While extensive guidelines are established for describing the level of confidence in published geologic data, and the nature of the economic study that should be accomplished before using the terms ?reserves? or ?ore?, surprisingly little guidance is provided regarding the process to use, and the level of detail to attain, for estimating capital and operating costs for the study. The intent of this paper is to lay the groundwork for development of suitable guidelines for the cost estimating process. While the codes do not provide specific instructions for the cost estimate, they do provide numerous hints and clues to help determine the level of detail expected and the type of procedure to apply in preparing the estimate. This paper will first review the various codes to gain an insight into the thinking of the drafters of the codes regarding their unstated expectations for the cost estimating process. Based on this review, a series of guidelines are proposed for this purpose.

Feb 27, 2013

By B King

Processing expansion options and mining fleet purchases are major cost items that receive due focus in most cost management analyses. If these items are not needed, they can significantly reduce a project’s short-term capital spend and improve profitability and value to shareholders. When conditions change prior to purchasing equipment, the purchase may no longer represent the best decision for the project.This paper outlines a structured approach for making major cost decisions to improve the value of a project, determining which items should be kept and which should be eliminated.CITATION:King, B, 2014. Cost management optimisation, in Proceedings Orebody Modelling and Strategic Mine Planning Symposium 2014 , pp 7–12 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 24, 2014

By V. O. Tenorio, A. M. Sanzana

"INTRODUCTION This report summarizes a research about mines which are transitioning from surface to underground mines. It is a guide to make strategic decision in these increasing amount of mines. Capital and operating costs are linked with major strategic decisions in the exploitation of an ore body. This is the reason to analyze costs related to this transitioning world trend. There are multiple reasons for transitioning from Open-Pit (OP) to Underground (UG) mining. The primary economic incentive for going UG is that the cost per unit of ore from OP mining eventually exceeds that from UG extraction. This is due to the excessive amount of waste that must be extracted when the depth of the pit increases. In addition, the reduced footprint of UG operations contributes to diminish the environmental impact on the surface. Furthermore, it becomes more difficult to find new, easily accessible ore deposits. Then, a cost model helps to guide strategic decisions in the transition from OP-to-UG mines. Objectives • Propose a methodology to guide strategic decisions in the transition from OP to UG mining. • Create an integrated cost model based on existing OP and UG individual cases. • Identify and characterize a group of mines transitioning from OP to UG. • Analyze operating and capital costs of a particular transitioning from OP to UG mine. MAIN CONCEPTS Open Pit Mining (OP) The main decisions in OP mines are: Cut-off grade, Stripping Ratio (SR), equipment size, stockpiling, pushback sequencing and processing capacity. The stripping ratio is measured as the tonnage of waste required to be removed to reach and extract one tonne of ore. The material extracted from an OP exploitation can be classified as waste and ore. This classification depends on the cut-off grade. The cut-off grade indicates the minimum amount of material with economic value in a block. The waste from the mine is going to the waste dump and the ore is going to stockpiles where will be store and then going to the processing plant (leaching or concentrator). The waste of this process is going to the tailing pond big pools. And the product is sell in the market. Another important issue is the mining capacity which is going to define the investment in mining equipment. Underground Mining (UG) The first decision to be made in order to open an underground mine is selecting the mining method. Caving methods are the more productive and have lower operating costs. There are three caving methods: Block Caving (BC), Panel Caving (BC) and Sublevel Caving (BC). The access development could be an horizontal adit or a straight or downspiral decline. A shaft could be used for inclined or vertical access. Other key issues are: equipment capacity, cut-off grade and production sequencing."

Jan 1, 2016

The Leigh Creek Coalfield is owned and operated by the Electricity Trust of South Australia to supply fuel to the Northern Power Station. To supply electricity at lowest cost, a costing and decision process that establishes the role of the Leigh Creek Coalfield in the overall system planning and operation is required. The costing is integrated in that it is based not just on a particular mine plan but on the wider need to supply a particular electrical demand. The detail costing has evolved over time from manual to main-frame computer to microcomputer techniques. Now there is a choice between fast consistent costs and a slower but more detailed and flexible costing.

Jan 1, 1990

By M. Z. Emad, S. Raza, K. Jalil, M. A. Raza, M. U. Khan, S. A. Saki

Dimension stone mining is Increasing because of growing demand from the building and construction industries. Diamond wire saw cutting is a popular dimension stone mining technique around the world. Estimation of the production cost for this method is critical for these operations. n this research a production cost model was developed for the mining of granite using a diamond wire saw. Cost and production data were collected from a granitic dolerite operation in Pakistan for a 4.5-year period, and analysed to identify the cost components. Fuel (34%), labour (15%), consumables (40%), and maintenance (5%) were found to be the four major cost components in this operation. A regression-based dimension stone production cost model incorporating statistically significant variables was developed. The data presented a strong correlation of production cost with fuel, labour, and consumables costs. Finally, a production cost model based on the consumption cost of diamond wire is presented. The model was verified using actual production cost data, which indicated 95% (R2 = 0.95) variance in the data between the predicted and actual production cost values. The model may help field engineers in computing their dimension stone operational cost during the cutting phase.

Nov 6, 2023

By S. A., Taylor

IT is very difficult to arrive at exact figures for the cost of maintaining excess capacity of coal mines, but we can approximate the various items. To do this, I will take the Pittsburgh district of Pennsylvania and the other districts can be compared to this one. I believe we can take the depreciation item of plant ac- count as a whole and discount it over a period of 20 years; while this is high for some items it is low for others and I believe it is not far from a safe basis. This equals 5 per cent per year, and this depreciation will take place about as rapidly when not in use as when in operation. A fair value in the Pittsburgh district to- day for plant and houses is close to $4 per ton per annum. At 5 per cent this will equal 20 cents per ton per year. The item of keeping the mine in condition, free from water, etc., will be close to an average of 2y2 cents per ton per annum.

Jan 1, 1928

By Paul M. Tyler

Mineral raw materials, because they are essential to our industrial prosperity and military strength, must be made available in substantial quantities. regardless of cost. Variations in the cost of procuring minerals, as compared with the cost of obtaining other commodities, and changes in the cost of production of different minerals relative to one another, will naturally influence the quantities of a given mineral item that can be marketed readily. However, in the last analysis, the cost of winning minerals from the ground usually constitutes only a small fraction of the value of the end-use products and services derived from them. The miner's share of the cost of a typewriter, telephone circuit, or even a modem office building, is almost insignificant. Far more important to the ultimate consumer, therefore, than any minor saving in cost is the assurance of ample supplies of the minerals needed to aliment our expanding economy. To create a successful metal mining operation involves ( 1 ) the discovery and systematic development of a mineral deposit, (2) extraction of the ore, (3) the mechanical and metallurgical processing to eliminate worth- less or harmful impurities, and (4) the profitable disposal of the product. The first step of the technological process belongs chiefly in the realm of the geologist, the second is a mining engineer's job, the third is mainly up to the millmen and extractive metallurgists; whereas the fourth and equally important step poses a commercial problem that has aspects in common with the marketing of other products. Ore finding is far from being an exact science. There is no mathematical criterion for evaluating the efficiency of prospecting and exploration. Lady Luck shares the honors or assumes part of the blame along with the prospector and geologist. Marketing like- wise involves factors that seemingly defy engineering analysis. Although the other steps can be measured with some degree of mathematical accuracy, even they tend to vary so widely in basic principle, as well as in

Jan 1, 1959

By L. B. Rothfeld

This paper presents preliminary results of a Bureau of Mines study of potential costs of compliance with the federal Resource Conservation and Recovery Act for copper heap and dump leaching. Specifically, estimates are given for the cost of compliance with possible technology standards that would require the use of liners and closure caps regardless of terrain and underlying geology and hydrology. This cost is compared to the co lit of compliance with present state requirements for terrain a typical of those found at existing copper leach sites in the Southwestern U.S.A. Incremental compliance costs are found to widely exceed screening criteria used by the Environmental Protection Agency to denote significant economic impact.

Jan 1, 1993

By L. B. Rothfeld

In anticipation of RCRA reauthorization and subsequent rulemakings, the Bureau of Mines is studying potential economic impacts of RCRA on mining. For U.S. copper heap and dump leaching operations in a variety of terrains, the cost of liners and closure caps to comply with RCRA Subtitle D ranges from $55 million to $158 million per site, or about $500,000 per hectare ($200,000 per acre). If RCRA technology requirements and financial assurance had been required on current operations, 27 to 100% of production from heap and dump leaching would have been non-competitive at market prices between $2,310 and $1,650 per metric ton ($1.047 and $0.75 per pound) copper. This result is based on an analysis that considers return on capital, corporate overhead, marketing, and freight costs as well as operating and maintenance costs at the mine. Over the same price range, economic analysis using the IMPLAN input-output model on one-or two-county regions indicates potential net job losses of about 570 to 2,700 jobs. Total economic output of those counties could be reduced by about $180 million to $360 million.

Jan 1, 1994

The mining industry is generally regarded as a high risk industry, mainly because of the difficulties in estimating the tonnage and grade of mineral resources, the fluctuations in metal prices, mining problems and other problems which occur with mining in offshore and remote locations, such as appropriation or disruption to supply. As a consequence, finance providers require a high reward from mining projects. In the past two decades, the development of "mega" projects has led to the packaging of the finance becoming more sophisticated. Some would see this move as a measure of the evolution of banking rather than an intrinsic facet of mining finance itself. Project financial managers now require a thorough knowledge of all the financial tools which are available and have to be aware of the funding options so that they can put together a finance package which minimises the cost of the financing with the risk spread adequately between the partners of the financing. The different sources and types of finance for mining projects are described herein along with the factors which determine their costs. To understand the ramifications of financing mining projects, it is essential to appreciate the fundamental difference between debt and equity, which illustrates the importance of gearing. Costs of finance are determined by the interaction of supply and demand forces. Bankers and other financiers have become more adept at isolating a wide selection of risk elements and have devised a formidable range of insurance mechanisms. There is still a lot of money looking for good project risks and if a good project is properly presented and structured, financing can be obtained in today's market.

Jan 1, 1990

By Jr. Lownie

Estimates of the cost of producing any commodity generally fall into several classes depending upon the motives and needs of the estimator. There are estimates intended to show how low costs might be with favorable conditions if everything goes well. At the other extreme, there are estimates which show how high costs might be if troubles develop. The estimates in this paper for the cost of producing direct reduced iron (DRI) are accompanied by discussion to point out how the final figures may be adjusted in either a promotional or a conservative direction. Because we do not have a specific process and a particular set of conditions in mind when discussing this subject today, this paper deals with the general situation, with considerable attention to how the estimates can be made more specific once one knows the particulars of a given situation.

Jan 1, 1978

By Lebeau M., P. Duguay

"The cost of occupational injuries and diseases in the mining industry in Quebec was estimated for the period of 2010 to 2012. The method used takes into account the financial and human costs assumed by employers, workers, and the community. To better direct research and prevention toward issues with the most significant consequences, the results are presented in various ranking tables, which stakeholders might find useful.RÉSUMÉ Le coût des accidents du travail et des maladies professionnelles dans l’industrie minière au Québec a été estimé pour la période 2010-2012. La méthode utilisée prend en compte les coûts financiers et humains endossés par les employeurs, les travailleurs et la communauté. Afin de mieux orienter les recherches et la prévention vers les problèmes ayant les plus graves conséquences, les résultats sont présentés dans divers tableaux de classement, qui seront d’une grande utilité aux parties prenantes. INTRODUCTIONThe mining industry is much safer today than it was 30 or 40 years ago, mainly due to a more qualified workforce, the use of automated equipment, and a corporate culture more focused on occupational health and safety (OHS); however, the number and the severity of occupational injuries and diseases continue to make this industry one of the most hazardous. In the province of Quebec, the mining industry accounts for approximately 0.4% of paid workers but is the source of 4% of fatal work accidents. It is, therefore, important to continue the prevention efforts already underway in the mining industry.The difficult global economy, which has affected the mining industry in the last few years, is an opportunity to reaffirm that sound management of OHS can have a positive impact on companies’ productivity and profitability. Occupational injuries and diseases are costly for the companies concerned and for society as a whole. Reducing their occurrence makes it possible to reduce not only the size of workers’ compensation board contributions but also several other financial and human costs."

Jan 1, 2018

By Robert B. Scott

Acid mine drainage, discharging from coal beds, has polluted our streams and rivers since early time. These pollutants affect water quality by lowering the pH, reducing natural alkalinity, increasing total hardness, and adding undesirable amounts of iron, manganese, aluminum and sulfates, The tangible damages are the costs involved in replacing equipment corroded by the acid water, additional treatment costs at municipal and industrial water treatment plants, and damages resulting from corrosion of steel culverts, bridge piers, locks, boat hulls, steel barges, pumps, and condensers. Intangible damages, which are real and important, include destruction of biological life of the stream, reduced property values, and streams rendered undesirable for recreational uses.1 The major problems of mine drainage occur in the anthracite and bituminous coal regions in Appalachia. However, many of the western mining states have significant mine drainage problems in specific areas, but the overall problem is not as great as in the eastern states.

Jan 1, 1970

By Taner Sumer, H Altay Guvenir

Fragmentation in rock quarries is tried to be achieved by changing the specific charge, drill pattern and bore hole diameters by different experts. This paper is a brief summary consisting of the utilization of practical experiences of the other group on cost optimization procedure that takes into account blasting, transportation and crushing as a whole process and optimize the cost by defining the optimum gelatin based explosives to be used as a main primer of anfo in three different limestone and granite quarries, with similar rock characteristics.

Jan 1, 1993

By John Popovich

The MICON RokLok binder system including component and consolidation processes and safety and its first aide are described. The implementation procedures and selection of injection parameters are discussed. Finally a case example of recovering a 30-ft. long roof fall in mainline haulage entry is used to illustrate the economic potential of preventive measures by RokLok injection.

Jan 1, 2001

By Anderson Pereira

SORM 3plus (SORM = Superfast Optical Roughness Measurement) is a system enabling online measurement of roughness parameters during continuous strip processing. Increased requirements for new materials and more complex components call for ever increasing process safety. The roughness parameters are important quality features of uncoated and surface refined strips. The traditional method of measurement involves using a mechanical stylus based instrument. For this purpose the operator must stop the production line or samples are taken from the end of the coil and measurements are made offline in the lab. SORM 3plus, however, is a non-contact, online surface roughness measurement system that can be used for metallic and many non-metallic surfaces at strip speeds of up to 2400 m/min. The surface roughness data are stored in the system computer, displayed to the operator and if needed are fed into a higher-level network. The operator is alerted, if the limited values preset by him are exceeded or if any changes within the line will put at risk the production process. SORM 3plus calculates the roughness parameters as defined in the standards, such as the arithmetic average roughness (Ra) and the peak count (RPc).

Oct 8, 2019

By A. Anani

The goal of hot mix asphalt (HMA) design is optimal material blending to meet Superpave specifications. HMA cost minimization has being modeled as linear programing (LP) (Awuah-Offei et al 2011) and mixed integer LP problems (Brown et al, 2012) and solved with commercial software such as LINDO and CPLEX. Often these software, which are designed to solve general optimization problems, have licenses that cost thousands of dollars. The objective of this study is to develop a novel solution algorithm to the HMA optimization problem presented by Brown et al. (2012), which will negate the need for expensive commercial packages and is specific to this problem. This novel algorithm is based on the branch and bound algorithm for solving mixed integer problems. The algorithm is incorporated into a software package with an easy-to-use graphical user interface. The developed algorithm is validated using a real-life HMA problem. Using this solution algorithm will save companies thousands of dollars, otherwise used to purchase software licenses.

Feb 23, 2014

By Dennis A. Clark, Brent Larsson

Tunnelling today is a lot more than drilling and blasting. The developments in drilling and blasting technique have made it pos¬sible to save costs both by increasing the advance per round and optimizing the demands on the final contour. Increasing the hole depth by using longer feeds and bigger dril¬ling rigs make the drilling time shorter compared to the set up time. It is important that the deeper holes are followed up by using a suitable cut. The most common cut in Sweden today is a parallel hole cut with one or more large holes; with a diameter corresponding to the hole depth and wanted advance per round. It is often specified that smooth blasting is to be carried out with a specific drill hole spacing. It is extremely rare, however, for specifications to be issued concerning the alignment of the raw of holes closest to the contour holes. It is very easy to ruin the effect of smooth blasting altogether by firing the rest of the round carelessly with an excessively high charge distribution. The drilling and blasting of the contour holes and the line of holes closest to the contour holes is therefore an extremely important part of any underground work. Accuracy and care in connection with the drilling of contour holes is also extremely important since it is possible to reduce the amount of overbreak, the result being more rapid mucking out, smoother and more durable surfaces and also less consumption of concrete for lining purposes.

Jan 1, 1983

By Gavin A. Hunt

In order for mines to operate profitably throughout their life it is important to monitor and maximise ore recovery. A common problem facing many mines is the underestimation of clay type and its distribution in ore at the mine face, blast hole or in the ore stockpile. Too much clay entering the heap leach ore stream for example causes a dramatic reduction in heap leach efficacy and or increased leaching times. The end result is poor leaching performance and much reduced metal production. Poor clay identification and quantification is attributable to many factors, including costly and slow off-site mineral analysis techniques, such as XRD, XRF and petrology, the visual and subjective limitations of the core logging geologist and a lack of suitable low cost, high throughput mineral logging instruments. To get round these problems a new, non-contact, imaging spectrometer - the SpecCam - was developed by Spectra-Map Ltd, to allow high throughput identification and quantification of minerals from mineable material. Its novel imaging design can collect millions of data points (pixels) per day; each pixel contains spectral information that allows a wide variety of mineral types, including the smectite and illite clays, and phyllosilicates such as talc and kaolin, to be identified. Because all the ore can be imaged a much more reliable mineral log can be made. Hence, mapping changes in mineral composition - related to variations in phenocrysts, macrocrysts, veining or wall rock - is possible. Examples of SpecCam data from Goldfields Cerro Corona Porphyry stockpile and from Rio Tinto?s Argyle Diamond mine illustrate the mineral identification and quantification capabilities of the SpecCam. More importantly, for the first time very accurate % abundances for the different minerals can be obtained using an image-based modal count technique. The modular design of the camera, plus its extremely flexible high speed filter, mean that the SpecCam can be easily installed on different equipment, each one suited to different ore recovery problems. For example the SpecCam can be used on an automated portable logging frame to measure drill core, RC chips, hand samples or powder, or alternatively installed on a Geotek multi-sensor core logger for high-throughput, automated logging of drill or blast hole core using co-registered multi-sensor data. An exciting recent development has been the installation of the SpecCam on CommoDas ore sorting equipment, used around the world for 24 hour mill-feed monitoring and automatic ore sorting. Real-time ore sorting decisions can be made as material is monitored on a conveyor belt running at 3m s-1, from which the ore can be automatically sorted into high-grade, low-grade or waste streams for example. The three installation options for the SpecCam mean that most mineral analysis and automated core logging or ore monitoring needs can be met at the mine. For the first time rapid and automatic mineral identification and accurate quantification can be made. All of which allow the mine geologist or metallurgist to make important decisions about maximising the metal recovery process.

May 1, 2007