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By Hu Harries

WE RECENTLY completed a study for a client, who is an applicant to export gas from the Province of Alberta, on the effects of gas export on Alberta's economy. This study was part of the client's application ?before the Conservation Board, and, no doubt, some of you are familiar with it. Submissions by other applicants in earlier hearings before the Board and before the Royal Commission on Energy, as well as claims made by parties opposing export, have also brought forward a number of other opmwns regarding possible economic effects. Ali of these studies have been on a piecemeal basis. They have dealt with particular aspects of particular applications, and only indirectly and by inference with the overall question of gas ex-port. We have prepared this paper to review the overall picture and ex-amine, as far as time permits, all sides of the question. While the paper is entitled Economic Effects of Gas Export on Alberta, we felt that the area considered should in-elude northeastern British Columbia, not only because Westcoast, the first major gas export project, is essentially a northeastern B. C. project, but because this area has historically been, from the point of view of economic, if not of political, geography, part of Alberta. In this paper, when we talk of export, we mean export from the Province or, in this case, from Alberta plus northeastern B. C. Sales to other parts of Canada have exactly the same effect on the economy of this area as l1ave sales to the United States, provided, of course, they are made on equal terms.

Jan 1, 1958

By K. Oraee

Zarshuran gold deposit, with the total reserves of some 12.5 million tons of 4.18 g/ton ore, is considered to be an important gold mining project in the area. In this paper the feasibility studies of the whole project is carried out on the basis of several economic variables. Given that mining data are often of uncertain nature, these economic variables have therefore been estimated under the conditions of uncertainty. The resultant Net Present Value is hence also obtained under the same conditions. For this purpose, a model is first devised with the help of Excel and COMFAR software. The model is then developed that considers different scenarios which would result in different expected values for the economic variables. It is concluded that the NPV of the project is most sensitive to gold and silver price and that other variables such as discount rate, operating and capital cost all affect the feasibility of the project with lower degree of severity. Finally, risk analysis is also carried out using Mont Carlo technique, in order to estimate the most probable value of NPV. The average NPV calculated in this way is US$ 49.7 Million, whilst without due consideration of risk, this would be US$ 36.6 Million. The techniques used, together with the procedures adopted in this paper, can be used in feasibility studies of all mining projects. Such decision would result in more accurate Net Present Values than expected from other frequently used methods.

Jan 1, 2011

By M. Drozd, M. Somppi, Z. Yamak

"Granular activated carbon is widely used in the gold mining industry for gold extraction from aurocyanide-containing slurry. The extraction process can employ carbon as part of the gold recovery operation for various circuit designs including carbon-in-pulp (CIP), carbon-in-column (CIC), and carbon-in-leach (CIL) circuits. However, various qualities of activated carbon exist and the durability of the material can change significantly from source to source. Handling this expensive reagent can pose challenges when fine carbon losses occur in the CIP, CIC, and CIL circuits. Additionally, any gold that is adsorbed to these carbon fines can also be lost by various mechanisms including carbon attrition and fracturing, inefficient coarse-fine separation, and poor carbon fines capture. With the above in mind, a series of tests were conducted to investigate standardizing simple laboratory methods for testing carbon quality. A standard procedure beyond or enhancing ASTM methods can serve as additional starting points for evaluating carbon specific to the gold industry. The investigation focused on size distribution, flatness, wet attrition resistance, surface area, gold kinetics, and gold loading. The final results provided information to generate an equation for ranking carbon samples to plant performance.IntroductionActivated carbon for use in gold extraction is amongst the most commonly found processes in modern gold-milling plants. Although gold losses are inevitable in the milling process, operators often focus on the importance of maximizing gold recovery. One focus area that is important in gold recovery is optimizing the use of activated carbon and examining potential changes to realize improved economics for carbon-in-pulp (CIP), carbon-in-column (CIC), and carbon-in-leach (CIL) processes."

Jan 1, 2017

By M. Drozd, M. Somppi, Z. F. Yamak

"Activated carbon is used to recover gold in solution from various gold circuit designs including carbon-in-pulp (CIP), carbon-in-column (CIC), and carbon-in-leach (CIL) processes; however, the characteristics and durability of the activated carbon can vary. Handling this medium poses challenges when fine carbon losses occur in the CIP, CIC, and CIL circuit discharge. Additionally, adsorbed gold on carbon fines can be lost to the discharge. The studies in this paper aim to standardize laboratory methods for testing activated carbon qualities specific to the gold industry. The investigation focused on size distribution, platelet content, wet attrition resistance, gold kinetics, and gold loading. The results demonstrate that a 96 h attrition test and a gold loading test form a basis for ranking carbon samples based on expected economic performance of the plant. ¦ KEYWORDS Activated carbon, Carbon attrition, Carbon ball-pan hardness, Carbon evaluation, Carbon fines loss, Carbon turnover RÉSUMÉ Le charbon actif sert à récupérer l’or en solution dans diverses conceptions de circuits de broyage d’or, notamment les procédés de charbon en pulpe (CIP, de l’anglais carbon-in-pulp), de charbon en colonnes (CIC, de l’anglais carbon-in-column) et de lixiviation au carbone, ou charbon au lixiviat (CIL, de l’anglais carbon-in-leach). Toutefois, les caractéristiques et la durabilité du charbon actif varient. La manipulation de ce milieu pose des problèmes dès lors que se produisent des pertes de carbone à grain fin dans la décharge des circuits CIP, CIC et CIL. Par ailleurs, l’or adsorbé sur les fines de charbon peut se perdre durant la décharge. Les études réalisées dans le cadre de cet article visent à normaliser les méthodes de laboratoire pour tester les qualités du charbon actif spécifiques au secteur de l’exploitation aurifère. L’étude portait sur la composition granulométrique, la teneur des plaquettes, la résistance au frottement humide, la cinétique de l’or et l’adsorption de l’or, à savoir la capacité du charbon actif à adsorber l’or sur une période spécifique. Les résultats ont montré qu’un test de frottement de 96 heures et un test d’adsorption de l’or constituaient le fondement d’un classement des échantillons de carbone du point de vue économique en vue de trouver l’échantillon générant le meilleur rendement des usines. ¦ MOTS CLÉS charbon actif, dureté de la batée des billes de carbone, évaluation du carbone, perte de fines de charbon, renouvellement du carbone, résistance au carbone INTRODUCTION The use of activated carbon for gold extraction is among the most common processes in modern gold-milling plants. Although gold losses are inevitable in the milling process, operators often focus on reducing gold loss to tailings. One focus area that is important in gold recovery is optimizing the use of activated carbon and examining potential changes to realize improved economics for carbon-in-pulp (CIP), carbon-in-column (CIC), and carbon-in-leach (CIL) processes. Granular activated carbon (Figure 1) is widely used for gold extraction from slurries containing gold-cyanide complexes. This activated carbon—produced from charred coconut shells—is well suited because of its adsorption kinetics, gold-loading capacity, attrition resistance, and ability to be reactivated. The extraction process using activated carbon technology involves adsorbing gold from an aqueous leachate; the gold is dissolved using a cyanide salt and consequently a dicyanoaurate(I) ion (Au(CN)2–) is formed, as noted in equation 1."

Jan 1, 2019

By W J. Cowie

Several years of operating experience of over 100 gold recovery operations on the West Coast has provided a database from which the basic operating costs of these types of operations can be characterised. Using figures generated from the averaging of plant operating costs throughout the region and financial modelling using Lotus spreadsheets has been developed to analyse both existing and proposed developments. This type of modelling has several uses: 1. Identification of the impact on profitability of changes in management practices, finance costs, operating costs and revenue streams. 2. Project evaluation and planning. 3. Profitability projections for development financing. 4. Troubleshooting with existing operations. 5. Valuation of existing operations and properties.

Jan 1, 1987

By Roshan B. Bhappu

Stimulated by current $0.80 to $1.20 per pound price tag of copper, considerable interest and activity have been generated in the copper mining camps throughout the world, and especially in the Southwestern United States and Northern Mexico copper belt. Under these economically favorable conditions, many of the marginal oxide-copper deposits, as well as newly discovered prospects, are under scrutiny for possible exploitation. For both the known deposits and new prospects, the big question facing the mine operator is the selection of the best method for processing these economically attractive oxide-copper deposits. Several variations of the hydrometallurgical processes are currently available for treating oxide-copper ores which can be mined by the open-pit method. Basically, these processes involve preparing the ore for application of an acid solution, applying the solution to the ore, and recovery of the metal from the pregnant solution. Dump leaching, heap leaching, vat leaching, agitation leaching and, in more recent times, in situ leaching or solution mining in combination with well established cementation process or the newly developed solvent extraction-electrowinning system have all been employed or have been investigated for the recovery of copper from oxide ores. Of these processes, dump, heap and vat leaching have been successfully practiced for treating oxide-copper ores. Agitation leaching is a relatively newcomer and has been adopted from the experiences of uranium and gold processing. Finally, the inplace leaching technique is the latest process to be suggested for possible treatment of oxide-copper ores.

Jan 1, 1974

By Felicia F. Peng

An economic analysis for evaluating coal preparation plants in the Appalachian Region is presented. A complete coal preparation plant which includes multi-streams and/or multi-stages coal cleaning circuits, complete closed water circuits, environmentally acceptable refuse disposal and reclamation systems is used to determine the capital and operating costs. The plant is capable of producing metallurgical grade clean coal or deep cleaned steam grade coal for future power generating plants use. Utilizing a profit maximization as a decision criterion, an optimal yield, and optimal coal clean¬ing circuits, closed water circuits, and disposal and reclamation systems for a given coal characteristic may be selected among the process alternatives by using a process simulation-economic model of the coal preparation plant. A deterministic analysis is used to calculate the discounted-cash-flow interest rate of return (DCFIROR) and project the selling prices, and determine the Return on Investment (ROI) for the cases of 32.65% and 52.74% plant utilization with producing two cleaned products. Sensitivity analyses are performed to quantify the effect of total capital investment, operating cost, run-of-mine cost and yield on an economic criterion-ROI and selling prices. A probabilistic evaluation using the Monte Carlo simulation technique is further made to quantify the risk involved in obtaining the desired profit levels. The results of the economic analysis for a given coal preparation plant configuration and characteristics of raw coal indicates that the selling prices of producing two cleaned products are greatly affected by the change in percent of plant utilization (production schedule), yield, and run-of-mine cost, and total capital cost. The sensitivity analysis also shows that the total capital investments has a three times greater effect on required selling prices than operating costs. The risk analysis shown that the overall economics look very attractive with current coal sale prices and 52.74% plant utilization.

Jan 1, 1979

By S. A. Diatchkov

There is a misconception that mineral-project economic evaluations in the former Soviet Union are either nonexistent or very limited. This is not the case. In fact, there are at least two basic methods that can be utilized to evaluate the vast mineral resources of the Commonwealth of Independent States (CIS). Evaluation procedures are based either on a comparison to known projects, which may rely on limited available data, or on potential-profit calculations, which generally uses more extensive databases. Significant philosophical differences between these systems and those utilized in the Western world include the following: •Under the centralized-government system, the economic evaluation of a mineral project was based on artificially determined mineral prices and costs. Every ten to 12 years, prices for concentrates and metals were established by the Council of Ministers and remained unchanged until the next reconsideration of prices .

Jan 1, 1995

By H. Kose

In this research, a model quarry with an annual production capacity of 1 000 000 tonnes has been studied for both pit and hillside quarry cases with constant overall slope angle and variable bench slope angle, considering road grades of 8 per cent and 10 per cent. First, technical requirements have been determined and then the effect of production parameters, such as hole diameter, type of quarrying (pit or hillside) and road grade, on the cost has been investigated to determine bench height. Based on the results, it has been concluded that hole diameter has to be kept large in both pit and hillside quarrying to reduce drilling unit costs. In addition, in order to take advantage of gravity and reduce transportation cost, it has been suggested that bench height and road grade have to be kept high and low respectively in the case of hillside quarrying (downhill transportation) while, in the case of pit quarrying (uphill transportation), bench height and road grade have to be kept low and high respectively, in order to transport the blasted material to a lower height and distance, to save energy, thus decreasing the transport cost. Keywords: Quarry, pit, hillside, road grade, bench height

Jan 1, 2005

Between February and August of 1986, Dr Alfred Petrick visited New Zealand sponsored under a Fulbright grant administered by the New Zealand-United States Educational Foundation. The grant supported a research project completed by Dr Petrick having as an objective, the preparation of a preliminary economic evaluation of the mining of six Otago lignite deposits as a source of energy for steam power generation or in liquid fuels. The research is limited to consideration of preliminary geological and engineering data on the six deposits and to the time constraints of the Fulbright visit. This paper is a summary of the final Fulbright report. The complete report including the listings of the computer programs is available from the Otago School of Mines.

Jan 1, 1986

By Ronald M. Hays

During the twentieth century the Mesabi Range in northeastern Minnesota has been the major source of iron ore for American steel mills. The Mesabi Range extends along an iron bearing outcrop known as the Biwabik formation. This outcrop is some 120 miles long and up to three miles wide. The formation is from 200 to 650 feet thick and dips 5 to 10 degrees to the southeast. The iron content of the original Biwabik formation was quite uniform, but much of this formation has been subjected to alteration. Thus major variations in iron content and mineral composition exist both laterally and vertically in the present Biwabik formation. The remaining unaltered iron formation includes the magnetic taconites which are commercially processed by Reserve Mining, Erie Mining, Eveleth Taconite, National Steel, Butler Taconite, and U.S. Steel. These six operations have a capacity of 32 million tons. per year of iron pellets and have produced approximately 170 million tons of pellets since 1956. Capacity for another 30 million tons per year of pellets is being considered by the industry for the next ten years. This increase will be obtained by construction of new plants and expansion of present operations. Thus by 1977, it is estimated that approximately 60 million tons per year of iron pellets will be produced from magnetic taconite on the Mesabi Range. The portions of the Biwabik formation subjected to intense alteration resulted in the direct shipping, wash and heavy media ores. Since 1892, 1.8 billion tons of direct shipping ore have been shipped from the Mesabi Range. This ore has been the major source of iron for American steel mills. In 1966, 12 million tons of direct shipping ore and 18 million tons of wash, jig, heavy media and other gravity concentrates were shipped from the Mesabi Range. These products generally have poorer physical and chemical properties than the iron pellets produced from magnetic taconite. It is predicted that the shipment of these materials will decrease from about 30 million tons in 1966 to 6 to 8 million tons in 1975. This decrease will be due to depletion of reserves and poor quality product.

Jan 1, 1968

By Brian W. Mackenzie

The mine development decision is made on completion of exploration to determine whether or not a mineral deposit should be developed to production and, if so, how. This involves the selection of an optimum mine development alternative from a number of technically feasible alternatives and the comparison of this optimum with those of other available investment opportunities. If the optimum is sufficiently attractive, the deposit is developed to production. The selection process is carried out within a framework of corporate objectives and resources. The mine development decision is based on the balancing of two parameters - - rate of production as reflected in plant capacity and cut-off grade. On the basis of available information and experience, detailed revenue and cost 'estimates are made for each feasible combination of plant capacity and cut-off grade. What economic evaluation techniques should be applied to these estimates to reduce each alternative to economic indicators that will enable meaningful comparisons and an informed investment decision? This is the essence of the paper. The determination of optimum plant capacity and cut-off grade has been the subject of intensive research efforts by economists and mining engineers (1-7). Their studies are based on marginal analysis and assume that, at the time of decision, certainty conditions prevail with respect to ore reserves, mining costs and mineral markets. The optimum mine development alternative is defined as that which maximizes profitability.

Jan 1, 1969

By J. R. Evans

Mining claims must have a discovery of a valuable mineral deposit to be valid. When required, a Federal government mineral examiner makes a determination of validity and recommendations thereof to authorized management officials. The examiner should show whether or not an existing mining operation, or a proposed operation have economic viability. This is accomplished through an analysis of legal entities, land status and use, geologic and mineralogic relationships, and mining, milling and processing techniques considered in an appropriate economic evaluation framework. A framework involves market and market entry studies, reserve analyses, all costs analysis, royalty buyouts, tax structure, discount rate of return, and escalation and risk factors. An income approach to value is then used by means of a simple or complex discounted cash flow (DCF) analysis to certify validity. Whether one claim is owned by a single miner, or hundreds of claims are owned by a large corporation, thorough, fair, consistent, and appropriate economic concepts should be applied by the mineral examiner.

Jan 1, 1993

By Brown N. R

This paper attempts to highlight some of the problems encountered in the economic exploitation of the deeper coal seams by opencast mining methods. The major cost elements of three methods of overburden removal are examined in relation to the overall cost of winning coal from deeper-lying coal seams. The three overburden removal methods examined are dragline stripping and two systems combining dragline stripping with shovels and trucks at varying depths of overburden. A dragline is, undoubtedly, the most cost effective system of overburden removal for depths of up to 30 metres but it is suggested that, when dealing with incremental overburden depths in excess of 30 metres, engineers should consider carefully the possibility of using a shovel and truck operation, or other system, to augment the use of a dragline.

Jan 1, 1986

By E. B. Spice

Although much may be learned about the economics of cold weather operations by studying successful mining ventures in southern and central Canada, it is the purpose of this article to extend the study by considering only permafrost areas. Geographically this means most of the country north of the 60th parallel. In this area, at the present time, only five Canadian companies are carrying on routine and successful mining operations on a year-round basis. However, there have been some score of unsuccessful ventures, and a number of properties in the development stage show promise of being producers. Problems of cold weather are worthy of study. It may be pointed out that successful mines in this area face problems of isolation and costly transportation as well as cold weather. To reach valid conclusions, consider the development of a mythical mineral deposit located on the 65th parallel in the heart of the barren lands; problems of isolation and transportation will be ignored.

Jul 1, 1956

By L. E. Garner

Aggregate resources should be considered primary factors in urban development. Resource planning is essential because land values, previous construction, or zoning restrictions often preempt exploitation of aggregate deposits within an urban area. Sequential land use practices allow development of areas prior to urban development. Population and aggregate consumption trends in Austin, Texas, indicate that substantial quantities of reserves will be lost to future development. Aggregate materials are present in nearby seas. However, a comparison of transportation and reclamation costs indicates that reclaiming land after mineral extraction can be significantly cheaper than transporting materials longer distances.

Jan 1, 1979

By R. G. Bradbury

The paper uses two hypothetical, but typical, situations to show that hydraulic rock drilling equipment has very significant economic advantages over pneumatic equipment both in drifting applications (even in the situation where advantage is not taken of the high productive capacity of the hydraulic drill) and production drilling applications. Other factors, including the non-economic advantages and the disadvantages of hydraulic drilling, are discussed. The paper concludes with a brief analysis of why the Canadian mining industry has been slow to take advantage of this apparent broadly advantageous advance in rock drilling technology.

Jan 1, 1979

By A. E. J. Gallagher

There are many influences which have a bearing on the economics of industrial minerals production. The purpose of this paper is to discuss briefly three factors which have economic significance in the production of these mineral commodities. The three items of discussion include 1) the nature and relative value of the industrial minerals group, 2) project planning, and 3) market analyses. General aspects of these factors are familiar to most of us. However, an attempt will be made to give some current details regarding each. Also, in reality, project planning and market studies are usually so closely associated that they will be discussed jointly, rather than separately. This will be done by way of examples which show how these two activities actually evolved for two industrial minerals projects.

Jan 1, 1984

By N. E. Norman, R. Stier

The mining industry is continually seeking out new and better underground mining techniques. One of the most recent-also, perhaps, the most significant-of the new concepts in underground mining is the use of mechanical rock-boring machines. And one of the problems that concerns us all in this matter is the cost of mechanical rock tunneling. To help answer the oft-quoted question "What will it cost me?" the following pages deal with the operating costs of so-called "medium to medium hard rock" boring machines-i.e., those designed to meet the drilling requirements in 8000 psi to 25,000 psi rock. A few machines are capable of drilling hard rock above 25,000 psi, but the economics of mechanical tunneling in rock that hard is limited at the present time. [ ] For mechanical rock tunneling, there are five main cost factors influencing the expense: Capital Investment, Cutters, Labor, Power Requirements, and Maintenance. These factors give us a good basic picture of the cost of excavation, although muck handling, erecting supports, and other costs directly related to conventional tunneling and mechanical boring enter into the final picture.

Jan 6, 1967

By Frances Badelow

This paper describes a design process for piled raft foundations supporting high-rise buildings. The design process comprises an initial stage of geotechnical site characterization using the results of investigation boreholes to prepare a subsurface model and derive geotechnical parameters for raft and pile design from empirical correlations. Following this a preliminary analysis is undertaken using a combination of elastic theory and allowances for non linear behaviour of the piled raft system to assess the viability of such a foundation system and any potential advantages of a piled raft over conventional fully piled foundation systems. Finally, a detailed analysis is undertaken using the GARP8 computer program. Case studies where this design process has been successfully used to design a more efficient piled raft system that has resulted in significant cost and time savings compared to conventional bored pile foundation options are also described.

Jan 1, 2006