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By Donald Hulse

"Mining has been a source of controversy for at least 500 years. “Since there has always been the greatest disagreement amongst men concerning metals and mining, some praising, others utterly condemning them…” (Agricola, 1556). In 2016, it is widely recognized that mineral resources and reserves must give due regard to the social license in order to operate.“Most commonly, the social license to operate (SLO) is understood to refer to ‘the ongoing acceptance and approval of a [project] by local community members and other stakeholders that can affect its profitability’ (Moffat, 2014).” “Social License to Operate has gained traction, in part, because it is also a concept which – while remaining poorly, technically defined – is generally easily and widely understood by community stakeholders (Bice, 2014).”A generation ago we learned that mining is based on a stable platform supported by three pillars, geology, mining and metallurgy. The three-legged stool is a very stable structure (Fig. 1).In 2016, it seems that we have added some other legs to the stool (Fig 2). The Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code) addresses “social, and governmental factors…” (JORC 2012), and refers specifically to social license in Section 4 of the Report Template “Estimation and Reporting of Ore Reserves.”The Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Guidelines refer to “environmental, legal and social data…(CIM 2003).”Compared to these, the 2014 SME Guide is positively verbose stating “a discussion of any potential social or community related requirements and plans for the project and the status of any negotiations or agreements with local communities,” (SME 2014) although in all cases the scope of this disclosure is left at the discretion of the competent person.When there are more than three legs on the stool, it is imperative that all legs be constructed exactly to the design. Any one or more legs that are out of alignment will cause the stool to wobble.Engineers are trained to create designs to meet specifications. Loads can be estimated, forces calculated and cost studies completed that will lead to, not only a stable design, but the most efficient design that meets the specifications."

Jan 1, 2015

By Mengxiong Guo, Xuxin Shao

The recent depressant research is summarized, and a new kind of depressant (SCO) has been put forward in this article. Using Na-oleate as a collector and SCO as a depressant, separation of dolomite and phosphate was studied. When SCO was added in the concentration range of 80 g/t to 2kg/t at pH 9.5 ± 0.2, dolomite was absolutely depressed, and apatite kept its floatability. Interestingly, in the mixture of phosphate and dolomite, the dolomite floated. The reasons for such a behavior are investigated through flotation and electrokinetic studies. It was found that the adsorption of dissolved species on dolomite and phosphate resulted in reverse flotation. A concentration of 31.59% P205 and 83.87% recovery of P205 was obtained from the mixture of phosphate and dolomite (2:1) with 26.6% P205 using 210 g/t SCO and Na-oleate 4.93*10-5 M at pH 9.

Jan 1, 1989

By C. -G. Zhang

This paper presents the results of a study on cellular acclimation of Acidithiobacillus ferrooxidans to sulfur biooxidation in terms of cells growth and changes in surface properties and morphologies of both cells and sulfur particles. The results showed that A. ferrooxidans cells were grown faster and demonstrated higher concentration in the soluble thiosulfate substrate than in nonsoluble hydrophobic S0 substrate. The results showed that A. ferrooxidans cells acclimated to the sulfur biooxidation by actively expressing some extracellular polymers substance and maybe some outer membrane proteins that modified the surface properties of both sulfur particles and the cells themselves. In addition, the results showed that the A. ferrooxidans cells were able to dynamically adsorb to or desorb from the surface of sulfur particles. The cells aggregating onto the S0 surface enhanced the use of S0 substrate by the bacteria cells. This mode may be one of the most important characteristics for the better growth and propagation of the cells in solid sulfur-containing media.

Jan 1, 2009

By C. J. Bise, D. A. Poukhovski

Two integral components of the 30 CFR 48 training requirements mandated for new miners, newly employed experienced miners, and the annual refresher training of all miners are hazard recognition and prevention of accidents. In these categories, instruction shall include the recognition and avoidance of hazards present in the mine, and a review of accidents and their causes. Unlike instruction preparation for fact-based material, program development for hazard recognition places a particular challenge before safety-training specialists because they are often limited in their ability to adequately gauge the trainees' levels awareness prior to training. Further, they must also assure that the training is relevant, and it is presented in a thought-provoking manner. Computer-based instruction is particularly well suited for assisting trainers in developing hazard- recognition topics because it can be used in pre-training and post-training modes for assessment of training effectiveness, in addition to use as a presentation tool. Therefore, this paper will present a recent approach developed at Penn State to apply this technology for assessment and instruction of accident prevention through hazard recognition, with an application prepared for surface coal mines.

Feb 24, 1997

By G. Kosick, G. Dobby

CEET, an acronym for Comminution Economic Evaluation Tool, was jointly developed by MinnovEX Technologies Inc. and 13 major mining companies for the purpose of designing and predicting the performance of grinding circuits. It fundamentally differs from other methods by using as its’ data set a geostatistically significant population of hardness data distributed across the mine block model. Historically the characterization of an orebody for the purpose of either designing a grinding circuit or predicting the performance of an existing circuit has been done with a relatively limited number of discrete samples. In addition to power selection, shell sizing, and costing for multiple circuit options, CEET also outputs tons per hour, P80, and operating cost on every mining block for subsequent integration back into the block model. This paper will provide an overview of what CEET is and how it works.

Jan 1, 2001

By B. Caro Vargas

The Toulon South Tunnel in France is the second part of a project started 20 years ago. After the problems and delays suffered during the construction of the North Tunnel, due to a complex geologic context of highly fractured and soft rocks under a highly urbanized environment, a very dense automatic monitoring system was implemented to control the settlements of surface (more than 1000 points), the structures adjacent to the tunnel alignment and the underground galleries being constructed. The latest automatic instrumentation systems were installed, using for example AMTS capabilities in terms of ?automatic prismless settlement monitoring?. All the data (geotechnical, structural and geological) was gathered in a global automatic data acquisition system and continuously available on a web based interface. Three different threshold levels (notification, anomaly, alert) were set up, each one with a differential and an absolute value for settlements. Depending on the actual geological site conditions and the actual monitored settlements, different supporting systems and excavation techniques were used. Furthermore, the monitoring data was also used to predict and anticipate the future settlement, by comparing it continuously with the theoretical Peck settlement curves. This method allowed a better risk management by limiting the settlement on existing structures and helped to secure the Works progress schedule, for a project that lasts from July 2007 to March 2011. The implementation of this observational method application is presented in this paper.

Jan 1, 2012

Many of the world?s largest existing mines are considering substantial step changes in production volumes, compensating for declining ore grades while trying to address increases in world demand for resources. The natural configuration of coal deposits allows for many mine development openings along the strike to access the ore body and thus increase volume. Similarly, with iron ore the nature of the deposits means that additional capacity can easily be added by opening up new mesas and providing extensions to infrastructure. On the other hand most of the non-ferrous metaliferous deposits form vertically and additional extraction volume comes from increasing depth. Underground mining from the base of the strata allows for large extraction rates, but block or panel caving operations develop at rates dictated by the geophysics of the overlying strata and the need for massive tunnelling developments to establish sufficient extraction points for high volumes. For really big mine production capacity, open cast mining still allows the easiest development of more massive mining techniques. But there remains the question of whether there are limits to how large an open cut mine can become in terms of throughput?

Feb 27, 2013

By John Corcoran

INTRODUCTION Content of this Report The 1300m long twin-bore 8.1m diameter Airside Road Tunnels (ART) were excavated beneath the busy taxiways and stands of Heathrow Airport between 2002and 2003. The tunnels were fully completed and handed over to the client for use early in 2005. This paper will describe the purpose of the tunnels, and the measures put in place to minimize the impact of construction on the daily activities involved in running an international airport. Terminal 5 Construction Heathrow Airport is the busiest international airport in the World, with a current capacity of circa 67 million passengers per year, based on existing infrastructure of4 passenger terminals, 1 cargo terminal, 2 runways and 170 aircraft stands. Terminal 5(T5) is being built to increase Heathrow’s passenger capacity by providing the following: 12 additional aircraft stands through redevelopment of the south apron area, in the autumn of 2004 A main terminal building (T5A) and a first satellite (T5B), and 43 additional stands by the spring of 2008, most of which will be able to receive the new generation large aircraft (Airbus A380) A second optional satellite (T5C) by year 2010 A third optional satellite (T5D) by year 2015 The total value of the project is approximately 4.2 billion pounds for the main phase of the works spanning from 2000 to 2007. Purpose of the Airside Road Tunnel The ART has been constructed to support the internal road traffic of the airport between terminals, aircraft stands, runways and taxiways, for passenger buses, service and technical vehicles. The majority of the traffic will be buses transporting passengers between the terminals and their aircraft.

Jan 1, 2005

By Andy Mille

The paper highlights development of tunneling methodology in the UK during the years 1990-2000 using the example of two major tunneling contracts where there solution of difficult tunneling problems during construction has benefited the industry as a whole. The paper deals with specific difficulties on two Contracts. The London Water Ring Main 80 kms (50 miles) long tunnel average internal diameter 2.54 m (9 ft4 in) and the Brighton Stormwater Tunnel 5.2 km (3.2 miles) long tunnel with an internal diameter of 6 m (19 ft 8 in). The results of human endeavour and technological innovations will demonstrate the giant strides made in tunneling methodology in the last decade of the 20th Century.

Jan 1, 2001

By J. D. Miller, C. L. Lin

Appropriate software and hardware necessary to adapt a x-ray CT analyzer for determination of coal washability has recently been developed and sucessfully tested for well characterized samples under laboratory conditions. Evaluation of the CT-based analyzer under simulated on-line conditions is also presented to verify the on-line capabilities of the newly developed x-ray CT analyzer for the control of coarse coal cleaning circuits. The investigation shows that the data obtained from CT washability analyses compare favorably with experimental sink-float data. Further, image frequency was considered to evaluate the CT-Based coal washability analyzer for simulated on-line conditions. Specifically the number of observations (image spacing) needed for accurate sampling and the total time required to perform the calculations for a representative data set were determined.

Jan 1, 2001

By Kewal K. Kohli, Thomas Z. Jones

This paper presents a simplified computerized method for the prediction of maximum subsidence and the subsidence profile for the Appalachian Coal Basin using the Hyperbolic Function Profile Method. Several case histories are cited to demonstrate the appropriateness of the predictive method. In addition, sample runs and a detailed listing of the computer program is provided. Other popular subsidence prediction methods are discussed and compared with the Hyperbolic Function Profile Method.

Jan 1, 1986

By 1980, the U.S. mining community had reached a broad consensus regarding coal pillar design. The pillar load could be estimated from tributary area theory, and the pillar strength from empirical formulas and laboratory coal strength testing. Then the growth of longwall mining required new thinking. Recently, powerful design methods have emerged from analysis of large data bases of real-world pillar successes and failures. These include the Analysis of Retreat Mining Pillar Stability (ARMPS), the Analysis of Longwall Pillar Stability (ALPS), the Mark-Bieniawski rectangular pillar strength formula, and guidelines for preventing massive pillar collapses. Sophisticated numerical models have also helped transform the pillar design landscape. In the process, our understanding of pillar mechanics has been greatly enriched. A new paradigm divides pillar failure into three categories:

Jan 1, 1999

By Donald L. Everhart

The National Uranium Resource Evaluation (NURE) program since 1974 has been designed to accomplish a comprehensive coverage of the 48 conterminous States and Alaska to evaluate the total uranium resources of the USA. This resource base includes both ore reserves and potential resources. Techniques include airborne radiometric and magnetic surveys, by hydrogeochemical surveys, surface and subsurface geologic studies, and the application of improved geochemical exploration and resource assessment methods (Table 1). In brief review, the current status of each of the five basic NURE elements is as follows: In the Aerial Surveys, in the conterminous 48 states, the flying has been completed in 89 of the NTMS 10 x 2° NURE quadrangles, and is in progress in 39 more (Figure 1). Complete quadrangle data have already been open filed for 46 additional quadrangles, for a total of 174 for which data gathering is either complete or in progress. In Alaska, the flying is complete in 42 quadrangles, and quadrangle data have been open filed for 34 more, for a total of 76 (Figure 2).

Jan 1, 1979

By Steve Skelhorn

Edmonton South LRT is the latest expansion of the Subway system in Edmonton, Alberta, Canada: Consisting of twin 5.8m segmental lined tunnels, 280m long, driven by a Lovat EPB machine. The key challenges were as follows. A 6% downhill grade. Tight radius curves of 250m.Overlying structures within 3m of the tunnel. Strata consisting of sand above the water table, glacial tills and bed rock below the water table. Located within The University of Alberta Campus and adjacent to a hospital. Northern Alberta climate with winter temperatures routinely falling below—minus 30 degrees Celsius. This paper provides a case history and outlines the challenges involved in completing this project.

Jan 1, 2005

By W. J. Miles

At the beginning of the 20th century, barite was a mineral of minor importance in the United States. Its primary use was to extend lead oxide in white paint. Barite also added the special qualities of hiding power and flatness to paint. Because white lead sometimes turns black or yellow and barite does not, ground barite became a pigment on its own merit. Barium chloride was added to bricks before fi ring to stop efflorescence when exposed to weather. Barium carbonate or nitrate added luster and brilliance to glass. Barium chemicals were added to refining sugar, enameling iron, making oilcloths and paper collars, and in the manufacture of paper, artificial ivory, rubber and lithopone. Lithopone became a major paint ingredient in the 1920s; its use lasted until the 1950s, peaking at 150 kt (165,000 st) of barite in 1937 and 1947 for the manufacture of lithopone. Later in the 20th century, titanium dioxide replaced lead oxide, barite and zinc oxide in the coatings industry. In the 21st century, barite is used as a filler, extender or weighting agent in products such as paints, plastics and rubber. Some specific uses include its use in brake and clutch pads for automobiles, automobile paint primer for metal protection and gloss, to add weight to rubber mud flaps on trucks and to add weight to the cement jacket around petroleum pipelines under water. In the metals casting industry, barite is part of mold release compounds. Because barite significantly blocks X-ray and gamma ray emissions, it is used as aggregate in high density concrete for radiation shielding around X-ray units in hospitals, nuclear power plants and university nuclear research facilities. Ultra-pure barite consumed as liquid is used as a contrast medium in medical X-ray examinations. Barite is the raw material for barium chemicals, such as barium carbonate, which is an ingredient in faceplate glass in the cathode-ray tubes of televisions and computer monitors. In the 21st century, barite industrial uses accounts for an estimated 78 kt/a (86,000 stpy) in the United States.

Jan 1, 2009

From the massive equipment that moves the earth, to the parts that keep the equipment moving, it was all on display for more than 35,000 people who at-tended MinExpo 2008 at the Las Vegas Convention Center Sept. 22-24. In the largest show in the illustrious history of MinExpo, the success of the recent commodity boom was reflected in the more than 55,700 hm2 (600,000 sq ft) of floor space that was jam-packed with nearly 1,300 vendors. Among them, the makers of the industry?s largest machines, displaying their latest and greatest trucks, shovels, excavators, drills and other mining equipment. During the nearly decade-long commodities boom, equipment makers have worked hard to keep up with demand while also investing heavily in research and development. The beneficiaries of this R&D is the end user who saw first-hand at MinExpo 2008 the many advances that have already been made in safety, comfort and productivity from all the manufacturers. R&D has also helped spark more talk of automation, which is being used already at some of the world?s largest mines. Caterpillar and Komatsu have worked with the technology in surface mining and Bucyrus and Sandvik are among the industry leaders applying the science of automation to underground mines. Technology has in-creased greatly since the idea of moving massive equipment remotely was first knocked around and the idea of entire fleets operating around the clock seems to be getting closer to reality. But, until that happens, MinExpo attendees were treated to a show that featured some of the most impressive current machines the industry has to offer. In the largest booth space of the convention, Caterpillar (www.cat.com) displayed the culmination of an ambitious $280-million dollar investment, with the introduction of its new mining fleet of four new trucks. The F-series was un-veiled with common features in safety, cabs, engines, frames and bodies and Tier 2 compliant engines. The F series also features a return to the electric drive option. ?When our customers asked us for improvements to our mining trucks, we responded by making a record investment in every single truck in our line, as well as the increased capacity to produce more of them,? said Cater-pillar group president Stu Levenick. ?New technologies have allowed us to make trucks more reliable, easier to maintain and more friendly to the operator and to the environment.? The 793-series is in the 218- to 227-t (240- to 250-st) class that will be available in both mechanical (793F) and electric (793F ac) versions. The electric drive-only 313- t (345-st) 795F was also introduced, while the flagship 797B truck is in the process of being replaced by the new 797F mechanical drive, maintaining its 345- to 363-t (380- to 400-st) target payload. Completing Caterpillar?s new mining truck line will be new versions of the 785 and 789 mechanical drive trucks. The next generation of trucks will be phased into production during the next two years, with the Cat ac drive models expected to go into production in late 2010. The $280-million in-vestment is Caterpillar?s largest commitment ever to the mining industry

Jan 1, 2008

By M. J. Ramos

Without an exclusive definition of administration in business, we could propose to define it as performance by management to adopt or implement established business formulas. Administration could also be defined as a universal process that organizes people, and achieves, through efficiency, common objectives and goals. Humanity developed some form of this process from the beginning of civilization. To imply that something is new in administration might be considered specious or naïve. Moreover, what is new in management? Administration of business is not new to the world. To prove this statement, we need only ask this question: Does the architecture and monumental workmanship of the past civilizations of ancient Egypt, Rome, and the Incas demonstrate management without administration and without definition of objectives? The answer must be a resounding ?NO!? In spite of this acknowledgment and for the purposes of this presentation, I will use the word ?new? in business and hope that the reader will follow my reasoning. The mining industry has unique characteristics in respect to other industries. It is multi-disciplinary, has a single purpose (majority for one metal), has two players (man and nature), and it involves high risks for generating environmental imbalance. Mining exploits non-renewable and finite resources, creates an unstable job market (work hard to have no work) and a speculative economic market with unpredictable prices ? a one-time payment for a finite resource with multiple recycling. On top of all that, the industry still operates within obsolete petroleum-based technology, utilizing practices that were designed two centuries ago. Today, we confront the challenges of the millennium with outmoded practices and management. Ordinarily, several styles of administration are standardized into a FRAGMENTED vertical system of organization. Mining has rigid objectives in production, with profitability as the focus from the beginning to the end. Citing the concept of safety, as an important facet of production is bombastic since, in truth, mining is an experimental industry that consistently reports high numbers of fatal accidents. In mining, we designed a process to work according to our objectives, demanding attention and supervision of all levels of management with a halo of parameters that are not assimilated into the design. We continue to perform a rigid style of management in an industry that is still not responsive to variations of the market ? losses in particular. The existing design process generates loss without capitalization and without response to said loss. This perception is reflected in a mindset that is only too ready to ignore mining liabilities. The reality of the enterprise has created an immense pressure from top to bottom in the hierarchy to do more with less. It is for all of these reasons that I propose to set forth a new essence for administration that encompasses an alternative vision and style in mining: Management by Loss. MANAGEMENT BY LOSS Management by Loss (MBL) is a systematic, integral process organized to quality control operation and the human profitability within the industry. It permits focus on achievable goals by utilizing the best practices (Mining Open-closing). Identification and characterization of loss in the process determine how objectives are defined, controlling the time limits to execute based on constant balance of mass, energy, water, and ?wastes? in each stage of the industry, in order to reach final objectives. The concept of loss can be defined by various criteria. Generally, it is the mass that could not make or arrive at its destination from a designed process or simply, it could not maintain balance. Otherwise, the design of the process describes the final point of the resource. However, those resources could not make their destination because of failure to use the best design, resources and TIME. The loss has typical characteristics such as Identifiable, classifiable, measurable, manageable, controllable, valuables, negotiable, avoidable, reportable, and monitoring. In the traditional scheme, these losses are not registered; they are made exclusions. We are trapped within a system, which was designed to obtain objectives of the industry in a specific timeframe. In the present style of administration, the focus is total - our emphasis in this treatise is in the loss. The current traditional report form contains only the most positive achievement of objectives, only the best of the exercise, humanizing numbers, without touching what we left behind or what we were waiting for to assimilate as a ?surprise account?(new account of liabilities). Management by loss is a method that redefines the concept of waste (waste zero) for controlling the mine operation under the equilibrium of the ecosystems. This method confronts the problems that impact our industry in this millennium. Understanding and quantifying losses (reserves, resources, time, energy, water, soil, materials, equipment, tasks, labor, ecosystems, etc) is a priority mandate for the industry and demands the application of a ?new ? style of administration by seeking to maintain balance instead of the disequilibrium that mining now creates in nature. It is necessary to answer questions such as: How can we minimize loss? How can the loss be assimilated during the life of the mine? What is the vision of mining in respect to the generation of waste? How can we convert liabilities into assets? In addition, the control of loss is determined in the achievement of the plan. Loss occurs because of a failure of the process in the original plan. Still we do not plan to fail but we fail to plan appropriately. It is a remarkable thing to accomplish and compel those objectives described in the original plan when that plan is designed with a determined budget. If not, we lose time and, of course, capital. Moreover, in Management by Loss (MBL), we can find answers to the following questions: What is the multiplier of productivity in mining? What are the influences of identification and characterization of loss and what is the level of efficiency of energy in order to achieve waste zero (effective cut off grade)? The challenges of mining in this millennium validate this new style of administration. Finally, it is important to point out that mining is entering into an era that has different rules, but the industry is still run by companies functioning with objectives from two centuries ago. They are trying to confront issues with concepts that are not designed for new tasks. Therefore, I ask you to consider this new style of administration of business under a vision of how the industry should be organized and managed, with an attitude of balance toward nature and social responsibility.

Jan 1, 2009

By Steve Kral

Despite low commodity prices and mining industry cutbacks throughout the world, Peru remains one of the industry’s bright spots. The country’s remarkable economic turnaround during the 1990s remains a model for other developing nations to follow. And the Peruvian government has not forgotten the industry that was instrumental in that turnaround. True, the country has not been spared the effects of the mining industry’s retrenchment that has occurred in other parts of the world. However, foreign mining companies remain committed to doing business in Peru. And the government remains committed to attracting foreign investment and maintaining a strong mining industry. This commitment was evident in September 1999during the 24th Convention of the Institutos de Ingenieros de Minas del Peru in Arequipa, Peru. More than 3,000 mining industry professionals from around the world attended the convention. And Extemin, the accompanying exhibit, featured more than 450 companies, many from the United States, Canada, Australia, South Africa and other countries.

Jan 1, 2000

Grouting is mainly used to improve mechanical properties or decrease the permeability of rock mass around civil and mining projects. The purpose of this paper is to present the most effective factors on grout penetration depth in rock mass. Such factors are essential for reliable estimation of the grout penetration depth and the expense for cement take of any grouting project. In this paper, about 50 different types of the relations presented so far by various researchers to estimate the depth of penetration in fractured rock were studied. The effective factors are classified to rock mass properties, grout properties, and operational factors. Results show that firstly, the discontinuities aperture and Lugeon value are respectively the most investigated factors of rock mass properties influencing on penetration depth. Secondly, the yielding stress, viscosity, and density of grout are the most effective factors of grout properties. Finally, grouting pressure has an intense effect among other operational factors. The investigations were also verified in Siah Bishe dam case study. Keyword: grout penetration depth, rock mass properties, grout properties, operational factors.

Feb 27, 2013

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

"All-in sustaining cost is a metric used by mining companies to reflect the cost of gold mining in a consistent format useful to both investors and mining professionals. Cost reporting focused on the direct cost of mining and processing ore was summarized in the non-GAAP cash cost developed by the Gold Institute in 1996. In 2013, a group of mining companies, working with the World Gold Council, developed a more inclusive approach to reporting costs designed to solve the dilemma of showing a more comprehensive reflection of recurring costs involved in producing gold, without discouraging investors. INTRODUCTION Mining today plays a key role in the development of our civilization as a source of essential raw material and provider of essential fuels, producer of jobs, and a factor in support of the international balance of monetary payment (Camm, 2014). Professionals in mining locate, develop, design and manage ore deposits in an environmentally safe and profitable manner. As mineral deposits become increasingly scarce, new challenges face the industry. A current trend is to an increased emphasis on underground mining techniques for deeper deposits. Operations are safer today than before as companies understand better their work environment and the importance of mining responsibly. A continual challenge for the industry is accurately reflecting the costs and selling price of ore. An enduring characteristic of mining is the situation where the market typically determines the price of a commodity; the main control a company has on the bottom line is to control the cost of production. An attempt to bring light and clarity on the cost of their business will give a better idea to investors on the true profitability of the mining business. Gold producers face this struggle to accurately reflect the cost of production while also seeking to attract the interest of the investment community (Hill, 2013). In order to have a consistent format to report on their production costs, leading gold producers through their alliance inside the World Gold Council (WGC), worked on the adoption of a new cost framework: the All-in Sustaining Cost (AISC) and All-in Cost (AIC). Since 1996, the traditional cash cost reporting has focused only on the mining and processing costs incurred in mining an ounce of gold, which included the costs of goods sold (labor, energy, and consumables costs) and royalties (Table 1). But cash cost reporting ignores many important aspects, like sustaining capital, general and administrative expenses, and site rehabilitation at the end of the mine life (Whelan, 2013). The cash cost was used to attract many investors into the business. In fact the high gross margin (sales minus cash costs) has been promoted the past decades by the industry instead of the net or operating margin. As a result, even when the gold price was high, nearly $1900 per ounce in August 2011, gold producers were not reporting excessive profits in their cash flow / income statements, to the disappointment and incomprehension of investors (Milstead, 2014). The truth was simply that the other costs omitted in the traditional cash cost were reducing the apparent profits."

Jan 1, 2017