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By D. Conklin

Annual fish monitoring of the Red River, NM from the town of Red River to downstream of Questa, NM has been conducted since 1997. This long-term dataset, sponsored by the Chevron Mining Inc. Questa Mine provides an opportunity to evaluate the fish community response to natural phenomena, such as landslides and drought. Hydrothermal scars are present on drainages to the Red River, which can contribute large quantities of sediment to the Red River during localized storm events. Sediment inputs from the hydrothermal scars result in decreased habitat and water quality conditions within the Red River. Landslides from the hydrothermal scars contributed large amounts of sediment to the Red River in the summers of 2002 and 2007. Resident trout populations in the Red River after summer 2002 were depressed at sites adjacent to and downstream of the hydrothermal scars. Resident trout populations had begun to recover by 2005 and 2006; however, after the summer 2007 landslide, the resident trout population was again drastically reduced. In fall 2007, 13 resident trout were collected from 11 sites in the approximately 23 km reach of the river, compared to 691 from the same 11 sites in fall 2006. Resident trout density and biomass has gradually increased since fall 2007, and flows have removed sediment from the study reach. A combination of increased sedimentation and decreased water quality were likely responsible for the decreased resident trout populations in the Red River. Drought and the lack of flushing flows appeared to exacerbate the problem of high sedimentation levels from 2001 to 2004. Climate models predict prolonged periods of drought and increased intensity of storm events, potentially resulting in less favorable conditions for the resident trout population of the Red River in this area.

Jan 1, 2011

By S. J. Hemberger, F. W. Lee, J. H. Swatz

"INTRODUCTION This investigation was undertaken in 1939 for the purpose of securing the necessary information relating to the field techniques and accuracy that would be needed for magnetically surveying State-wide areas. The Florida,peninsula was chosen for such a study for two reasons: First, because it is geologically ideal for such an investigation, since it comprises a series of unconsolidated, flat-lying Tertiary and Cretaceous sediments of low magnetic susceptibility covering a complex and much-folded crystalline basement comprised of rocks carrying strongly -paramagnetic materials; second, because information concerning the structural trends of the crystalline basement would be of great interest and Importance in the study of Appalachian orogeny and the relationship of the Florida Peninsula to both the Appalachian and Antilleantectonte systems. The results of this magnetic survey have clearly demonstrated that the magnetic anomalies reflect variations in the crystalline a basement. To the degree which the structures of the crystalline basement control the structures of the overlying sediments these results are useful for oil exploration.MAGNETIC OBSERVATIONSAll magnetic measurements were made with a vertical Aekania magnetic variometer having a temperature compensated needle. All observations were tied into two base stations located at Fort. Myers and Gaineeville, Fla. The absolute vertical magnetic intensities at these two bass stations were determined by the United States Coast and Geodetic Survey within an accuracy of + 10 gammas. The accuracy of the base station variometer used in the present survey was of the order of ± 3 gammas. The sensitivity throughout the survey of the magnetic variemoter used on the traverses approximated 30 gammas per scale division and it is estimated that the probable error between stations along a traverse would be about + 5 gammas. Measurements were started on traverse C near Fort Myers and tied into the Fort Myers base station established by the Coast and Geodetic Survey. Twelve traverses, comprising 1,500 station observations, wore occupied between the Fort Myers and Gainsville base stations. When the cumulative total of these 1,500 interim observations was tied into the Gainesville base station it was found to differ by only 30 gammas from the value obtained by the Coast and Geodetic Survey for that base. The observations were adjusted for this difference."

May 1, 1945

By Robert Vergie

Like most of you, I would rather work on a job than talk about it. But it is fruitful to spend some time taking stock of important developments in the heavy construction field. One of the strongest recent movements affecting the industry has been the push for safety. I regret that it is a recent development. Not that builders were against safety. Too often though, it was easier to continue with dangerous old work methods than to try something new. Too often, it was easier for equipment manufacturers to build production tools with little consideration for worker safety. And too often, accidents and gruesome disasters occurred. The ultimate result of on-the-job injuries in construction and other industries was the Federal Government's Occupational Safety and Health Act of 1970. Individual states were required either to accept OSHA or pass updated regulations at least as stringent as the Federal requirements. These new rules must be strictly obeyed -- not just because they carry civil and criminal sanctions -- but because they correct unsafe conditions and reduce hazardous acts. Though some OSHA measures have been criticized as superfluous, most of them do in fact save lives and limbs. Equally important, the tunneler who follows the new safety regulations can be fairly certain of an efficient, uninterrupted operation. Regulations do sometimes bring rewards.

Jan 1, 1974

By Liming Yuan

A study of the ignition of non-fire-resistant hydraulic fluid sprays was conducted by the National Institute for Occupational Safety and Health. Both an open flame and a hot steel surface were used as the external heat sources. With the open flame as the heat source, the minimum oil temperature and minimum spray nozzle pressure that resulted in an ignition were measured. The effects of the distance between the open flame and the nozzle and the nozzle orifice diameter on the ignitability of the hydraulic fluid sprays were examined. With the hot surface as the heat source, the minimum surface ignition temperature was determined. The degree of oil atomization and the relative direction of oil injection with respect to the hot surface are discussed. The ignition of oil sprays from the impingement of oil jets onto a vertical surface was also investigated. Finally, the results are compared with those obtained for fire-resistant hydraulic fluids. Keywords: Ignition; hot surface; open flame; hydraulic fluid

Jan 1, 2006

By David Garry, Michael J. Brnich, Lynn L. Rethi, Henry P. Cole, William J. Wiehagen, Roberta A. Calhoun

This document contains most of the materials needed to use the exercise. The main part of the document is the instructor's copy. It tells how to use the exercise, presents the objectives, the master answer sheet, the scoring key, and discussion notes to be used following the exercise. The next section summarizes results from field tests of the exercise, and reports the miners' evaluation of the activity. The last part of this document is three appendices. Appendix A is the exercise problem booklet. This booklet can be duplicated locally. The booklets are reusable. One is needed for every person in the classroom. Appendix B is the answer sheet and the trainee's questionnaire. Copies of this answer sheet must have the latent image (invisible) ink answers that appear in Appendix C printed on them.1 Answer sheets are consumable. One is needed for each person or each small group of persons who work the exercise. Exercise Summary Read this section first. It determines if the exercise is appropriate for your classes. If you choose to use the exercise, examine the table of contents and review the remainder of this document. Type: Latent image Audience: Supervisors, Safety Personnel and Accident Investigators Length: Eight questions (30 minutes for administration plus 30 for discussion) Skills: Developing a strategy or plan to prevent slips and falls Following correct procedures in conducting an accident investigation Preventing unsafe work practices Recognizing and instituting hazard controls in the section Identifying and implementing safe work procedures Location: Underground coal mine section Problem: You have been the general mine foreman at White Rock Mine for 4 years and have worked at this mine for 12 years. The mine superintendent calls you into his office. He gives you an accident report of an employee in 4-G section who was injured while carrying rock dust bags from the rock dust car to a battery powered scoop. It is several days after the accident and the mine superintendent assigns you and the safety supervisor to thoroughly investigate the accident to determine all the contributing factors. Your job is to make specific recommendations to prevent future slipping/tripping accidents.

Jan 10, 1999

M.S. Azun I have many objections to the content of the author's paper. Before discussing it, however, I would like to repeat the property of semivariogram function. Second order stationary properties of regionalized variables (ReV's) such as semivariogram function y(h) are perfectly known in geostatistics. Also, the kriging equations in the language of mathematical statistics using second order stationary properties are well understood. However, the way to use the sample (estimated) semivariogram function in any one of the kriging procedures is vague. The sample semivariogram function is given as follows: [ ] where N is the total number of samples, Xi is the sample value at the i - th location, Xi+h is the sample value at the i + h - th location, and h is the distance among the samples. An estimation variance of sample semivariogram function of first lag is smaller than that of higher order lag. The theoretical semivariogram function reaches the variance of samples asymptotically. But this is not easily observable because of the larger variation involved in the estimate of semivariogram function. In general, an estimation procedure is done for h = 0, 1, 2, up to the greatest integer less than N/2, even though sample semivariogram function can be computable through N-1. After estimating semivariogram function, the critical question of how to model sample semivariogram function arises. As seen in the above equation, sample semivariogram function is discrete and can be smoothed by the model being selected. Therefore, modeling of sample semivariogram function is the most important step in geostatistics. It not only smoothes a discrete function but also affects the results of the kriging procedure. When the only aim is to model the semivariogram function, which is the basic point of the author's paper, one can employ any fitting techniques, such as curve fitting, or any arbitrary functions, which are called submodels in the paper. The term "arbitrary function" is used rather than "submodel" because there is no basic understanding of developing them. The author suggests that the sum of those submodels can also be used for the modeling of sample semivariogram function. The combination of any arbitrary functions brings many problems instead of giving an insight of the domain structure considered. The author used two arbitrary functions and the nugget effect in response to sample semivariogram function (Fig. 10). For the same example, he stated that the parameters involved in the mixed arbitrary function model can be accepted when the discrepancy between sample semivariogram function and the model is small visually. For verifying the fitting behavior of any selected model, one should not be contented with the visual satisfactory. Some statistical measure such as goodness of fit has to be used. The author's practice is no more than an exercise in curve fitting without any fundamental understanding or conceptualization of the underlying physical mechanism. Furthermore, the selection of any model is not an easy task if the purpose is the search for the "best" response to the observed second order properties of ReV's. I suggest that the Markovian model (Azun, 1983), on the basis of a theoretical understanding of underlying mechanism, which gives more information about the occurrence of regionalized variables, is used to respond all properties of ReV's. There are a lot of problems for modeling of one-dimensional sample semivariogram function. Thus, it is not appropriate to go to higher order dimensional sample semivariogram function modeling. In the meantime, I would recommend that one can connect the values of standardized sample semivariogram function rather than simple values of semivariogram function in the two-dimensional estimation. The standardized values can be computed in dividing the semivariogram function value by the number of sample pairs involved in each lag regardless of the directions. In conclusion, geostatistics is an interdisciplinary area in mining that uses the principles of mathematical statistics. Thus, it should not violate any probabilistic and statistical rules. When Matheron was developing the theory of geostatistical study in the early years of geostatistics, many mining people had a reservation accepting the geostatistical tools. However, this does not mean that we, the geostatisticians, might try to convince those people using some "strange" tools or rules as some authors implied (Baafi and Kim, 1984). Instead, we have to develop and explain the geostatistical tools staying only in the framework of statistical concepts and properties. References Azun, M.S., 1983, "Stochastic Process Modeling of Spatially Distributed Geostatistical Data," Columbia University, Ph.D. Thesis. Baafi, E.Y., and Kim, Y.C., 1984, "Discussion - Comparison of Different Ore Reserve Estimation Methods Using Conditional Simulation," Mining Engineering, Vol. 36, No. 3, p. 280. Reply by J.M. Rendu The interactive method proposed by Rendu allows practitioners to develop semivariogram models that take into account not only the numerical information obtained by sampling, but also highly significant additional information that often cannot be quantified. The geology of the deposit - including hypotheses concerning its genesis, sampling methods, assaying methods, and mathematical methods used to calculate the semivariograms - all have an influence on the numerical results obtained and on how these results should be interpreted. If all the information concerning the spatial distribution of values in a mineral deposit was contained in the sample values, it could be argued that statistical techniques alone would produce optimum models. However, this is rarely, if ever, the case. Methods that allow the user to take into account his experience and his geologic understanding of the deposit should not be rejected for the sake of theoretical statistical purity.

Jan 11, 1985

By K. M. Kim

A site-specific blasting model has been developed for the Asarco Mission mine. The main inputs to the model are the in-situ block size (F80), the post-blast fragmentation (P80) and the intact tensile strength (To). The output from the model is the specific blast energy (ESE). Modern techniques are being used to obtain the input parameters for the site-specific blast fragmentation model. In particular, image processing software is used to obtain both the in-situ block size and the post-blast fragmentation, and the Schmidt hammer is used to obtain the tensile strength at numerous locations throughout the rock mass. An initial model was developed using five test shots in one area of the mine that contains Argillite and is relatively homogeneous. This also included calibrating Schmidt hammer readings against actual Brazilian tensile measurements. The model for Argillite will be updated as more tests are conducted, and the model will be extended to the other four primary rock types at the Asarco Mission mine.

Jan 1, 2011

By John Watson

New Technologies, New Challenges and New Opportunities For quite some time now, numerous explosive manufacturers have spent untold man-hours and millions of dollars trying to develop a blast initiation technology that would “once and for all” provide users with what was once believed to be only a theoretical possibility...nominal timing. Zero “cap scatter” (the amount of variation of delay timing from the targeted nominal) has been the industry’s goal ever since delays were first introduced into the marketplace. Just as adding delay time between blast-holes improved blast performance since their introduction, having the wrong delay or a poorly timed blast has proven to be very inefficient and in many cases hazardous. The question of how precise a blast initiation system needs to be still remains unanswered, but electronic detonator systems being used today indicate that significant improvements can be achieved over conventional pyrotechnic detonators. These systems can typically provide single digit millisecond ranges of variability, if not sub-millisecond in some cases.

Jan 1, 2003

By I. Benning

Since the dismal performance of the Rand Mines management was called to account by its shareholders in 1994, the waves of change have continued to ripple across the South African mining industry .The number of listings on the gold board of the Johannesburg Stock Exchange, that once numbered 40 or 50-odd, have now dwindled to no more than a handful as unprecedented restructuring has taken place. The redefining of the industry has not been limited to the gold sector, but across the base metal, coal, diamond, platinum and industrial mineral sectors as well. At the same time the Mining Houses began to reconsider their funding strategies. Originally established in the early part of the century to ensure the long-term sustainability of their group mining operations by providing substantial financial muscle and technical support, the Mining Houses were faced with a rapidly changing political environment, which proved to be a critical catalyst in giving momentum to the change. Furthermore, the significant development costs and increasing risk profile for new projects, coupled with pressure from shareholders demanding respectable returns, opened the door to opportunities for banks to begin providing external debt by the way of project finance. However, the provision of long-term debt to the South African mining industry had generally not been common since mining companies had financed new projects with equity, or with the cash flows from existing operations. Those banks that had the appetite for exposure to the perceived high risks of the mining sector rapidly built up specialist resource banking divisions capable of addressing the increasing demands of the industry. The application of project finance, the principles of which were developed in the 1970s specifically for infrastructure projects and privatization, is now commonly applied in the financing of greenfield and brownfield mining projects. This paper outlines the approach that lending banks would typically adopt when arranging or providing mining project finance, their usual areas of concern and the way in which the finance is structured to mitigate the many inherent risks.

Jan 1, 2000

By Heiner J. Sander

Stanford University operates the National Research Facility which is located at the Stanford Linear Accelerator Center (SLAC) in Menlo Park, California. In order to improve and allow for enhanced experiments, the current facilities required expansion. A1500 foot long tunnel (20 ft wide by 21 ft high) and a 220 foot long underground cavern (49 ft wide by 32 ft high) were excavated through the Ladera Sandstone formation which is an intermediate geo-material with week rock properties. The overburden between surface and crown of the structures varies from 10 to 80 feet. The underground structures were excavated according to the principles of the NATM (New Austrian Tunnel Method). This paper addresses the challenges that were encountered during the construction phase of the project and how construction issues were resolved mutually by the owner, engineer and contractor. The implementation of geotechnical instrumentation, recorded data and interpretations, soil conditions and behavior encountered during construction are also presented.

Jan 1, 2008

Standards And Laboratory Monitoring In Gold Assay Key Components Of Best Practice

Jan 1, 2005

By S. Hunt, D. de Vries

Kansanshi Copper Smelter began operation in March 2015. The smelter features a single Isasmelt furnace for smelting, one 6-in-line electric furnace for matte-settling and slag-cleaning duties, four Peirce- Smith converters and two rotary anode furnaces. A 1,450 t/day oxygen plant and a 4,085 t/day sulphuric acid plant are included in the smelter operations. This paper gives an overview of the operational performance to date with summary data for each smelter section. Challenges such as an unforeseen refractory failure in the Isasmelt furnace in 2016 are discussed. Design improvements around the electric furnace are mentioned. Plans for potential future improvements are put into context. A consistent focus on operations, maintenance and continuous improvement has seen the smelter easily achieve its nameplate capacity of 1.2 million tonnes per annum of copper concentrate throughput. The smelter now operates consistently at a concentrate throughput rate of 1.38 million tonnes per annum of copper concentrate. INTRODUCTION The smelter was commissioned in March 2015. Design and commissioning of the smelter have been discussed by de Vries, Hunt, Hanschar and Louie (2016). The smelter rapidly ramped up to achieve nameplate production (1.2 million tonnes per year concentrate) and in 2018 operated consistently at the rate of 1.38 million tonnes per year concentrate. This paper presents major operational data for each section of the plant and describes significant events and improvements during the first four years of operation. The smelter flowsheet is shown in Figure 1.

Jan 1, 2019

By William R. Bond, Jim V. Rouse

Introduction The pressure/vacuum (p/v) lysimeter or soil water sampler has become useful for monitoring vadose zone or unsaturated zone water conditions. The soil water sampler was first introduced around 1961. It was used as a monitoring and research device for studies in agriculture and soil contamination around landfills. Since then, it has been used for many purposes. The use of p/v lysimeters at mining facilities to monitor for solution loss is a relatively new idea. The primary purpose of the lysimeter here is to function as an early warning system. It detects leakage through liners of tailings ponds, heap leach pads, and leachate holding ponds. Their use has proven valuable for collecting baseline data and detecting loss of precious leachate fluid. Different lysimeter designs are capable of vadose moisture sampling from near the surface and down to 90 m (300 ft). They are also capable of sampling soil moisture or saturation plume contaminants from areas not accessible by conventional water well installations. The most common installations are usually simple and cost-effective. In many cases, they can be installed without the use of heavy drilling equipment. A properly placed and installed lysimeter can detect solution leaks in several days or weeks. A conventional perimeter monitor well may take months or years to detect a leak of the same magnitude. A discussion on the general design and installation of p/v lysimeters will give an understanding of its versatility. Three case studies of lysimeter installations at mining sites will be examined in detail. Design, Installation, and Sampling Design The basic design of a p/v lysimeter chamber consists of a porous material through which the soil is drawn into a collection chamber. Access tubes run from the unit to the sample station at the ground surface. Most units currently available range from 25 to 76 mm-diam (1 to 3 in.-diam). The sample collection chamber, or body, can vary from 0.6 to 1.8 m (2 to 6 ft) in length. The body can be constructed of PVC casing or Teflon, depending on the installation desired. The collection chamber functions as a holding reservoir for the collected soil moisture. The intake, or porous material, on the lysimeter is the most complex and vulnerable portion of the unit. The pore size selection varies based on the needs of the installation, type of fluid to be sampled, and type of soil material surrounding the unit. Teflon (PTFE) and porous ceramic are used in fabrication of the porous inlet portion. When using a Teflon material, which is hydrophobic, a larger pore size of 70 µm is needed to overcome surface tension and draw water into the collection chamber. It is typically used at sites involving organic contamination, because of its inert properties. Ceramic material is generally hydrophilic, having less surface tension. Therefore, it has a smaller porosity range to conduct the moisture through the porous medium while under vacuum. Pore sizes may be selected from 0.16 to 6 µm, and can be manufactured for the specific needs of the installation. The final major design component of the p/v lysimeter is the access or sampling tubes. The tubes are usually of 6.3-mm-outside-diam. (0.25-in.-outside-diam). They are made of rigid polyethylene or flexible Tygon with a wall thickness of 1.5 mm (0.06 in.). The con-

Jan 4, 1985

By L. F. Miao

Studies were carried out to investigate the ultimate soil pressure acting on pile(s) undergoing lateral soil movement in soft clay. A special apparatus has been designed to apply a uniform rectangular profile of lateral soil movement on the rigid pile(s) with pinned head and tip conditions to obtain the ultimate soil pressure. The piles were 16 mm (5/8 in) in diameter. For the pile group tests, the behavior of different number of piles (2, 3, 4, 6 and 9), pile arrangements and center-to-center spacings (3 and 6 diameters) were investigated. In this paper, the group factors of 11 combinations of number of piles, pile arrangements and pile spacings are presented. The group factors are given for individual piles in a pile group as well as for the entire group. Generally, the group factors of individual piles in a group varied significantly according to pile spacing in both directions, and pile arrangement; the group factor of the whole group reduced with an increasing number of piles, and increased with increasing pile spacing. For a pile group with the same number of piles but different pile arrangement, no significant difference was found in the group factors for the entire group.

Jan 1, 2008

By A. Anani

The need to optimize surface mining operations has led to the use of discrete event simulation (DES) modeling of truck-shovel systems. Often, these models assume truck cycle times are independent and identically distributed (iid) random variables, although, with significant bunching on the haul routes, this may not be valid. The objective of this paper is to present a methodology to (i) account for truck bunching due to slow trucks; and (ii) test for cycle time dependence (i.e. whether truck cycle time data is iid or not). We built a DES model that accounts for bunching due to a slow truck(s) and used the cycle times as data for further analysis. We then tested for cycle time dependence using Pearson correlation coefficients. The results show significant correlation of truck cycle times for different number slow trucks, with variable speeds. Assuming iid in modeling results in over-estimation of productivity and the uncertainty surrounding it. The over-estimation of uncertainty is pronounced when the relative difference in truck speed increases. The confidence interval of the means of truck loads/shift decreases with increasing number of slow operators. This work extends the usefulness of DES in truck-shovel applications.

Feb 27, 2013

By Kristen Dunlap

There are several thousand remote stream crossing structures in the Tongass National Forest in need of removal. In 2007 thirty-three collapsing log bridges, log culverts, and metal culverts no longer in use were removed with explosives. Species of salmon, trout, char, and sculpin are present in the project area. Blasting overpressures may injure or kill fish in streams and ground vibrations can damage salmonid embryos in streambeds. Regulatory agencies offer guidelines with limits for blasting induced overpressures and vibrations. However, there has been no quantification of blast overpressures in shallow streams. Methods used to predict lethal levels for various blasting applications have not been completely validated. This research provides guidance for analyzing ground vibrations and water overpressures during blasting activities in or around fish streams.

Jan 1, 2009

By Alain Pecker

The choice of a design concept for a bridge foundation is guided by various factors; several of these factors are indeed of technical origin, like the environmental conditions in a broad sense, but others non technical factors may also have a profound impact on the final design concept. The foundations solutions adopted for the Rion Antirion bridge are described and an attempt is made to pinpoint the major factors that have guided the final choices. The Rion Antirion bridge is exemplar in that respect: the foundation concept combines the simplicity of capacity design, the conceptual facility of construction and enhances the foundation safety. The design of these foundations was a very challenging task which required full cooperation and close interaction with all the parties involved: concessionaire, contractor, designers and design checker.

Jan 1, 2005

By Robert A. Cortese, Henry E. Perlee

Coal dust and float coal dust, produced during normal mining operations, in underground coal mines, are carried from the point of origin downstream by the ventilating air, where it deposits on the surfaces of the mine entry. In an explosion, this dust is lifted from the surfaces by the aerodynamic disturbances and, if of sufficient quantity, can continue to propagate the explosion. To prevent the surface coal dust from contributing, it must be inerted, typically by spreading pulverized limestone, i.e., rock dust, over the coal dust surface. To facilitate the dusting operation, the National Institute for Occupational Safety and Health (NIOSH), Pittsburgh Research Laboratory(PRL), developed an automated system that continuously monitors the accumulation of coal dust. This system could activate a rock-dusting machine that disperses rock dust into the ventilation air when dangerous deposits accumulate and deactivate the machine when sufficient inert has been deposited on top of the coal dust. The system consists of a microprocessor-controlled optical float dust deposition meter. This device measures the light intensity reflected from a deposited layer of dust. A standard cap lamp is used as a fixed-position light source. From the reflected light signal, the microprocessor determines the hazard level of the deposited layer and performs the appropriate action. Full-scale studies conducted in the Experimental Mine at PRL's Lake Lynn Laboratory, using alternating thin layers of rock dust and coal dust, successfully demonstrated the operation of the device. Based on the statistical data from these studies, a mathematical model was developed to predict long-term error in total rock dust content using this inerting procedure. Downwind dust dispersion was also examined to provide optimum placement of the dust sensors and to determine the need for better rock dust dispersion techniques.

Jan 5, 1998

By Martin Williams

During the coming decade, many of the first generation of ‘super-pit’ gold and base metal mining operations in North and Latin America will reach the end of their economic lives. The closure of such pits in a manner which is environmentally sustainable presents a considerable challenge to the minerals industry. Pit closure often results in the partial or total inundation of formerly dewatered mining operations, and the resultant formation of lakes. The development of techniques for predicting, and controlling, the chemistry, groundwater discharge characteristics and long term hydrospheric impact of these lakes has become a critical aspect of pit closure planning. In this sense, the paper point out that Sleeper Mine was the first of a new generation of open pit gold mines developed in Nevada, USA. The closure of the Sleeper pit exemplifies the use of a range of pragmatic approaches to pit flooding, with applicability to mine closure at many other sites throughout the Américas.

Apr 22, 2003

By Dale S. Hursh, William A. Brooks

Introduction US dependence on external energy sources is dangerous because of unstable political situations existing in key energy exporting countries. So, recent national energy policies call for increased reliance on domestic energy sources. Coal ranks as the most feasible domestic energy source due to its abundant reserves and continental distribution. But to efficiently extract these coal reserves, huge sums of capital funds are needed. Due to the depressed economy, lenders of capital funds are forced to be more stringent with loan applications. This results in fewer loans granted. In many cases, it is uncertain if funding can be obtained. Furthermore, the greatest level of domestic mine financing is expected to be in the coal sector. Demand for capital in the domestic coal industry is anticipated to increase 80% by 1990. The Chase Manhattan Bank in New York warns that these future needs cannot be met by the present capital markets. This article analyzes the current and expected situations of the capital markets available to the domestic coal industry, including: • current and expected future types of financing used in the domestic coal industry; • problems the domestic coal industry may encounter as it seeks capital; and • the future availability of capital funds as concluded from analysis of the first two items. Background Information Regardless of industry, all projects or ventures can be divided into four basic stages: generation; evaluation; selection; and execution. Within the mining industry, one can break down these stages to draw a clear picture of mine development, as shown in Fig. 1. Each successive stage has a corresponding risk level. This risk level defines the type of financing available to the mine operator. Mining Venture Risks A coal mining venture can be characterized by its unique blend of technical and financial risk. As the mine moves through different development stages, varying proportions of each of these risks are encountered. It is these risks that the lender evaluates to determine project suitability. For a coal mining venture, the major complexities generally occur with the technical risk. These include: • quantifying the coal reserves: • assessing the feasibility of the mining method; and • evaluating the design of the wash plant. The reserve risk is gauged by the amount of measured, mineable, and saleable reserves. The greater the latter amounts, the lower the risk. Secure title to the reserves plus title for any surface areas required are also of concern to the banker. Feasibility of the mining method and evaluation of the wash plant design should verify that the project can be completed according to the engineered spec-

Jan 9, 1982