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By B. Berhe, R. D. Lawrence, J. Hinzer

"The fortunes of mining companies and their implied value are tied to cycles - both economic and commodity – within which they operate. Hence the determination of appropriate future metal prices is one of the most critical factors faced by mineral valuators especially for advanced projects. Price, and hence revenue, is usually the most sensitive input to the valuation model. Empirical studies of past forecasts show that the success rate for commodity price forecasting is very poor. This paper explores various approaches and comments on their strengths and weaknesses. We conclude that careful evaluation of long-term metal prices is a key element and is hardly a luxury that can be left to simple averages or rules of thumb. INTRODUCTION Discounted Cash Flow (""DCF"") analysis, is well suited for the valuation of advanced mineral development assets, for which there are identified mineral resources and some form of economic assessment (Pre-Feasibility or Feasibility Study). The DCF method is also the most commonly used method for determining value for such assets. It provides a means of relating the magnitude of expected future cash flows from profits (or losses) to the magnitude of the initial cash flow (investment) needed for capital expenditures to purchase or to develop an asset for commercial production. The method proves useful in making investment decisions as it allows for the quantification of the Net Present Value (“NPV”), as well as the Internal Rate of Return (IRR) and Payback Period on initial investment capital. Valuation by its very nature is a forward-looking exercise. The DCF method attempts to estimate the NPV of expected future cash flows, by selecting factors that will likely affect future cash flow based on informed analysis. One of the most critical and sensitive factors is the determination of appropriate future commodity prices. “The variables that have the greatest impact on a DCF evaluation are the reserves, the metal prices, and the discount rate.”1 The determination of future commodity prices for valuation purpose or during M&A negotiations is a hotly contested issue. There are a number of analysts, institutions and specialized commercial data suppliers that provide both short and long-term commodities price forecasts. Also, the use of an aggregated mean for all available forecasts, or consensus forecasted prices for valuation purposes is not uncommon. The methods used in making forecasts for each forecaster may vary and in many cases may not be publically disclosed. Nonetheless, the aggregated mean of all forecasted commodity prices of reputed institutions is usually taken to “represent the market’s view of likely future commodity prices.”"

Jan 1, 2016

By Jr. Raleigh

In a cooperative agreement between the U.S. Bureau of Mines and the U.S. Department of Energy, laboratory column-flotation tests were conducted to evaluate fluorosurfactants as selective fine coal flotation collectors. A Middle Kittaning seam coal responded to flotation with both anionic and nonionic fluorosurfactants. These fluorosurfactants were no more selective than MIBC alone. However, for increasing coal yields, nonionic fluorosurfactant systems did not increase total sulfur and ash contents as sharply as MIBC systems. Flotation selectivity also improved slightly when a combined anionic fluorosurfactant-MIBC system was used in acidic pulps (pH < 3.6). While the fluorosurfactants examined will not likely have direct application in current coal flotation practice, other fluorosurfactant systems could eventually prove beneficial for floating fine coals.

Jan 1, 1990

By J. B. Hiskey

The principle oxide minerals of molybdenum are wulfenite (PbMoO4), ferrimolybdite (Fe2(MOO 4)3.nH2O), powellite (CaMoO4), and ilsemannite (Mo304). Wulfenite is found in Arizona, New Mexico, Nevada, Utah, California, and Montana. It is also found in the states of Sonora and Chihuahua, Mexico. Prior to 1915 wulfenite ores were the primary source of molybdenum. The solubility of wulfenite in hot sodium sulfide was first noted by Bonardi(1) during attempts to sulfidize wulfenite material prior to flotation. He identified lead sulfide and soluble sodium molybdate as reaction products. Bacon (2) sulfidized wulfenite in preparation for flotation and by X-ray analysis found the reaction product to be lead sulfide. Holmes(3) made an extensive investigation of the extraction of molybdenum from wulfenite concentrates by leaching. Nearly 100% molybdenum extraction was possible from -100 mesh samples leached for 15 min with 10% sodium sulfide solution at room temperature. Molybdenum extraction from -100 mesh samples after leaching 30 min at a temperature of 45°C using 2, 4, and 6% sodium sulfide was about 32, 79, and 98% respectively. The extraction showed little sensitivity to time, temperature, or particle size using 10" sodium sulfide solution.

Jan 1, 1976

By J. G. Davis

Continental Oil Company has spent over four years of research on the fundamentals of potash solution mining. This work included laboratory investigations of salt solution, brine flow, selective extraction of KC1 from sylvinite, and control of cavity geometry. Laboratory results were expanded by means of a series of field tests, and subjects such as well completion and hydraulic fracturing were added to the investigation. Both single-well and multi-well mining systems were studied in the field work. The current paper discusses one field test in which potash was solution mined from a thin sylvinite ore zone in the Carlsbad Potash Basin. A two-well mining system was used for this test. The potential economic value of solution mining has been recognized for many years, and applicable United States patents date back into the past century. Principal advantages of the process over conventional mining include (1) the use of drilled holes and solution techniques in- stead of excavated shafts and caverns and (2) the ability to mine both land and marine deposits through any type of overburden geology and below conventional mining depths.

Jan 1, 1969

By J. D. Grenia

The Buick Mine is a joint venture of American Metals Climax, Inc., and Homestake Mining Company located 120 miles by road southwest of St. Louis, near the village of Boss, in the &apos;New Missouri Lead Belt&apos; (See Figure 1). Since start-up in 1969, over four million tons of lead-zinc ore have been mined and milled at Buick. Situated about 1,100 feet below the surface at an elevation 270 feet above sea level, the flat lying sinuous ore bodies are up to 250 feet wide, 85 feet high and several thousand feet long. Mineralization is galena, sphalerite and chalcopyrite in dolomite, Access to the mine is through two 18&apos;Ø concrete lined vertical shafts - one for servicing and the other for hoisting ore (See Figure 2). The mine is being worked by a modified room and pillar method using both rubber tired equipment and a sub-level rail haulage. Ore is broken from first pass headings, back and bench faces and transported by load-haul-dump units to ore passes located on 900 foot centers. The ore is pulled from chutes on the sublevel 90 feet below into 15 ton bottom dump cars and delivered in 10 car lots by a 15 ton diesel locomotive to a 42" gyratory crusher (See Figure 3). A recent innovation has been the introduction of two 50 ton trucks with plans to haul up to 60% of the ore on the mining level to an ore pass feeding directly to the primary crusher (See Figure 4). Ventilation raises up to 16&apos;Ø, which were originally planned for 900 foot centers, are now driven on 450 foot centers.

Jan 1, 1973

By Evgueni Jak

Pyrometallurgy is an important sector of modern industrial society actively participating in solving current environmental, economic, materials scarcity and other challenges. Recent advances in analytical methods, experimental techniques, thermodynamic, phase equilibria and process modelling tools provide new opportunities to increase the productivity of pyrometallurgical reactors, the treatment of complex feeds and metal recoveries. Fundamental theoretical models can now be used to make a significant next step towards the development and implementation of computerised models describing real industrial processes—Virtual Reactors, and computer-aided smart-decision-making systems that may be called Pyro-GPS by analogy to GPS; these developments can facilitate knowledge-based improvement and optimization strategies. The implementation of these improvements require ongoing collaboration between researchers, industry and government

By Bruce S. Brown, Jeremy P. Haile

The construction of tailings facilities and heap leach pads for gold mining operations generally requires the installation of one or more impermeable liners beneath the structures to satisfy environmental regulations and prevent the leakage of gold bearing solutions. Liners are usually constructed using clay soils or synthetic membranes, such as high density polyethelene. Low permeability soil liners can be constructed from natural clays, well graded soils with only a small clay content, or sandy soils blended with a small quantity of imported clay such as bentonite or kaolinite. The permeability of such materials, prgperly pped with good quality control, generally lies in the range of 10- to 10- cm/s, and can be designed to meet minimum prescriptive standards set by regulatory agencies. Important benefits resulting from the use of clay liners include the slow rate of penetration of a saturated wetting front, the decrease in permeability of the liner as it consolidates under the applied load of tailings or ore, and attenuation of potential contaminants in the process solutions. Synthetic liners can be attributed a finite permeability as a result of minute perforations and seaming deficiencies, and possess none of the above properties. Synthetic liners are also, by their nature, relatively thin and even a small head build-up above the liner will result in a large hydraulic gradient across it.

Jan 1, 1988

By Regina N. Tempel, Mae S. Gustin, Mark A. Engle

This study characterizes the hydrogeochemistry of groundwaters near opalite-hosted epithermal hot-spring type mercury deposits in the Ivanhoe mining district, Elko County, Nevada. Local groundwaters generally range from Ca-HCO3 to Ca-Mg-Na-SO4 type waters with background mercury concentrations ranging from 0.014 to 0.32 ug/l. Leaching experiments conducted on mineralized rocks, using typical water chemistries to represent local groundwaters, yield total mercury concentrations ranging from 6.3 ug/l to 27.4 ug/l after one year of reaction. Geochemical modeling indicates dissolved mercury is dominated by HgO(,) and that precipitation of quicksilver controls mercury concentrations to an upper limit of 63 ug/l.

Jan 1, 2000

By Steven J. Schatzel, James Addis, K. Vaibhav Raj, Berk Tulu

The National Institute for Occupational Safety and Health (NIOSH) is conducting research to enhance methane control and mine ventilation practices at coal mines, as a method to mitigate hazardous work conditions. NIOSH researchers conducted case studies to investigate the effectiveness of existing systems and improve performance to decrease the potential for unplanned or excessive methane emissions. At one mine, drainage was influenced by hydrofracking inefficiencies where two of the six wells showed good frack development. Methane content was variable, from 300 ft3/t to 600 ft3/t. This paper also summarizes overburden movement during undermining and the estimated quantities of gas transported to the mine using FLAC3D and CFD modeling. The findings from this research effort highlight considerations based on specific mine conditions that may also be applicable to most longwall mines utilizing methane control systems.

Feb 1, 2025

By Simon D. Strauss

The recession that began in late 1980 has proved to be not only prolonged and severe, but in certain ways unique in its effect on the mineral industries among the periods of economic slowdown experienced in the Western world since the end of World War II. This time almost all minerals have been affected. In previous business turndowns, by contrast, some mineral sectors have with-stood economic adversity well. They experienced little or no adverse effect-thanks either to a strong secular expansion in the markets for their particular product or to specific factors that caused demand to be well maintained. For example, aluminum, molybdenum, and nickel are three metals that enjoyed extraordinary growth in applications during the years 1946-1973. These metals were little affected during the recessions that occurred in that era. Similarly, coal did not suffer a pronounced drop in sales in the 1974-75 turndown because, with the price of oil rising sharply, a switch away from oil and back to coal was clearly indicated for some energy-intensive applications. Oil itself was largely impervious to the ups and downs of the business cycle until very recently. And the precious metals, gold and silver, have often been regarded as benefiting from reduced economic activity because labor becomes more available, productivity rises, and operating costs diminish. In the current recession, however, no major mineral has escaped the broad trend. The secular growth factors that were previously so evident for aluminum, molybdenum, and nickel have disappeared, at least temporarily. The stable pricing behavior that previously characterized all three of these commodities has been replaced by extreme price weakness and apparent inability of the major producers to continue their roles as market leaders. Coal and oil both have suffered from a sharp drop in energy requirements. There are those who now anticipate a collapse of the market control over oil prices so clearly exercised by OPEC since 1973. If oil prices are no longer effectively controlled by the governments of the exporting countries, then coal prices are also certain to be affected. And the combination of high interest rates, tight money, and a change in public perceptions of precious metals put the skid under gold and silver quotations in 1981 and early 1982. Although inflation has been viewed as the scourge of most Western countries ever since the oil crises of 1973-74, prices-in constant dollars-of most minerals have not risen. On the contrary, with the exception of the precious metals and oil, for most minerals the prices that prevailed at the end of 1982 were close to the levels of the Great Depression of the 1930s in constant dollar terms. Table 1 compares prices for copper, lead, zinc, and aluminum at the end of 1982 with the average prices in 1934, stated in constant 1967 dollars. This emphasis on prices for mineral commodities reflects the fact that profits of mining enterprises vary directly with the level of prices. Manufacturing and retailing enterprises march to a different tune. They establish sales prices based on costs. Their profits tend to vary with volume. Commodities are for all practical purposes fungible, that is the advantages of known brands in marketing manufactured goods have little application in a commodity market. Thus the individual seller of minerals is unable to establish his sales prices. Except where a monopoly is present, he must sell at the going market. His option is to abstain from selling if he finds the price unremunerative. In past recessions, some mineral producers chose to do precisely that-either accumulating a substantial share of their output in inventory or, in prolonged downturns, abstaining from production. During the current recession, however, private-sector mining companies did not have the option of accumulating inventories to any great extent. Capital costs for new mineral projects or for expansion of existing facilities have escalated at an alarming rate since the early 1970s. Added to this has been the heavy cost of installing pollution control or safety equipment to comply with the regulations adopted in most industrialized countries (and particularly the United States) since 1968. The consequence has been that the financial position of most major mineral enterprises in mid-1980 was already strained. To finance increased inventories meant incurring additional funded debt at high interest costs, thus impairing the concern&apos;s credit rating. Management Choices Private-sector managements have had to face up to the alternative of either continuing to produce at an unchanged rate and marketing output at unremunerative prices or reducing output. The latter has meant either operating at a curtailed rate, with con-

Jan 3, 1983

By Langtry E. Lynd

The titanium dioxide pigment industry in the United States has always relied to varying degrees on imported titanium concentrates. Dependence on foreign ilmenite was especially high (generally over 85% of consumption) until 1942, when large-scale U.S. production of ilmenite began, and has since ranged from 12% to 47%. Rutile import reliance was generally in the 45% to 80% range until the early 1960&apos;s, when increased use in the chloride pigment process raised dependence on imported rutile to over 90% in most years since 1963. Import reliance of zircon, obtained almost entirely as a byproduct of titanium mineral production, has generally ranged from about 30% to 65% of consumption. This paper will examine the history of U.S. sources of these heavy mineral commodities, and will discuss the potential U.S. future supply in view of changing industrial uses and processes and the anticipated development of new heavy-mineral-sand processing operations, such as those at Richards Bay in the Republic of South Africa and in Sierra Leone.

Jan 1, 1978

By J. Choi

For the first time, the influence of stearyl trimethyl ammonium chloride (STAC) as a collector, on the flotation behavior of lepidolite (Uljin, South Korea) was systematically examined in Denver Sub-A cells. Flotation tests were carried out by varying amount of STAC (50?200 g/ton), feed size (-65, -100, -150, and -200 mesh), and solution pH. The impeller speed of 1000 rpm, flotation time of 10 min and AF-65 (a frother) of 250 mL/ton were invariably applied. In order to complement flotation experiments, zeta potential measurements and XRD analysis were conducted. XRD results showed that the ores were mainly composed of lepidolite, muscovite, quartz, calcite and albite. In addition, zeta potential results showed that isoelectric points were about 2.5, 2.3, and 9.7 for quartz, albite, and calcite, respectively, and lepidolite was determined to be less than 2. Overall, the results of 3-stage flotation showed that Li2O grade and recovery tended to increase with increasing STAC dosage and decreasing feed size. In addition, Li2O grade increased with decreasing pH. The results were explained by the extent of the interaction between STAC and each mineral.

Feb 23, 2014

By J. A. M. Cano

Pot Grate tests were carried out in the pilot plant at Samarco producing pellets containing SiO2 between 2.0% and 2.2% in a wide range of basicity to be used in blast furnace. These pellets were submitted to tests in Samarco&apos;s laboratory and another laboratory in Germany to evaluate the metallurgical properties. The pellets in the binary basicity range (CaO/SiO2) from 0,87 to 0,95 were those that presented the best results in the Pot Grate tests. Based on the results, these pellets are being routinely produced?on industrial-scale confirming the results observed in laboratory tests.?

Jan 1, 1994

By E. Tarshizi

Research was conducted to develop a simulation and animation model for an aggregate (sand and gravel) mine operation. This model can assist the mine engineers to investigate and consider the various options of haulage systems which are critical for the mine operation productivity. Discrete-event system simulation studies can be used for the typical haulage issues that mining engineers are often faced with: using truck fleet haulage, conveyor belts, or a combination of both. The simulation has identified some strengths and weaknesses in the current loading and hauling fleet of the mine, and has resulted in some suggestions for improving the system. The simulation includes animation of the operation. Animation is needed to enhance the benefit of any mine simulation model. By combining the visual power of animation with a mine simulation, a complete picture of the mine system is obtained and displayed. The mine is modeled and animated using GPSS/H® and PROOF Professional®, both of which have shown great applicability in discrete mining simulation projects.

Feb 23, 2014

By T. Dlokweni, A. Z. Toper, A. P. Squelch, R. G. Gürtunca

A collaborative research programme called &apos;DEEPMINE&apos; was established in 1998 to investigate and research the problems of mining below three and five kilometres depths. Backfill is considered as an important support strategy to alleviate rockburst and rockfall problems in current depths and it will even become a more crucial mining strategy at ultra-deep level mining. In this paper, the evaluation and the application of the current backfill design criteria to the ultra-deep level mining environment are studied and a new backfill design criteria is proposed. The new criteria suggests that backfill should still be placed 60 - 70% of the area mined with a maximum fill to face distance of three metres. Furthermore, the vertical stress generated in backfill should be between 2 - 3 MPa at maximum 25 metres from the face at a corresponding strain value of maximum 10%.

Jan 1, 2001

By Changjiang Li, Jun Yang, Qiang Fu, Xu Chang, Xing Wu, Yubing Gao

With the development of underground mining, the deformation of roadway floor has increasingly become a major constraint on the safe and efficient production of coal mines. To address the floor deformation that was caused by massive stress concentration in roadway, an innovative method based on deep-hole directional tensile blasting technology is put forward. By taking No.122108 working face in Caojiatan Coal Mine as engineering background and analyzing the mechanism of deformation, a numerical simulation and field test are carried out to verify the effect on deformation control of this technology. It is found that the deep-hole directional tensile blasting technology can actively control the fracture position of the roof in the gob area and cut off the stress transmission path, so as to relieve the stress in the roadway. And since different blasting parameters have different impacts on the stress relief effect, a numerical simulation is implemented and it is found that the stress relief effect is the best when blasting depth is set to be 32 m and the blasting angle be 60°. By applying the optimal blasting parameters to the field engineering test, it can be seen that the deep-hole directional tensile blasting technology could effectively reduce maximum stress value and stress field range of the both sides of the roadway, and make the stress field far away from the roadway, thus effectively controlling the deformation of the roadway floor. The deep-hole directional tensile blasting technology can effectively solve the problem of roadway floor deformation and can be safely applied to engineering sites.

Jun 13, 2023

By Yi Luo

This paper presents some of the results of a research on long-term subsidence over and near the chain pillar systems -the area available to long-term subsidence in longwall operations. Although the long-term subsidence in most longwall operation is insignificant, it does exist in some cases. For the cases where long-term subsidence is significant, it has been found that the development process can be expressed by an exponential decaying function. The stability factor of the chain pillar system and the potential for long-term subsidence are the two important factors that control the magnitude and development characteristics of the long-term subsidence process.

Jan 1, 1999

By A. Kaina

The San Luis deposit is one of the few documented gold deposits on a detachment surface. This paper presents mineralogic and geochemical data that was gathered to characterize the mineralization, classify the ore deposit, and provide details of the ore forming process. Included are data on the paragenesis; alteration-mineral assemblages major and trace element geochemistry, and fluid inclusions. The San Luis deposit occurs on the western slope of the Sangre de Cristo Mountains adjacent to the San Luis Basin about 5 miles northeast of the town of San Luis in Costillo County, south-central Colorado. Mineralization was discovered in the district in the early 17th century. Production began in 1890 on lead-silver ores from which the district took the name the old name of "El Plomo". From 1897 through 1934 gold was intermittently produced. Battle Mountain Gold Company took an option on the property in 1987 and proved on ore body comprising an eastern block that has 1,277,300 t ore at a grade of 1.68 g/t and a western block of 9,744,000 t with a grade of 1.34 g/t. Production began in 1990. A companion paper by Benson (1994) describes the San Luis district and the ore body, hence the reader is referred to this or Robert and David (1990) for details of the geology from which the following is summarized.

Jan 1, 1994

By A. D. MacPhail

The Highland Valley Copper partnership was formed in July 1986 and was the logical result of a mine with a large ore reserve but no adequate mill, and a mine with a large, modem mill but dwindling ore reserves. The original partners -Cominco and Lornex -were joined in January 1988 by Highmont Mining Co. which contributed a two-line concentrator. During 1988/1989, the Highmont mill was moved 7.5 km to adjoin the Lornex mill, forming what is now called the Highland mill, with a current nominal capacity of 130 000 tonnes per day. The mine is located 220 km northeast of Vancouver, British Columbia and is close to four communities in which personnel make their home: Logan Lake, Merritt, Ashcroft, and Kamloops. The map in Figure 1 2.2 shows the general area. Kamloops is a major service centre and is serviced by two railways, two major roads and a regional airport.

Jan 1, 1993

By Warren E. Morrison

The expansion of the United States economy in the postwar period has had a tremendous impact on the demand for energy. Not only has total energy consumption increased at an unprecedented rate, but there have been major shifts in the composition or mix of energy resources within the end-use sectors. Because of the numerous interrelationships between substitutable energy resources and their markets, the energy economy can only be analyzed in terms of the trends of its component parts. This problem takes on additional complexity when attempting to chart the nation&apos;s future energy requirements. Total energy consumption can be forecast with reasonable accuracy for periods up to 15 years by relating this to projections of economic indicators. However, forecasting the component parts of the energy economy constitutes a dilemma in that the sum of the projected parts frequently exceeds predictions for total energy. Areas of uncertainty in energy forecasting tend to mount rapidly when proceeding from total energy to the consideration of specific energy resources consumed as fuel, power, or raw materials.

Jan 1, 1965