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By Douglas A. Sloan

Who would believe that young elementary school children could understand something as complex as the mining industry? THE CHALLENGE The challenge of accomplishing this is tremendous. An examination of Canadian school children indicated that they knew very little about the world of work in general, and hardly anything about the mineral resource industry in particular. It calls to mind the story about two youngsters who decided to play house. The little girl played her role well as she went about the house doing things she had watched her mother do every day. When it was the little boy's turn, he grabbed his lunch, waved goodbye to his "wife", jumped on his bicycle and pedalled furiously down to the end of the driveway -- where he stopped. The youngster explained that he saw his dad go out of the driveway each morning, but he didn't know where he went, or what he did on the job. When you stop to consider the number of families today with two working parents, you can begin to appreciate the importance of the opportunities for role identity provided by this project.

Jan 1, 1979

By William J. Miles, Raymond E. Blair

Introduction There has been much publicity of the boom and bust in oil and gas well drilling in the US, and many comments on oil and gas gluts. Despite this, the drilling industry remains the largest consumer of functional industrial minerals. The boom years of 1981 and 1982, compared with the bust year of 1983, show a sharp reduction in the consumption of industrial minerals-1981, 7.4Mt (8.2 million st); 1982, 6.3 Mt (7 million st); and 1983, 4.4 Mt (4.9 million st). Industrial mineral use rebounded in 1984 to 4.7 Mt (5.2 million st). This was the second highest year in history in terms of wells drilled and third highest in footage drilled. Table 1 shows the history of drilling activity and mineral consumption from 1971 to 1984. The uses of functional industrial minerals in oil and gas well drilling were detailed by Miles and Blair (ME, 1983, October, pp. 1397-1400). As an update, this article addresses only the changes that have occurred in the industry in the past two-and-a-half years. It will be directed to mineral use and new products introduced to the industry. Drilling practices A partial explanation of where wells are being drilled with lower quantities of minerals consumed is: • In the boom year of 1981, there was a proliferation of number of suppliers chasing the same business. This resulted in multiple sourcing, multiple warehousing, and a huge increase in inventory that became surplus in the following years. The bust year, 1983, caused a severe shakeout in the number of suppliers of minerals and associated drilling fluids. • In 1981 and 1982, the wild speculation in the oil and gas industry led to drilling of speculative deep gas wells. Oil wells were drilled on a wildcat basis - in areas of unproven productivity. • Presently, the oil and gas well drilling industry is very active. But drilling is directed toward proven areas of production and working over old wells for increased production. This means a large number of wells are being drilled with lower average foot-

Jan 11, 1985

By Erle I. Shobert

In the comparison and consideration of synthetic and natural materials, graphites represent a situation in which natural graphites amount to less than 10% of the total carbon and graphite production by weight, and less than 5% in dollar volume, There are few applications where it could not be re- placed by synthetic graphite. On the contrary, synthetic graphite materials can be engineered to cover an extremely wide range of applications. These include electrographite brushes for rotating machinery, pyrolytic graphite, graphite-impervious pipe, nuclear moderators, high purity spectrographic graphite, power tube anodes, graphite rotary shaft seals, and rocket nozzles. The special qualities of natural graphite and its limitations are delineated and the almost unlimited possibilities in artificial graphite materials are discussed.

Jan 1, 1964

By Joseph B. Alberts, David D. DiPonio, Francis B. Manning

From 1996 to 2001, Wayne County and 13 suburban Detroit communities constructed the Downriver Regional Storage and Transport System (DRSTS) to improve area water quality, protect public health and alleviate basement flooding. The project consisted of a 10-mile long storage and transport tunnel, a pump station at the existing wastewater treatment plant, 9 miles of relief sewers (6 in tunnel and 3 in open cut). The work was separated into 10 contracts. Due to hydraulic design requirements and other constraints, the tunnel profile was located generally 65 feet below ground surface within a soft to medium clay strata which skimmed along the top of a very dense glacial till “hardpan” overlaying bedrock. Boulders within the tunnel bore were recognized as a significant, but indeterminate risk. This paper presents a case history of the owner’s contracting strategy for risk assumption and management of the boulder impacts on the project. Actual conditions encountered during construction and contractual adjustments made to address problems are reviewed, and recommendations for future contracts are included.

Jan 1, 2003

Sweden is beginning to reap the rewards of a process that has transformed a country with a history of metal mining into one of Europe's most vibrant exploration regions. Exploration and mining companies from North America, Europe and Australia have joined local firms in the search of gold, base metals and diamonds. This has been due to changes in Sweden's mining laws in the early 1990s. These changes opened the way for unhindered private sector investment in the country's mineral industry. More than 20,000 km2 (4.9 million acres), mainly in northern Sweden, is now held under granted or applied exploration claims. Exploration permits diamonds, applied or granted covers more than half of Sweden's surface. This is a greater proportion of the country than ever before. Major mining companies and junior explorationists are evaluating a geological potential that bears favorable comparison to other major mining centers. Historically, Sweden's gold re- sources occur in greenstone belts in northernmost Sweden and in association with massive sulfide deposits in the Skellefte district. These are receiving particular attention by exploration companies. In addition, new areas in Sweden are also being explored for gold. This increases the probability that Swedish gold production - already the highest in Europe - will increase in the future (Table 1). Sweden's recorded mining history goes back for much of the last large pool of expertise in exploration, mining, equipment manufacturing and minerals industry research. In addition, the Geological Survey of Sweden provides sup- port for exploration in terms of data archives, processing and publications. Other benefits for exploration companies are Sweden's communications infrastructure, its member- ship in the European Union, bringing access to one of the world's major markets and the high level of educational, technical and language skills held by the country's work- force. And deregulation of the economy and the introduction of competitive corporate tax rates have made Sweden a favorable destination for investment in Europe.

Jan 1, 1997

By J. R. Parga

Bacís mining is a young enterprise in Mexico that produces a pyrite concentrate rich in gold and silver. When gold and silver are associated to sulfide minerals, pre-treament such as: roasting, pressure oxidation and bioleching, is required to decompose the sulphides and thereby expose the gold and silver particles to the cyanide solution. A novel method demonstrates that the oxidation and dissolution of gold and silver in alka-line cyanide solution can be conducted simultaneously in the same autoclave in less than 90 minutes with a recovery that exceeds 96%. Factors affecting recovery efficiency such as pH, leaching time in the reactor, temperature, particle diameter, pressure, % of NaCN and pulp density were investigated.

Jan 1, 2007

By Gregg Sherry, Bob Gordan

INTRODUCTION This paper report presents the general case history for the construction of the North Outfall Replacement Sewer (NORS) project. A 1982 City of Los Angeles Wastewater Facilities Plan recognized that a 19.3 km (12¬mile) section of the North Outfall Sewer (NOS), from Culver City to the Hyperion Treatment Plant, was deteriorating and had insufficient capacity. Built in the 1920s of unreinforced concrete and lined with vitreous clay tiles, the originally unventilated NOS suffered considerable corrosion by H2S gas. This caused roof tile and concrete to fall to the bottom of the pipe, which, over the years, reduced the 11.9 M3/S (420 cubic feet per second (cfs)) design capacity of the NOS to a current level of approximately 8.5 M3/S (300 cfs). This worsening condition, thereby contributing to the polluting of Santa Monica Bay. This situation culminated in the State of California Regional Water Quality Control Board, Los Angeles Region, issuing a Cease and Desist Order on January 27, 1986, which required the City of Los Angeles to eliminate such dry weather overflows through a number of prescribed actions. One of these was to construct the North Outfall Replacement Sewer (NORS) by April 1, 1993. PROJECT DESCRIPTION The NORS Project involved the construction of over eight miles of tunnel and related structures. It consisted of a main tunnel conduit to convey sewage to the Hyperion Treatment Plant and four diversion lines connecting the main tunnel to major existing

Jan 1, 1993

By Raja V. Ramani

The importance of adequate mine ventilation for good health and safety conditions has been recognized since miners first ventured underground. All over the world, governmental actions on mine health and safety are directly connected with mine atmospheric environments, their assessment and control. These governmental actions have been, and continue to be, motivated by the repeated experience that potential threats from inadequate control can evolve, either suddenly or in the long-term, into unpleasant reality, with catastrophic health and safety consequences. These governmental actions are also an indication of the remarkable professional progress being made in the field of mine ventilation. Surely, no developed country allows underground mines to operate without strong measures for the control of ventilation under legislation specific to the mining industry. In the United States, the federal government's responsibility for mine safety has evolved over the years through a series of legislative actions beginning in 1865 and continuing through 1910, 1941, 1947 and 1952. The passage of the Federal Metal and Nonmetallic Mine Safety Act of 1966 (the 1966 Metal Act), the Federal Coal Mine Health and Safety Act of 1969 (the 1969 Coal Act) and the Federal Mine Safety and Health Amendments Act of 1977 (the 1977 Mine Act) are the most important milestones in this long legislative history. The 1977 Mine Act adopted many of the stronger features of the Occupational Health and Safety Act of 1970, perhaps the most significant piece of legislation on workers' occupational health and safety in US history. It is worthwhile to ask, "How far has the United States come in mine ventilation since the enactment of the 1969 Coal Mine Health and Safety Act?" This Act and its associated regulations defined in great specificity many standards for healthful and safe operation of a mine and, in some cases, what constitutes good ventilation practice. Since 1969, the frequency and severity of disaster-type events in US coal mines has decreased markedly. A primary reason for this achievement is the strength of the Coal Mine Health and Safety Act's regulatory features in such areas as methane concentration control, dust control, intrinsic safety and explosion-proof enclosures, minimum air quantity and quality standards and air distribution and escapeway provisions. These requirements greatly influenced mine ventilation planning, engineering and practice, leading to increasingly safe working conditions.

Jan 1, 1993

By Ben Ainsworth

I am going to discuss gold mining in Mexico during the last twenty centuries and try to suggest some of the futures that may develop in this industry in the next decade. Before I start this rapid review of such a long developing mining tradition, T must give credit to my sources. I an, talking here as an associate of Commoditi,c,s Reseflrch Unit Ltd. of London (better known as CRU) and as a principal of Ainsworth-Jenkins Holdings, an international mineral resource consultant group that has been exploring and deveJoping mining properties in Mexico and Central America for the last six years. CRU is the leading consultancy providing industry, governments and financial institu­tions with analysis and advice on the metals and the mining industries. They recently completed a three volume study entitled Gold Mining Opportunities in Mexico. This .<1tudy describes Mexico, the business environment, its geology and details its gold mining potential with property descriptions and maps. I have adopted and adapted the s11mmari.zed Mexican government statistics and rlrawn on some of the historical comments in these volumes. However, I do not have ti me (nor would it be appropriate) to be giving the details of the CRU work. Jorge Ordonez, whose shoes I am trying to fill today, was a major contributor to the study and it was an honour to be asked by Willem Beunderman, the Principal Editor, to step in when Jorge was unfortunately unable to be here. Jorge has been an enormous help to Ainsworth­Jenkins and a consistent friend of foreign investment in Mexico. Our own work in Mexico has allowed us to obtain a few useful in­sights into this most interesting slice 0f Mexican history.

Jan 1, 1992

By T. O. Price

In 1969 Holosonics designed and developed a portable system for conducting acoustical surveys in metal mines, with lead-silver veins as the principal targets. Recently this system has been proven useful in describing rock structures for advance geologic information in civil engineering application and underground construction applications. This paper discusses a case history of acoustical surveying from a series of pilot drill holes in an advancing tunnel. In acoustical surveying a pulsed acoustic signal is used to generate reflected signals from the rock formation. Arrival time, amplitude and phase of the returned signals can be determined. These data became the basis for a signal correlation program designed to relate the signals to their respected pseudo-planar reflecting interfaces. An application of acoustical surveying has recently been conducted in a portion of the excavation for the Washington Metro Area Transit Subway. The data results and conclusions of the program are discussed in the paper. Acoustical surveying was successful in predicting the occurrence of major jointing and foliation plane shearing ahead of the tunnel advancement.

Jan 1, 1974

By V 9. 0 / 300 dpi

Papua New Guinea (PNG) stretches from the equator to Latitude 12° South and from Indonesia&apos;s Irian Jaya Province in the west to the Solomon Islands in the east (Figure 1). The population totals 3.5 million people who are mostly concentrated in highland valleys on the main island and around the coast. This paper outlines the history of mining, describes the natural, cultural and regulatory setting of mineral discoveries and highlights, by example, some of the more idiosyncratic environ-mental aspects of mining developments in PNG. It concludes with remarks on the progress made in the fifteen years since environmental matters entered the agenda for the establishment of a new mine in PNG.

Jan 1, 1988

By Carl G. Schwenk

Rusk County is located in the northwestern portion of the state of Wisconsin, roughly 130 miles east of Minneapolis (Figure 1). The topography is generally flat with dairy farming the principal activity. Forest and swamp lands are common, as well as pasture and cultivated ground. Rusk County falls near the southern terminus of the Precambrian Shield and is covered by a thick layer of glacial drift. Outcrops are quite rare, but the few available exposures indicate that the subsurface is comprised of steeply dipping metamorphosed volcanics and sediments of Early Proterozoic age. A thin section of flatlying Cambrian sandstone is sometimes found directly under the glacial till. The depth to Precambrian basement has been recorded to be as great as 150 feet beneath the surface.

Jan 1, 1976

By S. Aktas

The present work describes an investigation of a hydrometallurgical process for the recovery of mercury from spent silver oxide button cells. The cell paste was leached in nitric acid to solubilize silver, mercury and zinc. The optimum leaching conditions, in which mercury is entirely converted to Hg2+ ions and, therefore, does not coprecipitate with silver chloride during treatment with potassium chloride solution, were 1.0 M HNO3, 45° C, 1 hour and 200 rpm. After the silver was removed from the solution, mercury was cemented out with zinc powder with an efficiency greater than 99%. In the cementation experiments, the amount of zinc powder, shaking rate, temperature and solution pH were investigated in detail. The mercury recovery (%) increased as the amounts of zinc powder and the temperature were increased. Zinc hydroxide was precipitated from the waste solution by the addition of sodium hydroxide. The Zn(OH)2 precipitate was then converted to zinc oxide. The proposed process is proven to be simple, straightforward and environmentally friendly.

Nov 1, 2011

By S. Aktas

The present work describes an investigation of a hydrometallurgical process for the recovery of mercury from spent silver oxide button cells. The cell paste was leached in nitric acid to solubilize silver, mercury and zinc. The optimum leaching conditions, in which mercury is entirely converted to Hg2+ ions and, therefore, does not co-precipitate with silver chloride during treatment with potassium chloride solution, were 1.0 M HNO3, 45° C, 1 hour and 200 rpm. After the silver was removed from the solution, mercury was cemented out with zinc powder with an efficiency greater than 99%. In the cementation experiments, the amount of zinc powder, shaking rate, temperature and solution pH were investigated in detail. The mercury recovery (%) increased as the amounts of zinc powder and the temperature were increased. Zinc hydroxide was precipitated from the waste solution by the addition of sodium hydroxide. The Zn(OH)2 precipitate was then converted to zinc oxide. The proposed process is proven to be simple, straightforward and environmentally friendly.

Jan 1, 2011

By Roger L. Hulette

Mt. Newman Mining Co. is now completing an expansion program, begun even before initial construction was complete, which will result in facilities with the ability to ship over 30 million tons of iron ore per year by early 1973. Confidence in such rapid future growth was evidenced by careful planning for the future expansion of those facilities provided for initial operation of the project which first shipped ore on 1 April 1969. Ore sales contracts totaling more than 300 million tons have been negotiated, thus justifying the optimism which led the joint venturers to provide over $200 million in initial investment and a like amount in capital required to finance the continuing expansion program. Members of the Mt. Newman Joint Venture are: Amax Iron Ore Corporation - 25% (a subsidiary of American Metals Climax) Pilbara Iron Ltd. - 30% (a subsidiary of Colonial Sugar Refining) Dampier Mining Ltd. - 30% (a subsidiary of Broken Hill Proprietary) Seltrust Iron Ore Ltd. - 5% (a subsidiary of Selection Trust Ltd. of London) ? Mitsui C. Itoh Iron Ore Pty. Ltd. - 10% Mt. Newman Mining Co. Pty. Ltd. manages the project on behalf of the five companies which make up the joint venture.

Jan 1, 1972

By Joseph Kurtak

When prospectors discovered mineralized outcrops in Pine Creek Canyon in 1916, little did they know the site was destined to become one of the world&apos;s greatest tungsten mines. Located outside Bishop in California&apos;s rugged Sierra Nevada mountain range, the mine&apos;s development imposed unique challenges to the hardiest of mining men. In its early years, the Pine Creek operation was plagued by bad luck and poor timing. But through the perseverance of a dynamic group of mining personalities, it would gain world class status. Pine Creek tungsten supplied much of the defense needs of the United States during World War II and put the Bishop area on the map as a major contributor to the nation&apos;s stockpile of strategic metals. The mine&apos;s history was shaped by world politics, the ups and downs of metals demand and economic survival through technological innovations. In contrast to many mines, Pine Creek&apos;s workings went horizontally into and then up inside the mountains - nearly to the ridgetops. This resulted in the name "Mine in the Sky" being attached to the operation. The origin of Pine Creek&apos;s ore bodies is related to the emplacement of a portion of the Sierra Nevada batholith about 100 million years ago. During the intrusive process, granitic magmas engulfed overlying calcareous sedimentary rocks, flooding them with silica-rich hydrothermal fluids and metamorphosing them to skarn. The fluids also contained tungsten, molybdenum and copper. They precipitated as scheelite, molybdenite and chalcopyrite, respectively, during the metamorphic process. The ore-bearing skarns occur as near-vertical tabular pendants in the intrusive rocks. These were later exposed by the uplift of the Sierra Nevada mountain range and glacial erosion.

Jan 1, 1998

By John J. Reed

The 1945 fire at the Braden (El Teniente) Copper Mine in Chile took 354 lives, and ranks as the most lethal metal mine fire in history. The mine was developed in the wall of a canyon over 900 m (3,000 ft) deep. Principal entrance was through a main haulage adit at the canyon bottom, and up through two internal shafts. Mining was by block caving from the top of the orebody with most of about 900 men on shift working in three production areas. Ore was transferred by gravity to the haulage level through a complex system of ore passes with associated ladderways. Normal mine ventilation was incast through numerous level portals and up- cast through the shafts and raises. The fire was confined to a maintenance shop just inside the portal of the lower production level. Smoke, gases and flammable vapors were drawn into the mine, and a subsequent explosion of the gases destroyed an air door and injected carbon monoxide into the workings. Falling water in a drainage raise near the fire made it downcast, which carried gases down to all the lower levels where they were drawn into the levels and then up connecting raises. Miners attempting to escape by climbing down the ladderways from the production levels were met and killed by the rising gases.

Jan 1, 1989

By S. K. Mishra

Introduction The history of the Australian coal industry is almost as old as the history of Australia after new settlement. The first cargo of coal was exported from Newcastle to India in 1799. Coal has been mined in Australia for almost two centuries. But there are indications that the first coal was processed in 1877 in the Newcastle area. This is nearly 50 years after the first coal processing in Europe. Processing on any significant scale began in 1944 at the Newcastle Steel Works. In Queensland, however, coal processing did not begin until the second quarter of this century. The dramatic growth of mining and processing of Australian coal since the mid-60s is primarily due to the expansion of the export market in Japan, Asia, and Europe. Australian coals Black coal occurs in most of the major sedimentary basins of Australia. The better known deposits of commercial importance are in the Sydney, Bowen, Oakland, and Gailiee Basins. Apart from the Collie Basin in western Australia, other coal deposits of the Arckinga Basin in South Australia, the Bonaparte Basin in Northern Territory, and the Tasmania Basin are basically unexploited. The Sydney Basin of New South Wales and Bowen Basin of Queensland remain the major producers of black coal in Australia. Currently exploited or potentially commercial deposits of black coal in Australia occur in strata ranging in age from Permian to Tertiary. Estimated black coal reserves are summarized in Table 1. Coals from different ages have significant differences in their petrographic characteristics. Many of the Permian coals are usually rich in inertinite. Jurassic and Tertiary coals are typically rich in vitrinite content. Typical petrographic and chemical characteristics of some important Australian coking coals are summarized in Tables 2 and 3. The reserves of coking coals are restricted in the main to the Permian coals of the Sydney and Bowen Basins. Coal deposits in the latter are at shallow depth. A high percentage of these are being strip-mined. On the other hand, in the Sydney Basin, the majority of the reserves of good quality coking coals are at significant depth. The mining cost of these deposits is substantially higher than those in the Bowen Basin. It is usually possible to make strong coke with Australian Permian coals of vitrinite content much lower than the other international coals. But there are many major Permian deposits in Australia where low vitrinite content presents problems. As they are classified as marginal coking coals, optimization of their pro¬cessing plays an important role in meeting the market specifications of coking coal. The major reason for processing Australian coal is to reduce the ash content. Compared with British and some American coals, Australian coals are of relatively high ash content. Unlike American coals, more than 99% of the Australian coal deposits have sulfur content less than 1%. Consequently, sulfur control has never been a major problem. The coking quality of coal is improved simply through the ash reduction in the marketable product. However, with the increase in intensive mechanization and multi-stage handling of coal be-

Jan 9, 1985

By Dale R. Ralston, Roy E. Williams, Gerry V. Winter, George L. Bloomsburg

Ground water inflow into a mine and the re¬sultant impact on district hydrology can be pre¬dicted on a site specific basis once the ground water flow systems at the site are sufficiently well under¬stood so that a valid conceptual model can be de¬veloped. Ground water flow systems are controlled by the hydrogeologic properties of the materials at the, site, including hydraulic continuity along flow paths, and boundary conditions. Preliminary delin¬eation of hydrostratigraphic units for conceptual models frequently can be based on surface water data; specifically, spring locations and the gain-loss reaches of streams. Quantitative predictions of mine water inflow and its impact on regional hydrology require col¬lection and analysis of numerous types of data. Hydraulic conductivity must be defined quantita¬tively both parallel and perpendicular to bedding as well as areally for each hydrostratigraphic unit. The characteristics of the Davis shale in case his¬tory number 2 illustrate this concept very well. The storage characteristics also must be determined for each hydrostratigraphic unit and the potential or hydrostatic head should be quantified vertically and areally for each unit. The potentiometric measure¬ments in the Bonneterre Formation as discussed in case history number 2 illustrate this point. The data collection and data analysis techniques constitute the weak link in the analysis of mine inflow and district impact. The technology for char¬acterizing a mine site in the field has lagged behind the technology for mathematical simulation; we at¬tribute this development to the fact that computer modeling is relatively inexpensive compared to field data collection and analysis. On-site tests provide the best means of quan¬tifying hydraulic conductivity parallel to bedding and the storage characteristics of the unit. Pump tests with multiple observation wells provide the best information from on site tests. Hydrogeologie boundaries can be located from such multiple well tests. Multiport piezometers provide a means for determining the vertical potential in a single borehole. Borehole geophysics can facilitate the def¬inition of hydrostratigraphic units. Vertical hy¬draulic conductivity is difficult but not impossible to quantify with existing field test methods; labo¬ratory tests of cores fail to give a value represent¬ative of the field situation. The storage characteristics of a confined (artesian) hydro¬stratigraphic unit can be difficult to quantify when pumping changes the confined unit to an uncon¬fined (water table) case after depressurization and dewatering. Transmissivity and storage coefficient can be approximated to some extent for given field con¬ditions by computer modeling if enough is known about hydrogeologic boundaries. Modeling can be used in a trial-and-error approach to match transmissivity and storage coefficients to existing water level data corresponding to estimated discharge rates. A solution can also be obtained using a tech¬nique referred to as the inverse method. Unfortu¬nately, such a solution is seldom unique. Fracture flow models exist but practicality usu¬ally necessitates reversion to a basic Darcy flow model. Data requirements for fracture flow models could be difficult to fulfill where fracture aperture, spacing, orientation, and length are required. Ob¬taining such data at depth prior to mining would be impossible for any mine simulation in fractured media. We are of the opinion that most fractured media simulations can be accomplished using con¬ventional Darcy flow models by viewing the field problem on a macroscopic scale. The real challenge is to delineate hydrostratigraphic units properly in the field. The question of whether a broken-up fault zone is an aquifer or a barrier boundary is seldom simple. The fractures usually can be treated as an equivalent porous medium in either case. Only a few techniques exist for predicting un¬derground mine water inflow. These techniques fre¬quently are designed to evaluate shaft or tunnel inflow under steady-state head conditions in a sin¬gle layer rather than in multiple hydrostratigraphic units. Few computer programs exist that have the

Jan 1, 1986

By Thomas J. Neil, O&apos

Most analysts find that progress has been evolutionary in any technologic field. To be sure, a few discrete breakthroughs can usually be identified, but viewed in its entirety, the curve of technologic progress over time tends to be relatively smooth with few discontinuities. Even in those cases where a major scientific discovery is achieved, the rate of technologic progress is limited by the often surprisingly slow rate of commercializing the concept into usable products. Whereas discovery and invention tend to be discrete events, technical innovation is often a painfully slow process. In spite of overall gradual change, technologic progress in most fields, when viewed in retrospect, tends to reveal certain relatively homogeneous periods where little change is evident, separated by episodes of accelerated progress. Thus, open-pit mining over the past century has changed from predominately train haulage to truck haulage and is now experiencing a major increase in belt haulage. Ore reserve estimation is another field that fits the same pattern, and the history of mine evaluation lends itself to a similar analysis. Evaluating mine investment opportunities is a fascinating aspect of mining. The unique set of risks inherent to every mining project is particularly intriguing. Geologic risks are most obvious, since faulty ore grade and tonnage estimates are among the leading causes of mine failures. Wide swine&apos;s in mineral commodity prices are usually cited as another major risk in mining. Because any ore deposit is a finite resource and the miner has limited discretion in selecting a mining sequence, mines are generally at the mercy of notoriously fickle commodity markets. There is a tendency for many mine investment analysts to feel that mineral market uncertainties are unprecedented in severity. Of course, prices in other markets rise and fall also-in some cases as precipitously as with minerals. However, two other mining characteristics tend to compound this marketing risk. First, the preproduction development period for a new mine is characteristically long. Under extremely favorable conditions, a significant mine may be developed in as little as two years, but the norm is four to six years or more. Second, mining is among the most capital intensive industries, consistently ranking near the top among all industrial sectors in assets per employee, and near the bottom in annual sales dollars per dollar of assets. Thus, mine investors typically have large sums invested for a long time before the outcome of the venture is determined by notoriously unpredictable markets. This is not a business for the faint of heart, and the importance of sound investment decision making is obvious. The high risk and technical complexity of mining operations have combined to require greater attention to financial evaluation by mining engineers than by most engineers in other specialties. Nearly all early mining engineering textbooks dealt with problems in mine valuation in a detailed manner; and, today, the sophistication of capital investment analysis is high in the mineral industries. Traditional Mine Valuation Methods Although some evaluation process has no doubt accompanied nearly every mine development throughout history, a formalized quantitative approach first emerged in the last half of the 19th century with the establishment of academic programs in mining engineering. The philosophy and approach to mine valuation that evolved at this time were, with periodic minor refinements, considered the standard for nearly a century. Only after 1960 did major changes begin to occur. The traditional approach to mine valuation reflected the investment community&apos;s historic attitudes toward risk. Mines were generally considered too risky for debt financing, and virtually every new mine was financed from internally generated funds or new equity subscriptions. The investment evaluation methods that evolved focused on mining&apos;s higher risk relative to other

Jan 11, 1982