Search Documents

By Kugan Kuganathan

Pastefill is being increasingly considered as a viable fill by underground mine operators. Mount Isa Mines (MIM) chose pastefill to fill their deep copper mine (>1200m deep) after considering various other types of fill in the feasibility studies. During the development of pastefill at Mount Isa (1996 - to date) the Mining research of MIM developed two cost effective, reliable and simple testing methods and used. With the help of these tests the behaviour of MIM pastefill was studied thoroughly and the most optimum mix design for pastefill was achieved. The MIM's pastefill plant, the largest in the world with a capacity of 450rph continuous pastefill production and unique in the process used, has been built (1998-1999) to produce pastefill to the specification developed through extensive testing program using the Flow Cone and Mini Slump cone Tests. As a consequence, it is now possible to select the optimum pastefill mix designs and predict their flow behaviour in bore holes or pipe lines using only these tests. MIM Blended Tailings Pastefill (BTPF) uses 3-3.55 Portland cement and the cost of pastefill is much lower than the total tailings pastefill, that could be produced from the same tailings.

Jan 1, 2001

By James M. Johnson, David Landriault, Frank Palkovits

The term “Paste Technology” was first used in the late 1980’s. It was used to describe a high fines (15 wt% or greater minus 20 microns), low water content backfill material that could be transported underground through a borehole/pipeline distribution system (4” to 8” dia.) at a yield stress similar to fresh concrete (100 to 400 centipoise). This “Paste Backfill”, unlike slurry transported backfills does not segregate into separate solid and liquid phases at low pipeline transport velocities or upon disposal into the underground stope. Paste backfills can consist solely of fine material, or can include fines plus sand and aggregate similar to a concrete mix. Pipeline transport of paste requires that sufficient fine material (minus 20 micron content) is contained within the mix to lubricate the pipeline walls to create a plug flow condition. For concrete, the fine material is supplied through the cement addition to achieve high compressive strength. For paste, the fine material is generally available in large quantities in the form of mill tailings. The paste tailings can be transported underground for use as backfill or discharged on the surface in a tailings management facility (TMF). This natural abundance of fine grained material is not exclusive to mine tailings but is common to many waste streams in many different industries. This makes the disposal of many waste materials very amenable to paste pipeline transport and placement as a non-segregating slurry. The potential use of paste technology for a wider group of waste materials was realized by these authors and others over two decades ago. Through the effort of this small group the use of paste technology has expanded over the years to become recognized as a low cost, environmentally superior, and technologically controllable method of transporting and placing specific material waste streams with a low water content and high placement density. The high yield stress nature of a paste also lends itself well to the blending of one or more coarse waste materials into the fine waste material paste stream. This allows all the waste materials to be transported by pipeline, increases their placement density; decreases the supernatant release/treatment, reduces contaminant mobilization, hydraulic conductivity and oxygen/water reactivity through encapsulation in the paste matrix. The following paper describes the present state-of-the-art use of paste technology in the world today. It also describes future uses of the technology that are under development and speculates on the overall use of the technology for waste management in the future.

Jan 1, 2005

By Michael J. Hannan, Thomas F. Torries

The nature of industry structure is examined and the structure of the aluminum, copper, lead and zinc industries are described by the use of factor analysis. Capacity is defined and the relationship between industry structure and capacity utilization is examined. It is demonstrated that excess capacity is possible in industries with competitive or monopolistic characteristics, but the effects of the overcapacity are vastly different in the two cases. In a competitive industry, cycles of overcapacity with attendant fluctuating prices are expected. A change in industry structure from monopolistic to competitive characteristics over time causes profits and economic rents to be transferred from the producer to consumers of the mineral.

Jan 1, 1989

By William A. Vogely, John E. Tilton

INTRODUCTION Mineral commodities are normally separated into three generic classes-metals, nonmetals, and energy minerals including oil and gas as well as the solid fuels. Metals, the focus of this chapter, encompass a large number of different substances. The U.S. Bureau of Mines, for in- stance, has commodity specialists following trends in over 40 metal products of importance to the country's economy and well being. Ranging from aluminum to zirconium, the metals display an incredible degree of diversity. Some such as lead are heavy, others such as magnesium are light. Some such as copper are good conductors of electricity. Others such as silicon are semiconductors. Mercury is found in liquid form, while some metals melt only when heated to extremely high temperatures. Iron and steel, aluminum, and copper are consumed in particularly large tonnages in a multitude of end uses, while many minor metals are needed in only small amounts in a few highly specialized applications. The use of some metals can be traced back into history for millennia, indeed back to the bronze and iron ages, while the commercial consumption of aluminum and other newer metals is less than a hundred years old. Some metals are extracted from large open pits, others are dug out of deep underground mines, and still others are processed from the sea. Mining and processing can be relatively uncomplicated and inexpensive, though in most instances highly sophisticated technology is necessary and the costs are high. Some metals are produced mainly as byproducts of other metals. Some are recovered in large quantities from the scrap of obsolete equipment and demolished buildings. Some are mined in only a few locations and traded worldwide, others are produced in many different countries. Some are sold by numerous firms at fluctuating prices determined on competitive commodity exchanges, others are produced by only a handful of firms and sold at stable producer-prices. This diversity makes the metals interesting, indeed fascinating, to study. Yet, it also poses problems, for each metal in its own way is unique. There is no general model or economic analysis applicable to all metals. Rather each must be considered individually, so that the analysis or model takes explicit account of its particular features. This means that a single chapter cannot begin to cover comprehensively the economics of all metals, and no attempt to do so is made here. Instead, we will concentrate on illustrating the usefulness of relatively simple economic principles, particularly those associated with supply and demand analysis, in understanding the behavior of metal markets. The next section begins by exploring the nature of metal demand. It is followed by an investigation of metal supply- from individual product production, from by- product and coproduct production, and from secondary production. The final section then illustrates the usefulness of the concepts introduced in earlier sections by using them to analyze

Jan 1, 1985

By Panlop Huttagosol

The use of computer models to design ultimate pit limit of an open pit mine during its feasibility study has become an emphasized procedure in mining. It is a normal practice in open pit mine design to generate the most profitable final pit limit. The limitations of designing this optimal pit limit have been the requirement of significant computing efforts as well as the use of complicated operations research techniques. In an attempt to describe a computer method that has an easy conceptualization and is able to provide a precise and desirable solution, a new technique is developed. The ultimate pit limit problem is formulated as a large scale transportation problem. The formulation is based on the use of a three dimensional block model to represent an ore body and surrounding materials. The solution technique is developed through solving the dual system of the formulated problem by using the adapted simplex algorithm of linear programming. The implementation on given case studies demonstrates that the new method is capable of providing an optimum pit value. The computing effort required by the algorithm is still the main constraint in solving a large scale problem. The technique provides open pit mine planners with an alternative tool in using a commercial linear programming software which is capable of solving a general transportation problem. The selected software must be able to handle a large scale problem, and it needs an additional effort td formulate the problem and transform a result into the ultimate pit limit solution.

Jan 1, 1992

By Robert A. Cortese, Carrie E. Lucci

Mine Safety and Health Administration (MSHA) regulations require underground coal mine operators to dust their mine corridors with an inert material to prevent coal dust explosions. The most commonly used material is pulverized limestone. Current practice to determine compliance with MSHA regulations requires the coal mine foreman or an MSHA inspector to collect samples of the deposited dust, a mixture of coal dust and limestone rock dust, for above ground laboratory analysis. To expedite this process, the U.S. Bureau of Mines has developed two instruments to facilitate the inspection and rock dusting processes, the explosibility meter and float dust deposition meter. The explosibility meter is a hand-held instrument which provides an in situ measurement of the explosible nature of homogeneous mine dust samples. The float dust deposition meter measures the mass loading density of the top layer of coal or limestone dust deposited on the mine floor during mining operations by the ventilation air. It may also be used to automate trickle rock dusting equipment. The operation of each device is based on the difference in the optical reflectance between the light limestone dust and the dark coal dust. The principal of the explosibility meter is based on the observation that, for a fixed coal volatility, the optical reflectance of dust mixtures is relatively constant at the limit of flammability, and independent of the coal dust particle size.

Jan 1, 1995

By Clayton J. Parr, Northcutt Ely

Mining law is essentially a branch of the law of real property. It concerns acquisition of property for extracting contained minerals, and the rights, privileges and duties that fall upon the holder thereof once the rights are acquired Accordingly, this section focuses on the procedures to be followed in acquiring state. federal and private lands, and defines briefly the nature of the rights obtained. The mining laws of Canada and Mexico are summarized, and the related subjects of minerals taxation and governmental regulation are discussed briefly. This section is not intended to be the basis for legal decisions. Rather, its purpose is to provide the engineer with an understanding of basic principles and procedures. For a detailed treatise of mining law, reference can be made to The American Law o] Mining, a five-volume set edited by the Rocky Mountain Mineral Law Foundation. The law changes constantly, especially that based on federal and state statutes, and the reader is cautioned to be alert for subsequent modifications of statutes, regulations and case law. 2.1-PRELIMINARY LAND-STATUS CHECK Often, after completion of area reconnaissance, or perhaps after receipt of a submittal, a specific more localized target area will become of interest. Usually, an intensive exploration program comprising detailed surface mapping, sampling, geophysical prospecting and drilling will be required before the mineral potential of the ground can be properly evaluated. Before an investment of this magnitude is made, however, it is advisable to obtain rights to mine ore from the property. Otherwise, knowledge of the exploration activity might greatly inflate land values, or speculators or competing mining concerns might step in. Hence, as a general rule, a land-acquisition program should be undertaken before an intensive exploration project is begun. The first step in such a program is to make a land-status check to determine whether the subject lands are available and, if so, from whom they can be obtained and by what means. 2.1.1-BUREAU OF LAND MANAGEMENT RECORDS In those states which contain large areas of federal land, basically (he western states, the primary informational source is the records of the Bureau of Land Management. These may t)e examined at the land office having jurisdiction over federal lands in the area of interest. The records for Montana and North and South Dakota are kept at the Billings (Mont ) land office; Wyoming, Nebraska and Kansas, Cliejenne, Wyo.; New Mexico, Oklahoma and Texas, Santa Fe, N M ; northern Alaska, Fairbanks, and southern, Anchorage; Utah, Salt Lake City; Nevada, Reno; Arizona, Phoenix; Colorado, Denver. There are two land offices in California, at Sacramento and Los Angeles Records for other states are kept in Washington, D C. at the office of the Director, Bureau of Land Management.

Jan 1, 1973

By T. E. Masoner

The struggle to get the minerals industry seriously interested in high intensity wet magnetic separation* has been difficult. The high capital cost of the equipment, the lack of basic research, the lack of operating information, and the diverse characteristics associated with different minerals and ores have prevented the development and use of HIMS-W on a wide scale. The Climax Molybdenum Company, a Division of American Metal Climax, Inc., located at Climax, Colorado, was among the first companies in the Americas in recent years to support the development of HIMS-W to recover weakly magnetic minerals on a large scale. The Climax Molybdenum Company, one of the world's largest underground mines, processes about 40,000 tons per day of ore, from which about fifty million pounds of molybdenum disulfide are produced each year. By-products include tungsten, iron pyrite, tin, and some monazite.

Jan 1, 1968

By R. N. Chakravorty

Spontaneous combustion presents a very serious hazard to both safety and economics of mining operations. Notwithstanding considerable research that has been done over the years to present and control spontaneous combustion the risk still exists. Consequently, this problem poses a major challenge to mine safety researchers; new and improved techniques are constantly being developed to deal with this major hazard. This paper reviews the current practices to prevent and control spontaneous combustion in coal mine operations highlighting new developments in this area. Research and development work presently being carried out in Canada to' deal with this problem is also discussed which includes monitoring, inertization and application of biotechnology.

Jan 1, 1988

By Robert J. Mac Kinnon

A moving grid finite element model for the analysis of transients in a rock mass surrounding an underground coal conversion cavity is presented. Major model components are outlined, including a special element formulated to account for internal discontinuities. A numerical example is described.

Jan 1, 1986

By Justin Brown, Michael Kobler, Dave Ragland, Bob Shufflebotham

PROJECT OVERVIEW As the sun-bronzed San Diego students strolled casually to class, mining crews from Atkinson Construction were working only 9 meters below the surface. The330 meter long, 11.3 meter diameter squat ellipse NATM tunnel is part of the9.3 kilometer Mission Valley East Extension Light Rail Transit (MVE-LRT) being constructed for the San Diego Metropolitan Transit Development Board (MTDB). The SDSU segment of the MVE-LRT was awarded to the Clark Construction Group, the parent company of Atkinson Construction for $82.7 million. URS CORP was the prime designer and Hatch Mott MacDonald performed the NATM tunnel design. The construction managers were Washington Infrastructure Services with Underground Construction Managers, EPC Consultants, and ILF Consultants. A NATM tunnel design was chosen as the most cost-effective way to minimize disruption of the university activities. The tunnel passes close to several buildings and directly below access roads, tennis courts and a baseball field. The NATM method of conventional mining uses shotcrete for ground support often reinforced with steel orplastic fibers, welded wire mesh and lattice girders. The tunnel runs from a cut and cover box up a 4.2% grade in a 217 meter radius left-hand curve with several spirals and ends at the underground station 330 meters away. The depth of cover varies from 16 meters near the west portal to nine meters at the station. The design called for a two-pass system with a primary lining of 300 mm shotcrete with lattice girders at 1 m centers and two layers of welded wire mesh. The lattice girders are used primarily for profile control and are not considered a structural element. The top heading was designed to be excavated in one of three excavation sequences depending on ground conditions and depth of cover. In sequence one excavation, the top heading is excavated in two halves with a one-meter separation. In sequence two excavation, a side gallery is advanced 8 or more meters ahead of the

Jan 1, 2003

By Carl Erickson, James Hislop

INTRODUCTION As practiced today, longwall mining is a mechanical version of an established mining system. The equipment for longwall mining consists of four basic units: roof supports, face conveyor, winning or mineral-getting ma¬chine, and stage-loader conveyor. The system mines relatively thin slices of mineral across a predetermined face length in a virtually continuous sequence. As the winning machine cuts, the mineral is loaded automatically onto the face conveyor. In turn, the face conveyor is pushed over into the newly cut track by hydraulic rams attached to the conveyor and the roof supports. The roof supports then are lowered individu¬ally from the roof, advanced to the repositioned con¬veyor, and reset to the roof. At the end of the pass, the longwall cutter is pushed over, and a slice is taken in the opposite direction, so the system repeats itself. Fig. I illustrates a typical longwall mining system. The principle behind the longwall mining system is that the roof is supported only immediately adjacent to the worked seam, keeping the blocks of immediate roof clamped securely from the face to the rear of the sup¬ports. At the rear of the supports, the roof is allowed to fall and break up, with the swell of the broken material eventually establishing an equilibrium in the strata be¬hind the mined area. Fig. 2 illustrates the principle of longwall support. There are two distinct types of longwall mining. The longwall retreating system is the most common in the United States, South Africa, and Australia. The longwall advancing system is the most common in the re¬maining industrialized countries such as Britain, Ger¬many, Poland, and the Soviet Union. The longwall retreating system comprises a mining panel, where the roadways that form the head entry (end at which mineral is delivered from the face con¬veyor to a stage-loader conveyor) and the tail entry are predriven before the longwall units starts production. In the longwall advancing system, the longwall unit makes the head and tail entries as the face advances, utilizing various techniques to prevent the entries from being destroyed as they are left in a consolidating gob area. Fig. 3 illustrates the comparative approaches of the longwall retreating and advancing operations. As with most other underground mining systems, there are many variations on these two basic systems, using combinations of the systems that are dictated by

Jan 1, 1982

By B. J. K. Sullivan, Brian Hornsby

INTRODUCTION Mount Isa Mines Ltd. operates a copper and silver- lead-zinc property at Mount Isa in northwest Queens- land, Australia. Mount Isa is located in the tropics at latitude 20°43'S and longitude 139°30’E (Fig. 1). It is on the upper watershed of the Leichhardt River and at an elevation of 365 m above sea level. The average rain- fall is 360 mm/y, the greater part of which falls in January to March (the hot summer months). The mean summer temperature for these months is 30°C (dry bulb), with a maximum temperature of 43°C; the mean wet bulb temperature is 25°C with a maximum of 28°C. Mount Isa is located geologically towards the western edge of the Precambrian Shield of northwestern Queensland. This complex forms a north-tilting dissected peneplain which extends in the north-south direction for 640 km, with widths varying from 32 km to 190 km. The combination of differential erosion, regional strike, and steep dips has produced a corrugated topography of low north-south orientated hills and valleys. The field was first discovered in 1923 as a silver- lead-zinc field. Mount Isa Mines Ltd. was formed the following year and subsequently became the sole operating company on the field. Lead and copper ore have been mined and treated separately and simultaneously at Mount Isa since 1953. Intensive exploration commenced in 1954 and an active exploration program provided the justification for a series of production expansion programs in both silver- lead-zinc and copper (see Table 1 ). The most recent and largest production expansion program at Mount Isa commenced when a decision was reached in December 1969 calling for an increase in copper production from 100 000 to 150 000 t/y of blister copper. A major factor which influenced this decision was the substantial additions to the ore reserves in the so-called 1100 ore body which is a massive copper sulfide ore body with a known strike length of approximately 2500 m, a height which is variable up to 300 m, and a width of generally 300 m up to a maximum of 370 m (see Figs. 2 and 3). Host to the copper mineralization is a complex and variable rock generally called "silica dolomite." The ore body strikes 6.02 to 6.1 rad (345° to 350°), dips west between 0.78 and 1.13 rad (45° and 65°), and is truncated at depth by fault implaced basement rocks. It first occurs some 600 m below the surface and bottoms at about 1000 m below the surface. The unconfined compressive strength of the silica dolomite ore varies from 150 to 250 MPa, whereas the basement rocks, carbonaceous mylonite, slaty shale, buck quartz, and greenstone (a chloritic schist) are considerably weaker, varying in strength from 20 to 80 MPa. The distribution of mineralization within the ore body is variable, but can be considered as generally high grade at or just above the basement contact and diminishing towards the upper reaches of the ore body. The current

Jan 1, 1982

By Christopher J. Bise

INTRODUCTION Face haulage in underground mines and pit haulage in surface mines are the principal domains of rubber- tired haulage vehicles. In underground mines, cable- reeled or battery-operated shuttle cars and diesel-powered load-haul-dump vehicles are used; trucks are primarily used in surface mines. Although many concerns go into the selection of rubber-tired haulage vehicles, such as clearance and tire life, the most important factor from a mine-planning standpoint is the production capability of the vehicle in the mine environment. Therefore, this chapter will address this topic. UNDERGROUND FACE-HAULAGE VEHICLES The selection process for underground face-haulage vehicles is, in some respects, much simpler than that of the other haulage systems discussed to this point. It is simpler because these vehicles, which transfer the mined material from the face to the intermediate haul¬age system, are manufactured in various size ranges to cope with the confinement of underground opening widths and heights. However, since these vehicles oper¬ated in an intermittent fashion in conjunction with a constantly advancing face, the system's lack of perma¬nence and overall dynamic nature create a more diffi¬cult situation for predicting productivity. The emphasis in this section will be on prediction of productivity. There are three fundamental steps that must be taken to analyze the productivity potential of any face¬haulage system: l) Recognize the geologic (seam thickness, etc. ) and mining (opening widths, etc.) constraints that affect the velocity/clearance aspects of the haulage equipment, and select equipment from manufacturers' specifications with these con¬straints in mind. 2) Secure the elemental times of the face-haulage system. 3) Incorporate the elemental times into an accepta¬ble mine plan. By recognizing the geologic and mining constraints that affect the system layout, parameters, such as vehi¬cle payload, tonnage to be hauled per cut, and haulage distances, can easily be determined. Elemental times can be developed in two ways: 1) In an existing operation, a time study of the dynamic system can be conducted by placing three time-study engineers at the following static locations; (1) near the loading machine, (2) near the change-out point outby the face, and (3) near the dump. By synchronizing their watches and recording the actions of the haulage vehicles at these three locations, their time studies can be reduced to provide elemental times, such as vehicle tram rates (empty or loaded), vehicle discharge times, and loading rates. 2) In the absence of an existing operation, average values for the elemental times can be provided from other mines operating in similar condi¬tions, or by the manufacturers themselves.

Jan 1, 1986

By W. H. Andrews

DEFINITION OF BAUXITE The term "bauxite" (1) dates back to 1821, when it was assigned to a deposit of red earthy material outcropping near the village of Les Baux in Southern France. Chemical analysis indicated the presence of aluminium oxide, iron oxide and water. Deposits of bauxite are widespread throughout the world although the major developments occur within 30 degrees of the Equator. Essentially bauxite is the product of weathering and leaching of a variety of sediments or rocks, generally in a high-rainfall tropical or sub-tropical climate, resulting in the enrichment of the aluminium oxide content. It is characterised by the presence of one or more of the minerals, gibbsite, boehmite, and diaspore. The other constituents are usually clay, (typically kaolin), hematite and/or goethite (iron-oxides), anatase (titanium oxide), and possibly silica as quartz. A variety of minor elements may be present, such as calcium, magnesium, phosphorus, vanadium, gallium, manganese, and many others in very small quantities. Organic compounds are normally present from development in association with a soil horizon where vegetation may be encouraged by the high rainfall necessary for bauxitisition. The physical form depends upon the geological history of the deposit and correlation also exists with the mineralogy. Older deposits which have been subject to burial are invariably hard and compact with the alumina predominantly occurring as boehmite or diaspore, while the more recent, surface deposits are frequently less compacted and gibbsite is the dominant alumina mineral. In these later deposits, the physical form can vary from the fine red soil (terra rosa) of Jamaica to the Weipa pisolites to the cemented Arkansas type. The presence of concretionary structures is an important aid in identification in the field.

Jan 1, 1984

By Steven Atkin, Rens Verburg, Bryony Hansen, David McWharter

The use of paste tailings as underground backfill and for surface disposal is rapidly expanding, and with it comes the requirement to understand and predict its long-term environmental stability. This paper presents the results from a kinetic testing study performed on cemented tailings paste mixtures under both subaqueous and subaerial conditions. In addition, the effects of grainsize reduction are investigated. It will be demonstrated that the long-term weathering behavior of tailings paste is controlled by its physical and chemical characteristics, as well as its placement conditions. The testing indicates that subaqueous disposal of paste inhibits acid generation, whereas the exposed samples produced acidic leachate despite the presence of cement added to meet geotechnical requirements.

Jan 1, 2000

NIOSH is conducting research to reduce the silica dust exposure of workers at surface coal mines. One goal of this research is to evaluate the relationship between drilling parameters, rock strata and silica dust generation. This study involved measuring blast hole emission dust from a rotary drill rig which required sampling high concentration dust (>400 mg/m3) for silica content in a high velocity airstream. To measure dust initially, traditional sampling methods using personal sampling instruments were attempted in and around the shroud area of the drill with no success. Variations in the dust cloud concentrations under the shroud, the condition of the shroud and its orientation over the hole, and ambient air conditions prevented consistent and accurate dust measurements from being obtained. Amore consistent dust cloud is necessary for accurate measurements. An area of the drill’s dust collector system that consistently draws the emitted airborne dust from the hole is the collector tube. This tube connects the drill collector’s vacuum and dust filtration system to the shroud area. Assuming the collector system is working as designed, sampling from the collector tube would enable more consistent and accurate samples to be taken. However, current personal samplers are unable to sample in the concentrations and velocities experienced in the collector tube, so another method had to be devised. To achieve the desired results, an in-stack cascade cyclone was used. Preliminary field testing shows positive results.

Jan 1, 2003

By G. Pan

The production data of many mines have not reconciled geostatistical estimations based on exploration and development drilling. The discrepancies in recovered metals are sometimes as large as 30%. A number of factors are responsible for such unpleasant outcomes. A major cause, however, is the lack of geological controls in the implementation of geostatistical techniques. Geological modeling establishes geological constraints and mineralization/ore envelopes. Geological constraints are usually established through drill hole interpretation. Mineralization and ore envelopes have been delineated manually based on assay grades. The issues associated with manual methods are: •Time requirements . •Inconsistent dilution. •Uncontrollable implementation variance. Although the time issue may not be a big concern for some companies, the other two have been responsible for many undesired estimation errors. A new geostatistical approach described in this study is designed on the basis of indicator and ordinary kriging. The central component of the method is the procedure for automatic delineation of mineralization and ore envelopes. The method, referred to as probability assigned constrained kriging (PACK), is demonstrated on a Carlin-type gold deposit. The estimation results are compared to blast-hole based production panels, showing that the estimated tonnage is about 2.1 % higher than the actual production, and the average grade is about 2.4% lower.

Jan 1, 1995

By Edward Holloway

The basis for the selection of the ultimate pit for an open-pit mining operation is generally opaque. Some form of value-based analysis will generally guide the final decision; however, the value will often gradually plateau while the ultimate pit size continues to increase. There is no established framework to guide specialists in the selection of the ultimate pit, with such decisions regularly made on a somewhat arbitrary basis. The key component that is missing from the analyses typically used to select the size of the ultimate pit is risk. Once risk is quantified within the analysis framework, the decision-mak-ing range is significantly reduced and the process for select-ing the ultimate pit becomes more consistent, replicable and defensible. The technique outlined in this paper provides an approach to including risk in the process used to select the ultimate pit.

Jun 1, 2024

By J. W. Devon

The coal mining industry is divided into two distinct economic segments based on Coal Supply Agreements. Coal supply agreements generally fall into two categories, spot or long-term, with the selected contract term being driven by the buyer's market expectations, security of supply considerations, fuel tonnage and quality requirements, and economics. Short-term or spot coal purchases are generally market driven and are highly competitive in today's marketplace. Long-term contracts, particularly those involving captive mines and mine-mouth power plants, are commonly driven by considerations other than economics. These other considerations, such as Reserve Conservation and Resource Recovery, Security of Supply, and Maintenance of Levelized Costs may increase the cost of coal, often needlessly and without benefit to the buyer or seller. The basic economic principles which guide the market driven metals industry and generally guide the spot coal sector of the coal industry should apply equally well to the long-term coal supply contract. The artificial constraints imposed as a result of regulated rates of return should be re-examined and in most cases, abandoned. There are many methods of surface and underground coal mining being used today such as, open-pit, contour, mountaintop, and area mining for surface mineable reserves; conventional, standard continuous and super-section continuous miners, and longwalls for deep reserves; and highwall miners, thin seam miners and augers in between. This discussion is primarily directed to surface mining, however the same principles of least cost mining on a Net Present Value basis must be considered in all cases.

Jan 1, 1994