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By J. Kern, M. Cain, T. Torries

Until recently, the generation of electricity was regulated in all states and the value of generation assets in a regulatory environment for ad valorem taxation were based largely on the book value of the plant plus the rate of return on capital allowed by the state regulatory agency. This method of appraising utility generation assets is inappropriate in a competitive environment because past capital expenditures are not relevant in a competitive environment. However, it is not clear what valuation methods are appropriate after restructuring. This paper identifies key problems and advantages of other appraisal methodologies and makes comments on various valuation and taxation methods.

Jan 1, 2001

By Micheal Mitariten

The recovery of natural gas (primarily methane) from coalbed deposits is an established and growing source for the U.S and accounts for over 7% of its total production. The gas from on-purpose degassing is often pipeline quality and requires only compression and dehydration before being admitted to the pipeline grid. However, the raw gas is sometimes contaminated with nitrogen (N2) and/or carbon dioxide (CO2) that can make the gas inadmissible to the transportation pipeline. In general, the N2 must be 4% or less and the CO2 should be 2% or less. In treating gas produced from virgin coal bed or from degassing operations where CO2 is present, amine systems are traditionally used for its removal. Engelhard’s Molecular Gate® adsorption system offers an attractive alternative due to its skid-mounted equipment, low pressure and unattended operation, cost and high on-stream reliability. Natural gas can also be sourced from the residual coal, after the coal has been mined. This source can be the GOB or gas remaining in abandoned coal mines. This source is almost universally contaminated, often with a combination of CO2 and N2. If the source is from air intrusion, the source can also be contaminated with O2. In treating CO2 / N2 contaminated feeds, the Molecular Gate adsorption system removes both of the impurities along with a level of O2 within a single processing step. To date, ten Molecular Gate units are underway with three systems having been installed for upgrading gas from abandoned coal mines. The technology consists of specialty adsorbents and advanced PSA processes that are jointly offered as fabricated packaged equipment by Engelhard Corporation and Guild Associates, Inc. Upgrading requirements, project challenges and project arrangements are discussed in this paper.

Jan 1, 2005

By P. A. Plunkert, D. E. Morse, L. McCartan, J. F. Papp

The mineral sector is a fundamental part of the U.S. economy. It contributes to the real gross domestic product (GDP) at several levels — basic (mining), intermediate processing, manufacturing of finished goods and construction. The real GDP during 2004 increased by 4.4 percent. The nominal GDP was about $11.7 trillion. Housing starts were up by slightly more than 4 percent for the year. And the nation’s unemployment rate decreased to5.5 percent in 2004 from 6 percent in 2003. Interest rates continued to be low (prime rate was 5.25 percent at the end of 2004) but have risen gradually, following rising inflation.

Jan 1, 2005

By Steven E. Mischler, Jay F. Colinet

The Mine Safety and Health Administration (MSHA) promulgated a rule in 2014 that required numerous changes in compliance dust sampling requirements for coal mine operators. Two key parts of this rule were the lowering of the respirable coal mine dust standard from 2.0 mg/m3 to 1.5 mg/m3 and requiring operators of underground coal mines to use a continuous personal dust monitor (CPDM) for compliance sampling. The CPDM currently approved for compliance sampling is equipped with a display that provides miners with in-shift information on their respirable dust exposure. The goal was to provide an indication of a potential overexposure and empower the miner and mine operator to implement changes in controls and/or operating practices to prevent an overexposure from occurring.

By T. R. Ellis

"Editor’s Note: This is an expanded abstract. The full report is available on SME’s website at http://www.smenet.org/publications-resources/ resources/sme-valuation-standards-tutorials.The author has three goals for this review of mineral valuation standards internationally.1. To place the SME Standards and Guidelines for Valuation of Mineral Properties (SME Valuation Standards) and International Mineral Property Valuation Standards template (IMVAL Template) within the global context of existing mineral valuation standards.2. To review the current status of harmonization of each International Mineral Valuation Committee (IMVAL) member’s mineral valuation standards (or code) with the IMVAL template and suggest remedies for issues found.3. To suggest future enhancements for the IMVAL Template and SME Valuation Standards, and to suggest future roles for the IMVAL and SME committees. From the author’s review, Ellis draws the following conclusions.The SME Valuation Standards comprise a minimum set of principles-based standards and guidelines for developing and reporting valuations of mineral properties (including petroleum properties) for public and private use, subject to jurisdictional requirements. The standards are also designed to provide mineral valuation guidance that supplements application of the International Valuation Standards Council’s International Valuation Standards (IVS) and the U.S. government endorsed Uniform Standards of Professional Appraisal Practice (USPAP), published by the Appraisal Foundation.The SME Valuation Standards is the first set of valuation standards developed by a minerals institute adopting and modifying the IMVAL template. As a result, the SME standards are essentially totally harmonized and otherwise aligned with the IMVAL template. IMVAL was initially conceived in 2012 as a discussion body to aid harmonization of each member’s valuation standards, by modifying to function the same. IMVAL primarily developed the IMVAL template, published in July 2016, to produce an agreed reference framework of essential mineral valuation guidance content as the goal for harmonization of the Australasian Code for Public Reporting of Technical Assessments and Valuations of Mineral Assets (VALMIN Code), The South African Code for the Reporting of Mineral Asset Valuation (SAMVAL) and the Canadian Standards and Guidelines for Valuation of Mineral Properties (CIMVal standards and guidelines). The harmonization would result from each mineral valuation standards committee modifying its standards to operate similarly to the IMVAL template, producing valuation reports with similar content and value for the same mineral property. The template is also available for other bodies to adopt and modify for their regional setting’s needs, as SME did, or use as a convergence goal when updating an existing standard."

Jan 2, 2018

By Michael Forbes, Rick Jeuken

The challenge of managing geological uncertainty in mine planning is central to optimizing resource extraction while minimizing risks and costs. This paper introduces a novel approach to coal mine planning by integrating chance-constrained programming to address the uncertainty inherent in mining operations. The main takeaway from this work is the demonstration that focusing on reducing the variance of high-quality coal blocks, rather than low-quality ones, can lead to better blending outcomes, higher profitability and more efficient resource utilization. The study presents a case study of a coal mining operation, using chance-constrained programming to manage the uncertainty surrounding coal property predictions, specifically the predicted coke strength after reaction (CSR).

Jan 1, 2025

Magnetic separation is an age-old technique for mineral beneficiation operations. The existing mathematical models for magnetic separators are quite complicated, and it is very difficult to measure the theoretical separation efficiency. The connectionist approach of modeling, to establish the relationships of the inputs and outputs, is preferred for this kind of problem. Experiments were carried out on a high-intensity roll magnetic separator to develop a database using four input variables (magnetic flux intensity, particle size, splitter position and roll speed) and two output variables (weight recovery and Fe recovery). The artificial neural network (ANN) and statistical methods (MLRG) were used to model the magnetic separation process. For the ANN, the regression coefficient (R2) values between the predicted and measured results were 0.89 and 0.94 for Fe recovery and weight recovery, respectively. Compared to ANN, the multivariable linear regression analysis showed inferior performance in predicting the weight recovery and the Fe recovery. The ANN models for the roll magnetic separator can predict the separation efficiency up to an acceptable limit. These models can be used to modify the operational parameters at mineral beneficiation plants to minimize the effects of variations in the raw material characteristics.

Jan 1, 2009

By Dan Witkowsky

Beginning on June 11, 2007, as many as 36, kindergarten-to-grade-12 (K-12) teachers will participate in a program designed to educate them all about the mining industry. The 39th Annual A Total Concept of the Mining Industry – All About Mining, will be conducted by the Colorado Mining Association Education Foundation, Inc. (CMAEF) and the Office of Special Programs and Continuing Education (SPACE) at the Colorado School of Mines. This flagship program includes four intensive weeks at the Colorado School of Mines. During that time, more than 75 volunteer lecturers will “educate the educators” about mining and its importance to the United States and the world. During the learning process associated with obtaining a basic understanding of mining and all its aspects, the teachers will be hosted by hundreds of other industry professionals at 10 Colorado mining operations. Also visited will be a government earthquake center, a museum of mining and industry, an earth mechanics laboratory, a metallurgical research center, a metallurgical concentrator, an electric power plant and a steel mill. Questions before, during and after visits will be answered by another select group of volunteers who will travel with the teachers to the various sites.

Jan 1, 2007

By A. M. Radigan, W. G. Prast

M.S. Azun The authors' paper did not explain the facts and reasons why state companies are established and what their role is in international industrial mineral trading. Also, I do not agree with the conclusion implying that the main goal for state companies is to capitilize natural resources. Almost all state companies are founded by certain laws and their activities are arranged by state regulations. Their only aim is to operate mineral deposits for their people and to protect the rights of the people. Although some ore deposits, such as nonstrategic or small, may be exploited by privately owned companies, the state has the right to control the operation and production. Activities of state companies may or may not be widened because of the character of the deposits and the importance of the mineral market involved. For some countries, although governments may occasionally change hands, the policy of the mineral trading system is not affected by this change. There is no doubt that any government desires to make more earnings to increase GNP, when it is involved in operating and trading mines. It wants to produce and sell the finished products, instead of unprocessed ones, if possible. When it is known that some mineral deposits are relatively rare, such as Turkish boron deposits, the government can nationalize the mines to control production and affect the market. If there is an abundance of a certain mineral in the market, the government can cut production and set a floor price, such as Canadian potash. Also, when production of a specific mineral is unique, such as Turkish chromite, the price of such mineral may be set by correspondant government. One may add that if some governments with their state companies produce a certain mineral in a larger amount, they may decide to establish a cartel to protect their production and price. These are the facts followed by government-owned state companies and partially government-owned companies. The reason being charge of many deposits by the state companies is always the same: "protect" the mineral rights of the people.

Jan 2, 1984

By Fulvio Tonon

And Rabcewicz said ?tunnels should be driven full face whenever possible.? ADECO, which stands for ?Analysis of Controlled Deformations in tunnels,? now allows us to fulfll Rabcewicz?s dream in any stress-strain condition. In order to achieve that dream and its consequent control over cost and schedule, however, NATM must be abandoned for the ADECO. The paper presents the basic concepts in the ADECO approach to design, construction and monitoring of tunnels together with some case histories, including: full face excavation for Cassia tunnel (width of 22 m, height of 14 m) in sands and silts under 5 m cover below an archeological area in Rome, Italy; Tartaguille tunnel (face area > 100 m2) advanced full face in highly swelling and squeezing ground under 100 m cover where NATM led to catastrophic failure, France; and 80 km of tunnels (face area > 100 m2) advanced full face in highly squeezing/swelling ground under 500 m cover for the high-speed railway line between Bologne and Florence, Italy (turnkey contract).

By T. A. Marcotte, D. J. Bobrow, S. Vaghar

This paper discusses the geotechnical instrumentation program on the Central Artery/Tunnel Project, in Boston, Massachusetts. Particular attention is given to a state of the art Graphic Information System (GIS) application which has been developed for rapid analyses and reporting of data. This application will see extensive use during the ongoing complex downtown tunnel construction. The excavations in soft ground require cuts of up to 120 feet deep and 250 feet wide. Deformation and groundwater monitoring instruments have been installed to monitor the stability of the excavation support systems and the abutting buildings. The use of this application is illustrated with an example from an ongoing contract.

Jan 1, 1997

By Kwang ‘Min’ Kim, Paul T. Behum

The Old Bevier Aerobic Wetland in Macon County, Missouri, was constructed between 1990 and 1991 by the Missouri Department of Natural Resources’ Land Reclamation Program for the purpose of treating acid mine drainage (AMD). The principal source of the AMD is from an underground mine that operated during the 1920's through 1950's, which was partially exposed during surface mining in the 1960’s. Limestone bedding of an AMD collection system provided alkalinity similar to an anoxic limestone drain (ALD). Because the original aerobic wetland failed when a critical dilution water supply became unavailable, the total acidity of the AMD overwhelmed the limited neutralization ability of the aerobic wetland. The aquatic vegetation deteriorated and treatment became ineffective. The Missouri Land Reclamation Program with the assistance of the Office of Surface Mining, Mid-Continent Regional Coordinating Center rehabilitated the Old Bevier Aerobic Wetland in 2001, incorporating newer technologies to improve the performance. The new system, Old Bevier II treatment facility, consists of a 2-stage vertical flow pond (VFP) with associated oxidation cells and aerobic wetlands. This paper discusses the performance of this passive AMD treatment system, updating an earlier report. The new treatment system has operated with nearly continuous net alkaline discharge and a high iron removal rate. Treatment improves during warm months when emergent vegetation is fully established and biologic activity is greater. Reduction in system efficiency is evident during winter months.

Jan 1, 2005

By Mingyang Li, Yan Lv, Xiaolong Ma, Xudong Gao, Jie Zhao, Yingyi Zhang

The reduction process of pre-oxidized ilmenite concentrate powder in 30%CO–70%N2 atmosphere was characterized by thermogravimetric and differential thermogravimetric (TG-DTG) analysis system at the temperature from 1073 to1223 K. The isothermal reduction results show that the reduction process is divided into three stages and the corresponding apparent activation energies are obtained by iso-conversional method and model-fitting method, respectively. For the first stage, the conversion degree increases sharply with increasing time, and the reduction process is controlled by the random nucleation and subsequent growth model (A2 model). For the second stage, the conversion degree increases slowly with increasing time, and the reduction process is controlled by the diffusion of carbon monoxide in the reduced layer (D1 model). For the third stage, the reduction processes at different temperatures are controlled by the diffusion of carbon monoxide in the reduced layer (1073 K and D1 model), phase boundary chemical reaction (1123 K and R2 model), random nucleation and subsequent growth (1173 to 1223 K, A2, and A3 models), respectively. For the whole reduction process, the apparent activation energies obtained by iso-conversional method and model-fitting method are 71.72 and 31.92 kJ mol−1 , respectively

By Mingyang Li, Yan Lv, Xiaolong Ma, Xudong Gao, Jie Zhao, Yingyi Zhang

The reduction process of pre-oxidized ilmenite concentrate powder in 30%CO–70%N2 atmosphere was characterized by thermogravimetric and differential thermogravimetric (TG-DTG) analysis system at the temperature from 1073 to1223 K. The isothermal reduction results show that the reduction process is divided into three stages and the corresponding apparent activation energies are obtained by iso-conversional method and model-fitting method, respectively. For the first stage, the conversion degree increases sharply with increasing time, and the reduction process is controlled by the random nucleation and subsequent growth model (A2 model). For the second stage, the conversion degree increases slowly with increasing time, and the reduction process is controlled by the diffusion of carbon monoxide in the reduced layer (D1 model). For the third stage, the reduction processes at different temperatures are controlled by the diffusion of carbon monoxide in the reduced layer (1073 K and D1 model), phase boundary chemical reaction (1123 K and R2 model), random nucleation and subsequent growth (1173 to 1223 K, A2, and A3 models), respectively. For the whole reduction process, the apparent activation energies obtained by iso-conversional method and model-fitting method are 71.72 and 31.92 kJ mol−1 , respectively

By Mustafa Kumral, Mehmet Balci

Strategic mine planning focuses on cutoff grade selection, capacity planning and block sequencing. Despite significant knowledge accumulated, potential value can be added to mineral sourcing by addressing various aspects. A case study on a metallic deposit with a lognormal grade distribution examines if grade/metal distribution influences cutoff grade selection. Six data sets with different shape and scale factors, but the same ore tonnage and metal quantity, are analyzed. Results indicate deposits with lower shape and scale factors are more sensitive to metal price and discount rate changes. The study also investigates the effect of economies of scale (EoS) on project value, focusing on the ratio of variable cost to total cost (capacity factor). Two regression analyses are conducted for optimal capacity planning and cutoff grade selection. The first shows capacity planning is highly sensitive to the EoS of mining and mineral-processing costs, with grade variability and metal distribution being negligible. In the second analysis, grade variability and EoS of mineral processing costs are vital for cutoff grade selection.

Sep 1, 2024

By Fouad Faraj

For every blast pattern, zones of unique material types need to be classified before mining. Most material types can be summarized into different kinds of ore and waste. Blocks generated from blasthole assays are too small to be selectively mined, so areas with a single material classification meeting the mine’s selective mining unit must be defined. Current industry standard practices are to manually draw ore/waste dig limits, but this process is subjective and results in quantities of dilution and ore loss that can be improved upon to enhance the profitability of mining operations. In this study, two weeks of production data from a homogeneous copper (Cu) porphyry and heterogeneous manto-type Cu deposit were used to assess the variability in the hand-drawn dig limits of 20 geologists, mining engineers and ore control specialists, which were compared with the optimal ore/waste delineation. The profit for 20 distinct hand-drawn dig limits for the homogeneous mine varied by 3.7 percent, from $10.5 million to $10.9 million, averaging at $10.8 million. The percentage was nearly double for the more heterogeneous mine at 5.9 percent, from $17.9 million to $19.0 million, averaging at $18.6 million. Using the optimal ore waste delineation, the profit increased to $11.0 million (1.9 percent increase) and $19.3 million (7.0 percent increase) for the homogeneous and heterogeneous deposit, respectively. The natural variability, diggability requirement and selectivity are identified as the main drivers of ore loss and dilution. Recommendations are provided for reducing the subjectivity in manual hand-drawn dig limits by integrating dig limit optimization algorithms as a tool to assist practitioners.

Oct 1, 2024

By R. W. Chappell, M. W. Hills, R. L. Olsen

A stochastic approach was developed and applied to the Butte, Montana Hillside abandoned mining site for modeling stormwater runoff and subsequent receiving stream loadings. This approach enabled capture and quantification of the uncertainty associated with stormwater quality data and allowed the prediction of copper and zinc concentrations in the receiving stream caused by runoff from the Butte Hillside during storm events. Runoff flows and stormwater concentrations were input to the model as probability distribution functions. Monte Carlo simulation allowed prediction of expected instream concentrations in the form of cumulative distributions functions. The modeling results allowed evaluation of current best management practices (BMPs), targeting of future BMPs, and identification of key data gaps to fill during future sampling activities. This modeling approach is considered extendable to other active and inactive mining sites. Output from a model of this type is easily understood and can be used to communicate effective stormwater management to site regulators. Furthermore, application of this modeling approach will facilitate the development and implementation of a site-specific stormwater management plan and will optimize efforts to achieve standards for compliance with stormwater discharge permits.

Jan 1, 2002

By Jr. Abel

Subsidence is controlled by a complex combination of mining and geologic factors. For example, a world-wide compilation of data shows that, as the percentage of shale in the overying rock mass decreases and the amount of sandstone increases, the angle of draw (and the area affected by subsidence) decreases. Limestone in the overburden appears to cause as much as a three-fold decrease in the angle of draw compared to a like amount of sandstone. Increased amounts of sandstone were accompanied by a greater surface subsidence relative to the mining height. The total thickness of overburden did not appear to influence the subsidence magnitude above super-critical panels. The greater the thickness extracted the smaller percentage of that thickness that shows up at the surface as subsidence. The greater the percent of the seam extracted, the greater the subsidence reaching the surface. The maximum subsidence above room and pillar panels is dependent on the pillar height and minimum width as well as the other factors listed.

Jan 1, 1980

By Franklin J. Stermole

L. Alan Weakly, member SME, is a senior staff engineer, Exxon Co. Weakly chaired a Mining Engineering committee formed to solicit materials for six planned "personal skills" articles, to be used in ME this year. What follows are Weakly's introductory comments to the series. Upon graduation from college several years ago, I thought that I was sufficiently prepared to embark in my chosen profession. A short time later I realized that several years of on-the-job training was going to be required before I could use my technical training effectively. It never occurred to me that, professionally, I was seriously lacking in any other skills. My spelling could use a little upgrading, but this was not a serious deficiency. I have been very fortunate to have had two employers that recognized that their engineering professionals did lack other skills and made every effort to give them training to correct these deficiencies. The skills I am referring to are those in administration and interpersonal relationships. Most mining engineers and geologists receive very little, if any, college training in these areas. In addition, many companies do not provide this training and many mining engineers and geologists are unaware of their deficiencies. It is for this reason the subject of personal skills development is being introduced in Mining Engineering. The mining engineer or geologist can pursue one of two basic career directions, managerial or technical. In today's technically sophisticated society and highly competitive business climate, both orientations require administrative and interpersonal skills. Most of us are technically qualified and we continue to upgrade our technical skills. But many studies indicate that we, as a group, are significantly weaker in administrative and interpersonal skills than other professional groups. In addition, these studies indicate that engineers, in general, take longer to reach managerial levels and fewer do so. This series in Mining Engineering, then, should help readers strengthen and broaden their professional capabilities. In all industries, including mining and petroleum, economic analysis of potential investment projects is done to select the projects that will give maximum future value from the investment of available capital. Rather than looking directly at the future values to be generated by investing capital in alternate ways for economic decisions, evaluators usually use either rate of return, present value, annual value, a profit to investment ratio, or various break even analysis results to reach economic analysis decisions in evaluating alternative investments. Alternative economic evaluation techniques are used in industry to properly analyze the economic potential of various investment projects. "Discounted Cash Flow" analysis is the phrase commonly used to describe these techniques. Whether you want to analyze projects in mineral, petroleum, real estate, refining, pipe-line transportation, or any other industry, proper application of discounted cash flow analysis techniques enables you to fairly compare the economic potential of alternative projects as well or better than you can using any other project evaluation approaches. It should be pointed out that investment analysis generally involves more than economic analysis. Financial and intangible considerations sometimes are as important or more important to investment decision-making than economic considerations. Economic analysis refers to evaluation of the profit generating potential of projects, that is selecting which alternative projects will generate maximum future value possible from available investment capital. Financial analysis, on the other hand, relates to analysis of where money is going to come from to finance various projects. Regardless of the economic potential of a project, if financial analysis indicates that we cannot finance the project, it likely will be shelved for financial reasons even though it may be economically satisfactory. Many evaluators use the terms "economic analysis" and "financial analysis" interchangeably, but this author considers that to be undesirable. Intangible analysis relates to project factors that are difficult to quantify in

Jan 2, 1984

By E. Topuz, C. Patrick

Longwall face-to-face transfers can cost more than $100 per minute in lost production potential and $100,000 for personnel and supplies. Such high costs make extensive planning and control of the transfer process a critical necessity for the economic feasibility of longwall operations. Operations research techniques are used for the analysis and modeling of longwall face-to-face transfers. Transfer data has been collected from companies who operate, over 35%, of the total US longwall faces. Comprehensive sequence networks of existing longwall transfers were developed; simulation was used to generate models of transfers under Carving conditions; and the economic feasibility of tine-cost tradeoffs in the transfer procedure was investigated.

Jan 1, 1994