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By J. A. Botín

NPV is a static measure of project value which does not discriminate between levels of internal and external risk in project valuation. Due to current investment project?s characteristics, a much more complex model is needed: one that includes the value of flexibility and the different risk levels associated with variables subject to uncertainty (price, costs, exchange rates, grade and tonnage of the deposits, cut off grade, among many others). Few of these variables present any correlation or can be treated uniformly. In this context, Real Option Valuation (ROV) arose more than a decade ago, as a mainly theoretical model with the potential for simultaneous calculation of the risk associated with such variables. This paper reviews the literature regarding the application of Real Options Valuation in mining, noting the prior focus on external risks, and presents a case study where ROV is applied to quantify risk associated to mine planning.

Jan 1, 2012

By Ana Chiquini, Clayton V. Deutsch

The most common approach used in the mining industry for mineral resources modeling is to estimate the grades using ordinary kriging and report the recoverable resources based on this deterministic estimated model. Mineral resources calculated with kriging are a smooth representation of the actual distribution of grades and do not provide an assessment of uncertainty. Unlike kriging, simulation reproduces the variability of the grades in the mineral deposit and provides an assessment of uncertainty. Reporting mineral resources directly on high-resolution simulation results would assume perfect knowledge of the grade at the time of mining and selectivity at the scale of the data. There will always be uncertainty left at the time of mining, so assuming perfect knowledge of the grade in the future is incorrect. There are two concerns when geostatistical simulation is used for resources modeling: the information and the mining selectivity effects. A new framework for resource estimation is proposed with two separate modules to address those concerns. The information effect is accounted for by anticipating the additional production data that will be available at the time mining to guide the destination for the mined material. The mining selectivity effect is addressed by mimicking the grade control procedure to get mineable dig limits at a chosen selectivity, represented by a minimum mineable unit size. In addition to a prediction of recoverable resources that will be closer to the material mined in the future, the framework proposed provides an assessment of local and global uncertainty for risk management.

May 26, 2020

By M. A. Oskouei

Draglines are the main energy consumers in strip mines. Given the growing cost of energy and environmental concerns, it is important to properly understand dragline energy efficiency. The goal of current research at Missouri University of Science & Technology is to account for operator practice and operating conditions in modeling dragline energy efficiency. This paper presents preliminary correlation analysis and a framework for stochastic modeling of dragline energy efficiency. Thirteen operating parameters (including cycle times, payload, swing angle, and height of dump pile), operator working schedules, operating conditions, and drag, hoist, and swing energies were monitored for an 85 yd3 dragline. Operator effects were examined by two-sample t-tests. The relation between the parameters and energy consumption were assessed by correlation analysis and a stochastic modeling framework has been proposed for dragline energy efficiency. The results show that operator effects are significant (p< 0.05) and energy efficiency is correlated with operating parameters. The completed model will help the coal mines better predict energy consumption, with uncertainty, for different operating conditions.

Feb 27, 2013

Remote methane detection State and federal regulations require frequent measurements to verify that safe methane levels are maintained in underground coal mines. Ventilation control is the primary means of maintaining safe methane levels. In the immediate face area, where the highest methane levels occur, methane measurements are required every 20 minutes during active mining. To perform these measurements, temporary roof supports must be erected. This allows a miner to reach the face. There a hand-held methanometer is used to make the measurements. This procedure is time consuming and potentially hazardous. To facilitate the measuring process and reduce the miner&apos;s exposure to roof falls, the US Bureau of Mines has developed a prototype optical device. It can measure methane remotely from distances up to 12 m (40 ft). The device uses two infrared signals, reflected from the coal face, rib, or roof. One signal is absorbed by the methane, the other is not. The ratio of the two signals determines the average methane concentration in the face area. The prototype detector has also been successfully tested at the Lake Lynn, PA Laboratory. Instantaneous responses were obtained for methane in the ventilation airflow and for methane layered near the roof. Conventional methanometers required from five to 25 seconds to respond to the methane in the ventilation airflow. They did not respond to methane in the roof layer. For more information about the Bureau of Mines&apos; remote detection research, contact Richard W. Watson, US Bureau of Mines, Pittsburgh Research Center, Box 18070, Cochrans Mill Road, Pittsburgh, PA 15236 or call (412) 892-6630. Ignition suppression system The incidence has increased of fractional spark ignition at the mine face. One reason is the advent of mechanical mining. Another is the more difficult ventilation conditions associated with deeper and more extensive underground workings. To cope with the problem of frictional ignition, the Bureau of Mines initiated research to develop a system that would provide rapid detection of incipient methane-air ignition. Then, rapid dispersion of a quenching agent would ensure that the methane flame was extinguished while it was still relatively small. This concept was successfully demonstrated by suppressing explosions in the Bureau&apos;s Bruceton, PA experimental mine. But the bulkiness of the early storage-dispersal system proved impractical to retrofit onto face equipment. In a cooperative effort by the Bureau and the Mine Safety and Health Administration, a more compact system has been developed and is being tested. A continuous mining machine has been equipped with four 1.8-m-long (6-ft-long) and two

Jan 9, 1987

By Z. Hyder, M. Karmis

Underground or In-situ Coal Gasification (UCG or UICG), though not a new concept, is now attracting considerable global attention as a viable process to provide a "clean" and economic fuel from coal. Applying improved UICG technology to gasify deep, thin, and low-grade coal seams could vastly increase the amount of exploitable reserves. However, it is imperative that further development of this technology is based on integrating UCG practices and potential environmental impacts with accepted sustainability frameworks and processes. This paper evaluates the potential of UCG to conform to frameworks such as MMSD (Mining, Minerals and Sustainable Development), Natural Step and Green Engineering, in order to define its "sustainable" potential. The paper also discusses the potential contributions of UCG to sustainability during its design, operation, closure, and post-closure phases.

Jan 1, 2011

By Gerald M. Ellis

ntroduction As the gold mining industry continues to develop in the Dominican Republic and Haiti, more deposits will undoubtedly be discovered that will be amenable to development. The Pueblo Viejo gold mine is currently in operation in the Dominican Republic. It has become an important component of that country&apos;s economy. Pueblo Viejo output is important to the government as a foreign currency earner. It is also said to be among the world&apos;s more successful gold mines. But, while Pueblo Viejo is successful, no other major gold discoveries have been made in recent years. Therefore, alluvial deposits of gold have caught the attention of geologists on the Island of Hispaniola. In the past four years, exploration and investigation of alluvial deposits have been initiated in both the Dominican Republic and Haiti. This type of activity is expected to continue over the next few years. Alluvial gold mining is rudimentary gold washing, done mostly by farmers. It is an old tradition, dating back at least 100 years, and is done by small, independent, or community farming villages in the mountains and plains of the Dominican Republic. Investigations in the DR Recently, alluvial gold investigations have been undertaken in well known locations of the Dominican Republic. One is in the Villa Altagracia area. Here, the terraces and gravels of the Haina River basin were examined, test-pitted, and assayed by Minera Altagracia, a local Dominican mining group. Results led to a new investigation by the state-owned Rosario Dominicana (RD), the company that mines the gold at Pueblo Viejo. Rosario tested areas previously investigated by Minera Altagracia. RD could not define the type of concentration that could justify an industrial-scale type of exploitation. The Haina River placers are located in the flats and valleys of Central Dominican Republic. They are classified as small-scale type of operations where local cooperatives can do the traditional gold washing. It is not now considered a dredgable project for a mining company. The next alluvial gold investigation was undertaken by the Dominican Department of Mines and others in an area of some 700 km2 (270 sq miles) in the northeast near Miches. Farmers have been washing gold in streams and excavating pits in various areas, particularly La Mina and have made a living. Government geologists panned several hundred streams and river tributaries. They also washed material from deep excavations. The results, however, were negative insofar as locating alluvial gold concentrations suitable for large-scale or industrial-scale exploitation. The most favorable locations were the terraces along the Jayán and Cuarón Rivers in the area of Miches. But the grade od concentration is poor. Actually, only traces of gold were found in these

Jan 8, 1986

By Phil Jones

"Dilution — planned and unplanned – remains a significant cost impairment in the mining process. A series of trials were held over a sixmonth period in fiscal year 2018 (FY18) that established the cost-benefit of new technology as it applies to the alignment accuracy of production drilling rigs in underground mining, thus confirming its ability to limit drilling as one of the causes of dilution. The trials identified three underlying factors affecting drilling accuracy, measurable by blast-hole deviation surveys of planned versus actual toe data. These were rig alignment error, collar location change/ error and in-hole deviation.The trials involved a comparison of existing rig setup processes and technology, with the new technology (Minnovare’s Production Optimizer system). The trials were undertaken in the same environment: the Cracow gold mine, an operating underground mine. The comparison first revealed the extent to which rig alignment impacts blast-hole deviation. Secondly, the new technology was proven to limit rig alignment error, thereby reducing average blast-hole deviation and increasing the number of holes drilled within tolerance by 160 percent.The increased accuracy reduced stope dilution by reducing over-break of subgrade ore. The new technology was implemented at Cracow during the latter half of 2018. Despite utilizing the new technology for just six months of the year, the mine recorded a 5 percent overall reduction in dilution for the full year compared to the previous year (FY17); from 22 percent down to 17 percent (a net decrease of 22.7 percent). Mine management attribute a significant proportion of this reduction to the new technology, along with sequencing and planning improvements. This opinion is backed by detailed stope reconciliation data taken during the trial from 28 stopes — representing 20 percent of the total tonnes mined during FY18. The data identified that stopes drilled using the new technology recorded 62.6 percent less average dilution."

May 1, 2019

By Steven E. Mischler, Jay F. Colinet

The study analyzes the impact of the Continuous Personal Dust Monitor (CPDM) on reducing overexposures to coal mine dust. It compares compliance sampling data before and after the implementation of the CPDM and the 2014 MSHA dust rule. The results indicate a significant reduction in the percentage of samples exceeding the dust standard for various mining occupations, highlighting the effectiveness of the CPDM in improving miners’ health and safety.

Feb 22, 2022

By Scott G. Britton

Microcomputeranalysis has long been a technique for engineering professionals to improve the theoretical and practical design of continuous mining systems. Such work has been typically composed of modeling observed events and then introducing a variety of known elements with predicted results to compare against the results of the model. Programs written in BASIC, Cobol, Fortran or other language dominated such efforts. These programs have taken years to develop and prove out. This article explores a new management tool used daily at Tanoma Mining Co. (TMC) to track and improve continuous mining systems through the use of microcomputers and Lotus l-2-3 software. Data provided by section foreman, shift foreman, and maintenance personnel are analyzed against predetermined goals. In this way, new production targets are developed, weaknesses in the current mining systems are identified, and the results of changes are measured. The current results of this system on the productive output of TMC systems is on the order of 10% improvement. Thin seam coal mining is an industry within the broader industry of coal mining. Thin seam mining faces the same cost pressures and engineering problems as its higher-seam competitors without the advantages of moving volume per foot of extracted material to stay at an economic parity with others requires additional creativity within the management teams to extract higher productivity gains from the existing workforce and mining systems. TMC operates a deep mine in Indiana bounty, PA, about one hour northeast of Pittsburgh.

Jan 1, 1991

By J. M. Wempen

Booster fans in underground coal mines are often located using the concept of a neutral point. Normally, intake airways are maintained at higher absolute pressure than return airways, so air leaks from intake to return. By adding a significant pressure force to a region of a ventilation system, booster fans installed in a return airway can increase the pressure in the return so that air leaks from return to intake. This is commonly referred to as recirculation. The neutral point occurs at the location in the system where the pressure difference between the intake and the return airway(s) is zero and at this point there is no leakage or recirculation. Ideally, placing a booster fan near the neutral point minimizes leakage and recirculation; however, in practice the position of the neutral point is not static and it changes as the ventilation system parameters change. This paper presents a study of how changes in the system parameters affect the location of the neutral point in a model coal mine ventilation system. First the effects of booster fan pressure and location on the neutral point are evaluated. Next the effect of increasing mine distance, and therefore mine resistance, on the location of the neutral point and the magnitude of recirculation is evaluated.

Jan 1, 2012

By J. Drew

Oregon Resources Corporation (ORC), an industrial minerals mining company, is currently engaged in the development of a new process design that will allow the unique paleo-beach placer deposits of southwestern Oregon to be mined efficiently and economically, creating an additional domestic source for chromite, garnet, and zircon. Engineering design has been guided by the variable geology and mineralogy of the paleo-beach placer deposits as well as the need for a dry tailing scheme that resolves a lack of water resources at the placer locations and at the same time eliminates the need for slurry settling ponds, typical of paleo-beach placer operations in North America. Metallurgical study of the placer material was grouped into four distinct samples based on marine terrace deposition, geological facies, and mineralogy. Because the metallurgical samples represented the extremes likely to be encountered in all future Oregon paleo-beach placer ores, the process design is highly dynamic and will successfully adjust to meet the production needs. Water availability at the mining area is seasonal and will not support a typical placer operation?s water requirement needs for heavy mineral concentration. For this reason, ORC has developed a plan to construct the ore processing facilities near Coos Bay, where a municipal source of water is available. Raw ore will be transported from the mining sites approximately twenty miles one way to the processing facility with return loads hauling tailings back to the active pit. The need to haul dry tailings, return dry material to the pit for reclamation, and limit the amount of water being purchased from the municipality has driven the design of a unique water reclamation system. BACKGROUND Location and Access Economic concentrations of ?black sand? or heavy mineral (minerals with specific gravity greater than 2.85) have been recognized and studied in marine placers from Coos Bay to the mouth of the Rogue River, a distance of approximately 75 miles along the southern Oregon coast (Hornor, 1918; Griggs, 1945)(Figure 1). ORC will begin mining existing reserves approximately 20 miles south of Coos Bay in a region known locally as Seven Devils. Ore will be trucked north to the processing site near Coos Bay via use of existing county and state roads, including U.S. 101. The available facilities at the processing site include highway, rail, municipal water and electricity, natural gas, and a deep water port. At the time of this writing, the rail line had been abandoned, but was being pursued by the International Port of Coos Bay. It is anticipated that this will be serviceable at some time in the future. History The southern Oregon marine placers have garnered the interests of miners since 1852, when present day beaches were exploited for gold. The beach deposits were small and irregular in nature and were easily washed away by the major storms the coast endures during the winter months (Hornor, 1918). [ ] In the 1920?s, deposits at the beach were followed upstream to their paleo-beach terrace origins (Pardee, 1934). These terrace placers were mined, but with little success, as the cost of mining and processing was greater than at the present day beach deposits. The greatest effort to understand and delineate the paleo-beach terrace placers came during World War II. As the need for a domestic source of steel hardening chromite was evident, the heavy mineral bearing placers of southwestern Oregon provided just that. The U.S. Geological Survey, under guidance from the Oregon Department of Geology and Mineral Industries, began exploration drilling of the paleo-beach terraces in 1940 (Griggs, 1945). This work was part of the investigation of strategic mineral deposits and would ultimately supply much needed chromite for the war efforts. The first mining efforts began in 1943 by the Humphreys Gold Corporation and the Krome Corporation (Griggs, 1945). Black sand

Jan 1, 2009

The National Mining Hall of Fame and Museum (NMHF&M) will celebrate its 25th anniversary on Sept. 22, 2012 when the 2012 class is inducted during a special ceremony in Las Vegas, NV in conjunction with MINExpo 2012. The NMHF&M will induct four men representing the equipment manufacturing, minerals exploration, copper and coal sectors of the mining industry. The diverse cross-section of mining industry giants joining the hall of fame include Glen A. Barton, J. David Lowell, Samuel Newhouse and John Cleveland Osgood. They will join 214 other mining industry pioneers when they are formally inducted into the National Mining Hall of Fame at the 25th Silver Anniversary Induction Banquet & Ceremony. These men were selected for being visionaries, leaders and ambassadors within their own sectors and across the industry at large.

Jan 1, 2013

MINExpo International is billed as the largest exposition for the mining and mineral processing industry. And the 2012 edition, scheduled for Sept. 24-26 in Las Vegas, NV, is no exception. Put on by the National Mining Association (NMA), attendance at this year?s show is expected to be significantly more than the 38,500 who attended the last MINExpo in 2008. The exhibit will also be quite a bit larger in 2012 than it was at the previous MINExpo. More than 1,800 companies, representing more than 30 countries, will fill the Las Vegas Convention Center. The more than 850,000 sq ft of exhibit space will include the North and Central halls as well as South Halls Nos. 3 and 4. And the Silver Lot outside of the front door, under construction in 2008, will be filled with more exhibitors. The 2008 show attracted about 1,220 exhibitors occupying more than 600,000 sq ft of exhibit space.

Jan 1, 2012

NASA has received direction for lunar habitation beginning in 2024. Prior to then, it will be necessary to learn about how lunar soil can be used to promote civilization on the moon. Questions must be answered: ?Will it support plant life?,? ?Can it be used as a construction material?,? ?What is needed to maximize health and safety?,? and ?Will it affect equipment, tools, machinery, and clothes?? The only samples available for study came from the Apollo Missions. Because the expense of bringing more material back to Earth is prohibitive, there is not enough available to perform studies to answer the above questions. Hence, there is a great need for its synthesis. Most efforts to date have concentrated on making ?simulant? from single natural resources of volcanic rock. However, another possibility is to use resources here on Earth to extract the minerals of interest into concentrates or so-called ?separates? using traditional mineral processing techniques, and then mix the separates in appropriate ratios to simulate the lunar soil. In this paper, results from a study in which dry Road Norite outcrop and wet mill tailings from the Stillwater Mining Company?s Concentrator located near Nye, MT were examined. Of course, the in-side challenge is to make ?separates? from gangue minerals.

Jan 1, 2012

By Floyd C. Bossard

In underground mining operations, the over- riding issue has to be protection of worker health and safety. The employees underground, making a living in a dangerous occupation, know these are major issues. These men bargain their lives and health on the presumption that the operating management knows its business, and they, the underground employees, can pursue their occupation with the assurance that management has provided a safe and healthy ambient underground environment. When management assumes the mantle of protection of underground workers, it has to be positive that qualified engineers have designed the project, and that capable operating personnel are in charge and always available. Those persons with these responsibilities must be knowledgeable in the engineering and occupational health aspects of sine ventilation. The ultimate function of a mine ventilation system is to provide a comfortable, healthy and safe ambient environment for the underground workers. The attainment of these objectives has been complicated with the increased application of electrical equipment and diesel-powered mechanized mining equipment underground (discharging toxic diesel emissions); increased production rates with the attendant increased production of airborne dust; and mine development in increasingly hostile mineral formations containing combustible strata gases, radon gas emissions, along with high heat and humidity. In general, the modern mechanization of present mining operations has resulted in a sore complex set of problems for the engineer planning the underground ambient environment.

Jan 1, 1983

By Michael Karmis

"In December 2011, the U.S. Attorney’s Office for the Southern District of West Virginia, the U.S. Department of Justice, Alpha Natural Resources (ANR) and Alpha Appalachia Holdings entered into a nonprosecution agreement related to the explosion at the Upper Big Branch Mine (UBB) that killed 29 miners. This coal operation was owned by Performance Coal Co., an affiliate of Massey Energy Co., which was acquired by ANR in June 2011, more than a year after the UBB explosion. Pursuant to the agreement, ANR agreed to:• Establish a trust within 120 days.• Pay a total of US$48 million into the trust to be used solely to fund and administer research and development (R&D) projects to improve mine health and safety.• Administer the trust by three highly qualified individuals with academic and/or professional backgrounds in mine health and safety.In April 2012, the Alpha Foundation for the Improvement of Mine Safety and Health was created. The three directors - Michael Karmis, president; David Wegman, vice presidenttreasurer, and Keith Heasley, vice presidentsecretary - approved a plan to expend both the interest and principal of the trust, aiming at an 8-10 year research horizon. The foundation also appointed David Belden, an experienced manager of nonprofits and professional associations, as the first executive director of the foundation. The IRS approved the foundation’s tax-exempt application, as described in Section 501c(3) of the Internal Revenue Code, on Dec. 18, 2012. The board established guiding principles of the foundation, which are as follows:• Mission: to improve mine health and safety through funding R&D projects to qualified academic institutions and other not-for-profit organizations.• Vision: to enable miners in the future to be free of work related injury or disease by the implementation of the results of the projects funded by the foundation and undertaken by the best researchers from any discipline that can contribute. The foundation is now approaching its third year and regularly posts updates, including semi-annual reports, to its website (www.http.alpha-foundation.org/), which serves as the main medium for communication with the broader stakeholder community"

Jan 1, 2014

The National Institute for Occupational Safety and Health (NIOSH) conducted a study to determine the effectiveness of a filtered air delivery system to reduce respirable dust exposure to roof bolter operators in underground coal mines. When performing roof bolting operations, roof bolter operators may experience exposure to high levels of respirable dust during a working shift, especially when working downwind of the continuous mining machine. While drilling and installing roof bolts, this filtered air system supplies a clean curtain of air over the roof bolter operator by means of a plenum mounted beneath the canopy. This experimentally designed air curtain, adapted for roof bolting machines used in this study, is based upon previous design prototypes, computational fluid dynamics (CFD) simulations, and trial-and-error testing. Both prototype and final designs were tested in the full-scale mining galleries at the Office of Mine Safety and Health Research (OMSHR) in Pittsburgh before being taken underground for field testing. Test results of the system in both laboratory and field studies show reductions in operator exposure to respirable dust when the operator is positioned directly under the protected zone of the canopy.

Jan 1, 2012

By Timothy D. Arnold

Barrick Gold’s Bullfrog underground mine, near Beatty, NV, was established as an after-thought to the main open pit. As open pit ore dwindles, the underground mining became increasingly more important as an ore source, and to the overall economics of the project. This situation is similar to many other mines. Today, there is a move towards underground mining in the United States. There are inherent problems in starting and operating underground mines in the shadow of any open-pit operation. Several attempts were made at the Bullfrog Mine for productive increases. Some were successful, while others were not.

Jan 1, 1996

By A. Korchevisky

Environmental self-monitoring is one of the advanced approaches for industrial sustainability programs. Organization for Economy Cooperation and Development (OECD) defines self-monitoring as ?the system of organizational and technical measures put in place and financed by [the] regulated subject? in order to ensure their compliance with regulatory requirements?1. Self-monitoring is beneficial for industrial operators, communities, and governments. Industrial companies use self-monitoring as a central element of their compliance management that allows them to fulfill their duties, obligations, and to avoid citations. When industries control their emissions and ensure workers are not exposed above the regulated limits, communities are better. It is impossible for an EPA, OSHA, or MSHA inspectors to be close to every emission source or workplace full-time. It is much more effective for industries to self-monitor, under due supervision. Occupational conditions are a very important part of industry and health and safety self-monitoring should be highly prioritized. In this paper we will research the regulatory basis and best practice of occupational self-monitoring. We will show that not only is self-monitoring a vital element of an occupational health & safety management system, but that you need a management system for affective monitoring.

Jan 1, 2012

By J. Drelich

The highly-efficient and economically-feasible technology for bitumen recovery from US oil sands using a water extraction approach was developed at the end of the last century. This water-based bitumen extraction process has been optimized based on observations and analysis of microscopic mechanisms of bitumen release from oil sands and the bitumen transfer to a froth product as well as measurements of interfacial properties of bitumen. The wetting mechanisms that occur in the diluent-assisted water-based processing of US oil sands include bitumen film rupture and recession on sand grains and bitumen transfer to nucleated and injected gas bubbles. These mechanisms are reviewed in this contribution.

Jan 1, 2007