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By Liming Yuan, Isaac Zlochower, RICHARD THOMAS, Thomas H. Dubaniewicz, Teresa Barone

Mining vehicle manufacturers are developing lithium-ion (Li-ion) battery electric vehicles as an alternative to diesel-powered vehicles. In gassy underground mines, explosion-proof enclosures are commonly used to enclose electrical ignition sources to prevent propagation of an internal methane (CH4)-air explosion to a surrounding explosive atmosphere. Li-ion batteries can create pressurized explosions within sealed enclosures due to thermal runaway. Researchers at the U.S. National Institute for Occupational Safety and Health (NIOSH) measured thermal-runaway pressures of lithium iron phosphate (LFP) cells as a function of free space within sealed enclosures and observed an inverse power relationship. A well-confined cell produced 4260 psia (294 bar) of pressure during a thermal runaway, far exceeding minimum pressure containment specifications for conventional explosion-proof enclosures. Results indicate that adding enough free space surrounding LFP cells can reduce thermal-runaway pressures to levels below that expected for CH4-air ignitions. Measured thermal-runaway temperatures were below the minimum autoignition temperature of CH4-air.

By Deborah Shields

Aggregate is an essential input to every economy, so governments need to ensure a sustainable supply of these resources through planning. There is also a need to shift from a linear economy to a more circular one, in which wastes are recycled rather than landfilled, so as to increase eco-efficiency. The purpose of the Sustainable Aggregates Planning in South East Europe (SNAP-SEE, SEE/D/0167/2.4/X) project is to develop a Toolbox for Aggregates Planning to assist governments and stakeholders in national, regional, primary and secondary, aggregates planning in southeast European countries. The Toolbox comprises documents on stakeholder consultation, data and analysis methodologies, a vision of best practices in aggregates planning and how to build an aggregates plan. The Toolbox will also support ongoing efforts to enhance minerals policy in the European Union (EU) as called for by the European Innovation Partnership on Raw Materials. Industrialized and developing nations see long-term and continued economic growth as essential to the well-being

Mine planners must select a single pit for design with the knowledge that the grades on which this selection is made are uncertain. This uncertainty is often ignored through the use of deterministic models of grade. This makes the mine planner?s job simpler but does not necessarily lead to the ?correct? or ?best? selection. Grade uncertainty is typically modeled with conditional simulation, which generates multiple possible realizations of grade that are equally probable (or improbable). M ethods for incorporating grade uncertainty into mine planning to date have either been perceived as being too complicated, not accessible or too time-consuming. This paper proposes a simple and efficient modeling approach to incorporating conditional simulation into pit optimization, which would be able to be applied in currently commercially available software. An example for R esolute M ining Ltd.?s Syama gold project in M ali shows the range of ore, grade and value outcomes associated with generating pits through a variety of methods.

Jan 1, 2013

By David M. Abbott

This paper is a companion to, and amplification of, the ?History? section of the 2014 version of the SME Guide for Reporting Exploration Results, Mineral Resources, and Mineral Reserves (SME Guide). The need for the careful examination and evaluation of mineral deposits has long been recognized. In the book De Re Metallica, Georgius Agricola noted, ?Moreover, a prudent owner, before he buys shares, ought to go to the mine and carefully examine the nature of the vein, for it is very important that he should be on his guard lest fraudulent sellers of shares should deceive him? (1556, p.29). Agricola further stated, ?Now a miner, before he begins to mine the veins, must consider seven things, namely: the situation, the conditions, the water, the roads, the climate, the right of ownership and the neighbors? (1556, p. 30). The elements of Agricola?s seven things, much expanded, are incorporated into the 2014 SME Guide. As reflected in this quotation, veins were the primary concern of mining until 20th century technology permitted bulk mining techniques. The need for standardization of reserve descriptions arose along with the development of western mining in the United States and the concurrent development of mining engineering and mining geology as professions. By the turn of the century, debate about terminology of various classes of reserves was in full swing. Herbert Hoover noted in 1909 (p. 16-17), ?The old terms ?ore in sight? and ?profit in sight? have been of late years subject to much malediction on the part of engineers because these expressions have been so badly abused by the charlatans of mining in attempts to cover the flights of their imaginations. A large part of Volume I of the Institution of Mining and Metallurgy has been devoted to heaping infamy on these terms, yet not only have they preserved their places in professional nomenclature, but nothing has been found to supersede them. ?Some general term is required in daily practice to cover the available field of visible ore, and if the phrase ?ore in sight? be defined, it will be easier to teach the layman its proper use than to abolish it. In fact, substitutes are becoming as badly abused as the originals ever were. All convincing expressions will be misused by somebody.? Hoover (1909) noted that the common terms at the time were: ? Positive ore or ore developed: Ore exposed on four sides in blocks of a prescribed size. ? Ore blocked out: Ore exposed on three sides within a reasonable distance of each other. ? Probable ore or ore developing: Ore exposed on two sides, ? Possible ore or ore expectant: Ore in whole or in part below or beyond the range of vision. Hoover stated that these, and similar terms, overlapped and had the difficulty of failing to account properly for geologic variation in metal distribution beyond the exposed face. Certainly assuming extension of values along a vein is reasonable, but how far? Also, these definitions are for vein deposits, not all types of deposits are in veins. Hoover (1909, p. 19), therefore, defined the following terms. ? Proved ore: Ore where there is practically no risk in failure of continuity. ? Probable ore: Ore where there is some risk, yet warrantable justification for assumption of continuity. ? Prospective ore: Ore that cannot be included in the above classes, nor definitely known or stated in any terms of tonnage.

Feb 1, 2014

By C. Eddine

"Can we use data to make communication effective? How does one successfully tackle the challenge of solving cultural differences and harmonizing the needs of diverse stakeholders while developing and maintaining a strong and reliable corporate image? Is it possible to achieve better engagement and minimizing risks with data? This paper aims to explore human rights and business procedures, the promotion of shared prosperity in a sustainable manner and the use of metrics to guide decision-making process. Among the topics examined are: • the significance of stakeholder engagement in community development projects; • the use of grievance mechanisms to give a voice to First Nations and communities / populations in vulnerable positions (including children and elders); • the benefits of configuring and implementing a feedback system in partnership with the communities. This research is a preliminary initiative and has limitations on the extent of the material used. The author acknowledges there is a vast amount of work and publications available on this subject, as well, as a variety of examples that have not been included. The intention is to keep developing this research to assess and expand how data can be used to minimize risks and improve engagement, in addition to inspire others to continue advancing this topic. Natural resources consumption is a reality that will not disappear in a foreseeable future. Several developments and operations are located in remote areas where communities in vulnerable situation and Indigenous Peoples live. Feedback systems are being ratified as a tool to help tackling the challenges of harmonizing cultural differences and fulfilling the needs of diverse stakeholders. Integrating social, environmental, and economic values plays an imperative purpose in preserving a productive and trustworthy relationship with stakeholders. Positioning social standards next to environmental and economic principles shows inclusiveness and firm intention of integration. We add value to a positive image of our industry by embracing responsibility for corporate actions and promoting their beneficial impact on the environment. The social context within communities, groups and organizations is dynamic and presents new challenges as connections evolve. There are wildly diverse expectations which one may need to address during exploration, construction and operating phases. Disagreements are an inevitable consequence of interactions due to the different needs and requirements of the parts involved. Nevertheless, balancing differences and solving conflicts can offer remarkable opportunities for improvement."

Jan 1, 2016

By Jaroslav Briancin, Katarína Gáborová, María Florencia Márquez-Zavalía, Marcela Achimovičová, Ol’ga Šestinová, Pavel Škácha

Naumannite (Ag,Se), a silver selenide mineral, was first discovered in 1828. This study investigates the structure, morphology, chemical composition, and leaching kinetics of naumannite. Mechanical activation in a planetary ball mill increased its specific surface area, enhancing the leaching rate of silver in nitric acid (HNO3). The study found that mechanical activation significantly improves silver recovery.

Jul 1, 2023

By S. K. MONDAL, K. K. K. SINGH, S. Singh, R. K. TIWARY, S. K. Chaulya, G. C. MONDAL, R. S. Singh, T. B. SINGH

In this work, a comprehensive field study was carried out to measure the background air quality status and identify the air pollution sources from opencast mines around a heritage site in India. Air quality modeling was conducted to envisage dust concentration due to existing and closed mines in the region. The air quality modeling exercise predicted that particulate-matter levels of PM10 and PM2.5 might increase in the ranges of 3.2 to 23.1 and 2.1 to 8.9 μg/m3, respectively, due to mining activities when some of the closed mines will be operated in the region without controlled emission. The predicted total PM10 and PM2.5 at the selected receptor locations were in the ranges of 86.39 to 194.89 and 34.82 to 99.55 μg/m3, respectively. Adequate measures were suggested to control air pollution from mining activities, and an intelligent dry fog system was designed to suppress dust emission efficiently from mineral processing plants and opencast mines. The developed system has special features for facilitating eco-friendly mining.

By G. A. Christie

This paper presents a vision system capable of providing an accurate estimate for the volume of stockpiles using 2D images. By imaging a stockpile from multiple viewpoints with a two-camera system, a 3D point cloud of known scale is generated using image-based 3D reconstructions. With a small amount of user interaction, the points that correspond to the surface of the stockpile are extracted and used to measure the volume. The hardware required for the two-camera system is light enough to be carried by a small unmanned aircraft and is a cheaper alternative to LiDAR while still being competitive in terms of accuracy. When testing the volume measurement algorithm on a stockpile of known volume, the measured output was found to have less than a 3% error from the ground truth.

By D. Hulse

Mineral resource classification is described in both the SME and CIM Standards for Mineral Resource Reporting. The CIM Standard states “… sampling … is sufficient to assume geological and grade or quality continuity between points of observation”, thus is a function of continuity and sample spacing. Continuity can be measured by use of a variogram model, but average sample spacing in three dimensions is more difficult to measure. The declustering algorithms provided with Geostatistics software, are commonly used to weight data for statistical analysis due to the sometimes-irregular spacing between drill holes during exploration. The weights are lower when data is closer, reflecting shared influence between samples, and higher for isolated samples reflecting independence. This paper will discuss the potential to use estimates of the declustering weight as an inverse relative measure for average sample spacing to gauge the confidence of the estimate independent of the single nearest sample. PROBLEM The classification of mineral resources and reserves has long been a combination of science, past experience of the estimator, judgment, and feeling. All of the definitions as presented in the standards of the various countries that participate in CRIRSCO are similar and deal with “sample points sufficiently closely spaced to support confidence in the continuity of …” This has been interpreted as the distance between the block estimated and the nearest sample (or samples). Geostatistics gave us the calculation of the estimation variance of the block, an implicit part of the calculation of weights in Kriging, to account for the confidence in the estimate. More recently, “Kriging Efficiency” has been used, however it is still dependent on the estimation error and responds in a similar fashion to the distance to the closest sample. It is also sensitive to the variogram nugget. Many of these methods result in very low distance/high confidence measures for blocks adjacent to a sample point with confidence decreasing (sometimes rapidly) as the distance to one nearest sample increases. This results in the “spotted dog” phenomenon where individual samples are surrounded by a higher classification near each sample decaying into pattern of decreasing confidence halos. In addition to the visual image of the spots, this raises the more practical problem of mine design when the classification changes between measured, indicated and inferred. This has led to ad hoc methods to classify material within the mining block so all of the stope receives that classification. These manual methods re both labor intensive and subjective. A popular technique is a multiple search method, where the estimator defines a minimum of number of samples from a minimum number of holes within a nested set of search distance that are used to classify estimates. These specified set of increasing distances are usually proportional to the variogram range. While this is generally a good technique and overcomes the spottiness of the closest sample or kriging error, it has certain issues including:

Jan 1, 2019

By R. Hawker, P. Singh, K. V. Jessu, P. C. Pinazzi, A. J. S. (Sam) Spearing

Rock bolts are highly important underground to prevent falls of ground and thus, ensure safety. In situ, the ground reinforcement is subjected to a combination of loads, such as shear, tensile, and/or bending loads. Studies have been conducted to evaluate the effect of either shear, tensile, or bending loads on the ground support. However, only a few studies have been done to evaluate the effect of combined load on the rock bolt performance. In situ, the order of loads acting on the bar cannot be predicted, and more than one load can act on the bar at the same time. Thus, a hybrid failure criterion was developed that covered all combined loading conditions. Fifty-eight un-grouted laboratory rock bolt tests were conducted in total under two load conditions: applying shear displacement to the rock bolt and then tensile load to failure, and applying tensile displacement to the rock bolt and then shear load to failure. From the test results, the failure criterion was developed based on regression analysis. A nonlinear relationship was determined for the loading condition variations. The failure criterion presented in this paper can be used as a guide in the rock bolt capacity design under all loading conditions.

Sep 8, 2020

By John R. Marks

Introduction An engineer is a builder and a problem solver. He uses knowledge of the properties of matter and energy to furnish the needs of society. Engineers form the bridge between scientific researchers and the general public, most of whom are technologically illiterate. Mining, metallurgical, and petroleum engineers extract minerals from the ground and process them into usable forms. Then, other engineers further process them into society's needs. Minerals engineers deal with more uncertainty than other engineers. Each ore deposit has its own personality and each ore is metallurgically unique. Minerals engineers, therefore, must be flexible, often applying larger safety factors and contingencies than other engineers, and frequently functioning as a jack of all trades. A minerals engineer can work in coal, oil, oil shale, base metals, ferrous metals, precious metals, industrial minerals, strategic minerals, or in exploration. Other mining jobs include banking and financing, education and research, marketing and sales, and government. As a minerals engineer, you may be among the first to work on the ocean floor or the moon. College Preparation A difference between college and industry is the type of problems to be solved. A typical college problem has an exact answer derived from given information. An industry problem is more apt to have a solution chosen from a number of alternatives. Information required for the solution is not given. It must be measured, calculated, looked-up, estimated, or otherwise derived. Solutions involve trade-offs, economics, and human factors, as well as application of physical laws and theory. When a college problem is answered, you move on to the next one. In industry, however, the headaches may just be starting with the implementation of the solution. Students often complain that they see little use for the theory they are learning. This is valid. A good professor will link theory and practice. Another difference between college and industry is the price of failure. In college, you can make a half-hearted effort in an assignment and take your C or D. On the job, however, poor engineering results in potentially effective projects being rejected and unsound projects being undertaken. Poor performance results in cost overruns, schedule holdups, oversights, disgruntled employees, irate bosses, unsafe structures, and unreliable systems. The costs are time, money, and possibly lives. The student pays the university for his work - not the other way around. So the rewards for good schoolwork often seem nebulous. But education must be viewed as an investment. Working for good grades will help you think better, learn more, receive better job offers, and perform more effectively on the job. There is no substitute for hard work. Avoid taking the easiest electives. If you desire a more liberal education or dislike rigorous physical sciences, mathematics, or engineering courses, change majors. Remember, you are training to be an engineer, not a computer programmer or market analyst. At least one summer of industry employment is necessary for minerals engineering students. The sooner you gain actual experience, the sooner you will know whether to change majors. Most large companies hire students during summer. It is best to send out applications around Christmas break. First and second year students usually work as laborers. Upper-classmen may work as engineering technicians. Students must sometimes choose between returning to a company at a higher position or trying a different company at a lower position, for more varied experience. Both alternatives have advantages. Do your best on these summer jobs. The company is watching. If you do well, the chances are good you will get a job offer when you graduate. Good references are important when you begin job hunting. Interviewing occurs near the end of your school career. The standard procedure is to send your resume with a cover letter to each company you are interested in. The resume for a graduating engineer with little experience need not exceed one page. The cover letter must be written for the individual company.

Jan 2, 1985

By S. Gering, R. Ruiz, C. H. Calderon-Arteaga, J. Barrios

"INTRODUCTION Located in the northeast corner of Zacatecas State, Mexico, the Peñasquito Operation is comprised of the Peñasco and Chile Colorado (Brecha Azul) deposits. Open pit mining (pre-stripping) began in 2010 and full production commenced during 2011. The open pit mines feed both a sulphide concentrator (mill) and a heap leach pad. The project is owned by Goldcorp, Inc. Penasquito is a poly metallic deposit with Au, Ag, Zn and Pb being recovered as payable metals. As a consequence of lower grade ores expected with advancing mine-life Peñasquito is facing a declining metal production profile. To maximize returns and asset value plant modifications including the addition of a carbon pre-float circuit and a pyrite leach circuit to improve recovery are currently being undertaken. This carbon pre-float circuit will enable the recovery of precious and base metals from carbonaceous sediments. This material is currently being stockpiled. With the associated increase in complexity in the process circuit, the requirement of the ore control system to accurately predict ore feed characteristics is critical to maximizing metal recovery at the Penasquito operation. The addition of the carbon pre-float circuit was also a key driver in allowing the Chile Colorado open pit to be developed. These conditions alongside Goldcorp’s drive to increase profitability, and maximize net asset value has created challenges. These challenges are numerous and are multifaceted, however the ability to accurately route materials from the ore control system is critical to site success, and some of these challenges have been overcome by the adoption and implementation of a new ore control (OC) technology. Examples of these technological innovations in the ore control program are discussed in this paper and include improvements in geo-modeling, material routing and reconciliation. Successful implementation of these elements has led to significant improvements in selectivity, performance, and data management, while reducing the variance between planning and execution, thus helping to drive overall improvement across the operation."

Jan 1, 2018

By L. Zhou, L. Yuan, D. Bahrami, Y. Xue

Underground mine accidents, such as mine fires, remain a health and safety risk to mine workers. Researchers at the National Institute for Occupational Safety and Health (NIOSH) are developing a data-driven, predictive model for characterizing the location and size of unknown underground fires. This study examines applying a machine learning-based model to predict fire size and location in a large underground metal mine based on hypothetical scenarios on the model performance. The results show that the size and location of an unknown fire can be determined with over 80% and 90% accuracy, respectively, and potentially help to reduce the risk of hazardous conditions for emergency response.

Feb 1, 2024

By T. J. De Mull

The Alligator Ridge Mine is located 70 miles northwest of Ely in White Pine County, Nevada. Development of the mine began in the late 1970's as a joint venture between Amselco Minerals, Inc. and Occidental Minerals Corporation, with Amselco as the operating partner. Early in 1983 Nerco Minerals Company acquired Occidental's share of the property. The mine and ore processing facility have operated at capacity since 1981 producing 680,000 tonnes of ore and 1,900 kg of gold per year. The gold ore deposits at Alligator Ridge consist of disseminated micron-size gold particles in a silicified siltstone matrix. The deposit comprises three separate but adjacent areas of mineralization that are designated as Vantage 1, Vantage 2, and Vantage 3 after the name of the basin in which the deposits lie.

Jan 1, 1983

By S. S. Peng

Hydraulic powered supports have been employed in the U. S. longwall mining for the last two' decades. Yet the sciences of roof control at the powered supported faces remain largely unknown. Many questions remain unanswered. To address the problems, field investigations were conducted from 1980 to 1984 in seven longwall faces (1-10)(Table 1). Some of the findings have been reported by Peng and Chiang (11). The basic geological conditions of these panels are listed in Table 2. The mining equipment used in these longwall panels are listed in Table 3. Instrumentation and Observation Programs Two events were generally instrumented: one was the hydraulic leg pressures of the powered supports, and the other was the canopy and base plate load distributions.

Jan 1, 1986

By Roger G. Rowe

The Crandon deposit, located in northern Wisconsin, is a 65.8 million ton Precambrian volcanogenic massive sulfide deposit which averages 1.4% copper and 5.8% zinc. The deposit is classic in origin, mineralogy and shape. Comprehensive understanding of the geology of both the deposit and the project site has been fundamental to the credibility and success of Project feasibility studies and regulatory permit preparation. Mine development in the current investment and regulatory climate requires thorough and timely application of geologic tools. From 1977-1980 geologic activities were focused on the typical objectives of orebody delineation, reserve estimation, depositional geology, and general site investigation. Results from these programs formed the basis for the Project's preliminary feasibility studies. Since 1981 further geologic investigations have provided criteria for project design, site management, and operational permitting. Activities have included mine entry position definition drilling, developing geostatistical reserve modeling, large diameter (150 mm) core drilling for mill pilot samples, rock mecha¬nics testing, and evaluation of the glacial overburden/deposit geohydrology for computer simulation.

Jan 1, 1983

By M. B. Daza, B. Lattimer

"Even with modern detection and firefighting techniques, mine fires continue to be a safety concern. However, some underground mine fires can be addressed with the remote application of high expansion foam, reducing firefighter exposure to hazards. The flow of this foam can be numerically or computationally simulated in order to gain a better understanding of its behavior, but rheology parameters are needed as inputs to produce accurate simulations. For this reason, this work studies the rheology of firefighting high expansion foam using a foam generator and Poiseuille –Flow Rheometer. Rheological parameters for foams with expansion ratios between 250-1280 are represented by the consistency index (k) and the power law index (n) due to the results show a strong agreement with the Power Law model for non-Newtonian fluid viscosity. Furthermore, experimental results show that high expansion foam behaves as a shear thinning fluid with a power law index around 0.4 and viscosities in the range of s 0.1 Pa-s and 0.042 Pa-s under shear rates between 44 ??-1 and 187.3 ??-1. INTRODUCTION High expansion foams are called to foams with expansion ratio greater than 200. Expansion ratio (??) is defined as the ratio between the volume of foam produced (i.e. volume of foam solution and volume of gas) and the volume of foam solution used (NFPA 2014). Because of its high expansion ratio, one of the most important application of high expansion foams is to fill or flood large spaces such as hangars, storage facilities and underground mines for fire suppression. The foam can fill large structures using small quantities of foam solution within a short time (Sthamer 2012) (Martin 2012). Although the specific high expansion fire suppression mechanism has not been understood on a quantitative basis, a possible mechanism is fuel isolation when the foam act as a physical barrier between oxygen and the flame. Furthermore, as a consequence of this contact water is evaporated, causing cooling of fuel and surrounding air. Besides, water vapor as product of water evaporation causes a dilution of oxygen concentration available to the fire (Fleming and Sheinson 2012). High expansion foam can be applied remotely by means of conduit pipes or in situ close to the fire. In most of the underground mines scenarios, fires have to be addressed remotely to reduce miner and firefighter exposure to the hazards (Smith et al. 2005). Although high expansion foams should not be blasted and must be deposited directly on the area of application because of their low density (Harding et al. 2016) sometimes it is complicated to apply it directly to the fire due to complex access areas at underground mines. In these cases, foam has to be applied far away from the fire. Despite of this fact there is a lack of knowledge in terms of rheological behavior of high expansion foam under high shear rates (Gardiner, Dlugogorski, and Jameson 1998). Furthermore, there are a few attempts to simulate numerically the high expansion foam flow due to the ignorance of its rheological parameters and its complex behavior. (Weaire 2008)."

Jan 1, 2018

By Ronney Rodrigues Silva, Renata Mendonca, Gabi Knesel, Cathrine Monyake

Locus Mining is working side-by-side with a prestigious iron ore company to evaluate the addition of Locus ESG-friendly green flotation reagents with the primary goal of improving recovery and grade. In this paper, we will focus on the cationic reverse flotation application. The most “established industry” reagents for cationic reverse flotation are amine as the collector, starch as the depressant, and in some cases frothers are also used (among them MIBC, pine oil, others). Here, we evaluate the synergies of different classes of eco-friendly biosurfactants and industry-standard reagents during the cationic reverse flotation method. Exploratory research was done first with an analog sample under different pHs, eight different biosurfactants with starch and no-starch, and a customized DOE was used to perform 145 microflotation tests. The results show Separation Efficiency from 20% (baseline) to 50% (biosurfactant), and Selectivity from 3.27 (baseline) to 5.67 (biosurfactant). Optimized result conditions were then applied to the iron ore samples received from our client to perform flotation tests on a Denver Lab cell. Similar results were obtained by improving Separation Efficiency and Selectivity, which corroborate with the previous work.

Feb 1, 2025

By Carla Da Corte, Kagisego Letsoalo, Ashma Singh

Banded Iron Formations (BIF) are sedimentary rock formations ranging in age from 0.8 to 3.8 billion years and consist of alternating layers of silica and iron. The thickness of the alternating layers varies between and within deposits, with this lithology forming approximately two-thirds of South Africa’s future low-grade hematite resources. The production costs for South African iron ore producers are approximately double that of the largest iron ore producers, namely, Brazil and Australia. This in conjunction with volatile commodity prices, necessitated a cost-sensitive beneficiation strategy for low-grade hematite to sustain the industry and extend life of mine. A BIF sample grading at 44% Fe and comprising predominantly of hematite and quartz with minor amounts of magnetite and goethite was subjected to three fines gravity processing routes to establish the amenability of this sample to beneficiation. To provide flexibility for iron ore producers who still have high-grade resources available, two product grades were considered, namely a 60% Fe product for further blending or a 63% Fe product for direct sales.

May 12, 2023

By R. L. Grayson, S. S. Eslambolchi

"In making strategic economic decisions, it is important for a mining company to gain insights on the impact of significant political, social and economic issues when planning for present and future mines. The size of any mine, measured by the average number of employees working in the mine, will likely vary according to the pressures generated by the significant issues from one year to another. The objective of this study is to develop a model that represents U.S. underground coal mine size transitions during the period 2002-2012 using data derived from the MSHA databases. Coupled with information on significant issues over the past ten years, this model is used to gain insight on the impact of the issues on mine sizes. Results indicate that the structural impact of the combined driving pressures can be discerned by examining the year-to-year stability of mine-size categories. The effects of The MINER Act, the Obama Administration environmental policies on coal, and the coal market are evident. The lessons learned from these analyses give good insights on what the industry and market responses have been on the structure of the underground coal industry over the period of study. INTRODUCTION It is apparent that key driving issues affect the structure and viability of the coal industry. The driving issues may be political, social, and/or economic in the final analysis, but are generally rooted in reaction to dramatic and publicized events or movements. Mine disasters, an increase in miners’ disease prevalence, strife in the coal fields, and negative environmental impacts on air, land or water can capture the attention of the media and the public. Some of the issues occur over a long period of time, like the current global climate change movement. The coal industry veteran can sense the changes in political and social sentiment, and attempt to react to the economic repercussions; however, the insights from the media and from unique combinations of driving pressures are difficult to fathom. Thus decisions made on inadequate information related to the driving pressures and their likely impacts could lead to missteps in corporate and market restructuring. One way to gain some more insight on the potential impacts is to examine the complicated restructuring of mine operations in reaction to the driving pressures of the recent past. This paper examines an 11-year history of the changes in the underground coal industry structure, as reflected by changes in the numbers of mines in various statuses by mine-size categories. Superimposed on the results of mine-size changes is a mapping of the key driving pressures that occurred over the same period, 2002-2012. It is assumed that using this methodology, some important insights can be gained on the immediate and delayed responses to the driving pressures during that period."

Jan 1, 2015