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By Karl C. Dean

The current emphasis on environmental problems has focused attention on the massive nationwide accumulations of mine, mill, and smelter wastes that represent potential air and water pollution hazards. The pollution hazards can be reduced or eliminated by utilization or stabilization of these wastes. The U.S. Bureau of Mines, since the inception of the Solid Waste Disposal Act of 1965, has been conducting research to determine the practicality of various utilization and stabilization procedures. Investigations include partial extractions of desirable waste components and full utilization of the wastes as simulated soils or in ceramic or other structural products. Chemical, vegetative, and combined chemical-vegetative methods of stabilization have been actively studied. This report updates information previously developed by the Salt Lake City Metallurgy Research Center and presents the current status of antipollution solid waste work 1/,2/.

Jan 1, 1970

By P. T. Bissert, T. J. Lutz, J. A. Yonkey, G. T. Homce

"Underground refuge alternatives (RAs) require an air source to supply breathable air to the occupants. This requires pressure relief valves (PRVs) to prevent unsafe pressures from building up within the RA. The Mine Safety and Health Administration (MSHA) mandates that PRVs prevent pressure from exceeding 1.25 kPa (0.18 psi or 5 in H2O), or as specified by the manufacturer, above mine atmospheric pressure when a fan or compressor is used for the air supply. Research to date by the National Institute for Occupational Safety and Health (NIOSH) suggests that the design and implementation of PRVs used in RAs has not yet had sufficient performance analysis or technical development. In response to this need, NIOSH tested a variety of PRVs using an instrumented test fixture consisting of data acquisition equipment, a centrifugal blower, ductwork, and various sensors to determine if subject PRVs meet the MSHA requirement. Relief pressures and flow characteristics including opening pressure and flow rate were measured for five different PRVs under a variety of conditions. Subject PRVs included two off-the-shelf modified check valves, two check valves used in MSHA-approved built-in-place (BIP) RAs, and a commercially available valve that was designed for a steel RA and is currently being used in some BIP RAs. The test results showed relief pressures ranging from 0.20 to 1.53 kPa (0.8 to 6.1 in H2O) and flow rates up to 19.3 m3/min (683 SCFM). INTRODUCTION The Mine Improvement and New Emergency Response Act of 2006 (MINER Act) was enacted in the wake of three mine explosions/fires that claimed 19 lives that year. Intended to help improve underground coal mine accident preparedness, the MINER Act includes provisions that target mine safety issues in areas such as emergency response planning, adoption of new technology, training and education, and mine safety standards enforcement [1]. Section 13 of the MINER Act specifically directed NIOSH to provide for research into the effectiveness and viability of refuge alternatives (RAs) for underground coal mines. This mandate culminated in the 2009 adoption of changes to 30 CFR mining health and safety regulations, requiring underground coal mines to provide mine emergency RAs and associated components, to provide a life-sustaining environment for persons trapped underground. Such RAs can be either self-contained mobile units or built-in-place (BIP) facilities. The regulatory changes also include provisions establishing requirements for Mine Safety and Health Administration (MSHA) approval of RAs and their components, and among these provisions are numerous criteria for providing a safe breathable atmosphere under positive pressure within the RAs. One specific criterion for maintaining a safe RA atmosphere requires the inclusion of an air pressure relief valve that will activate at a maximum of 1.25 kPa (0.18 psi or 5.0 in. H2O), or at a pressure above mine atmospheric pressure in the RA as specified by the manufacturer when the breathable air is supplied by a fan or compressor [2]."

Jan 1, 2017

By George S. Barnett

The Equis and El Roble projects are located in the Cordillera Occidental of Colombia. The Equis vein deposits have sulfide ore reserves of 95.9.5.5 mt (105.770 st) grading 8.51 g/mt (0.248 oz/st) gold and 12.4 g/ml (0.36 oz/st) silver with 0.94 % copper. 1.10 a lead and 11.06% zinc. Ore reserves at El Roble are estimated as 1.1% Mmt (1.21 million st) grading 4.89% copper and 3.39 g/mt (0.099 oz/st) ,old. Geologically possible reserves at Equis may total 1.6.Mmt (1.76 million it). El Roble has the potential to contain several tens of millions of metric tons. Exploration included diamond drilling, trenching, channel sampling, rock and soil geochemistry, geophysics and tunneling. Erratic high grade samples affect the weighting of channel and drill core samples. Secondary reconcentration of gold is also a factor. Sample maps and graphs show the distribution of values to be highly variable. Geostatistical treatment of some of these data gave important guidelines for parameters such as sampling densities, drill hole spacing and confidence limits.

Jan 1, 1984

By John A. Sievert

Sedimentary deposits contain an appreciable portion of the world's supply of uranium. Predictions of nuclear fuel usage in the United States indicate that these reserves will have to be tapped if the domestic industry is to be the major supplier of fuels for the nuclear reactors. Techniques developed within the petroleum industry are a base on which to build economically attractive fluid mining processes for the recovery of these uranium values. The problems central to the success of such mining processes are the containment, control, and recovery of a narrow band of pregnant leach solution as it progresses from the point of injection to the point of production Given sufficient incentive, suitable solutions to these problems can be found

Jan 1, 1970

A conventional paddle-type mixer and a gravity flow mixing device were evaluated for conditioning of phosphate ore with fatty acid and fuel oil, and for acid scrubbing prior to cationic flotation. Gravity flow mixing required less residence-time, but slightly higher reagent concentrations to achieve recovery levels similar to conventional conditioning. Grade was less sensitive to reagent concentration using the gravity flow mixer. For acid scrubbing, the gravity flow mixer proved equally effective. In this paper, the effect of time, pulp density, reagent concentration, and emulsification on conditioning and acid scrubbing efficiency of the two devices will be discussed.

Jan 1, 1987

By Adrian J. Mathias

For many years excavations were made in rock exclusively by conventional blasting methods, and without concern for damage to the rock surfaces which remained after the excavation was completed. Recently, however, there is an increasing awareness for the importance of making rock excavations with as little damage as possible to the remaining rock surfaces; consequently, several revolutionary new precision blasting techniques have been developed during the past few years. These techniques, variously known as cushion, smooth- wall, perimeter, pre-shear, and pre-split blasting, basically involve the creation of a fracture plane in the rock between a series of blasted holes. The variations in each of these techniques are largely due to the differences in hole diameters, hole spacings, methods of charging, and sequence of blasting used to achieve certain specific results. The development of these precision blasting techniques was initiated by Canadian Industries Limited in 1953 at the time the Sir Adam Beck No. 2 Hydro-electric Project was under construction by the Hydro-Electric Power Commission of Ontario. Since then, these techniques have been somewhat advanced, and they have been applied with varying degrees of success to a number of projects. These projects include railroad and high- way cuts, dam spillway channel excavations, canal excavations, tunnel driving, shaft sinking, and other underground applications.

Jan 1, 1965

By John H. Bassarear

By 1968 Cyprus Pima was milling 38,000 tpd of copper ore using a conventional flowsheet consisting of three stages of crushing rod mills and ball mills. A 15,000 tpd expansion was put on stream late in 1971 using primary crushing, semiautogenous mills, and ball mills. Identical ore is treated in both concentrators. This paper shows the weight and life of each individual liner for each crusher and each mill over a four year period from 1974-1977. Power and media consumption are shown for the same period and a comparison is made between the two reduction methods.

Jan 1, 1980

By D. Stone, R. Pakalnis, B. Seymour

Most mines using backfill routinely carry out quality control (QC) testing of backfill mixes with unconfined compression test cylinders. This is true for paste operations, hydraulic fill operations, and cemented rockfill operations worldwide. However, a large number of mines simply do not prepare and test the backfill samples in a consistent manner and fail to properly analyze or interpret the test results. Conventional concrete test criteria are not applicable given the differences in the mix constituents and the fact that a large number of the backfill QC test cylinders typically fail to achieve the target strength. Standard industry practices are needed to improve the analysis and interpretation of QC test results and to provide a better means of determining if the backfill is achieving its intended target strength. This paper will attempt to lay the groundwork for standard industry practices and will address several key questions raised by operators, such as how laboratory test data compares to in-stope performance, and how many QC tests should fail before a red flag should be raised. INTRODUCTION Although paste backfill is widely used throughout the mining industry, cemented rockfill (CRF) remains as the backfill of choice in places like Nevada where very poor ground conditions mandate the use of underhand mining. The safety and stability of undercut entries beneath backfill is a function of the quality of the cemented fill, which is typically assured through routine quality control testing. In the absence of a backfill quality standard, most mines rely on concrete standards to design and interpret their backfill quality control programs. In the USA, these standards are developed and published by organizations such as the American Society of Testing and Materials (ASTM) and the American Concrete Institute (ACI). However, the application of these standards to cemented backfills can be very difficult owing to the high degree of variability in backfill mixes and the resulting variability in test results. To illustrate, the concrete industry standards denote that an acceptable (passing) test result occurs when the average strength of the duplicate test cylinders exceeds the target strength and no single test result deviates from the target strength by more than 10% (ACI 214R). Remedial measures must be taken if three consecutive tests fail. With mine backfills, it is safe to say that these criteria are rarely achievable. A further, more dramatic example is the accepted coefficient of variation for concrete QC cylinders. According to ACI 214R, the coefficient of variation (CV) should range from below 3% (excellent rating) to above 6% (poor rating). However, if this analysis method is applied to several backfill QC databases from operating mines, coefficients of variation are calculated on the order of 50%. Clearly, there is a need to develop better industry practices for assessing the quality of mine backfill and to assist mine operators with the interpretation of test results and the development of action plans in the event of undesired outcomes.

Jan 1, 2019

By C. H. Pitt

A jet slurry apparatus has been constructed to test corrosive/erosive wear properties of grinding ball metal. Plain high carbon steel heat treated to a hardness of about 60 RC was used. Slurries of quartz and chalcopyrite ore concentrate were used as the jetting media. Weight loss due to pure corrosion was determined by the linear polarization technique and weight loss due to pure erosion was determined by jetting while cathodically protecting the sample. By comparing the total weight loss with the sum of the weight losses from pure corrosion and pure errosion it was found that there was a synergistic effect between corrosion and erosive wear. Erosive wear rates are given as a function of pH and mineral type.

Jan 1, 1984

By Mirko Martini, Marcelo Benaglia, Andrea Codalli

Riachuelo Lot 3 forms part of a sanitation programme being implemented in Argentina to relieve the Riachuelo river basin from its current contamination. The programme, by far the most important in its kind in the country during the last decades, will expand the sewage capacity of Buenos Aires and will benefit an area of 4.3 millions inhabitants by intercepting a number of waste water discharges and conveying them to a new treatment plant prior to final discharge into the Rio de la Plata. The project foresees amongst other works the construction of an onshore 48 m deep shaft at the outlet of the treatment plant plus a 4,3 m inner diameter outfall tunnel of 12 km length. The last 1.5 km of the alignment is fitted with 34 vertical risers jacked from inside the tunnel to allow the discharge and dilution of the treated effluent into the Rio de la Plata. This paper describes the peculiarities and challenges, both in terms of design and in terms of construction, of the outfall tunnel, which was entirely bored under the Rio de la Plata using a 5.2 m cut diameter Tunnel Boring Machine (TBM). On one hand, the tunnel segmental lining was designed to work in tension during the system flow rate peaks while on the other the tunnel excavation faced a variety of complex conditions, such as crossing water bearing permeable soft ground formations and advancing at face pressures in excess of 3,5 bars for the entire route.

Jun 13, 2021

By C. L. Glorioso

As an introduction and credentials for our talk, let me take a moment to introduce you to Wimpey Worldwide and specifically to Wimpey Minerals, USA, Inc.

Jan 1, 1995

By Egon Pohl, Peter Eckl, Friedrich Steinhäusler, Johanna Pohl-Rüling

RADON EXPOSURE AND CARCINOGENIC CELL TRANSFORMATION The highest radiation burden to miners is due to inhalation of radon and its short-lived decay products. The quantification of the risk associated with this radiation burden is complicated by modeldependent lung dosimetry, insufficient accuracy of past human exposure data as well as lacking knowledge about potential synergism of various carcinogens. Nevertheless, it is evident from epidemiological studies of miners that inhalation of elevated levels of radon daughters is correlated with increased lung cancer incidence (UNSCEAR, 1977). The situation is further complicated by the lack of reliable data on the biological variability of the latency period for the development of lung tumor under varying exposure conditions. At present information on variation with age is scarce, however, it is indicated that the excess lung cancer rate for workers exposed to high radon levels is considerably higher, if exposure occurs at ages over 40 years as compared to under 30 years of age (Sevc, Kunz, Placek, 1976). Furthermore, latency period is shorter by 6 - 7 years for smokers exposed to elevated radon levels than for non-smokers (Fry, 1976). Analysis of US- and CSR-uranium miner data revealed that the mean latency period is in the order of about 15 years (Jacobi, 1973). These uncertainties, together with medical diagnostic shortcomings, lead to the dissatisfying situation that at present the detection of radon induced injury of mining personal is primarily the assessment of the endpoint, i.e. radiation induced cancerous transformation of lung cells with typically less than 10% chance for recovery. Therefore it would be advantageous to develop practically applicable diagnostic aids to indicate already early precancerogenic changes of cell characteristics. This would permit the identification of specific population groups at increased risk for the development of lung cancer, thereby increasing the chances of more successful medical treatment. Despite continuous improvements in the reliability of test methods for the diagnosis of cancer cells there is still need for techniques, which enable the detection of transformed cells before the onset of invasion of the host organism. It is generally recognized that the transformation of a cell into a malignant state leads to a change of the cell surface, indicating a correlation between membrane-specific immunological properties and loss of growth control. Surface alterations on cells appear to be responsible in part for the malignant state and are not simply secondary effects of the transformation (Schnebli and Burger, 1973). Furthermore, membranes of cancer cells differ significantly from those of normal cells, particularly, in permeability properties (Rastogi, 1976). In dying cells, proteins, glycoproteins, peptides, aminoacids and their breakdown products are released, which block the permeation of the membrane itself. A mammalian cell can be considered as a 3-phase system (interior, boundary, environment) with the membrane forming a heterogeneous barrier between two subsystems. Under normal circumstances a difference of chemical potential is maintained on both sides of the membrane, causing an ion gradient across and fixed surface charges on the membrane. This results in a membrane resting potential (MRP) between cytoplasm and the bulk medium. It has been shown that MRP is a highly sensitive indicator for cellular reactions due to physical, chemical and biological agents, particularly whenever phenomena of transport and ion gradients as well as permeability are involved (Redmann, 1980). The primary interaction of the agent "ionizing radiation" with any form of living matter occurs at the cellular level. The component with the highest hit probability is the cell membrane. In the study presented MRP-changes of human cells were investigated with simultaneous measurements during irradiation and post-irradiation intervals up to six days. Furthermore, the suitability of MRP-measurements of human cells was tested as an indicator for early changes of cellular properties prior to the histological confirmation of carcinogenic transformation. EXPERIMENTAL METHODS Lung cells The biological specimen used were cultured human lung cells and human lung biopsy samples. Monolayers of lung fibroblasts (W138) were grown in petridishes using conventional culture techniques. In addition, transformed lung cells (W138SV13, subline 2RA) were used applying similar culture methods. All petridishes were incubated at 37°C and only cells in logarithmic growth phase were used. Freshly excised lung biopsy samples were obtained from randomly selected male and female patients (20 cases), where suspected or unclear malignancies were indicated by clinical or X-ray observations. At the time of sampling 80 % of the patients were or had been smokers in the past. The samples were taken by means of a stiff bronchoscope introduced into the trachea under local anasthesia with 1 % Novesinsolution (preparation with Atropin and Pantopen). This permitted the observation of both main bronchi down to the segmental bronchials. From each patient two tissue samples were excised from the mucusepithelial layer under visual control with fiber optics and transferred immediately into 1 % NaClsolution. One sample was taken from the suspected

Jan 1, 1981

By J. M. Link

A technique is presented for the economic selection of a slurry pipeline with the aid of a computer. Mathematical models for the flows of homogeneous slurries are utilized. Only the pipeline and its prime movers are considered. Slurry flow properties are first obtained from rheology and/or pipeline data measurements. A rheological model is then selected for the slurry. It must be emphasized that the accuracy of the method is greatly affected by the accuracy of the slurry flow-property data. Approximate cost parameters may be selected from data for plain and lined pipes, centrifugal and positive displacement pumps, motors and engines. Cost data for the purchase, operation and maintenance of slurry pipelines are also described. A total cost equation for the ownership and operation of a slurry pipeline system is then established. The complexity of the equation is a function of the rheological model selected to describe the slurry. The equation is solved with the aid of a computer for several combinations of pipeline diameters and throughputs to yield minimum total annual cost for the system. A mean velocity is then computed to give the required throughput. The velocity is constrained by an upper and lower bound. A high velocity is undesirable from an energy consumption viewpoint and if pipeline wear is possible. On the other hand, the velocity must exceed the deposition velocity for a heterogeneous suspension or the critical velocity for a homogeneous suspension. There is no guarantee that the velocity developed by this method will lie within the constraints applied, nor that the constraints are even known. This is particularly true for heterogeneous slurries. An important feature of the method is the ease with which the variables can be adjusted to measure the sensitivity of the total cost to the variables. The purpose of the sensitivity analysis is to identify those critical variables that. if changed, can considerably affect the total cost. Mathematically, individual variables are changed and the effect of such a change on the annual total cost is computed. But from a designer's point of view, individual components in the system are changed to study their effect on the annual total cost. A change in one component of the system may involve a change in one or more variables. For example, the replacement of a steel pipe by a smooth-lined pipe will change the pipewall roughness and wall thickness as well as purchase, operating, and maintenance costs.

Jan 1, 1974

By Ramiro da Conceição do Nascimento, Horst Guenter Feldhagen, Rafael Piumatti de Oliveira

Mixed hydroxide precipitate (MHP) is a nickel intermediate product that has economical benefits to downstream leaching of lateritic marginal ores. Usually, this product is subsequently processed and refined to produce nickel by hydrometallurgy, but an alternative route can be made integrating hydrometallurgy and pyrometallurgy. Assessing the overall consumption of ferroalloys to obtain stainless steel, as an increasing practice performed in China, the synergy of nickel extraction from laterites by leaching and precipitation asMHP with the production ofMHP agglomerates applied as rawmaterial to furnaces of ferronickel production is a very attractive practice. This work aims to further the technological development of an agglomerated product feasible to hydro-pyro integration. The agglomeration experiments were performed by traditional pelletizing (firing the pellets) and cold bonded pelletizing (aging the pellets by appropriate stocking). Appropriate compositionswere prepared withMHP, additives and binders for each of these routes. A specific study of binder composition was made to find an adequate melting point. The produced pellets were tested to prove their properties by crushing strength tests. The standardization applied to iron ore was followed. The best result of crushing strength was 98.52 daN/pellet. The agglomerates with approved crushing strength for use in electric furnaces were smelted to produce alloys containing nickel; the agglomerates were characterized by scanning electron microscopy. The alloy obtained was metallic ferronickel with sulphide precipitates. Therefore, MHP pellets can be precursors of nickel alloys, which have to be refined to obtain the desirable composition.

Jul 6, 2020

By David D. Lambert

REE analyses of cumulate plagioclase from the PGE ore zone of the Stillwater Complex indicate that pressure fluctuations in the magma chamber acting on a single magma can- not be responsible for features such as the reappearance of Mg-rich olivine on the liquidus. The data is more consistent with a model involving multiple injection and mixing of geochemically distinct magmas. The PGE bearing sulfides of the J-M Reef are associated with such a re- appearance of olivine, indicating that the unusual location of the ore zone may be related to the addition of new magma, compositionally distinct from magmas that produced cumulates in the Ultramafic zone of the complex.

Jan 1, 1981

By R. H. King

Underground coal mining machinery utilizes portable electric sables, "trailing cables." to obtain power from load centers or distribution boxes. Cables are frequently damaged since mobile equipment, poor lighting, and restricted space are inherent to coal mining operations. Normally, the damage is repaired by splicing--the joining of one or more severed conductors and replacing insulation and jacket. Figure 1 illustrates a typical single conductor splice. Although the repair seems simple, difficulty of the splicing process is exemplified by the many safety hazards and frequent production delays that result from defective splices. Forty-two cable splice related injuries were reported to the U.S. Bureau of Mines in 1972 and 1973. Additionally, 17 splices related fires were reported in the three year period prior to December 1972. Assuming the damaged area is quickly located, an average splice time for a two conductor cable is twenty minutes. Some operators estimate this delay is incurred once per day per operating section. If one ton per minute is averaged throughout the shift, each unit could loose 4800 tons per year from splice delays. An estimated cost for materials and labor to make a splice is $20. The expenditure could result in a $4800 annual cost per section. The estimated expense does not include wages of other personnel waiting for the repair to be completed. Nevertheless, labor and materials cost is minor compared to the income lost from decreased production.

Jan 1, 1975

By Vince Saporito

Miners work in dangerous terrain, around the clock, with heavy equipment. Is there room for improvement in safety and standardization in the mining industry? Recent history would suggest there is a need for action. At a 2011 Spring Thaw conference in Denver CO, one speaker commented, ?We are having a number of incidents with workers getting ?pulled? into rollers or ?trapped? at transfer points when trying to manually clean (it) while the conveyor is still in motion.? It?s a troubling thought. These actions are specifically prohibited under U.S. Mine Safety and Health Administration (MSHA) regulation 57.14202. Another official from MSHA earlier this year indicated with today?s technology and policies presently in place, ?we should not be repeating the same incidents and violations year after year as we currently do.? But we are doing exactly that.

Jan 1, 2012

By R. A. Seitz

This paper presents a framework for analyzing the theory and industrial practice of coal flotation and gives some examples of its use for understanding flotation phenomena and optimizing/controlling flotation circuit performance. It is based on extensive laboratory and in plant test work conducted over the past several years by researchers at MTU as well as an analysis of the literature. Previous researchers have usually considered either the surface chemistry or the kinetics of coal flotation behavior, only rarely have these factors been considered together. However, these factors must be considered together in order to gain a clear understanding of the theory underlying coal flotation such that its practical application can be optimized. Fortunately, this complex objective can be achieved by considering the recovery and rate of recovery of the different types of particles present in the feed to coal flotation circuits and the fundamental mechanisms responsible for these recovery phenomena. The influence of three major groups of variables must be considered: control variables (reagent additions, aeration rate, etc.); disturbance variables (feed pH, percent solids, etc.); and circuit design variables (number of cells, circuit arrangement, etc.). Each of these groups of variables affects process kinetics in a clearly understandable manner, which, once determined, is extremely useful in circuit design and optimization. This paper includes a discussion of the use of the proposed framework to explain the effects of some coal characteristics on flotation performance. In addition, an example of using this analysis to optimize the performance of a coal flotation circuit using frother and collector addition levels is included.

Jan 1, 1985

By III Kimball

Mining wastes have received individual attention under the Resource Conservation and Recovery Act (RCRA) since its inception, in recognition of the special characteristics that distinguish mining wastes from other solid wastes. The Environmental Protection Agency (EPA) has recognized that: - Mining wastes are generated in much larger volumes than other industrial wastes. Most material handled in mining is waste (over 99% in many cases) and not marketable product, whereas waste is a small portion of raw materials used in most industries. Consequently, controls used for hazardous wastes may be technically infeasible or economically impractical. - Nearly all mining waste is managed at the site of generation and is land-disposed. . - Mining wastes typically pose lower hazards than other industrial wastes. Mining operations are located predominantly in sparsely populated areas and in arid or semi-arid areas with little surface water runoff and deeper water tables.

Jan 1, 1990

By A. G. Yapo, T. W. Camm

"Mining plays a key role in the development of modern civilization as a source of essential raw materials and provider of essential fuels, producer of jobs and a factor in support of the international balance of monetary payment (Camm, 2014). Professionals in mining locate, develop, design and manage ore deposits in an environmentally safe and profitable manner. As mineral deposits become increasingly scarce, new challenges face the industry. A current trend is to an increased emphasis on underground mining techniques for deeper deposits. Operations are safer now than before as companies understand better their work environment and the importance of mining responsibly.A continual challenge for the industry is accurately reflecting the costs and selling price of ore. An enduring characteristic of mining is the situation where the market typically determines the price of a commodity; the main control a company has on the bottom line is to control the cost of production.An attempt to bring light and clarity to the cost of their business will give a better idea to investors on the true profitability of the mining business. Gold producers face this struggle to accurately reflect the cost of production while also seeking to attract the interest of the investment community (Hill, 2013). In order to have a consistent format to report on their production costs, leading gold producers, through their alliance inside the World Gold Council (WGC), worked on the adoption of a new cost framework: the all-in sustaining cost (AISC) and all-in cost (AIC).Since 1996, the traditional cash cost reporting has focused only on the mining and processing costs incurred in mining an ounce of gold, which included the costs of goods sold (labor, energy, and consumables costs) and royalties (Table 1). But cash cost reporting ignores many important aspects, like sustaining capital, general and administrative expenses and site rehabilitation at the end of the mine life (Whelan, 2013). The cash cost was used to attract many investors into the business. In fact, the high gross margin (sales minus cash costs) has been promoted in past decades by the industry instead of the net or operating margin. As a result, even when the gold price was high, nearly $61/g ($1,900/oz) in August 2011, gold producers were not reporting excessive profits in their cash flow/income statements, to the disappointment and incomprehension of investors (Milstead, 2014). The truth was simply that the other costs omitted in the traditional cash cost were reducing the apparent profits.The disconnect led to a need for more accurate cost reporting in order to win back investor confidence and provide better understanding of gold mining economics. In 2012, the senior gold mining companies, including Gold Fields, Barrick Gold Corp. and Newmont Mining Corp., worked with the WGC to develop a new measure. This resulted in the June 2013 publication of the new framework AISC and AIC, which has been widely embraced by the sector since Jan. 1, 2014 (WGC, 2013).The adoption of the new cost template would have the dilemma of showing the real profitability of gold mine properties, which might alleviate taxes from governments and legislators, but it might also scare off investors toward more lucrative industries if not winning back their confidence."

Jan 9, 2017