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"Option pricing is used in finance for valuing options to buy (or sell) shares at some future date because it provides a convenient framework for quantifying values subject to uncertainty. As one of the main sources of uncertainty in mining is the price (sales) of the metal, this approach can also be used for valuing mining projects.The first part of this paper reviews options and option pricing; the second part presents the approach developed by Brennan and Schwartz (1985) for using option pricing to value natural resources. Several applications of this methodology have been published; these are described. From a mining point of view, the assumptions made by Brennan and Schwartz are too simplistic. The weaknesses are discussed with a view to improving an apparently promising new way of assessing the value of projects. IntroductionThe collapse of the British merchant banking group, Barings, has highlighted the risks that can be incurred by speculators and arbitragers in the futures and options markets. But this negative attention on futures and options should not make us forget their positive aspects. They can provide producers and consumers of metals with more predictable sales prices. The introduction of the new traded average price options, TAPOS, by the London Metal Exchange in January 1997 is a response to this need. Equally important, the theory that the finance industry has developed for valuing options provides an interesting framework for valuing mineral projects as well. While this paper was being revised, the South African gold mining house, JCI, announced that it was using a methodology based on option pricing for valuing the mineral rights to deeplevel gold resources (see Box 1)."

Jan 1, 1997

By S. A. Scott

In 1913, potash mineralization was recognized at a depth of over 7,000 feet in an oil-well hole (Norcanol's Radville No. 1 well) drilled near the town of Raddlle, Saskatchewan. Although, at this depth, potash is not considered mineable by conventional underground mining methods, this discovery shed the first light on the potash deposits of Saskatchewan in much the same manner as oil-well drilling was responsible for the first discovery of potash in the Carlsbad Basin of New Mexico in 19:25. The discovery near Radville alerted the oil-well geologists and, as a result potash mineralization was recognized in the Verbata No. 2 well, near Unity, Saskatchewan, in 1946. The mineralization, which was at a depth ?of 3,466 feet, graded more than 20 per cent K20 over a thickness of eleven feet. This discovery, as its depth, thickness and grade were all amenable to mining,

Jan 1, 1963

By J. P. Piguet, A. Hosni, J. P. Josien, H. Baroudi, R. Hadadou

"The iron ore mines in the Lorraine region of north-eastern France cover a surface area of approximately 3,900 km2 and involve more than 150 cities. A total extraction method was usually used during exploitation, but this technique was sometimes replaced by the room and abandoned pillar technique when it was necessary to protect surface buildings and infrastructure. Rooms and abandoned pillars were initially designed to ensure long-term mine stability. However, this aim was not always reached and numerous collapses occurred in the Lorraine iron basin, either during production or several years after closure. Several subsidence events were identified during a period of one century; the most recent event occurred in 2012. Two groups of events were identified. The first group represents events characterized by sudden surface movement, and the second group includes event characterized by progressive subsidence.Numerous studies conducted during the last decade helped improve our understanding the origin mechanism of spontaneous or progressive (slow) events. These studies led to identifying long-term potentially unstable underground zones (hazard zones), particularly deep zones located under buildings and infrastructure. The latest are currently monitored by microseismic networks. A similar high requirement level is needed for unstable zones without taking into account the kinetics of the subsidence, which is very important for safety. Thus, GEODERIS initiated this study, primarily to acquire a better understanding of the kinetics of the progressive events group and identify the main parameters that could explain why some pillars zones developed a maximum amplitude subsidence on surface within a few hours or days, while it took several weeks to months for others. In practice, the results of this study will facilitate adapting the requirement level of microseismic monitoring system to the kinetics of pillar collapse.To retrieve the real kinetics for each event, historical and sparse documentation was used. Firstly, archives research was conducted, especially testimonies and newspaper articles published during the events. This work helped to gather useful information that sometimes contained a precise description of subsidence duration. The archives research helped to classify some progressive events according to the subsidence kinetics. Secondly, a diagnostic of geotechnical and geomechanical parameters of historic events was realized, combined with a cross analysis of the data. The analysis took into account dimensions of underground workings (e.g., pillar lengths, widths, heights, introduction of a “pillar shape factor”, and stress amount). An original expression was highlighted to connect the pillar geometry to the stress state. The kinetics expression was calibrated to classify the historic events taken into account according to the kinetics of movements. The kinetic criterion was applied to predict subsidence kinetics for the potential unstable zones currently monitored by a microseismic system."

Jan 1, 2015

By C. Horstmann, D. Andreo, G. Barthold

"The concept of large single line grinding circuits provides a valid answer in project feasibility studies by reducing capital investment requirements compared to parallel lines for the same plant throughput rates. The benefits of this concept are reflected as well on the operational aspects, in terms of higher and greater process stability, and reduced operational costs mainly due to the associated lower maintenance expenditures. However, concerns exist in the minerals industry on whether large single line grinding could reduce the overall concentrator plant availability. The mechanical design and integrity, the mill and gearless mill drive integration, as well as assets management aspects of this type of equipment are the key to guarantee successful availability records. Together with an overview of the added value provided by large single line grinding circuits, this paper focuses on risk mitigation strategies during mill and gearless mill drive integration, as well as on the design of the equipment itself, for the key aspects which could put at risk the operations availability.INTRODUCTIONDespite a large long term demand for commodities, the mining industry has never faced complex challenges as it is doing today. Decreasing high-quality and accessible deposits, declining ore grades in existing mines, shortages of electrical energy (e.g. in Chile) and an aging workforce are the most significant among the megatrends affecting our industry. In addition to this, flat underlying commodity prices and high price volatility are currently posing strong requirements to miners when entering into the process of approving investments.Nowadays to get projects financially approved (optimizations, expansions, new plants), capital expenditure has to be reduced, as observed up to 30% compared to the last decade, and at the same time the plant design has to be such to demonstrate that operating costs will also be significantly lower than in the past.When it comes to the concentrator plant, the concept of large single line grinding circuits provides a valid answer in project feasibility studies by significantly reducing the capital investment requirements compared to parallel lines for the same plant throughput rates. The benefits of this concept are reflected as well on the operational costs, in terms of higher and greater process stability and reduced maintenance expenditures."

Jan 1, 2016

By K. Krishnapisharody, S. Clark, M. Barati

Different gas purging methods to metallurgical baths have been applied to date, among which are top lancing and bottom blowing through tuyeres or porous plugs. Among these, the porous plug bottom blowing technique has shown higher efficiency in gas utilization than tuyeres and top blowing, due to smaller bubble size and lower liquid velocity. However, the studies related to bottom stirring of metallurgical baths are limited to slag-less or thin slag-covered melts. In particular, there is no examination of stirring ability in conditions similar to Falconbridge's Slag Make Converter, where the bath is covered with a thick slag layer and a stream of solids is charged on the bath from top. This study was undertaken to investigate the application of gas purging through a porous plug in stirring in and melting of the solid feeds. The spreading behaviour and melting time of a solid layer forming on a plume created by stirring were calculated using the existing models. The results show that formation of a thick solid layer, specifically in areas beyond the plume region is very likely. Nevertheless, the thickness of the layer and melting time do not appear unreasonably high. It is predicted that by proper controlling of gas flowrate and plug configurations, successful solid charging through the mouth can be practiced.

Jan 1, 2007

This work illustrates the potential of two welding processes for joining AA1100-16 vol.% B4C metal matrix composite: laser welding process using a 4 kW Nd:YAG laser and Friction Stir Welding. A comparison is made between these two welding techniques in terms of microstructure and mechanical properties of welded joints. A large amount of brittle needle-like phases, together with some residues of B4C particles were observed in the fusion zone of laser welded joints. The use of Ti filler can improve the microstructure and increase the joint efficiency from 63% to 75%. On the other hand, the friction stir welding process being a solid state welding technique is interesting as it avoids the formation of brittle intermetallic phases. In addition, the breakage of B4C particles and the grain refinement of the matrix were observed in the weld zone. Consequently, FSW joints show much better mechanical properties than laser welded joints. Up to 100% joint efficiency can be achieved by FSW for annealed AA1100-16 vol.% B4C materials.

Jan 1, 2011

By L H. Warren

The types of equipment available for generating a plasma have been reviewed. The efficiency and potential of the plasma generating equipment used in performing extractive metallurgical reactions have been determined. A general classification of the reactions that might be per-formed in a plasma has been proposed. Experimental work done on extractive metallurgical plasma reactions, heat transfer between the plasma and solids, and the quench of the products of plasma reaction has been summarized. From the preliminary results it appears that the high-intensity are or the transpiration-cooled anode plasma torch offer the most promising areas for further research. C ONSIDERABLE world-wide research effort is currently being devoted to the development of processing technologies which employ the new high-temperature generating devices that have appeared over the past few years. The plasma flames produced by these devices offer the potential for subjecting materials to any single gas or mixture of gases at temperatures up to 20,000°K. With these conditions available, many reactions in extractive metallurgy,

Jan 1, 1965

By Mark W. Booth

THIS paper deals with the subject of inbye power as the mechanical . engineer sees it, and invites discussion, particularly from the electrical engineer. At the outset, it will be necessary to clear the ground a little by some definite statements. In this question of compressed air versus electricity for the transmission of power and driving of machinery in underground workings, we must see that there are definite fields that compressed air on the one hand, and electricity on the other, can fill to much greater advantage than the other, and in which there can be little or no direct competition, at least for the present. It is under conditions where these fields overlap, and as to where the line must be drawn between the two, that the respective merits of each must be considered. Steam was the first means used to transmit power from the surface of a mine to drive underground machinery, and so long as distances were short and means possible to ensure fairly efficient use of the steam, and where the fire hazard was not in evidence, it gave fairly efficient service. I have in mind an instance during my own connection with the mines-a duplex pump at the shaft bottom at Princess colliery, driven by steam, and which used the steam compound and condensing; and, but for the mechanical difficulties, it was a not inefficient proposition. The steam was taken direct from the surface boiler-plant through a line down the shaft, and used directly at the pump, being in effect a straight conversion from coal to steam to work done. It was the mechanical arrangement, and failure of the pump in that direction, that led to its removal and replacement by something better in the way of an electrically driven turbine pump. Given modern mechanical arrangements, such as a steam-turbine drive on a high-speed turbine pump, and all other parts made in accordance with best practice in the art of steam generation and use, a steam-driven unit fully as economical would have been obtained. But the central electric supply station, and all that that means or promises (not always the same), turned the scale against steam.

Jan 1, 1936

By I. Nakatsugawa

Chemical conversion coating is a process to create thin oxide/hydroxide film containing several inorganic/organic compounds by way of chemical deposition reaction. In case of the application to Mg mobile electronic housings, the film should possess a good electric conductivity while keeping adequate corrosion resistance and working as a paint base. The use of toxic/hazardous chemicals is strictly prohibited from the environmental aspects. This paper describes the recent trend of conversion coating used for Mg electronic housings and analyzes critically from the point of surface technology. The importance of cleaning process and understanding of surface microstructure are particularly emphasized with several experimental results.

Jan 1, 2006

By Qin-yong Ma, Jing-shuang Zhang, Bo Han, Pu Yuan

In order to improve the utilization rate of blasthole and blasting effect in vertical shafts, 5 kinds of millisecond blasting model tests with three circle vertical blastholes have been conducted in various delay times with concrete as model material. The blasting effects of millisecond blasting model tests are investigated from cutting volume, cutting depth, and blasting fragmentation, then a reasonable delay time is obtained. In the middle of concrete model, there are 4 blastholes uniformly distributed in the first circle, 6 blastholes uniformly distributed in the second circle, and 10 blastholes uniformly distributed in the third circle. Each blasthole is charged with one millisecond delay electric detonator, and the rest is blocked with stemming. The depth of blastholes in the first and second circle is 180mm, which is 20mm deeper than those in the third circle. After initiation, the blasting cavity is cleaned up, then the cutting volume and cutting depth are measured. Meanwhile, the blasting fragments are gathered and have analysed by function Rosin-Rammler. The test results show that when the inner two circle blastholes initiated simultaneously and the third circle blastholes initiated with millisecond delay, the reasonable delay time is 50 ms. At this time, the cutting volume and cutting depth of blasting model are 3920 cm3 and 68 mm respectively. The fragmentation indexes of blasting fragments, X50 and X80, are 53.2 mm and 74.6 mm respectively. While when all three circle blastholes initiated with millisecond delay, the reasonable delay time is also 50 ms. At this time, the cutting volume and cutting depth of blasting model are 10705 cm3 and 118 mm respectively. The fragmentation indexes of blasting fragments, X50 and X80, are 51.0 mm and 81.7 mm respectively. The researches indicate that for millisecond blasting with multiturn blastholes, the reasonable blasting scheme is multiturn blastholes initiated in millisecond delay and the reasonable delay time is 50 ms.

Jan 1, 2015

By G. P. Contractor

Medium and low carbon steels, modified with uranium, were studied in order to evaluate the influence of uranium on forge ability, mechanical 11roperties, response to heat treatment and microstructure. Uranium contents ranged up to 0.70 per cent. The medium carbon steels are hot short if the uranium content exceeds about 0.35 per cent. More uranium can be tolerated in low carbon steels. The hot shortness is caused by the formation of intergranular phase UFe2. Critical transformation temperatures, Jominy hardenability, and resistance to tempering are not significantly affected by the 11resence of uranium. Similarly, uranium has little or no effect on the tensile properties of carbon steels. The addition of uranium has a favourable effect 11n the stress-rupture characteristics and some beneficial effect on fatigue properties. However, more results are required for verification. In the steels investigated, it seems that most of the uranium carbide combines to form complex inclusions of U (0, C, N) or (C, N), rich in oxygen or nitrogen or both.

Jan 1, 1963

By C K. Bell, L. S. Collett

An AFMAG survey was flown in 1968 over the Upper Nelson River area, Manitoba. The flight direction was northwest-southeast and flight spacing was 2 miles. In the Cross Lake Subprovince, AFMAG showed that an isolated peridotite outcrop was part of a dike that extended over 80 miles. Diabase dikes are not always marked by an anomaly, but isolated cross-overs, when used in conjunction with geological and magnetic data, permit their extrapolation. Anomalies coincide with areas of sulphide mineralization. In the Flin Fion Subprovince, known and unknown northeast-trending faults are detected. The Berry Creek fault was extended south through Tramping lake, then under the Paleozoic cover. Conductors were detected at, or near, the axes of major synclines within Amisk and Snow Group sediments. Granitic terranes have low conductivity and, because they are characterized by smooth AFMAG profiles, they can be delimited. AF.MAG is being recognized as a geophysical method that can aid geological mapping and interpretation. Its most important contribution to the geologist will be in regions where out-crops are sparse.

Jan 1, 1971

By R. Heikkilä

In this paper the utilisation of building information models (BIM) and construction automation on building sites is discussed. A lot of research has been carried out to develop new applications for using BIM to assist construction site planning, different operations and logistics. The methods of production control and management on site utilize BIM together with machine control and navigation systems. In Finland machine control systems and the automation of construction equipment is widely used in infrastructure construction. Recently similar methods have been introduced also in building construction. This paper describes some latest Finnish examples where BIM-software is used for the planning, execution and control of building construction operations. University of Oulu has studied methods and technologies to capitalize BIM-models. The research has been mainly in infrastructure construction but the activities have recently been extended to building construction. In this paper a BIM-based tower crane operation and control system is discussed as a case study. The aim of this study was to highlight the potential areas were automation can increase the crane productivity and improve site operations and logistics. The construction site managers and tower crane operators interviewed in this study were experienced in using BIM-models on site.

Aug 1, 2013

By W. C. Zhu, C. H. Wei, L. L. Niu

With an increase of mining depth, a series of mining-induced hazards such as rockburst, coal and gas outburst, roof collapse, and water burst are getting more serious and more frequent. The intrinsic mechanism responsible for the occurrence of mining-induced hazards is the damage and unstable failure of rockmass or coal seam. The most distinct difference between deep and shallow levels is the so-called three ‘high’ (H3) conditions, i.e. high geo-stress, high fluid pressure and high geo-temperature. Therefore, the response of rock or coal to the deep mining operation is a phenomenon involving thermal (T), hydraulic (H), and mechanical (M) processes. Most importantly, mining excavation may vary the rock stress condition greatly, which may be a key factor to trigger the mining-induced hazards such as rockburst. In this regard, it is of great significance to clarify the damage and failure mechanism of rock and coal under coupled THM conditions, in order to clarify the rock failure mechanism responsible for the occurrence of mining-induced hazards. Thereafter, the mining-induced hazards cannot be predicted with confidence by considering each process independently. Of course, the requirement to include coupling of these processes depends on the specifics of the mining-induced hazards under consideration. For example, the water inrush is considered as a coupled hydro-mechanical (HM) process, in which the unstable failure of rockmass occurs under the combined contribution of geo-stress and water pressure. As for the coal mining at depth, in addition to high geo-stress and gas pressure in coal seam, the high geo-thermal condition that may greatly change the adsorption / desorption of gas and gas flow should be taken into account. Firstly, a general-purpose mathematical model for rock damage and failure process under coupled THM conditions is formulated based on damage mechanics principle, and it is solved by finite element method (FEM). In this model, the deformation and damage of rock, fluid flow and thermal transfer in rock would interact with each other, one process affects and initiation and progress of another. Then, the model is used to predict the mining-induced water outburst, where it is simulated as coupled hydro-mechanical (HM) problems. Based on the numerical simulation, the dimension of water-proof pillar is designed. Finally, the gas drainage from deep coal seam is numerically evaluated, where the coupled coal-gas interaction considering the effect of gas adsorption/desorption, gas flow in coal seam and geo-stress and geotemperature, is comprehensively taken into account. The proposed model could be used for clarifying the mechanism of mining-induced hazards in deep-level mining.

Jan 1, 2015

By Margaret Anne Stephenson

While the concepts of Aboriginal title share a similar jurisprudence in both Australia and Canada resource development regimes on Aboriginal title lands differ significantly. In Australia, the process is the right to negotiate with mining proponents. In Canada, the process is the duty to consult with government regarding mining projects. This paper compares and assesses the processes for ?consultation and negotiation? with Indigenous peoples when development actions (particularly in the context of mining resource development) impact Indigenous property rights and how agreement making can be progressed. This paper will question whether the resource development processes afford Indigenous people?s property rights full respect when mining developments on Indigenous lands are proposed.

Aug 1, 2013

By N. W. Xu, M. D. Wei, F. Dai, B. Li

"Chevron notched samples achieve general acceptance for measuring the Mode-I (opening mode) fracture toughness of rocks. The cracked chevron notched semi-circular bending (CCNSCB) sample, which is developed from the International Society of Rock Mechanics suggested the cracked chevron notched Brazilian disc method, has recently received much attention. However, these chevron notched methods have not been fully mastered, some ideal assumptions based by their theories and formulas, such as the straight-through crack assumption (STCA), have not been verified detailedly. Fractures of CCNSCB specimens were numerically simulated considering different heterogeneities, geometrical and mechanical parameters. The results show that, the real fractures of CCNSCB specimens are never satisfied with the STCA. In fact, micro fractures not only occur in the notch tip but also the two chevron edges. Consequently, the crack front features prominently in a shape of parabolic curve, far from being straightthrough. Moreover, curvature of the crack front is only affected by shape of the chevron ligament. Cracks usually start from two sides of the notch tips rather than center of the notch width, and propagate deviating from the postulated fracture routes. These fracture mechanisms induce errors with the measurements, and thus more attentions should be paid to the real fractures of the chevron notched samples for measuring fracture toughness more accurately. INTRODUCTIONWith the increasing requirement of people for resources and energies, frequent rock engineering activities have been conducting, such as underground excavation, oil exploration and deep burial of nuclear waste. Many problems appear in rock fracture. Consequently, there are more and more attentions paid in rock fracture mechanics due to its broad application prospects for solving these engineering problems. Since Mode-I (opening mode) fracture is the most common failure mode in rocks, Mode-I fracture toughness is a primary parameter to predict rock mechanical properties in actual engineering, and thus its accurate values are necessary to the researches of rockburst, rock mass slope stability, rock cutting, hydraulic fracturing, tunneling, et al. Therefore, it is thus significant to evaluate and study relevant methods to obtain the reliable value."

Jan 1, 2015

By M. Aushouri, S. H. Mansouri, N. Aminizadeh

A thermo-chemical model of the Peirce-Smith copper converter has been developed to predict the molten temperature. The primary assumption of the model was that all matte, slag and gaseous phases in the converter were in thermal and chemical equilibrium. In this model, the matte components were considered only as copper, iron and sulfur elements. In the slag making stage, all the reacted iron was converted to fayalite. The reaction rate of iron and oxygen in this stage was considered to be constant. The converter temperature was calculated by heat balance over time. The model was validated by a detailed comparison with measured industrial data. A good agreement was obtained. The converter temperature depends on process parameters such as oxygen efficiency and molten emissivity.

Jan 1, 2007

By H. D. Goodfellow, R. A. Elliott

"This paper covers the evolution of large mills and autogenous grinding and compares grinding practice in the iron ore industry with that in the base metal industries. Comments on novel methods of grinding are presented for discussion. Recent developments in the field of classification are briefly reviewed. A systems analysis approach to grinding circuits is discussed. Finally, a point is made for establishing a group within the industry with the purpose of developing a comprehensive evaluation of grinding research and development."

Jan 1, 1971

By Sylvie Lévesque, Frederic Couët, Laura Pérez-Barnuevo, Cory Hennessey

Determining mineralogical characteristics of samples throughout the iron ore concentration process – from drill core samples up to the concentrate – is critical to process improvement and remediation. However, assessment of mineral proportions, liberation, and texture, although essential, can be time-consuming and costly. Thus, a mineralogical study is often not performed or only restricted to a limited number of samples. New iron ore deposits or new ore zones in active mines will bring new challenges as they are known to be problematic due to their lower grades, complex textures and presence of mineral impurities. In those cases, applied process mineralogy will be necessary to understand and to diagnose potential processing issues. To take full advantage of mineralogical information along the iron ore concentration process, new tools are being developed to provide mineralogical data based on texture, composition and liberation. In an early stage at the mine, the automated identification of drill core textures could provide essential information for the prediction of ore concentrability and grindability. In a later stage, the automated modal tool, combining the knowledge of the iron ore mineralogy of a specific deposit and the results of chemical analyses, can quantify the mineral proportions of the ore; results show good agreement between mineral estimation via chemical analysis and modal analysis using a Mineral Liberation Analyser. A bulk mineralogical analyser allowing semi-quantitative evaluation of the liberation of iron oxides is being validated. The results from the bulk mineralogical analyser will eventually be linked with the mineral proportions issued by the automated modal tool to provide complete mineralogical characteristics of iron ore samples. Ultimately, these mineralogical tools could provide valuable and timely insight for predicting concentrators’ performances or troubleshooting gravity separation processes.

Jan 1, 2016

"Developing markets for western metallurgical coal have continued to stimulate considerable exploration activity in the Rocky Mountain foothills and to influence major segments of a wide-ranging carbonization R&D pro-gram. Adjunct studies have included expanded petrographie investigations.Coal preparation has• been principally directed toward utilization of prepared small coal and was, like much of the year's combustion work, strongly influenced by concern over atmospheric pollution. Particular attention has been given to desulphurization and to the suppression of pollutants in combustion systems.In the area of non-fuel utilization of coal, interest has centered on plant nutrients and on a series of coal-based carbons which, inter alia, possess utility as filtration media.Other projects included the development of improved sampling and analytical methods, investigations into the effect of storage on coal proper-ties and R&D in solids pipelining. In addition, a significant volume of basic 'uncommitted' research has been maintained."

Jan 1, 1968