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By T. G. Carter

"This paper traces the introduction and use of fire-resistant (FR) fluids in hydraulic systems at underground mines in British Columbia. Reasons are given for the decision to make compulsory the use of such fluids in underground mines after January 1, 1975 by provincial government legislation. Examples are quoted of fires caused, or supported by, mineral oils which have resulted in loss of life and property.The basic principles of hydraulic systems are reviewed in order to present the effects of changing a system operating on mineral oils to one which must operate on FR fluids. Approximations of the cost of system conversions are given for certain machines and a brief survey is made of the various pieces of underground equipment which contain hydraulic systems operating on FR fluids.IntroductionIn 1948, Admiral Ben Moreel , who was then president of Jones and Laughlin Steel Corporation in the United States , wrote:""Although safe and healthful working conditions can be justified on a cold dollars-and- cents basis, I prefer to justify them on the basic principle that it is the right thing to do. ""(1)This paper will outline the introduction and use of fire resistant fluids at mine operations in the Province of British Columbia. That it was the right thing to do in enhancing the safety and well-being of every person employed at the mines was the prime consideration. That it may be justified on a cold dollars-and-cents basis is left for the reader to judge. The prime purpose of this paper is not so much to trace the efforts made by the individual mines to successfully introduce and use fire-resistant (FR) fluids in hydraulic systems, but to present an over-all picture of what occurred, in a collective sense, at the majority of mines which have ended up with a working FR fluid system. The problems attendant to the introduction of an FR fluid will be recounted in a manner which, it is hoped, will prove useful to those contemplating system conversions. Because the predominant fluid now in use is an invert, or water-in-oil. emulsion, this will be the FR fluid considered.Fluid Loss from SystemsThe quantities of various fluids required for use in hydraulic systems are extremely high. This statement in itself may appear to be redundant in that the capacities of the various systems should demand that a fixed amount of fluid is required for the initial filling of a system, with a further amount of fluid scheduled for use during subsequent fluid changes, i.e. at the recommended change intervals . If only this were the case!"

Jan 1, 1981

By André Gobell

"La distribution des éléments majeurs dans une séquence de roches volcaniques felsiques, la formation de Waconichi, au sud de Chibougamau, indique que les roches pyroclastiques du secteur ouest de ce segment sont chimiquement anormales si on les compare à la composition moyenne des roches volcaniques de Chibougamau: elles sont caractérisées par une teneur anormalement élevée en f er, en magnésium et en potassium et une teneur anormalement basse en sodium et en calcium; ce chimisme caractérise les encaissants des dépôts de sulfures massifs d 'origine volcanique.Les coulées rhyolitiques massives sous-jacentes au gite de cuivre-zinc avec or et argent de Lemoine ne montrent pas ou très peu d’altération de ce genre. Le schéma de mise en place des dépôts de sulfures massifs d'origine volcanique et la nature des roches en présence permettent de croire que la zone d'altération mise en évidence à l'ouest de la mine Lemoine puisse être reliée à la mise en place de ce gisement d'ou l'im portance de tenir compte des caractères texturaux des roches lors de l'interprétation de données litho géochimiques."

Jan 1, 1980

By L. Gutierrez, M. Pawlik

The rheology artificial mixtures of bitumen with fine quartz of varying bitumen content, as well as actual oil sand ores, was investigated under different physicochemical conditions (pH, temperature). All rheological measurements were conducted using a Haake Rotovisco VT550 rotational viscometer, connected to a fixture specifically designed to measure properties of settling suspensions. It was found that at low bitumen contents (1 %, wt.) the pH of the slurries was the most important parameter that controlled the rheology of quartz-bitumen slurries. At higher bitumen contents (10%, wt.), it was a combination of high temperature and high pH that gave the lowest apparent viscosities and yield stresses of the model mixtures. These model observations correlated well with the rheology data obtained for slurries of actual oil sand ores. The overall results were discussed in terms of aggregation-dispersion phenomena between bitumen and mineral particles.

Jan 1, 2009

Waste rock extracted from a mine is typically stored nearby on the surface. Such waste rock piles must be designed to ensure their geotechnical and geochemical stability during the mine operation and after closure. The optimal construction of a pile requires detailed planning. Deposition should involve benches of limited height to control the global slope angle, based on the long term factor of safety. It can also be advantageous to compact the top of each bench and to give the surface an outward inclination to control water flow by limiting infiltration and favoring lateral diversion. When part of the waste rock contains reactive minerals, it is also deemed necessary to use selective placement with the non-reactive portion to prevent direct exposure to natural conditions. The construction must be well documented, and include data from the monitoring program. These and related aspects are presented and discussed in the paper.

Aug 1, 2013

By G. F. Carr

"IntroductionFLUORSPAR has been found at several •localities in Newfoundland, but all the commercial deposits discovered to date are in the vicinity of St. Lawrence, a town on the southeast coast. Most of the veins are within six miles of St. Lawrence harbour, and between sea-level and an altitude of 400 feet. The St. Lawrence Corporation of Newfoundland, Limited, and Newfoundland Fluorspar, Limited, a subsidiary of the Aluminum Company of Canada. Limited. are the two producers.With the arrival of 1953, the St. Lawrence area entered upon its twenty-second •consecutive year as a producer of fluorspar. Production has increased more or less steadily during this period, as is shown by the fact that approximately one-half of the total shipments to date have been made during the past six years. Between four and five hundred men are employed by the industry, and more than $1,250,000 was paid out in wages and salaries during 1952. Shipments during that year reached an all-time high of 81,283 tons valued at $2,484,943, compared with 67,925 tons valued at $1,966,477 in 1951 (1).As a result of an agreement made in July, 1952, with the United States Defence Materials Procurement Agency, production of the St. Lawrence Corporation, Limited, and St. Lawrence Fluorspar, Incorporated, an affiliated company, will •be increased by .approximately 50,000 tons of acid-grade fluorspar per year. The contract extends over a period of four years, or until 150,000 tons of acid-grade concentrates have been produced."

Jan 1, 1954

By Sukumar Bandopadhyay, Arunapuram Sundararajan

"For the last three decades, the application of network planning has provided a basis for a formal and general approach to the discipline of project management. For fixed activity duration, a very simple algorithm commonly known as critical path method (CPM), gives the length of time required for the total project as well as indicates the activities which are vital to the completion of a project. Project Evaluation Review Techniques (PER T) on the other hand, generalize the above approach to recognize uncertainty in the activity durations by allowing them to be random variables. One of the misleading aspects of current "" PER T"" solution method is, however, the implication that there is a unique critical path. In general, any number of paths could be critical, depending on the particular realization of the random activity durations that actually occur. In this case, simulation can be utilized to estimate completion time of a project.In this paper, the concept of criticality indexing is discussed, and a simulation model application which defines the critical path based on the criticality indexing concept, to a longwall development - extraction network, is presented. The model also provides suitable scheduling of resources based on the resource constraints and smooth s out period-t o-period assignments. IntroductionThe successful management of large-scale projects require careful planning, scheduling , and coordinating numerous interrelated activities. To aid in these task s, formal procedures based on the networks and network techniques (variously called PERT or CPM) were developed. In its original form the completion time for individual activities of a project was assumed fixed and known in advance: this in turn led to the familiar algorithms for computing the critical path, earliest start time, slack, and so forth. The unreality of such an assumption is, of course , apparent in many contexts. Consequently, attempts were made to introduce probalistic activity completion times, allowing representation of the stochastic nature of most projects."

Jan 1, 1987

By L. K. Nenonen

"Given the properties, locations and quantities of material to be hauled and the dump locations and capacities, the designer wishes to select the type and number of trucks and loading equipment required. Accordingly, software is being developed to assist in creation of the equipment, material and road network data bases, in selection of equipment, materials and road networks from these data bases, and in evaluation of the expected productivities both in a rapid, non-interactive, approximate fashion and a more detailed interactive fashion which permits the user to act as superintendent, if he so chooses. The basic technology has been developed and applied to an open-pit copper mine and is being refined and generalized for oil sands and coal mining applications.BackgroundA set of mathematical and interactive computer models are under development to aid in the selection of equipment and operating policies for an open-pit oil sands mine being planned by Canstar Oil Sands Ltd. This paper describes the computer models being developed of truck haulage systems. Although the interactive truck haulage model is based primarily on a model developed by the National Research Council in collaboration with Glenayre Electronics Ltd. of North Vancouver and Lornex Mines Limited(2).(3l, substantial changes and improvements are being incorporated to greatly increase its generality re equipment types, road network characteristics, dispatching and supervisory policies, etc. Although this paper is principally devoted to the truck haulage model, discussion is included concerning its interactions with other models."

Jan 1, 1982

By R. J. Mitchell

"The use of hydraulically delivered classified tailings sands to provide ground support in large mining operations is still widespread despite recent developments of alternate backfilling methods and materials. The major disadvantages of the use of hydraulic fill are the costs and risks associated with slurry delivery. The main risk is that of bulkhead failure resulting from sand liquefaction due to insufficient operational control or due to dynamic loading from earthquake or rockburst. That risk may be eliminated by the pouring of a stiff cemented sand plug in the base of each stope prior to continuous fill pouring in that stope. An additional advantage of cemented plugs is that massive bulkheads are not needed. Instead, a temporary (removable and reusable) bulkhead can be used for plug forming.Physical model studies of fill pressures on a temporary bulkhead were carried out in a 3 m radius centrifuge facility. Fill pouring in-flight was carried out in order to model prototype stress paths. The results indicate that the average bulkhead pressure is likely to be less than 10 kPa under normal operating conditions and less than 20 kPa under the poorest anticipated operating conditions which include smooth walls, high slimes content and high water-content slurries. A portable bulkhead consisting of a central core and a surrounding sealing bladder was modelled and found to be effective. The use of different sizes of cores allowed the stress distribution adjacent to these bulkheads to be evaluated."

Jan 1, 1992

By Ross L. Sherlock, David J. Scott, Gordon MacKay, Wayne Johnson

"Abstract - The demographics of Nunavut indicate a very young and poorly educated population spread over wide areas in small isolated communities. The current economic sectors will be unable to expand and meet the demands of this emerging workforce. Given the realities of Nunavut, the most promising direction in which the economy may expand is through mineral development. The Nunavut Land Claims Agreement (NLCA) has established the legislative framework for sustainable development in Nunavut through mineral development. The NLCA has transferred ownership for much of Nunavut’s potential mineral resources to beneficiaries of the lands claim. Royalties generated from mining operations on subsurface Inuit-owned lands, and to a lesser extent on Crown land, will flow back to beneficiaries of the lands claim through their administrative company, which may then be invested in the communities. Additional benefits of mineral resource development in Nunavut will be realized through impact and benefit agreements.To realize the benefits from mining operations, Nunavut has to be able to attract and support exploration and development companies through the release of high-quality geoscience data. However, due to Nunavut’s isolation and the expense of conducting geoscience fieldwork, the jurisdiction lags far behind the rest of Canada in terms of quality and quantity of government geoscience. About 70% of the territory is inadequately mapped to attract exploration companies or to make informed land-use decisions. The role of government-funded geoscience in Nunavut is to stimulate exploration and discovery through new framework mapping and focused thematic projects. The timely delivery of high-quality geoscience products will attract exploration companies to Nunavut and further their efforts to discover and develop mineral resources in order that the subsequent benefits of this activity may flow to the beneficiaries of the NLCA as well as all other residents of Nunavut."

Jan 1, 2003

By N. Bahrani

Photogrammetry surveys were used to document a footwall slab failure that occurred at a surface coal mine located on the eastern slope of the Rocky Mountains. Photographs taken before and after the failure provided the pre- and post-failure geometry of the slope and the failed slab. A 2D finite element model was constructed using slope profiles. The model contained joint elements that represented the bedding surface upon which the slab slid and the model was used to analyze the footwall slope. The in situ stresses, rock properties and the bedding surface shear strength and stiffness properties are discussed. The process of mining out a valley and exposing a highwall was modelled. As expected, elastic valley rebound occurred in the model, but shear stress and shear displacement reversals along the slip surface were also observed. The modelling results provided new insight into shear strength degradation that occurs when the pit floor approaches and then passes a specific point in the highwall.

Jan 1, 2009

By H. Soto, P. Lacombe, R. del Villar

"During the summer of1989, Les Mines Selbaie, with the cooperation of Université Laval initiated a research project to evaluate the column flotation technology for its concentrator near Joutel, Quebec. The experimental work involved both a 5 cm by 11 m laboratory column and a 45 cm by 10 m home-made pilot unit Amenability tests were conducted using both units on various streams of the plant. Results showed that columns are not suitable for the copper cleaning circuit because the loss of precious metals, associated with the rejected pyrite, overcome the improved copper metallurgy. On the other hand, column testing at the zinc circuit showed improved zinc selectivity.Scale-up testing was', therefore, conducted on the first zinc cleaner concentrate using the laboratory-size column. The influence of variables such as porous parger grain size, wash water flow rate, airflow rate and froth depth values on column performance was' first assessed. Scale-up parameters were then determined using the optimal operating conditions from the previous tests. Simulation facilitated the determination of the most convenient plant-scale column arrangement.A number of conclusions concerning the experimental determination of scale-up parameters are also presented."

Jan 1, 1993

By B. H. Sadagah

"Construction of mountain roads at north westerly Saudi Arabia is a difficult task in rugged terrains, where the rock masses are steep slopes, and full of geomorphological constraints.Werka descent lies at the north west region of Saudi Arabia. The Werka descent, constructed four years ago harmed due to rainstorm. The rock masses are metabasalt and metaryolite tuff rocks. The road is eight m-wide, surround by unsupported sharp manmade slope cuts, reaches up to 15 to 40 m height on both sides. Failures took place at both sides of the road, and blocked it. The road of almost 2 km long subjected to all modes of slope instability such as rockfalls, manmade slope failures and debris flows in the absence of the remedial measures. The very precipitous 40 m-high rock slope-cut along the road has no benches, backed by a natural slope of almost 80 m height. Both types of slopes suffer from rockfalls and slope failure’s incidents, frequently took place mainly in rainy seasons. The steep manmade rock slope cut is less than 1 m close to the road, with no ditches, form a potentially source area for rockfall’s hazards.Intensive geotechnical study includes utilization of the RMR and GSI rock masses classifications indicates that the rocks are fair to poor quality. The DIPS, RocFall, Swedge, RocTopple, RocPlane computer program, in addition to GIS and DEM image utilized to perform modeling and deterministic analysis, in order to suggest the mitigation measures for the natural and manmade slope cuts and rockfalls. The seismic coefficients of 0.1 to 0.4 taken into consideration in modeling processes. Input parameters to model the rockfalls and slope failure’s characteristics were studied such as GSI, block size; seeder points, locations of fallen blocks; slope angle, restitution coefficients, and slope roughness. The programs modeled the proposed location, height and energy of the rockfall barriers, collectors, and rock bolts. Two manmade slope cuts studied and modeled utilizing the integrated techniques were to eliminate the risk of slope failures and rockfalls through the construction of remedial measures, this is the study objectives."

Jan 1, 2015

By A. M. Abdel-Rehim

The present work reports a study of production of thorium concentrate from Egyptian monazite by decomposition of ammonium carbonate solutions containing ammonium thorium and uranyl carbonate complexes. These solutions were obtained from the processing of monazite by alkaline leaching in ball-mill autoclaves, followed by selective separation of thorium and uranium from lanthanides by autoclave leaching of the hydroxide cake obtained with ammonium carbonate - bicarbonate solutions. The separation of thorium and uranium in the form of thorium concentrate from their carbonate complexes was achieved by different methods, including neutralization of solutions at pH = 6.7 by acid, addition of alkali at pH = 11.5, heating of solution at 100°C and processing of carbonate solution with steam under pressure in steel autoclaves. Processing of solutions of thorium and uranyl carbonate complexes in an autoclave with steam causes their decomposition. Complete recovery of thorium 99.8% and 98.4% uranium recovery in thorium concentrate was attained at 120°C and steam pressure 2 atm, within 10 min. Meanwhile, the recovery of lanthanides was low and did not exceed 1.1%. The thorium concentrate produced contains 67.82% Th, 4.6% U and 3.14% REE. All methods achieve complete separation of thorium and uranium from their carbonate solutions, but the first two methods are unfavourable for the industry due to the high cost of reagents and their inability to regenerate the ammonium carbonate. The decomposition of ammonium thorium and uranyl carbonate complexes with steam under pressure is recommended for industrial application for its simplicity and the ability to regenerate the ammonium carbonate.

Jan 1, 2004

By M. Pelser, H. Gous, J. H. W. M. Brits, K. Voogt

The effect of impurities; iron and selenium, on current efficiency and deposit quality in copper electrowinning was investigated using an at-line cell at the Rustenburg Base Metals Refiners’ Copper Tankhouse. The tankhouse is a direct leach, starter sheet electrowinning operation with a unique electrolyte composition. The effect of iron on the current efficiency in the at-line cell was found to be less severe than reported in literature. However, the distinction between the chemical impact of iron on current efficiency and the physical impact of iron on a starter sheet operation needs to be realised. The effect of selenium on current efficiency and deposit quality is also reported. INTRODUCTION Anglo American Platinum’s Rustenburg Base Metals Refiners’ (RBMR) Copper Tankhouse serves a unique function in the refinery flowsheet in that its primary functions are the removal of copper and production of acid for the leach circuit. This function needs to be performed to specification in order to keep the leach circuit operating optimally. Current efficiency is seen as an indicator of tankhouse performance and efficient energy use. The tankhouse plates starter sheets onto titanium blanks which, after stripping and preparation, return into the production cells for further plating. Approximately 78% of tankhouses surveyed (Robinson et al., 2013) use permanent cathode technology whereas older, smaller operations still use starter sheet technology. Drawbacks of the starter sheet technology are that the starters are thin and bend easily leading to increased shorts, they need to be removed after two days of plating to be manually straightened and are then returned to the cells. In addition, the electrolyte levels in the cells need to be adjusted during the plating cycle to improve loop adhesion to the cathode and reduce loop corrosion. The starter sheet technology is therefore very labour intensive and the final quality of the product is dependent on the quality of the starter sheets produced. In comparison, permanent cathode or direct plating technology lends itself to automation, allows for higher current densities and better cathode quality due to more robust geometric stability in the cell. The present barrier to implementation of permanent cathode plating at the RBMR Copper Tankhouse is the capital cost required to convert the tankhouse, i.e. blanks and stripping machine. At present, alternatives to titanium blanks, such as LDX 2101, are being investigated for the unique electrolyte composition of this tankhouse.

Jan 1, 2019

By J. Font

The RAF or copper fire refining process at the Caletones smelter of CodelcoChile consists of several pyrorefining stages that successively lowers the levels of S, Fe, Pb, As, Sb, Te, Se and to some extent 0 in the copper melt, allowing the production of high quality fire-refined copper of 99.93 % purity (RAF copper). This chemical feature of the RAF copper is only achieved by quite long processing times, and a considerable consumption of fluxes and fuels in the RAF vessels. The main goal of this study was to improve the RAF process performance by thermodynamic considerations and industrial scale tests, i.e., an in situ approach for the process as featured by intensive sampling, characterization and subsequent modifications. Thus, both theoretical and industrial data were derived, and based on kinetic and thermodynamic evaluations, a higher operational standard was achieved for the RAF process. These new operational practices allowed enhancing the overall economic of the RAF process, by reducing the time and operational costs, and consequently increasing the availability of the vessels.

Jan 1, 2007

By Donald F. MacDonald

METAL PRICES RISE WITHIN the past nine months, the mining industry of the world has been revivified by a spectacular price advance for the metals. ln fact, practically all geological raw materials have been marked up during this period. Reviving industry started the price rise, but the armaments race among the nations has intensified it. These factors, coupled with our decided building shortage, which must be made up, will probably maintain metal prices at decidedly favourable levels over the next two or three years, or longer. OUR MINERAL CIVILIZATION It is interesting to recall that in the past hundred years, while the white population of the world increased some three ta three and a half fold, the consumption of minerals increased seventy-five fold. In other words, ours is a mineral civilization. If we disregard short slumps, which we will occasionally experience, it seems certain that the bread upward trend in mineral consumption will be maintained for many decades into the future. Nations without reasonably abundant and diverse mineral deposits will eventually become nations without much power. Canada is blessed with a splendid store of minerals. Its mineral industry is now facing an exceptionally rosy future. What of the mineral industry of Nova Scotia? GEOLOGICAL RESEARCH ALLOWED TO LAG RN NOVA SCONA Many years ago, when geological science was in? its infancy, much geological study was carried on in Nova Scotia. In 1827, Francis Alger began work on the iron ores in the Bay of Fundy region. In 1886, E. R. Faribault began his series of remarkable papers on Nova Scotia geology. Between these dates, many others published papers on the geology of the Province. The most outstanding of this early group of geologists was Sir William Dawson, whose published works on Nova Scotian geology extended over the period from 1845 to 1891.

Jan 1, 1937

By JOHN H. HUDSON

Ceramic clays of the Prairie Provinces range in age from Lower Cretaceous to Pleistocene and Recent. Two significant ceramic clay horizons are the Paleocene Willo wbunch Member of the Ravenscrag Formation in Southern Saskatchewan and the Upper Cretaceous Whitemud Formation, which is found in Saskatchewan and Alberta. The Willowbunch Member is worked at one locale in Saskatchewan; the Whitemud Formation is worked at several locales in Saskatchewan and Alberta. Bentonite operations are found at Morden in Manitoba, Rosalind and Onoway in Alberta, and Wilcox in Saskatchewan.

Jan 1, 1984

By P. A. Geusebroek, N. A. Duke

Abstract - The Lupin mine, located in the central Slave province just east of the western boundary of Nunavut Territory, is a world-class example of a Neoarchean-aged banded iron formation (BIF)-hosted lode-gold deposit. At the minesite the gold-mineralized Lupin BIF, separating stratigraphically underlying psammitic wacke and overlying argillaceous turbidite sequences, delineates the Lupin dome, a hammerhead-shaped F2/F3 interference fold structure occurring at the greenschist to amphibolite facies metamorphic transition within the thermal aureole of the Contwoyto batholith. Detailed paragenetic relationships indicate that peak thermal metamorphism coincided with the switch from regional D2 compression to rapid D3 unroofing of the Neoarchean orogenic infrastructure. Gold initially precipitated with pyrrhotite, replacing amphibolitic BIF at the apex of the Lupin deformation zone, separating the east and west lobes of the Contwoyto batholith. Over the course of associated prograde/retrograde metasomatic overprints, gold was further remobilized during garnet and loellingite/arsenopyrite growth in chlorite-altered selvages of late-forming ladder quartz veins. A metamorphic model of ore genesis, with gold being scavenged and transported by metamorphic fluid that was shed and structurally trapped at the amphibolite recrystallization front, is favored over the previously proposed syngenetic and exogenic models of gold concentration that have tended to polarize genetic interpretations to date.

Jan 1, 2004

By Adam J. Szladow

"INTRODUCTIONThe low calorific value and the high moisture and ash contents of run-of-mine (r.o.rn.) lignite limits the utilization of Saskatchewan lignites to thermal power plants in Saskatchewan, Manitoba and western Ontario. On the other hand, the low sulphur content and the low mining cost make lignites potentially attractive for new coal markets, if suitable processes can be found for upgrading. Economic upgrading to a higher quality fuel would make lignites more acceptable for industrial and utility boilers.This paper presents a summary of the process engineering evaluation of coal upgrading technologies conducted in support of a study of selected lignite upgrading processes. The summary presents the relative advantages and offers specific comments on the application of coal upgrading technologies for lignites. ResourcesLignite comprises the largest fossil fuel energy deposits in Saskatchewan. The total resources of immediate and future interest exceed 27 billion tonnes. The measured and indicated lignite resources of immediate interest are large enough to last for over 200 years at the current production rate of about 10 million tonnes per year (Table 1).Saskatchewan lignitedeposits are present in three different geologic formations: (I) the Ravenscrag Formation of Paleocene Age in southern Saskatchewan; (2) the Swan River Formation of Lower Cretaceous Age in central north Saskatchewan; and (3) the Judith River Formation of Upper Cretaceous Age in central west Saskatchewan. The deposits in the Swan River and Judith River Formation are not currently of economic interest.The Ravenscrag deposits are confmed to four lignite basins, namely: the Estevan, the Willow Bunch, the Wood Mountain and the Cypress basin (Fig. 1). The estimated resources of immediate interest in the four basins are over 7 billion tonnes (Table I). These resources include lignite seams at least 1.5 m thick, at depths of less than 45 m.The average quality of lignite varies relatively little between the four basins considering the distance between deposits (Table 2). There is, however, a progressive increase in moisture and ash content, and a decrease in calorific value and carbon content as one moves westward from the Estevan to Wood Mountain and Cypress basins. The Estevan area deposits are of higher rank despite the fact that they are stratigraphically younger than the Willow Bunch deposits (Cameron and Marconi, 1979).In upgrading lignite to a higher quality fuel, it is important to know not only the average proximate and ultimate analysis (Table 2) but also other lignite characteristics influencing the product quality . For example, Figure 2 shows the effect of lignite HIC ratio on the product equilibrium moisture for hydrothermal treatment of lignite. It is apparent that lignites with a higher HIC ratio, or high liptinite content yield much better quality product for the same hydrotreatment conditions. Other examples of lignite characteristics which are important in upgrading include distribution of sulphur forms and mineral matter, maceral composition and degree of surface oxidation."

Jan 1, 1989

By Michael Samis

Conventional project valuation techniques, such as discounted cash flow (DCF) method, are more frequently being criticised for the manner in which they consider the interacting effects of uncertainty and project structure (including management flexibility) on project value. Modern asset pricing (MAP; often called ?real options valuation? when applied to the analysis of flexibility) is a more general valuation framework that corrects many of the shortcomings of common valuation methods. Previous mining applications of MAP have tended to treat the ore deposit as a homogenous entity. While useful for demonstration purposes, this is inadequate for practical application in industry. This paper presents a MAP valuation example that allows for the heterogeneous nature of an ore deposit. It shows that deposit structure may increase the complexity of the mine planner?s decision so that results of a standard DCF analysis, or a simple MAP analysis that ignores the details of deposit structure, are misleading. In the example, a management is considering the development of an adjacent low-grade zone while mining operations in a high-grade zone are ongoing. If the low-grade zone is developed before high-grade reserves are exhausted, the proposed development will include both low-grade zone development and a capacity expansion to handle additional low-grade reserve production. If development of these reserves is delayed until the high-grade reserves are depleted, then the low-grade reserves can be developed without a capacity expansion. A typical DCF analysis would reduce the management?s decision problem to three alternatives: 1) continue mining only in the highgrade reserves, 2) immediately develop the low-grade reserves and expand capacity, and 3) delay low-grade zone development until the high-grade reserves are exhausted. The model presented here allows the management to reconsider the development and capacity expansion decision on a discrete half-year basis. It delineates price regions, for given levels of high-grade zone reserves, in which it is optimal to develop the low-grade zone, defer low-grade zone development and abandon the mine irrevocably. The model presented here extends the ability of mine planners to describe actual project structure while using the MAP valuation framework that is already noted for its capacity to combine project uncertainty and risk insights with a dynamic project description.

May 1, 2001