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By Derek du Preez, Andrew Hall, Timothy M. Pelech

Net Present Value (NPV) derived from Discounted Cash Flow (DCF) analysis remains the dominant metric for evaluating mining projects despite its well-documented inability to capture managerial flexibility under uncertainty. DCF assumes that all risks are perfectly priced by financial markets. This is an unlikely assumption for volatile commodity prices, geological variability, or the array of mining technical and operational risks present on all mine sites. Real Options Analysis (ROA) was developed to remedy this limitation by explicitly valuing the ability of managers to defer, expand, scale, switch, or abandon investments as new information emerges, and to capture upside and mitigate downside risks. While ROA is philosophically correct and routinely shows an uplift in project value compared with DCF, its practical application at industrial scale is severely constrained, ROA faces the reality of a combinatorial explosion in complexity of decision trees, Monte Carlo simulations and other models required when multiple interdependent or sequential options exist across numerous mining zones and time periods. The AMC Hill of Value® (HoV) process adopts the same intellectual foundation as ROA, that flexibility has economic value, but operationalizes it through a far more robust and scalable architecture. It is built on parametric relationships, rapid scheduling, and multi-objective evolutionary optimisation. HoV can evaluate millions of compound, interdependent real options in a single optimisation run, delivering resilient, adaptive strategies that preserve managerial flexibility while simultaneously optimising NPV, mine life, risk exposure, and other corporate objectives. This paper demonstrates that HoV is the practical, industrial-scale embodiment of real options thinking in mining: it discovers, ranks, and translates the most valuable real options into strategic mine plans, overcoming the scalability barriers that have prevented widespread adoption of classical ROA.

Feb 22, 2026

By W. H. Renison

This paper will discuss the operation and maintenance of Molycorp's Quests Mine ore conveyor system. The 1.2 m wide, steel cable-reinforced conveyor belts are capable of transporting 1089 kt/h of ore over a belt line distance of 3124 m with a vertical rise of 518 m. A portion of the conveyor runs in a 2057 m long underground decline on a 10° slope. Six 448 kW motors power the main 1.2 m wide belts.

Jan 1, 1984

By Don L. Deardorff

The Deserado Mine and transportation system is the fuel supply portion of the Bonanza Power Plant project. Deserado Mine con¬sists of an underground mine with a capacity of 1,224,700 tonnes (1,350,000 tons) of clean coal per year, a 649 tonne (715 tons) per hour closed water circuit jig type preparation plant, a 5.6-kilometer (3 ½ -mile) overland conveyor with covered slot storage, a unit train rail load-out and 59.5 kilometers (37 miles) of totally independ¬ent, captive electrified railroad. Planning and exploration started in March of 1978. Construction of all facilities was completed in April of 1984, approximately six years after initial planning was commenced. This paper will discuss exploration, environmental permitting, mine planning, engineering and construction of the Deserado Mine project.

Jan 1, 1984

By Grant A. Brackebusch

Paste tailings disposal was successfully implemented at the New Jersey mill in Kellogg, ID with two different types of ore feed, a gold ore and a silver ore. The purpose of this paper is to describe the production of paste tailings, including operational problems during commissioning, and also highlight the environmental and economic benefits that were realized versus conventional tailings disposal such as the recycling of process water, increased shear strength and reduced permeability of the tailings mass, and reduced environmental permitting.

By J. H. Kelley

In this paper, we show that the methane emission and the dust generation in under-ground mining currently and in the future pose operational, health and safety conditions which adversely Impact face productivity and worker satisfaction. One solution is the use of a dual-aircourse system of ventilation. In this concept, one aircourse captures and exhausts to the surface the dust generated and the methane emitted in coal/mineral fragmentation while a second aircourse provides workers with cleaner air for breathing and comfort. Various dual-aircourse configurations adapted to the Variable Wall Miner are analyzed and compared with conventional mining in gassy seams, indicating a marked reduction in the required air quantity and the number of aircourses.

Jan 1, 1996

By F. Ikumapayi

Hydrogen peroxide production was measured during the grinding of a complex sulfide ore, and its oxidizing effect on solid surfaces was investigated using Fourier transform infrared spectroscopy (FTIR) with diffuse reflectance attachment measurement. In turn, an attempt was made to correlate the formation of hydrogen peroxide, surface oxidation and sphalerite flotation. Additionally, in order to predict and minimize detrimental production problems due to the recycling of process water in sulfide ore processing, the effects of major components of calcium and sulfate species present in recycled process water and the effect of temperature on sphalerite flotation were investigated through bench-scale flotation tests using complex sulfide ores. The significance of process water species in flotation was studied using tap water, process water and simulated water containing calcium and sulfate ions. Formation of hydrogen peroxide was revealed during the grinding of the complex sulfide ore, and its formation was counteracted by diethylenetriamine (DETA). The FTIR spectrum of the pulp solid fraction showed varying degrees of oxidized surface species, which are related to the concentration of H2O2 analyzed in pulp liquid. Bench-scale flotation using two different complex sulfide ores showed that sphalerite recovery is better in process water than in tap water. Flotation results also indicated a varied recovery of sphalerite at different temperatures in either tap water or process water.

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

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

Nov 6, 2020

By Thomas R. Kuesel

In simpler times, construction was a cooperative undertaking. The frontier tradition of barn-raising is the construction equivalent of the academic ideal of a single student seated on a log with Horace Greeley. In a more complex world, ideals become more elusive. Still, it was only a generation ago that toll revenue bond financed projects generally involved a team composed of investment bankers, engineers, and construction contractors, who all shared a common objective -- to create something useful, at minimum cost and in minimum time, with fair compensation to all involved. In an increasingly contentious public climate, the team has too frequently been splintered into separate camps of owners, engineers, and contractors, who have lost the old objective of creation and have, under the guidance and control of the lawyers, substituted two new primary objectives: 1. To protect one's own skin. 2. To detect and punish culpable negligence of one of the other parties. This process has become so ludicrous that a number of thoughtful observers from all of the camps (including even some lawyers) have come to recognize that there must be a better way to undertake construction works than to use them as wrestling arenas. The road to improved contracting methods starts with mutual understanding of each other's problems and viewpoints. To this end, discussions such as this RETC session make a useful contribution. To

Jan 1, 1983

By W. D. Delahaut

Sampling tests performed at the Paradise Peak Mine compared various blasthole samplers and reverse circulation sampling methods. Statistical analysis of the data indicates that be-low-the-deck bag sampling produced a 24 to 29 percent error when compared to bulk sampling methods. Use of a chip pile wedge sampler reduced error to 17 percent. Reverse circulation sampling upgraded over bulk blasthole sampling by 7 percent for gold and 11 percent for silver. These results indicate that bias sampling conditions exist when small volume bag sampling is employed in production blasthole drilling.

Jan 1, 1991

By B. Kolonja

A SIMAN and CINEMA PC-based simulation model was developed to simulate and animate the truck-shovel operations of surface mines. The model is capable of simulating one mathematical dispatching strategy using linear and dynamic programming and six heuristic dispatching strategies. Data were collected from an actual operating mine through time studies and analysis of historical records. The statistical analyses were performed and appropriate theoretical distributions were fitted for various time events in the truck-shovel work cycle. The model was then applied to study overall impact of these dispatching strategies on constrained and unconstrained mine productivity. The simulation/animation model developed in this study seems to be an efficient planning tool for choosing optimal fleets and finding an 'optimal" dispatching strategy to produce an equilibrium between "the quality and quantity of production.

Jan 1, 1993

By N. K. Bohidar

Evaluation of the stability of a structure under given boundary conditions requires accurate knowledge of the state of stress as well as the mechanism of failure at the critical state of stress. This paper represents a part of the research done by N. K. Bohidar during 1965-1968 for his Ph. D. research in Mining Engineering at the University of Utah. It summarizes the determination of internal stress and failure phenomena around cylindrical openings in viscoelastic media subjected to lateral restraint and vertical uniaxial load. The conditions of lateral restraint and viscoelastic nature of the media represent conditions associated with subsurface openings in rocks. The financial assistance provided to the project from the University of Utah Research (Uniform School Fund), W. C. Browning Scholarship Fund, Earth Science Research Fund, and D. C. Jackling Loan and Scholarship Fund is gratefully acknowledged. The authors also acknowledge the assistance of S. Siugh, W. Jones, and K. McCarter during the project.

Jan 1, 1970

By K. Osseo-Asare

LIX63 in combination with DNNS selectively extracts nickel and/or cobalt from acidic leach liquors with pH values as low as 1.0. Nickel/cobalt and cobalt/nickel selectivities are achieved by varying the relative concentrations of LIX63 and DNNS. Increasing LIX63 concentration retards both extraction and strip-ping rates while DNNS has the opposite effect. Slope analyses of equilibrium data indicate that both LIX63 and DNNS are present in the extracted complexes. Examples of possible flowsheets are presented.

Jan 1, 1978

By Earl M. Frizzell

This paper addresses considerations for the use of artificial support of pit walls in surface mines, a new project of the Bureau of Mines. Results to date indicate that a polymer-coated cable with embedded grit could provide good anchorage for stabilizing benches and highwalls, and an electronic method of recording discontinuities in the field is being reviewed and developed for application to mining. The objectives of the work in progress are to define the engineering parameters and evaluate the concepts for artificial supports in order to provide safe working environments when pit slopes are steepened to increase ore recovery and reduce overburden handling.

Jan 1, 1986

By George A. Komadina

Pima Mining Company has recently completed their expansion tripling the plant capacity to 18,000 tons per day and now is in the process off expanding to 30,000 tons per day with completion scheduled for the summer of 1967. This paper briefly discusses the additions to the mining department and support areas with a more detailed report on the complete new crushing plant and additions to the concentrator. The crushing plant includes a 54-inch gyratory crusher, three 7-foot standard and seven 7-foot short head crushers along with necessary screens, feeders, and conveyor belts to produce a minus 1/2-inch rod mill feed. The concentrator consists of ten milling sections, each containing one 10-foot by 16-foot rod and two 10.5-foot by 13-foot ball mills, classification is done with cyclones. Pulp from each section is floated in 50 cells of 66-inch Fagergren flotation machines to produce a rougher concentrate which is cleaned in six stages of Denver cleaners to produce a final concentrate The various mill products are thickened with disposal made in conventional manner. Plant instrumentation is discussed in the paper.

Jan 1, 1967

By V. R. Degner

The minerals industry trend toward very flotation machines, exceeding 10 m3, began in the late 1960's and responds to the continuing desire to achieve better plant economics through improved plant floor-space utilization, power requirements, and operational /maintenance manpower heeds. In general, as process design tonnage increases, the benefits of the larger flotation machine becomes more evident. The development of the larger flotation machine can be distingushed from earlier, smaller, machines in demanding a rational "scale-up" procedure to guide the basic design, thereby producing a machine prototype capable of satisfactory-operational evaluation at minimum cost. Proven flotation machine "hydrodynamic" scale-up consideration, successfully applied in the development of both the WEMCO No. 164 (28.3 m3) and No. 190 (42.5 m3) machine will be reviewed, and the resulting economic benefits of large flotation machines in high tonnage applications will be summarized.

Jan 1, 1985

By Harvey P. Knudsen

This paper illustrates the application of geostatistics to a roll front type uranium deposit located in Wyoming. The steps involved in calculation of experimental variograms, variogram modeling and verification of the resulting models are described in detail. The resulting spherical variogram models for grade thickness and thickness show strong geometrical anisotropies. The major axis of anisotropy for both variables is approximately parallel to the axis of the roll front and the minor axis perpendicular to the roll. This model confirms the technique of drilling "fences" across the roll front, where the drilling is much closer together than the fences along the roll.

Jan 1, 1978

By K. Hartman

Certain external forces affect the manner in which business is conducted. and in recent years changes in the business environment have altered how some of these external forces affect the management of a business. These changes must be understood and considered in definition of the strategy of the business. Implementation of the strategy must assure commitment from all departments within a company, and this commitment sometimes involves compromises to assure that a department's goals mesh with the overall business objective such compromises must be externally motivated. i.e. for benefit of the customer. Complete implementation transcends internal departments to all aspects of managing the efforts in the marketplace.

Jan 1, 1989

By L. A. Khan

This paper first discusses the physicochemical cleaning methods used to process fines followed by an analysis of the subprocesses of froth flotation and the adverse effects of slimes and particle oxidation. These subprocesses include the phenomena of interception, contact, adhesion and levitation. Preventive and corrective measures to combat the generation of fines and their effects are suggested. Preventive measures include controlled grinding, limited liberation, flotation at coarser sizes. Means of preventing oxidation and/or removing oxidation products are a1 so discussed. Corrective measure to increase recovery include intensive aeration, aggregation of particles, intensive mixing, increased retention time, and reduction of detachment. Measures leading to improves selectivity involve means to reduce slime coating, achieve selective mineralization of bubbles and minimize entrapment.

Jan 1, 1986

By Elgin D. Bell

Within the next, year or two, Western Canada should overtake Mexico and France. to become the worlds second largest producer of elemental sulphur, surpassed only by the United States, By 1965, it should produce about 25% of the world's total elemental production and, about 10% of sulphur produced in all forms. In 1952 Alberta had but one small sulphur recovery plant. By 1962, it had fifteen plants with a total designed capacity of almost 6,000 long tons of sulphur per day and actual production of almost one million long tons per year. This decade of dynamic growth was the result of Alberta's rapidly developing natural gas industry. More particularly it was the result of approval in 1960 to export natural gas in large volumes into the United States. Prior approval to export gas from Alberta to eastern Canada and relatively modest volumes to the U. S. had resulted in the construction of several plants but none were of the scale required to serve the U. S. market.

Jan 1, 1963

By R. Feenstra

In the course of time, an increasing number of investigations on jet cutting all kinds of material, such as rocks1, 2, 3, metals4, 5, and wood6 have been reported to serve various applications. This paper deals with one particular application of jets, viz deep-well drilling for hydrocarbon exploration and production. A number of papers have been published on this subject 7, 8, 9, some of which refer to jets purposely containing abrasives, termed 'jetted particle drilling'7. Since such abrasives complicate fluid handling considerably and do not appear to be absolutely necessary for making hole we have restricted ourselves to conventional drilling fluids. A large part of our investigation has been performed with the aid of three laboratory-type drilling machines, which permit tests on both micro-bits (12 in) and full-scale bits (62 - 9 5/8 in). In view of the application of jets in deep wells, care has been taken to simulate hydrostatic pressures as they exist in the field on the hole bottom. These have been found to have a major effect on the bit-penetration rate for various drilling fluids. Following experiments with single nozzles, laboratory bits have been designed, improved further and developed for field use. Field runs on 9 5/8 in bits, using conventional equipment and pumps, served to verify the feasibility of the jet drilling concept. Further efforts are evidently needed to evaluate the jet drilling method. It is encouraging that one of these10, a field test programme, is supported by a number of oil companies jointly. Such a combined effort is of paramount importance to evaluate and develop this new method of drilling to its full potential in a reasonable period of time. This paper aims to contribute to that ultimate goal.

Jan 1, 1974