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By S. A. Abdel Sabour

Conventional methods for selecting a production plan for an open pit mine is based on the assumption that ore grades throughout mine life as well as market variables are known with certainty. Another important issue that is also being ignored in the conventional procedure is the value of management flexibility to revise operating policy with time according to the arrival of new information. Based on this oversimplification of reality, an optimum mine plan that is thought to be maximizing net present value (NPV) of the project is selected. Given the multiple sources of risk affecting the estimated NPV, there is a high probability that the actual value will be different from that estimated. This could mislead decision making process regarding selecting an optimum mine plan. This paper proposes a multi-criteria ranking system for selection between alternative mine designs under both geological and market uncertainties. The system is based on integrating multiple market and geological uncertainties as well as the operating flexibility to revise the ultimate pit limits using a Monte Carlo-based real options valuation (ROV) model. To compare the methods, the article applies the proposed system, along with the conventional NPV-based method, to rank possible mine designs for a copper and a gold mine. It has been found that, considering multiple risk analysis measures while integrating uncertainty and operating flexibility results in selecting a mine design that is different from that selected by the conventional method.

Jan 1, 2009

By Earl L. Rau

At the present time, whether an electric utility uses high-sulfur coal is largely determined by geographical location, clean air legislation, and the age of the power plant. Acid rain legislation may well be the new force to change the use of high-sulfur coal. A number of coal papers were presented at the SME Fall Meeting in St. Louis, MO, Sept. 1986. These papers discussed high-sulfur coal in relation to its economics, trends and prospects, value of cleaned coal, and coal-cleaning technology. The Clean Air Act of 1970 required the reduction of SO, emissions from most stationary electric-generating plant to 0.5 kg (1.2 lbs) SO2, per million Btu of heat input. It was possible for many plants to utilize lower-sulfur coal or a mixture of high-sulfur and low-sulfur coal to meet this emission requirement. This 1970 act greatly increased the use of low-sulfur western coal. The 1978 amendment to the Clean Air Act required all new plants to use Flue Gas Desulfurization (FGD) to meet a requirement of 70% reduction of potential SO2 emissions to 0.3 kg (0.6 lb) SO2 per million Btu of heat input. With the requirement to use FGD, there was little or no demand for low-sulfur western coal in new eastern power plants. If' new acid rain legislation is enacted, it likely will require sizeable reductions in SO2, emissions by existing coal users. There might then be a shift to greater use of low-sulfur coals. The low-sulfur coals could come from either western or eastern mines or from cleaned eastern coals. Economics will dictate the approach older power plants will take to meet new regulationsuse FGD or low-sulfur coal. Coal use for electric power generation has changed from 1970 to 1985. Table 1, (Land, preprint 86-333) shows the change. The table shows that in 1985, US utilities used about 255 Mt (280 million st) of high-sulfur coal. Some 45 to 54 Mt (50 to 60 million st) of high-sulfur coal is being used in plants equipped with FGD and most of this use is in eastern states. This leaves 200 to 209 Mt/a (220 to 230 million st) of high-sulfur coal being used without FGD treatment. These plants are at risk if acid rain legislation is passed. Most of these plants are in the east and are more difficult to supply with low-sulfur coal. Estimates range from $20 to $30 billion capital investment and from $5 to $9 billion dollars per year operating costs to reduce SO2, emissions from those old medium-to-high-sulfur coal-burning plants. G. W. Land, (preprint 86-333), also presents tables relating to power generating costs and coal types. The author's tables are extracted from Land's tables IV and V. Table 2 here presents costs for a new plant. This includes the impact of different heat rates, fuel costs, fuel qualities, operating and maintenance costs, labor costs, and waste disposal costs. Table 3 compares estimated costs to retrofit an older plant with a limestone scrubber versus switching the same plant to low-sulfur eastern or western coal. Costs of switching include upgrading the electrostatic precipitator and - with western coal - costs of derating. Bhagwat, (preprint 86-325), details the trends in high-sulfur coal markets from 1974 to 1984. He also gives some prospects for high-sulfur coal markets, 1984 to 1994. The prospect depends mostly on whether acid rain legislation is enacted. By 1994, if New Source Performance Standards (NSPS) continue to be applied, high-sulfur coal demand from six mid-west and eastern states is expected to increase by 27 Mt (30 million st). • L. A. Khan and J. W. Baxter, (preprint 86-373), discuss several coal cleaning technologies such as froth flotation of fines, bulk oil separation and oil agglomeration, oil agglomeration/flotation, and air-floc flotation. ? (Space limitations preclude listing references. A complete list is available from the author.)

Jan 1, 1987

By M. Alley, P. Schroeder, L. Zelazny, S. Nagle

The Old Hickory mineral sands ore body in Virginia (>2000 ha) currently supports a productive rowcrop agriculture. Reclamation experiments were implemented on pilot-scale mining pits from 1995 to 1998. Half of each mining pit was topsoiled (25 cm) while the remaining half was left as either (1) mixed tails/slimes or (2) re-graded subsoil over tails/slimes treated with 112 Mg/ha yardwaste compost. Post-mining productivity was estimated to be reduced by 23%, 3%, 27%, and 20% for each crop (wheat/soybeans/corn/ cotton) in sequence when compared to undisturbed soils. Variability in surface texture and compaction limit restoration of soil productivity.

Jan 1, 2002

By D. R. Wilburn

This summary of international mineral exploration activities for the year 2007 draws upon available information from industry, literature and U.S. Geological Survey (USGS) specialists. The summary provides data on exploration budgets by region and mineral commodity, identifies significant mineral discoveries and areas of mineral exploration, discusses government programs affecting the mineral exploration industry and presents analysis of the mineral industry based upon these data. Two types of information are reported and analyzed in this annual review of international exploration for the year 2007: 1) budgetary statistics expressed in U.S. nominal dollars provided by Metals Economics Group (MEG) of Halifax, Nova Scotia, and 2) information on regional and site-specific exploration activities that took place in 2007 and compiled by the USGS.

Jan 1, 2008

By H. D. Van Veldhuizen

The Multilateral Investment Guarantee Agency(MIGA) is part of the World Bank Group, and has as its mission the facilitation of foreign direct investment by providing political risk insurance (guarantees) to foreign investors and lenders. As a development institution, MIGA is required to ensure that the projects that it insures will bring development benefits to the host country. Demonstration of this includes review and analysis of the environmental and social soundness of a prospective investment. Environmental guidelines and policies developed by the World Bank Group are important components both in analyzing the environmental and social soundness of a prospective investment and in risk management. MIGA has recently formalized and adopted environmental assessment and disclosure policies. The approach taken by MIGA to environmental review of investments and implementation of these policies is described in this paper.

Jan 1, 2000

By Stephen Phillips, Luigi P. Gonano

Vertical circular shafts have been proposed for multiple access to high level nuclear waste deep geologic repositories. Shaft construction is a critical path item in the commissioning of a repository. Other constraints on the shaft design and construction criteria include the lack of design precedence for long term performance and the importance of minimizing rock and groundwater disturbance. A comparative evaluation of conventional and mechanized shaft sinking techniques is presented in the context of the particular geologic and design constraints. Technical and non-technical factors for blind drilling, blind boring, raise-reaming, drill-and-blast and ream-and slash methods are reviewed for typically "hard rock" and "salt" type repository sites. Appropriate shaft designs are developed, the suitability of each method to the particular requirements evaluated and construction costs and schedules determined. The explicit appraisal of the significant design factors for each method serves as a rational basis for the preliminary selection of the most suitable sinking technique for a particular set of site/design conditions.

Jan 1, 1983

By Paul D. Tomlingson

There are huge benefits for mining operations that have a well-defined maintenance program that is understood and followed across the total operation. But for operations lacking a quality maintenance program, there is equal assurance that nearly every major maintenance problem can be traced to this omission. Few problems will be permanently corrected until such a program is implemented. Definition The maintenance program re-quires the interaction of all mine departments. Initially, the production department will request work and the maintenance department will identify work, principally through preventive maintenance inspection and testing efforts. Maintenance will then classify the new work to determine the best way to respond. Maintenance will plan selected major jobs to enable its crews to carry them out more effectively. Maintenance will schedule the planned work with operations. Supervisors will assign all types of work to their crews then, control the work through effective supervision. As work is completed, maintenance will measure the work using an accurate information system. Next, it will assess overall accomplishments against goals such as performance standards or budgets. In addition, the pro-gram would prescribe a means to evaluate every aspect of the operation as it affects maintenance so that necessary improvements or changes can be identified, prioritized and acted on. Such evaluations should be part of a mine-wide continuous improvement effort. A well-defined maintenance program is one of the best investments a mining operation can make to assure its profitability. Educating the total operation on the pro-gram assures long-term dividends from the investment.

Jan 1, 2008

By E. C. Westman, F. J. Shreve

This paper presents the design and construction of a multi-channel geophone array that improves tomographic imaging capabilities in both surface and underground mines. Especially important in the design of the array is sensor placement. Three issues related to sensor placement are addressed in this paper: 1) sensor placement in long, horizontal boreholes, 2) development of simple, robust, MSHA-acceptable clamping unit, and 3) orientation of the geophones within the borehole. Improved imaging capabilities will produce energy, environmental, and economic benefits by increasing exploration accuracy and reducing operating costs.

Jan 1, 2002

By H. Fayed

Two-phase (water and air) flow in a self aerated WEMCO flotation machine has been investigated using computational fluid dynamics (CFD). A 0.8 m3 model is considered. The flow is modeled by Euler-Euler approach, and transport equations are solved using a commercial software ANSYS-CFX5 [1]. Because of the lack of circumferential periodicity in this machine, the entire machine is modeled and unsteady simulations are conducted in the whole volume of the bulb. Uniform bubble diameter is specified, and the effects of bubble diameter are determined by conducting simulations for three diameters of 0.5, 0.7, and 1.0 mm. The unsteady air flow rate through the machine is predicted as an outcome of the simulations. Air volume fraction contours and velocity field in different parts of the machine are presented and discussed.

Jan 1, 2012

Ceremonies for the induction of five mining industry pioneers into the National Mining Hall of Fame are scheduled for Saturday, Sept. 25, 2004 at the Las Vegas Hilton in Las Vegas, NV. The 17th Annual Mining Hall of Fame Induction banquet will begin with a reception at 6 p.m., followed by the dinner and program at 7 p.m. The five inductees are Georgius Agricola, David William Brunton, Herbert E. Goodman, David Ray Mitchell and Robert Peele. Georgius Agricola (1494-1555) wrote De ReMetallica, an original and valuable work that discussed everything known about mining during the first half of the 16th century. In De Re Metallica, Agricola reviewed practical means of finding ores, methods of surveying and mining, the assaying of ores, types and uses of mining machinery, smelting, mine administration and more. David William Brunton (1849-1927) is best know

Jan 1, 2004

In 1988, at the request of members of the Society for Mining, Metallurgy, and Exploration (SME) Inc., the president of SME formed Working Party No. 79, Ore Reserve Definition. Its mission was to develop guidelines for the public reporting of exploration information, resources and reserves. These guidelines were published in the April 1991 issue of Mining Engineering (pp. 379-384), and as a document entitled “A Guide for Reporting Exploration Information, Resources, and Reserves” in January 1992. Work continued on an ad-hoc basis until 1996. Working Party No. 79 was then renamed the SME Committee on Resources and Reserves and became a standing committee.

Jan 1, 1999

By George Watson, Gu Quanzhong, S. Gerard Sawyer

Bulkheads, also known as hydraulic seals, are used to seal abandoned workings and protect adjacent active mines from explosion and control unwanted inflows of water from poorly sealed shafts, water-bearing strata, and abandoned mine areas or gobs (1). At coal seam outcrops, bulkheads have typically been used to prevent access and to control acid mine drainage. Bulkheads have also been installed at outcrop openings located within the footprint of an embankment dam, or within the reservoir of an impoundment, to prevent stored water or slurry waste from flowing into active or inactive underground mine workings (2). Components of MICON Bulkhead Seal MICON bulkhead seals in mining applications refer to seals designed to impound liquids or slurry. The MICON bulkhead seal is comprised of two concrete block walls set in the front and back and a polyurethane/aggregate core (Figure 1). The two walls are usually dry-stacked, surface-bonded walls constructed with solid load-bearing concrete blocks (ASTM C90) or concrete building brick (ASTM C55). The surface bonding material used in the wall construction must be MSHA-approved. The type of stone, if any, used to fill the space between the walls is not essential. However, MICON generally uses No. 57 limestone in 50 lb. bags, specified to moisture control, shrink-wrapped and palletized. The polyurethane foam used in the construction of the bulkhead seal is engineering specified and formulated by density based on the optimization of cost, seal core thickness, required adhesive strength, the use of stone filler and other required physical properties.

Jan 1, 2005

By R. Sharma, S. Svoronos, S. Gupta, N. A. Abdel-Khalek

This paper presents the results of column flotation of a fine feed sample of Florida phosphate. A central composite design is used to study the main and interaction effects of parameters affecting column efficiency. The statistical design is also used to determine the optimum conditions. The results indicate that, depending on the experimental conditions, it is possible to achieve a concentrate of high grade and recovery. A concentration of 15 ppm of non-ionic frother is found to be enough to maximize the recovery at the pH of 9.5.

Jan 1, 1999

By Franz Albert Nonnen

Backfill systems have been used for as long as mining activities have existed. Various backfill methods have been developed over the centuries with consideration for geological necessities, the technical means available, security requirements, and available finances. In the past, backfill systems were introduced and upgraded geographically in accordance with local experiences. In modern times, mining engineers participate in international forums for the exchange of knowledge so that backfill techniques and experiences are shared concurrently in mining areas all over the world. Mine backfilling increases the cost of mining so that great attention must be paid to choose a low-cost, reliable, and low maintenance backfill system. Some methods are described in this paper.

Jan 1, 2001

By S. Möllerherm, E. Drüppel

"The development of indicators to assess the sustainability of mineral raw materials operations is amajor task with respect to its actuality and difficulty. This holds true even more when dealing withenvironmental indicators.The use of existing environmental indicators in the mineral raw materials industry leads to false orat least distorted results. Therefore the Institute of Mining Engineering I from the RWTH AachenUniversity developed indicators and an assessment system for the mineral raw materials industryon operation, company and sector level on behalf of the Federal Ministry of Economics and Labour(Bundesministerium für Wirtschaft und Arbeit, BMWA) and the Federal Institute for Geosciencesand Natural Resources (Bundesanstalt für Geowissenschaften und Rohstoffe, BGR).In total 30 indicators were defined and designed to assess the performance of the mineral rawmaterials industry in terms of sustainable development, 10 indicators for each pillar (economical,ecological and social pillar).The following paper describes some of the results focussing on the development of environmentalindicators. These had to be adapted or completely new designed in order to match the specificcharacteristics of the mineral raw materials industry."

Jan 1, 2005

By R. W. Smith, D. L. Taylor, K. A. Altman

Recent research has shown that traditional sensitivity, what if and best case/worst case analysis of metallurgical data has the potential to over estimate the value of mining projects. Use of simulations, which rely on the input of statistical information, may provide more realistic predictions of the value of future projects. Actual metallurgical data is used to demonstrate that analyzing the data from a statistical perspective can give insight into completing an optimum amount of metallurgical testing and a mechanism to determine that samples used for the testing are truly representative of the ore that will be processed.

Jan 1, 2000

By Irwan S. Halim

For tunnels in horizontally bedded rock, geologic factors affect the selection and design of the initial supports, including the rock propensity toward parting along bedding and the resulting high potential for rock slabbing during excavation. To evaluate this ground behavior, numerical analyses and results with Mohr-Coulomb, Hoek-Brown, and Ubiquitous Joint constitutive models were used, using the Upper Rouge CSO tunnel in Detroit, Michigan as an example. The different rock models and other geologic considerations are shown to impact the selection of the tunnel initial support and design. This paper emphasizes the appropriate selection of an analytical model based on the site specific geology to achieve an optimum initial support design.

Jan 1, 2008

By C. C. Russelll, V. T. McLemore

The Metals Mining Sector of the Acid Drainage Technology Initiative (ADTI-MMS) addresses technical drainage-quality issues related to metal mining and related metallurgical operations, for future and active mines, as well as, for historical mines and mining districts. One of the first projects of ADTI-MMS is to develop a handbook describing the best sampling, monitoring, predicting, mitigating, and modeling of drainage from metal mines, pit lakes and related metallurgical facilities based upon current scientific and engineering practices. One of the important aspects of planning a new mine in today’s regulatory environment is the philosophy of designing a new or existing mine or expansion of operations for ultimate closure. The holistic philosophy taken in the ADTI-MMS handbook maintains that sampling and monitoring programs should be designed to take into account all aspects of the mine-life cycle. Data required for the closure of the operation are obtained throughout the mine-life cycle, from exploration through post-closure.

Jan 1, 2004

By G. P. Tomaino

Talc is a layered, hydrous magnesium silicate mineral. It has a soft, soapy feel and typically a smooth texture. Talc is also known for its insulation, heat resistance, chemical stability, oil absorption and strong covering quality. Talc, Mg3Si4O10 (OH)2, has a theoretical chemical composition of MgO at 31.7 percent, SiO2 at 63.5 percent, and H2O at 4.8 percent. However, talc’s chemical and mineralogical composition can vary depending on its geological history/parent rock association. These mineral associations and variable levels are usually chlorite and carbonates (magnesite, calcite and dolomite). Two key elemental substitutions that can occur in the talc crystal structure are iron for magnesium and fluorine for hydroxyl. These compositional differences may limit or enhance the talc’s usage in specific market niches. The United States remains self-sufficient in most grades of talc.

Jan 1, 2005

By Andre Balt, Pierre Hofmeyr

It is only recently that automation has been applied to mining analytical laboratories. This paper describes the use of automation in the laboratory analytical process of hard-rock mining and geological samples and slurries in mining concentrator plant process control laboratories. Types of analysis include fire assay, XRF, ICP and wet chemistry. The benefits of automation are reduced unit cost of analyses, greatly reduced staff requirements, higher quality of data and very fast turn-around times.

Jan 1, 2005