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By Michael Samis

The real option valuation method is often presented as an alternative to the conventional discounted cash flow (DCF) approach because it is able to recognize additional project value due to the presence of management flexibility. However, these two valuation methods can be separated on a more fundamental level by their differences in risk discounting. Real option valuation applies the risk-adjustment to the source of uncertainty in the cash flow while the DCF method adjusts for risk at the aggregate level of net cash flow. This seemingly small difference is the reason why the real option method is able to differentiate between projects according to each project?s unique risk characteristics while the conventional DCF approach cannot. This paper provides an overview of the real options and DCF valuation frameworks and discusses the differences in risk discounting that exist between the two methods. Using grade-school mathematics, this paper clearly demonstrates how, with real options, a unique project risk discount can be calculated which is directly linked to the project?s unique risk profile. It also highlights why the DCF method fails in this regard and shows why a call to ?increase the Risk-Adjusted Discount Rate? is an incomplete solution at best. Finally, a heap-leach project and satellite reserve development project are valued with both techniques and the difference in investment conclusions is explained in terms of the risk-discounting concepts discussed here.

May 1, 2003

By Martin Junker

This Notwithstanding all the debates on climate change and renewable energy, coal remains the world's no.1 primary energy source even in the 21st century. In 2011 alone, total output rose from 420 million t to around 6.6 billion t. Similar growth rates are also expected for the next few years. In order to meet demand, new seams are being tapped and others mined far more extensively. In most cases, this means a move from open-cast to deep mining, and extracting coal from ever greater depths. At the same time, extraction processes such as the room and pillar method are being replaced by longwall mining, which significantly increases seam yield and therefore output. The depth of extraction with new, modified mining methods is increasing rapidly around the world - in most countries, much more rapidly than the corresponding expertise. A trade in mining expertise has therefore developed alongside the coal trade proper. Germany relies on coal imports, but can export mining industry services and advanced mining equipment. Geological conditions in the Ruhr and Saar coalfields forced Germany to drive forward development of deep working for hard coal years ago. For 30 years now, Germany has been mining hard coal at depths of over 1,000 m, and excavation is now at depths up to 1,600 m. Deeper extraction and more extensive excavation posed new challenges for both miners and equipment. Intelligent logistics, modern roadway development methods and longwall mining with ploughs or shearers combined with optimised process coordination offered pioneering solutions - solutions to enable costeffective coal extraction in the long term without compromising safety. Countries such as Russia, the Ukraine, China and the Czech Republic, where extraction is now reaching similar depths, can now benefit from this experience: they do not need to go through the same process of trial and development, but can draw on Germany's findings and ultimately save on costs. Now, Germany is offering this knowledge and experience on the international market on a client- and deposit-specific basis to continue providing mining countries with safe and cost-effective coal mining solutions and secure the energy supply. The presentation gives a number of examples of how international mining companies have used expertise from Germany to better meet the challenges of deep mining.

Aug 1, 2013

By H. Hamza

Efficient and effective management of extraction process tailings is an essential ingredient for the continued success and development of Alberta's vast oil sands resources. Open-pit oil sands operations north of Fort McMurray recover bitumen from flotation circuits. Process tailings are managed in carefully engineered and monitored external tailings management facilities and in below-grade mine pits. In order to support reduction of production costs and improve upon established tailings management practices, CANMET has been working with the oil sands industry in a collaborative framework to assess the potential to integrate thickened tailings into oil sands extraction process flowsheets. Albian Sands has commercialized the process while others, including Syncrude Canada Ltd., continue to evaluate the suitability of the process for their operations. This paper provides an update on R&D work undertaken in recent years to assess and develop the potential of thickened tailings technology for the open-pit oil sands operators of northern Alberta. The aim of this work was to explore opportunities to optimize process efficiency and environmental sustainability by improving water and energy conservation and develop more alternatives for tailings management and reclamation.

Jan 1, 2004

By D. Campbell Mackenzie

THIS paper is submitted primarily to put on record the results of a number of experiments carried out at the Wingdam mine of Consolidated Gold Alluvials of B.C., Ltd., with the object of establishing a reliable method of concentration of 'wash' and a maximum recovery of gold from the concentrate. It will be generally admitted that, during the last two decades, a tremendous amount of research work has been carried out, both by private companies and Government departments, with a view to improving the technique of the recovery of gold .from quartz veins or lodes. So thorough have been these investigations that milling practice at a modern quartz gold mine is almost an exact science, carried out with meticulous accuracy. In placer mining, on the other hand, very little departure from old traditional methods can be noted, with the exception perhaps of the more modern gold dredges. This may be due to the fact that the concentration of placer gravels, up to a certain point, is comparatively easy. Only a simple equipment of sluice box and riffies seems necessary where the gold is coarse and the gravel free from clay. In the early days of placer mining, when claims were rich and fairly 5hallow, nobody worried very much about fine gold; and, if clay was present, an enlarged dump box was constructed in which the gravel was subjected to a rather desultory puddling. That large quantities of gold are lost in normal placer practice is generally admitted. Some 26 years ago, I had inspectorial charge of many bucket dredges on the Ovens river, in Australia. Occasionally it was necessary for a dredge to work through its own tailing to reach a new section, and almost without exception enough gold was recovered from these tailings to defray the total cost of moving the dredge. Since those days, the technique of gold recovery in dredging has been considerably improved and it is still receiving close attention. Outside of dredge mining, most placer operations, deep or otherwise, are as they were-notorious gold losers, paying little attention to the recovery of fine gold and taking an absurd amount of time over each clean-up. In the Cariboo district of British Columbia, the alluvial gold is usual y associated with varying quantities of black sand (magnetic) and grey sand (non-magnetic); and it can be taken as axiomatic that, if you save all the black sand and grey sand, you save practically all the gold. It is on this hypothesis that we have carried out our research work and brought our recovery system up to its present highly satisfactory standard.

Jan 1, 1937

By K. Szczesny

This paper considers the integration of uncertain real-time logistics data for reactive construction scheduling. In order to manage a construction project efficiently, an accurate schedule representing the current project progress is inevitable. The quality and up-to-dateness of such a schedule depends on the availability of real-time data. Typically, real-time logistics data contain information about the availability of material, equipment and personnel as well as delivery dates and site conditions. The accuracy and inherent uncertainty depends on the location where the real-time data was acquired. Currently, the integration of such data into a construction schedule is a very time-consuming, manual and, thus, errorprone process. Therefore, this paper proposes a methodology that enables an automatic integration of such uncertain data into construction schedules. By integrating uncertainties into the existing schedule their impacts on the construction work can be evaluated. For this, discrete event simulation is applied. In order to model uncertain input parameters for simulation models this methodology applies the fuzzy sets theory. In combination with alpha-cut sampling technique, discrete model input parameters are obtained. By applying reactive scheduling with several discrete event simulation experiments, the results can be used to modify construction schedules according to agreed timeframes and costs. In order to demonstrate and validate the presented approach an example is conducted.

Aug 1, 2013

By Kazuhide Nakaniwa

In this research, we devised a measurement method using total stations (TSs) which have ?the Baum? which is a concentric circle reticle, as substitute for crosshairs. The Baum owes its name to the similarity between the concentric circles and trees (Baum in German). By setting one circle on both of edges of cylinders, operators can set their sights on points on the center line of the cylinders, and also can measure positional coordinates of the points. Also, by measuring two different points on the center line, operators can measure the position and tilt of the axes of the cylinders. Furthermore, we developed a pile driving navigation system. Foundation piles are used for various structures, and their forms are generally cylindrical. Especially, although it is difficult to drive tilted pile foundations, their usage are expected to expand due to their high earthquake resistance. Yet, a method to accurately measure the tilts of piles has not been established. However, we proved that operators can obtain adequate accuracy to control foundation piles through the measurement experiment using this system. Using this system, the information of the pile is measured using a TS, transferred to a PDA, and displayed from the operator?s view of the piling machine.

Aug 1, 2013

By Jacek Paraszczak, Stefan Planeta

"RésuméDans la première partie de cet article on discute Ie contexte technico-économique de l'usage des foreuses à l'eau sur béquille dans des mines sud-africaines. Par la suite on présente les résultats d'une étude comparative du forage avec les foreuses à l'huile et à l'eau par rapport aux foreuses pneumatiques. La performance des foreuses est discutée sous les deux aspects: l'aspect technique concernant Ie taux de pénetration et la quantité d'eau rejetee dans les galeries et l'aspect de fa santé et sécurité au travail, et plus particuliérement, les niveaux de bruit et de vibrations ainsi que Ie brouillard de l'huile. On conclut par l'évaluation du potentiel de forage à I'aide des foreuses hydrauliques dans Ie contexte canadien.AbstractIn the first part of this paper the technical and economical aspects of water-powered drilling are discussed. This technology, originally employed in South Africa, received some interest from Canadian mine operators. In this context a comparative experimental study of pneumatic and hydraulic (oil- and water-powered) jackleg drills has been realized. The performance of the drills is compared and the results reviewed with regards to technical aspects (penetration rate, amount of water spilled) as well as health and safety considerations (noise and vibration level, presence of oil mist). The potential for application of hydraulic jackleg drill is discussed."

Jan 1, 1995

By Brian Rausch

Agenda ?? Refresher: Victor Project Execution ?? Operations Capability roadmap: ? Operations staffing starter group: design participation ? Operations staffing build up for production start-up ? Training and commissioning integration ? Turning OPSCAP ramp-up into a project ?? Go Live! The Results

May 1, 2009

By J. Schick, V. Granger

Nowadays, all French former uranium mining sites are remediated and redeveloped. If needed, mining waters containing radium have to be treated before discharged into the environment. Classical radium treatment consists in a (Ba,Ra)SO4 salt precipitation and radium monitoring was carried out using a time-consuming analysis called emanometry. Three zeolite samples have been tested to remove 226Ra from mining water. In batch experiment, radium was totally (R=100%) and quickly removed after 2 minutes contact time. Continuous sorption experiments were carried out through a vertical column at lab scale. Chabazite is the most efficient zeolite with an 226Ra activity below 0.2 Bq/L until 60000 Bed Volume. Chabazite is always efficient although radium content in material reaches 150 Bq/g. 226Ra uptake was also tested at semi-industrial scale on a pilot plant. More than 3000 m3 were successfully treated with a radium content below 0.1 Bq/L. The environmental impact assessment of Ra-chabazite was characterized by using batch leaching tests made according to the NF EN 12457-2 standard as applied on all wastes. Ra-chabazite stability is excellent during this test: radium leaching is very low, less than 0.005%. A new 226Ra measurement method was developed by ICP-MS for a better analysis reactivity. This new method was carried out in a couple of minutes with a lower sample volume than emanometry. The validation was performed according to the French NF T90-210 standard for the calibration function definition, the limit of quantification, the accuracy and the interferences.

Jan 1, 2020

By J. Dubinski

Underground mining of copper ore in the Legnicko-Glogowski Copper District basin generates a number of seismic events, whose energy often exceeds 108 J (Butra, 2010). The number of tremors and their location shows that the area of rock mass involved in the deformation and failure processes significantly exceeds the area of mining operations. Locations of seismic foci of high energy tremors, as well as the aftershocks that accompany them, extend hundreds of metres, confirming that processes to restore the energy balance of rock mass occur in a short amount of time and over a wide area. Thus, an area of similar size should be considered in predictive analyses of the tremor?s position. It should be emphasized that a large portion of the rock mass still has a level of freedom resulting from the way the rock mass is held together and its geometric continuity. This level of freedom is dependent on the scale and duration of mining, the number and size of natural structures, and rock mass pressure, including gravitational pressure constricting individual fragments of rock mass in the area (Burtan, 2012). It can therefore be assumed that in real conditions, areas where mechanical strength of the layers has been exceeded may be located a considerable distance from each other and do not necessarily need to coincide with the working area location. In this sense, a rock mass influenced by mining exploitation is essentially a rock mass in which numerous fragments with concentrated energy exist simultaneously. Energy will be released within these rock mass areas each time rock mass strengths are exceeded by the induced stress changes related to mining operations. This paper presents a discussion on how to predict the location of seismic activity areas based on a change of position of seismic energy equivalents. This parameter is calculated for a given set of seismic tremors with defined foci coordinates. For a given set of seismic tremors, the location of seismic energy equivalents may be used for predicting the location of high-energy seismic events.

Aug 1, 2013

By G. M. Scamans

In the past ten years there has been considerable penetration of aluminum automotive body sheet (ABS) into automotive structures. The exponential increase in demand is resulting in major investments in heat treatment and finishing capacity across the globe. Line speed and tonnage throughput is limited by the continuous heat treatment (CHT) floater furnace rather than the cleaning and pretreatment section where electrolytic treatments that offer higher line speeds should come into favour and roll coating of pretreatment should predominate. The capacity limiting surface texturing pass will either be eliminated or moved to the finishing line or a dedicated mill. The key to making aluminum both embedded carbon and cost competitive with steel for more and more affordable classes of vehicles lies in recycling of both prompt scrap and, in the longer term, end of life vehicle scrap. For the first time scrap separation technology is available that can compete effectively with hand sorting and can sort aluminum shredded vehicle scrap into wrought and cast alloys and then into individual alloy groups. The challenge is to use more end of life scrap in alloy formulation whilst at the same time extending the property range in terms of both strength and formability.

Jan 1, 2015

By G. M. Scamans

In the past ten years there has been considerable penetration of aluminum automotive body sheet (ABS) into automotive structures. The exponential increase in demand is resulting in major investments in heat treatment and finishing capacity across the globe. Line speed and tonnage throughput is limited by the continuous heat treatment (CHT) floater furnace rather than the cleaning and pretreatment section where electrolytic treatments that offer higher line speeds should come into favour and roll coating of pretreatment should predominate. The capacity limiting surface texturing pass will either be eliminated or moved to the finishing line or a dedicated mill. The key to making aluminum both embedded carbon and cost competitive with steel for more and more affordable classes of vehicles lies in recycling of both prompt scrap and, in the longer term, end of life vehicle scrap. For the first time scrap separation technology is available that can compete effectively with hand sorting and can sort aluminum shredded vehicle scrap into wrought and cast alloys and then into individual alloy groups. The challenge is to use more end of life scrap in alloy formulation whilst at the same time extending the property range in terms of both strength and formability.

Jan 1, 2015

By Jason J. Ballentine

This case study presents the results of a maintenance review of a soot blower system at a coal fired power generation station. The power generation station was following a ?repair when it breaks? maintenance strategy for its soot blowers. The efficiency losses incurred as a result of failures in the soot blower system and the resulting interruption and out of service time was found to have a significant effect on the plant output. The maintenance strategy for the soot blowers was reviewed using Reliability Cantered Maintenance and lifecycle simulation. This methodology provided visibility to the monetary implications of failures and allowed alternative types of maintenance to be assessed and where justified were added to a maintenance schedule in the Maximo work order management system. By reducing unplanned breakdowns the predicted reduction in efficiency losses was 45%.

May 1, 2007

By S. V. Ulianov, A. Y. Senchenko, A. A. Shvets, A. V. Aksenov

Development of an efficient technology to process complex ores containing gold and antimony as well as silver is described in the paper. The results from the testwork aimed at the valuables recovery by means of flotation are presented. A process sample of antimonite gold-bearing ore was studied in TOMS institute aiming at development of a technology to process such an ore with generation of antimony concentrate and sulphide gold-containing concentrate. Material composition study indicated that the ore included 5.3% of sulphides: arsenopyrite – 2.4%, pyrite -2.4%, and antimonite – 0.5%. Gold is present as an isomorphic dissemination in arsenopyrite. At sighter testing stage a direct selective flotation flowsheet was chosen to process the ore. Antimonite flotation was activated due to addition of lead nitrate. A single cleaning of a rougher flotation concentrate resulted in antinomy concentrate with 30% Sb content and 71% recovery. Au recovery into antimony concentrate did not exceed 1%. Sb flotation tailings were used to float the remaining sulphides and gold. The resulted sulphide concentrate was characterized by Au content of 20 g/t at about 80% recovery, arsenic content - 10% at ~80% recovery, and sulphur content - 18% at ~81% recovery. The sulphide concentrate can be forwarded to further processing aiming at gold recovery. Given that the concentrate is highly refractory it should be pretreated (bacterial or pressure oxidation, Albion process) prior to cyanidation in order to liberate gold from sulphides. The proposed technology allows one to solve the problem of precious metals recovery from antimonite ores.

Jan 1, 2016

By M. E. Holuszko

A research program has been carried out at the Mining Department of the University of British Columbia to study the effect of wettability of coal on its handleability and bulk density. The effect of moisture content on the bulk density of coal was found to be more pronounced for hydrophilic coals than for hydrophopbic ones. Altering wettability of coal surface leads to different effects of moisture on bulk density. The samples were studied at different fine fractions content, and it was shown that there was no effect of increased content of fines on the bulk density for hydrophobic coals, while for hydrophilic coals this effect was very significant. It was shown that the moisture content at which the lowest bulk density was reached coincides with the critical moisture content for studied samples, as determined from handleability tests using Durham Cone method. This critical moisture is the moisture content at which a sudden deterioration of coal handleability occurs. Based on the bulk density and handleability tests, the flow theory of moist coal is proposed.

Jan 1, 2006

By S. B. Kang

Magnesium has poor ductility at temperatures lower than 225°C and, as a result, Mg alloy sheets are produced via fairly complex thermomechanical processes consisting of numerous sequential steps of hot (warm) rolling with low reduction and intermediate recrystallization annealing operations. In context of the present study, a simple technology for the fabrication of magnesium sheets by hot (warm) rolling was applied to various magnesium alloys. The misch metal addition in those AZ alloys was done to evaluate the deformation behavior. Tensile tests were carried out for those AZ alloys after applying different heat treatments. The precipitation of ß phase (Mg17Al12 phase) induced different microstructures with various cooling method from solution treatment temperature, and also with various annealing treatment temperatures.

Jan 1, 2006

By J. M. Rios

Without conscious effort and understanding, a number of factors peculiar to mineral exploration campaigns conspire against building sustainability in host communities. These include the episodic and transitory presence of an exploration team in the community and the inherent uncertainty of outcomes; most projects fail. Given these circumstances, there is a strong tendency to apply a simple formula of providing employment, pragmatic philanthropy and supporting infrastructure improvements (roads, schools and clinics) to demonstrate that mining provides benefits. Experience in rural native communities of Mesoamerica has shown that it is possible to create positive, sustainable outcomes quite rapidly within communities, which build capacity, improve quality of life and support a strong social license to operate. Success comes from an understanding of community structure and dynamics; engaging with all segments of the community; creating healthy, transparent and accountable relationships based on clearly defined roles and responsibilities; and supporting and strengthening the role of women in a culturally appropriate way. To this are added innovative and culturally appropriate ways of incorporating sustainability through genuine social investment in areas more typically addressed by exploration companies; health, education, and environmental management.

Aug 1, 2013

By Arthur. H. Winckers, Stephan L. Chryssoulis

"The deportment of gold in residue samples of cyanide leach tests of David Bell ore from level 6A block 13 was established using a comprehensive quantitative mineralogical approach. In every test the feed was first pre-aerated for 4 hours, followed by 48h cyanidation. Test no. 2 was done without lead nitrate and yielded a residue assaying 3.03g Au/t. In test nos. 4 and 9 lead nitrate was added before pre-aeration at 0.03kg/t and 0.3kg/t respectively yielding residues of 1.04 and 0.81 g Au/t.The mineralogical approach employed to establish the deportment of gold involved superpanning, to preconcentrate the free gold and assaying of the tailing fraction to determine the gold associated with quartz. It was thus determined that without lead nitrate added 47.2% of the lost gold is in the form of residual free gold particles less than 20 µm in size. It is this form of gold which is under represented in the residues of leach tests with lead nitrate added.Having eliminated coarseness of gold particles as a factor for lower recovery, it was determined that the residual gold particles have extensively contaminated surfaces. Amongst the deleterious surface contaminants identified: S, As, Ag, Sb and Hg, the two most harmful are S and Hg because of their concentration on the surface and rate of accumulation.Mercury and Ag are minor constituents of native gold at David Bell (average composition Au: 78.9 wt%, Hg: 18.5 wt% and Ag: 2.6 wt%) and they become enriched on the surface of residual gold particles because of their slower rate of dissolution in cyanide. The other elements absorb onto the gold particles from solution.The beneficial effect of lead nitrate was documented by comparative surface analysis of gold from residue samples of 48 hour leach testing with and without lead nitrate added and from time dependent (0-2 hour) leach tests in the presence and absence of lead nitrate. Lead nitrate accelerates the dissolution of gold by performing the following functions: (i) catalytic effect on the cyanidation of gold by accepting electrons; (ii) reaction with surface sulphur to form PbS which is then removed by oxidation; (iii) catalytic reaction on amalgam and Ag facilitating the cyanidation of Hg and Ag thus slowing down their build up onto the dissolving gold particles and (iv) the precipitation of sulphide sulphur from solution thus minimizing its build up on the surface of dissolving gold particles which is believed to facilitate the access of cyanide ions."

Jan 1, 1996

By Jason J. Ballentine

This paper presents a case study of how an asset strategy and zero based budget was developed for an existing crushing plant that had been purchased from the contract service provider by an Australian Iron Ore miner. The goal was to directly align the strategies and budget to the business goals. This however was not a simple task due to poor historical records and a general lack of information. These challenges were overcome and the benefits of a documented maintenance strategy, a justifiable zero based budget and employee engagement were realized.

May 1, 2007

By B. Kenney

For SOFCs, composite cathodes comprising an electronically conducting electro¬catalyst (e.g. LSM) and an conically conducting electrolyte material (e.g. YSZ) are considered to improve the electrochemical performance by extending the active reaction zone to regions beyond the electrolyte-electrode interface, as in the case of conventional cathodes. Interpretation of experimental data for composite cathodes, however, is complicated by the mixed conducting behaviour which results in local overpotential distributions throughout the composite cathode. These local overpotentials depend on many factors, such as the composition, particle size, porosity and thickness of the cathode. Reliable experimental data obtained from composite cathodes requires carefully crafted microstructural parameters in order to minimize the overpotential variations. A mathematical model of a composite cathode was developed using coupled differential equations describing transport and consumption of chemical species, oxygen ion and electrons. Simulations under various oxygen concentrations were used to obtain the reaction order of the oxygen reduction reaction. An apparent po2 dependency was then extracted from the predicted Rp vs P02 data. It was found that this p02 dependency can be significantly influenced by the micro-structural parameters of a composite cathode, primarily due to local overpotential distributions.

Jan 1, 2005