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This paper examines some of the fundamental economics of mining - in particular, for optimisation studies, for production rate determination and for reserve estimates.It includes introductory discussion on the principles as to how economics drives mining investment decision-making, applicable to the optimising of pit shapes and production, or truck fleets, or any other part of the mine.The main part of this paper looks at the decision to start-up a mine and why the 'optimum' production rate to start-up a mine is not the point of lowest cost according to traditional discounted cash flow (DCF) analysis. The optimum production rate is usually substantially less than this rate. The paper recognises the difference between typical mining investments and investments in other industries that do not have the unique characteristics of mining and the problem of uncertainty resolution. It examines the marginal revenue effects, the marginal cost of capital and the value of a real option to expand pending uncertainty resolution as determinants of optimum initial production rates.The final part of this paper looks at applying these principles to renewable and non-renewable resources. It examines mine life and reserve estimates from an economic perspective.

Dec 6, 2010

Future metal prices play a direct role in both the economic evaluation and short to medium planning of a mine scheduling sequence. It is difficult to predict with accuracy the future price of volatile metal commodities, however, it is possible to fix some future metal price, outside of long term contracts by the selling of futures contracts through a commodities exchange. The futures contract represents a fixed amount of a specified quality of a commodity for future delivery at a predetermined price. Several different types of hedging are possible, one in particular which is best suited for mining companies. There are relative advantages and disadvantages when trading in futures contracts and particular reference is made to gold contracts on the Sydney Futures Exchange.

Jan 1, 1980

IN a mine with any considerable output the economical handling and transport of ore underground is a matter of prime importance, and in the design or lay-out of a trucking system the question of what form the points and crossings are to take should be one of the first considered. Trucks may be moved from one line of rails to another by the following means: by flat sheets, with which may be coupled turn-tables, or by points and crossings. The latter class may be further divided into fixed and movable points.Flat sheets and turn-tables, owing to the time and skill needed by the trucker in using them, are seldom of great value with large tonnages, unless for purely temporary work, and the choice narrows down to one between fixed and movable points andcrossings. Both systems have their disadvantages - movable points being liable to jamb with dirt and get out of order, whilst with fixed points trucks may sometimes run over the points and capsize, or go on to the wrong line, though this is not of frequent occurrence. On the other hand. the fixed points are simple, easily laid, and strong, and there is no necessity for the trucker to work any levers, the truck being guided on to its new direction by screwing.Cast-iron points and crossings were first introduced into the North mine during the opening-up of the 950-ft. level, and the first arrangement was designed for a double turn-out in the main crosscut. Since then both the points and crossings have beenmodified several times, and it may be interesting to briefly outline the various forms through which they have passed, showing the reasons for the retention of some features and the rejection of others.

Jan 1, 1915

Geological hazards such as faulting, basement ridges, and zones of "thin" (< 6 m) coal have a major impact on mining economics of underground operations in Huntly Coalfield. Experience has shown that drillhole-based investigations do not yield sufficiently detailed models of the coal seam to allow management of the planning risks associated with these hazards. Consequently, operational performance is affected by unplanned costs associated with lower productivity, loss of coal reserves, and expensive strata control remedies in problem ground conditions. Huntly Coalfield is a challenging environment for acquisition of good quality seismic reflection data due to the very thick (10-85m) weathering layer. Since 1994, successful acquisition of 2D and 3D data has been achieved through a combination of careful testing of technical parameters and experimental trials prior to committing to production recording. High resolution seismic reflection (HRSR) is proving to be an investigations technique which generates accurate and reliable models of the coal seam and associated structures, such as normal faults and topography of the surface on which the coal seam rests. The HRSR technique has been applied and developed in the Okowhao Sector where Huntly East Mine is developing and extracting coal reserves. Results of a recent 3D survey demonstrate that this technique is capable of revolutionising risk management in mine planning for underground mines in structurally complicated coal deposits.

Jan 1, 1997

Shortly after Denny, Robson, and Irwin published their first paper in 1937, on the prevention of silicosis by metallic aluminium, experiments were begun on the practical application of the discovery.It was thought at that time that aluminium powder, to be effective in aluminium therapy, would have to be intimately admixed with siliceous dust at the latter's source. There followed several years of experimental work underground, during which the application of aluminium powder was tested in:(1) Speakers on machine columns, vibrated by drills.(2) Vials placed in drill holes to be blasted.(3) Both homogeneous and heterogeneous mixture with explosives.(4) Packages with tamping.(5) Compressed-air lines.(6) Special compressed-air ejectors for use while drilling and after blasting.(7) The discharge of ventilation fans.(8) The filters of respirators.It was concluded from this research that any adequate method of introducing aluminium powder into a mine atmosphere would require too much extra gear, supervision, and aluminium p;wder, and would interfere unduly with underground routine.Later, animal experiments by Denny, Robson, and Irwin2 showed that aluminium powder provided effective therapy when inhaled independent of silica dust. Therefore, some means of surface treatment was deemed more practical.APPARATUS USED IN THE DEVELOPMENT OF ALUMINIUM PROPHYLAXIS SAMPLINGA basic requirement was a method of sampling to assess accurately the particle-size concentrations of dispersed aluminium powder. Konimetry, though regularly practised at McIrityre, was inadequate for the research in mind. On the other hand, the efficiency of the thermal precipitator was recognized as being very high. Accordingly, the latter instrument was chosen as best suited to our needs. Through the courtesy of the Ontario...

Jan 1, 1945

By Orr C. W

Continuing the systematic investigation of the influence of elements on the properties of lead(1). If the effects of additions of copper (up to 0.3%) on Port Pirie lead have now been determined in so far as creep rate is concerned.The results in the present paper contain also a survey of the influence of copper on the micro-structure of lead, a feature which has not appeared in the previous papers of this series. Further, it has now become known that creep is but little related to the more usually determined properties such as hardness and tensile strength. Since, however, these properties are of considerable importance in connection with the fabrication and use of this metal. Brinell hardness determinations have also been made and are here included.It is becoming more and more realised also that to be useful, creep data should refer to stresses of the order of those used in practice. This is due to the fact that as soon as deformation takes place, the properties of the metal are automatically changed. Lead does, of course, creep during industrial use, and probably (in lead chamber construction for example) extensions of the order of 5%...

Jan 1, 1938

By M Wimmer

LKAB operates two underground iron ore mines located in the northern part of Sweden, both using sublevel caving (SLC) as the mining method. Knowledge of the mechanisms of gravity flow is important since it affects both ore recovery and waste dilution. This paper describes results from a large-scale field test carried out at the Kiruna mine with a focus on gravity flow. It is part of Work Package 2 in the I2Mine project financed by the EU. A total of ten rings were blasted. Smart Markers based on radio frequency identification technology were used to monitor the gravity flow. An accurate delineation of the isolated extraction zone requires reliable detection of all recovered Smart Markers and precise knowledge of the 3D position of the markers within the burden. It was therefore necessary to carry out borehole deviation measurements (collar, alignment and trajectory). The blast performance was monitored by high-speed filming, near-field vibration monitoring and velocity of detonation measurements. Three-dimensional stereo images were taken from the drawpoint and the loaded bucket after each mucking cycle. Based upon that, fragmentation was assessed both in 2D and 3D. Furthermore, volumetric differences were determined at the drawpoint, which reflects the mobility of loaded material. For draw control, the Fe content is estimated by measuring weight and assuming a full bucket. The measured volume of rock in each bucket further improves this estimate. Possible flow disturbances occurring at the drawpoint were revealed by video recording. Two-dimensional laser scanning was carried out during mucking to track the position of the bucket and estimate the position and slope of the muck pile.The results from this test clearly show that the gravity flow in the large-scale sublevel cave in Kiruna mine is often of disturbed character. Standard draw occurred only in three rings and shallow draw in the remaining seven rings. In five cases, shallow draw developed towards standard draw, but occurred at rather late stages during extraction (70–125 per cent). The maximum width of the draw varied between 10 m and 13 m except for one ring (6 m). The draw reaches the cave rather early (5–25 per cent extraction) in shallow draw situations and much later (about 50 per cent) during standard draw. Waste originates from above in most cases, while more significant portions often occur at about 20–45 per cent extraction.All the results from this extensive field test are not yet fully analysed, and further field tests are planned. A more detailed insight into gravity flow in large-scale SLC and possible influence by drilling, blasting and the mucking procedure is expected in the future.CITATION:Nordqvist, A and Wimmer, M, 2016. Holistic approach to study gravity flow at the Kiruna sublevel caving mine, in Proceedings Seventh International Conference and Exhibition on Mass Mining (MassMin 2016), pp 401–414 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 9, 2016

Wire rope, when used for hoisting on a mine is one of the most vulnerable units in the most expensive group of installations on the mine. With the introduction of hoisting on the Koepe sheave, a new technique was established. This innovation brought with it certain advantages which long had been recognized and which are being developed further.A need exists for the development of an infallible non-destructive testing device for wire ropes and it is axiomatic that the development and application of such a device should be coupled with the physical examination of mine hoisting systems. Therefore an integrated type of research programme is necessary in order to correlate the effect of shock loading with rope damage, which may be detected ultimately bynon-destructive means. This paper reviews certain historical aspects of investigations on this topic and it outlines a policy for research which can cope with a.c. or d.c. methods of excitation of the rope.INTRODUCTIONThe importance of wire rope in mining operations is often not fully recognized. A wire rope when used for hoisting in a mine shaft should be regarded as a "machine" forming part of a system of machines, and consequently it should be specified as such when it is purchased, it should be maintained as such during its working life, and it should be discarded only when it has done its duty and has been rendered either unsafe or uneconomic for further use.Every mine shaft, vertical or inclined, has in it one or more wire ropes which are used to transport men, material, and ore. Considering the long history of wire rope haulage and the large number of rope applications, it is a tribute to wire rope makers and to mine maintenance engineers, throughout the world, that not many serious accidents have occurred because of failure of wire rope. However, when a...

Jan 1, 1965

Copper Extraction from Scrap Cables by Biotechnological Means

Sep 13, 2010

The Mineralogical Researches of Gold Ores and Technological Products at Operating Factory in Olympiada Mine (Russia)

Sep 13, 2010

The Central Andes in Peru, Chile, Bolivia, and Argentina , contain two contiguous terranes which were accreted to Gondwanaland between the end of the Devonian and the end of the Triassic. These terranes, Arequipa in the north, and Chilenia in the south, differ from each other in the timing and style of their metallogenic development. However, they contain over 90% of the Central Andean porphyry copper resource. The copper porphyries in the Arequipa terrane are Paleocene to lower Oligocene in age, whereas the Chilenia deposits are mid-upper Cretaceous and mid-upper Miocene. Porphyry copper deposits occur outside these terranes, but are all Miocene in age. Miocene porphyry-style mineralisation also exists in the Arequipa terrane, but is copper-deficient and gold-rich. The accreted terranes may have favoured porphyry and other styles of copper mineralisation because they possessed relatively thin continental crust compared to adjacent parts of the Andes. Crustal thickening which commenced at about 30 Ma in the Arequipa terrane coincided with a major change to polymetallic, precious metal mineralisation which commonly displays high sulfidation characteristics.

Jan 1, 1995

The design of excavations in high displacement mining environments requires consideration of both the load and displacement capacity of the ground reinforcement and support systems. This paper is a case study on the design of point anchored rebar bolts using laboratory tests and field trials at the Ridgeway Deeps block cave. A laboratory testing program was carried out to measure the mechanical properties of the Strata Control Systems R27 Secura resin bolt which is currently being installed on the extraction and undercut level at the Ridgeway Deeps block cave. The aim was to quantify elastic, plastic and energy parameters for various bolt, mesh and plate systems. Experiments were performed on bar segments, bolt/plate systems, and bolt/plate/mesh/resin systems. The mechanical properties were calculated from tensile tests with a 500 kN Avery machine. Load-displacement data was collected from four different testing configurations. The laboratory results are compared with underground measurements and observations of bolt performance.

Nov 25, 2010

The ore milled from the Lead Lode of The Zinc Corporation leases consists of a fairly granular mixture of galena, marmatite, chalcopyrite, tetrahedrite, pyrrhotite, pyrite, and lollingite with a gangue association of calcite, quartz, bustamite, rhodonite, mangan-hedenbergite, garnet, fluorite, mangal1o-calcite and apatite. The silver content of the ore occurs in three minerals-tetrahedrite, dyscrasite, and pyrargyrite, the last two mentioned occurring in microscopic association only. Other metallic and gangue minerals are also present in this complex mineralogical association, but do not influence the milling operations. Fortunately, the silver minerals favour the galena and chalcopyrite as their host minerals, thus facilitating the recovery of both copper and silver in the lead concentrate. The ore from the Lead Lode assays from 14-18% lead; 3·0-4·5 oz. silver per ton, and 9·5-12·0% zinc.A parallel lode, known as the Zinc Lode, is well developed in The Zinc Corporation leases. This lode assays from 6-8% lead, 1·5 oz. silver per ton, 18-25% zinc with a siliceous gangue. The common Lead Lode gangue minerals-ealcite, rhodonite, bustamite-are very rare in present underground exposures. No metallurgical work was done on this ore during the pilot plant operations.The aim in the milling process is to produce: 1. A lead concentrate with the maximum economic recovery of lead, silver, gold, copper and antimony, and minimum zinc content.2. A zinc conc,entrate with the maximum economic recovery of zinc, cadmium, and cobalt, and minimum iron, arsenic and fluorine content.3. A waste residue containing sufficient granular material to be utilized as underground fill.In considering the economics of the milling practice the above three requirements plus consideration of the tariffs submitted by the purchasers of concentrates were the deciding factors in the evolution of the present milling practice.Towards the end of 1924 The Zinc Corporation Limited added to and adapted the old zinc tailings plant for the treatment of 5,000 tons of crude ore per week. This plant, which operated until January, 1936, was in general principles similar to the standard Broken Hill methods of ore concentration, whereby the galena was recovered by the gravity concentration methods of Hgging and tabling with selective flotation concentration of the residual galena and marmatite. One important difference from other Broken Hill plants was that the primary grinding of the jig tailing was performed with flint-loaded mills operating in closed circuit with revolving screens. Two primary grinding sections were installed, each...

Jan 1, 1941

Characterisation of Manganese Ores

Sep 13, 2010

Peculiarities of Quartz Distribution in Zinc Flotation Products and their Influence to Mineral Processing

Sep 13, 2010

By Pound J. R

THIS mine, which is the property of the S. and M. Syndicate, London, is located at Moina, in North-West Tasmania, 18 miles from Stavertorr railway station and 36 miles from Devonport. There are metalled roads from both of these places, and, althoughhilly, these are good for team or motor traffic. Mails and passengers are provided for by a tri-weekly coach service from Sheffield, a railway town, distant 23 miles. The Moina mining field is situated on a main spur between the Forth and Iris Rivers, andat an elevation ranging from about 500 ft. above sea-level at the Forth River to 2400 ft. at the All Nations mine. The elevation at the mine office of the S. and M. mine is 1900 ft. The average annual rainfall, as recorded for the past eight years, is. 68 in.This inclildes, however, a couple of years during which the rainfall was much above normal, and taken over a longer period 60 in. would be nearer the average.

Jan 1, 1919

A hard lump char containing only 4 to 5 per cent ash, 0·25-0·30 per cent sulphur and a trace of phosphorus has been produced from Latrobe Valley brown coal by slow drying and carbonization of ordinary industrial briquettes at temperatures between 7000 C and 14000 C. The briquette char can be made with a variety of reactivities by varying the maximum temperature of carbonization; the higher the temperature, the lower the reactivity. The strength of the fuel compares favourably with metallurgical coke made from black coal, though it may not be quite so resistant to abrasion. Experiments in a small experimental cupola indicate that it will make a satisfactory fuel for use in iron foundries. It may also find extensive application as a smokeless fuel in other branches of industry and in household heating appliances.INTRODUCTIONVictoria, like South Australia and Western Australia, is apparently without 'significant deposits of black coal of coking quality but there are huge reserves of brown coal of high moisture content (60-66 per cent) in the Latrobe Valley (well over 20,000 million tons have been proved) and there are other important deposits in the south central portion of the State (Herman, 1952).For three decades Victorian industries, including a few metallurgical firms, have been using the briquettes made at the Yallourn factory of the State Electricity Commission of Victoria (S.E.C.). These briquettes, having a moisture content of about 15 per cent and a calorific value of approximately 9,500 B.T.U. per pound, are satisfactory for certain grate-type furnaces but they are not suitable for use in cupolas of other shaft furnaces because they disintegrate badly on rapid heating.

Jan 1, 1956

Validation and Simulation of Optimised Compressive Crushing Ores and aggregates are used in countless applications all around in the society. The frequent and escalating usage of these natural resources requires efforts aimed at not only making do with what is available, but also undertaking actions to improve the production yield and the processes involved. This strive to improve the performance and efficiency of existing crushers and crushing processes has brought about research concerning optimisation of crushing plants as well as theoretical optimisation of crushing. Previous work shows that different applications and different materials require different compressive crushing in order to accomplish a theoretically optimal size distribution. These optimisation results, obtained by genetic evolutionary algorithms and evaluated with so called fitness functions, convey the theoretically optimal number of compressions and their corresponding compression ratios. Presented in this paper are thus some laboratory crushing tests, which are conducted in order to validate a set of previously optimised crushing sequences. More specifically, interparticle crushing sequences are carried out in a Piston-die testing equipment, where samples are sieved between each compression. The subsequent analysis of these results shows good correlation with model predictions, which combined with a comparative study between presented optimisation results and measured data from a real crusher indicate a significant potential for improvement. However, before redesigning crushers according to what is theoretically optimal, the resulting impact as well as the effects on the outcome of a crushing plant must be examined. Crushing plant simulations using the software PlantDesigner« are consequently performed. Models of existing crushers are altered, resulting in changed particle size distributions from some of the crushers in a crushing plant. Thence, it is concluded that significant gains can be made in terms of capacity, process yield and energy consumption.

Sep 13, 2010

By P K. Smith, R J. Ryan, W R. H Ramsay, D C. Arne, F P. Bierlein

Turbidite-hosted, mesothermal lode gold deposits in Paleozoic metasedimentary rocks of the Buller Terrane, western South Island have a similar geological history and genesis to the Paleozoic lode gold deposits ofVictoria, Australia and Nova Scotia, Canada. In all three regions the gold deposits are hosted by interbedded meta-sandstone and meta-argillite that have been folded and regionally metamorphosed to greenschist facies, and locally in Nova Scotia to amphibolite facies. The gold deposits are typically narrow, structurally controlled quartz veins associated with dilatant zones in reverse faults or fold-related fractures. The principal vein types include: bedding parallel or concordant veins, discordant veins, saddle reefs, and stockwork veins. En-echelon and "ac" type veins are sometimes also gold-bearing in Nova Scotia. The contrasting competency of the host meta-argillite and meta-sandstone beds is an important factor in vein formation, particularly for the bedding parallel veins, which are typically developed within meta-argillite beds or along the contacts between meta-argillite and meta-sandstone. Veins found within meta-sandstone units are generally discordant. The deposits in Victoria are well known for their bedding-parallel veins, saddle reefs ( Bendigo ) and leather jacket reefs (Ballarat). Bedding-parallel veins are also common in Nova Scotia , along with a few examples of saddle reefs. In contrast, vein formation probably occurred later in the deformation history of the Reefton and Lyell goldfields, with most veins being bedding discordant and more typically aligned with the axial plane cleavage of the folds rather than bedding planes. The quartz lodes in one deposit, Globe-Progress, strike approximately perpendicular to the bedding and fold axes. No saddle reefs have been recorded from the Buller Terrane. Mesothermal vein morphology reflects the amount of fmite strain, the strain rate, competency contrasts, lithotypes, and the confirming pressures to which the system was exposed. On the basis of comparable depositional depths and rheologies of the host rocks, a controlling factor influencing the development of different vein styles (and timing) might be finite strain, as exemplified by the tightness of folding in the host rocks. Folding appears to be tighter in the Victorian rocks than in either the Buller Terrane or Nova Scotian rocks.

Jan 1, 1999

By Yindong Yang

Despite the importance and usefulness of basicity in metallurgical slags, the optimum quantitative expression of it has remained elusive, partly due to the fact that the precise concept of basicity has not been properly clarified. The two basic approaches to the concept of basicity are the Lux-Flood, which perceives basicity in terms of the activity of the free oxide ion, a O2- , and the Lewis, which perceives basicity in terms of the ability to donate negative charge. The former has been almost universally adopted in the area of metallurgical slags, while the latter has been increasingly accepted in the field of glass chemistry. In this paper, some difficulties of the Lux-Flood approach are pointed out, including the need for indirect measures of a O2- , which have proliferated in recent years. Accordingly, it is suggested that the Lewis approach has a good deal to commend it, and that the quantification of it in terms of optical basicity is the best measure of basicity available, which should therefore be more widely applied in metallurgical slags than it currently is. The fact that there are intrinsic problems in evaluating the optical basicities for the transition metal oxides is acknowledged, and a new scale is recommended. The patterns of iso-optical basicity lines in ternary systems are shown to agree well with the pattern of iso-activity and iso-capacity lines under appropriate conditions. * Originally published in the Proceedings of MINPREX 2000, published by The AusIMM.

Jan 1, 2001