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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 Roberto J. Guardia, Robert A. Robinson, John Wilkerson, Wick Haxton

Several candidate sites have been proposed for the Deep Underground Science and Engineering Laboratory (DUSEL), a facility that would provide over 2000 meters of overburden to screen out cosmic rays that would otherwise interfere with experiments. Types of anticipated experiments include: detection of dark matter and stellar neutrinos, and evaluation of deep microbial life forms. Engineering experiments might include more refined scanning devices to “see” rock defects ahead of tunneling, improved predictive models for groundwater inflows and tunnel support requirements, and improved instrumentation for monitoring in-situ stresses, rock deformations, and pore water pressures. Spin-offs from this research might include more sensitive security detectors for scrutinizing shipping containers, new drugs based on new microbes, and improved sensor systems for tunneling. A site near Leavenworth, WA, was assessed and shown to have numerous topographic and geotechnical advantages. Rock cover is on the order of 2250 meters. The granitic bedrock is suitable for tunneling a variety of large underground openings.

Jan 1, 2005

By E. Farrokh

Estimation of the cutter life and cost is a part of evaluating performance for a hard rock TBM in any project. Various approaches has been proposed for calculation of disc cutter life in various rock types based on machine specifications and rock strength and abrasivity. Cutter change time is a parameter that is used in some of the estimates and is defined as the average time required for changing a cutter on the cutter head and cutter life is the number of cubic meters of excavated rock per each disc cutter. Analysis of cutter life information of several tunnel projects from around the world has revealed that the published models for estimation of cutter consumption require some revisions to offer a more accurate prediction. The preliminary analysis of data shows that the average cutter change time is approximately 66 minutes for different cutter sizes and there is a minimal difference between corresponding cutter change times of the large (e.g. 19 or 20 in) versus smaller cutters (e.g. 15.5 to 17 in). This paper reviews the available and published cutter life data from various projects. It also introduces new models for estimation of cutter life and cutter change time as part of TBM down time and utilization analysis.

Feb 27, 2013

By V. Galla

Waste rock facilities (WRF) generally have a large footprint depending on the strip ratio the mine plan provides. Considerable planning is involved during the initial phase of the mine plan regarding the location of the WRF. As the mining operations are commenced the locations of the WRF change accordingly with the variations in the mine plan involving feedback and support from local communities and stakeholders. Waste rock facilities management becomes challenging when the area available for placement is limited due to terrain topography, environmental and permitting constraints. Risks associated in the design of waste rock facilities constitute particle size of rock, chemistry associated with the rock for reactivity and stability of the over all facility. This paper will provide some insights on designing, scheduling and managing a WRF. Emphasis on geotechnical, geophysics and geochemistry aspects of waste rock with reference to design, construction process and scheduling of WRF are also presented. Design improvements in the reclamation slope of WRF for erosion control will be discussed. Continuous improvement (CI) methodology will be introduced in the process of WRF operations. Current practices and future recommendations towards sustainability and consistency in operating WRF will be discussed in conclusion.

Jan 1, 2011

By G. A. Grandy, P. F. Thomas, C. D. Danecki

When considering the mill drive system for a grinding application, a large number of questions must be answered. Depending on the mill size and type, the mill can be driven by several configurations of drive systems: a single low-speed motor connected to a pinion driving a ring gear, two low-speed motors connected to two pinions and driving a ring gear, or a gearless motor mounted directly. In addition, a gear drive system can have a reducer placed between a high-speed motor(s) and pinion(s) or a power path splitting pinion stand. In some designs the reducer is integral with the pinion stand driven by a high-speed motor. The technical and commercial implications of several mill drive options are presented. Initial cost, cost of installation, cost of commissioning, and cost of operation and maintenance are presented for each drive option considered. The impact of each drive system on the design, cost and operation of the overall plant electrical system is discussed. Also, consideration is given to mill drive availability, and the potential cost resulting from delays in plant production.

Jan 1, 2001

By G. Balletto, C. Furcas

"The mineral raw materials industry is a key-component of the Gross Domestic Product of industrialised economies, closely related to both the building and the industrial sectors. Despite this, at local level mining and quarrying are associated with both irreversible environmental damage and several visual alterations affecting the natural landscape. In this sense, SIA (Social Impact Assessment) has become a strategic tool that can not only improve the prediction but also the assessment of the social impact by involving the local communities in a participatory process. Taking into account the SIA experience, together with the examination of some relevant international case studies, it is possible to draw up a list of good practices for mining project management, from exploration through to closure and beyond, with quarry restoration. Such good practices will complement the existing studies, focusing on environmental issues, with the social issues arisen considered in SIA application."

Jan 1, 2011

By Ann L. Backstrom

The Apex Tunnel is part of the Southern Nevada Water Authority?s proposed Clark, Lincoln, and White Pine Counties Groundwater Development Project. The project is intended to develop unused Nevada groundwater for meeting the water needs of Southern Nevada and would involve over 322 km (200 mi) of water transmission facilities. The Apex Tunnel, as currently conceived by ongoing planning and environmental analyses, would extend 2804 m (9,200 ft) through a structurally complex terrain of Paleozoic carbonate rocks and younger basin fill deposits and will traverse both public and private lands. Several faults cross the tunnel study area, juxtaposing rocks of varying lithology and degree of folding, and creating intervals of differing rock conditions along the tunnel alignment. This paper discusses how the geotechnical program was developed to be flexible and allow for rapid implementation of revisions based on new knowledge that became available during program execution, resulting in more effective decision making and enhanced value from the geologic investigation during the planning phase of the project.

By S. J. Schatzel

Coal mine longwall face ventilation is an important component of the overall mine ventilation system. Increases in the production rate due to higher capacity mining equipment tend to increase methane emission rates from the coal face, which must be diluted by the face ventilation with a minimal opportunity for assistance from additional control equipment (i.e., surface boreholes). Increases in panel length, in some mines approaching 6,100 m (20,000 ft), and panel width provide additional challenges to face ventilation designs. Face ventilation can also be affected by communication with the methane-laden gob gas reservoir. Except in a two-entry system, belt air cannot be used to ventilate the face in the US, except in limited cases. This relatively recent requirement has further challenged the mining industry in maintaining adequate longwall face ventilation. To assess the effectiveness of current face ventilation practices, a face monitoring study was combined with a tracer gas test on a longwall face. The study was conducted at a US mine operating in a thick, bituminous coal seam with some self-heating tendencies. Multiple gob gas ventholes were located near the face and produced a small portion of ventilation air in their production flow. Initial results show that emission rates on the longwall face showed a very limited increase in methane concentrations from headgate to tailgate despite the occurrence of methane delays during monitoring. Increases in methane concentrations in the tailgate entry in the vicinity of the longwall face T-junction appeared to be produced primarily by gas flow from the gob, not from increased emissions from the face. Barometric pressure variations were substantial over the course of the study and varied on a diurnal basis, as is typical of many mining operations. Suggestions are forwarded for reducing longwall face methane concentrations.

Jan 1, 2012

By K. J. Stanaway

Major world ilmenite and rutile accumulations reveal similar regional geology and Proterozoic age deeper crustal source rocks. During crustal collision titanium crystallizes as ilmenite and rutile at buried sites of high pressure and temperature rock metamorphism. Hydrothermal activity can convert titanium minerals to rutile, but titanium migration and enrichment seem only local. Many melts crystallize rocks with iron-titanium oxides in solid solution, but titanium enrichment at economic scale takes place in basic intrusive melts often associated with anorthosites and charnokite. Sedimentary placer enrichments have formed since the Proterozoic with water-resistant ilmenite, and rutile segregating by gravity from quartz sands deposited from flowing water. Placers have residual, alluvial, strand and shallow marine variants. Time, organic acids, and sand permeability play lead roles in the leaching of iron from ilmenite during weathering and diagenesis.

Jan 1, 2005

By Carl Pinches

Underground or surface mining is only the first stage in the ore mining process. Once the ore is mined, it is transported to the surface for further processing. Generally, this is done to extract the particular metal or other component of the ore that has commercial value in its purified form. In its raw state, there are typically between 4 and 7 g/t (0.12 and 0.2 oz/st) of valuable material from rock mined. Once on the surface, the ore is crushed and milled in order to obtain smaller rock particles and to expose the minerals that contain the desired metal or component. Mixing the milled ore with water, a process known as ?froth flotation,? can be employed. This technique consists of a series of tanks, or ?cells? through which the process liquid flows. To obtain the maximum recovery, the milling and flotation process will often be repeated a second time. An increase between 100 and 1,000 g/t (2.9 and 29 oz/st) of rock following this stage of the process is typical. Efficient recovery is key to maintaining a profitable mining operation. The measurement and control of the froth flotation process is vital.

Jan 1, 2010

By D. Keech

The Conveyor Equipment Manufacturers Association (CEMA) specification B105.1 “Welded Steel Conveyor Pulleys” adequately defines standard pulleys for most aggregate material handling applications. However, many aggregate applications demand pulleys of higher capacity and reliability than that offered by CEMA pulleys. This paper examines the CEMA Pulley Standard and pulley specifications for aggregate applications requiring greater capacity and reliability than the CEMA Pulley Standard. Higher reliability increases the uptime and has a lower total cost of ownership.

Jan 1, 2003

By J. Davies

This paper describes the successful management and construction of the 5.18 m (17 ft) diameter, segmentally lined, North Dorchester Bay CSO storage tunnel in Boston, MA. This 3,300 m (10,830 ft) long tunnel was mined through variable soft ground with only 6 m (20 ft) of cover, using an earth pressure balance tunnel boring machine. These extensive data collected from the projects unique automated and internet accessible geotechnical and TBM monitoring system, will be examined and used to explore the relationships between geological conditions, TBM operating parameters and measured settlements. The paper will also discuss the use of screw revolutions as an indicator of muck volume.

By A. D. Davis, C. J. Webb, C. S. Johnson

The Belle Eldridge Mine is an inactive lead-zinc mine in Spruce Gulch south of Deadwood, South Dakota. Acidic mine drainage (AMD) produced at the site drains into Spruce Creek, a tributary of Whitewood Creek. The site is on U.S. Bureau of Land Management (BLM) property. Extensive fieldwork was done at the Belle Eldridge Mine through the cooperation of the BLM and the South Dakota School of Mines and Technology. The site was extensively mapped to identify physical and environmental hazards such as tailings, waste rock, collapsed buildings, adits and workings. An exhaustive search of the historical records of the Belle Eldridge Mine was conducted. Maps of the under-ground workings of the Belle Eldridge dating from the 1930’s and 1940’s were found. The maps were used to correlate currently collapsed features to old adits and tunnels. Using hand corers and a portable drill rig, waste rock, tailings and soil core samples were collected and depth to bedrock was determined and the total volume of waste and tailings pile were determined. Related work examined the hydrology of the site. The site is very complex hydrogeologically. Numerous underground and surface workings and tunnels add to the complexity. Several seeps are located at the site, one of which is producing AMD. Recharge to the site was studied, and a 100-year flood plain map was produced.

Jan 1, 2000

By Kent von Maubeuge, Charles R. Landis

The global bentonite industry is a dynamic market balancing a range of end uses with an ever growing number of bentonite producers. In addition, markets in developed countries are elevating the level of detail and transparency for materials reporting in programs, such as the Registration, Evaluation, Authorization and restrictions of Chemicals (REACH) program in the European Union. Bentonite is impacted by programs of this nature. The majority of the bentonite products sold around the world are sodium bentonites. These sodium bentonites consist either of natural sodium bentonites, or naturally occurring bentonite dominated by divalent interlayer cations (Ca+2 andMg+2) subsequently exchanged with sodium cation. The latter variety is often called “sodium-activated“, or “soda-ash treated” bentonite. Once exchanged with sodium, these bentonites are often difficult to distinguish from natural sodium bentonites using common commercial testing protocols. Due to their similar colloidal and bulk chemical properties; the lack of test procedures designed specifically to identify this product feature; and the failure to completely or effectively explain their differences, sodium-activated bentonite is often considered to be identical to natural sodium bentonite in the industry. This article defines both general types of sodium bentonite and presents a technique that could serve the industry as a tool to confirm the variety of sodium bentonite in question. Specifically, geochemical properties such as carbon (C13/C12) and oxygen (O18/O16) isotopic ratios can distinguish activated, even slightly activated bentonites, from bentonites not introduced to additional sodium during manufacture.

Jan 1, 2004

By John Rudolf

Metropolitan Washington Airport Authority is currently undertaking the first Phase of Metro?s Extension to Northern Virginia. A wide range of tunnel options was considered for the Tysons Corner segment that involves about 20,000 feet of track and four stations. After consideration of many options that involved EPBM single track tunnels, NATM tunnels and large bore tunnel concepts for the entire Tysons alignment, the design now being progressed into construction involves two 520 meter (1,700 feet) long soft ground NATM tunnels with several hundred feet of cut-and-cover construction. The paper discusses the process that led to selection of the short NATM tunnels as the most feasible of the options considered for Tysons.

Jan 1, 2008

By Christian Maguire

Tunnel contracts in New York have in recent years had few bidders with the bids received being much higher than anticipated. Since 9/11, security has become a key issue in planning key infrastructure projects in New York. This is especially true in the case of large water supply tunnels. Striking the right balance between cost and security was the major factor in determining the best configurationfor the Kensico-City Tunnel. This paper outlines the efforts made to determine realistic probable bid costs for the tunnel contracts, and the innovative approaches taken to deal with security issues.

By Theophilus Mensah, Kwame Awuah-Offei

Engineers face significant challenges when determining what geometry provides the most profitable and safe stope for extraction. Several techniques and optimization algorithms have been developed in recent years, but most fail to find optimal solutions because they are heuristic or LP-based without efficient geometric constraints. This paper presents a two-dimensional binary linear programming (BLP) model for determining the optimal combination of blocks in a stope that maximizes the economic value of the layout of stopes for a sublevel deposit. The work draws from Queyranne and Wolsey’s (2017 & 2018) formulations of tight constraints for bounded up/down times in production planning problems to formulate novel and efficient geometric constraints along with geotechnical and grade constraints for the BLP stope layout optimization problem. Results from the model indicate that it is possible to formulate efficient shape constraints in LP-based approaches. The model used for the numerical example contained 144 valuable blocks out of 774 blocks, which translates into an economic value of $53.21M. The BLP model selected 60 valuable blocks and 13 waste blocks that met all constraints translating into a maximum economic value of $34.4M in 1.83 hours within a gap tolerance of 0.00%.

Jun 25, 2023

By Hongjie Yang

The No. 10 metro line of Shanghai city is 36 kilometers in length and will pass through the operating airport runway by using tunnel boring machine with earth pres-sure balance mode. Although there are examples through world that tunnels pass through airport runway and tunnelling underground is not a difficult undertaking technically, there is rare experience in China for the similar projects especially in Shanghai saturated soft soil region. Shanghai soft earth is famous for its high compressibility, high rate of water content, weakness in strength, large deformation and different characteristics in earth strata. Besides, the whole construction process will be under ultra-large airplane dynamic load on the surface ground over the tunnel, which increases the risks of construction process. This paper evaluates the feasibility of building the metro tunnel under such an extremely serious condition, especially the subsidence of ground surface caused by advancing of tunnel boring machine, which also is the most important control target for the safe operating of the runway. Furthermore, this paper discusses the effective measures to keep the settlements in the permissible level during the whole working period for the tunnel from aspects of plan, design and construction.

By C. Guan

Since it was patented in 1942, the Crago process with fatty acid rougher flotation followed by deoiling and amine cleaner flotation has become the standard for phosphate flotation in Florida and North Carolina. This paper outlines the basic fundamentals involved in this proven technology. Included are the mineralogy of the flotation feed, the solution chemistry and the interfacial phenomena. The process variables affecting the performance of this technology are also discussed.

Jan 1, 2009

By L. M. Lenahan, J. D. Sheets

INTRODUCTION The Raleigh-Durham International Airport (RDU) in North Carolina is the fourth largest airport in the southeast region of the United States. The Raleigh-Durham Airport Authority is currently underway with planning, designing and constructing are placement Passenger Terminal as part of the Major Capital Improvements Program at Raleigh Durham International Airport. The Terminal C Expansion and Renovation Project will replace the existing Terminal C structure with a new processor building and concourse. The project is separated into several contracts. The early stage contracts are constructing a west side storm water management facility, relocating taxiways, installing new drainage systems, installing new aircraft apron pavement, Demolition, the Central Energy Plant and Early Foundations. The later projects are the Terminal Building, Passenger Boarding Bridges, Information Technology Systems and Integration, Furniture, Furnishings & Equipment and Specialty Millwork. The Terminal Building will be constructed in two phases. Phase 1 constructs the north half of the new terminal. Airline operations will move to the new terminal at the completion of this phase. Phase 2 completes construction of the south processor building. The full build out of the project, subject to funding availability, will replace the remainder of the south concourse. The Program’s primary focus is to replace the existing passenger Terminal C with a new terminal that will provide more passenger gates and larger passenger screening, ticketing and baggage handling facilities. The planning for the New Terminal C Program began in 2002 with construction starting in March, 2003. The continuing growth of passenger airline travel in the Raleigh/Durham metropolitan area requires RDU to expand its facilities to keep up with the present and future growth within the Region. In October of 2002, the RDU Airport Authority selected Parsons Transportation Group as the Program Manager/Construction Manager to help assist in the development of the Terminal C expansion program. RDU Airport Authority selected the Seattle Washington Office of URS Corporation as the Engineer of Record for the West Side Storm Water Management Facilities. The Westside Storm Water Management Facilities Project became one of the early critical path activities of the overall RDUAA Terminal C Expansion Program. The Briar Creek Reservoir had been constructed to accommodate storm water runoff to the west of the Airport. The existing 1.5 m culvert that drained runoff from the airport terminal (area) to the reservoir was insufficient in supporting the additional flows

Jan 1, 2005