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At present, discounted cash flow analysis is generally accepted as the preferred method of valuation of mine projects in surface coal mining. One of the major reasons for that is its ability to take into account the time effect of money over the life-of-mine. As a looking-forward method, it requires forecasts be made with regard to economic, technological, technical, geological, and environmental conditions that will prevail in the future. All forecasts are inherently uncertain as they are a function of the uncertainty of all variables of the discounted cash flows analysis. This indicates that the only alternative for modeling the uncertainty in the project evaluation is the development of adequate risk models to serve the decision-making process. The paper offers a model of project cash flows at risk in strip coal mining, which is an integrated corporate risk management solution. The model is based on a stochastic approach that provides the answer to the question about how large is the deviation between stochastic cash flows and the planned value (or that used in the budget) at each time step of the discounted cash flows analysis, that is due to the uncertainty in the model variables. A solution is worked out for the allowable range of the stochastic cash flows variation that determines the probability of achieving the planned value of a mine project. The Monte Carlo simulation technique is used to model the stochastic behavior of the project variables. A case study of an opencast coal mine project is provided to illustrate the applicability of the risk model. The results obtained provide a new understanding of the mine project risk as a component of the project discount rate.

Jan 1, 2006

By S. Dixon

The Peñasquito deposit in Mexico is one of the largest grassroots precious metal discoveries developed in recent years. Goldcorp Inc. acquired the gold-silver-lead-zinc property with the acquisition of Glamis in 2006. The Peñasquito property is located in the northeast corner of Zacatecas state, Mexico. The elevation of the property averages 1,900 m (6,200 ft) above sea level. It is situated in a wide east-west valley. Minera Peñasquito, S.A. de C.V., wholly owned subsidiary of Goldcorp Inc. has operated twin SABC-flotation lines since June 2010. Each line is capable of processing 50,000 tonne per day using a SABC grinding circuit followed by flotation to produce lead and zinc concentrates. The addition of a Polysius Polycom HPGR 2417 with dual 3,000 kW drives to reduce the crushed pebbles produced by the SAG mills was planned to increase production to 65,000 tonne per day per line. The production has been limited to 100,000 tpd due to operating issues in the grinding circuit. The operating issue has been the amount of pebbles generated by the SAG mills is significantly less than originally planned. This paper describes the planned installation of a crushed augmented feed to maximize utilization of the HPGR capacity. This coupled with full utilization of the SAG and Ball Mill available energies there is the potential to achieve a 50% total capacity increase from the grinding circuit.

Jan 1, 2012

By S. C. A. Franca, M. T. Millqvist, A. B. Luz

Laboratory experiments were performed on a Brazilian diatomite from Bahia State to produce an industrial product for use as a filter aid. Bench and pilot plant tests were conducted consisting of: diatomite desegregation, organic matter and clay removal, filtration, drying and calcination. Calcination temperature and sodium carbonate addition influenced diatomite particle size distribution. Optimum filtration rates for calcined products were obtained at 900°C and 47 min. residence time with 3% (w/w) of sodium carbonate addition, and resultant products met specifications imposed on filter aids.

Jan 1, 2002

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

Things are going well in the mining and construction industries world-wide. So good are things that from April 23 to 29 more than 500,000 visitors involved in those two industries attended the bauma 2007 Trade Show in Munich, Germany. Bauma is an international trade fair for construction and mining equipment that took place at the New Munich Trade Fair Center. It is hosted by Munich once every three years. This year was the most successful bauma ever and further strengthened the shows position as the world leader in the field.

Jan 1, 2007

By Russell Barr

Strategic alignment throughout a mining organization is critical to effective strategic execution and good business performance. The alignment of strategic goals and objectives in the different operations and functions in a large global operation is a challenge facing executive management in light of legacy organizational structure and processes. An additional confounding factor in strategic alignment of acquisition and new project expansion is that mining projects and operations are frequently multi-cultural in terms of country origin as well as organizational culture. This brings together many cultures to accomplish the project or complete an acquisition (Financial Times, 2006). The mining industry presents numerous challenges to executives and mine management by the nature of the operation and organizational processes used in running it. For example, there seems to be an inherent conflict between the individual goals of the components that constitute a mineral processing operation (the mine, the mill, the smelter and the refinery), and lowest cost production of the final product. Managers of these component operations have specific objectives passed down from the corporate executives. Those site managers tend to be compensated based on throughput and perform to this main metric. This tendency to maximize throughput for an individual operation can contradict the general process flow of a best-fit solution to producing the final product at the lowest cost. In an effort to become more aligned, firms are increasingly using balanced scorecard derivatives at great cost and effort (whether internally or externally sourced) in an attempt to help with strategic alignment. Balanced score-cards have been effective in providing a good strategic scorecard to companies with some measure of strategic alignment. Many firms make this effort of using balanced scorecards. However, most firms are not strategically aligned or, at best, are sub-optimized, in terms of strategic alignment (Kaplan and Norton, 2006). The tendency in mining operations is to focus on operating individual components as optimally as possible and stretching existing assets to the best possible production rates. ?Making tons? is the common operational focus. Numerous factors underpin this focus and can affect the ability of the operation?s ability to align properly with the corporate strategy and strategic goals. Critical factors are legacy organizational structure, culture, processes and performance measurement systems. Changing anyone of these factors to affect better strategic alignment requires significant attention to managing change.

Jan 1, 2008

By J. Winterton

Estimating the residual metal inventory of large heap leaching operations is desirable for many reasons. Several methods have been tried with limited success. Drilling data from the Valley Leach Facility at AngloGold Ashanti's Cripple Creek and Victor Gold Mine has been used to develop a robust inventory estimation technique. The technique is presented along with discussion of the particular inventory components and evaluation methodologies.

Feb 27, 2013

By K. S. Gritton

The implementation of advance control systems brings with it the expectation of improvements in process performance and controllability. Specifically, expectations include a shift in the mean value of the gross measure of process performance, and/or a decrease in process variability. When determining statistically-defensible measures of these benefits care must be taken to preclude process parameters from biasing the determination. Specifically, the effects of ore type, shift personnel, water availability, etc., must all be separated from the effect on performance of the advanced control system. Methods are presented for separating the effects of process control from other process parameters. Examples of the required data analyses are also presented.

Jan 1, 2001

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

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 Nick Barton, Khosrow Bakhtar

Two plate load tests of 1 m2 area were per- formed in a pressure tunnel at the Rocky Mountain Pumped Hydro Project. Reaction for the 250 tons loading in this 10.5 meter diameter tunnel was provided by deeply anchored, diverging rock bolts, eight per load frame. Pressure build up to 2.5 MPa was provided by circular flatjacks. Rock deformation was recorded at depths of approximately 0.3, 0.9, 1.2, 1.8 and 3.3 meters using axially located multiple position borehole extensometers. The tests were performed in representative units of massive shale and thin to medium bedded siltstone. Stress was built up in four equal steps to 2.5 MPa, held constant for one week for creep monitoring, then unloaded, reloaded and unloaded over a period of one day. The most deformable unit was the massive shale which exhibited 1.3 mm of permanent deformation at the surface after the first loading and unloading cycle, which included 0.36 mm of creep. After the second loading-unloading cycle, the permanent deformation had increased to 2.6 mm, following a maximum deformation at the surface of approximately 3.6 mm. At the maximum stress of 2.5 MPa, the tangent modulus averaged 0.4 GPa when loading, and 0.3 GPa when unloading. The thin to medium bedded siltstone exhibited only 0.17 mm of permanent deformation at the surface after the first loading-unloading cycle, which included only 0.05 mm of creep. After the second loading-unloading cycle, the permanent deformation had increased to 0.27 mm, following a maximum deformation at the surface of approximately 0.53 mm. At the maximum stress of 2.5 MPa, the tangent modulus averaged 6.2 GPa when loading and 21.9 GPa when unloading.

Jan 1, 1986

By H. Walqui, G. Rajala, G. Suardini

The Empire mine began operations on 1963. Low grade Magnetite ore is processed to produce iron pellets for blast furnace feed. Three expansions were added to the original plant and several equipment upgrades have been completed to improve the plant performance as the ore characteristics have been changing through the life of the mine. Size reduction is carried out by two grinding stages, the first one using autogenous grinding and the second one using pebble mills. Pebble crushing is also used to break the critical size fraction and increases primary grinding capacity. This paper describes changes in the configuration of the grinding circuits that have helped increase plant throughput and reduce power consumption by more efficiently utilizing assets available. Understanding the different components of the size reduction circuits and plant sections has allowed shifting part of the load from one section of the plant to another without affecting plant throughput.

Jan 1, 2007

By Glen Frank, David R. Chapman

Determining the number of boulders and cobbles that will be encountered in the tunnel envelope is one of the most difficult problems confronting the geotechnical engineer in the design of tunnels in glacial terrain. This issue is very important to the contractor, both in determining what methods will be used to construct the facilities and the advance rate that can be achieved for the chosen construction methods. The cost of constructing tunnels by pressurized face tunneling techniques is very sensitive to accurate characterization of the very coarse fraction (large cobble and boulder sized clasts), and no standard method is current available for characterizing boulders and cobbles. Careful use of large diameter borings and the sampling and analytical techniques outlined in this paper can provide a means to answer this difficult question. By performing large diameter borings and carefully recording and sampling the cobbles and boulders encountered, an estimate for the amount of these materials present in the formations sampled can be provided. Using this method allows the designer to communicate the expected geologic conditions to the prospective bidders in a manner that is both definitive and defensible. This paper describes the method as it was used in conjunction with the design of a large diameter sewer tunnel in the Columbus, Ohio area.

Jan 1, 2005

By K. Tabra

In a mine operation, the proper strategy to handle residues is one of the main concerns, in particular when dealing with mine/plant liquid effluents. Most active water treatment systems at metal mines rely on standard alkali-addition procedures. However, the increase of mineral prices, stricter environmental standards and high metal content in some effluents, has led to the development of alternative treatment techniques for their removal and/or recovery. This article presents a roadmap to face mine wastewater treatment requirement, with focus on two active treatment strategies: 1) conventional lime-based technology and 2) the use of NaSH or Fe(OH)3 for metal precipitation and separation, including possible valuable elements recovery. The Roadmap consists of 1) Approach to effluent treatment 2) Characterization 3) Precipitation tests 4) Solid/liquid separation tests and 5) Economic analysis.

Feb 27, 2013

By Richard Gertsch, Jack Eloranta, Leslie Gertsch

An ongoing research program is characterizing the ore qualities that most affect mine and mill processing of iron. Current practice uses assays of magnetic iron and silica, but additional qualities are needed for advanced process control. If additional qualities can be measured from core, blastholes, or process samples, they can be modeled and controlled similarly. What qualities, other than assays, hinder or facilitate beneficiation at each processing step, and how can they be measured in the mine/mill ore stream? This paper describes preliminary determinations of the effects of ore chemistry, hardness, blasthole drill performance, fragmentation control, and grindability on mill performance.

Jan 1, 2005

By K. S. Lackner, T. M. Yegulalp

We present a review of research and development for coal based clean energy systems aiming for zero emissions to the atmosphere. These systems can utilize all kinds of coal or other solid carbon sources such as tar sands as well as liquid hydrocarbons. The chemical energy of carbon is transferred to hydrogen and used in power generation, in fuel cells, or hydrogen combusting turbines. The waste products of these future power-generating systems are ash, sulfur compounds and CO2. We also summarize current and developing technologies for processing of CO2to produce mineral carbonates for permanent disposal, and associated byproducts.

Jan 1, 2003

By M. Zhang, M. Menabde, R. Middleton

Whilst mine planners almost universally assume deterministic forward commodity prices when undertaking valuations of mining projects, historical data well demonstrates that those prices are quite volatile. This paper seeks to understand and quantify how this forward price uncertainty will impact mining project valuation. This paper will also present a way of computing an upper bound on the expected Net Present Value (NPV) of a mining project given forward commodity price uncertainty.

Jan 1, 2007

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

The occlusion of unliberated gold particles in silicates and sulfides in crushed/milled ore dictates the recovery that can be expected. The grade of this occluded gold in cyanide leach residues shows a consistent, general relationship to the head grade of the ore, irrespective of mineralogy or geographical location. The residue grade almost invariably increases with the head grade, but not in proportion to it. This phenomenon appears to stem from the nature of the geological events originally responsible for creating the ore deposits. A statistically-based technique for determining the true head grade-tail grade relationship from gold plant operating data is described. The effect is illustrated with results from several worldwide gold milling operations analyzed over the last 35 years.

Jan 1, 2008

By C. C. Clark

The National Institute for Occupational Safety and Health (NIOSH), Ground Control Engineering Branch is investigating the use of shotcrete in weak rock mass mines with the objective of reducing fatalities and injuries resulting from rock fall accidents. When shotcrete is used as part of a multi-element ground support system there is a need to know when the material has developed a threshold early compressive strength of approximately 1 MPa (145 psi) for safe re-entry of miner and machine into shotcreted mine workings. This equates to the material having developed enough strength to be self-supporting and allow for emplacement of the remaining support elements that require drilling of the shotcrete layer without degradation. NIOSH researchers have developed methods and portable test equipment to measure shotcrete strength on-site in the first six hours after application using the ASTM C 116-90 (1990) standard. These advances were demonstrated in tests on five commercially available shotcrete mixes, sprayed as dry shotcrete using the field expedient methods and equipment. The strength values from these tests allowed for real-time identification of the early strength threshold and were consistent with strengths reported using laboratory-type equipment. The findings of this NIOSH research for determining shotcrete early strength can improve mine safety by providing a method for determining initial site specific material property values to be used for design and as a means to conduct on-site quality control and monitoring during production.

Jan 1, 2010