Search Documents

By Ron Light, Doug Applett

"HistoryThe Nanisivik mine began operation in October 1976 as the world's most northerly metal mine and the first permanent industrial project in the Canadian High Arctic. Located 700 km north of the Arctic Circle on Baffin Island's Strathcona Sound, exploration by Texasgulf Inc. between 1957 and 1970 had outlined the ore deposit. In 1974, Nanisivik Mines Ltd. was formed with Mineral Resources International, the Government of Canada, Metallgesellschaft and Billiton being shareholders, and Strathcona Mineral Services Ltd. providing project management. In 1996, Breakwater Resources purchased the mine from Alberta Energy Corporation Limited which had recently acquired the assets of then owners Conwest Exploration Ltd.Ore DepositThe main ore deposit is very flat, approximately 80 m in width and varying in thickness from 3 m to 16 m. The length of the deposit is approximately 3000 m with satellite zones located on the perimeter of the main zone. The economic mineralization is sphalerite with minor galena and silver. The sphalerite and galena are coarse grained and associated with pyrite as the main gangue component with minor inclusions pf dolomite and calcite within the deposit. The deposit being hosted in a permafi·ost environment creates a number of challenges. Dry drilling is employed in room and pillar production drilling. The permafrost aids in the stability of both the pillars and the back."

Jan 1, 2000

By C. Anderson, H. Huang, P. Miranda, E. Dahlgren, I. Chandra, M. Jeffrey

The latter part of the 20th century saw great advances in the treatment of refractory gold ores coupled with increased reliance on the use of cyanide for gold processing. Now, in many parts of the world, there is social pressure to limit or eliminate the use of cyanide. As well, treatment of some refractory ores or concentrates which have excessive cyanide consumption, gold cyanide pregrobbing or significant sulfide content remain difficult. This paper will outline the history of the development of alkaline sulfide leaching as an ancillary process to nitrogen species catalyzed (NSC) pressure leaching. Electrochemical fundamentals and the applicable thermodynamics of the alkaline sulfide hydrometallurgical system will be outlined. As well, examples of refractory gold recovery with alkaline sulfide hydrometallurgy such as an arsenopyrite gold concentrate application, a chalcopyrite gold concentrate application, a pregrobbing gold ore application, and a cyanide consuming gold ore application will be delineated in this paper.

Jan 1, 2005

By H. G. Rushton, A. S. Romaniuk

"The opening chapter of this volume, by A. Ignatieff, places in perspective Canada's coal resource base as part of the world scene. This chapter will focus on the Canadian scene.Units of measurement in this report are in the International System of Units (SI) as approved for official use by the Canadian Standards Association and Metric Commission Canada. These units have been adopted by the Mining Association of Canada and the Coal Association of Canada. To assist with the shift to metric units these two associations have published ""Metric Practice Guide for the Canadian Mining and Metallurgical Industries"", 1978(1J, Appendix ""A"" lists some useful conversion factors along with SI prefixes. The last official assessment of Canada's coal resources and reserves was done by the Department of Energy, Mines and Resources and presented in Report ER 79-9 ""Coal Resources and Reserves of Canada"", published in December 1979 and authored by H.U. Bielenstein, L.P. Chrismas, B.A. Latour and T.E. Tibbetts(2). The Geological Survey of Canada has a continuing project concerned with coal resource assessment as does CANMET, whose concern is with coal reserve assessment and coal quality. As well, Alberta's Energy Resources Conservation Board (ERCB) has a continuing assessment program for coal in Alberta and publishes an annual reserves report, the current issue of which is cited as reference No. (3). The difference in resource and reserve terminology as used by EMR and ERCB has a major effect on derived tonnages for Alberta. This difference will be discussed later. In 1982 the Department of Energy, Mines and Resources produced a map titled ""Canada-Coal""<4J which outlines coalfields and illustrates coal import and export movements for the years 1981and1980. A copy of this map is contained in the map pocket of this publication. Two other resource assessment reports are noteworthy, the first is ""Coal Resources of Southern Saskatchewan: A Model for Evaluation Methodology"", by J.A. Irvine, S.H. Whitaker and P.L. Broughton<SJ which is one of the major outputs of a joint federal-government study of southern Saskatchewan's lignite deposits. (Another output from this same study' is the Geological Survey of Canada's SASCO file, a computer processable file holding borehole and coal quality data.) The second is ""Deep Coal Resources of the Interior Plains, Estimated from Petroleum Borehole Data"", by G.D. Williams and M.C. Murphy(6) which identifies coal resources from nearly 4,000 petroleum exploration boreholes distributed uniformly over an area spanning Manitoba, Saskatchewan, Alberta and British Columbia."

Jan 1, 1985

By A. B. Morrow

Consulting engineers are well aware of large variations in plant operating cultures between countries, companies, and even within sites and operating crews. These operating cultures must be considered when designing Advanced Process Control (APC) applications in order to maximize utilization rates and return on investment. Designs must be driven by an understanding of the totality of unit operations. Economic factors, equipment constraints, management philosophy, maintenance department responsiveness, instrumentation reliability, operating crew skills and teamwork, and individual operator concerns are all important and must be considered during application design. A general approach to incorporating operating culture considerations into APC application design is described. A case study for an iron ore concentrator plant is presented.

Jan 1, 2014

By Fathi Habashi

A new era in pressure hydrometallurgy is marked when the roasting - leaching - electrowinning process in the zinc industry was replaced by direct pressure leaching of zinc concentrate. Since then, the technology has received recognition as the technology of the future. Large autoclaves of unprecedented size have been manufactured and installed in a number of metallurgical plants for recovering copper and nickel from their concentrates or liberating gold from its refractory ores. An attempt to recover alumina from clay using pressure technology is underway. Autoclaves lined with acid resisting bricks or with titanium clad may weigh as much as 800 tonnes were transported successfully from the manufacturing workshop to the mine site over long distances.

Jan 1, 2014

By C. Piribauer, E. Feichtenhofer, A. McEneaney

"As part of a major diversification project, RHI AG, through its plant in Drogheda Ireland, has developed a Caustic Calcined Magnesium Oxide (CCM) for use in the Cobalt (Co) & Nickel (Ni) hydrometallurgical extraction industry. In the course of the project, the company investigated the chemical and physical properties of a number of different Magnesia’s used in Co & Ni hydrometallurgy applications and has been able to determine the important parameters for a successful Magnesia for this application. A number of live plant trials have confirmed the results of this testwork and the company is now proceeding to produce this product in commercial quantities at Premier Periclase Ltd., the RHI AG plant in Drogheda, Ireland. This paper will outline the development work conducted by the company and highlight the important chemical and physical properties that make a successful CCM. Much of the research was conducted at the RHI Technology Centre in Leoben, Austria. In addition, a number of external laboratory studies were conducted on behalf of RHI AG. The result of this work has allowed the company to develop a Magnesia product with optimised properties for use in the Cobalt and Nickel hydrometallurgical extraction process.INTRODUCTION Premier Periclase is part of RHI AG, a globally operating supplier of refractory products, systems and services, headquartered in Vienna, Austria. The company produces Magnesia from seawater at its plant in Drogheda, Ireland. While the main focus is on production of refractory grade Dead Burned Magnesia for the steel industry, the plant also produces a number of different grades of Caustic Calcined Magnesia as well as Magnesium Hydroxide products. As part of a major project to diversify the company’s product base, the use of CCM in the Cobalt (Co) & Nickel (Ni) hydrometallurgical extraction industry was investigated. One of the company’s highly reactive grades of Caustic Calcined Magnesia was found to be particularly suitable for this application. In an effort to understand what makes a successful Magnesia for hydrometallurgy the chemical and physical properties of different Magnesia’s used in Co & Ni hydrometallurgy were investigated. This paper and conference presentation outlines the findings of this process."

Jan 1, 2017

By T. Marolt, J. Likar, E. Grøv, J. Žarn

"Underground structures are an integral part of the infrastructure of modern society and are used for a wide range of applications, including subways and railways, highways, not at least nuclear facilities. When the wider area is subject to earthquake activity, underground constructions should be analyzed on seismic and static loading. Observations showed that the underground structures have significantly less seismic risk than surface structures. Available methods allowed analyzing the magnitude of risk for different input parameters of seismic loads in different ground environment. Simulation of earthquake loading on underground structures, in the present paper is given the various aspects of analyzing the potential damage and instability of underground facilities. INTRODUCTIONThe development of methods and computing resources used for para-seismic engineering has finetuned the evaluation of the seismic strength of buildings and equipment. Reinforcements may therefore be decided, not simply on the basis of a reassessment of the hazard, which constitutes input data for the calculation of structures and equipment, but also on the basis of developments in para-seismic engineering. Underground facilities are an integral part of the infrastructure of modern society and are used for a wide range of applications, including subways and railways, highways, material storage, and sewage and water transport and not at least nuclear facilities. Although in the past showed that the underground structures are significantly less seismic risk than on the surface, the professional researches and their results are accessible. Seismic resistance of underground structures is analyzed from several aspects. The currently available methods allowed analyzing the magnitude of risk for different input parameters of seismic loads in different ground environment. For better interpretation of earthquake loading on underground structures, are given below the various aspects of analyzing the potential damage and instability of underground facilities in rock. One of the early studies which covered this are of investigation were prepared by Dowding and Rozen (1978). They grouped damages due to earthquakes in underground structures into three main categories:- damage from ground shaking- damage from fault dislocation- damage by earthquake-induced ground failures (e.g. liquefaction and landslides)."

Jan 1, 2015

By John A. C. Fortescue

There is a need for better communication between scientists who plan and carry out mineral exploration research in glacial terrain and the exploration geologists who look for mines. In this paper, four ways in which workshops could be used to close this communication gap are described and discussed in relation to the solution of this problem in Canada.

Jan 1, 1973

By Chris Dougherty

"This presentation will provide a demonstration of the methodology used in designing a modern shaft and hoisting plant utilizing a review of the challenges faced and solutions delivered for the Elk Creek Superalloy Materials Project (Niobium/Scandium). The development of the design required the review of complex hydrogeological conditions, mine production requirements, demanding capital expenditure (CAPEX) limitations and tight schedules. Through an extensive review of various alternatives to satisfy these constraints, the Nordmin Group (including Nordmin Engineering Ltd.) (Nordmin) was able to define a concept and design that addressed risks to the project, met production requirements, cost and schedule constraints and improved constructability. INTRODUCTION The Elk Creek Project, owned by NioCorp Developments Ltd. (NioCorp) presently, will become Nebraska’s first underground metals mine, built to access the Elk Creek Niobium/Scandium deposit. The development of the design for this facility required the review of challenging hydrogeological conditions, mine production requirements, demanding CAPEX limitations and tight schedules. Through an extensive review of various alternatives to satisfy these constraints, the Nordmin Group was able to define a concept and design that addressed risks to the project, met production requirements, cost and schedule constraints and improved constructability. This paper will review the challenges faced, and solutions arrived at in a demonstration of a methodology used in designing a modern shaft and hoisting plant. THE CHALLENGES Nordmin became involved in the project in 2015, invited by the Feasibility Study Consultant to provide input on estimating and layouts for the new operation. Many of the fundamental decisions regarding mining methodology, water handling and production strategy had been made, and the scope of Nordmin’s involvement was very limited in this first engagement. Following submission of that study in late 2017/early 2018, Nordmin had opportunity to discuss the overall effort, and its many assumptions and challenges, with NioCorp’s project team. The dialogue quickly identified several significant opportunities to improve the project construction schedule and costs along with the mine production profile and operational approach while reducing project risk."

Jan 1, 2019

By A. Idegami, M. Imamura, S. Heguri, Y. Ozaki

"Nickel powder can be produced by the reduction of a nickel ammine complex solution by hydrogen at high temperature and pressure. To minimize the deposition of fine nickel on the surface of the reactor and other equipment, seed crystals are added to the initial solution to promote nucleation of the nickel powder. Such seed crystals catalyze the precipitation of the nickel particles on the surface of the seed and enhance grain growth. In this study, nickel nuclei were precipitated by the addition of a polymer to the nickel ammine complex solution, resulting in the production of nickel powder. Thus, we herein propose a model that explains the effect of the polymer in the precipitation of nickel nuclei.INTRODUCTIONNickel powder is commonly produced via a hydrometallurgical process from the hydrogen reduction of a solution containing a nickel ammine complex at high temperatures and pressures, and this process was commercialized in the 1950s by Sherritt Gordon (Sherritt International, Canada, Benson & Colvin,1973; The Staff, Research and Development Division, Sherritt Gordon Mines, Ltd., 1958).In the above transformation, upon the injection of hydrogen gas into the solution, nickel is reduced as outlined in Equation(1), ultimately resulting in the production of nickel powder.Ni(NH3)nSO4+ H2?Ni+ (NH4)2SO4+ (n-2)NH3(n:2–6)(1)In this process, seed crystals are added to the reactor to suppress the precipitation of fine nickel (scaling) and to enhance nickel reduction (Benson & Colvin, 1973; Mackiw, Lin & Kunda, 1957). More specifically, iron sulfate and a small amount of dispersant polymer are added, which leads to the formation of nuclei. Upon subsequent hydrogen reduction, the reduced nickel can then be deposited on the nuclei, allowing nickel particle growth to take place. However, this results in iron contamination in the final nickel product, and so the use of pure nickel as a seed crystal is desirable to produce high quality nickel powders."

Jan 1, 2017

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 R. Vracar, D. Sinadinovic, Ž. Kamberovic

The paper presents a study on the oxidation of polymetallic gold ore by oxygen in an autoclave. It presents optimum parameters of autoclave leaching of sulphide refractory ore in self-generated sulphuric acid solutions aiming to get products with favourable technological characteristics from which precious and other useful metals can be recovered. A high partial oxygen pressure (1.5 MPa to 2 MPa), high leaching temperature (190°C to 200°C), pulp density 80 g/L to 240 g/L, ore fraction size 76 µm and leaching time up to 4 hours yield good results in rich ores. The full extent of copper and zinc conversion as well as a high extent of iron conversion has been achieved, while lead, gold and silver and a minor part of iron remain as a solid residue among gangue minerals.

Jan 1, 2001

By Gurinder Kaur

Selenium (Se) based materials find wide applications in rectifiers, solar cells, photographic exposure meters, data storage devices, xerography and anticancer agents. They are also used in the glass industry to eliminate bubbles and remove undesirable tints produced by iron. In addition, Se is highly reactive towards a wealth of chemicals that can be potentially exploited to convert Se into other functional materials such as CdSe, ZnSe, Ag2Se. Here, we report a review of structural investigations of Se based materials in glassy and nanostructured forms. Glasses having varying amounts of Se and Tellurium (Te) were doped with group IV and V elements such as antimony and tin. Structural changes accompanying the composition variation were characterized with x-ray photoelectron spectroscopy, differential scanning calorimetry and x-ray absorption near edge spectroscopy. At the same time Se-Te nanoalloys were synthesized in aqueous micellar phase using Na2SeO3/Na2TeO3 as the Se/Te source. Morphology change from nanoparticles to nanoribbons was investigated using Scanning and Transmission Electron Microscopy (SEM/TEM) techniques. Structural investigations were also done for well defined morphologies of Se based nano-biomaterials obtained in the presence of water soluble protein bovine serum albumin (BSA).

Aug 1, 2013

By C. Graham

Thin Spray-On Liners (TSLs) have been researched and in development for over two decades and yet their fully functional and widely justifiable application in mining has yet to be achieved. While the explanation for this is partly technical, it is also clear that proving and communicating the operational and economic case for why a mine should change from mesh or shotcrete liners to a TSL is not a trivial matter. Evidence must be presented and communicated effectively, that is both obvious and compelling for a mine operator. The paper describes recent work carried out and directed towards this end, with funding from CAMIRO?s Deep Mining Research Consortium and additional support from 3M Canada and ABB Canada. The essential progress that has been, or is in the process of being made, will be described in providing the necessary proof of acceptable or superior TSL performance in the following areas: polymer formulation, health and safety, geotechnical specification, robotic liner application, business case economics and yielding ground support effectiveness. Future plans are also presented to demonstrate the performance of a new 3M composite TSL/yielding bolt support system in underground trials where the substrate rock is intended to fail through a number of mining-induced mechanisms.

Aug 1, 2013

By G. V. Theja, V. B. Maji

Large infrastructure projects like tunnel excavations, underground constructions face innumerable risks. For successful completion of these projects, it is essential that we foresee and understand risks that could occur during different phases of the project. One of the risks affecting underground excavation projects is the inaccurate performance prediction of TBMs. As this could severely affect the project, resulting in lower advance rates and could also result in changing the excavation machine or method, due to difficulties in excavation, thereby increasing the overall cost of tunnelling. This makes performance prediction of the TBMs as one of the crucial aspects in tunnelling, as a precise estimation of its performance is required for planning and estimation of time and cost of the tunnelling projects. This performance prediction of TBM is a challenging geotechnical problem that is intricate and complex in nature, this is possibly due to the fact that TBM performance prediction involves understanding the rock fragmentation process in wide range from micro-scale (i.e. the interaction of surface of rock material and cutter tip) to macro-scale (including the interaction of rock mass and TBM). Thus in order for the performance prediction model to be efficient, parameters of both TBM specifications and ground conditions have to be considered. Various models have been proposed by researchers since the early phases of TBM application, these studies resulted in the development and improvement of numerous penetration prediction models. Most of these models consider the geotechnical parameters that are input to the model to be consistent along the TBM drive and neglect the uncertainties in parameters that occur. And so to improve the predictive capability of these models and to incorporate the above uncertainties, the penetration rate is modeled as a stochastic variable depending on the geotechnical and TBM parameters, its statistical distribution is determined and is used to characterize the penetration rate instead.

Jan 1, 2015

By Derek Apela, Coralee Heske, Bunyamin Kahraman, Muhammad Adi

Effective blast fragmentation is essential in underground mining, as it directly influences downstream processing efficiency and operational expenses. This study investigates the application of Non-Newtonian Fluids (NNF) as stemming materials, presenting a novel method to enhance energy confinement, minimize environmental impact, and optimize blast performance. NNFs exhibit shear-thickening behaviour, enabling them to transition between fluid-like and solid-like states under stress, which renders them suitable for regulating explosive gas ejection during blasting. Field trials were performed by Vale Base Metals in Thompson, Manitoba, in their underground nickel mine to evaluate conventional slag stemming against NNF-based stemming in production-scale blasts. Emulsion explosives were employed, and blast performance was assessed through velocity of detonation (VOD) measurements, vibration monitoring, and AI-assisted fragmentation analysis using WipFrag. Preliminary results indicate that NNF stemming improves fragmentation, resulting in a reduction of D50 by as much as 38%, enhances energy confinement, and may decrease the incidence of hole plugging and re-drilling in subsequent blasts. This study presents an alternative to conventional stemming methods, highlighting potential advantages for enhanced safety, efficiency, and sustainability in blasting operations. Additional research and field trials are necessary to improve implementation protocols and facilitate the widespread adoption of this unique method in the mining sector.

May 4, 2025

By G. Eaton

Safety management is an important mortal and business function in construction. Contractors have traditionally tracked and reported lagging indicators, e.g. fatalities and lost-time accident rates, to measure their safety performance and stay in compliance with relevant regulations. Over the last several decades, contractors became more proactive in their approach to safety and developed programs that track leading indicators, e.g. safety audits and safety climate. In particular, safety climate measures workers? perception of safety management and its effectiveness in the workplace. Past literatures indicated that, while some industrial construction contractors ignore safety climate measures, others are limited by a lack of a formal means to measure safety climate. In this study, a survey approach is used to measure an industrial construction contractor?s safety climate through three key areas: management commitment, job control, and general safety climate. As a pilot study, a total of 214 individuals at a fabrication facility participated in the survey to verify the validity and effectiveness of the proposed survey approach. This survey study also confirms that job control and management commitment have a positive correlation and that worker demographics have an effect on respondents? perceptions of management commitment.

Aug 1, 2013

By Donald E. Wakefeld

"The pace at which mining will occur in Northern regions and Arctic lands will depend on the answers to a number of questions. Who are the local aboriginal participants? What land uses are they pursuing? What are their objectives? What is their understanding of the process of mining development? This paper will focus on the last question, communicating the process of mineral development to local aboriginal communities.IntroductionIn the environmental impact hearings for the BHP-DiaMet diamond mine, the smaller Dene Treaty 8 Nation argued for the settlement of its Land Claims as a pre-condition to development. However, the larger Dene Treaty 11 Nation were prepared to permit the mine to proceed on the basis that their people would receive benefits during the construction and operation of the mine.Wherever mining is the significant basis for tax revenues and economic development expectations may be encouraged beyond the realities of the situation. Izok Lake has been known for several decades as a significant mineral deposit but because of its size and the transportation costs involved, it is now a “frozen” ore body. The extent of its mineralization at current metal prices will not support the mining and processing costs without substantial government support for infrastructure and roads. At the opposite side of Canada, Voisey’s Bay clearly satisfies all technical criteria but, nonetheless, two Inuit groups, the Innu, and Métis, have all made LandClaims relating to the mine area.Contrasting the mineral deposits at Voisey’s Bay and Izok Lake emphasizes that the timing of production is dependent on factors such as the grade and amount of reserves, their market price, location and availability of government support. Nonetheless, it is this author’s thesis that given an economic orebody the next most important factor is good communications. It is his view that Arctic mineral development will occur quickly only where good communication has resulted in the trust and mutual respect necessary to implement the mammoth cultural changes required."

Jan 1, 1996

By Atsushi Sainoki

Blast vibration induced by mining activities, such as stope production blasts, could lead to the initiation of seismic events that inflict damage to mine openings. In this paper, the effect of stope production blasts on nearby fault is examined. First, validation of blast vibration attenuation is performed with a numerical model representing a single blast hole through comparison with that calculated from charge-weight scaling law derived from in-situ data. Subsequently, a mine-wide scale model with a fault parallel to a steeply dipping, tabular ore deposit that is mined out with sublevel stoping method is generated, and the stopes are extracted and backfilled with static analysis to simulate burst-prone conditions on the fault. Based on the stress states, dynamic analysis is performed, in which blast vibration is applied to grid points on a stope wall on the hanging wall side. This assumes 9 blast holes located close to the wall, and blast-induced particle velocities that consider the positional relationships between the assumed blast holes and the stope wall are applied. During the dynamic analysis, blast sequence is considered, and stress states and shear displacement on the faults are examined. It is found from results that, after a rise in normal stress on the fault due to compressive waves induced by the blasts, the normal stress decreases because of the reflection of the compressive waves on the fault. The reduction in the normal stress due to the reflected waves is found to be large enough to cause the fault to slip. The results also show that the level of normal stress eventually keeps decreasing with time as the blast sequence proceeds and that an increase in shear displacement on the fault is accompanied by a decrease in normal stress. This study clarifies the mechanism by which blast vibration causes the fault to slip. In addition, the simulation technique to apply blast vibration that takes into account blast sequence and the locations of blast holes to a stope wall is developed.

Aug 1, 2013

By J. R. Porter, C. Panaou

"A significant effort is expended on preparation of the capital estimate for feasibility studies. The development of the operating cost estimate is usually allocated a significantly smaller budget and less emphasis is placed on ensuring the accuracy of the operating cost. This paper presents a comparison of capital and operating costs of hydrometallurgy processing plants in order to demonstrate the importance that variations in operating costs have on the overall life-of-mine costs. The analysis is supported by a case study on the operating costs of a water treatment plant at an existing Australian hydrometallurgy facility at the feasibility design level. INTRODUCTIONDetermination of the economic validity of a minerals processing project is a critical outcome of a feasibility study. In many cases, the financial results of the feasibility study will determine if the project should proceed to execution. Ensuring that these results are reliable and built upon sound engineering practices allows companies to make informed decisions on resource opportunities and the selected technology.The methodology for developing a capital cost estimate at the feasibility level is well established. Specialist engineering estimators use budget quotations, first principle estimation and rules-of-thumb to develop an estimate with an accuracy of typically -10% to +15%. Cost reporting software packages are used to methodically build up the estimate from design information supplied by the engineering disciplines. Risk analysis and capital expense workshops are carried out to identify potential deficiencies in the estimate. It is widely recognized that in order to successfully produce a feasibility level capital estimate with an appropriate level of accuracy, a rigorous development process is necessary.The development of the operating cost estimate is typically less rigorous than the capital cost estimate. The operating cost is normally derived by the process engineering discipline and rarely are specialist estimators used to support the development. The allocated budget for producing an operating cost is usually smaller and less emphasis is placed on ensuring the accuracy and contingency reflect the most likely operating cost scenario."

Jan 1, 2012