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Traditional finance theory recommends discounted cash flow (DCF) analysis as the tool to value mineral properties. Yet, the calculated values by this method are usually lower than the market value. Finance theory also advises us to develop an undeveloped project immediately if its net present value is positive. Most projects are, however, only developed when the economics are highly favorable. This paper uses insights from option-pricing theory to explain these divergences between market behavior and finance theory and presents simple modifications to discounted cash flow analyses that will lead them to produce correct valuation and development timing advice.

Jan 1, 1999

This paper addresses the valuation and development timing of an undeveloped mineral project. Traditional analysis has us developing the project immediately if its net present value (NPV) is positive. Option pricing theory finds that it is better to wait until the NPV of the property is significantly greater than zero before developing. Alternatively, when evaluating the development timing decision, we must calculate NPV using a higher "timing-adjusted" discount rate, and develop the property only if its NPV using this timing-adjusted discount rate is greater than zero. This paper uses option pricing ideas to convert this development timing advice into a more concrete and user-friendly decision rule: develop the project when its "development-timing NPV" is positive, this development-timing NPV being calculated using the normal discount rate.

Jan 1, 1997

By J. A. Cole

Santa Fe Pacific Gold's Lone Tree mine is located in Humboldt County, NV, 45 km (28 miles) east of Winnemucca. The mine currently operates a 1.74-Mt/a (1.92-million stpy) run-of-mine heap-leach operation and a 2.27-kt/d (2500 stpd) refractory gold¬ore-processing plant. Most of the mill-grade ore reserves are refractory, mainly due to pyrite and arsenopyrite encapsulation of the gold. The autoclave pressure-oxidation circuit was commissioned in February 1994 to process the refractory ore. Mineralogy unique to the Lone Tree deposit allowed for the design of a partial-oxidation process. It takes advantage of the heterogeneous nature of the pyrite morphology. Partial oxidation has resulted in an autoclave plant that is able to achieve low operating-unit costs (Figs. 1 and 2).

Jan 1, 1995

By C. A. Fleming, C. J. Ferron, P. T. O'Kane, D. B. Dreisinger

The platinum group metals (PGM's) are typically recovered by flotation, smelting of the flotation concentrate to matte, and matte leaching. Concentrates too low grade to be processed economically by the conventional process require a new treatment route. PLATSOL, a new pressure leach process, was developed for the Northmet deposit and dissolves in one step base and precious metals (PGM's and gold). Various options exist to recover all pay metals from the leach liquor. The preferred option to date involves a solid-liquid separation, followed by sulphide precipitation of gold and the PGM's, and copper solvent extraction using commercial solvent extractants. This paper briefly summarises the process and the effect of the main leach parameters. Application of the PLATSOL process to various feedstocks is also presented.

Jan 1, 2000

By J. W. Craven, M. Katom, K. M. McCaffery

At Ok Tedi, ore type and SAG feed size distribution vary widely and frequently. This makes control of the SAG mills by application of the power/pressure relationship difficult. Power logic has traditionally been conservative due to power spikes associated with rapid size-distribution changes. A new expert system was installed in early 2000. The system incorporates multiple state fuzzy logic to deal with frequent and radical ore type and size variations, along with monitoring of motor temperatures. A short-term power spike no longer warrants immediate radical action. This has resulted in increased mill throughput and improved circuit stability. Key words: SAG mills, Mill control, Fuzzy logic

Jan 1, 2003

By J. W. Craven, M. Katom, K. M. McCaffery

At Ok Tedi, ore type and SAG feed size distribution vary widely and frequently. This makes control of the SAG mills by application of the power/pressure relationship difficult. Power logic has traditionally been conservative due to power spikes associated with rapid size distribution changes. A new expert system was installed in early 2000. The system incorporates multiple state fuzzy logic to deal with frequent and radical ore type and size variations, along with monitoring of motor temperatures. A short term power spike no longer warrants immediate radical action. This has resulted in increased mill throughput and improved circuit stability.

Jan 1, 2001

By Weiran Zuo, Jinsheng Guo, Chun Yu, Jinyu Zhan, Bao Guo

High-precision prediction of the target minerals’ content in the feed and concentrate products is vitally important for the efficient beneficiation of mineral resources. Visible and near-infrared (NIR) spectroscopy provides a cost-effective way for online measurement of the mineral content in an industrial process. In this investigation, simulated specimens consisting of five different types of minerals that are present in the copper oxide ore, malachite, quartz, calcite, hematite, and chlorite were prepared with a variety of malachite contents, and the mixed specimens were analyzed by a visible-NIR spectrometer in an integral sphere mode. The reflectance spectrum is used as input and the malachite content as output to build the prediction model. The obtained data was modeled by support vector machines (SVM), and a Grey Wolf Optimization (GWO) is proposed with the goal of improving the prediction accuracy. The GWO algorithm has been applied to adaptively search for the best combination of featured values. After cyclic comparison, the optimal penalty factors c and g can be quickly and accurately selected. The experimental results show that the SVM model established by the GWO algorithm has a better fitting effect and smaller prediction error, compared with other models.

Aug 3, 2023

By T. S. Golosinski

Timely and efficient conversion from traditional to sustainable development of mineral resources requires that managers, engineers and other mineral industry professionals become familiar with the related techniques and methods. To fill this need the online Master of Engineering program has been developed at University of Missouri-Rolla. Designed primarily for mature students with an engineering or science background this program allows for specialization in several areas of sustainable development of earth resources. To accommodate mineral industry professionals working in remote locations all courses constituting the program can be taken online, without the need to attend the classes in person. The paper describes the program and discusses the experience gained during the first two years of program offering.

Jan 1, 2003

By Rajive Ganguli

There are several elements of online pedagogy and information technology that are being used in the University of Alaska Fairbanks’(UAF) course “ES 201: Computer Techniques,” to enhance classroom teaching. The use of information technology in this class grew from a desire to make lecture notes available to students. This has grown to include a sophisticated, online delivery software package. It provides chat rooms, discussion groups, and online testing and grading. Online delivery aside, the class uses the telnet, e-mail and C++/FOR-TRAN compiler facilities of the university server during class to enhance learning. During class, for example, the students read the lecture notes on the Web browser, telnet to their university Unix accounts, check their e-mail and download programs (to be covered in class) sent by me, and then compile, run and modify the programs. The class, therefore, requires students to be active most of the time. This ensures their full attention and better learning due to the hands-on experience (Fig. 1).

Jan 1, 2000

"From April 22 to 28, the eyes of the tunneling and underground construction world will be on San Francisco, CA, as the world’s most influential underground construction industry leaders gather at the Moscone Center for the 2016 World Tunnel Congress.Recognized as the most important international annual meeting for the industry, the 2016 version comes to the United States for the first time in 20 years and will be hosted by the Underground Construction Association of SME (UCA of SME). The conference will be held in lieu of the UCA’s biennial North American Tunneling Conference and will bring the strengths and resources of the UCA of SME and the International Tunnelling and Underground Space Association (ITA). The result will be a conference with unmatched technical programming and a showcase of more than 200 exhibiting companies.A program committee led by Randy Essex of Mott MacDonald, Lonnie Jacobs of Frontier Kemper Constructors, Michael Mooney, of the Colorado School of Mines, Priscilla Nelson, of the Colorado School of Mines and Amanda Elioff of Parsons Brinkerhoff formed the program committee and worked for more than two years to build the program. The result is four technical sessions with five tracks in each session and 185 oral presentations.“One challenge was the sheer size of the group that would be assembled, perhaps 2,500 attendees or more, and the large number of abstracts we were likely to receive,” said Essex. “ We investigated extending the conference a fourth day, but that was not workable with the Moscone Center. We settled on having five concurrent technical tracks – something that has not been attempted in past NAT or RETC conferences to my knowledge. The next step was to develop suggested session titles that would span the breadth of subjects that would interest conference attendees as well as serve the conference theme.”"

Apr 1, 2016

By Stephen M. Smading

Unique onsite assembly of a 12.43 m Main Beam TBM and back-up system was completed on September 18, 2008 in the remote mountains of the Sichuan province of China. The equipment was assembled onsite, without previously having been assembled and tested in a factory, utilizing a method called Onsite First Time Assembly (OFTA). The Jinping-II hydroelectric project features four parallel headrace tunnels approximately 18 km long, two of which will be excavated by TBMs and two by drill and blast. A nearby fifth tunnel is being excavated by a 7.2 m TBM to draw down ground water in advance of excavating the headrace tunnels. This paper addresses the following topics: ¦Project description including geology and terrain; ¦The decision process leading to onsite first time assembly, the assembly process and logistics, and lessons learned; ¦Design features of the TBM and back-up system; and ¦Operational history from startup to the writing of the paper.

By Stephen M. Smading

The Jinping-II hydroelectric project in China features four parallel headrace tunnels approximately 18-km- (11-mile-) long. Two will be excavated by tunnel boring machines (TBM) and two by drill-and-blast. A nearby fifth tunnel is being excavated by a 7.2-m (23.6-ft) TBM to draw down ground water in advance of excavating the headrace tunnels. Unique onsite assembly of a 12.43-m (40.7-ft) main beam TBM and backup system was completed on Sept. 18, 2008 in the remote mountains of the Sichuan province. The equipment was assembled onsite, without previously having been assembled and tested in a factory, using a method called onsite first time assembly (OFTA). This paper addresses the following topics: ? Project description including geology and terrain. ? The decision process leading to onsite, first time assembly, the assembly process and logistics, and lessons learned. ? Design features of the TBM and backup system. ? Operational history from startup to the writing of this article.

Jan 1, 2009

Mining is big business in Ontario. The province is Canada?s leading mining region. It consistently ranks among the top 10 jurisdictions worldwide for exploration spending, reaching about C$1 billion in 2011. More than 26 percent of all exploration and appraisal dollars spent in Canada are invested in Ontario. Minerals produced include nickel, copper, platinum group elements (PGE), cobalt, zinc, diamonds, gold and silver. It was reported that there are more than 600 mining exploration projects in the province. And, recent discoveries of chromite in northern Ontario?s Ring of Fire will add to the province?s mineral production in the coming years.

Jan 1, 2013

The Canadian mining industry is one of the strongest in the world. Not only does the country produce a sizable amount of minerals and metals, Canada plays host to hundreds of global mining companies, large and small. The country, for the most part, recognizes the importance of natural resource development, particularly mining, to its economic well being. Like any country, though, there are federal and provincial regulations on the books that the industry takes issue with. But there are also certain economic incentive programs in place to encourage exploration and mine investment. And, unlike the industry and the United States government, the Canadian government and mining industry appear to have a reasonable working relationship.

Jan 4, 2010

By D. W. Scott, D. G. Minnes

Introduction Ontario's diverse industrial mineral resource base includes structural minerals such as sand and gravel, crushed stone, building stone, clay, shale, limestone, and dolostone. These resources are used to produce aggregates, brick, metallurgical stone, fillers, cement, lime, and other construction materials. The majority of the operations are in deposits of Palezoic and Quaternary age in southern Ontario, close to the major markets. Province-wide, there were more than 140 Mt (154 million st) of aggregates produced in 1985. About 115 Mt (128 million st) of that was produced in southern Ontario with the rest being largely from Crown land in northern Ontario. Structural industrial minerals account for more than 80% of the value of total industrial mineral production. The remaining 20% is accounted for by the nonstructural minerals, such as salt, which is produced in the southwestern part of the province. A host of other nonstructural industrial minerals are known. Production, though, is currently restricted to calcite, gypsum, quartz, talc, nepheline syenite, and byproduct metallurgical sulfur products (Fig. 1). Major production is close to the large markets of urbanized southern Ontario and the northeastern and northcentral US. With an abundant variety of industrial mineral resources and the large population within 650 km (400 miles) of most deposits, the market offers great potential. Ontario's nine million people accounted for about 35% of Canada's entire $476.3 billion gross domestic product in 1985. This equates to about one-third of the nation's buying power being within a 200-km (125-mile) radius of Toronto. This major concentration of industrial and economic activity has resulted in a well-developed industrial minerals industry that fulfills most of the structural industrial minerals demand in Ontario. Nonstructural industrial minerals are similarly well placed to compete in this high demand area. Although Ontario manufacturers still import some of these materials, Ontario products are achieving significant market share. And, they serve the needs of neighboring provinces and states. Present production and trends Ontario has traditionally produced significant amounts of industrial minerals. This produc¬tion had a value of $956 million in 1984 (Table 1). Structural materials production in 1985 and 1986 approached or exceeded levels not seen since the early 1970s. Many new products have been developed using these raw materials. The industry is becoming concentrated in the hands of several large companies, mainly four large cement com-

Jan 12, 1987

By Graham A. Mathieson

A detailed breakdown of capital and operating costs is an essential element in the planning and evaluation of any mining project. The OPCOST System was developed by Golder Associates to provide mining engineers with the facility to synthesize detailed cost estimates for all aspects of an operating or potential open pit mine. The system can also be applied to underground mines equally as well. Such estimates can be prepared at a variety of levels depending on the detail required by the project. The OPCOST System is a suite of computer programs linked through a common hierarchical data base. It simulates the thought and reasoning processes within the quantity takeoff and cost estimation phases of a mining project. The system was developed as a mining cost engineering tool on the basis that it would have to satisfy a variety of purposes, namely:

Jan 1, 1982

By Unto Paakkinen

The testing of different kinds of process flow configurations and cell volumes in industrial scale flotation processes is in general difficult to accomplish and even expensive to perform.1 Also the lack of suitable measuring and analyzing devices often prevents effective comparison of results. Nowadays, the existing flotation processes contain, almost with exception, several return loads which result in difficult control of the process. There exist two good reasons for testing different kinds of flotation circuits at the Outokumpu Oy Kotalahti mine. Firstly it is easy to change the process flow configuration without any additional installation work and secondly, the concentrator is highly automated with magnetic flow meters, on-line analyzer and process computers. In this presentation, open circuit flotation is compared with the classical closed circuit flotation which contains return loads. In additional, the effectiveness of computer control in both cases is estimated and also the effect of cell volume on flotation results is examined.

Jan 1, 1977

By Keith Whitworth

The USSR, over the last 20 years, has continued to increase its out-put year by year and it is now almost four times what it was at the end of the Second World War. In 1975, it exceeded 700 million tons of run-oi-mine coal (all ranks) which amounts to over 20 percent of world output. This rapid progress has been due to modernization of the industry, by means of increased mechanization and automation and the development of new machines and systems for underground workings and by the expansion of open-pit workings and the development and implementation of larger earthmoving machines.

Jan 1, 1977

By Bryson D. Trexler

Slope stability in open pit mines is governed by rock structure, rock quality, ground water conditions, blasting, pit geometry and excavation method. Of these factors, the control of ground water pressures often represents the primary tool to improve slope stability. Production equipment has recently been used to stabilize two slide areas by dewatering using blasthole drills for vertical holes and secondary drills for horizontal holes. This paper describes both of these dewatering programs and contrasts an earlier slope stabilization program that employed a subcontracted horizontal drill.

Jan 1, 1983

By Frank H. Buchella

Principal factors influencing equipment selection can be grouped into five basic categories. Tonnage Requirements, Ore and Waste Loading, transporting, and ground preparation equipment are largely determined by tonnage requirements. Generally, the greater the tonnage requirements, the larger the equipment size selected. Large size equipment is appropriate for a production of about six million tons (total) per month, medium size for three mil- lion tons, and small size for one million tons or less.

Jan 1, 1973