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Production sharing and cost apportionment in joint ventures is commonplace in Australasia today and elsewhere. It is a recognised convention that, with the exception of a free carry situation, joint venture participants usually share the proceeds of the joint venture in direct proportion to their respective participating interest, after having first paid its respective cash calls, in advance, to cover the projectÆs ongoing operating and capital cost requirements.In surface mines, the parties simply pay their way and take their proceeds in this manner. In underground mines, the situation is no different, though treatment of capital, depreciation and tax may differ between the parties. A common feature in many cases is the creation of a joint venture entity to conduct the business. This entity then collects cash from the parties, banks it, employs the staff, runs the operation, provides reports and pays out the proceeds. This convention appears to be relatively simple in application. In practice, it has been known to be complicated in the situation where the participants take their product at the mine gate and undertake their own marketing and selling arrangements. A more complex situation presents itself where the joint venture tenement boundary with an unrelated third party straddles an economic deposit. In this scenario, both the joint venture parties and the third party may wish to mine the deposit, sharing some infrastructure and costs, yet taking their own product as it is produced. A case study outlining such a situation is presented in the paper, outlining firstly how the major cost categories were identified and treated for cost apportionment purposes. Secondly, a mechanism for the equitable apportionment of product is suggested. Finally, issues such as timing and cost reporting are dealt with, together with a checklist of points which should be considered when a similar situation might arise in the future.

Jan 1, 2002

By RALPH HAYES SWEETSER

ONE per cent. of ash in a ton of coal has been so little considered that in many circles it has been positively ignored. Even P. T. Barnum had never heard of it, or he would have had one on exhibition alongside the Cardiff Giant and the White Elephant. One per cent. of ash is closely related by both those freaks of Barnum in that it is "stone" and, in its aggregate, it is the greatest "White Elephant" that the American public now supports. Some of you may have paid Mr. Barnum for a look at the "petrified man" (named the Cardiff Giant by the gullible wise men of the early seventies); but it is certain that everyone of you is now paying for the support of the great White Elephant that is being constantly carried by our railroads all over the country-at the public's expense. " One per cent. of ash in a ton of coal" requires 120,000 open-top railroad cars each year to transport this use- less stone giant from its native bed in the coal seams of the bituminous regions to the coal bins of the consuming public.

Jan 1, 1924

By G A. Wellwood

What do all iron ore mines have in common? Perfect production days! Yes, those harmonious 24-hour periods when the stars align and the daily output number rockets past the long-term average to hit new heights. While perfect days are always welcome, the focusing question iswas that just a ‘flash in the pan’ (due to a special cause) or an indication of the process’s capability (with clues to the common causes) which, if addressed, could make every day perfect? In the context of today’s operating environment, with the need to maximise productivity at minimum cost, it’s an important question.Investigations reveal that the throughput difference between a perfect production day and the average is often in the order of 40 per cent, and that bulk solids handling (BSH) system deficiencies are the largest (>50 per cent) class of lost opportunity. Root causes for underperformance of elements in BSH systems can often be traced back to the detailed design and even study-stage oversights. Essentially baked into the fabricated plant, operations are effectively forced to accept them at the point of practical completion and then deal with the consequences for the life of the mine. Subsequent normalisation of these defects in the planning process reduces visibility and hence the impetus for long-term solutions in favour of lower targets and quick fixes to keep the show on the road. On an industry wide basis the design processes and assumptions responsible for BSH system underperformance become enshrined as common practice and hence repeated across sites and organisations.In addition to making the case for action, practical steps that can be taken to help realise the significant productivity prize and avoid the problems in first place are provided.CITATION:Wellwood, G A, 2017. One perfect (production) day – a bulk solids handling perspective, in Proceedings Iron Ore 2017, pp 443–452 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 24, 2017

By H. H. Stout

THE high copper price during the war stimulated the capacity to produce far beyond a possible normal consumption. The curves in Fig. 1 show this. The line YZ indicates, what the world production and consumption of primary copper nor-mally would have been, had not the 3 war upset the rhythm of industry. Granting that the maximum world production of 3,150,000,000 lb. in 1917 was obtained by crowding both the equipment and the grade of ore mined, yet in many instances addi-tional capital was invested, upon which the producer will be driven to earn at least a reasonable interest. During the period of deflation, or C liquidation, which we have entered, the consumption of copper will nat-urally be below the normal. Fig. 1 shows the actual consumption ex-pressed-in per cent. of normal : 1919, 96 per cent.; 1920, 94 per cent.; 1921, 70 per cent. The copper industry, consequently, faces: (1) Potential over-production capacity; I (2) Diminished consumption. To deny the existence of these factors would be illogical. To minimize the menace of this potential producing capacity might lead to regret. All past attempts at artificial control have not proved very successful. Obviously the remedy is to increase, if possible, the consumption of copper to a point where these factors cease to be dangerous. In ultimate analysis, this means: Produce an article so cheap and so good that no one can afford to use substitutes. The problem can be solved by: (1) Re-ducing price; (2) Improving product offered.

Jan 11, 1922

By Marwick PL

As part of its operations Hamersley Iron operates a heavy medium Concentrator to upgrade low grade, unsaleable iron ore to produce saleable lump and fines products. Firstly, the attempts at delivering a blended feed in both chemical and physical characteristics are presented. Improvements in blending controls are shown to have given process performance improvements. Secondly, improvements to the feed preparation section are detailed. These alterations are providing a much cleaner feed to the subsequent processing stages.

Jan 1, 1987

By Roland W. Rammler

With oil consumption increasing more rapidly than known reserves in industrial countries, there has been a growing interest in the production of synthetic crude oil. The main starting materials for such production are coal, oil shale and tar sand, all of which occur in enormous quantities in North America. A process sequence suitable for all three of these starting materials incorporates a preliminary retorting step to produce oils for subsequent hydrotreating. For this retorting step, a technique known as the Lurgi-Ruhrgas process has proven highly efficient. The process has been commercially used for the flash carbonization of coal and has also been tested in pilot- plant experiments with oil shale and tar sand.

Jan 1, 1970

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 S. J. CRAIGHEAD

IN 1912 the United States Smelting Refining and Mining Company made a large investment in a number of coal properties in Utah and in 1915 a subsidiary, the United States Fuel Co., was organized to take over these properties. Operations started in 1916 and the Company soon became, and remains, one of the major coal producers of the State. It now produces approximately one million tons of coal annually, which is about 22 per cent of Utah's output. The U. S. Fuel Co. owns large reserves of good coal and is in a position to expand operations with the industrial growth now taking place in the West. Traveling through the Western States, one is struck by numerous advertising signs portraying the picture of jovial Old King Cole of nursery rhyme fame. His rotund figure and beaming countenance are the symbols of Utah King Coal, the product of the King mine of U. S. Fuel Co. King Coal is a by-word of quality coal throughout all the Western States.

Jan 1, 1948

By Mining Geophysics

Modern geostatistics has eliminated much of the guess-work in ore reserve estimation, and can calculate levels of confidence for the reserve estimate. Geological modelling software has brought about a revolution in the communication of complex geo-variables to mining engineers, metallurgists, surveyors and managers. Mine planning and scheduling can now avail itself of a veritable toolbox of enabling technologies.

Jan 1, 1994

By Matthew Runion, Christopher Lawler

The Aeolus – Jim Bridger Transmission Line Project is located in southern Wyoming, home to some of the largest coal seams in the world. Coal seams present unique challenges to underground construction, as they are at high risk of coal-seam fires and do not provide a reliable bearing stratum. Accurate identification of these hazards was essential for reliable design and successful construction of foundations on this project; however, environmental restrictions and other protections created short time frames to access several sites. Coupled with a firm construction deadline, this meant that a comprehensive geotechnical investigation prior to construction would not be possible. This paper presents the project as a case study, and details how an Engineer-Procure-Construct (EPC) contracting format supported by a comprehensive Quality Assurance (QA) program provided a solution to the defined challenges. It describes the initial design process using incomplete geotechnical data and explains how the developed QA program verified design assumptions and reduced geotechnical risk through early identification of geologic conditions during construction. Specific examples will be given, and industry implications will be discussed.

By Larry M. Southwick

The smelting of copper and other non-ferrous metals have made considerable advances over the last 125 years. Many of the ideas and processes currently in use were attempted early in the history of smelting and were unsuccessful. Often the cause was incomplete understanding of the metallurgy involved, inadequate refractories, poor materials of equipment fabrication or trying too many new ideas at once. With time, these problems get solved and the technologies become commercialized .These were processes whose time had not come when originally proposed, but did eventually. On the other hand, there have been some concepts whose time will never come. They were impossible then and they are impossible now. The people that dream these up were either crackpots (they didn't know what they were doing, but thought they did), or charlatans (they knew they didn't know what they were doing, but didn't care). Both rely on bad science to propose metallurgical absurdities. These too have their place in the development of technology, though mostly negative, and several examples will be discussed in this paper. Three from around the turn of the century will be covered, as well as one from this decade. The last demonstrates that the art of creating absurdities has not withered, even after ninety years of scientific sophistication, and some can even be patented. The first three reached field trials due to the gullibility of company management. The last arose from a fortuitous mis-operation of a plant which solved a problem, but the explanation and patent which arose are metallurgically impossible.

Jan 1, 1999

By George Smith

THE discussion of production control at the Insti-tute's annual meeting was profitable in that it started some thinking. One pertinent question there raised was how the opening of new mines, whose now unneeded output would inevitably react on prices, could be postponed until the market was ready to ab-sorb their output. In transportation some restraint is being exercised on building new and unneeded fa-cilities, but in production no general solution of the problem has been offered. Yet in a special field of new development of increasing importance a quick and easy solution has been suggested. I refer to the leasing of mineral deposits on the public domain. The report of the United States Coal Commission says: "In its possession of approximately 60,000,000 acres of public coal lands the Federal Government has its own responsibility in restraining overdevelopment. The Department of the Interior, which has control of these lands under the leasing law, construes the law as giving the department no discretionary right to refuse applications for leases regularly made by qualified citizens or corporations for coal deposits on the pub-lic domain. It presumes, that the applicant believes there is a need for an additional coal mine in his local-ity and expects to find a market for the coal produced. Overdevelopment, however, is a fact in the West as well as in the East, and wherever present involves needless investment and excessive costs of operation. Plainly, the leasing law should be so amended as to give the executive department full discretion in its approval of the opening of a new coal mine on the, public domain, making that approval contingent on the showing that the new mine would serve the in-terest of the consuming public." A similar view of the Federal Government's re-sponsibility in restraining overdevelopment of its oil lands has been presented by the Federal Oil Conser-vation Board. The leasing law vests little or no dis-cretion in the Secretary of the Interior, who must grant a lease to a qualified applicant regardless of any obvious country-wide condition of surplus produc-tion. This wide-open invitation to exploit and dissi-pate the people's own oil resources could be restricted by simple legislation, although as remarked by the board, such a legislative remedy for a plain economic ailment "does not evoke popular support when its purpose is avowedly to put the brakes on development of natural resources."

Jan 5, 1928

By Funsho K. Ojebuoboh

With several “green” applications on the horizon, bismuth has become an even more important minor metal in the smelting and refining of lead. Smelters with a complex sulphide feed invariably deal with bismuth. Its behavior during the smelting of lead in conventional sinter-blast furnace operation is discussed. Because it readily deports to the lead phase during the refining of lead, its separation from refined lead remained unsatisfactory in early lead production. When commercial requirements of bismuth in lead became more stringent early this century, the procedure where by calcium and magnesium is used todebismuthise lead was developed. The present conduct of this 1936 process, the Kroll-Betterton process, is discussed with emphasis on operational improvements.

Jan 1, 1996

NOT all the lead in the country comes from the big operations. A member sends in this photograph of the wash-up from the "Old Timers Lead Mine," at Galena, Ill. He omitted to inclose a flow-sheet of the concentration process, which detracts somewhat from its value to the technical man, and cost figures are lacking. Perhaps he was run off the lease when his questions on milling recoveries became too searching. Still and all, according to the picture the plant ap-pears to be operating efficiently. It is reasonable to believe that the cost of electric power per ton milled is held to a low figure. We commend the proper pro-fessional stance of the gentleman on the business end of the hand jig, though we look in vain for the time honored spring board to aid him in giving the most efficient stroke.

Jan 12, 1927

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 V. Vallyathan, Xianglin Shi, N. S. Dalai

While Cr(VI) is a known carcinogen, the underlying biochemical mechanism is still not fully understood (1). In a pioneering study Jennette (2) utilized electron spin resonance (ESR) spectroscopy to demonstrate that a long-lived Cr(V) species is generated during the reduction of Cr(VI) by microsomes in the presence of NADPH. Later Wetterhahn and co-workers (3, 4) showed that incubation of chromate with isolated rat liver mitochondria causes the reduction of Cr(VI), as well as the formation of a Cr(V) species. Analogous Cr(V) species have also been detected in the reduction of Cr(VI) by other cellular systems such as Hanserulla polymorphared (5) and blood cells (6, 7). All these as well as other studies (8-12) have suggested that this Cr(V) species plays a significant role in the mechanism of Cr(VI) toxicity. Thus far, however, the chemical structure of this dominant Cr(V) species formed in cellular systems has not been identified, and this observation provided an impetus for the present investigation. Another reason for undertaking this study was that some recent reports (10-16) suggest that hydroxyl ('OH) radicals may also play an important role in the mechanism of Cr(VI) toxicity. In particular, it has been shown that OH radicals are formed in reactions between Cr(V) species and H2O2 (13-16), and that the radical yield depends on the chemical structure of the Cr(V) species (15). For example, while Cr(V)-diol complexes efficiently generate OH radicals, another Cr(V) species, the tetraperoxochromate (CrO3/8) ion, does not (15). Thus in the present study, we focused our attention on the following: (a) structural identification of the Cr(V) species generated in the reduction of Cr(VI) by subcellular as well as cellular systems, using microsomes, mitochondria, and Escherichia coli; (b) possible detection of OH radical in the same systems since there is no earlier report of chromium-mediated generation of 'OH radicals in a cellular system; (c) possible involvement of molecular oxygen in chromium-related OH radical generation since a recent report (17) indicated that Cr(VI) mutagenesis is strongly oxygen dependent; and (d) elucidation of the mechanism of OH radical formation in these systems.

Mar 1, 1992

By N. S. Dalal, X. Shi

"Electron spin resonance (ESR) measurements provide evidence for the formation of Cr(V) intermediates in the enzymatic reduction of Cr(VI) by glutathione reductase (GSSG-R) in the presence of NADPH, indicating an initial single-electron transfer step in the reduction mechanism. Depending on the pH, at least two different Cr(V) species are generated which are relatively long-lived. In addition, we have detected the hydroxyl (·OH) radical formation during the GSSG-R catalyzed reduction of Cr(VI) by spin trapping, employing 5,5-dimethyl-1-pyrroline-N-oxide (DMPO) and a-(4-pyridyl-1-oxide)-N-tert-butylnitrone (4-POBN) as spin traps. Superoxide dismutase (SOD) causes only a minor effect on the ·OH radical and Cr(V) formation, indicating that the ~ - is not significantly involved in the reaction mechanism. Catalase enhances the Cr(V) formation and substantially inhibits the ·OH radical formation, indicating the involvement of hydrogen peroxide (H20 2) in the reaction mechanism. Addition of H20i suppresses Cr(V) and enhances the ·OH radical fonnation. Measurements involving N-ethylmaleimide show that the Cr(V) species, produced enzymatically by the reduction of Cr(VI) by GSSG-R, react with H2O2 to generate ·OH radicals, which might participate in the initiation of Cr(VI) carcinogenicity.INTRODUCTIONC(VI) compounds have been found to exert serious toxic and carcinogenic effects on humans and animals [1-4) and to cause mutations in bacteria and transformation of mammalian cells [5-8). In contrast, most Cr(lll) compounds are relatively nontoxic, noncarcinogenic, and nonmutagenic [9, 10]. Cr(VI) and Cr(lll) oxidation states are different in their metabolic pathways: Cr(VI) ions are rapidly transported across cellular membranes [2, 11-13), while Cr(lll) moieties do not easily penetrate cells and are not oxidized by cellular constituents [3]. Since it is known that the reduction of Cr(Vl) is required for its reaction with DNA [2], the molecular mechanisms for the intracellular Cr(VI) reduction have been the focus of studies during the past decade but the details are still not understood."

Jan 1, 1990

By N. S. Dalal, X. Shi

It has been known for more than a decade that vanadium (V) stimulates the oxidation of NADH by plasma membranes (1) but the underlying mechanism is still not fully understood. This effect has been attributed to a membrane-associated NADH-dependent vanadium (V) oxidoreductase (1). Subsequent studies suggest that vanadium ( V) can accept an electron from fiavoprotein dehydrogenase that oxidizes NADH (2). The phenomenon ofNAD(P)H oxidation coupled to vanadium(V) reduction has also been demonstrated in other biological systems (3-6). A recent electron spin resonance (ESR) study from our laboratory reported on the accumulation of vanadium (IV) duringthe reduction ofvanadate (vanadium(V)) by the ftavoenzymes glutathione reductase (GSSG-R),4 lipoyl dehydrogenase, and ferredoxin-NADP+ oxidoreductase in the presence of NAD(P)H (7). It was concluded therein (7) that these ftavoenzymes function as NAD(P)H-dependent vanadium(V) reductases. More recently, however, Liochev and Fridovich (8) have argued that the ESR data (7) do not demonstrate that the investigated fiavoenzymes act as vanadate reductases. They suggest an alternative mechanism in which the fiavoenzyme simply serves as a generator ofsuperoxide (02) radical, which acts as a propagator of the radical chain reaction leading to NAD(P)H oxidation (9, 10), as summarized below:

Nov 1, 1995

By Felix G. Berra, David H. Orr

The first large scale application of radio remote control equipment to standard gage railroad trains has been achieved at the Morenci mine of Phelps Dodge Corp. at Morenci, Ariz. Twenty or more ore and waste haulage trains are remote control operated at any one time, each with a one-man crew. Reduction of train crews from two men to one man has materially lowered the total cost of train operation. Elimination of brakemen has also resulted in an improvement in train efficiency brought about by a shortening of train haulage cycle times.

Jan 4, 1965