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By T. R. Ellis

Minerals Appraisers/Valuers often find great difficulty or failure in attempting to employ the Sales Comparison Approach to the Market Value Appraisal of development and operating stage mineral properties. An important factor generally overlooked is a comparison of net operating income (NOI) margins on a per-unit-of-production basis between mineral properties, whether these be demonstrated or forecast margins. NOI margins can vary greatly between mines or quarries that are producing similar products. Ultimately, the expected NOI margin determines what a buyer is willing to pay for an income producing property. Common criticisms of the sales comparison approach by minerals appraisers are introduced. These are counterbalanced by raising some issues in the way the inputs for the Income Approach are usually derived by minerals appraisers, and by review of some conspicuous examples of the much too common misuse or abuse of the income approach in market value minerals appraisals. Example transaction analyses and sales comparison analyses are used to demonstrate the author?s methodology for adjusting units of resource in his transaction adjustment tables (see APPENDIX). The examples are used as the basis for discussion of ways to employ adjustments for operating economics and many other factors, while cautioning about the potential for double counting. The conclusions include a recommendation that minerals appraisers attempt to apply at least two of the three valuation approaches when appraising the market or fair value of development and operating stage mineral properties, the two being the sales comparison and income approaches.

Jan 1, 2011

The more than 40,000 mining industry professionals that are expected to attend the National Mining Association’s(NMA) MINExpo International2000 trade show and conference will be treated to the exhibition’s largest display ever. The exhibit is expected to cover more than 60,385 m2(650,000 sq ft) and feature more than 1,300 exhibitors. The event is set for Oct. 9-12, 2000 at the Las Vegas Convention Center in Las Vegas, NV. Richard L. Lawson, NMA’s president and chief executive officer, said, “MINExpo 2000 will showcase everything that mining is proudest of. This is the largest premier mining exposition in the world.” MINExpo is held every four years.

Jan 1, 2000

By Derek J. Penrice

A critical element of the Transbay Transit Center Program, the Caltrain Downtown Extension (DTX) will extend commuter rail service into downtown San Francisco and accommodate future statewide high-speed rail service. The DTX project includes 1.8 miles of underground construction, comprising significant sections of mined and cut-and-cover tunnel. At the request of stakeholders, an updated cost estimate was prepared early in the project?s preliminary engineering phase. Unsurprisingly, this yielded a cost substantially higher than the available budget. This paper provides a summary of the management processes and planning decisions taken to bring the project back to budget, resulting in a configuration which derives maximum value from available funding and retains maximum flexibility for future system expansion.

Jan 1, 2008

By D. M. Lane, J. M. Berkoe

Engineers and Owners share a common desire to build reliable, efficient plants on schedule at reasonable costs. This paper describes one tool that Bechtel finds can integrate these objectives by “putting innovation into practice”. Examples of such innovative engineering practice include the use of computational fluid dynamics (CFD) to determine efficient designs. This paper outlines several examples of CFD applications on actual Mining and Metals Projects from around the world. The focus here is to highlight the modeling objectives, analysis strategy, actual benefit obtained from the work, lessons learned to improve future efforts and the common mistakes that can obscure the correct or best results, despite impressive graphics. The tools are powerful, and the results are more powerful when applied with skilled and well-directed human effort and ingenuity.

Jan 1, 2000

By O. A. Bascur

The lack of integration of mining and metallurgical information with sufficient detail for analysis causes inefficient operation and hence sub-optimal energy and water use. It is difficult to analyze the performance of mining and metallurgical processes without an integrated view of mine transactions, stockpile inventories, process flows and assays. To take action requires real time information from manufacturing assets, corrected for gross errors from trucks, shovels, conveyors, faulty sensors, bad instrument calibration. This paper presents an infrastructure with advanced tools that sift through available data, identify and eliminate gross errors, and transform the data into business information for continuous improvement and optimization. Collaboration is a key component of improving efficiency of energy and water use, and the evolution of Web technology enables collaboration and troubleshooting of plant information to more quickly act on issues to reduce wasteful operation. Keywords: Mine Concentrator Optimization, Real Time Performance Management, Data Unification, Integration of Operational and Business systems, Mass and Energy Balances, Real Time Web Services, Equipment Availability, Efficiency.

Jan 1, 2009

By Steve Kral

More than 124,000 people involved in the mining and construction industries throughout the world poured into Las Vegas, NV in March for ConExpo-Con/Agg ’99. Show organizers said this triennial exhibition is the largest equipment show in the Western Hemisphere and one of the largest exhibition of any industry. “Clearly, Con-Expo-Con/Agg ’99 was one of the largest trade shows of any industry ever held in the Western Hemisphere,” said Bruno Benna, co-chair of the event. Attendees included mining industry representatives, including aggregates, and sand and gravel producers. In addition, many of the attendees work in the construction, reclamation, forestry, asphalt paving, landscaping and concrete industries. According to show records, about 52% of those attending were company presidents, vice presidents, chief financial officers or managers.

Jan 1, 1999

By A. Moergeli

The Swiss are building the world’s longest tunnel, the 57-Kilometer (35-mile) long Gotthard Base Tunnel. Lot 252, Tunnel Amsteg: Two Hard Rock Tunnel Boring Machines (TBM) crossed hydro-thermally decomposed granite. While the East TBM advanced slowly but steadily, the West one got stuck for five months and had to be recovered by special means and methods. Both TBMs have finished their more than 11-Kilometer (7 miles) long drives successfully. Lot 360, Tunnel Sedrun: For the first time in tunneling, roadway support machines are used through most challenging, squeezing geology. They constantly advance in full face mode for about one Tunnelmeter/24 hours.

Jan 1, 2007

By Wayne Trudel, Eric Saderhold, Lloyd McEvers, Lori Clarke, Charles Lynn Bolin, Leroy Schutz

Editor’s note: This is the second part of a two-part series on how mine geologists added about 141t (4.53 million oz) at Newmont Mining’s gold operations in Nevada during 2003. Part one (ME, July2004, pp. 19-26) showed how cross-functional teamwork among mine geologists, engineers, metallurgists and operators added $65 million in revenues at Newmont’s Gold Quarry Mine. Part two deals with how this same cross-functional team added about 25.8 t (830,000 oz) of gold reserves and two years of life at the company’s LoneTree Mine. This was done through improved reconciliation methods, pit optimization designs and updated geotechnical parameters. Part two also discusses how Newmont’s Nevada mine personnel added about 62.2 t (2 million oz) of gold reserves at its Twin Creeks Mine, extending the mine’s life by several years. The Lone Tree Mine is a sediment-hosted, micron gold deposit. It is dominantly situated in the Golconda thrust footwall. The north-south trending Wayne Zone fault controls the highest-grade ores and

Jan 1, 2004

By D. Kozelj

Introduction The porphyry copper deposit “Borska Reka” is the biggest undeveloped deposit in the Timok Magmatic Complex (TMC). Total reserve calculated manually is 611 Mt (cut-off grade 0.3% Cu) of 0.62% Cu, 0.21 g/t Au and 1.81 g/t Ag and 869 Mt of 0.58% Cu, 0.14 g/t Au and 1.11 g/t Ag using software. But since several deep drill holes are suspended in high grade (0.7% Cu) porphyry, total reserves could exceed 1Gt. The massive sulfide is also detected in the central (12 m at 4% Cu) and the bottom of porphyry style. Deposit was discovered during geologic exploration of deeper part of the Bor copper and gold deposit, i.e. area of high sulfidation with dominant massive sulfides. During exploitation of massive sulfide, constant explorations were carried out aimed at the expansion of reserve and discovery of new ore bodies. In that way, porphyry copper mineralization was discovered without knowing in the beginning that it was different mineralization type in regard to the ones that had been already identified and exploited. Vertical extension of porphyry is 0 m up to -1000 m sea level and not contoured along plunge. In the very beginning (1976), the exploration was focused on the shallow part of porphyry. That is because block caving method of massive underground mining was not developed at that time. Up to 1999, most of activity was related to underground exploration up to level -395 m. Geographic position The Bor deposit is located close to the industrial and University town Bor, which has over 50,000 inhabitants (census made in the year 2002). Apart from the Bor Mines, industrial complex of Mining & Smelting Basin Bor (RTB) comprises also a copper smelter (installed capacity up to 160,000 tons of blister copper) and tank house, copper wire factory, copper tube factory etc. Currently, RTB Bor is under privatization process that is going to be completed by the end of 2006. Up to date, over 20 companies have bought tender documentation.

Jan 1, 2007

By Bernhard Leist, William D. Leech, Johann Kröyer, Holger Evers

Landsvirkjun—the national electric power company of Iceland—is building the Kárahnjúkar Hydroelectric Project in eastern Iceland. Two glacial river systems will be dammed and channeled through a series of tunnels into a 690 MW underground powerhouse. The Project has a total of 73 km of tunnels to be excavated of which mosthave been completed. From three access adits, three large diameter (7.2 m to 7.6 m),main-beam, gripper-type, Tunnel Boring Machines (TBMs) are being used to complete50-km of the waterway tunnel. Using the TBMs was a first in Iceland to excavate the complex Icelandic basalt formations, which consist of inclined layers of hard basaltic flows with weaker scoriaceous and sedimentary interbeds. Faults, fissures and dykes that frequently cross the lava flows posed both geologic and hydrogeologic difficulties to the TBM tunneling. This paper describes the extreme challenges that the men and equipment had to endure to complete the tunneling, including the harsh winter weather on the surface and the cold, abundant ground water inflows within the tunnels.

Jan 1, 2007

By T. W. Peglas, J. Doherty, R. A. Day

The South East Transit Project is a $520 million project in Brisbane, Australia which includes the construction of a 32 km Busway to access the south-eastern suburbs. Close to the centre of Brisbane, tunneling techniques have been used to minimise surface disruption. This paper describes some of the features of the longest driven tunnel on the project, the Vulture Street Tunnel. The Busway is a two lane expressway for buses which requires a 10.2 m finished width and a 12.6 m excavated span of driven tunnel. The Vulture Street Tunnel carries the Busway at minimal cover beneath the operating Vulture Street Railway Station, beneath a three storey office building and beneath the roadway to the Mater Hill Busway station. Halfway along the route, a Y-junction has been constructed to enable future connection with a light rail route. Key features in the design and construction of the Vulture Street Tunnel include: Use of canopy tubes to drive a 12 m wide tunnel beneath operating railway tracks with less than two metres of cover in highly weathered rock. Underpinning the office building in the route of the tunnel construction from within the building carpark. Construction of a 24 m span Y-junction with 7 metres cover of weathered and faulted rock. Use of predictive analysis as an adjunct to traditional back analysis to estimate the tunnel settlements from pressuremeter test results. This paper describes the design methodology with particular reference to settlement prediction, as well as construction innovations used to complete the tunnel. This paper will be of interest to all designers who have to create large spans in minimal cover in weak rock in urban areas and who have to predict the settlement

Jan 1, 2001

A glance at the following chart reveals that because of the continued poor economy, the slump in industrial mineral production continued into 1980. Gypsum was down 17% from 1979; cement down 9%, sand and gravel, 17%, and crushed stone, 11%. All these downward trends reflect the high interest rates and high costs that slowed construction starts. Domestic fluorspar was down 21% and imports off 14% due to the steel iudustry slump. However, potash production was up 8% and phosphate, 5%. Increased drilling activity spurred au increase in barite production of 25%. Most other industrial minerals posted losses with only a few insignificant increases. As expected, prices were higher, reflecting increases due to high costs for labor, supplies, and above all, energy. Increasing energy and transportation costs also had their effect on industrial mineral production. Railroad freight rates increased 16-22% including fuel surcharge; truck rates increased 11-14%a; and ocean freight rates increased 20% for finished goods. The 1979 shortage of boa and hopper cars did not continue into 1980-most likely due to low production of many of the hulk industrial mineral commodities. All in all, 1980 was not a good Year for industrial minerals.

Jan 5, 1981

By M. Superfesky, P. Michael

Introduction The US Office of Surface Mining (OSM) is proposing changes to the Code of Federal Regulations in the interest of minimizing the adverse effects of excess-spoil-fill construction on the “prevailing hydrologic balance, fish, wildlife and other environmental values” (70 FR 35112). The proposed changes will require: (1) minimization the amount of excess spoil generated at a mine site; (2) minimization of the size of the fills constructed; (3) consideration of alternative configurations for disposal; and (4) development of a disposal plan that would minimize adverse impacts to the environment.1 To achieve those objectives, mining companies operating in steep-sloped Appalachia will likely build excess spoil fills (also called valley fills) that toe out at higher elevations in the hollows (i.e. to prevent or limit burial of streams). Consequently, the slopes of fill foundations will generally be steeper. Whereas the authors of this paper support these measures to protect the hydrologic balance and general environment, we wish to point out that placement of fills on steeper foundations can negatively impact the stability of the fills if proper care is not taken during their construction. It is important to note that in addition to impairing human safety, valley fill instability can negatively impact streams, the riparian habitat etc., and thus defeat the very purpose of the spoil minimization measures proposed. We do not, however, propose additional regulatory requirements pertaining to valley fill stability. Rather, we intend to emphasize the importance of engineering requirements already on the books, especially as they apply to the predominant type of valley fill constructed: the durable rock fill. We believe that the practice of restricting valley fills, to higher elevations in the watershed leaves less room for error in the design and construction of stable structures. This paper gives a quick review of the nature of excess spoil generation; methods and requirements of excess spoil fill construction, and the to-date stability record of the fills. The interest in excess spoil minimization and how it affects valley fill construction is also discussed. Most importantly, we will review long-standing issues pertaining to proper design and construction measures with respect to durable rock fills and discuss how they will become more critical as spoil minimization is practiced.

Jan 1, 2007

By William R. Yernberg

The 2003 Rapid Excavation and Tunneling Conference (RETC) was held at the New Orleans Marriott, New Orleans, LA, June 15-18. The New Orleans conference was the 16th since the RETC was formed in 1971. This year’s conference was sponsored by the Society for Mining, Metallurgy, and Exploration, Inc.(SME), with co-sponsorship of the Construction Institute of ASCE. Attendance at the meeting was 1,178, a conference record. This was up significantly from the771 attendees at the 2001 meeting in San Diego, CA. The RETC was formed to “advance the engineering and scientific knowledge of rapid underground excavation and tunneling through interdisciplinary meetings, publications, technical-educational exhibitions and encouragement of research.” The RETC conferences are now held every other year. They provide an opportunity for individuals to meet with designers, contractors and manufacturers associated with the tunneling industry to share experiences in all phases of tunnel design and construction.

Jan 1, 2003

By M. Kuchta, A. Newman

LKAB’s Kiruna Mine, located in northern Sweden, produces about 24 Mton of iron ore yearly using sublevel caving. For efficiency, the mine must deliver planned quantities of three ore products. We use mixed integer programming to schedule Kiruna’s operations, specifically, which production blocks should be mined, and when they should be mined to minimize deviations from planned production quantities while adhering to mining restrictions (e.g., sequencing). A new production block database and a well-formulated mixed integer programming model dramatically reduce the size of the original problem; in less than ten minutes we generate five-year schedules with time fidelity of months.

Jan 1, 2002

Paper 1: Risk of gastrointestinal cancers from inhalation and ingestion of asbestos, John F. Gamble Selikoff suggested the hypothesis that asbestos exposure is causally associated with increased risk of gastrointestinal (GI) cancers in an early study of insulation workers. In this paper, John Gamble reports on his extensive review and reanalysis studies that address the relationship between asbestos exposure and GI cancers. The purpose of the review was to evaluate the association between asbestos exposure and risks of stomach, colorectal, colon, and rectal cancers separately. Gamble evaluated exposure?response (E?R) relationships using surrogate exposure methods ??because few individual studies of GI cancer have reported exposure? response analyses.?? The principal asbestos exposure surrogates are: (1) the rate ratio (RR) for lung cancer; and (2) the percent of mesothelioma among exposed workers. Analyzing SMRs for GI cancers from individual studies versus the risk of lung cancer and mesothelioma provides crude estimates of E?Rs for asbestos exposure and GI cancer. Briefly, Gamble justifies the surrogate approach as follows:

Jan 1, 2007

By P. Rosten

US mine production of iron ore in 1984 showed some improvements compared to 1983. But reduced demand from the iron and steel industry caused temporary shutdowns of many iron ore mines and pelletizing plants. US raw steel production in 1984 was slightly above 1983, but still at a depressed level. Production was 83 Mt (92 million st), compared with 77 Mt (85 million st) in 1983 and 68 Mt (75 million st) in 1982. Two major production trends continued in 1984. They were the increased production from electric furnaces and the growing use of continuous casters. Electric furnace production included 33.2% of the steel poured in 1984, compared with 31.5% in 1983. Continuous casting was used for 39% of 1984 steel production, compared with 32.1% in 1983. Statistical Process Control Statistical Process Control (SPC) has taken on new proportions in the iron ore and steelmaking industries within the last year. This mathematical technique is used to monitor, control, evaluate, and analyze a manufacturing process. The technique charts variability of important quality parameters. Training and adaptation of SPC techniaues for process control have been initiated at Inland, Steel's Minorca, Pickands-Mather's Hibtac, Cleveland-Cliff's Empire and Sherman operations, and at Reserve Mining. One of these operations has requested its bentonite supplier provide SPC charts on quality specifications. Some of the steelmaking operations (Inland Steel, Bethlehem Steel, Dofasco, LTV Steel, National Steel, Stelco, Weirton Steel, and Wheeling-Pittsburgh) have set up SPC programs within their operations. And they also have insisted that some of their suppliers use SPC. Plant Shutdowns The permanent closure of Stelco's Griffith mine at Red Lake, Ontario, has been delayed by one year. This gives employees more time to adjust. The mine is now set to close in April 1986, instead of April 1985. Sidbec (Canadian government) and its other partners (including British Steel Corp., Quebec Cartier Mining, and US Steel) closed its iron mining operations at Gagnon, Quebec. The pellet plant has been leased to Quebec Cartier. New Iron Ore Operations The massive Carajas iron ore project in Brazil is scheduled to come onstream in Jan. 1986. It is to achieve full-scale commercial shipments by July of that year. The 66% iron crude ore requires only crushing and screening before shipment. The product consists of 83% sinter feed and 17% coarse ore. Annual production capacity will be 32 Mt (35 million st) when the project is completed. Principal customer for the ore is Nippon Carajas Iron Ore Co., a consortium of Japanese steel mills. The Arab Iron & Steel Co. (AISCO) has started up a $US300 million, 3.6 Mt/a (4 million stpy) iron ore pelletizing plant built by Kobe Steel Ltd., at Al Hidd-hide in Bahrain. By 1986, this grate-kiln-cooler plant will supply high quality iron ore pellets to feed direct reduction plants in the immediate Gulf area and Far East markets. Iron ore supplied from Brazil, Peru, India, and Mauritania provides the feed to the pellet plant. Hydrated lime (2%) is used as a burden.

Jan 5, 1985

By F. L. Pirkle

A heavy-mineral deposit about 1.6 kilometers (I mile) in length and averaging about three meters (10 feet) in thickness is exposed approximately130 kilometers (80 miles) east of Denver, along Interstate 70, in Elbert County, Colorado near the town of Limon. The deposit is exposed in a geomorphic feature known locally as Titanium Ridge. The dominant heavy minerals, accounting for about 70% of the total heavy mineral suite by weight, are ilmenite, garnet, and zircon. The mineralized zone appears in a series of visually interpretable facies that are stacked vertically and represent subtidal, forebeach, backbeach, washover fan, and aeolian depositional environments. These paleoenvironments are analogous to depositional environments represented by a modern heavy-mineral bearing facies tract on St. Catherines Island, Georgia. Thus, Titanium Ridge provides evidence that heavy-mineral accumulation models for late Cenozoic deposits in the Georgia and Florida coastal plains are applicable to heavy-mineral deposits of the Western Interior subsurface and, by implication, the Western Interior Seaway, extending from Mexico to the Canadian Arctic.

Jan 1, 2011

By J. D. Morgan

Demand for nonfuel minerals depends on the overall state of the economy, which steadily improved each quarter in 1984. New housing starts rose to 1.8 million units. Automakers turned out about 15% more cars (7.8 million) and 30% more trucks (3.1 million) than in 1983. Nevertheless, many domestic mineral operations experienced difficulties in 1984. This resulted from import competition greater use of newer engineered materials, emphasis on multi-unit housing and downsizing of motor vehicles. About 15% of our energy was imported. This in cluded $36 billion worth of crude oil and $22 billion in refined products This added significantly to the overall merchandise trade deficit of $12; billion. On the bright side for mining, coal production rose 14% to 810 Mt (890 mil lion st). Three-fourths o: the coal was burned to generate electricity and more than half of our electricity was derived from coal-burning plants. With the exception of a few large-bulk, low-value raw minerals, most minerals move relatively freely in world trade. The strong dollar encouraged imports and made exporting more difficult. Consequently, our nonfuel minerals trade deficit rose 60% to $19 billion, reflecting imports of $39 billion and exports of $20 billion. There were increased pressures from some major segments of the minerals industry for some form of import protection. But President Reagan said, "Our goal is a system of free and fair trade in goods, services, and capital. We will work toward this goal through both bilateral and multilateral trading agreements." The US minerals industry consists of domestic mines, concentrators, smelters, refineries, mineral manufacturing plants, and recyclers. It also includes many wholly- or partially-owned operations in many parts of the world, providing employment and income for US citizens and others as well. Compared with 1983, the value of US raw nonfuel mineral output rose 8%, to $23 billion. The $253 billion worth of goods processed from this crude mineral output was a 14% increase. Major Metals Raw steel production - a major indicator of both material use and mineral production-rose 10%, to 84 Mt (93 million st). This stimulated a 36% rise in domestic iron ore production, to 52 Mt (57 million st), about 98% pelletized. Iron ore imports rose 44%, to 14 Mt (15 million st). Despite the increase of steel production, output remained well below levels of just a few years ago. For example, 1984 production was still 23% less than in 1981. Raw steelmaking capacity remained steady at 122 Mt (135 million st). The industry continued to cite steel imports as a major reason for low domestic capacity. In December, pacts with seven leading steel exporting nations were announced. This is an effort to reduce import penetration to about 18.5% of the domestic market. Domestic producers of bulk ferroalloys of chromium, manganese, and silicon operated at about 50% capacity. The US mined no manganese or chromium. Only a small quantity of ferronickel was produced from domestic laterite mining in Oregon. Molybdenum production, at 45 kt (49,500 st), rose threefold. Mine shipments of tungsten, another mineral tied to steel

Jan 5, 1985

By F. Dieu, C. Laughton

CERN, the European Laboratory for Particle Physics, is, at present, constructing an underground tunnel and cavern network to house a Large Electron Positron (LEP) colliding beam machine. This paper describes the techniques adopted to permit the excavation and temporary support of the access shafts through a series of glacial moraines, at depths of up to 80 m, to reach the bed-rock. Owing to the presence of superficial and deep water-tables, the variable nature of the moraine deposits and, above all, the tight work schedule, a combination of diaphragm walling and ground freezing was employed.

Jan 1, 1987