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By Dan Nilsson

INTRODUCTION A company must have an objective, and that usually is to earn money. In some countries an objective can also be to reduce unemployment in an area or to develop nonindustrialized areas. Government-owned companies can also have as an objective that of serving the com¬munity. This discussion is limited to the consideration of normal companies wanting to earn money. Such an objective, however, has to be defined in more detail. It is not satisfactory only to maximize the total annual profit from, for example, a mining project. In comparison with most other branches, the mining in¬dustry is very capital intensive. When starting a new project, the mining company must invest a lot of money in mines, ore treatment plants, etc. It is normally many years before any income is received from the ore. Fig. 14 illustrates the payments for a new mining proj¬ect with an expected lifetime of 10 years. Whether this project is a profitable one depends on a lot of things. If the company has a shortage of money, it can be impossible to finance the project. Even if the company has enough money, the management may think that perhaps the project may not return the money fast enough. Such limitations will not be discussed here. Suppose that the company has internal funds from its own operation or can borrow them. Since the mining company must invest the money in advance, it is not satisfactory only to add all of the costs during the mine's lifetime and compare them with the total income during the lifetime. The company must include the time value of the capital. In this appendix, the basic investment theory neces¬sary to judge the profitability and costs of mining proj¬ects will be discussed. INVESTMENT THEORY Time Value of Money If a private person has a dollar and puts it into a bank, he or she will receive interest. If the interest rate is r%, the value after one year will be $(1 + r), after 2 years $(I + r)2 , etc. The interest rate represents the time value of money. If the same person wants to have $1 in the bank af¬ter one year, he or she has to put $(1 + r)-1 in the bank today. If the person wants $1 after 2 years, it is neces¬sary to put $(1 + r)-2 into the bank today, etc. So one dollar today is worth more than one dollar tomorrow. It is, of course, not correct to compare money at differ¬ent times since each dollar has a different value. It is necessary to transform all payments to the same point in time. That is called the calculation of the capital value of a cash flow, and to do this an interest rate is used. In the same way, the cash flow from a project like that shown in Fig. 14 can be translated to any other point in time. Most common is to translate all payments to the beginning of the mining period. That capital value is often called the present capital value. Interest Rate What interest rate will the company use? A com¬pany, just like an individual, has the basic alternatives of keeping its money in the bank and receiving interest, or borrowing money from a bank and paying an interest rate. The interest rate represents the time value of money for the company. If the company has a shortage of money, or many good potential investment projects, it has to use a higher interest rate than if it has a lot of money available. Most companies also increase their interest rate as a hedge against the risk involved by using money for uncertain investments, because of taxes, etc. Capital Value When the interest rate has been decided, it is possi¬ble to estimate the capital value of a project. Here the discussion will be limited to the estimation of present capital values. Suppose that one wants to know the present capital value of $1 (Fig. 15), which will be received after n years. To transform it n years back in time, one must multiply it by the factor (1 + r)-, where r is the inter¬est rate the company uses. Table 1 gives these factors for different years and interest rates. Example: At the end of year 5 a mining company has to invest $50 million in a new mine. What is the present capital value at the end of year 0? The company uses an interest rate of 15%a.

Jan 1, 1982

By Richmond Bennett

Airborne geochemistry became a reality with the advent of a high-sensitivity airborne gamma ray spectrometer with large volume NaI (TI) crystal detectors. Small variations in the concentration of potassium (as K40), thorium (as T1208) and uranium (as B1214) along the flight lines can be determined by measuring the gamma radiation with a sensitive airborne spectrometer. Small volume crystal spectrometers are useful only for detection of major surface uranium (Bi214) variations, but the large crystal volume system is an airborne geochemical exploration method capable of locating hydrothermal mineral deposits. Radioactivity as a guide to ore has been discussed in the literature by Damon (1950), Gross (1952) and others. The theoretical basis is that potassium, thorium, and uranium are concentrated in late stage solutions during magmatic crystallization. Thorium and uranium are concentrated in late stage liquids because their large atomic radius and high ionic charge prevent them from entering into the crystal lattice of common rock-forming minerals (Rankama and Sahama, 1950). Potassium, which has a large ionic radius and small charge, also can be concentrated in the high water content late stage fluids (Heier and Adams, 1964). A large proportion of uranium and thorium in rocks occurs around grain boundaries of the essential rock-forming minerals (Hurley, 1950). Uranium and thorium substitute for zirconium in zircon, a comparatively early forming mineral. However, most of the thorium and uranium is concentrated in residuals where they can be fractionated and incorporated into allanite, monazite, xenotime, and other minerals.

Jan 1, 1970

By Yousef Ghorbani, Abolfazl Danesh, Fatemeh Kazemi, Ataallah Bahrami, Morteza Abdollahi, Mohammad Raouf Hosseini

This study aims to investigate the effects of the operational variables on the concentrate grade, recovery, separation efficiency and kinetic parameters of the copper flotation process. The results indicate that concentrate collecting time and pulp density were the parameters with the greatest effects on the concentrate grade. Considering copper recovery, the concentrate collecting time, collector dosage and pulp density were the most significant variables, in decreasing order of importance. The separation efficiency was found to be mainly influenced by the concentrate collecting time. This study can be helpful in identifying the parameters with the most effects on flotation performance and, consequently, the overall process efficiency, including recovery and separation efficiency. Such an outcome can be used as a decision-based tool to apply the necessary changes in a real-life industrial operation in a more effective way to improve the quality and quantity of the flotation concentration.

By Michael McNinch, LaTasha R. Swanson, Jennica L. Bellanca, Justin Helton

As manufacturers and mine operators develop and implement proximity detection systems (PDSs), they need to be mindful of the systems’ compatibility with mineworkers’ tasks, and possible unintended consequences. Researchers at the U.S. National Institute for Occupational Safety and Health (NIOSH) interviewed mineworkers at mine sites that currently use or previously have used PDSs on mobile equipment, including shuttle cars, battery haulers and scoops. Mineworkers reported that mobile PDSs affect loading, tramming, section setup, maintenance and general work on the section. Mineworkers discussed the operational effects and increased burden, exposure and risk. Mineworkers also suggested that improved system task compatibility, training, logistics and PDS performance might help address these issues. Manufacturers and mine operators implementing this or similar technologies may also consider mitigating task incompatibilities up front, performing additional site-specific usability testing and restricting the use cases of the system to improve performance.

By Sharon Thomson

Since 1977, Amax Coal Co.'s Belle Ayr mine near Gillette, WY, has been the largest producing coal mine in the US. In its 10 years of operation more than 90 Mt (100 million st) of coal have been shipped from the mine's facilities to electric generating plants across the country. It is thought to be the largest amount ever produced in US history from a single coal mine. The railroad is Belle Ayr's lifeline for moving this massive volume from a relatively isolated corner of northeastern Wyoming. There are no waterways for barge traffic, and highway truck hauling would be impractical considering the quantity and distance of coal to be moved. Transportation in the Powder River Basin-at least for the present-is strictly unit trains. An average of four unit trains daily load at Belle Ayr. These trains average 108 cars long, with a capacity of 91 t (100 st) per car. Burlington Northern Railroad serves the Powder River Basin, but locomotives supplied by Union Pacific, Milwaukee Road, and Kansas City Southern are a common site as well, since coal will often travel these lines too on its way to utility plants in Colorado, Kansas, Iowa, Texas, Arkansas, Louisiana, Wisconsin, and Oregon. When Belle Ayr opened transportation in the Powder River Basin was in an early development stage. As the first large-scale coal shipper in the area, Belle Ayr was the only user of a 27-km (17-mile) railroad spur south of Gillette. Other mines, however, were to open soon on the abundant, low-sulfur reserves. Today, less than a decade after Belle Ayr's debut, 13 large-capacity mines operate near Gillette. The 27-km (17-mile) spur that once served only Belle Ayr has been extended 177 km (110 miles) south to service other mines as well, and to tie into a major rail line in central Wyoming. The Powder River Basin is now served by a wishbone-shaped track configuration that allows train movement north into Montana, south into Colorado, and east into Nebraska for connections across the country. Operations at Belle Ayr are closely tied to train arrivals and departures, with coordination essential between mine operations and rail personnel. "Train movement in the Powder River Basin has evolved to the point where we are fine-tuning mining operations to coordinate them with a more dependable transportation system," according to Joe Jefferson, transportation supervisor with Amax Coal's western division. That, however, hasn't always

Jan 10, 1982

By Myron W. Mellor

Much has been published concerning the subject of coal preparation as related to electric power generation however it is always a most vital topic for both utilities and coal producers, It also constitutes a field of study that is never finished since new concepts and changing demands continually require altered perspectives. One graphic illustration that has been used to emphasize the rapidity with which times are changing is the fact that during World War I, a station that consumed 1000 tons per day was looked upon as a large central station, while today some single generators require 1500 tons during the same period, For further emphasis, at that time a 20,000 horsepower turbo-generator was a mighty large machine; today, a unit of this size is planned for driving the boiler water feed pump required for a single large main unit. During the past ten years alone, electric utilities have more than doubled their percentage of coal consumed as compared to the total market. They now account for approximately 40% of the United States consumption and one-third of all production including export, Conversely, approximately 70% of all U. S. steam electric generation is by coal and this percentage is expected to increase. It is further predicted that utility consumption will increase from the current 160,000,000 tons per year to between 400 and 500 million tons in 1975 which is approximately equal to todays total production

Jan 1, 1959

By Nawal Kishore, Nilesh Pratap Singh, Amit Kumar Verma, Vikram Seervi

In India, despite its natural abundance, demand for coal exceeds its countrywide supply due to failure to achieve high production targets, especially in opencast mines, which are responsible for 94.98 percent of total raw coal production in the country. Employment of technological solutions, such as surface miners, is key to achieving higher coal production and productivity in an environmentally friendly manner, especially in populated areas adjacent to the mining zone. This technology eliminates blast hole drilling, blasting and primary crushing units, thus reducing related environmental hazards like ground vibration and fly rocks.

May 1, 2023

By Laurence M. Demers, Douglas C. Kuhn

It has been suggested that radicals on the surface of dust particles are key chemical factors in the pathophysiology which results from the occupational inhalation of coal and silica dust. In addition, oxygenated derivatives of arachidonic acid (eicosanoids) have been implicated as important biochemical mediators of mineral dust-induced lung disease through their role in bronchial and vascular smooth muscle reactivity, inflammation, and fibrosis. Therefore, we assessed eicosanoid production by the rat alveolar macrophage (AM) exposed in vitro to mineral dusts with varying surface chemical characteristics in order to determine if radicals associated with the mineral dub1 could influence the production of pro-inflammatory mediators in the lung environment. Rat AM were exposed to freshly fractured or "stale" bituminous coal dust, as well as untreated silica or silica calcined to 500°C and 1100°C. Prostaglandin E2 (PGE2) and thromboxane B2 (TxB2) levels in incubation medium were determined by specific radioimmunoassay. When AM were exposed to freshly fractured coal dust, PGE2 and TxB2 production were markedly increased. In contrast, exposure of AM to "stale" dust significantly reduced PGE2 and TxB2 production. In vitro exposure of AM to untreated silica resulted in a significant increase in PGE2 and TxB2 production compared to control. However, exposure of AM to silica calcined to 1100°C resulted in eicosanoid levels which were not significantly different from control. These findings suggest that radicals associated with respirable coal and silica particles may play a key role in the ability of mineral dust to activate AM eicosanoid production.

Jan 1, 1991

By Denis Murphy, James Gusek, Carl Mann, Thomas Wilderman

An active underground lead mine produces water having a pH of 8.0 with 0.4 to 0.6 mg/L of Pb and 0.36 mg/L. of Zn. This water is pumped at the rate of 1.200 gpm into a five-cell, bioreactor system covering about 5 acres. The gravity flow system is composed of a settling basin followed by two anaerobic bioreactors arranged in parallel which discharge into a rock filter polishing cell that is followed by a final aeration polishing pond. The primary lead removal mechanism is sulfate reduction/sulfide precipitation. The discharge has met stringent in-stream water quality requirements since its commissioning in 19%. However, there have been startup and operational difficulties. The system was designed to last about 12 years, but estimates suggest a much longer life based on anticipated carbon consumption in the anaerobic cells.

Jan 1, 2000

The objective of the fines flotation step in a coal preparation plant is to maximize coal recovery subject to a constraint on the allowable ash in the concentrate. The objective is achieved when the incremental ash is driven to a target value determined by an economic constraint. In this paper, a phenomenological flotation model and ash analyzer combination are identified that allow the development of a soft sensor for incremental ash and subsequently a model-based strategy which manipulates key flotation variables to achieve the control objective. A combination of plant tests and computer simulations are presented to evaluate control-system performance in one operation.

Jan 1, 1999

By John A. Dunn

The history of underground coal mining has developed through the years from a manual digging and loading process to the highly mechanized pro- cess that it is today through the use of electric power. Mine power systems have closely followed the continued pattern of improvement and mechanization, through necessity and the application of technological advances, At the beginning electric power used in coal mines was confined to haulage. Since d-c power was better suited to traction drives, mine power systems naturally developed using direct current. During this development, a number of street railway systems were in service, using 550 volts, and it was natural that mine trolley systems went in at 550 volts. As machines for mining operations developed and the number of operating mines increased, a safety hazard developed through the use of 550 volts. Most regulating agencies opposed the use of 550 volts, and after a time the maximum voltage permitted was limited to 300 volts hot line to ground. Up until this time most mines had operated with one central generating station, which served utilization power to the whole mine. Power demands were not very great and transmission losses were within reasonable limits.

Jan 1, 1964

By Stanley Dempsey

INTRODUCTION The mining industry has been under- going a significant restructuring for the past several years. Some firms have been liquidated. Some have been merged with other firms. A number of mining divisions of larger firms have been spun off, in some cases in leveraged buyouts by management. Recently, there have been a number of spin outs of gold subsidiaries. There are also a number of start-up situations where new firms are emerging as significant gold producers through mine development or acquisition. This restructuring has created an attractive market for specialized mining finance firms, and a number of firms have recently entered that field in the United States. These firms provide financial advisory and valuation services to mining firms and project developers, and access to venture capital. In some cases, they invest for clients or for their own account. I have been asked to describe how our firm works, and what kind of information we expect to receive when mine developers seek our assistance in financing a project. HOW WE OPERATE Denver Mining Finance works for both mine developers and investors. We also provide expert advice on mining issues to governments and to firms who are in litigation over mining issues. A lot of our work involves valuing mineral interests for various purposes. Our principal expertise is in the technical, commercial, and financial area. We help put mining deals into shape commercially so that they can be financed, and we help investors get into mining deals that are commercially sound. We work on projects, but we also advise mining firms on the structure of their business and how to make the most out of one or several mines that they might own. In addition to our work for clients, we are also prepared to invest in mining projects for our own account, and to recommend gold properties for acquisition by our parent company, Royal Gold, Inc. We are, to some extent, a venture capital firm, in that we sometimes work with projects that are not "bankablerV1 and are prepared to invest in attractive early-stage situations in mining. However, I want to emphasize that our principal focus is on development of commercially attractive mining projects that can be brought into production in the best possible financial terms. If we can make a project qualify for a project loan from a commercial bank, we will not advise the developer to use high cost venture capital. For the purpose of this paper, I will focus primarily upon our functions with respect to development of precious metal projects. In a typical case, a firm with an advanced-staged project approaches us for help with financing the final feasibility study, and construction and operation of a mine. In some cases, the developer has already developed a financing plan and wants only our access to investors. If we agree that the project is sound and that the financing scheme will be attractive to investors, we will help the developer reach investors on a commission basis. In such cases, we are particularly insistent that the financing plan and our participation meet all regulatory requirements, particularly compliance with state and federal securities laws. In most cases, however, the developer asks us for advise both on how to structure the financing, and how it can be implemented. Here we work for fees based on hourly rates for advisory work,

Jan 1, 1987

By D. Denton, C. Peppin, D. Tesarik, D. Bayer, J. B. Seymour

Hecla Mining Company and NIOSH cooperated in a study to document the safety of rock support supplied by reinforced cemented paste backfill at the Lucky Friday Mine. Data are presented on backfill modulus values from laboratory tests and compared with modulus values from in-mine wall closure on the backfill. It is theorized that a compressive zone is created in the backfill between the upper and lower bearing plates on the reinforcing bolts, and that the backfill remains stable as long as the compressive zones from adjacent bolts overlap.

Jan 1, 2001

Information Technology has addressed those problems unique to senior management in the mineral industry. In general, these problems are those concerned with decision-making. Peter Drucker in his discussion of making effective decisions identifies five phases: (1) define the problem, (2) analyze the problem, (3) develop alternate solutions, (4) decide the best solution, and (5) convert the decision into effective action. The scope of the chapter by Guernsey addresses the first three phases which provide input to the decision-maker. The decisions to be made relate, in most instances, to the economics related to a mineral property or process. Computer models have been designed to generate these economic and financial evaluations. No one model is appropriate to the solution of all management's problems. In this chapter several applications are identified and summarized; a model for the economic evaluation of a mineral property is described in greater detail. The implementation of such models is dependent on the unique needs of management.

Jan 1, 1979

By B. R. Waples

The first reaction in organizing a project of magnitude is that it's the same as smaller projects -- just bigger. This is not totally correct. The industry's record of completing big-money jobs on time and within budget is not outstanding. From a personal point of view, my question is: What is the project size at which controls are lost? Is it controls? Is it the number of pieces of equipment? Is it the number of decisions to be made? The slowness of communications? Or is it a combination of all of these? In working on multimillion-dollar jobs, the percentage of overrun seems to be lower or show an underrun when the following basics are followed: 1) Preplanning is intensified 2) Data gathering is complete 3) Approach is optimized 4) Planning is realistically scheduled 5) Changes are minimized 6) Decisions are expedited

Jan 1, 1982

By Enrique Llewellyn

North River Energy Company a previous subsidiary of Republic Steel Corporation commenced development of the Number One Mine in mid-1972. The mine is located in West Alabama and presently employs a total of 632 people. Production capabilities have increased to 1.4 million clean tons of steam coal per year with the newly purchased Longwall System. Washer recovery averages 57 percent. The seam being mined is the Pratt or Corona with an average height of 52 inches and an average cover of 540 feet. The immediate roof is laminated sandstone and the floor is composed of a hard fireclay. Total production out of the mine is provided to Alabama Power Company under a longtime contract.

Jan 1, 1981

By Alejandro Gutiérrez, David Ahues, Paola Merino, Felipe González

The semiautogenous grinding (SAG) mill is one of the most important pieces of equipment in the comminution of materials. Its objective is to reduce the size of the ore until the ore can be released and continue on its transformation process. Although it is a simple process that involves impact, abrasion and attrition, its energy consumption is extremely high and inefficient, with no more of 17 percent of the energy supplied going toward size reduction. This gives rise to an important challenge because any improvement generates great economic benefits.

By Vladimir Jindrich

This paper presents a history of a successful three year effort in locating a large, economic deposit of high purity limestone. The exploration program has been carried out by Ernest K. Lehmann & Associates, Inc., geological consultants, for Dravo Corporation, owner of the limestone property which is now under development. The permission of Mr. L. P. Struble, Jr, President of Dravo Lime Company, and Mr. M. W. Robinson, Director of Research and Development, to present this paper is gratefully acknowledged. The limestone property is on the Ohio River near Maysville in northern Kentucky, 60 miles east of Cincinnati (Fig. 1). The area lies at the eastern flank of the Cincinnati Arch, a regional structure where the Lower Paleozoic strata crop out below the adjacent younger sedimentary rocks of the Illinois and Apallachian basins. In general, the limestone formations of the Middle Ordovician High Bridge group offer the best potential for industrial limestone in Kentucky and adjacent parts of Ohio and Indiana. These formations are exposed along the axis of the Cincinnati Arch in central Kentucky. Toward the west, east and north, strata of the High Bridge group are progressively deeper, concealed beneath a succession of interbedded fossiliferous limestone and shale. The High Bridge group limestone formations are shallow-marine deposits largely of tidal flat, shallow lagoon and related environments. Principal lithologies include cryptocrystalline micritic limestone and crystalline dolomitic limestone to dolomite. Shale and bioclastic limestone are subordinate but the proportion of shale increases in the basal formations. Characteristic, is the occurrence of several thin beds of bentonite that serve as regional stratigraphic key horizons.

Jan 1, 1975

By Robert A. Jankowski, J. Drew Potts

By implementing various mining practices, mine operators can reduce the respirable dust exposure levels of the roof bolter and the continuous miner operators. The Bureau of Mines has developed a computer program, entitled AMP (Alternative Mining Practices), that gives a quantitative comparison of these reductions. The alternative mining practices and their corresponding reductions in dust exposure levels that are evaluated by the program include a remote control continuous miner, a half-curtain ventilation system, two auxiliary fan-tubing bypass ventilation systems, a modified cutting sequence, a comparison between single-split and double-split ventilation networks, and a comparison between exhausting brattice and exhausting tubing. Descriptions of each of these mining practices are included in the report. The report also includes a hypothetical case study to show how AMP enables mine operators to select the technique(s) that is best suited to their particular needs. AMP is a compiled basic program that has been designed to run on computers with a DOS version 2.0 or later operating system. It includes high resolution graphics (640 X 200 dot positions) designed to run with video boards that are functionally compatible with the IBM Monochrome/ Printer Adapter. Graphic screens are selected from menus, and can be bypassed if the computer is not equipped to handle high resolution mode. Their primary function is to show proper implementation of the mining practices evaluated by the program. This package requires a minimum of 256K bytes of RAM. (Reference to specific products does not imply endorsement by the Bureau of Mines.)

Jan 1, 1987

By Peiwei Xiao, Xiang Li, Biao Li, Haoyu Mao, Nuwen Xu

As an advanced method of rock engineering construction safety monitoring, microseismic monitoring technology can monitor the micro-fracture of rock masses within an effective range, and then perform forecast analysis of rockburst, cracking, falling blocks and other disasters. Although the application of microseismic monitoring technology has become more mature, how to improve its application efficiency remains to be further studied. At present, artificial intelligence has been extensively developed, and the use of intelligent algorithms to improve the efficiency of rockburst forecast can provide a valuable reference for the safe construction of underground engineering. To this end, this paper proposes a microseismic multi-parameter rockburst early warning model based on dynamic Bayesian networks. First, the sensitivity of microseismic source parameters to rockburst forecast is analyzed based on microseismic monitoring data and actual rockburst information of a hydropower station. Second, the main seismic source parameters and their data are selected and imported into a dynamic Bayesian network for learning to obtain the rockburst forecast model. The model is confirmed in its self-validation and K times cross-validation, and the receiver operating characteristic curve of the model is also analyzed, it is found that the area under the curve is close to 1, indicating that the model has good accuracy. Finally, the analysis of the influence strength of the parent and child nodes in the model reveals that the moment magnitude and source scale are the most sensitive parameters, which can be used as an important reference for rockburst forecast.

Apr 26, 2022