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By A L. Welsh, P S. Newling

Mill operators are entrusted to manage what are normally the largest capital assets on any mine site. Achieving maximum utilisation and lowest costs that drive operating margins are realised by applying well known fundamentals of good housekeeping and proactive (as opposed to reactive) maintenance programmes. Historically, maintenance and operations staff are bought in late during the construction stage and often do not have the time, know how or tools to put in place (let alone train the incumbent staff) a functioning maintenance system before commissioning starts. They then get drawn into a reactive maintenance paradigm as teething problems post commissioning are dealt with and day to day issues envelop the line tradesmen and supervisors. Additionally, even when some semblance of a planned maintenance system is established, it is often the case that over time personnel and cultural issues mask the development of problematic maintenance practices. As has been observed by the authors on many occasions, even when some basic programmed maintenance system is in place, the collection of maintenance data is often inaccurate, incomplete and not subject to analysis. The net result is of course a high incidence of machine failure leading to lower than expected availability, which ultimately translates to lower revenue and higher net maintenance costs. The time taken and the cost to repair a failed machine is always greater than the timely and planned repair of a worn machine.Upon review of a number of processing plants around the world, especially gold and small base metal operations, it is apparent that companies need to implement maintenance systems whereby the operators are not overwhelmed with data and can manage by exception. Inadequate or inaccurate data collection and analysis result in poor decisions being made and misguided actions taken. GR Engineering Services (GRES) has developed a system to enable the custodians of mining plant assets to make more effective and effective use of maintenance data by being able to focus on the indicators of plant deterioration and to programme concurrent maintenance activities to maximise plant availability and utilisation.This paper outlines the structures that can be employed to address the challenges of implementing a proactive asset management system. The best practice strategies described herein have been based on the fundamentals of a sound asset management framework:a phased approach to the development of Asset Management methodology and processeseffective implementation of programmed maintenance routinesmanaging asset condition data collected from various sourcesefficient analysis of asset data and management by exceptioninterfacing asset management data with Computerised Maintenance Management System (CMMS) and Electronic Management Systems (EMS) systemstips to assist with maximising asset performance.CITATION:Welsh, A L and Newling, P S, 2015. Operating strategies for custodians of company assets creating wealth, in Proceedings MetPlant 2015, pp 338–352 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 7, 2015

By J. E. Nesset

The bubble size, together with the gas rate, determines the bubble surface area flux in flotation machines and, therefore, impacts directly on the kinetics of flotation. Understanding the variables that influence bubble size is one of the keys to understanding flotation recovery. Surprisingly, these relationships are poorly understood, largely due to the difficulties associated with gas dispersion measurements in industrial environments. The McGill gas dispersion sensors (bubble size, gas rate, gas holdup) are capable of reliably making such measurements. This paper reports on a study, using the McGill sensors in a 0.8 m3 Metso RCSTM pilot cell, which investigated the effect on bubble size of frother type and concentration, gas rate, temperature and rotor speed. A Denver laboratory cell was used to investigate the effect of elevation above sea level. Frother concentration proved to have the predominant influence on bubble size, and the effect of frother type can be normalised as a function of the critical coalescence concentration (CCC). Measurements made at many plant sites worldwide are compared to the model developed using the Metso RCSTM unit.

Jan 1, 2007

By S. Tanaka

The Tamano Smelter of Hibi Kyodo Smelting Co. Ltd. was commissioned in 1972. Since start up, the anode production capacity has increased from 101,000 tpy to 290,000 tpy, as a result of the application of continuous improvements at each phase of the expansion projects. The Tamano Smelter had developed several innovations, including the original coke combustion technology for Flash Smelting Furnace operations (T-FSF), and has also been able to extend the operating life of the Peirce-Smith converters. This paper will present several improvements implemented at the Tamano Smelter, and will discuss relevant P-S converter operation.

Jan 1, 2005

Sishen Iron Ore Mine previously used only A-grade material (>60% Fe in situ value) from the pit for beneficiating in the DMS plant to a final product grade of 66% Fe in lump and 65% Fe fine ore. The B-grade (between 50% and 60% Fe) and C-grade material (between 35% and 50% Fe) were stockpiled separately, owing to the inability of the existing DMS plant to beneficiate material at densities higher than 3600 kg/m3. The ability to beneficiate the B-grade material at densities higher than 3600 kg/m3 was evaluated, and air-pulsed jigs were found to be techno-economically feasible and value maximizing. The beneficiation of B-grade material would add to the existing DMS production of 28 Mt/a, with no additional mining cost and only limited costs for the handling of waste and B-material. The objective of the Sishen Expansion Project (SEP), i.e. the jig plant, was to produce 10 Mt/a of saleable product with six modules to the set physical and chemical specifications by 2009. During the start of construction, it was decided to add another two jig modules to the plant to increase production to 13 Mt/a. During commissioning and ramp-up the shortcomings and advantages of the jigs were fully experienced and understood, resulting in many changes to optimize jigging performance..

Jan 1, 2014

By L. A. Melis, J. W. Rowson

"Cluff Mining operates the Phase II uranium mine and mill at Cluff Lake, northern Saskatchewan. During the Phase I operation, uranium tailings were generated by acid leaching of a gravity concentrate and high-grade ore for uranium recovery. The pre-treatment gravity process, as well as the high-grade nature of the ore, led to a concentration of gold in the tailings which justified the installation of a small circuit to recover the contained gold. The operating circuit consists of tailings repulping, grinding, cyanidation, carbon-in-pulp, gold recovery, and cyanide destruction by acidification, volatilization and re-neutralization. The process is described and typical operating parameters are provided. 1.0 INTRODUCTIONCluff Mining, a Saskatchewan partnership, is owned 20 percent by Saskatchewan Mining Development Corporation (SMDC) and 80 percent by Amok Ltd./Ltee. (Amok), manager and operator of the partnership.The current operation includes the Phase II uranium mining and milling facilities, located at Cluff Lake 700 km north of Saskatoon, capable of processing 300,000 tonnes of ore to produce about 4,000,000 lbs. U308 (1500 tonnes of uranium) per year.The Phase I operation was initially established to process the very high grade ""D"" uranium orebody from 1980 to 1983. The leach tailings from the operation Phase I mill operation were found to contain elevated levels of gold. These high gold values were partially due to the gravity pre-concentration step included in the uranium recovery circuit, and to the naturally high levels of gold associated with the uranium mineralization in the ""D"" orebody."

Jan 1, 1988

By Ernie Doell, Trung Nguyen

"In early 1995 Cluff Mining commissioned a newly constructed high density tailings thickener at its Cluff Lake uranium mill. The 85 ft diameter high density thickener is one of the first of its kind in North America, and incorporates the novel paste technology in its design to produce densified (in the range of 60 -65% solids) mill tailings suitable for stable deposition in the tailings management area. This paper discusses the impetus behind the installation of such an unconventional thickener, and the many trying experiences in making it operational.IntroductionCluff Mining, a wholly owned subsidiary of Cogema Resources Inc., is the operator of a uranium mine and mill complex at Cluff Lake which is located in northern Saskatchewan. Since 1980, the company has developed and mined out several different ore bodies within the Cluff Lake region for the production of uranium concentrates, commonly known as yellow cake. Based on the known ore reserves, the Cluff Lake operations are projected to last till the early 2000's.Tailings from the Cluff Lake mill have been discharged to a tailings management area consisting of a tailings pond and two facilities for primary and secondary treatment systems. The tailings pond has an impervious bentonite lined dam, and it is divided into a solids and a liquids holding areas. Until the beginning of 1995, the mill tailings were discharged in two separate lines to the solids pond; one line carried the slurry residue of 45-50% solids (w/w) from the CCD circuit, and the other discharged raffinate tails containing less than 1 % (w/w) gypsum precipitate. Supernatant in the solids pond is treated in the primary treatment system prior to discharging to the liquids pond. Figure 1 shows the site plan of Cluff Lake tailings management area.It has been estimated that by the end of 1995 the solids pond would be filled to about 60% of its design capacity, and probably would be full before the year 2000. Therefore, Cluff Mining had to consider a more efficient tailings disposal method that could extend the service life of the existing Cluff Lake tailings management area. A high density tailings thickener was believed to be the most practical and economical system for tailings disposal at Cluff Lake mine."

Jan 1, 1996

By Firth B. A

The classification performance of a Dutch State Mines (DSM) Rapped Sieve Bend has been investigated in a series of experiments. Coal slurries of a nominal 0.5 mm size were classified in the separation range of 0.10 to 0.14 mm at pulp densities from 6 to 21 per cent by mass of solids, and flow rates of 110 to 1375 litre min-1.The results obtained showed that the partition curve and water split io oversize was dependent on the solids flow rather than slurry flow rate or pulp density. For most of the operating conditions considered an accurate classification of the fine coal was obtained. The undersize efficiency was susceptible to solids flow rate, and was less than 70 per cent for solids flow rates greater than 16.7 tonne hour-1 metre-1 width of screen.

Jan 1, 1983

By K Lownie, R Sani, A Sianturi

Part of the PT Freeport Indonesia (PTFI) mine production is in the process of transitioning from the deep ore zone (DOZ) mine to the deep mill level zone (DMLZ) mine. The DMLZ mine is the next lift in the caving series and lies 500 m below the current DOZ footprint.In order to reduce the need for a very expensive additional ventilation system for the DMLZ mine, it was decided to reconfigure some infrastructure and upgrade the performance of the three existing DOZ mixed flow ventilation fans in situ, reducing the new fans required to two. This was far less costly than providing complete new installations.These fans are installed in individual underground chambers in DOZ mine exhaust drifts and connected to the DMLZ mine exhaust drifts system in 7 m × 7 m airways size, through sets of 6 m diameter by 500 m high raises.The upgrade process involved replacement of motors, fan shafts and bearings. The existing 1600 kW DOZ mixed flow fans are 3500 mm diameter and operate at a speed of 595 rev/min and were originally designed to deliver 390 m3/s at 3.3 kPa. Efficiency optimisation may be required at a later date.The upgraded DMLZ fans are required to deliver 425 m3/s at 3.7 kPa and it was necessary to increase in motor size and speed to 2200 kW at 710 rev/min. This paper will discuss the fan upgrade project and in particular the integration of an unusual ventilation system, which is based on the semi parallel operation of multiple large fans.CITATION:Sani, R, Sianturi, A and Lownie, K, 2017. Operation of deep mill level zone mixed flow fans after the first fan upgrade – a parallel fans case study, in Proceedings Australian Mine Vent Conference 2017, pp 285–292 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 28, 2017

By J. H. Jacobs

This report records a chapter in the history of the development of an electrolytic manganese industry in the United States. Nearly all the manganese requirements of the United States have been imported. Although there are large quantities of manganese ore in the United States, most of it is low-grade and cannot be used for the production of ferromanganese. Since the electrolytic production of manganese carried out by a process developed in the laboratories of the Bureau of Mines offers a method whereby the extensive low-grade deposits may be utilized and since commercial development had proceeded slowly, the Bureau constructed a new and larger pilot plant at Boulder City, Nev., where abundant electric power was available. An authorization in November 1940 covered a plant of only several hundred pounds daily capacity. Additions to some sections author¬ized by subsequent appropriations have enabled the plant to produce over 2,000 pounds a day for extended periods.

Jan 1, 1946

By L. W. Hamel

"Two 35 foot diameter enviro clear thickeners were tested in series as CCD units from June until October, 1978. Up to shutdown in July, we ran with automatic bed level control via the level probes and underflow pinch valves. Despite extensive efforts, we were unable to eliminate the surges created between the units by the opening and closing of the pinch valves. Early in July, the best rake speed and gap setting were determined. After shutdown, the enviro clears were run by manually controlling the pinch valves. These efforts were successful.A few mechanical problems were encountered while operating the thickeners. New units should incorporate more support for the drive coupling and a rubber feed seal. A few modifications of the instrumentation control scheme will be required before the units can be fully automated. A less sophisticated automatic flocculant addition system will accomplish the desired results. Control of the underflow withdrawal via the pinch valve should be investigated further. Our best results were obtained by keeping the feed volume to the No. 1 enviro clear constant. Surges were controlled by opening or closing both underflow valves proportionately.Capacity of the enviro clears is dependent of many variables. The ore treated during the test program was much finer than that reported on in R & D Project Report 76-02. Conditions were never steady enough to determine best flocculant dosage or addition point(s). The lowest soluble losses were obtained at very high wash rates. The underflow densities drop but the soluble losses also drop. Regression equations were developed in order to assess the effect of the various parameters. Within the range studied, these equations will predict the performance of enviro clear thickeners as CCD units on Elliot Lake ores. Our results show that the enviro clear thickeners are a viable alternative to the conventional CCD thickener."

Jan 1, 1979

By G. E. Norman, A. L. Mckague

"The new smelting process commenced operation in 1978. The pelletizing and sinter plants were replaced with slurry-fed roasters and the blast furnaces with electric furnaces. The existing converter aisle and matte handling facilities remained unchanged.Process DescriptionNickel-copper concentrate is partially roasted in two slurry-fed fluid bed roasters. After gas cleaning, the sulphur dioxide gas is transferred to the acid plant. The roaster product is conveyed to two electric furnaces for smelting to produce a waste slag and furnace matte. The slag goes to the disposal area and furnace matte containing the metal values is processed in the converters for further removal of iron and sulphur.The final matte containing about 75 per cent metal values is shipped to the refinery in Norway.The commercial smelter was designed for 2135 tonnes per day of concentrate, with an availability of 85% . Roasters and electric furnaces were sized at 117 per cent of design, or 1250 tonnes per day on each of two lines. Concentrate storage capacity in the plant is sufficient for two to three days' plant operation.The new smelting process will be discussed under the following headings:Concentrate Slurry HandlingFeed PreparationRoaster OperationRoaster Gas CleaningCalcine TransferElectric Furnace Operation and Process Control Converting and Matte HandlingUnder these headings, process control , equipment changes, and plant performance after three years' operation is reviewed. A brief discussion of accident prevention , and working environment is also included ."

Jan 1, 1984

"At a current mining rate of 3,750 tons per day, La Mine Doyon is currently the largest gold mine in Canada. La Mine Doyon is an open pit gold mine located in the Abitibi area of Northwestern Quebec. The project is a joint venture between Soquem, a Quebec Crown Corporation in the resource development field and Lac Minerals Ltd., a publicly-held, resource development company. Lac Minerals is the managing company and operator of the project.Doyon went into production in 1980 on a very limited basis at 600 tons/day, and has seen a step wise increase to the current rate of 3,750 tons/day. Initially, all the ore was processed at Noranda Mines, Horne Division as flux for the copper smelter. The East Malartic Mill in Malartic was then upgraded and began processing Doyon ore. The third step in the progressive increase of throughput was the commissioning of the Doyon mill in November of 1982. Doyon ore is currently being processed at all three locations.During 1983, an exploration ramp was driven to explore the ore below the ultimate pit depth. Current plans indicate the sinking of a shaft and the commencement of underground mining during the next 2 or 3 years.Since its humble beginning, La Mine Doyon has always been a success; ore reserves have been extended to the east and the west and will soon be confirmed at depth, the mining and processing rates have been increased 6 fold, and the recovery has been increased from a designed recovery of 85% to over 95%. The intent of this paper is to trace the history and reasons for these rather dramatic improvements."

Jan 1, 1984

Kidd Mine in Northern Ontario is now producing from Stage 1 of the Mine D expansion project ? mining between 2100 m and 2700 m below surface. Planning for Stage 2 of the Mine D project is already well advanced and will see the mine extended potentially to 3100 m below the surface. To ensure adequate ventilation is maintained at such depths, two large axial fans have been installed on the 6000 Level (1800 m below surface) as exhaust booster fans to operate in series with the surface exhaust fans. The Kidd Mine 6000 Level Booster Fans are a unique installation with unique and often unexpected challenges. These challenges have been met and attacked through the combined efforts of mine and fan manufacturer personnel with a common focus.

Jan 1, 2009

Small scale gold mining operations in Papua New Guinea (PNG) have been observed to use very low flow rates of water in sluice boxes. In a series of laboratory experiments carried out to determine whether this approach was unsatisfactory or not for their situation, indications were obtained that it had some advantages in the recovery of fine gold but at the cost of considerable throughput. The separation mechanisms operating in such a system are analysed.

Jan 1, 1986

By Justin S. Johnsen

As OEM sensors and interfaces have grown in number, the available data from equipment in the mining environment has continued to multiply. This equates to an increased visibility of operating performance, mechanical and electrical health, and predictive monitoring that can directly improve maintenance reliability and scheduling. With increased visibility, where should a reliability engineer begin to look to directly impact Capacity Assurance? More specifically, what source will provide inputs to the Failure Modes Effects Analysis (FMEA)? Results from these analyses must be documented, and they must contribute to the overall mission of the mining company; these results must reduce costs and increase profits. Through detailed data capturing, documenting, and analysis, Modular Mining Systems? Time Tracking application, used in the MineCare® maintenance management solution, can drive decisions and provide direct impact to engineering projects for continuous improvement in the mine maintenance organization.

Nov 1, 2011

By R. Duckett, D. Salisbury, R. Dorey

The Kennecott Ridgeway Mine in South Carolina is scheduled to complete mining and ore processing in the last quarter of 1999. Tailings are disposed in a 300 acre, lined tailings impoundment. To facilitate closure and reclamation, modification of the tailings impoundment operation has been adopted. Mining involved the sequenced development of two open pits. In 1996 mining of the South Pit was completed and backfilling of the pit with waste rock from the North Pit was initiated and will continue until mining ceases. Both pits will be reclaimed as fresh water lakes. This paper presents the physical, geochemical and hydrogeochemical evaluation of the operational and post operational management of the project. Comparison of the operational monitoring data against predicted performance are reviewed.

Jan 1, 1999

Operations of the new copper smelter at Mount Isa commenced on the 6th February, 1953. Prior to this date a paper by R. V. Anderson (1953) outlined the smelter layout, proposed operation and expected performance.Nominally a 50-ton per day plant, output is currently at the rate of 85 long tons per day. In the first 3t years, of operation to 30th June, 1956, '71,339 tons of blister copper were produced. Operation has been stabilized' and a number of modifications to plant and operation have been made. This paper reviews the progress made to date.GENERAL LAYOUT AND EQUIPMENTThe general layout and equipment follows well-established practice as study of Figs. 1 to 4, and Appendix II will show. This diagrammatic representation of layout (Fig. 1) and flow sheet (Fig. 2) is intended for the purpose of brevity to take the place of a detailed plant description.Choice of site for the smelter was limited by the necessity for close proximity of the waste heat boilers to the powerhouse.Much excavation was necessary before foundation work commenced, but the plant is compact and further expansion is possible.CHARGE MAKE-UPRoaster charge initially comprised concentrates, purchased ores, revert materials, mine sulphide ore and barren sand. As purchased ore receipts increased and as domestic black rock oxidized ore became available, the latter two fluxes were eliminated from the charge. Fluxes at minus i-in. sizing are trucked from crushing plant or stockpile by motor lorries. Filtered mill concentrates are dropped from an overhead conveyor on to the storage patio floor adj acent to the two concentrate bins.

Jan 1, 1957

By L. M. Kaas

Production planning techniques, particularly a production scheduling model are proposed for use in taconite mining in Minnesota. Applications of the scheduling model, on a two-year mine plan, which evaluates the equipment involved, are detailed. Data and tables are included. INTRODUCTION Fifty years ago Walter Swart, a mining engineer investigating the Minnesota taconites for the Jackling interests, made this report: "There is no doubt in my mind that this taconite mining is a game worth playing and that it can be played to a successful finish. It seems now only a question of men, money, methods and details."' The prosperous industry envisioned by Swart and other taconite pioneers is today a reality. Its growth has been spurred by technological advances in mining and beneficiation, depletion of natural ore reserves, and improvement of the economic climate. However, the massive problems that were solved to make this development possible are only a foreshadowing of the questions of "men, money, methods and details" that will be encountered in the future. The increasing demands for higher quality taconite pellets have already forced producers to examine better methods of quality control for their operations. THE NEED FOR PRODUCTION SCHEDULING The maintenance of fairly constant crude ore characteristics is of major importance to mill quality control. Through careful mixing of ore from storage bins, the concentrator staff can partially reduce the deviations of the feed analysis from the analysis desired. However, the limited effectiveness of bin mixing systems has caused some mining companies to utilize large capacity blending piles to reduce grade variations. Although the analysis of material being reclaimed from such a pile is relatively uniform, raw materials still must be scheduled from the mine into the pile in such a manner that the average analysis of all material is close to the feed analysis prescribed by the mill. PRODUCTION SCHEDULING MODEL Minnesota taconite mining companies have used three analyses to estimate how a certain ore will react to concentration. These factors are the crude magnetic iron content of the ore, the iron content of the plant concentrate produced from the ore at a standard grind, and the grindability index of the ore. The actual laboratory tests used to determine these factors have been described by Apuli.2 These data are obtained from analysis of diamond drill cores, and are the established criteria used by mine planning engineers to formulate taconite production schedules. Variations in the grade of mine output should be controlled by any production scheduling system. However, to be truly practical, production scheduling methods must also consider many of the less tangible variables that affect mine operation. These include pit layout, available equipment, and ownership of ore leases. The number and scope of the variables inherent in this type of mine planning suggested that a computer simulation could be used to solve the problem. The preparation of information for use with a computer simulation program was the initial phase of this project. Meaningful data was developed from logs of diamond drill cores. Analyses were related to their respective areas of influence by means of mine maps, Fig. 1. The three assay variables and tonnages for each area were punched on cards. In addition to these values, a location code number was punched in the first eight columns of the cards. This code is explained as follows: Column 1 Bench number Column 2 Quadrant location as determined by mine reference lines Columns 3-5 East-west coordinate Columns 6-8 North-south coordinate The heart of any simulation techniques is a well engineered mathematical model. To develop a model for taconite production scheduling, the relationship between the three assay variables had to be established. Because changes in each analysis factor affect the mill circuits in different manners, a weighting system was used to determine the relative im-

Jan 1, 1967

By Daniel T. Brian, O&apos

Exploration targets and results in the mining industry are commonly summarized in terms of tonnage and grade. Business appraisals require, as additional information, the expected profit or loss implied by the physical summay. The early incorporation of knowledge gained through financial analysis computations can provide a means for economically resolving many common exploration and development problems. Examples of such applications from the activities of exploration planning, reconnaissance, land acquisition, and development planning are presented. While prospecting for mineral deposits, geologists are frequently asked what they hope to find or have found. The response is usually descriptive, such as "50 million tons of 1% copper," and the economic implications are deferred until a capital investment decision is required. At that time, a financial analysis integrating the four analysis components is completed. These components are: 1) Tonnage and Average grade above cutoff grade 2) Capital and operating costs 3) Product value 4) Appropriate profit or loss accounting Close examination of these components reveals that there is no intrinsic reason for avoiding financial analyses at earlier stages in exploration, as long as the uncertainty of the estimate is realized. Tonnage and average grades are commonly estimated at early stages in exploration. For this component, the appropriate cutoff is the major uncertainty. Capital and operating costs are difficult to estimate before detailed quantitative information is available, but estimates useful for the types of applications pertinent to earlier exploration stages are possible. Product value estimates may or may not be difficult, depending on the pricing structure of the particular commodity. A simplified accounting procedure usually may be adopted without introducing any significant loss of validity. This paper describe some of the financial analysis applications which are pertinent during mineral exploration and deposit development. These applications lend additional insight during exploration planning, land acquisition, physical exploration, and development. The examples are oriented toward a hypothetical management investment policy which is based on a single criterion, a minimum 15% discounted cash flow rate of return. In reality, managements use multiple criteria. This simplification is convenient for purposes of presentation and does not invalidate the examples. Computers are useful, but not a requirement, for the applications described. The use of computers provides the results on a more timely basis at costs lower than equivalent manual computations. UNDERLYING PRINCIPLES AND ANALYSIS METHODS Data estimates are subject to uncertainty. The analyst may choose to assess this uncertainty by using one of two principles. Each principle has some advantages. The principle most commonly employed is "assumed certainty." Each financial analysis is based on one set of selected data, which may represent the average estimates, minimum expected conditions, etc. The critical data is identified by making successive calculations, varying the values used. Such studies, called sensitivity analyses, isolate the economic effect of various uncertainties, and guide the allocation of future efforts toward improving the overall accuracy of the analysis. A second principle, "assumed risk," examines the interactive effect of the current uncertainties by qualitatively assigning probability distributions to each data element. These probability distributions indicate the currently appraised chance that a given numerical value will prove to be true. The corresponding procedure, risk analysis, consists of processing many individual financial analyses, each analysis being based on randomly selected numerical values from the probabilistic distributions. The result is a numerical presentation of the uncertainty, but care must be exercised in the interpretation of results. The advantage of this procedure is the direct measurement of economic uncertainty caused by the interaction of uncertain estimates. Kennecott Copper Corp. has developed computer systems for accomplishing sensitivity and risk analyses.

Jan 1, 1970

By J. S. Aronofsky

The areas are identified where the techniques of operations research have been applied in the petroleum industry. Particular emphasis is given to the linear program models that have been used for solving management problems. Of the entire gamut of applications for linear programming, attention is focused on the models that represent underground reservoirs. Such models could be used to help schedule drilling rig operations and to schedule oil production. A framework is established for placing the model for underground reservoirs in the proper perspective along with the models which represent other facets of the oil business. One of the remarkable phenomena of this century is the rapid growth in the size and' complexity of human organizations. The mere size of modern business means that administrative decisions can affect vast quantities of capital and large number of people. Mistakes can be tremendously costly, and a single wrong decision can require years for rectification. Moreover, the pace of modern business is such that decisions are required more rapidly than ever before; the mere postponement of action can give a decided advantage to a competitor. It is not surprising that the increase in difficulty of decision making has been followed by efforts to put this activity on a more objective basis. The growing science of operations research, which relies heavily on the methods that have proved so successful in the physical sciences, is one aspect of these efforts.

Jan 1, 1962