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By S C. Dominy

This contribution examines the effect of feedstock sampling before the sorting stage of polyethylene terephtalate (PET) bottle recycling. Batches of waste PET bottles may contain non-PET bottles which need to be removed by sorting. Any residual presence of PVC is detrimental for the quality of products manufactured from recycled PET. The maximum tolerated concentration of PVC in cleaned PET is extremely low, which places high demands on the recovery of PVC achieved by sorting. To be confident of attaining the desired PET quality after sorting, acceptance sampling of truckloads of PET bottles may take place prior to sorting. It is shown that accounting for sampling uncertainty requires that the sorting process achieves a consistently high recovery of PVC bottles.CITATION:Glass, H J and Dominy, S C, 2017. Plastics recycling and sampling, in Proceedings Eighth World Conference on Sampling and Blending , pp 129–134 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 9, 2017

By N H. Jansen, H L. Bridgwater

Field portable X-ray fluorescence (XRF) and near infrared (NIR) instruments are proven technologies in the minerals industry. The in-field results of these instruments can add value early in the project life, leading to cost-effective decision-making compared to their equivalent laboratory based techniques. However, in order to add value to a project, it is crucial that the instruments are employed correctly.Orientation studies should be carried out prior to initiating a sampling program to achieve the highest level of quality assurance and control for the results. Hence, an appropriate sampling workflow begins with considering what outcomes are required, including level of precision, accuracy, reliability for elements and minerals of interest, and sampling errors. The workflows proposed include soil sampling and reverse circulation and diamond drilling sampling techniques, and laboratory based techniques. They are practical and flexible workflows using available portable XRF and NIR technologies that can be applied to current sampling and drilling methods.The combined technologies have the ability to create large, integrated geochemical and mineralogical data sets that can provide cost savings for every stage of the mining chain from exploration to prefeasibility, mineral processing and environmental remediation.CITATION:Jansen, N H and Bridgwater, H L, 2017. Proposed workflows for portable X-ray fluorescence and near infrared instruments for soil and drill hole sampling, in Proceedings Eighth World Conference on Sampling and Blending , pp 219–228 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 9, 2017

By A Hollweg, K H. Esbensen, M Lischka

Two new splitter designs for intercepting moving streams of matter are presented, the variable cross-stream splitter (vCSS) and the rotary stream splitter (RSS), which are intended for implementation in a fully automated modus. The vCSS facilitates obtaining up to three subsamples with different splitting ratios from automated laboratory flow paths, while the RSS divides the intercepted sample into 16 equal analytical aliquots. The splitters can process a wide range of dry, granular and free-flowing materials (<5 mm). The required weight for each subsample can be set without mechanical adjustments in the case of the vCSS. Typical applications are subsampling/splitting for X-ray fluorescence pelletisation (or fused beads) or splitting for average shift composite sampling or grain size analysis. The vCSS combines the advantages of riffle splitting (three user-defined subsample masses) with miniature bed blending and can accept up to 15 kg in total incoming sample mass. In practice, the automated vCSS can deal with unlimited ingoing mass fluxes, while the RSS is designed to operate at a user-defined fixed subsampling rate (1/16th in the tested version). Both splitters have the potential to be optimised and evaluated according to an application/user-defined total sampling error (TSE) + total analytical error (TAE) threshold. Both splitters were tested under adverse conditions and with compositions involving three components with properties representing typical mass fluxes and components concentrations in industrial and technological systems: phosphate concentrate 89.00 per cent (<500 µm), slag ten per cent (>2 mm) and glass spheres one per cent (750–1000 µm). The slag particles vary widely in particle shape, aspect ratio and surface roughness, while the glass spheres are extremely prone to bouncing and segregation (spillage). This test system is extremely difficult to split and thus constitutes a realistic worst-case scenario. While the vCSS does not comply strictly with Theory of Sampling demands for correctness, both splitters may well be able to deliver fit-for-purpose representative results if/when tested properly. Average relative mass deviations ranged from 1.89 per cent for phosphate concentrate (relative standard deviations of 20-fold repeated splitting) to 4.72 per cent for glass spheres and 13.04 per cent for slag. For the RSS, the average replication experiment splitting variation was 2.89 per cent for phosphate concentrate, 4.82 per cent for glass spheres and 11.1 per cent for slag. Both new automated online splitters would therefore appear to be able to be tuned to fit-for-purpose representivity (defined here as maximum relative reproducibility <5 per cent) for many non-extreme materials; however, it is always imperative to test every new type/class of material empirically. There is a wide commercial potential for important materials and commodities sectors, including food, feed, drugs (pharmaceutical), secondary raw materials, recyclates, agricultural products and seeds.CITATION:Lischka, M, Hollweg, A and Esbensen, K H, 2017. New online/atline splitter designs for laboratory automation – feasibility results, in Proceedings Eighth World Conference on Sampling and Blending , pp 159–166 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 9, 2017

By B Chi, A Mahanta, R A. M Maddever, O Dominguez

BHP Billiton, in collaboration with Sodern and CSIRO, has developed a downhole logging tool for measuring geochemistry in situ. The FastGradeTM 100 (alternatively, FG100), exploits pulsed fast and thermal neutron analysis (PFTNA) to analyse the rock. This method is based on the detection and measurement of characteristic gamma rays emitted from isotopes in the material that become briefly radioactive when they are bombarded with neutrons. The tool outputs raw spectra arising from three types of neutron interaction, namely, inelastic scattering, neutron capture and neutron activation, which occur in successive time-windows (Smith et al, 2015). The spectra contain peaks at specific energies that are characteristic of the different elements interacting with the neutrons, the gamma count of which is related to elemental concentration. BHP Billiton uses in-house data processing software to convert the measured spectra to elemental concentrations.Much work has been done to understand the tool response under a wide variety of environmental and operating conditions, including logging speed, borehole rugosity, the presence of cavities, water etc. Effort has also been directed at understanding and quantifying the current sources of error in our conventional assays due to sample collection, preparation, and laboratory instrumentation in order to use this information as a baseline to compare against the FastGradeTM 100 results.To date, the FastGradeTM 100 primary use has been as a verification tool (JORC, 2012). However, beyond this, it has considerable potential to improve productivity in both exploration and production environments due to its ability to provide geologists with assay results soon after a hole is drilled.This paper presents initial test work and tool performance, including accuracy and precision under various conditions. Results are illustrated by comparing tool measurements to assays from laboratory samples collected from both reverse circulation and diamond-drilled holes.CITATION:Chi, B, Maddever, R A M, Mahanta, A and Dominguez, O, 2017. Near real-time assay with downhole assay tool (FastGrade™ 100), in Proceedings Eighth World Conference on Sampling and Blending , pp 137–144 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 9, 2017

By S C. Dominy

Various styles of gold mineralisation pose problems during sampling because of their complex gold grade distribution and presence of coarse gold. Effective sampling and sample preparation forms the basis of resource estimates. The design of a sampling and assaying protocol must be based on a thorough understanding of the mineralisation in question, which should include consideration of gold particle size and mass distribution. The proportion of coarse gold within samples has a profound effect on the requirements for sample preparation and assaying. Choice of preparation procedure and assay type is of critical importance if sampling errors are to be minimised. Traditional fire assays, using small charge sizes, often understate assays gained from large charge sizes and techniques such as screen fire assay and LeachWELL. Proper application of the Theory of Sampling reduces errors during collection, preparation and assaying. A quality control/quality assurance program must be implemented and critically assessed. A case study from the Ballarat mine is presented, which is characterised by substantial quantities of coarse-gold hosted in quartz veins. Diamond core drilling is the key input into resource delineation. A number of different sampling and assay options have been trialled over the recent project history. The current sampling protocol utilises whole drill core, using LeachWELL assays after logging and photography.CITATION:Dominy, S C, 2017. Sampling coarse gold-bearing mineralisation – developing effective protocols and a case study from the Ballarat mine, Australia, in Proceedings Eighth World Conference on Sampling and Blending , pp 71–84 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 9, 2017

By C Haughy, F F. Pitard

Blue Mountain Minerals is a large supplier of calcium carbonate products used by various manufacturers as a major raw material. Very small amounts of free carbon in the rock can have a huge impact in carbon-sensitive applications. The marble in the deposit at Blue Mountain Minerals contains variable amounts of free carbon in the form of trace amounts of the mineral graphite.To make quality improvements, variography was used to measure the impact of non-ideal sampling practices at the Blue Mountain Minerals operations in Columbia, California in the United States. A major investment in correct sampling systems and sampling protocols was implemented over a one-year period. Subsequent variography was used to measure the improvement on the predictability of the graphite content in marble produced by the quarry and as it is processed as an acceptable raw material for extremely carbon-sensitive applications. The improvements of the sampling protocols, control of long-range changes and better knowledge of process cycles are easily noticeable on variograms when they happen to exist. The economic impacts are discussed.CITATION:Haughy, C and Pitard, F F, 2017. Use of variography to measure improvement of sampling practices for the quality control of graphite consistency in marble used for carbon-sensitive applications, in Proceedings Eighth World Conference on Sampling and Blending , pp 255–260 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 9, 2017

By D A. Vogel

"Sampling may be mandatory for safety or environmental reasons. It may be because the value of a sale needs to be determined or to provide important data for investments. Whatever the reason, an incorrect sample will come at a risk. Only the person that relies on sampling data can imagine what the potential cost of such risk is.Sampling itself has a cost too; the direct cost of a quality control department and indirect cost for interrupting a process, such as stopping a conveyor belt during loading. If all material is the same then only one small sample is enough. But if all the material is different, then a very large sample must be tested; in the conveyor belt scenario it must be stopped very frequently and the associated cost will be high.A good sampling plan finds the proper balance between risk and cost. A good sample must be small enough to handle yet large enough to be representative for what information is required. All good samples have three things in common: there was proper access to the material the sampling tool allowed equal probability of particles being selected nothing was disregarded, everything was included.This too is the core of Gy’s ideal sampling scenario, where all particles have the same probability of being selected and included in the sample. There is risk of bias when part of a lot is excluded from the sample. Extra care is needed when sampling particularly heterogeneous, segregated or layered materials. The sampling tool should never systematically leave out a portion; it shall not push aside large or hard particles. Wet samples shall not stick to the sampling tool. This extends to sample preparation too when reducing particle size and dividing the sample in the process.CITATION:Vogel, D A, 2017. Access, select, include – a review of the commercial sampling of traded bulk commodities in the context of Gy’s Theory of Sampling, in Proceedings Eighth World Conference on Sampling and Blending, pp 367–378 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

May 9, 2017

By T M. El Hajj, A C. Chieregati, M T. G C Marques, J M. Braga Jr, H Delboni Jr

"The estimate and control of sampling errors is essential for all mining operations, especially when dealing with strategic materials, such as niobium. This paper is based on a traditional quality assurance and quality control technique used to confirm mineralised intersection zones, and proposes the validation of sampling data using diamond drill twin holes, in order to evaluate and improve the quality of the current data set. The geological model of the niobium mine – located in Araxá, Minas Gerais, Brazil – was built including 77 diamond drill holes of a sampling campaign carried out during the 1970s. There are few records about the collection and preparation procedures of these past samples, making it difficult to estimate the errors associated with their analytical results. Therefore, 11 twin drill holes were drilled to compare their samples against the samples from the 1970s drilling campaign. The new hole locations were chosen as near as possible to the old holes location. The JORC Code, 2012 edition, relates the use of twin holes as a good sampling technique to assess sampling and assay data. Three parameters were considered to validate the 1970s drill hole campaign by the twin drill hole campaign: the difference of the coordinates between the paired holes the difference among the positions of the geological contacts to validate the geologic description the difference between the paired samples grades was calculated to validate the analytical results.The analysis of the grade range variation between sample pairs was based on three techniques: geostatistical interpretation of vertical semivariogram to obtain the nugget effect calculation of the relative difference between duplicates calculation of the error associated with the sampling protocol established according to Pierre Gy’s Theory of Sampling.The results were satisfactory for hole coordinates; however, the ore content showed a high deviation, although this divergence can be explained by the nugget effect. For the lithological intervals, the new results contributed to an effective identification of variations among lithologies, ie brown weathered ore and saprolite. The twin drill holes campaign successfully validated the geological model data, allowing effective mine planning and higher reliability of the reconciliation results.CITATION:Marques, M T G C, El Hajj, T M, Braga Jr, J M, Chieregati, A C and Delboni Jr, H, 2017. Theory of Sampling and geostatistics for twin drill holes analysis in a niobium mine in Araxá, Brazil, Australia, in Proceedings Eighth World Conference on Sampling and Blending, pp 97–106 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

May 9, 2017

By J Loimi, P Minkkinen, T Korpela

The head loss caused by metallurgical sampling for slurry streams can be reduced by metallurgical sampler design. When the process volumetric flow rate is reduced by vertical static cutters before the sampling by an equal number of moving cutters to the static cutters, the installation requires less installation head space than other sampling arrangements and is easy to accommodate at suitable locations in the process. Low head loss reduces building costs for the processing plant and operational costs during the lifetime of the plant.The presence of a possible systematic bias in the particle size distribution, solids density and elemental composition between an Outotec MSA 2/50 metallurgical slurry sampler sample and MSA 2/50 manually sampled reject have been studied by a customer. The paired samples were taken as simultaneously as possible. The customer evaluated the possible bias using a paired t-test and provided the assay results to Outotec for further evaluation.The results of the paired t-test showed no systematic bias in particle size distribution, solid density or assayed analytes, except in one analyte with low content and a high relative error. The high relative error in one analyte may have been caused by the same calibration model used in a X-ray fluorescence analyser for both high elemental-content concentrate and very low elemental-content tailings samples. The sampled stream is the tailings of a previous process stage.The results of the t-test were studied further using analysis of variance to reveal the error sources in samples. The results showed no bias between the samples collected from the MSA 2/50 reject and composite samples collected of the MSA 2/50 sample stream. The courier online analyser data was also available for evaluation of representativeness to the process stream.The analysis results of the courier online analysis reveals no bias between the MSA 2/50 reject samples, MSA 2/50 sample stream composite samples and online analysis results during the comparative sample collection period.CITATION:Loimi, J, Minkkinen, P and Korpela, T, 2017. Comparative evaluation of manual sampling and Outotec MSA 2/50 metallurgical slurry sampler, in Proceedings Eighth World Conference on Sampling and Blending , pp 167–172 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 9, 2017

By F F. Pitard

The comparison between J Visman and C O Ingamells’ works with P M Gy’s works has been the object of intense debates in the past. Such negative debates inevitably resulted in a loss of many good opportunities. The author’s long experience in applying works of these three authors led to the pragmatic conclusion that it is relatively easy to integrate everything Visman and Ingamells created into the Theory of Sampling; therefore, it is suggested that the compatibility has been vastly overlooked, and a correction for such anomaly is recommended. It is important to emphasise that Visman and Ingamells works may be beneficial and provide relevant, harmonious additions in some areas, and ultimately offer attractive possibilities to sampling practitioners. Such additions may enhance our capabilities to predict sampling difficulties by using a stronger strategy and to design better sampling experiments that would allow us to further understand the heterogeneity of minor constituents, and especially trace constituents. Basically, the suggested integration is essential for sampling trace constituents in the environment, in food, in chemicals and in the pharmaceutical industries.CITATION:Pitard, F F, 2017. Integration of Visman and Ingamells’ works into the Theory of Sampling – a necessity to expand possibilities in sampling practices, in Proceedings Eighth World Conference on Sampling and Blending , pp 55–62 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 9, 2017

By M P. Cipold, J F. Bachmann, C C. Bachmann, J Ha, H B. Wurst

In washability, the objective is to establish the set of maximum possible separation performance criteria for a given mineral feed. The method of choice for this has been the conventional sink–?float analysis. Using traditional sink–float method it is not possible to sample and automatically measure. This fact, as well as time, cost and safety aspects, as well as required and manageable sample size of the sink–float method have prompted the search for a new approach for establishing separation performance criteria. This is especially important as performance levels of separator plants can be maximised if reliable information based on an analysis of washability in conjunction with particle size distribution, elemental constituency becomes available in time. The new method to establish washability and associated performance information utilises at least two measurement technologies concurrently: single energy X-ray transmission and image processing. For porous or very inhomogeneous materials the results can be refined further by using dual energy X-ray transmission and image processing.If used as a standard laboratory device the continuous build-up of the washability curve allows to evaluate the statistical significance of the sample size during measurement.The measuring method can even be improved if it is combined with an automatic sampling system that feeds a continuous and representative particle stream to the analyser. Then the value of the collected data increases considerably since the washability data are additionally available in time to be considered in the control of the process plant. The washability curve can be derived and is continuously updated based on the particles measured during the past time interval. Older curves and results are stored in a database and can be retrieved for later reference. This technology now enables automated sampling and integrated automated measurement, which was previously not possible.This incorporation of an automated washability monitor at a representative sample gives near real-time data that would impinge positively on the profitability of the plant operation. The method was extensively tested using a range of samples with different densities, varying from 1 g/cm3 (coal) to 5 g/cm3 (iron ore).CITATION:Bachmann, C C, Bachmann, J F, Cipold, M P, Wurst, H B and Ha, J, 2017. Inline analysis of washability parameters for process control, in Proceedings Eighth World Conference on Sampling and Blending , pp 213–218 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 9, 2017

By L O. Filippov, Q Dehaine

Variographic analysis, a classical tool from the Theory of Sampling (TOS), can address practical situations with multiple variables; however, its application has very often been limited to one variable at a time. Recent developments have shown the benefits of using multivariate approaches for variographic characterisation of a set of variables instead of considering individual variables sequentially. Among these approaches, the multivariogram has been revealed itself to be a powerful tool when the overall time-variability of a process must be summarised in terms of a large set of properties (variables) to assess its true global variability. However, even when choosing the properties of interest carefully, the resulting global variance obtained with this approach may be very high. In particular, some variables that contribute to a major proportion of the global (multivariate) variability could be less important for the process performance than others having a lower variability. To address this issue, a new approach is proposed, combining the multivariogram with process modelling and multivariate data analysis methods such as partial least squares (PLS) regression from chemometrics. An example from the mineral processing industry is presented, for which the process performance could be linked to key process variables (sensor data) using the PLS regression. Once introduced in the multivariogram equation, PLS model parameters (loading-weights or regression coefficients) can be used to weigh the variables according to their relevance for the process. In addition, this also permits characterisation of process performance variability with time using only the process input variables and a weighted metric according to the PLS regression model. Ultimately, this method helps to find an optimised sampling procedure in terms of frequency, sampling mode and number of increments according to the actual overall process performance. This approach has potentially many applications in the mining, feed and food, pharmaceutical or any other industry for which it can be used to reduce risks and ensure a better use and management of resources.CITATION:Dehaine, Q, Filippov, L O and Glass, H J, 2017. Optimising multivariate variographic analysis with information from multivariate process data modelling (partial least squares regression), in Proceedings Eighth World Conference on Sampling and Blending , pp 381–390 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 9, 2017

By I Clark, S C. Dominy

Bulk sampling programs are typically applied in coarse gold mineralised systems to verify resource/reserve grades. In recent years, there have been controversies surrounding some results of underground bulk sampling exercises compared to the predictions using diamond drill data. Just how realistic is it to predict 100 t lots from drilling that was designed to model blocks of several thousand tonnes? This study looks at the variation of relatively small units within larger planned mining units and compares some of the geostatistical techniques which purport to provide tools for such studies. Relative difficulty of application, computer timings and summaries of results will be used to illustrate the likely variation in bulk sampling units as opposed to mining units and large-scale planning units. A case study based on publicly available data from a gold project in North America is presented. A simplistic and unconditional geostatistical simulation model demonstrated that up to 50 per cent of a relatively high-grade mining block could show as uneconomic low-grade subblocks. A subsequent study will consider a similar demonstration using uniform conditioning. Erroneous impressions of early sampling results can lead to unsupported prejudgements of the final results. Bulk sampling programs require detailed planning based on ore characteristics, where protocols must fit the mineralisation type. Any program requires definition of aims and data quality objectives across grade, geological, geotechnical and geometallurgical parameters.CITATION:Clark, I and Dominy, S C, 2017. Underground bulk sampling, uniform conditioning and conditional simulation – unrealistic expectations?, in Proceedings Eighth World Conference on Sampling and Blending , pp 3–20 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 9, 2017

By K H. Esbensen

The Theory of Sampling (TOS) has made remarkable strides and has witnessed a suite of achievements over its ~65-year history; especially in the last 15 years, since organised work began for the erstwhile fragmented sampling community (2003). Theory and practice have been very well exposed and disseminated, as witnessed in the successful series of the World Conference on Sampling and Blending (WCSB) events and other dedicated sampling and mining conferences in Australia and South Africa. At this WCSB8 occasion we fittingly devote a section of our conference to celebrate the life and monumental achievement of Pierre Gy, the originator of the Theory of Sampling; a special issue of TOS Forum was recently published to the same purpose. But TOS is most emphatically not a finished work.Here I try to look into the future with a personal view: TOS – what’s next? Commensurate with this objective there is offered some out-of-the-box thinking. The purpose is to try to zoom in on probable additional future aspects of TOS and its application compared to the first 15 years of our common journey. There are bound to be lacunae here-and-there across the vast application horizon delineated, which is as it should be, as this lecture is meant to initiate a broad(er) debate – and readers may agree with all, parts, or none of the topics presented. All is well that furthers this debate.CITATION:Esbensen, K H, 2017. Theory of Sampling – what’s next?, in Proceedings Eighth World Conference on Sampling and Blending , pp 29–38 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 9, 2017

By Chee Theng

"In 2013, Coeur Mining had more than $55 million in general and administrative (G&A) costs and less than $100 million in cash flow. This year, its G&A costs stand at $30 million, down by more than 40 percent, its all-in sustaining costs have shrunk by more than 30 percent, and its cash flow is above $200 million. To realize this, the company aggressively reduced both its corporate overhead cost and operating cost and repaid more than $300 million in debt.The more robust balance sheet meant the precious-metals producer was well positioned to reap the rewards of an upsurge in commodity prices in the early part of 2016. Its stock price soared from $1.75 in January to $15.98 in August. Although the stock price has since dropped to around $9 due to a stronger dollar and a more hawkish Federal Reserve that recently raised U.S. interest rates, shifting the opportunity-cost argument away from buying gold and silver, Coeur remains attractive to analysts in light of its prudent spending and improved fundamentals.Focus on balanced portfolioCoeur is the largest primary silver producer and one of the largest gold-producing companies in the United States and one of the largest silver companies in the world. Incorporated in 1928, the U.S.-listed company has a total of five operations: three in the United States, one in Mexico and one in Bolivia. About two-thirds of its revenue comes from the United States.The company is conscientious about having a balanced portfolio, so no single mine accounts for more than about 30 percent of its business. Being in three different jurisdictions provides further diversification, and its revenue split of about 60 percent from gold and 40 percent from silver gives it some metals mix. This year, it expects to produce about 466 t (15 million oz) of silver and 10.3 t (330,000 oz) of gold."

Feb 1, 2017

By Venancio Astucuri

"El presente texto describe las cuatro competencias que debe poseer un ingenierio de minas para un desarrollo sostenible de la minería. Dichas competencias se dividen en personales, académicas, profesionales y de ingeniería. Este grupo de competencias pueden ser usados también para un proceso de autoevaluación, donde cada uno pueda medir sus competencias con el fin de determinar brechas y superarlas, de forma que las empresas puedan plantear requisitos mínimos para sus diferentes posiciones laborales y, finalmente, para que en las instituciones educativas, estos puedan diseñar de forma adecuada sus respectivos planes de estudio."

Feb 1, 2017

By Nate Ober, Heath Rushing

"Mining companies want to be in a position to move quickly and seize a favorable market or to keep their key staff productively busy. One of the problems for these companies is the time required to compensate for unavoidable impacts that the mine will have on the natural environment and to gain environmental permits. All too often, circumstances that were favorable when the project was proposed have become less favorable by the time all the hurdles have been cleared.Accordingly, many mining companies are interested in ways they can inject more predictability into their timelines for gaining environmental permits, shorten those timelines, and be more certain of getting the permits they need to carry out their next project.One increasingly popular way to do this is through a relatively new kind of service — the mitigation bank.Mitigation banks purchase property or easements through property that has been impacted by agricultural, industrial or resource activity. They then turn it around from an environmental point of view. This might include restoring streams and wetlands so that fish and aquatic organisms can survive, and animals have habitat and food to flourish.Appropriate native species of plants including trees and shrubs are planted, and steps may be taken to introduce wildlife to the new habitat. In some cases, a special focus is placed on creating habitat for rare and endangered species of plants or animals.The property is inspected by regulatory authorities, coordinated through an interagency review team (IRT). If the property is determined to be effective as natural habitat, the mitigation bank is then issued credits that it can then sell to development projects that are creating an unavoidable permitted environmental impact elsewhere. A mining company, for example, would buy credits to offset the aquatic impacts due to construction of a mine, access roads and other infrastructure — as required by the Section 404 Clean Water Act permit that governs those unavoidable aquatic impacts. The mitigation bank used for offset must have an IRT-approved service area that includes the location of the impacts."

Jan 11, 2017

By William Gleason

"With desert temperatures climbing high at Caterpillar’s Tinaja Hills Demonstration and Learning Center near Tucson, AZ in September, a group of editors were given a reprieve from the sun and stepped inside the new Cat Minestar Command Center. The movie theater-like temperatures inside were a welcome relief, and the computer screens stationed around the room were an indication of not just how much things have evolved in the mining equipment sector, but also a peek into the future of where mining is headed.Equipment manufacturers like Caterpillar have always had to deal with peaks and valleys in demand that come with mining, perhaps never more so than in the last five years. Sudhanshu Singh, global product manager for Caterpillar, said that in one month in 2012, at the height of the mining Super Cycle, Caterpillar produced more than 150 large mining trucks (haul trucks that carry 136 t/150 st or more). By contrast, Caterpillar produced about 80 of those trucks in the full year of 2016. Between 2012 and 2016, Caterpillar saw its profits drop by 40 percent.“This shows how cyclical the industry is, and it is a testament to the strength of Caterpillar to be able to tolerate the wide swings,” said Singh. Demand for commodities is once again on the rise as are commodity prices with many signs pointing toward a recovery for the mining sector, and Caterpillar has positioned itself for the recovery. During its 2017 press event in September, company officials emphasized that Caterpillar has added strength in its technology divisions by forming new partnerships and adjusting its operating plan.“At the heart of our enterprise strategy is the operating & execution (O&E) model, a strategic framework to identify areas of the business that either create or consume the most value,” said Caterpillar chief executive officer, Jim Umpleby. “Using the O&E model as a guide, we gain a deeper understanding of where we have a competitive advantage, which is key to generating high returns.”"

Jan 11, 2017

By Douglas B. Silver

"Editor’s note: Douglas B. Silver, Portfolio Manager, Orion Resource Partners, was the keynote speaker at the 2017 SME Annual Conference & Expo in Denver, CO on Feb. 19, 2017. He also gave the keynote address to the SME Annual Conference in 2008. The following is his 2017 keynote address with a few of the slides that were presented. The full speech is available on YouTube https://www.youtube. com/watch?v=uF0qwGJIX3UIn 2008, I had the privilege of giving SME’s keynote address. At that time the financial markets were on the verge of collapse and my presentation described the issues. Unfortunately I was correct, and global markets went into a steep nosedive, creating the largest economic downturn since the Great Depression.In hindsight, there were plenty of signs that this was coming. The Supercycle had created massive new wealth. This wealth was largely invested in the United States due to the country’s political stability and credit worthiness. In 2004, the large investment banks convinced the U.S. Securities Exchange Commission (SEC) to allow them to triple their borrowing leverage ratios. This made the banks more vulnerable to market volatility. The banks then lent money to NINJAS - people with no income, no job and no assets. Even worse was the fact that these unqualified home owners used adjusted-rate mortgages (ARMs) which they, of course, intended to refinance prior to interest rates rising. These mortgages were then bundled up by the banks and sold to investors as “safe” investment products. The money flowed into these products because the rating agencies gave these instruments high marks. These same agencies earned their fees from the very same banks seeking high ratings. (No conflict there). Private debt exploded and peaked out in 2008.These mortgage products were sold in an unregulated shadow banking system and the ARMs came due. Toxic mortgage default rates skyrocketed and the mortgage-backed securities collapsed in value. This house of cards had a negative feedback loop that accelerated the market crash and resulted in more than $1.5 trillion being lost in the securitization sector, a 47 percent decline in the Dow Jones Industrial Average, foreclosure rates skyrocketing and housing prices collapsing. The financial markets were in a nosedive."

Jan 8, 2017

By Jack Bedder

"Editor’s note: We would like to thank those who make this annual issue possible. A special thank you goes out to the industrial minerals annual review editor, to the Industrial Minerals & Aggregates Division Technical Committee chair and vice chairs, and to the authors of the individual commodity profiles.Jim Norman, member SME, of Tetra Tech, is the industrial minerals annual review editor.Ebrahim K. Tarshizi, member SME, of Michigan Tech, is chair of the Industrial Minerals &Aggregates Division’s Technical Committee.The technical committee vice chairs include: • Hyunjung Kim, member SME, of Chonbuk National University, agricultural materials.• Xihui Yin, member SME, of Kemira, ceramics and refractory materials.• Nikhil Gupta, member SME, of Virginia Tech, chemical raw materials.• Jasson Giddens and Swadhin Saurabh, members SME, of Oil Dri Corp of America and Mill Creek Engineering, respectively, chemical raw materials.• Snehamoy Chatterjee, member SME, of the Michigan Tech.• LeDeana Roberts and Shubham Verma, members SME, of Imerys and U.S. Oil Sands, respectively, fillers and pigments.• Thomas Hilderbrand and Kaiwu Huang, members SME, of Thiele Kaolin Co. and Virginia Tech, respectively, sorbents, filters and process aids.• Rhaghav Dubey and Edgar Blanco, members SME, of Outotec and FL Smidth, respectively, specialty mineralsAntimony generally occurs along with gold, lead, copper and silver. There are more than 100 antimony minerals, although the sulfide mineral stibnite is the main one.Antimony enters the supply chain either as a result of mining (primary production) or recycling (secondary production). China has by far the largest antimony resources and is, as a result, the world’s center for antimony mine production. In 2016, it accounted for more than three quarters of the global mine supply out of a world production figure of 130 kt (143,000 st), according to the U.S. Geological Survey. The biggest, and most high-grade deposits are found in southern China, with the largest mines located in Hunan, Guangxi and Yunnan provinces. Tajikistan, Russia, Australia and Bolivia are the largest mine producers outside China. A new antimony project in Oman made progress in 2016, producing first metal in April 2016 in test facilities, and then ordered three furnaces for a 26 kt/a (28,600 stpy) antimony metal and oxide smelter that is due on stream in late 2017.Antimony ingot production is not as widespread as is antimony mine production, owing to the high levels of pollution that are associated with antimony smelting. It is for this reason that smelting has been largely confined to China and other Asian countries, where environmental legislation is less stringent.Antimony oxide production is undertaken on four continents with China being the biggest producer. There is also a considerable amount of oxide production in Europe — which relies on imported feedstock, mostly from China. Antimony also enters the supply chain through recycling. Lead containing antimony is produced in a number of countries, mainly in secondary lead smelters. Typically, a blast furnace charge containing used or discarded battery plates, type metal or bearing metal is reduced to lead bullion, which is refined in reverberatory furnaces and melting pots. In the main, the antimony recovered is consumed in metallurgical applications. China was the biggest secondary antimony producer in 2016, and accounted for 25 retardants and lead-acid batteries. Flame retardants accounted for roughly 50 percent of consumption in 2016 with batteries representing about 25 percent. Other end uses include plastics and heat stabilizers, ceramics and glass and a variety of metallurgical applications. Demand has been sluggish since the global financial crisis, mostly because key markets failed to recover strongly from the downturn, particularly in Europe."

Jan 7, 2017