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By Michael Rieber

Mineral economics interfaces the mineral sciences and engineering with finance and economics in the analysis of appropriate questions facing the minerals and energy industries. Its practitioners include those trained in the earth sciences; mining, petroleum, and geological engineering; metallurgy and mineral preparation; as well as finance, information systems, economics, and statistics-most usefully in one or more combinations. Allowing for some overlap, three general areas may be identified: evaluation, economic analysis, and resource appraisal. Evaluation begins with mine investment analysis (exemplified by Gentry and O'Neil, 1984) and process costing, for which the STRAMM Handbook (Anon., 1977) provides a well-known basis for mining and beneficiation. But it extends from property appraisal, often used for the determination of taxes and royalties, through the determination and comparison of transport costs (e.g., Richer and Soo, 1977), and to benefit/cost analyses of externalities. Economic analysis, the subject of this section, is displayed in rigor and extent both theoretically and as applied to commodity classes in Vogely (1985), but it is implicit though apparent throughout Lefond (1983). The text edited by Vogely places minerals in their aggregative context with economic growth and trade, proceeds to the theoretical analysis of minerals and their markets, analyzes the structure and performance of the major mineral sectors, and concludes with policy issues: fuel, nonfuel, and environmental. Resource appraisal employs quantitative methods for the estimation of mineral and energy resources. It moves through geologic, geophysical, and geochemical properties to the identification of estimation procedures for mineral endowment and for the economic measure of stocks and flows of specific minerals (Harris, 1984). It can be used to estimate the probable amount of a specific resource remaining in a given region and has been used to project sites in a specific

Jan 1, 2008

By G. Velarde

This paper presents the metallurgical results of column and stockpile leach tests with forced aeration to determine the usefulness of this process in the operational leaching at Sociedad Minera Cerro Verde S.A.A. The evolution of the aeration system is presented and also an innovative solution developed to overcome forced aeration’s main problem, which is the early obstruction of the aeration pipes located at the base of the stockpile, causing a decrease in air and oxygen levels and therefore a reduction in the metallurgical benefits.

Jan 1, 2006

On June 4, Kennecott Utah Copper (KUC)marked the centennial of the founding of the original company. Bill Champion is president and chief executive officer of KUC. He said, “What has happened during the past 100 years far surpassed even the most optimistic visions of men like Daniel C. Jackling and Robert Gemmell when they promoted the concept of mass production techniques for a low-grade deposit of copper ore. At that time, it was a totally new way of doing things and the mining leaders of that day scoffed at the idea. They said it would never work,” Champion said. The company will celebrate this once-in-a-lifetime occasion with a few special projects, mainly for the benefit of our employees, said Louie Cononelos, director of government and public affairs for KUC. The company has designed and minted a commemorative copper coin that reflects early steam shovel and locomotive operations on one side, and today’s modern electric shovels and huge haulage trucks on the other side. “The history of the company stems from the ores of the Bingham Canyon Mine. That coin has been encased as part of a10-panel brochure that captures the company’s 100 year history,” he said. KUC also developed special centennial banners and comparable framed posters that were displayed throughout its operations and at selected community locations that have enjoyed a long-time partnership and special relationship with the company. Some of the plants also designed their own centennial hardhat decals.

Jan 1, 2003

By P. K. Chatterjee, G. D. Just

Sublevel open stoping is a low-cost method that has been successfully employed in many large underground mining operations. Where ore body characteristics are suitable, extensive mechanization and the use of large-scale stoping techniques can considerably reduce operating costs. However, careful long-term planning of mine layouts and large capital commitments in development are required prior to production. Implementing precise mine design procedures and carefully controlling operations can result in considerable benefits. This article describes methods to achieve these objectives based largely on mining operations at Mount Isa, where sublevel open stoping has been used since 1932. Ore won by this method accounted for a very large percentage of the total tonnage produced at Mount Isa. Major costs associated with sublevel open stoping can be classified as drilling, explosives and charging, and LHD costs. In this article, analyses of these costs are made with particular reference to stope design. Parameters such as burden, drill hole diameter, explosive density, specific charge, etc., are considered in establishing the interrelationship of unit operating costs, as well as total costs of sublevel open stoping.

Jan 10, 1981

By C. C. Clark, P. W. Patton, B. M. Stewart

Handling materials in underground mines continues to be a major safety problem. To help reduce materials-handling injuries, researchers at the Spokane Research Laboratory of the National Institute for Occupational Safety and Health are investigating those materials-handling tasks in underground mines that appear to generate a high number of injuries. Data from the Mine Safety and Health Administration for the years 1989-1999 were studied to find out if there were any trends in materials-handling accidents and if so, to determine what tasks were involved and the sources of injuries. Several underground coal and metal mines were visited to document innovative materials-handling technologies. Considerations for safety training and mechanization needs for continued reduction in materials-handling injuries are described.

Jan 1, 2002

By Alan K. Burton

Massive increases in the productive capability of open pit nines after World. War II were in a large part made possible by the introduction of ever larger trucks and the supply of a seemingly bottomless ocean of inexpensive and readily accessible oil. Over a period of about 25 years, a variety of technological developments permitted a tenfold truck payload increase, from about 32 tonnes (35 tons) to 320 tonnes (350 tons). There is no, doubt that this was a remarkable achievement resulting in impressive benefits of scale as well as the ability to control what would otherwise have become an intolerable traffic congestion problem in today's large open pit mines. It became fashionable and economically possible during this time to mine large quantities of low grade material and to tolerate very high stripping ratios. As tine has gone by and as easier to get at and higher grade deposits have been depleted, ore grades have tended to decline while stripping ratios have increased. The alternative to reduced revenues has been an ever increasing demand to step up production which in turn has led to a continuing demand for ever larger and larger trucks. While a larger truck has had the effect of reducing the cost of the operator per unit of material moved and of reducing traffic congestion, it has not specifically addressed the subject of fuel cost.

Jan 1, 1981

By S. Asokan, D. Rathod, Ch. V. G. K. Murty

Tata Steel, a steel arm of Tata Group, is Asia's first and India's largest integrated private sector steel company. Tata Steel’s turnover in fiscal 2004-05 was nearly US$ 3.25 billion. As part of its vision to grow in related industries, Tata Steel is poised to enter the Titania businesses in the Indian state of Tamil Nadu. The Titania project will involve mining, separation of ilmenite & other co-minerals, beneficiation of ilmenite to synthetic Rutile and further maximum value addition to Titanium metal. This paper outlines the journey from the concept to current findings of the Bankable Feasibility Study in developing Sattankulam Heavy Mineral Sands Deposits in the State of Tamil Nadu, India by Tata Steel.

Jan 1, 2005

By Garry Keizer

The Cortez gold mine is located in Lander County, NR, about 130 km (80 miles) southwest of Elko. Cortez Gold Mines (CGM) is a joint venture between Placer Dome US Inc. (60% operator) and Kennecott Corp. (40%). The claims that supply oxide and refractory ore feed to the Cortez milling facility are located in both Lander and Eureka counties. These include the Cortez and Horse Canyon deposits, all operated by the joint venture. Other deposits outside the CGM claim area include Fire Creek, Buckhorn, Gold Bar and Tonkin Springs. These deposits all occur along the Battle Mountain-Eureka Trend. History Mining in the Cortez district began in 1862 with the discovery of high-grade silver ores. Grades in the hundreds of ounces per ton occurred in an area 7 km (4.5 miles) southeast of the current CGM mill site. Underground mining through the Garrison and Arctic tunnels provided the bulk of the ore production between 1864 and 1895. To a lesser extent, the Mill Canyon area also supplied ore until 1930.

Jan 1, 1993

By F. Mielli

Camera systems and video surveillance are usually associated with people and asset protection. However, they can be applied in a mine environment beyond conventional surveillance: For process monitoring, collision avoidance, sizing, flotation cells, conveying systems, blasting, objects and people tracking, thermal profile, and to automatically identify equipment that is missing parts,. Image and video solutions can be driven by better integration of powerful video analytics and cameras systems in automation tools such as process controllers and supervision systems.

Feb 27, 2013

By J. E. Urosek

Decisions made during a response to a mine fire or an explosion greatly affect the final outcome. The safety of miners should be the primary concern with accounting for all of the miners the first issue for resolution. If miners have not safely evacuated from the mine, the last known location of the miners at the time of the event and anticipated travel routes are primary exploration areas. After the mine is evacuated, there are many very important decisions that must be made quickly and often under great stress. It is critical that the mine operator establish an orderly method to direct the mine emergency response. Designation of a Command Center, staffed with personnel charged with developing plans, is a common method of establishing control. Scheduling of key mine managers will be critical, since decisions must be made 24 hours a day and people working for extended periods with little or no sleep do not always make clear or cognizant decisions. Internal communications, passing information on to subsequent shifts, and external communications with families and media must be accurate and timely. Assembling resources for responding to the mine emergency is critical for an effective response, and pre-planning can pave the way to a successful recovery. Sampling mine gasses and accurately determining the composition of gas mixtures is a common tool used to develop response plans in all fires and explosions. It is essential that preparations for emergency situations are made well in advance of a disaster. Effective communications are essential for mine management to successfully respond to a mine emergency. This paper discusses some considerations which need to be addressed in directing a response to a mine fire or explosion.

Jan 1, 2009

Introduction The science of geometallurgy requires that ore characterization be performed holistically, that is, with consideration of ore quality on plant performance and product quality. Geometallurgy, by definition, requires knowledge of geology, mineralogy, extractive metallurgy and pyrometallurgy. Examples of the ore characterization challenges for the geometallurgist in the production of iron ore pellets from low-grade Proterozoic iron formation are presented here. Ore Characterization Ore characterization, the quantifying of mineralogy, grain size and the texture of ores, is an often overlooked tool in improving process efficiency. Some mineral related problems are not unique to the production of iron ore pellets; e.g. the problems caused by expanding clays in flotation. The negative impact of carbonate minerals in the ore on pellet productivity and pellet quality are unique. The long and complex geologic history of Precambrian iron formations contribute to modifications of grain size and the introduction of complex textures.

Jan 1, 2007

By Jr. Kermit Allen

A study was conducted for the AEC to determine the feasibility of constructing an unsupported 315 foot diameter spherical cavity at a depth of 2,700 feet in a salt dome. A cavity of this size and shape has never been attempted. It was determined that the three basic essentials for solution mining; adequate salt, fresh water, and a means of brine disposal were available at the Tatum Salt Dome in Lamar County, Mississippi. Assuming a large, unsupported mined opening of the size and at the depth required would remain stable, the most practical method of providing the cavity using solution mining techniques is by use of a movable blanket of air to control the water level to properly shape the cavity while removing the insolubles either with jetting or by conventional mining methods. It is estimated that, using the jetting method of insolubles removal, the cavity can be constructed in 24 months for approximately $7 million. Using conventional mining techniques to remove the insolubles and shape the final cavity, it is estimated that the cavity can be constructed in 36 months for approximately $12.6 million.

Jan 1, 1968

By S. Hardcastle

Tele-remote operation of production equipment from surface will change the design criteria for underground mines. And for ventilation, with machine operators on surface, conventional planning to dilute and remove pollutants can become redundant. Natural Resources Canada with industrial partners are investigating what will be the new environmental design criteria. Additional complications include new mining equipment being designed without standard services and mines’ desire to eliminate conventional auxiliary ventilation. Findings to date show the cooling of equipment’s hydraulic systems to be the most demanding element, especially in dead-ends and when stationary. Consequently, revised ventilation based heat control strategies for equipment are being developed for the automated mine of the future.

Jan 1, 2001

By W. G. Pariseau

This contribution describes rock mechanics features of the Davis Cavern at the former Homestake Mine in Lead, South Dakota, U.S.A. The mine is located in the northern Black Hills of South Dakota. In 2003 and again in 2008, the mine site was recommended for development as a national Deep Underground Science and Engineering Laboratory (DUSEL) in cooperation with the Sanford Underground Science and Engineering Laboratory under the South Dakota Science and Technology Authority (SDSTA). The original Davis Cavern was excavated about 9.1x16.8x9.7 m high (30x55x32 ft high) in 1965 (Mitchell 2009) at a depth of 1,478 m (4850 ft). The purpose of the cavern was to house apparatus for detecting solar neutrinos. The experiment ultimately proved successful and earned R. Davis a share of the 2002 Nobel Prize in physics. Recently, a new experiment (LUX=Large Underground Xenon detector for dark matter particles and WIMP's=weakly interacting massive particles) was proposed for the Davis Cavern that required an increase in height of 2.4 m (8 ft). For many years, the Homestake gold mine was the deepest operating mine in North America. Development extended to the 8000 Level (2,438 m). The mine closed in 2003. Pumps were shut off and the water level rose to the 4350 Level, about 150 m (500 ft) above the Davis Cavern. Some six years later after selection for DUSEL proposal development by the National Science Foundation (NSF), access to the 4850 Level and the Davis Cavern was regained. Pumping has lowered the water level to well below the cavern floor. Figure 1 shows the layout and location of the Davis Cavern (Cavity). Detector tank, supporting steel, and so forth were subsequently removed. The cavern was re-supported and new access was developed. By August, 2010, 13,000 ft3 had been removed during enlargement and renovation of the Davis Cavern. Figure 2 shows the detector tank under construction in 1965.

Jan 1, 2012

By C. Roos

Traditionally within the mining industry, the main functional process flow for resource and reserve evaluation proceeds from geologists who build the geological model, to resource estimation geologists (modelers) who estimate the grades, to mining engineers who develop the mine design and schedule. The interface between these three disciplines is not always seamless. Assumptions made during one stage of the process are not always communicated down the line, even though most mining companies have procedures in place to encourage communication across the various disciplines. These procedures do not always achieve their aim due to a variety of reasons including time constraints, appropriate people not being available, or a lack of understanding of what other disciplines require, and the handover process can degenerate into one of sending computer files on to the next discipline in the process flow. This paper focuses on the interface between the resource estimation and mine engineering disciplines, and outlines some of the common assumptions made when generating a resource model and the risks that engineers may be taking when elevating cutoff grades, optimizing schedules or generating forecasts. The case studies presented focus on openpit gold deposits, but the concepts should be applicable throughout the industry. A summary of key questions and recommendations is provided.

Jan 1, 2014

By Gregg Davidson, Lonnie Jacobs, Brett Zernich, Alan Howard, Robert Pintabona

All Rights Reserved. Printed in the United States of America. Information contained in this work has been obtained by SME, Inc. from sources believed to be reliable. However, neither SME nor its authors guarantee the accuracy or completeness of any information published herein, and neither SME nor its authors shall be responsible for any errors, omissions, or damages arising out of use of this information. This work is published with the understanding that SME and its authors are supplying information but are not attempting to render engineering or other professional services. If such services are required, the assistance of an appropriate professional should be sought. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Any statement or views presented here are those of the authors and are not necessarily those of SME. The mention of trade names for commercial products does not imply the approval or endorsement of SME.

Dec 1, 2014

By Thomas D. Kaufmann

Introduction What drives the price of gold? Supply and demand, of course. But in ways far different from the forces that drive the prices of other major metals, such as steel, aluminum, and copper. Gold, in fact, is one of the few commodities where both buyers and sellers are happy when the price goes up. Current production, production costs, and variations in production have little influence on its price. Gold inventories are so tremendous that current production has small impact on the amounts available to the market at any time. Worldwide gold inventory and production The world's inventories seem to be between 78 and 98 kt (2.5 and 3 billion oz). Since biblical times, the gold miners of the world have produced about 98 kt (3 billion oz), mostly in this century. Only small amounts have been thrown away and most of it - more than 78 kt (2.5 billion oz) - remain in bullion, coins, or jewelry. About 40% is held by central banks and other governmental authorities, 30% by private individuals as bullion or coins, and about 30% as jewelry. Except for some of the jewelry and the few industrial applications, this inventory is constantly available in marketable form at a price. By comparison, gold production is indeed small. The US Bureau of Mines estimates that the world produced 1.5 kt (50 million oz) of gold in 1986. Consequently, production increased world inventories by only 2%. Variations in production have a negligible or very short-term effect on the supply and, consequently, on the markets for gold. Although South Africa mines about 40% to 50% of the world's annual production, continuing labor strife there does not seem to have ruffled gold prices. Determining gold's price Gold prices, however, do determine cutoff grades in the mines and, thus, do influence production. Nonetheless, changes in production have little impact on the inventory supply. Consequently, it has small influence on the price of gold on the market. With a fairly stable supply, price changes are driven by changes in its demand. Unlike other metals, very little of the demand for gold comes from industry. Dental, electronic, and other industrial uses for gold consume less than 46.6 t/a (1.5 million oz per year). It would be safe to assume that such uses are less than 124 t/a (4 million oz per year) for the entire world. Variations in the 124 t (4 million oz), compared to a supply of 78 kt (2.5 billion oz) of supply can have only a negligible effect. Production net of industrial uses adds perhaps 1% annually to world inventories. This could, in time, affect markets. The increase, however, is mostly absorbed by population growth - more people wanting to own gold - and by gold being put in more attractive forms, such as coins. As an ancient Lydian king discovered, minting bullion permits

Jan 9, 1987

By Paul Zick

The Port Authority of Allegheny County North Shore Connector (NSC) Project involves TBM excavation of twin 690 m (2,240 lf) precast segment lined light rail tunnels through soil and rock under the Allegheny River and a narrow, downtown city street. The $435 M project is funded 80% ($348 M) by the Federal Government, 17% ($72.5 M) by the State of Pennsylvania and 3% ($14.5 M) by Allegheny County. Along the tunnel alignment are a historic building on shallow foundations, modern buildings on deep foundations, and one building constructed directly over the alignment. The project includes construction of twin 369 m (1200 lf) cut and cover concrete box tunnels and an underground station shell. This paper provides an overview of general site conditions, current project status and construction challenges for the Twin Tunnels and North Shore Light Rail Station.

By S. Garcia, J. Gebhardt, D. McBride, A. Hernandez, A. Esplín, M. Cross

The Minera Yanacocha operation consists of several heaps interconnected with ponds and gold recovery plants and presents various operating challenges. A comprehensive process model has been developed in order to better understand the effects of certain operating parameters and inventory issues. An integral component of the process water/mass balance is a model of each heap that describes heap behavior based on the individual characteristics of the heap. The heap models are linked to a mass balancing program in order to track flows and concentrations throughout the circuit. A case study of the process heap model is presented for the La Quinua heap, including results for the normal base line operation and several operational problems such as loss of solution flow to the heap (i.e., pump failure), increased flow to a section of the heap (i.e., pond volume control), effect of significant rain events, and impact of a change in material properties (i.e., change in ore type). The impact on heap operating efficiency is discussed with regard to effects on recovery and gold solution grades.

Jan 1, 2007

By S. C. Sun

Pennsylvania has ample reserves of high-alumina clays which are potential sources of alumina, but many of these clays contain large amounts of iron, which makes them unsuitable for treatment by acid processes(1). The purpose of this investigation was to determine the optimum conditions for the selective hydrochloric acid leaching of iron (2-4) prior to the sulfuric acid extraction of alumina from Pennsylvania ferruginous high-alumina clays. This was accomplished by first testing the iron-bearing minerals and the clay minerals most often encountered in Pennsylvania clays to determine their rate of dissolution in hydrochloric acid solutions. The results of individual minerals were then based for leaching Pennsylvania clays with a 19% hydrochloric acid solution at the boiling point of the acid for approximately 30 minutes to achieve as high as 90% iron removal and only 2-5% alumina losses.

Jan 1, 1968