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By Steve Kral

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

Jan 1, 1999

By Donald W. Gentry

Introduction The mining industry is perhaps best characterized by the numerous and abnormally high risks associated with the business of mining and by its most basic assets - ore deposits, people and technology. At the most fundamental level, it is the quality and effective utilization of these basic assets that determine a mining company's ability to compete efficiently in the international market place. The gold industry has received much attention in recent years and especially in recent months, for good reason. This commodity serves as an excellent platform for the subsequent discussion of these three basic assets and their role in mining's future. Facets of the gold industry The fate of this noble metal in recent times illustrates some of the various risks associated with the mining industry and the importance of high-quality assets, whether they be ore deposits, people or technologies. The following comments pertaining to the gold industry help place proper focus on subsequent discussions. All monetary amounts given are in US dollars. Throughout 1997, falling gold prices broke record after record: first hitting three-year lows, then a 12-year low in July and finally an 18-year low at year's end. From Jan. 1 through Dec. 31, 1997, the price of gold fell by more than $2.57/g ($80/oz), or some 22%. The decline in gold-mining profitability and stock prices was even more dramatic. At the beginning of 1997, the 20 largest gold producers in North America had a market capitalization of approximately $44.5 billion. At year's end, this market cap had fallen to $26.2 billion, a reduction of 41%. The total market cap of all the world's gold companies fell from $71 billion to $46 billion, a 35% drop (Serwer, 1998). Analyses suggest that, at a spot gold price of $9.65/g ($300/oz), only one, or possibly two, North American gold-producing companies can make money when break-even or "total costs of production" are considered. While strong hedge positions mitigate this situation in the short term, clearly, this is an industry in desperate straits. For example, write-downs for North American producers in 1997 were approximately $2.5 billion. Speculative short positions in 1997 were near historical record highs and generally exceeded long positions by factors of 9:1 or 10:1. Much of this is driven by some US commercial banks, hedge fund managers and commodity speculators who can significantly move gold prices sharply over short periods of time by selling gold they do not own in the expectation they can buy it back at a lower price before they have to deliver. These signifcant short positions are likely to continue as long as central banks are willing to sell or loan gold to financial institutions that in turn make the gold available to speculators who hope to capitalize on price fluctuations. The Far East accounts for approximately 26% of the annual demand for gold. Including India, the region accounts for 43% of total demand. More than 85% of the physical demand for gold is for investment jewelry in Asia and the Middle East. This demand is extraordinarily price sensitive. The fairly recent turmoil in Asian markets and economies, combined with currency devaluations throughout the region, have made gold more expensive (30% to 50% in local currencies) for those peoples most likely to treat gold as a safe investment haven. Higher interest rates also have reduced the amount of money they have to spend on consumer goods such as jewelry. All of these recent Asian events are deflationary in nature. Deflation, if coincident with rising unemployment, could result in significant dishoarding of gold. There is one key fact to remember when analyzing

Jan 1, 1999

By Bruce D. Hansen

For many years, Newmont has focused on improving its operations. After the merger between Newmont and Santa Fe Pacific Gold, Newmont created synergies of more than $50 million a year in Nevada. This was done primarily through optimal ore movements and consolidation of various functions. During the current period of low gold and copper prices, Newmont has refocused its efforts on efficient operations worldwide. At its mine facilities in Nevada, Newmont has used a combination of several strategies to decrease the costs of operations and to increase profitability. These include computer technology, optimal use of infrastructures, procurement strategies, functional consolidation, enhanced mine planning and several available metallurgical processing options.

Jan 1, 1999

Mineralisation was identified at Gladstone Hill as far back as the late 1870's û early 1880's, shortly after the initial discovery of Martha Hill. Indeed, early recovery problems from the Martha Hill mineralisation led to the preferred development of are bodies within what is now the Union Hill Joint Venture tenement; ore bodies such as Silverton, Amaranth, Union to name a few. Work at Gladstone Hill is carried under the Union Hill Joint Venture, a 50:50 joint venture between Auag Resources Ltd - manager (a fully owned subsidiary of Otter Gold Mines Ltd) and Welcome Gold Mines Ltd (a fully owned subsidiary of the Normandy Group). The joint venture participants also operate the adjacent Martha Hill operation. Mineralisation of Gladstone Hill, as with mineralisation at the adjacent Martha Hill, has been interpreted as a low sulphidation epithermal Ag-Au system hosted within hydrothermally altered andesites of the lower Coromandel Group. Drilling in recent years has successfully identified extensive mineralisation associated with the Gladstone vein set and the more recently identified high grade Moonlight Lode. Veining ranges in character from thin stock works to broader lode-style banded chalcedonic to cherty quartz. Visible gold is rare, with mineralisation generally associated with very fine-grained pyrite, arsenopyrite and minor electrum. The potential for the Gladstone Hill area is yet to be clearly defined as drilling to date has yet to close off mineralisation both along strike and down dip. If further drilling is successful, the joint venture partners believe Gladstone Hill could contribute significantly to the economic future of current operations.

Jan 1, 1999

By S. Jennings

The Red Dog zinc-lead-silver deposit is located in the DeLong Mountains of the western Brooks Range in northwest Alaska. The region is located 145 km(90 miles) north of the village of Kotzebue (Fig. 1).Red Dog’s current resource base is 143 Mt (157 million st) averaging 16.1% zinc, 4.3% lead and 83g/t (2.4 oz/st) silver. It is contained in four structurally separate deposits— the Hilltop, Main Deposit, Aqqaluk and the newly discovered Paalaaq deposit. Recent exploration for the Aqqaluk and the Paalaaq deposits has contributed to Cominco American’s understanding of the detailed structural geology of the district and its role in the placement of individual ore bodies.

Jan 1, 1999

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

By D Craw

Sulphur-rich minerals such as authigenic pyrite (FeS2) are commonly associated with coal mine workings. Metallic elements such as arsenic (As), copper (Cu) and zinc (Zn) are enriched in the pyrite relative to their concentrations in the surrounding environment. Exposure of pyrite and coal to air and water results in a series of oxidation and hydrolysis reactions that are commonly catalysed by species of Thiobacillus bacteria. These reactions lead to a lowering of the pH in the drainage waters (acid mine drainage, AMD) and subsequent mobilisation of trace metals in environmentally significant concentrations. This study assesses the spatial distribution of As, Zn and Cu concentration in water in relation to pH and Eh (redox potential) downstream from the tailings at the Wangaloa opencast lignite mine in southeast Otago. This mine was abandoned in the late 1980s due to a decrease in the economic viability of mining the lignite. The area is showing the characteristic symptoms of AMD, which is detrimental to the health of several Pinus radiate growing on some of the tailings. The pH of the drainage waters can get as low as 2, and in some instances, lower, but it returns to near neutral (pH 6.5) up to 200 metres down stream from the base of mine waste piles. It is well documented that the atmospheric oxidation of pyrite is catalysed microbially, causing a substantial decrease in the pH of the drainage waters. Acidification is then counteracted predominantly by natural abiotic remediation processes occurring downstream.

Jan 1, 1999

By A. Cichowicz

The objective of this work is to quantify the effect of the rock mass surrounding a stope or a tunnel on the seismic signal so that the rockburst damage on the excavation can be derived. It has been shown that the transfer function of rock mass surrounding an excavation can be modelled using a damped oscillator. The method of estimating the transfer function is extended in this paper. The parameters of a damped oscillator are estimated using inversion techniques and the transfer function is modelled as a time-varying system. The technique is tested on data acquired at three different sites in two deep gold mines. Employment of a modal model of the transfer function was suitable in two cases. Application of this technique is essential to track the time variation of the natural frequency during ground motion caused by a seismic event.

Jan 1, 1999

By Martin Stone

Industrialized countries, particularly the United States and the United Kingdom, remain at the forefront of international efforts to control the potential disruption from computer malfunctions caused by the date change from1999 to 2000 — widely known as the millennium bug or Y2K. Disruption is least likely in the developed world, including the United States, Canada, western Europe, Japan and Australasia. However, the picture is potentially different in developing countries where many mining companies operate. The less developed the country, the greater the chance of some form of Y2K-linked disruption.

Jan 1, 1999

By Chris Bennett, Glen Kosick

"Process modeling and equipment sizing procedures for SAG circuits has advanced significantly over the past two decades. However, no matter how exact the hardness tests, models and scale-up calculations, if the ore samples being used for design do not accurately represent the orebody then major design errors can be encountered. This paper will describe a hardness testing method for identiQing the power requirement profile of an orebody, to an extent that design errors due to poor sampling can be greatly reduced or avoided altogether. It will provide some insight into the magnitude of hardness variability that can be encountered in an orebody. Finally, the paper will preview how detailed hardness distribution data can be incorporated into mine block models, to optimize SAG circuit design for an orebody, both fi-om a capital investment and throughput point of view.INTRODUCTIONIt has long been known that many SAG/AG' circuits experience wide swings in throughput. These throughput variations are almost always of a magnitude not anticipated in the plant design; consequently, they are detrimental to the expected return on investment for the mining companies. It is clear that the throughput swings are mainly caused by changes in ore hardness. In 1993, in an attempt to address this problem, MinnovEX began investigating the possibility of using a small scale SAG test (2 kg charge) to predict SAG power requirements from drill core samples. The objectives of the small scale test were to enable mining companies to do many more SAG hardness tests than currently undertaken for a particular orebody. To make this possible, the SAG tests had to use a minimal amount of sample, be cost effective, and give acceptable accuracy in the prediction of SAG power. If this small scale SAG test proved accurate, then the high sampling frequency would yield results that approach the true hardness distribution of an orebody. This hardness distribution could then be used to derive the distribution and variability of specific energy required throughout the complete orebody. This specific energy (kWh/t) can be thought of as the power required to grind one tonne of ore per hour (kW/tph) to a specified size. Once the true distribution of power requirement throughout the whole orebody is understood, the grinding circuit design team can make an informed decision regarding the hardness value that is most appropriate for sizing the SAG equipment. Throughput losses due to hardness variation could be deliberately planned for or avoided altogether (a capital cost decision)."

Jan 1, 1999

By A. J. Lynch

Mineral processing models have been discussed for many years but it was not until digital computers became available about 1960 that serious attempts at circuit simulation could be carried out. Even then the work was primarily academic until PCs could be used by engineers in plants and design offices in the mid-1980s. Since then simulation has moved quickly and it is now at the point that most processes can be simulated reasonably accurately for purposes of design and optimization. There are still some significant deficiencies, notably in dry grinding and separation, and in the chemical interactions in flotation. Future work will involve: ?improvements of existing models ?dynamic simulation for automatic control and, in particular ,for training which is a weak link ?using advanced simulation models to predict liberation and separation from data acquired from SEM-based liberation analysers. Eventually mineral processes models will be part of total simulation systems which will incorporate mining and downstream processes including all environmental impacts.

Jan 1, 1999

By Gupta R. C

Syria has about 500 million ton deposit of minerals having 34 per cent iron content with alumina and silica as major impurities. Efforts were made to see the feasibility of concentration by four different methods involving washing, high intensity magnetic separation, reduction roasting and magnetic separation and acid leaching technique. It was observed that the reduction roasting with magnetic separation yields a concentrate with high iron (62.3 per cent) content without requiring water which is a scarce raw material in the region. The paper concludes that the detailed study may be made following this route to optimise the process Parameters.

Jan 1, 1999

Australia's iron ore industry is entering a challenging period with the development of new orebodies, the introduction of new products and the push for further downstream processing. In addition, the recent price reductions for iron ore exports have intensified the focus on reducing capital and operating costs. To assist in these areas, CSIRO is expanding its research capabilities, including the incorporation into CSIRO of the Mineral Processing Laboratories in Perth, which were previously managed by the WA Department of Minerals and Energy. In addition, a large part of the $24.4 million expansion of CSIRO's Pinjarra Hills laboratories in Brisbane will be devoted to enhancing iron ore processing research, providing purpose built laboratories and large process bays.

Jan 1, 1999

Iron production in one year exceeds that of all other metals combined in ten years. It is a huge industry that started from a modest furnace producing one - two kilograms metal per day to a gigantic reactor producing 10 000 tons per day. The major milestones of these developments are reviewed.

Jan 1, 1999

By A C. Edwards

The Mongol-Okhotsk belt consists of detached fragments of the Circum Pacific fold belt which have been trapped within the Mongol-Okhotsk fold belt. In its western part, the structures of the belt form an east-facing loop that is not connected with the other orogenic structures of Central Asia. In the eastern part of the belt (the Mongol-Okhotsk suture zone) the terranes form a zone between the Siberian craton to the north and the Bureya composite terrane to the south, that is linked with the Circum Pacific belt. The accretionary terranes, together with their Precambrian backstops, form a series of consistently-stacked, paired units that are bounded by northwest and north trending sinistral strike-slip faults. The ages of the rocks forming these accretionary complexes vary from Late Precambrian - Carboniferous in the west to Cambrian - Jurassic in the east. The terranes developed due to a progressive westward stacking of the accretionary complexes during the process of accretionary growth. The magmatic rocks young eastward indicating that migration of the magmatic front of the arc followed the eastward growth of the accretionary complexes. The accretionary terranes may be differentiated by their Paleozoic lithological assemblages. Only the Selemdzha, Niman, and Kerbi terranes located in the eastern part of the Mongol-Okhotsk suture zone contain significant amounts of black shale, and it is these terranes that host the bulk of the hardrock and placer gold mineralisation that is present within the suture zone. Gold mineralisation is present both as vein style and disseminated mineralisation within structural duplexes.

Jan 1, 1999

By G. Biles, K. Loughran, R. Anand

The Eskay Creek Mine, a high-grade gold and silver underground mine in northwestern British Columbia started operations in late 1994. For the first three years of operation, ore was crushed to minus 2 inch; blended to satisfy smelter terms and direct shipped to smelters in Japan and Canada. Before commencing the above operations, preliminary evaluations had indicated that an extremely complex metallurgical facility, requiring a large capital investment, would be required to recover the precious and other economic metals. Subsequently markets for raw ore were identified and underground mining and ore transportation operations, at a nominal production rate of 300 tonnes per day, were commenced. Exploration diamond drilling in 1995 and 1996 discovered additional lower grade mineralised zones, which are less economic or uneconomic as direct shipping ore. Test work demonstrated that these lower grade zones could be upgraded to marketable concentrates in a simple flotation mill. The mill was built in 1997 and has been in operation since late 1997. The mining rate now has increased to 400 tonnes per day including 250 tonnes per day of the direct shipping ore and 150tonnes per day of the mill ore. Prime Resources Group Inc. wholly owns the Eskay Creek Mine. Homestake Canada Inc. owns 50.6% of Prime’s shares and manages and operates the mine on Prime’s behalf. This paper discusses the mining and milling operations as well as ore shipment and smelter contracts' administration.

Jan 1, 1999

The 102nd Annual General Meeting of The South African Institute of Mining and Metallurgy was held in the Gold Room, Transvaal Automobile Club, 60 5th Street, Lower Houghton, Johannesburg on Wednesday, 18th August, 1999. Obituaries The President announced the death, during the year, of the following members: Honorary Life Fellows and Past Presidents D.D. Howat Life Fellows O. Deane, J.S. van Zijl Fellow A.A. Hejja Retired Fellows A.L. Forder, C.B. Parker, A.C. Petersen, F.W.J. Ross Members J.S. Stanko, D.H. Gray Retired Member P.K. Bredell Retired Associate I.S. van Eyssen In memory of the deceased and in sympathy with the bereaved, all rose and observed a moment of silence.

Jan 1, 1999

By Ray H. S, Galgali R. K

It is well accepted that the blast furnace will continue as the main route for iron-making for many more years. However, its limitations have motivated researchers to look for alternative routes, particularly, those where non-coking coal is used for liquid iron production. Smelting reduction (SR), where coal and oxygen are used to produce liquid iron and power is now receiving serious attention. Several smelting reduction reactors are now operating in pilot plant scale and one or two have reached commercial status.

Jan 1, 1999

Deep level block caving as a mining method is becoming more popular due to the fact that it is the lowest cost per ton underground extraction system. However, many block caves do not achieve their full potential due to draw horizon instability. In this paper five design rules are given to overcome this problem. The design rules described are applicable for slusher and trackless block caves where the operational depths exceed 500 metres.

Jan 1, 1999

By N M. Caira

The North Arm of Sulawesi hosts numerous gold and base metal occurrences. Compilation and analysis of geological, tectonic, geochemical and isotopic age date data collected over the past six years on the central part of this region have resulted in the definition of 184 prospects and mineral occurrences of various styles occurring in diverse geological settings representing varying tectonic environments and erosional levels. Mineralisation of the following styles have been recognised: porphyry Cu-Au; porphyry-related gold and base metal veins; high-sulphidation Cu-Au-As; low-sulphidation epithermal Au; hydrothermal breccias; and sediment-hosted Au mineralisation. Clusters of occurrences/prospects form mineralised districts representative of magmatic systems with characteristics determined by the tectonic environment prevailing during formation and the subsequent level of exposure by erosion. Distinctly different Miocene and Pliocene porphyry systems are now recognised whilst most of the remaining epithermal mineralisation is thought to be Pliocene or later. The central North Arm of Sulawesi is composed of a Miocene magmatic island arc that is built on an Early Tertiary basement of predominantly oceanic basaltic rocks and overprinted by a Pliocene magmatic arc. A structural fabric dominated by SSE arc-normal and ESE arc-parallel faults was established during the Miocene under a dextral wrench regime and intersections of these major fault sets are favoured sites for Miocene porphyry Cu-Au mineralisation. Strong dextral tension caused by the collision of the Sula Platform, at the close of the Miocene, led to arc-parallel rifting. Sinistral reactivation of the major Miocene structures in the Pliocene led to further rifting, and ENE-dilation. Pliocene intrusions and related mineralisation exploit these dilatant settings. Miocene porphyry Cu-Au mineralisation occurs where late-Miocene quartz diorite stocks have intruded the margins of earlier Miocene plutons of intermediate composition. Porphyry centres have associated peripheral base metal veins, and skarns. Overprinting of porphyry vein sets by epithermal veins is common. Sediment-hosted gold mineralisation occurs in calcareous sediments associated with the Miocene arc. Remnants of the Pliocene volcanic arc, comprised of dacite volcanics, intrusions and voluminous pyroclastics, dominate the south coast and host porphyry Cu-Au, high sulphidation Cu-Au-As deposits, low-sulphidation epithermal Au veins and disseminated gold mineralisation. In some prospects, mineralised sinters are preserved adjacent to vein systems and deeper mineralised stockworks. Diatremes are common and large caldera structures have been identified. Pliocene stocks and porphyry dyke swarms penetrate the main central and northern parts of the Miocene- arc introducing additional porphyry Cu-Au, base metal hydrothermal breccias and low-sulphidation gold veins. Rapid uplift and erosion has resulted in a highly variable preservation of styles of mineralisation adding further diversity within the mineralised districts and telescoping within deposits.

Jan 1, 1999