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By M. Visnjic

Open Pit Mine Production scheduling under commodity price uncertainty suffers from an exponentially increasing problem size as simulations and real options flexibility are used to generate and evaluate multiple production schedules. Robustness evaluation techniques attempt to evaluate a production schedule that is generated on a single set of economic parameters against several varying prices and sources of uncertainty. This approach is invalid as the corresponding optimal LOM mine plan will change for each set of evaluation parameters. Using commodity market futures and treasury bonds as production schedule economic input parameters provides fully price and time-value-of-money risked scheduling parameters that maintain a deterministic problem size. This paper will provide comparative analysis of project NPV’s coming from traditional price uncertainty evaluation based on a single fixed LOM mine plan using varying prices versus evaluation based on varying LOM plans that are both generated and evaluated using varying prices. When cross evaluating constant price mine plans against simulations, the upside potential and downside risk of a project are significantly misrepresented. INTRODUCTION The life of mine (LOM) production scheduling problem seeks to answer the question of from where and when to extract a given block within the ultimate pit limit as well as where and when to process it. Solving this problem takes into account the constraints of extracting any particular block while seeking to maximize the net present value (NPV) of the mineral asset as a whole. A direct driver of the value of a block, and there for the entire asset, is the market price of the commodity in question. Complications arise when an optimal production schedule is attempted to be solved under price uncertainty. Many solution methodologies have been proposed in an attempt to optimize under this criterion, yet there are three salient aspects that are overlooked during this process. They are: • Generating a single production schedule and evaluating it against many simulated price paths. • Failing to understand the mechanism describing particular commodity price behavior • Inappropriate risk adjustment In an effort to address these aspects of production scheduling under commodity price uncertainty, we propose a methodology to define the economic parameters as input that is applicable to most if not all production scheduling approaches. This methodology will not only simplify the production scheduling process in terms of establishing block value but utilizes the risk adjustment of real options valuation to avoid the arbitrary blanket risk adjustment of traditional discounted cash flow valuation. Our findings conclude that attempting to optimize around individual price paths is futile and using a market risk adjusted single price forecast provides a justified economic basis for production scheduling while maintaining the same problem size as a deterministic production scheduling problem.

Jan 1, 2019

By Douglas M. Smith

The town of Tayoltita, Durango is located at the bottom of the 2000 m. deep Rio Piaxtla canyon on the axis of the rugged Sierra Madre Occidental mountain range. Throughout most of the year access to the town is restricted to travel by mule or STOL aircraft. Silver and gold have been produced from epithermal veins in the north side of the canyon since 1757. During the last seventy-three years more than 4,588,000 kg. of silver and 76,322 kg. of gold have been produced from approximately 6,000,000 metric tons of ore. The Tayoltita mine is developed within a fault block bounded by normal faults which strike north-northwest and have opposing dips. A thickness of at least 1300 meters of late Cretaceous or early Tertiary volcanic rocks is exposed in the mine. These range in composition from andesite to rhyolite. Andesite predominates in the upper 750 meters of the section. The volcanic rocks were passively intruded by quartz-monzonite and andesite stocks during middle (?) Tertiary time. Mineralization spatially and temporally (?) related to the stocks occurs along the east boundary fault and in intersecting footwall fissures which strike east-west and northeast. Ore was deposited over a vertical range of up to 600 m. prior to tilting of the volcanic rocks 35 to 45° to the east. With few exceptions, the ore bodies are found within the lower 400 to 500 m. of the andesite. Argentite (acanthite), stromeyerite, jalpaite, electrum and native silver are the principal ore minerals. They occur in gangue composed of one or more of the following: quartz, calcite, bustamite, adularia, chlorite, and albite. Base-metal sulfides make up less than 1.5 percent by weight of the ore.

Jan 1, 1974

By Steven G. Vick

Not too long ago a mill superintendent, when asked where his tailings were being disposed, could simply shrug his shoulders and point to the open end of the thickener discharge pipe. This “out of sight, out of mind” approach to tailings disposal is a practice of the past. Today there are very few planned hardrock or energy-related mining facilities where tailings disposal has not been identified as the major area of impact and controversy. In fact, development of some ore bodies has been stymied altogether by lack of suitable sites or methods for tailings disposal. The bottom- Iine result is that tailings disposal often controls the permitting lead time and has a significant influence on construction cost (up to 2070 in some cases) of new minemill complexes. The following article, the first in a series of three, explores technical background and historical perspectives on siting and design of tailings impoundment facilities.

Jan 6, 1981

By John Davis Morgan

The uncertain world conditions of the present time require that the United States be prepared to meet: a. all-out nuclear war with attack on the United States b. limited wars (anything smaller than (a.) c. political, economic, and/or psychological warfare. Our present position as a major world power derives in large measure from our free institutions and our great industrial productivity, and our productivity in turn depends on an ever-continuing flow of raw materials from the earth - metals, minerals, fuels, and agricultural products. The United States, with only about 6% of the world's population, uses from one-third to two-thirds of the world's annual supplies of 'most metals and minerals. The United States strategic materials stockpiling program is designed to enhance our national security posture: as stated in the preamble of the Stock Piling Act, to decrease and prevent wherever possible a dangerous and costly dependence of the United States upon foreign nations for supplies of strategic and critical materials in times of national emergency. In times past, the Good Lord himself has ordered some stockpiling. The Book of Genesis in the Bible tells how Pharaoh of Egypt was directed to set aside one-fifth of the produce of the land in each of the seven good years to meet the needs of the seven bad years that were to follow: this would be a stockpile of about two years? normal use. Our cultural heritage often reminds us of the wisdom of stockpiling, as in the case of the stories about the provident squirrels that gather their nuts in an orderly manner in the f all to prepare for the winter's cold. And the old proverb about a bird in the hand being worth two in the bush points out clearly the value of something that is directly at hand.

Jan 1, 1960

By M. Schultz

The cost of remediation often drives the selection of the preferred remedial alternative at hazardous waste sites. The use of probabilistic cost/risk analyses can aid in predicting costs of remedial alternatives. Three types of information are discussed in performing cost/risk analyses: (1) data on the quantity of contamination versus the contaminant concentration; (2) unit costs of remediation for the remedial alternatives; and (3) risk to contaminant concentration relationships. Cost/risk evaluations are performed on a site-by-site basis, to account for combined risks of different contaminants and differences in quantity to be remediated versus contaminant concentration. The cost/risk analysis produces a graph of risk versus cost for each of the remedial alternatives. These costs are then compared to facilitate selection of a preferred alternative. An example of comparison of alternatives is illustrated for a historic coal gasification site.

Jan 1, 1992

By R. R. Klimpel

This paper is a summary of the author's industrial experiences on the selection and optimization of flotation reagent schemes for the recovery of gold species. The trends given are a composite of data and experiences gained on 24 different gold ores from around the globe. The primary emphasis is on the benefits of matching the associated gold mineralogy to a reagent scheme most appropriate for that mineralogy. Two general categories are discussed: the flotation of free or native gold species and the flotation of gold associated with a variety of sulfide minerals. Important plant operating factors influencing each of these two categories are presented with supporting examples. Carefully matching reagent chemistry and appropriate operating conditions to any given gold-bearing ore will not only lower the total reagent cost but, more importantly, can lead to measurable increases in gold recovery.

Jan 1, 2000

By C. M. Chang, H Gu, J. A. Barrera-Godínez, T. J. O’Keefe

The inability to economically separate Fe3+(aq) from a variety of liquid effluents is a major Concern for the primary metals industry. A unique solvent extraction process, galvanic stripping, has been developed to address this problem. The galvanic stripping of iron from D2EHPA using only a 5~10 g/L H2SO4 solution is achieved after Fe3+ is directly reduced to Fee, in the organic phase using zinc metal additions. To date, the primary focus of the laboratory research has been on optimizing the parameters that control iron removal. The results from these studies have now been, used to make a preliminary design for a continuous flow process that is envisioned for zinc industrial applications. Specific quantitative data are shown for the use of a Zn-Ph cellos° in the iron-reams al process. Some introductory results on electrochemical potential measurements and impurity distribution with solution cycling are also giiven.

Jan 1, 2000

By V. H. Forsythe

Mr. Chairman, members of SME, and guests It is indeed a pleasure to have the opportunity to appear before this group. The topic of this paper is, "Current Trends in Related Industries and Their Influence on Electric Shovel Design and Size". Before getting into the major items, it is well to point out that this text will deal with loading shovels primarily, since their application is almost universal in major open pit mining operations throughout the world. Related industries influence our design in many ways. For the sake of simplicity, these industries will be broken down into two major categories. The first category to be discussed will include industries that will indirectly influence design and size, while the second category will include industries whose products can directly be incorporated by the engineer in the design of shovels.

Jan 1, 1964

By J. A. M. Cano

Introduction Since the beginning of operations at the pellet plant at Ponta Ubu ES, Samarco Mineração SA has produced pellets for direct reduction and blast furnace processes. Of the total amount of pellets produced from 1977 through 1993, 55 % are used in the blast furnace, about 45 Mt (49.6 million st). The principal components of pellet gangue are calcium oxide, magnesium oxide, silica and alumina. They should be added in adequate quantities to guarantee the mechanical resistance of the fired pellets under blast furnace conditions. Over the years, the pellets produced by Samarco had a silica content between 2.5% and 2.8% and varying binary basicity preferably between 0.8 and 0.85. On the other hand, the increasing amount of industrial waste in siderurgical plants caused by the increase of steel production has caused some countries to put into practice methods to reduce the volume of slag produced in the blast furnace. This paper's goal is to find an alternative for decreasing the amount of slag produced in the blast furnace. It is possible to decrease pellet gangue by decreasing the silica content to about 2%, leaving the metallurgical properties and quality of pellets unaltered. For this work, Samarco pellets were used with Si02 between 2.5% and 2.8%, pellets with high silica and pellets with Si02 between 2.0% and 2.3% low silica. Both were partially fluxed by the range of varying basicity CaO/SiO2 from 0.8 to 0.95 during production. Experimental tests on pilot scale Thhis work began in January 1986 in the pilot plant (pot grate, Fig. 1) at Samarco. Its goal was to obtain preliminary data that would indicate the bybility of the project. It also formed a solid base to extend the studies in tests on an industrial scale of production for blast-furnace pellets. The pot grate is a test furnace composed of a gas burner, a combustion chamber and a grate, connected by hot air ducts. The burner is fed by a mixture of LPG and air. It reaches high temperatures through oxygen injection. The combustion chamber heats the air that comes from the turbocompressor. This hot air flows through the ducts to the grate on which the pellet samples are fired. During updraft drying, downdraft drying, preheating, firing and afterfiring, the upward and downward direction of the air flow can be controlled by valves driven by pneumatic cylinders. The pot grate indurator was fully automated in August 1989. Positive and negative pressures measurements resulting from gas passing through the pellet layer, as well as temperature readings, are recorded in graphs in relation to time for all tests. The tests depend on the various steps carried out in sequence that can influence the results of the tests. Therefore, some criteria were adopted to restrict the number of variables in the process. This was done to facilitate the results of the analysis. The pellets were composed of concentrate, bentonite, hydrated calcitic lime and metallurgical coal, all regularly used in the pellet plant. The material balance of the pellets mix was determined from the chemical analysis of the components. Table 1 shows the chemical characteristics of the concentrate and the additives used in the pilot plant and industrial tests. The basicity has a marked influence on the metallurgical properties of the pellets produced by Samarco with a silica content between 2.5% and 2.8%. However, for pellets with low silica (about 2%), it was necessary to study the variation in the parameters of quality in a wide range of basicities to deliniate with precision a scope of work. A large variety of low-silica blast-furnace pellets were produced at the pilot plant with binary basicity varying between 0.8 and 0.95. After chemical analysis, those pellets were separated into five groups of different binary basicity (0.8, 0.84, 0.87, 0.90 and 0.95). Each was then split, one part for metallurgical tests in the laboratory at Samarco and another to be evaluated in a laboratory for metallurgical tests in Germany. It was agreed that the tests to evaluate the quality of the pellets in the two [ ]

Jan 1, 1996

By Leonard Sugin

The requirements of today's and tomorrow's markets led to a new generation of facilities which handles large tonnages annually, loading them into larger vessels, at higher rates, efficiently and reliably, with minimum labor input, and significantly greater attention to the environment. A great variety of products are handled, including various grades of metallurgical and steaming coal, coke, iron ore in its many forms, shapes and moisture content, phosphates and fertilizer products, bauxite and alumina ores, limestone, sugar and grains, cement and many other products. When we examine the annual tonnages involved in these movements the economic value of handling these products on a bulk basis can be readily seen. Although nearly all these products have been handled by continuous bulk conveyors for many years, recent governmental response to environmental concerns require a re-evaluation of previous procedures. Most air pollution and emission control regulations and ordinances have recognized several specific sources of pollution. Detailed regulations and requirements have been developed concerning smoke emissions, emissions of visible air contaminants and particulate matter from power plants, heating plants, refuse burning equipment, coke ovens, steel furnaces, kilns, and other industrial installations. Although fugitive dust is also an environmental pollutant it is governed by regulations that are more general and therefore, more difficult to apply. A general definition of a "fugitive particle" is any matter which escapes or becomes airborne from an operation or which is emitted into the atmosphere without passing or being conducted through a flue, pipe, stack or other structure designed for the purpose of emitting air pollutants into the atmosphere. This paper deals with the aspects of fugitive dust emissions as they apply to shiploading. Fugitive dust emissions control is important not only because of environmental regulations but also to prevent the loss of valuable product, reduce housekeeping, and reduce breakdown and maintenance problems to land and vessel equipment. The environmental controls for a belt conveyor system are those which will restrict the emission of fugitive dust particles and can be considered as follows:

Jan 1, 1977

By Wayne R. Hopkins

Southern Arizona has one of the world's principal concentrations of copper ore bodies. Twenty miles south of Tucson, close to the Mexican border at Sahuarita in Pima County, is the Twin Buttes mine. In mid-1973, the Anaconda Company and American Metals Climax Incorporated (AMAX) established a 50-50 partnership to operate and expand the Twin Buttes property. Anamax Mining Company was established as the operating company for this joint venture. The production from the Twin Buttes mine is shared between the two partners who market independently. A major expansion of the Twin Buttes operation has included an accelerated stripping programrne for the pit, an expansion of the sulphide concentrator, the construction of an oxide leach plant and a 57 MW diesel generating power station. Part of this major expansion, the large tonnage oxide processing plant was brought on stream in 1975 and is now close to design capacity. The "mine to market gap" has been closed by producing high-purity copper cathodes at the mine site from oxide ore reserves. By using a hydrometallurgical process route, copper production is possible with negligible effects on the environment.

Jan 1, 1976

By S. Ouyang

The four most important parameters controlling the flow of as in coal are the gas content, permeability, diffusion coefficient and clear characteristics. Estimates of these and, more importantly, a good knowledge about the variations in their values over time are important for proper simulation of long-term gas production. This paper describes experimental techniques for the estimation of diffusion-coefficient and permeability values, along with their time dependency under simulated in situ conditions. It is shown that the permeability and diffusion-coefficient values are not constant, as they are usually assumed to be. There is a significant variation in their values, probably as a result of changes in the microstructures of coal associated with release and flow of gas. Finally, a technique to estimate clear parameter is presented.

Jan 1, 1997

By C. M. Brown

The semi-autogenous grinding circuit at the Utah Mines Limited, Island Copper Operation, located on Vancouver Island, British Columbia, is described. Since start-up of the operation in 1971 grinding circuit throughput has been progressively increased from the initial design rate of 30,000 to the current average 45,000 tonnes per day (t/d) of porphyry copper ore. Key developments and modifications in operating and maintenance practice that have contributed to this increase are reviewed.

Jan 1, 1985

The US Bureau of Mines' dictionary of mining terms defines productivity as "the efficiency with which economic resources (men, material, and machines) are employed to produce goods and services." Or, the relationship between the physical outputs and the physical inputs used to produce those outputs. As demand for mine materials dropped, mining companies and equipment manufacturers discovered that ratios between the inputs and the final products were disproportionate to the profits realized. Some companies are fighting for survival. The US, while still the most productive country in the world in absolute terms, is looking over its shoulder as other industrialized nations continue to exceed its yearly productive growth rate. According to John Belcher, Jr., of the American Productivity Center in Houston, TX, the US has seen a steady decrease in productivity growth since the mid-1960s. During the post World War II period, the US labor productivity growth rate was 3.2% annually. The slowdown began in 1965 and by the mid-1970s, the country's annual growth rate was 1%. By 1978, labor productivity growth ceased to gain at all and from 1978 to 1980 a 2% decline occurred. Solutions to the productivity decrease are increasing product prices or improving productivity. By increasing prices, though, the producer runs the risk of pricing himself out of the competitive market. To maintain an acceptable profit level, prices must increase proportionately higher than required to offset production cost increases, Belcher says. Many companies are turning to in-house productivity improvement programs as an answer to increased costs and declining profits. These programs are geared toward management commitment and employee awareness of what productivity means. Companies are finding ways of measuring productivity levels in financial reporting, budgeting, and planning. Organizational teams have been formed to coordinate activities and oversee product management, and improve productivity of materials and capital investments. This special issue of Mining Engineering examines productivity in the mining industry. First, there are articles about various, and different, factors that affect productivity in each of ME's five main readership areas - exploration, mining, processing, coal, and industrial minerals. There is also a look at mining industry productivity from the manufacturer's view. The next section of this special issue is devoted to some topics that affect all areas and sectors of mining: research, management practices, computers, maintenance, and energy management. Then follows case studies in exploration, coal, and iron and steel. These studies provide examples of practices and strategies used by companies and operations to boost productivity.

Jan 11, 1983

By A. Dan Rovig, C. Kevin McArthur

Technical and managerial innovations in the minerals industry have allowed continuing mining activities in the United States, and elsewhere, as gold orebody quality has diminished or has become more refractory. Of course, world markets, permitting requirements, and political processes also have created a need for innovative practices that contribute to the survival of the mineral industry. The gold industry has been transformed, during the past approximately 40 years, from a predominantly underground mining and milling type of exploitation and extraction to the large-scale, relatively low-grade type of extraction that is common in the United States today. Indeed, with the introduction of gold heap-leaching technology and the development of mines that produce from large, relatively low-grade gold orebodies in the western United States, a "new" industry was born and continues to prosper today. It is worthwhile noting, however, that Dobra (1997) has reported that one of the major trends in the North American gold industry is a movement back toward underground developments.

Jan 1, 1998

By David R. Wayman

This paper summarizes environmental compliance and related issues associated with underground construction and tunneling operations, whether new work or rehabilitation. Underground construction and tunneling operations have (in most cases) both an underground and surface component. Since many of the major tunneling projects occur in urban areas, often is areas inhabited for several decades or centuries, environmental problems may already exist in a project area, though that may not yet have been formally recognized. Large projects often attract more than their fair share of regulator attention. This paper addresses the issues with the greatest potential to be encountered by underground constructors, with the emphasis on minimizing contractor liabilities, both in the short- and long-term. Minimizing contractor liability begins with understanding bid documents, contract provisions and necessary means of protection, and carries through project execution by responsible control of hazardous materials, avoidance of media contamination, proper waste disposition, as well as compliance with other environmental requirements.

Jan 1, 1999

By P. F. Mataich

When the subject of plant computers is brought up most people visualize the computer's controlling the entire plant with very little operator intervention. Actually, this picture is true today in only a limited number of cases and will certainly not be true in the minerals industries for many years to come. There are several ways in which a plant computer can significantly contribute to improving plant operation and closed loop control is only one of these. First of all, what are the basic ingredients for good plant control? For good plant control, two requirements must be met. First, the operator must get good information feedback from the process and then he must know what action to take in response to this information. Control information can be obtained through instruments, laboratory analyses, or through simple visual observation. If it is timely and accurate and the operator knows how to use it, then we have the makings of a good plant control system. The computer can be of help in both these areas by getting good data back to the operator and in helping to develop a good control scheme for the plant.

Jan 1, 1966

By Thomas V. Falkie

The title of this talk has brought some interesting responses - even before it was written - from different parts of the country. A geologist from the Western U. S, was deeply concerned with recent layoffs in his profession and the employment situation in general and wondered why "the AIME wasn't doing anything for the benefit of its members." A petroleum engineer in Texas said that a group in his field were studying "professionalism" and their professional status and wondered if there were any words of wisdom for him. A mining engineering professor from the East pointed out that the National Science Foundation did not include mining engineering as one of its recognized fields in one of its equipment funding programs. These are just a few examples of reactions received to date, but they serve to illustrate the broad image that the title has meant to various people. Actually the term profession is defined by Webster as "a calling requiring specialized knowledge and often long and intensive academic preparation." The word encroach means "to enter by gradual steps or by stealth into the possessions or rights of another", or "to advance beyond desirable or normal limits." The intention of this paper, as originally conceived and requested by the program chairman, was to combine those two words literally and talk about how the professional standing of mineral engineers is being eroded from people outside the profession. But the amazing preliminary response suggests that it may be timely to broaden the discussion by including some comments about professionalism in general. In the paper the terms "mineral engineer" or "mining engineering" are used frequently, but it should be clearly understood that much of what is said is valid and is intended for all fields covered by SME and perhaps for AIME in general.

Jan 1, 1972

By J. G. Davis

Continental Oil Company has spent over four years of research on the fundamentals of potash solution mining. This work included laboratory investigations of salt solution, brine flow, selective extraction of KC1 from sylvinite, and control of cavity geometry. Laboratory results were expanded by means of a series of field tests, and subjects such as well completion and hydraulic fracturing were added to the investigation. Both single-well and multi-well mining systems were studied in the field work. The current paper discusses one field test in which potash was solution mined from a thin sylvinite ore zone in the Carlsbad Potash Basin. A two-well mining system was used for this test. The potential economic value of solution mining has been recognized for many years, and applicable United States patents date back into the past century. Principal advantages of the process over conventional mining include (1) the use of drilled holes and solution techniques in- stead of excavated shafts and caverns and (2) the ability to mine both land and marine deposits through any type of overburden geology and below conventional mining depths.

Jan 1, 1969

By Bruce C. Trent

In order to effectively model subsidence caused by underground openings, a two-dimensional computer code has been developed which couples near- and far-field response. The near-field is simulated by a discrete element block code and a finite difference code represents the continuum region in the far-field. The explicit equations allow rapid and inexpensive solutions to geometries which may lead to subsidence. Two sample problems are presented which illustrate the important features of the code.

Jan 1, 1979