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By B. Stimpson, K. Kosar, K. Barron

"A number of high wall failures have occurred in some of the Alberta coal strip mines of a type called by the authors ""Multiple block plane shear slope failure "". They cause rapid deterioration of the dragline bench, reduced productivity and maintenance costs.The failures are invariably associated with the presence of almost horizontal (± 5 degrees) bentonitic clay bands in the overburden, often immediately above the coal seam, and regress behind the slope as a series of tension cracks which isolate detached blocks. As many as 17 sets of cracks have been observed, at lateral distances in excess of five times the slope height from the toe.The theory of this mode of failure is presented and a limiting equilibrium computer program which will produce deterministic or probabilistic (Monte Carlo) solutions is briefly described. A case history of one such failure is documented. It is shown that the extent of the regressive failure is exceedingly sensitive to the water table elevation, leading to the conclusion that drainage, if practical, represents the best control strategy. IntroductionA number of high wall slope failures are occurring in some of the coal strip mines in Alberta of a type called by the authors ""Multiple block plane shear slope failure""(I). These failures cause a rapid deterioration of the bench from which the dragline operates, reduced productivity, and necessitate conregresses into the slope as a series of tension cracks and detached blocks. As many as 17 prominent cracks or crack zones have been observed, the last being in excess of five times the slope height distant from the toe.The block between each pair of cracks must be at limiting equilibrium, i.e. the factor of safety equals one. This condition can be used to determine the locations of the cracks which develop in sequence behind the face."

Jan 1, 1986

By M. P. Amsden

"Ecstall Mining Limited, a subsidiary of Texas Gulf Incorporated operates the Kidd Creek Mine, a 10,000 tons per day base metal producer, near Timmins, Ontario. Two different ore types are mined and milled: copper-zinc and silver-lead-zinc. At the highly automated Ecstall Concentrator the ores are processed by selective flotation in threes individual circuits. One of the most important metallurgical tools for process control is a sample system incorporating continuous on-stream x-ray analysis. Recently this system was further automated by adding computer control of reagents for two copper-zinc flotation circuits. The computer programs, utilizing optimum seeking methods and smelter contract terms, have increased copper recovery 0.8%, zinc recovery 1.6%, and reduced reagent costs by 12%. Although not anticipated, copper and zinc concentrate grades were improved modestly as well.INTRODUCTIONSEcstall Mining Limited, a wholly owned subsidiary of the Texas Gulf Incorporated operates the Kidd Creek Mine, one of the world's major base metal producers, near the old gold mining centre of Timmins, Ontario. Discovered in 1964, the property was brought into production in November, 1966. Originally designed for 9,000 tons per day, the operation now treats 10,000 tons per day of two different ore types mined from a single open pit. In the near future, open pit ore will be supplemented by ore from an underground operation now being readied for productionAt the Ecstall Concentrator the ores are processed by selective flotation in three individual circuits. The whole plant is highly automated and control is coordinated from a central control room. The treatment process follows conventional practices although fine grinding is required for optimum flotation recoveries. Normally, two circuits treat copper-zinc ore at a combined rate of 6,500 tons per day while the third circuit treats 3,500 tons per day of silver-lead-zinc ore. Special production averages 2,400 tons per day."

Jan 1, 1973

By R. E. Whitehead

"Alkali/alumina and MgO/alumina molar ratio plots graphically portray both chemical and mineralogical changes accompanying potassic, phyllic, argillic, chloritic, and alunitic alteration of quartz monzonites and granodiorites hosting porphyry (as well as lode and greisen) ore deposits. The molar ratio plots can be used to identify different types of alteration. In most cases, the identification based on molar ratios coincides with petrographic data. In those instances where the molar ratio and petrographic identifications do not agree, the mineralogy might need to be re-examined. Hydrothermal alteration studies using trace elements could benefit from the application of complementary alkali/alumina molar ratio plots.Le diagramme des rapports molaires alkali/alumine et MgO/alumine illustre clairement les changements chimiques et minéralogiques qui accompagnent les altérations potassique, phyllique, argillique, chloritique, and alunitique des monzonites à quartz et des granodiorites encaissant les gîtes de type porphyrique, ainsi que des veines et des greisens qui leur sont associés. Les diagrammes de rapports molaires peuvent être utilisés pour identifier divers types d’altération. Dans la plupart des cas, l’identification basée sur les rapports molaires est en accord avec celle basée sur les données pétrographiques. Là ou il y a désaccord entre les rapports molaires et les données pétro-graphiques, il peut être nécessaire de réexaminer la minéralogie. Les études de l’altération hydro-thermale accompagnées d’une étude des éléments traces auraient avantage à utiliser un diagramme des rapports molaires alkali/alumine."

Jan 1, 2009

By Peter Radziszewski

"Typical mining operating costs can be divided between extraction (30 % to 70 %), comminution (30 % to 50 %) and separation (5% to 20% ). Cornminition process costs, representing an important contribution to mining operating costs, can themselves be divided roughly between energy (50 %) and linerkharge wear (50 %). Developing the ability of predicting mill wear will allow a more accurate estimation of wear costs. However, total media wear in a given ball mill grinding process is a product of three recognized wear mechanisms those being abrasion, corrosion and impact. Further, the contribution to total media wear of each of these wear mechanisms has not been well established. In this paper, a overview of abrasive, corrosive and impact wear mechanisms is made from which an empirical wear prediction procedure is proposed. Further, future directions in wear prediction research is outlined. INTRODUCTIONTypical mining operating costs can be divided between extraction (30 % to 70 %), comminution (30 % to 50 %) and separation (5 % to 20 %). Comminition process costs, representing an important contribution to mining operating costs, can themselves be divided roughly between energy (50 %) and lined-charge wear (50 %). With respect to wear, world wide steel consumption as grinding media is estimated at over 600 000 tomes per annum (Malghan, 1982). As such, developing the ability of predicting mill wear will allow a more accurate estimation of wear costs.Charge media wear prediction is actually estimated using the Bond abrasion test. From Bond abrasion index tests, it is possible to determine a wear rate using the following function:"

Jan 1, 2000

By Khosrow Ebrahimi

We document the occurrence, mineralogy and firing properties of magnesite from hydrothermal deposits in the upper Cretaceous ophiolites of Eastern Iran. These deposits occur as thin veins of nearly pure cryptocrystalline magnesite with only trace amounts of quartz, calcite, and dolomite. Ratios of CaO/SiO2 in the bulk ore are variable. The composition of dead-burned magnesite from these deposits, calcined at different temperatures and durations, is predictable from phase equilibria. Textures of the calcined magnesite were studied by SEM; results show that the principal impurites produced during calcination are forsterite, monticellite, merwinite, dicalcium and tricalcium silicates, and that these are located principally at triple junctions of the periclase crystals. The size of periclase crystals increased with temperature and duration of calcination and the amount of periclase-periclase grain contacts was reduced by increasing the concentration of impurities in the starting products. EPMA show: 1) that CaO and FeO contents in periclase increase steadily with an increase in the CaO/SiO2 ratio and the FeO content of the bulk ore, respectively, and 2) that limited solid solution exists between impurites. This study demonstrates that high quality dead-burned magnesia refractories can be produced from the Iranian magnesite with low CaO, SiO2 and FeO contents.

May 1, 2004

By Rodney R. Koch

The phys ica l properties of gold should faci li tate its detection. However, the average concentration of gold in the ea rth's cru st precl udes the ability of geophys ical methods to detect the metal directly. In order to effectively pursue geophys ical detection and location of gold mineralization there must also be geological input - i.e. a model. This will lead to the selection of the appropriate geophy ical techn ique(s) in the fo llow-up programs. Interpretation of the fie ld survey data is of con iderable importance in expl oration geophys ics. Analytical techniques such as cont inuation, fi ltering, and spectral analys is, are now routinely empl oyed in the analys is of survey data to aid the interpretation process. The uccessful application of geophysical methods and the use processing techniques is demonstrated by two recent Saskatchewan discoveries. The first, the Star Lake 21 Zone, with reserves of 230,000 tons grading bener than 17.14 git Au associated with a disseminated sulphide quartz-bearing shear zone yielded geophysical anomalies that were distinctive, obvious, and would have lead directly to its discovery. The econd , the Laurel Lake Prospect, with ore grade intersections of 28.0I git Au and 52 .46 git Ag· over 5.49 m, resulted in numerous geophysical anomalies. However, none of these anomalies demonstrated association with the mineralization until processed results indicated that structural features crosscuning regional trends were important cont rol mechanisms for the mineral ization.

Jan 1, 1986

By S. G. Hardcastle, C. K. Kocsis

"Worldwide, metal mines are going deeper. For example, in Canada there are six such mechanized mines planning production at 3000 m (10 000 ft). Working at such depths challenges all aspects of mining including the provision of ventilation to supply an equitable working climate for personnel and machinery.This paper explores the overall challenges of supplying ventilation in Canada’s deepest mines and how the volumes required could be minimized. This is essential because it must be remembered that ventilation and refrigeration are not only costly items to supply, but the magnitude of their cost is also very sensitive to the volume supplied. For the primary ventilation system this is obvious because of the cubic relationship between volume and cost.In deep mines, the main function of ventilation is the removal of heat transferred from the strata and generated by the mining machinery, and the air volumes supplied are designed accordingly. The second consideration is the removal of other pollutants that could be harmful to humans such as diesel and explosive fumes. However, the need for ventilation at its present design levels could be reduced. This paper discusses the implications of such technologies as: tele-remote mining and alternatives to diesel equipment on the magnitude of the volume supplied; ventilationon- demand which recognizes ventilation as a costly and limited resource; plus other aspects, such as the benefits of controlled recirculation, local cooling, and possibly heat rejection back to the strata to gain further advantage from new developments.Furthermore, this paper advances the need to be able to design ventilation systems more cost effectively and how such new advances as process simulators can be used in conjunction with ventilation simulators to explore the diverse options that could affect the air volumes required and provide more realistic economic data upon which to base design decisions."

Jan 1, 2004

By C. F. Gleeson, D. G. Sheehan

"The results of humus and overburden geochemical surveys over the Doyon, Bousquet and Page-Williams gold ore deposits are presented.These studies show that humus sampling for gold gives negative results over the Doyon deposit. The lack of response is probably caused by the presence of 1 m of relatively impermeable glaciolacustrine clay and silt that overlies 1 m to 2 m of till over the surface expression of the ore zone. By contrast, positive responses for gold occur in humus samples over the Page Williams A and C gold deposits. The ""A"" ore zone is covered by several metres of exotic calcareous till over 0.5 m to 1 m of older, locally derived till. Anomalous values for gold in humus range from 10 to 35 ppb over the orebody. Overburden over the ""C"" ore zones is much thinner, generally it consists of less than 2 m of sandy till. Trenching humus anomalies that range from 10 to 1360ppb Au uncovered the gold mineralization. The geochemical dispersal trains in till from the Doyon orebody and the Page-Williams ""A"" zone are relatively short (i.e. less than 200 m) because both deposits occur in the lee of bedrock highs that shielded them from extensive glacial quarrying. Dispersal trains from all three pyritic gold deposits can be defined using either the fine fraction or heavy mineral fraction of the till.The intensity of the gold in till anomalies over the ore zones is variable. Therefore, it would be misleading to attach rigid significant threshold gold values to overburden drilling results. Each case must be evaluated based on bedrock topography, sample density, overburden type, thickness of till, as well as size, type and orientation of the target exposed to glacial erosion."

Jan 1, 1987

By N. I. Basuki, E. T. C. Spooner

"Abstract - More than 2800 published fluid inclusion data (primary inclusions) from eighteen typical Mississippi Valley-type (MVT) Zn-Pb deposits and districts were examined to study possible relationships between MVT fluid properties and metal tonnages and ore grades. The mean Th and salinity values for fifteen MVT deposits and districts are 122°C ± 21°C and 20.7 ± 2.6 wt% CaCl2 equivalent, respectively. In general, temperatures increase from pre-ore to ore stages, and salinities decrease from ore to post-ore stages. From post-ore to late calcite stages, salinity and temperature decrease with various trends within specific districts.Several conclusions are drawn: first, results show that Hanor’s (1996) salinity threshold for metalrich basinal fluids applies to typical MVT ore fluids (~16 wt% CaCl2 equivalent). Second, the lower limit of mean Th values of measured MVT deposits and districts (n = 15) of ~75°C is similar to Hanor’s (1996) observed temperature threshold for metal-rich basinal brines of ~60°C (n = 224). Third, there is no statistically significant relationship between fluid inclusion homogenization temperatures (Th) and metal tonnages or ore grades. Fourth, there seems to be a tendency for large tonnage districts/deposits to be associated with mean fluid salinities that are relatively low (~16 to 21 wt% CaCl2 equivalent) within the overall range of salinity means (~16 to 26 wt% CaCl2 equivalent). There is also a correlation between higher ore grades and higher salinities. Finally, comparison with other sedimentary rock-hosted Zn-Pb deposit types shows a trend of salinity decrease and temperature increase from MVT, sandstone-hosted and diapir-related Pb-Zn deposits, to vein-type and Irishtype Pb-Zn deposits, and then to sedex deposits. However, more data are needed for sedex deposits. The salinity threshold for significant Zn-Pb transport decreases to =~10 wt% CaCl2 equivalent at ~250°C. This study suggests that fluid inclusion analysis during exploration may be useful in assessing ore-forming potential (threshold salinity) and possible ore grades (salinity)."

Jan 1, 2002

By B. Hilscher, P. Nayak, N. Yoon

"The mining industry is currently facing challenges with declining feed grades and is struggling to find solutions to improve the project’s economic value. By means of pre-concentration, ore sorting aims to separate the barren material from the valuable ore to reduce energy consumption and tailings generation, while increasing the feed grade, concentrate grade, mill recovery, and revenue. In addition, ore sorting allows the modification of deposit geometallurgy in order to allow the creation of an optimal mill feed.This paper evaluates the applicability and challenges of ore sorting by utilizing the results from four different mines, and reviews them in detail. The mines include two underground and two open pit mines that are base metal and precioius metal operations. In order to understand the applicability of ore sorting in these operations, initial rock-by-rock test results and different types of assays (atomic adsorption [AA], inductively coupled plasma [ICP], and fire assay) are utilized. Using the assay results, the grade recovery curves for ore sorting are generated and they are further improved by using and developing an ore sorting algorithm, which is discussed in this paper. The application and evaluation of ore sorting in greenfield and brownfield properties will also be discussed.The state of the art ore sorting technologies for both rock-by-rock and bulk sorting are reviewed in this paper. The future technologies on the horizon, including different combinations of sensors, are explained. The sorting technologies include, X-ray transmission (XRT), X-ray fluorescence (XRF), colour, infrared, electromagnetic, and laser induced breakdown spectroscopy (LIBS).IntroductionOre sorting is a sensor-based sorting technique introduced between the excavation stage and processing stage, where the unwanted waste is diverted to the waste dump and only the ore is sent to the mill for further processing. As a result, the quality of the material entering the mill is improved and the dilution of the ore is reduced. In greenfield projects, sensor-based ore sorting provides an opportunity to reduce the capital cost of the project and increase the return on investment (ROI). With most operations currently facing the challenge of finding a high grade deposit, having a sorting unit provides several advantages while keeping the cost at minimum."

Jan 1, 2017

By John Lindsay

Outline ??Recovery plant requirements and concepts ??Common recovery plant unit processes ??Recovery plant design considerations ??Peripheral issues Process Design ??Liberation ??Separation ??Recovery Processing ??Density 3.5 g/cm3 ??Luminescent under x-ray ??Hydrophobic (non wettable) surface ??Non-magnetic ??Inert to strong acids / bases

Apr 1, 2005

By O. P. Garg

"The Iron Ore Company of Canada (IOC) operations in Labrador and Quebec, in Canada, is among the largest openpit mining complexes on a world wide basis. Since the 1981-82 recession, IOC has embarked on a comprehensive cost reduction and productivity improvement program in order to survive in the world iron ore market.This paper will outline the approach used in prioritizing the cost reduction items.IntroductionMuch of the mining industry in North America is in a crisis state. Most producers are operating at production levels well below capacity, some have been merged or sold, while others have been mothballed or closed permanently. For many of us still operating, the future is uncertain. Despite the many cutbacks and closures, there is still an abundant supply of minerals in the world market and there is almost no hope for any relief on price pressures on most mineral commodities in the near future. The Iron Ore Company of Canada (IOC) operates an iron ore mine, a concentrator and a pellet plant known as the Carol Project located in Labrador City, Newfoundland. This concentrator and the pellet plant have the annual capacity to produce 20 million and 10 million tons respectively. A company owned and operated railway links this operation with the dock terminal facilities in Sept-Iles, Quebec.In the past decade the Iron Ore Company of Canada has been one of the largest producers of iron ore products in the world. Its pellets and concentrates as well as natural ores were sold in North America, Europe and the Far East. In 1981-82, sales, particularly in North America, went into a serious decline. For almost 30 years, the gospel IOC preached to employees was ""production, production!"" There were many innovations, and millions of dollars were spent on the biggest and best equipment, on research and development, on training and developing employees."

Jan 1, 1987

By Tad S. Golosinski

The paper describes Online Master of Engineering Program at the University of Missouri-Rolla and discusses the experience gained during the first three years of its offering. This innovative educational program is designed primarily for mature students with an engineering or science background who want to acquire or upgrade their knowledge of mining engineering. Students can specialize in several different areas of mining, such as surface mining, underground mining, mine environment and the like. All courses constituting the program are taken online, through the Internet, without the need to attend the UMR campus in person.

May 1, 2004

By J. E. Sepulveda, R. Morrow

"The Linear Wear Theory provides a reliable framework for the assessment of grinding media performance at full scale. This theory can be applied for analyzing grinding media consumption rates in any given grinding operation as well as the evaluation of alternative grinding media products, based on actual operational data, correcting for conditions like ore hardness, feed and product sizes, mill power and circuit throughput; all of them unrelated to the grinding media intrinsic quality attributes. A series of Moly-Cop Tools 3.0 applications have been developed to facilitate the calculations involved. Moly-Cop Tools 3.0 is available, free of charge, to all interested parties through the corresponding author.INTRODUCTION Mineral grinding circuit operators recognize the significance of grinding media (balls) consumption on the cost structure of any full scale grinding facility. The effective cost associated with this essential consumable depends on two factors: delivered price and durability (quality) of the grinding media. When evaluating alternative grinding media varieties, there is a well accepted evaluation criterion by which a given media type is considered to be “cost-effective” when its unit application cost – normally expressed in $/ton of ore ground – is shown to be lower than that of a nominal reference condition: Grinding Media Cost = Ball Price x Ball Consumption (1) ($ /ton ground) ($/ton balls) (ton balls/ton ground) Under this criterion, an alternative, higher-price grinding media product could be “cost-effective” if its associated consumption rate is sufficiently lower than the reference media, enough to yield a lower grinding cost, as dictated by Equation 1. For the proper application of the above criterion, evaluators must rely on representative indicators of grinding media quality, ideally independent of most mill operating conditions. In each particular case, ball price is always a known component; however, it is not so evident how media performance (quality) differences amongst alternative product types could be assessed with a reasonable degree of accuracy and precision."

Jan 1, 2014

By K. Barr, F. Grenier, J. Hettinger

"To reach the Hemlo Gold Inc. objective of becoming the lowest cost, safest Canadian gold producer while causing no environmental damage, management embarked from its inception on a strategy to build an organization which would foster employee involvement wherever possible. This paper describes the organizational structure and how various innovative concepts have been implemented.BACKGROUNDThe Golden Giant Mine in the Hemlo area of North Western Ontario is owned by Hemlo Gold Mines Inc. 50.1% is controlled by Noranda. The mine commenced operations in March 1985 at a modest production rate. After it reaches full production by the end of 1988, with completion of underground development work, the mine is expected to operate at 3000 t/d and produce in excess of 300,000 ounces of gold per annum. This makes it one of the three largest producing gold mines in North America.Two other companies, Lac Minerals and Teck-Corona, operate mines on either side of the Golden Giant Mine. Noranda Geco Division is located 55 kilometers to the north at Manitouwadge. The majority of Hemlo Gold's 270 employees live in Manitouwadge where a mix of accommodation was constructed and made available for purchase by employees. Bus transportation is provided to and from the workplace with modern coaches. The housing and transportation policies were implemented prior to start-up and designed to help attract and maintain good employees.As shown in Figure 1, the operation is divided into five operating and support departments with each reflecting a high degree of departmental control and responsibility. For example, the mill department is responsible for all aspects directly relating to the milling complex including safety, operation, mechanical maintenance, assaying, instrumentation, and environmental control. Similarly, the mine department is responsible for all phases of operation, mine engineering, geology, and maintenance of underground mobile equipment. The plant department is responsible for maintenance of hoisting plants and conveyances, underground stationary equipment, all site electrical services, surface buildings, housing and yard maintenance. Efforts are made at every level of the organization, from departmental organization to individual job assignments, to ensure responsibilities are clear and that they encompass complete functions."

Jan 1, 1988

By C. Patel, George H. Hope

"INTRODUCTIONThe Hemlo area is located in Northern Ontario, some 350 km east of Thunder Bay along highway 17. Hemlo is Canada's largest, recent discovery of gold ore. Three companies, Lac, Noranda, and Teck are currently developing mines and processing facilities in the area. A combined milling capacity of approximately 10,000 tonnes per day will ultimately be available in the area. The gold yield will be between 750,000 to 1,000,000 ozs. per year. This will slightly more than double Ontario's gold production but only represents 2.5% of the total world gold production.Lac Minerals Ltd. is substantially committed to the gold mining business. Lac currently operates four (4) gold mines and mills and produces 300,000 ozs. per year. Lac's Hemlo development will put the company in the position of number one gold producer in Canada.The Lac Hemlo ore body has an estimated reserve of 37 million tonnes at 6.2 g/t. The mining will take place at an initial rate of 3,000 t/d commencing in the first quarter of 1986. The mine and plant will be expanded to 6,000 t/d in 1988. At this capacity, Lac will be the largest producer in the Hemlo area.1. GEOLOGYThe orebody is divided into two (2) zones for mining purposes. The 'A' Zone is to the east and dips to the Northeast from surface to 300 m below surface. This zone has a strike length of 250 m to 300 m at an average width of 20 m. The upperpart of the zone will be mined by open pit and the remainder from underground. The 'B' Zone, to the north west of the 'A' Zone, although lined up is not necessarily an extension of 'A' Zone. 'B' Zone has a known strike length of 600 m and is open to depth and along the strike. It is over 70 m wide in the core. This zone holds most of the property's known reserves. 'C' Zone with narrow gold zones is under exploration in the south west portion of the property."

Jan 1, 1985

By R. W. Mei, R. A. Strombom, D. J. Moore

"Heat-shrinkable cable accessories are solving problems in the mining industry. This paper describes a range of products used by the industry, including low-voltage splices, high-voltage splices to 8.7 k V, cable repair sleeves, mining cable terminations used on system voltages up to 25 kV and motor connection kits up to 8 k V. Technical procedures and designs are illustrated.IntroductionThe development of high-performance heat-shrinkable materials slightly over 20 years ago proved to be one of the major technological breakthroughs in power cable accessories. Heat-shrinkable products were introduced initially for use as low-volt age cable accessories in the aircraft and electronics industry. A program of continuous development and product introduction now enables the manufacturer to offer a broad range of products for mining, industrial and utility electrical systems.With the advent of atomic energy, an important discovery was made-exposure of some plastic materials to high-energy electrons can cause the permanent crosslinking, or intermolecular joining, of adjacent molecules. Once the material has been crosslinked, it will not melt or flow at any temperature.The unique properties of heat-shrinkable products also result from the exposure of special thermoplastic formulations to high-energy electrons. Because of crosslinking, these products have perfect elastic memory. The heat-shrinkable products are supplied in expanded condition. When heated, they will shrink and tightly cover the object over which they have been placed. 'The functional and operating demands of mine cable accessories exceeded the classic electronic applications of heat shrinkable materials. These demands required a very sophisticated program to develop materials and adhesive systems that could endure the operational environment associated with the mining industry,Ease of assembly, low installed cost and operational reliability are among the main reasons for the acceptance of heat-shrinkable mine cable accessories in electrically powered mines. For over a decade, these systems have been demonstrating proven performance."

Jan 1, 1980

By D. Richardson

Presentation Objectives ?Demonstrate the utility of 3D modelling for visualizing exploration data ?Demonstrate the target generation ability of 3D model query methods Exploration Criteria -Example Given the Geology of Sudbury What Are Our Exploration Criteria? (selected examples) ?Geometry ?Trends ?Lithology ?Proximity to Sulphides ?Length and Grade of Anomalous Mineralization ?Distance from Footwall In Addition ?Geophysical Criteria ?Economic Criteria ?Amount of Available Space ? Depth

May 1, 2006

By Júlio C. Lúcio

Consider the case of a mining company with N investment opportunities in projects of different commodities. The problem is: since the company has limitation of capital, equipments, technical staffs, etc, what is the best portfolio of production projects in order to maximize expectations from shareholders? In the no-longer past, the traditional method for the selection of portfolio of projects was the rank-an-cut method. But, this does not properly account for the risk to which the company is exposed. The Markowitz?s Mean-Variance is an advance because the risk of the NPV can be estimated at the level of the company or even division of the corporation. The final product of the Markowitz?s model is the efficient frontier, in which, the manager can clearly understand the maximum return from existing assets and the associated risk level - but this model does not recommend which one is the best portfolio. In this paper we present a model to select the best portfolio considering not only economic indicators, but also requirements of production, constraint in investments, etc. We show that if investors are diversified, managers should select projects with highest return, regardless of risk. However, in practice, if bonuses of managers are tied to their performance, the choice for portfolio with lower return and risk can happen. Numerical application considering typical portfolio of large mining company is used as example.

May 1, 2009

By R. E. Jones

"INTRODUCTIONCominco Limited, one of the free world's largest producers of lead and zinc having majority ownership in Pine Point Mines Ltd., operates a mining and concentrating complex on the south shore of Great Slave Lake in the Northwest Territories. The mine was developed in 1963-64 and commenced operation late in 1964 with the direct shipping of high grade ore. The concentrator started production in November 1965 at a design throughput rate of 5,000 T.P.D.In 1968, the Company acquired the mining rights to a large ore body located to the east of the Pine Point claims and subsequently an expansion program at the concentrator raised the throughput rate to 8,000 T.P.D. The expansion included a third grinding circuit and additional flotation capacity. The flotation capacity took the form of a completely separate circuit from the existing flotation plant. In 1972, the zinc flotation circuits were modified to include two additional stages of cleaning. This change concluded the ""Pre-Consolidation Flotation"" circuit at Pine Point.In considering these modernization programs of the flotation section of the concentrator, the philosophy was to utilize the largest available machine having proven and modern technological changes. With the advent of the large capacity machines available in the late 1970's, it was considered a suitable time to revamp the entire flotation circuit at Pine Point in 1979. The Circuit Consolidation Project was developed to meet this requirement."

Jan 1, 1982