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By Bradford F. Townsend, Matthew E. Fowler, Michael F. Smithson, Lawrence R. Eckert

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, 2010

By M. Jawed

Coking coal reserves in India are distributed geographically in Giridih, Raniganj, East Bokaro & Jharia Coalfields (J.C.F.). 97% of prime coking coal in JCF coming through underground mines is credited to Bord & Pillar mining systems inspite of the fact that it results in heavy mining losses. The cost of mining in B & P mines has been much higher due to various factors. In this paper, O.R. model has been discussed with case study for optimizing the cost of production in operational underground mines. Also, a computer algorithm has been discussed using a schematic flowchart, which provides the trend of mining-losses 'in different mining, systems with changing design parameters and finally selects, the optimum mining system for undeveloped seams based on economic appraisal criteria.

Jan 1, 1989

By J. Douglas

The past year has been a strange one for the fertilizer industry of the world and the United States. Listening to news stories, you would think the sky is falling on the world's agriculture and probably conclude that we should have had an exceptionally poor fertilizer season. In some respects, we did. Prices were low, profits were low, and in some cases nonexistent, but volume was good. We heard much in the press about the farmers' credit crunch. The truth of the matter is that only 6.6 percent of the U.S. farmers have debt-equity ratios of 70 percent or more, and a large percentage of our farmers have absolutely no debt but operate entirely on their own cash assets.

Jan 1, 1985

By Thomas V. Falkie

In bygone days, the mineral engineer spent most of his/her time on the technical aspects of designing, building, and managing mineral operations. In the last few decades, mostly since the 1960s, increasing amounts of engineering man power and time are spent dealing with federal, state, and local government agencies, laws, and regulations. It is not possible to plan, design, build, or operate mines, mills, smelters, or even office buildings without detailed consideration of government regulations and permitting requirements dealing with environment, worker health and safety, etc. The four chapters of this section provide an overview of the social, legal, political, environmental, and health and safety aspects of mineral enterprise. The section sets the stage for the working engineer/geologist in industry, government, consulting, or academe and points the direction for more detailed study in each of these areas.

Jan 1, 2008

By Li Jiuping, Zhong Gang, Chen Yong Zhang, I. Michael Gowring

The Liaoning Dahuofang Reservoir Water Transfer Project is an important development for the Department of Water Resources of Liaoning Province in northeastern China. The 85.3 km water conduit will transport water from the Hun River downstream of the Huanren Reservoir to the outlet on the Suzi River leading to the Dahuofang Reservoir. The additional water is required to sustain the growing cities of Fushun, Shen-yang, Liaoyang, Anshan, Panjin and Yingkou. The project is divided into seven contracts. Three TBM contracts comprise almost 75% of the work and the others are drill and shoot. The focus of this paper is about the creditable TBM performances achieved and some of the problems encountered by Chinese contractors; notably two having had no previous TBM experience.

Jan 1, 2007

By Fathi Habashi

IT APPEARS that the phenomenon of ion exchange by which saline water was converted to sweet was known to Moses and Aristotle. However, the credit for the recognition of this process is generally attributed to Thompson (1850) and Way (1850), who reported that when a soil was treated with either ammonium sulfate or ammonium carbonate solution, most of the ammonia was adsorbed and calcium was released. It was later proved by Eichorn (1858) that the adsorption of ions from ground waters by clay constituents was a reversible process. The first attempts to utilize ion exchange phenomena was in the field of water softening around 1906, using natural and synthetic silicates. In 1935 Adams and Holmes in England observed that crushed phonograph records (phenol-formaldehyde and amine-formaldehyde resins) were capable of exchanging ions.

Jan 1, 1970

By R. L. Virta

Four companies mined ball call in four states in 2009, H.C. Spinks Clay Co. Inc. (owned by Lhoist Group), Kentucky-Tennessee Clay Co. (owned by Imerys Group), Old Hickory Clay Co. and Unimin Corp. Production, on the basis of preliminary data, was 820 kt (904,000 st) with an estimated value of $39.4 million. That was a 15-percent decrease in tonnage from 967 Mt (1.1 mil-lion st) with a value of $44.3 million that was produced in 2008. Tennessee was the top producing state with 59 percent of domestic production, followed by Texas, Mississippi and Kentucky. About 71 percent of production was airfloat, 18 perc

Jun 1, 2010

The last time Mining Engineering presented an issue with a special focus on Canadian Mining (ME, August 2008 pp. 28 to 40) things were going well. A feature story took a look at Xstrata?s Nickel Rim South Mine in Sudbury and the booming Canadian oil sands were discussed at length. Potash prices were soaring, large diamonds were being found and British Columbia was launching plans to find more workers. How things have changed in six short months. What began as a mortgage crisis grew into a credit crisis, then mutated into a financial crisis, that has taken its toll on the value of bonds, loans, stocks, real estate and commodities. Miners that were flying high on unprecedented commodity prices six months ago have begun scaling back with delays, shut downs and layoffs as they struggle to survive this most recent economic downturn.

Jan 1, 2009

By John T. Crawford

Open pit limit analysis techniques of various types have been utilized for many years to design ultimate pit surfaces. In the last 15 years there have been many advances in the development of sophisticated computer methods to aid this process. The extensive capability of the computer has led to multiple alternative approaches to problem solving. Computerized open pit limit analysis methods can be applied to a broad scope of long-range and intermediate-range mine planning and design questions. A single computer run develops a pit design from a set of data. A set of nonsequential runs is used to evaluate changes in pit slopes, property restraints, and mineral model variables. Ore reserve economic sensitivity and intermediate-range mining plans can be developed using sequential computer runs. Present value methods are incorporated by using iterative sequential techniques. Multiple ore processes, dump leaching credits, and the trade-off between open pit and underground mining can also be handled. Many of the applications described are representative of current practice. The remainder are suggested extensions.

Jan 1, 1979

By Michael Brittan

Diagnostic regression analysis has been used as a tool to improve the recovery efficiencies of numerous gold mills, yielding significant revenue increases. In the course of the analyses it has generally been found that ore head grade is a statistically dominant variable affecting the overall gold recovery. Higher grades invariably generate higher recoveries. Examples are given from several operations in the world's two largest gold producing countries, South Africa and the United States. The plants considered cover the treatment of both oxide and refractory ores. A simple generalized model is presented relating tails to head grade. Since ore grade variations are beyond operational control, operators should not be held accountable for decreases in recovery caused by lower head grades. Conversely, the ore must take credit for many a recovery increase. Rigorous metallurgical test work, feasibility analysis, production planning and budgeting should allow for recovery variations due to grade fluctuations. Since the phenomenon is a reflection of ore geology and mineralogy, which are ore specific, comparison of recoveries at different times or sites is not meaningful without a detailed understanding of the mineralogical constraints on gold liberation.

Jan 1, 1997

By Willard C. Lacy

Discovery of a mine is a complex affair. No mine is simply found but comes about through the efforts of many. It is difficult to establish "credit" when a mine is found and becomes a viable operation, or "guilt" when a mine is lost, goes bankrupt, or remains undeveloped. The story of the Toquepala and Cuajone developments entails various stages of: (1) discovery and recognition; (2) testing and innovation; (3) political and industrial negotiation and intrigue; and (4) finance, development, and operation. The Toquepala and Cuajone projects introduced innovative drilling techniques, were among the first major porphyry copper deposits to utilize induced polarization (1P)geophysical methods, were among the first deposits to undertake complete feasibility studies on drilled- out ore bodies, and were developed by the first large Western Hemisphere copper mining consortium. Many persons have contributed to the development of these two great deposits. Some of the names have been lost and certain contributions have gone unrecognized. I apologize for these omissions.

Jan 1, 1991

By Glenn L. Krum

Inflation has received much attention due to its effect on capital budgeting, associated cost overruns, and declining real profits. This study focuses on the effects of inflation on the evaluation of a mining investment and the estimation of a mining project's revenues. The study indicates that the best method for estimating future returns is the fore- cast dollar scheme. In this scheme, the metal price was held constant, and the operating costs were "inflated" along a historical regression line. The conclusion was reached by comparing the "actual" performance of a 3000 tpd (tonnes per day) lead mine model with 'its estimated performance during four time periods (1950-1960, 1955-1965, 1960-1970, 1965-1975). The individual data files for each time period and estimating method (6 files by 4 time periods) were pro- cessed by a suite of cash flow computational and investment analysis sub- routines. The analysis presumed that the mine was part of a large corporation which could utilize the expensed, development and exploration costs and any investment tax credits, in the year that they were incurred.

Jan 1, 1979

By L. M. English, Y. J. Wang

When plotted as head vs. volume, fan curves start high and decrease with increasing volume, while mine head curves start low and rise with increasing volume. Their intersection is the system operating point. However, as every ventilation instructor knows, the fact that head loss is a negative number (debit) and fan head is an energy addition (credit) is often a stumbling block to student or audience comprehension since the curves seem to reflect the opposite. It is possible to use the intuitively correct curves- pressure losses as negative values and energy additions as positive values - and still obtain the correct operating point. Adding the two curves produces a third curve that intersects the x-axis at the operating point, the point at which the fan energy input exactly matches air circulation energy loss. Using this technique also makes it easier to account for outside influences on the system, such as natural ventilating pressure. With the standard approach, it is quite easy to add or subtract such influences to the wrong curve. This approach can be extended to the graphical solution of any series/parallel ventilation network. The results are the same, and the approach is logically consistent and less confusing.

Jan 1, 1999

By David D. Spencer

As in many other areas of the Mexican economy, the legal rules applicable to mining in Mexico have been changing fast. Mexico's mining sector is opening up to levels of international participation that were unforeseeable just a few years ago. Over the last several years, Mexico has made dramatic changes in its trade and investment policies. Many of these changes have their roots in the administrations of Miguel de la Madrid and perhaps even Jose Lopez Portillo. However, the current administration of President Carlos Salinas must be given credit for articulating, advancing, promulgating and implementing these changes. Just a few short years ago, few people believed Mexico would repeal so many of its restrictions on foreign investment and lower its average tariff level from something around 100% to less than 10%, where it is today. NAFTA and mining The North American Free Trade Agreement (NAFTA) is the most comprehensive international expression of Mexico's new policies. Except perhaps for the agreements establishing the European Union, NAFTA is the most detailed trade agreement ever written, consisting of about 2000 pages. The provisions of NAFTA with the greatest relevance to the mining industry include the chapters on investment and government procurement. Many mining companies may also find the temporary work provisions relevant. Finally, no discussion of NAFTA and the mining industry would be complete without some mention of the North American Agreement on Environmental Cooperation, the so-called Environmental Side Agreement.

Jan 1, 1994

By George Hope, Edward H. Smith

In late 1989, LAC Minerals purchased 65% of Bond International Gold and as a result became controlling shareholder of the El Indio Mine through Bond and San Jose. El Indio is a world class, complex sulphide gold deposit located in the hydrothermal alteration belt of the Andes mountains in the 4th Region of Chile. The mine is located in the high Andes about 185 km east of La Serena at an elevation of 4000 meters. The 1450 workers at El Indio live in the mine camp at 3200 m and on days off are bussed to La Serena. The El Indio mine was started in 1979 by St. Joe Minerals Corp., bought by Bond in 1987 and subsequently by LAC in 1989. The mine has produced 2.7 million oz. of gold, 9. 5 million oz. of silver and 170,000 t of copper since start of operation. The mill is currently operating at a rate of 2850 t/d and producing a copper/gold concentrate which is roasted to produce a copper/gold calcine and high quality, saleable crude As203• A small proportion of the precious metals are also produced as bullion from the leach circuit. Total production during 1989 was 224,197 ounces of gold, 1,309,342 ounces of silver and 26,968 tonnes of copper. The average cash cost of production for the period was U.S. $96 per ounce of gold, net of by-product credits. The average realized price was $5.30 per ounce of silver and $1.14 per pound of copper.

Jan 1, 1990

By Ben Ainsworth

I am going to discuss gold mining in Mexico during the last twenty centuries and try to suggest some of the futures that may develop in this industry in the next decade. Before I start this rapid review of such a long developing mining tradition, T must give credit to my sources. I an, talking here as an associate of Commoditi,c,s Reseflrch Unit Ltd. of London (better known as CRU) and as a principal of Ainsworth-Jenkins Holdings, an international mineral resource consultant group that has been exploring and deveJoping mining properties in Mexico and Central America for the last six years. CRU is the leading consultancy providing industry, governments and financial institu­tions with analysis and advice on the metals and the mining industries. They recently completed a three volume study entitled Gold Mining Opportunities in Mexico. This .<1tudy describes Mexico, the business environment, its geology and details its gold mining potential with property descriptions and maps. I have adopted and adapted the s11mmari.zed Mexican government statistics and rlrawn on some of the historical comments in these volumes. However, I do not have ti me (nor would it be appropriate) to be giving the details of the CRU work. Jorge Ordonez, whose shoes I am trying to fill today, was a major contributor to the study and it was an honour to be asked by Willem Beunderman, the Principal Editor, to step in when Jorge was unfortunately unable to be here. Jorge has been an enormous help to Ainsworth­Jenkins and a consistent friend of foreign investment in Mexico. Our own work in Mexico has allowed us to obtain a few useful in­sights into this most interesting slice 0f Mexican history.

Jan 1, 1992

By John V. Beall

A completed feasibility study executed by an independent agency can benefit a company in two ways. Inside the organization, it verifies the project staffs ideas and their concept of the facility. Outside the company, it can be utilized to obtain equity partners, debt financing, and other forms of credit. It is advisable to bring in a project execution contractor for the feasibility study. A project execution contractor is able to work with engineers to develop the project concept, process flowsheet, and best utilization of the site. By getting an early start on understanding a company&apos;s policies and working methods, a project execution contractor saves the company money since it does not have to go through the educational buildup twice. The contractor is a specialist in putting together a bankable document that can be taken to a financing source. It answers all the agency requirements on the first pass. In addition, the contractor can advise an owner on likely financing sources since he works on the worldwide market every day. A less obvious advantage of including the contractor in the study and predevelopment buildup stages is the importance of coordinating finance and technical input. The financing source influences equipment specifications, procurement, logistics, project schedule, cash flow, and liquidity. There are many surprises in store for any manager of a large international project involving worldwide financing and purchasing. The job does not have to be made more difficult by bringing in a contractor after all predevelopment steps are taken. The contractor can still work if the predevelopment steps have been done, even if he does not agree with them. But early contractor involvement is the preferable solution.

Jan 10, 1980

By Daniel W. Kappes

The 1.8 million tonne Itos tailings deposit is the result of sever­al years of processing by Comibol of the San Jose and ltos Mine ores at Oruro Bolivia. The historic flowsheet consisted of a flotation circuit in which silver-bearing galena and stibnite were concentrated. Approximately half the silver in the ore was not recovered, and the existing tailings contain slightly over 200 grams silver per tonne, in the form of complex sulfides of silver, antimony, lead, and other metals coating grains of pyrite. An extensive laboratory program was conducted to exam­ine conventional processing l)lethods such as cyanide leaching and regrinding followed by flotation. However, the silver-bear­ing sulfides are in intimate contact with the pyrite and the pyrite comprises 30% of the total tailings weight. Cyanide leaching recovers only 40% of the silver and the cyanide consumption is uneconomically high. Flotation produces an upgraded, but still uneconomic, concentrate. For this reason, chloride leaching had been evaluated by Comibol, and in the mid 1980's Comibol undertook an innova­tive test consisting of two 300 tonne field heap leaches using a cold chloride solution. The tests were partially successful, but could not be applied to the bulk of the tailings which are already ground to 50% minus 200 mesh. In 1992, Kappes, Cassiday & Associates undertook to develop a hot agitated chloride leach flowsheet, and is current­ly constructing a treatment plant under a turnkey contract from a Bolivian company, Baremsa, S.A. Using this process, 85% of the remaining silver can be recovered, with significant by-prod­uct credits from antimony and lead. The project features hot, agitated acidic chloride leaching, filtration, crystallization of lead chloride, and precipitation of metals using iron scrap. Arsenic is removed from the precipitate by caustic leaching, and minor metals by furnace refining. Antimony is recovered as the oxide by cupelation, and silver is poured as <lore from the cupel. Production rate will be 600 tonnes per day. Startup is scheduled for late 1995.

Jan 1, 1996

By Terry McNulty

There are many potential pitfalls in the commercialization of innovative technology. The failures often are remembered longer than the successes, thereby serving as deterrents to subsequent attempts. The mineral industry&apos;s future depends on effective innovation. So it is essential that the causes of failure are understood. Innovation can be examined equally well in the context of geophysics, geology or mining. However the author&apos;s experience has been in mineral processing and chemical engineering. So the following discussion is limited to processes and/or plants for producing mineral concentrates, metals or inorganic chemicals. More of what follows has to do with underachievement or failure than success. But this article demonstrates that there is a strong element of predictability in the former. Furthermore, it is a credit to the minerals industry and to the engineering profession that a very high percentage of projects succeed in achieving design capacity and forecast operating costs. Innovation means the introduction of something new. In this article, the words "innovative technology" are used broadly. They include new processes and novel combinations of established unit operations, as well as novel types of processing equipment or largest-ever equipment models. The discussion of project outcomes is based on personal experience or on published information. Citations are given for technical publications that provide either project information or insights into the methodology used to analyze project performance. However, specific projects have not been identified due to the rather negative connotations of some of the conclusions drawn about the less favorable outcomes.

Jan 1, 1998

By Harold A. Taylor

The first use of graphite is lost in the mists of time. It was used by primitive man to make drawings on the walls of caves and by the Egyptians to decorate pottery. As early as 1400 AD graphite crucibles were being made in the Haffnerzell District of Bavaria. Through the Middle Ages graphite was confused with other minerals, especially galena and molybdenite. Two common names that are still being used for the mineral are plumbago, meaning lead-silver, and black lead. The latter name implied that graphite is either composed of lead or at least contains a large percentage of it. Gessner is credited with having recognized it as a separate mineral in 1565, but its composition was not determined until 1779, when Scheele demonstrated that graphite oxidized to carbon dioxide, thus proving its carbon constitution. In 1789, Werner named it graphite from the Greek word graphein, meaning to write. The United States has long relied on foreign countries for its graphite supplies. This reliance has been due more to the lack of suitable domestic graphites than to any particular preference for buying minerals overseas. Sri Lankan graphites were imported as early as 1820, and Madagascar graphites have been imported since the properties on that island were opened up about a hundred years later. Mexico has long supplied the United States with most of its requirements for amorphous graphite.

Jan 1, 1994