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Estimation of operating costs in the nickel production industry requires a detailed analysis of material flows from mine to smelter to refinery. Despite the small number of nickel producers compared to other base metals, the existence of two very different ore types (sulphide and laterite) and a wide variety of mining and processing technologies make the identification of these flows of critical importance if an accurate global picture is to be obtained. Smelting and refining processes in nickel metallurgy have evolved with a high degree of adaptation to specific operating conditions in different locations. Overall costs are calculated by combining individual cost elements for each unit in production chains from mine to saleable metal product. The average cost of western world primary nickel production in 1995 was US$2.07/lb ($4560/tonne). Average operating costs remained virtually unchanged in the three years to 1995 after an 8.5 per cent fall in 1993, but a 3.9 per cent increase to $2.15/lb is expected for 1996. A major factor in this rise results from the lower prices of copper and cobalt this year, reducing the by-product credits available to major producers.

Jan 1, 1996

Until recently, nickel laterite projects have been largely ignored, due to their supposedly higher treatment costs compared with sulphides, and to their perceived processing difficulties. A number of laterite projects in the 1970s were abandoned because of high capital and operating costs, while others experienced severe technical difficulties. Conventional wisdom had it that laterites would not be exploited until most of the sulphide orebodies had been depleted. Why then, have Australian mining and exploration companies started a resurgence of interest in the treatment of nickel laterites? It all began with the Bulong project, which has been under study since 1987, while more recently two further projects, Murrin Murrin and Cawse, have been initiated and are being fast-tracked to take advantage of the current high nickel and cobalt prices. A further project in NSW, Syerston, has also been investigated at bench-scale, but no further development has yet been announced. All these projects have the following advantages: 1. Good location near a major mining centre and,reasonably close to power, water, roads, accommodation and a developed service industry. 2. Straightforward, low cost mining. 3. Low cost of acid or sulphur. 4. Good to very good cobalt credits. In addition, there have been significant technological developments in the design and operation of high pressure autoclaves and high rate thickeners, as well as solvent extraction and electrowinning technology. This has helped to decrease capital costs and technical risks, and has allowed the development of alternative flowsheets to the existing laterite operations (Taylor, 1996).

Jan 1, 1996

P.T. Freeport Indonesia's latest expansion has increased total mill throughput to 125,000 dry metric tonnes per day. The most recent expansion included the installation of a Semi Autogenous Mill designed to treat more ore than any other single SAG mill currently operating in the world. Also included in the expansion were two large ball mills, rougher and cleaner flotation including conventional and column cells and a regrind circuit. All equipment is supported by a modem distributed control system. This paper describes the design considerations, construction, commissioning and start-up of the SAG concentrator and support facilities and includes an overview of the oreflow and milling facilities.

Jan 1, 1996

Profiled on these pages are the eight RMCMI 1996 Scholarship Award winners. All eight winners were present as guests of the Institute at the June convention in Durango, Colorado. Each received recognition at the Institute Awards Luncheon Monday, July 1. 1996. Each state vice president sewed as the host for the collegiate winner and his firm provided travel and hotel expenses. In addition to receiving a plaque from the Scholarship Chairman, Alan Czarnowsky, each winner receives $1,000 tuition credit for the coming academic year, as well as transportation hotel lodging and meals at convention as guests of the Institute. Because this is a continuing award, the winners from the previous year also receive a $1.000 tuition credit in their senior year if recommended by the dean of the college or university and are full time students. A resident from each of the eight RMCMI member states is selected from among Board approved institutions. Criteria for these awards to be made in the spring annually is that the recipient (1) Is a full time sophomore student who will use the tuition credit during the junior year. (2) Be both a U.S. citizen and a resident of the member state. (3) Maintain good academic standing, be pursuing a degree in a mining related field and have an expressed interest in western coal as a possible career path. The scholarship program includes curricula other than in the mining departments, but in engineering disciplines, such as geology, mineral processing and metallurgy. Contributions to this worthy project are tax deductible to each individual RMCMI member or his firm. Through annual donations of $100 or more, the Patrons of the Institute fund the scholarship program. A listing or current donors is found elsewhere in this book. Donations to this worthwhile program are payable to RMCMI Scholarship and may be mailed to the RMCMI Office, 3000 Youngfield Street, Suite 324, Lakewood, Colorado 80215. Profiles of the 1996 Scholarship Winners follow. [ ] ARIZONA WINNER Michelle Begaye New Mexico Tech - Socorro. New Mexico Michelle Lisa Begaye plans to work in a mine near her Navajo Reservation after graduation. She would like to continue teaching the young in her community as she has been doing for the past few years. As a volunteer with the Natani' Trails, she takes at-risk students on wilderness experiences such as rafting, repelling, etc. Active in school, she played the trombone, was in speech and drama, played softball, and was the first female to play football as a right and left tackle. A member of National Honor Society in High Shool, she also made the Dean's List at Navajo Community College. Michelle will pursue a degree in Environmental Engineering when she transfers to New Mexico Tech this fall. [ ] COLORADO WINNER Nicole Albert Colorado School of Mines - Golden. Colorado Nicole is pursuing a BS in Mining Engineering with a Minor in Mineral Economics - and has already proven her serious intent with her many activities related to mining. She is a member of the Society of Women Engineers; Society of Mining, Metallurgy and Exploration; and has participated in two different projects related to mining, one of which was to clean up a mine tailings site. Nicole enjoys hunting, camping, fishing, softball and horses. Growing up with her father, working at a surface coal mine, sparked her interest in this industry.

Jan 1, 1996

By Mark Hollingworth

"There is general consensus that as the world continues to change at an ever-increasing pace, companies must continually adapt their operations in order to remain competitive. Those that change fast enough, survive; those that don’t, perish quickly. Today, we hear that it is not worth the time preparing corporate business plans as they are out-of-date before the ink is dry. Within the corporate environment of the 1990s, we must “think” strategically, be a “learning organization”, keep our costs low, focus on our core competencies, stay as flexible as possible and create value. So-called “sustainable competitive advantages” can be obsolete before a patent is issued — if its even worthwhile patenting the advancement. This is industry in the 1990s.Now, while all this radical change has been underway in the global industrial environment, what have Canada’s universities been doing to keep pace with the change affecting one of their major stakeholders? Have they adapted their products and services to suit the new market conditions? Have they built closer links to industry to try to understand how better to serve this important client? Do they welcome industry input as to how to redefine their mission, objectives, strategies or their course contents? Do their students graduate with skills ideally tailored for the global mining industry? In the era of communication, can they write high quality reports in English, never mind speak French or Spanish?In an effort to provide Canada’s engineering faculties with a “blueprint” for the future, the Canadian Academy of Engineering pre-pared a report entitled “Engineering Education in Canadian Universities”, published in August1993, which concluded with the following recommendations:"

Jan 1, 1996

By Mark Kramer

This paper is limited to treatment of bottom and fly ash waste resulting from WTE and RTE Cogeneration plants, commonly known as trash burners. The body of the paper defines waste generation and conventional treatment schemes. This paper does not identify a best treatment, however, it does offer a general perspective of the treatments to lead the reader to further investigation. Advantages and disadvantages of the ash treatments Is discussed in each treatment section.

Jan 1, 1996

By James M. Barker

Industrial minerals are critical to most aspects of modern society. They are pervasive in both industry and in everyone's lives (McVey, 1989; Barsotti, 1993). They are also the dominant class of minerals produced in the United States but this fact is little known outside the industry. For example, in 1993 (U.S. Bureau of Mines, 1995, table 1) industrial mineral dollar value was double that of metals ($20.86 billion vs. $10.88 billion) and employment levels were nearly so (74,000 vs. 40,000). A further difference is that transportation tends to dominate production costs (FOB end user) whereas they are much less significant in other mining ventures or other industries. Finally, metal mines are more concentrated west of the Mississippi; industrial mineral operations are more prevalent to the east (U.S. Bureau of Mines, 1995, p. 16-17). The significance of transport cost is discussed in Part 2, which is essentially Barker and Austin, 1995. Part 1 will update and expand portions of Barker and Austin (1995) and provide a more detailed discussion of import/export relationships using a China/United States reference point because of China's dramatic influence on some industrial mineral markets since the mid-1980s (barite, etc.).

Jan 1, 1996

Explosives are used to mine coal. Any blast results in three size categories of products, namely over-, middle-, and under-size. Boulders can still be broken smaller in further operations after blasting. The under-size, for instance coal fines, negatively affects the mining efficiency. Their reduction ensures better returns. The paper concerns investigations aimed at reducing coal fines' generation. Inherent fractures are identified as one of source of fines. The discussion is therefore centered on establishing a relationship between the fracture occurrence, the explosive properties and the blast outputs evaluated in terms of the fines generated.

Jan 1, 1996

By Amir Rehmat

The Institute of Gas Technology has developed a fluidized-bed process for recovering direct reduced iron from blast furnace flue dust a material currently considered to be a waste from the iron and steel industry. In the process, a portion of the carbon in the flue dust is combusted to supply energy for the endothermic reaction between carbon and steam. The reaction produces reducing gases comprised of carbon monoxide and hydrogen both of which react with iron oxides to produce reduced iron. Up to 95 percent of the iron oxides contained in the waste stream can be reduced to elemental iron. The vitiated reducing gases emanating from the process can be used as fuel in the plant. The yield of iron depends upon the quantity of iron oxide present in the flue dust and generally ranges from 20 to 30 percent of the waste stream. The investment cost estimated for a single processing train dedicated to one steel plant can be recovered in less than one year.

Jan 1, 1996

By G. M. Bernard

The Andacollo gold mine is located near the small town of Andacollo, Chile (population 14,000) in the fourth region. It is approximately 35 miles by paved road from the coastal city of La Serena, and Santiago lies about 300 miles to the south (see map.) Site elevation varies between 3300 feet and 4200 feet. The climate at the site is moderate but arid, with an average annual rainfall of only five inches. Because there is little rain, and the temperature varies only a few degrees (57"F to 75°F); there are no freezing, solution dilution, or pad saturation problems. The climatic conditions are ideal for heap leaching.

Jan 1, 1996

By D. Puckett

The feasibility of maintaining equipment location, personnel location and vital statistics in surface and underground mining operations has increased with advances in radio frequency identification (RFID) technology. The paper addresses the use of this technology, relatively new in the mining industry, to track surface equipment in mine pits, loading points, and processing facilities. Specific applications are discussed including a simplified and a complex truck tracking system and an automatic pit ticket system. The paper concludes with a discussion of the future possibilities of RFID technology in mining, such as monitoring biofeedback of personnel (heart and respiration rate, body temperature, exertion level, etc.) repetitious movements to study work habits, and logging air quality via personnel sensors.

Jan 1, 1996

By B. W. Steele

"Dofasco began operations in 1912 as a steel foundry located in Hamilton, Ontario. Today, Dofasco is a fully integrated mill that manufactures hot rolled, cold rolled, galvanized and tinplate steels. Customers include the automotive, construction, tubular, manufacturing, appliance, packaging and steel ser-vice centre industries. Raw steel production and purchased semi-finished steel processed in1994 was 3.5 million net tonnes. Dofasco employs 7300 people at its Hamilton facility.Environmental management at Dofasco is guided by its environment policy and associated commitments. This paper discusses Dofasco’s responsibility for its products as it relates to these commitments. Dofasco is com-mitted to:n the principles of sustainable development that require that activities be conducted in a manner that provides for the present without compromising the ability of future generations to meet their needs. These principles will be integrated into product design, manufacturing and business planning;n managing renewable and non-renewable resources through the responsible application of reduce, reuse, and recycle principles;n minimizing any potential impact of its operations and products on the environment, employees, customers and the community;n continuous improvement of the effectiveness and integrity of our environmental management systems;n developing understanding among all employees about their responsibilities, and assigning the necessary authority; andn meeting the standards set by relevant legislation and international agreements through participation with governments and the diligent application of economically feasible and scientifically sound methods and technologies."

Jan 1, 1996

By J. D. McAteer

It is widely agreed throughout the mining community that federal mine safety and health legislation administered by the Mine Safety and Health Administration (MSHA) deserves significant credit for the past quarter-century's remarkable improvements in miner safety and health. Recently, however, it has been suggested that the mining industry in the United States has now evolved to a point that current mine safety and health law may be obsolete. This proposition deserves attention. Today, I propose to give it the close logical scrutiny that is its due. I conclude that the obsolescence of current mine safety and health law is not supported by the evidence. The existing mine safety and health law continues to serve as a critically important supplement to mine operators' safety programs at a modest cost to the taxpayer. At the same time, trends in a changing industry do call for responsive adaptations in the Federal mine safety and health program. I will argue that timely and appropriate responses to changing needs can be accomplished within the framework of existing legislation, provided federal officials avail themselves of the flexibility provided by existing law.

Jan 1, 1996

By Peter K. Everett

One of the major driving forces behind the development of the Intec Copper Process has been the increasingly stringent regulations governing SO2 emissions and, in some parts of the world, a declining H2SO4 market. Other incentives include operating cost (9.2 US c/lb Cu), capital cost (US $1400/annual tonne Cu compared with smelter cost of US$3-4000/annual tonne Cu) and the ability to treat low grade and contaminated concentrates. With such advantageous features, widespread use of the process is expected over time, leading to the production of large amounts of residues containing around 25% elemental sulfur, together with approximately 50-60 % akaganeite (FeOOH) and the ganggue minerals originally present in the concentrate feed. This paper briefly describes the Intec process chemistry involved in the formation of elemental sulfur, thereby avoiding atmospheric sulfur dioxide pollution, and the investigations to be carried out either to extract it or to turn the residue into a valuable by-product while minimising any adverse environmental effects, The process is being developed jointly by a group of fifteen major international mining companies.

Jan 1, 1996

By Jeffrey C. Hillman

The need to recruit locally produced engineers by the South African Mining Industry led to the Engineering Faculty at the University of the Witwatersrand developing a number of academic bridging initiatives for educationally disadvantaged students. The graduation rate achieved during the initial five years of operation by the most successful of these programmes has been on a par with that of al other students but the performance of subsequent intakes has declined to such an extent that the continuance of this scheme could now be at risk. One reason for this reduction in throughput is that many of the applicants for the increasing number of mining bursaries have been more interested in the bursary than the profession and have either failed or dropped out due to a lack of application and motivation. This will have serious consequences for both Wits and the Industry if it continues and some method of identifying unsuitable or suspect applicants needs to be introduced as a mater of urgency. It is recommended that an introductory course be set up at a working mine that would be run under the auspices of Wits, as a joint venture with industry, and include a level of academic input that would provide both bridging needs and certain first year credits. The final form of this course will require extensive consultation with al parties but needs to be completed before the end of 1996. It is further recommended that the advertising and promotion of mining careers be expanded and much improved.

Jan 1, 1996

By Alan E. Renshaw

"This paper is a practical overview of ways to reduce cost in the design and operation of an Arctic mine. The economically important issues of the Arctic mine that will be addressed include: permafrost and the active zone in general terms; road building in and over permafrost; Arctic geotechnical mine design considerations; pit dewatering techniques in sub-zero temperatures; and blasting frozen materials with techniques to obtain optimal results. A final section on a few special topics conclude this paper.Although this paper primarily refers to near surface conditions more closely associated to an Arctic surface mine, many of the ideas and techniques contained in the paper also apply to the surface construction of an Arctic underground mine."

Jan 1, 1996

By M. J. Hrebar

A study was conducted to evaluate the applicability of large wheel loaders (Cat 994 class) as primary loading equipment in open pit iron ore operations. Field visits were made to taconite and gold mines that used large wheel loaders. Data were gathered on loader selection rationale; operating and maintenance experience; and production, availability, and cost information. Brief time studies were conducted to indicate machine performance and utilization. The paper summarizes the field data and includes economic comparisons of wheel loaders versus cable shovels in an iron ore application.

Jan 1, 1996

By N. A. Warner

Fundamental studies on the reaction of limestone or dolomite at high temperature with S02 are extended to the realm of large scale primary copper smelting. Whereas flue gas desulfurisation in the electric power utility industry is concerned with S02 concentrations normally less than 0.5 percent, high temperature smelting gases can have S02 levels approaching 100 percent. The reaction involved is very exothermic so proposals are made in this paper for returning the heat generated in sulfur fixation directly back to the copper smelting process. This integration leads to metal production with lower energy requirements than current technology. The anhydrite reaction product can either be disposed of locally with minimum adverse environmental impact or upgraded to a value-added product. It is assumed, of course, that no viable market exists to support sulfuric acid production.

Jan 1, 1996

By H. Sevim

Three transportation and handling alternatives for delivering dry coal combustion residues from power plants to underground coal mines were evaluated technically and economically. The objective was to transport, handle, and inject the residues into the old workings of the mine at a minimum cost. This objective was accomplished in two steps: I) Simulation models were developed and utilized in identifying technically feasible designs in each alternative, 2) Technically feasible designs were economically evaluated to obtain the cost-per-ton of material transported. The designs that provided the minimum cost-per-ton were declared optimal An analysis was conducted for varying distances and tonnages to reveal favorable operating ranges of each alternative.

Jan 1, 1996

By Michael F. Kitto

The production of sulphuric acid at base metals smelters is predominantly an involuntary activity and now comprises approximately 17% of all-forms sulphur supply in world terms. The majority of elemental sulphur is also produced involuntarily in response to environmental regulations regarding emissions from hydrocarbon processing plants. The paper examines the points of similarity and difference in the sulphur and smelter acid markets, and reviews their interactions. The reasons for the merchant acid market collapse of 1993 are analyzed, and the prospects of a recurrence are considered.

Jan 1, 1996