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By P. N. H. Bhakta, X. P. V. Lei

The U.S. Bureau of Mines developed an alkaline oxidative pretreatment to increase the recovery of gold from refractory sulfide ores containing arsenopyrite (FeAsS) and/or pyrite (FeS2). Pretreatment of a low grade ore containing 0.4% FeAsS, 3.5% FeS2, and 2.74g/mt Au with 1.2m NaOH, 40 psig o2, 100° C, and 4 hr in a 2-L autoclave resulted in 94 to 96% sulfide oxidation. cyanidation of the pretreated residue resulted in 88% Au extraction compared to <20% Au extraction for untreated ore. Cyanide consumption was 0.25 kg NaCN per metric ton of ore. A flowsheet for treating sulfidic low-grade gold ore is proposed.

Jan 1, 1990

"In conjunction with Banick Mercur , Wright Engineers Limited designed the first multi-stage aqueous pressure oxidation system in an alkaline environment in North America. A three-stage slurry heating and slurry pressure let-down with heat recovery was an innovative approach to the problem of high energy cost with the low sulphur content of the ore. The design of this system required solving a number of problems associated with heating and pumping of slurries at pressures up to 3230 kPa and temperatures in excess of 220°C. Wright received an Award of Merit in October 1989, from the Canadian Consulting Engineering Awards Committee in the Process Category for its design of the Mercur pressure oxidation system.The Mercur Mine is located at the south end of the Oquirrh Mountains in Tooele County about 65 miles by road from Salt Lake City, Utah, U.S.A. The original mill was designed to process 5000 tpd of oxidized gold ore in a carbon-in-leach (CIL) circuit. A new ore treatment system was required to treat the substantial quantities of refractory ore reserves which could not be treated economically in the existing mill. The new pressure oxidation circuit makes the refractory ore amenable to gold recovery by oxidation of the sulphides contained in the ore .Wright Engineers Limited was commissioned by Barrick Mercur Gold Mine Ltd ., a wholly-owned subsidiary of American Barrick Resources, to design the pressure oxidation facility. This followed completion of a feasibility study by Wright which showed that the project was technically and economically viable.Work on the feasibility study began in 1986, detail design commenced in February 1987, and was completed in December 1987. Mechanical installation was completed in January 1988, and slurry feed began in February 1988. The plant has operated since June 1988 without major interruption . Wright was responsible for engineering, procurement and construction management for the addition of the 750 tpd pressure oxidation circuit to the existing mill and also had commissioning responsibility.Major unit processes involved in the pressure oxidation facility are ore thickening, three-stage slurry preheating, pressure oxidation and three-stage slurry cooling with heat recovery, stearn generation, propane and oxygen storage and a video graphic display process control system were included in the scope as process anciliaries.The pressure oxidation increases gold recovery from the refractory ore by conventional CIL from as low as 35% to more than 86070. A patent has been granted for the process."

Jan 1, 1989

By P. T. O'Kane

"INTRODUCTION Wright Engineers Limited is active and has extensive experience in the design of pressure oxidation plants for the treatment of refractory gold ore and concentrate. In addition to the Mercur oxidation facility, similar projects undertaken during the last few years include the 3000 ton per day acid oxidation plant for the Getchell Mine, Nevada, a concentrate treatment autoclave for Asamera in 1984 and a feasibility study of a 50-tons per day autoclave plant for Consolidated Professor's Duport property in Ontario. The Equity Silver antimony and arsenic precipitation autoclaves, and the low pressure autoclaves at Key Lake Uranium in Northern Saskatchewan were also engineered by Wright in recent years.In August 1986, Wright was retained by Barrick Resources (U.S.A.) Inc. to add a 750 tpd pressure oxidation circuit to the existing mill at their Mercur Gold Mine, Utah. This paper describes this facility and outlines the start up in the spring of 1988 and subsequent successful operation. MERCUR OPERATION The Barrick Mercur Gold Mine is located at the south end of the Oquirrh Mountains in Tooele County, Utah. The carbon-in-leach (CIL) process plant camnenced operation in 1983 with a design throughput of 3000 tpd and has since been expanded to handle rrore than 5000 tpd. 'IWo ore types are mined, an oxide ore and a refractory ore, which is by Barrick's definition ""an ore from which less than 60% gold extraction is achieved by a standard CIL amenability test."" Typical of many sulphidic/carbonaceous ores, the refractory gold does not respond well to the cyanidation process. As a result, refractory ore has been stockpiled since the start of mining. As of June 1987, Mercur had about 570,000 tons of refractory ore stockpiled and 5.7 million tons of proven and probable reserves, grading 0.06 oz/t including approximately 3.5 million tons of tailings from the previous operation grading 0.55 oz/t. In 1986, Barrick decided to build a 750 ton per day pressure oxidation plant to process these ores. The process, for which a patent was granted, comprises pressure oxidation of the sulphides in an alkaline environment. It was developed in 1981 but was set aside in preference of a CIL plant treating only oxide ores by the previous owner of the property, Getty Oil. This process is capable of increasing gold recovery from the refractory ore from as low as 35% by conventional CIL processing to more than 85%. In 1986 Wright Engineers was engaged to undertake a feasibility study based on batch testing. This lead to a decision by Barrick Mercur later that year to build the commercial pressure oxidation plant. Wright was awarded the contract for engineering, procurement, construction managernent and commissioning in March 1987. The plant was mechanically complete in January 28, 1988, and was in operation by February 1988."

Jan 1, 1989

By Peng Qian, Xiao Li, Guoyan Fu, Peiwei Han, Yongliang Wang, Shufeng Ye

"Arsenic removal from high arsenic gold concentrate is conducive to increase the mineral value and realize the mineral comprehensive utilization. This study investigated the alkaline pressure oxidation leaching (APOL) of an arsenical gold concentrate in lower temperature to separate the arsenic into filtrate. The effects of temperature, NaOH concentration, solid-liquid ratio, reaction pressure and stirring speed on the leaching efficiency were investigated, and the characteristics of the gold concentrate and leaching residues were evaluated using XRD and SEM analysis methods. The obtained results showed that by using lower temperature (<60?) it is possible to avoid the production of elemental sulfur during the leaching process, which is benefit for the oxidation of arsenopyrite; When the reaction was carried out under appropriate conditions, more than 98% of the arsenic will be extracted into the filtrate as the form of arsenate or thioarsenate. INTRODUCTION In recent years, there has been considerable interest in the recovery of gold from refractory arsenical gold ore. The arsenic in this kind of ore usually exists as the form of arsenopyrite, and the gold surrounded by arsenopyrite exists as the form of fine particles, which will give many difficulties to metallurgical work. When the content of arsenic in the gold ore is more than 0.5%, it will seriously penalize the smelting efficiency (Ruiz et al., 2014). So pretreatment of the refractory gold ore is necessary to obtain the largest economic value and environmental benefits (Balaz et al., 2000). The oxidation pretreatment processes mainly include roasting oxidation, pressure oxidation, chemical treatment and biological treatment (Ann et al., 1992; Kou and Chen, 2012; Tongamp et al., 2010; Fernandez et al., 1995; Lin and Zheng, 1996). Among them, the roasting oxidation and pressure oxidation are the more ordinary processes in industry. The roasting oxidation process is the mature and adaptable technology, but the production of waste gas containing sulfur and arsenic will pollute the environment. The pressure oxidation method possesses certain metallurgical and environmental advantages, and can efficiently decompose the mineral. According to the different solution media, the pretreatment can be divided into alkaline and acidic pressure leaching pretreatments (Papangelakis and Demopoulos, 1990; Hiskey and Sanchez, 1995). The acidic pressure oxidation method has been used in most smelting plants for high arsenic gold ore pretreatment, while the alkaline pressure oxidation is still not widely applied. Compared with the acidic pressure oxidation, the alkaline pressure oxidation can be realized under lower temperatures."

Jan 1, 2018

By V. G. Papangelakis, A. Dani

"Alkaline pressure oxidation, particularly in the presence of trona as additive, can be used to oxidize high carbonate refractory gold ores as it prevents the formation of CO2 in the autoclave. However, the presence of silica in the ore can lead to the encapsulation of pyrite due to the solubility of silica in alkaline solutions and its subsequent reprecipitation on the reacting pyrite surface, leading to the formation of a passive layer. This fundamental study investigates the chemical composition and thickness of the passive layer on a rotating pyrite disk using XPS and SEM, as a function of process conditions at 230°C, in an aqueous slurry containing silica sand, sodium carbonate and calcium carbonate under 100 psi of oxygen overpressure.INTRODUCTIONAlkaline pressure oxidation (POX) has been used successfully to treat high carbonate refractory gold ores, which contain carbonates in addition to sulphides, most notably at Mercur and Goldstrike mines operated by Barrick Gold. There are several advantages to using alkaline POX over its acid counterpart, especially due to high carbonate content. First, it eliminates the production of CO2 in the autoclave without resorting to pre-acidification, which allows for high oxygen utilization. Second, alkaline POX suppresses the formation of elemental sulphur and intermediate sulphur oxyanions (such as thiosulphates and dithionates), which reduce gold recovery. Third, the use of sodium hydroxide or salts prevents the formation of anhydrite scale by forming soluble sodium sulphate. Other advantages are the use of cheaper materials of construction and the formation of non-acidic residue that do not require further treatment prior to cyanidation (Thomas, 2005).Sodium carbonate in particular is a promising reagent for alkaline POX because it was shown to significantly accelerate the kinetics of pyrite oxidation by molecular oxygen, when compared to other reagents such as sodium hydroxide, sodium borate and calcium hydroxide. This has been attributed to the following factors: a) the faster oxidation kinetics of Fe2+-CO3 complexes compared to Fe2+ oxidation, b) the buffering effect of carbonate ions on the acidic pyrite surface, and c) the increased solubility of oxidizing Fe(III) species due to carbonate complexation (Caldeira, 2010)."

Jan 1, 2012

By G. X. Wang, R. E. Siemens, M. C. Fuerstenau, D. Chandra

Soda roasting of concentrates from Mouat, Montana, was performed in a temperature range of 450 to 650 degrees C and chromium was solubilised by water leaching at room temperature. It was found that high extraction yields of chromium were primarily dependent on the conversion of Cr3+ to Cr6+ during the roasting step, and this was enhanced significantly by simple attrition of chromite particles during this step. Gangue impurities (mainly Si) were more detrimental to Cr extraction than lattice impurities such as Al or Mg. It appears that oxidation proceeds into grains along a preferred crystallographic plane in the cubic lattice of the chromite. The effects of roasting time, temperature, soda to chromite ratio and particle size on the extraction of chromium are presented

Jun 18, 1905

By C. G. Anderson

Alkaline sulfide leaching technology (i.e. ASL) has been studied, presented and published throughout the literature and utilized in some current engineering studies. Yet, the actual industrial applications are very few and the knowledge about these is very limited. Hence, a large gap between the laboratory, publications, engineering studies, and the actual industrial plant exists. Recent studies of ASL applied to copper enargite concentrates definitively bear out this dichotomy. Hence, this paper will seek to dispel the common misperceptions that continue to surround the selective industrial ASL hydrometallurgical technology. For edification of the reader, a listing of ten common misconceptions and myths is listed. As well, ASL history, fundamental aspects and a new flowsheet application for simultaneous gold and high purity antimony oxide production from low grade materials is included. The associated estimated economic considerations are also included to heighten enlightenment about the application of this industrially proven technology.

Jan 1, 2014

By Suzzann Nordwick

The metallurgical treatment of mercury-containing materials for precious or base metals recovery imposes many processing and environmental challenges. Mercury is usually present as elemental or cinnabar. Historically, mercury has been removed from mined ores pyrometallurgically by roasting, but hydrometallurgical methods have also been employed. For example, alkaline sodium sulfide solution acts as an universal solvent for most mercury compounds. While, most other metals are highly insoluble in this solution. This allows for a high degree of selective separation of mercury from other metals with the exception of tin, antimony and arsenic. Mercury leached with a solution of sodium hydroxide and sodium sulfide or sulfur can be re-covered by cementation or stabilized through sulfide precipitation. Hydrometallurgical technology for the pretreatment of mercury removal from gold, silver, and base metal ores using alkaline sulfide leaching will be discussed with a focus on alkaline sulfide leaching of mercury sulfide-containing materials.

Jan 1, 2003

By J. Gogal

Cameco's Cigar Lake Operation (CLO) started commercial uranium ore production in 2015. Initial mining was focused in areas of the ore body with relatively low concentrations of elements of concern (EOCs). As mining progressed into areas of the ore body that were richer in EOCs, some statistically significant behavior of certain analytes was noted in the water treatment circuits. It was ultimately found that the CLO ore body natively hosts numerous alkyl arsine compounds in addition to inorganic arsenide minerals. The alkyl arsines were found to be recalcitrant to typical adsorption on ferrihydrite, with the degree of recalcitrance associated with the degree of alkylation. A number of changes to the process circuits and water balance were performed and planned in order to inhibit the transport of alkyl arsines from the ore stream into the process water stream, and to optimize the overall site water usage. In some instances, the interactions of equipment in conjoined circuits of the process had controlling effects on the behavior of the overall circuit. Work continues to iterate upon the capital design features in order to further tighten the water balance, and to optimize water usage and operating costs.

Jan 1, 2020

By R. Chowdhury

Axis House manufactures and supplies alkylhydroxamate reagent of various carbon chain lengths for application in flotation of oxide copper and other minerals. As part of reagent performance improvement the structural factors of hydroxamate are examined by various analytical tools in particular with X-ray diffraction of single crystals. In a recent publication, the structure of n-octylhydroxamic acid and its corresponding potassium salt are presented with findings of hydroxamic functional group geometric preference, H-bonding, keto-enol tautomerisation, acid-salt aggregation and alignment of carbon chain. In this paper an example of branched alkylhydroxamate 3, 5, 5-trimethylhexylhydroxamate will be presented and compared with the result of linear alkylhydroxamate.

Sep 1, 2012

By Stanley Lefond

The health of the industrial minerals industry appears to be improving year by year. In fact, preliminary information suggests that only three commodities (asbestos, bromine, and sulfur-other) failed to show a production gain in 1984 over 1983. In 1983, 10 commodities failed to post gains and six remained constant. The total value of industrial mineral production in 1984 was $16.7 billion, up $1.4 billion from 1983. Cement, clays, gypsum, and crushed stone production increased. Since these are used in housing and construction, this suggests these industries are moving out of their recent doldrums. Barite and clay production also improved in 1984. Local US barite production, however, still has a long way to go to attain the 1981 high of 2.6 Mt (2.9 million st). Barite imports remain high. But they are not as high as the 1982 importation of 2 Mt (2.3 million st). Bentonite production in 1984 increased 20% in volume and 25% in value over the previous year. This suggests improvement in the drilling industry and an increase in demand for iron ore pelletizing grades. All in all, the industrial mineral industry is alive and well. And it shows signs of great improvement in the next few years. Many thanks to those industrial mineral technical committee members for their assistance in assembling this industrial minerals review: M. F. Dibble, H. W. Allen, G. H. Gallup, S. G. Ampian, D. W. L. Spry, H. G. Fleshman, and L. J. Czel.

Jan 5, 1985

By Sean Paterson

The purpose of this paper is to demonstrate a method of delaying and loading a shot. Since entering the construction industry, I have learned that cover is needed on a lot of blasts. When in close having to cover shots was new to me and it seemed time consuming and wastefull. Until I really needed it and didn’t have it. So What To Do??? Remember that safety comes first, if you have concerns cover it. Even if you have to sit on your shot all night to wait for cover. This method is not a replacement for cover, but it will help keep your rock down. Do not bet your life, others lives or your career on it.

Jan 1, 2001

By Walter Miller

NOW, after a year&apos;s continued impact of war, the task of the petroleum-refining industry stands out clearly and looms up in larger aspect. This time it is not, as it was so largely in the first World War, simply a matter of increased quantity- more and more of the same petroleum products that had substantially been standard for years. In this era the emphasis is largely on newer and improved materials which had been produced, if at all, in comparatively insignificant quantities, and for which manufacturing equipment was not available on a large scale. At the beginning of 1942 four great product needs (besides a number of lesser one-) confronted the industry: 100-octane aviation gasoline, toluene for T.N.T. production, high-quality lubricating oils for aviation and Army equipment service, and petroleum chemicals for synthetic rubber manufacture.

Jan 1, 1943

By Stanly A. Easton

SEVEN years ago there was installed in the hospital of the Bunker Hill & Sullivan Mining & Concentrating Co. at Kellogg, Idaho, an ultra-violet ray quartz lamp, the standard equipment which is found everywhere in the offices of physicians and among usual hospital equipment. The use of this lamp was con- fined largely to treatment of pathological cases, still treatment of under-nourished children, run-down anemic people, both men and women, and, as a general tonic, was part of the routine hospital procedure. At the latitude of the Ceur d&apos;Alene district and especially because of the position of the towns in deep canyons, with much overcast and cloudy weather, sunshine is not plentiful at any time of the year; for many of the winter months there is scarcely any. Underground workers, particularly during the winter, have little sun- shine; it is not unusual to have none at all for weeks at a time. Treatment by the ultra-violet ray lamp in the hospital has resulted in many extraordinary benefits but the use of the lamp is expensive and limited. Some weeks ago attention was directed to the automatic solarium equipment of the Burdick Corporation. The doctors strongly recommended the increased use of the ultra-violet lamp for its curative powers and tonic effects, urging that it be made accessible to all employees. Real interest was . . also displayed by employees with the possibility of securing ultra-violet ray treatment for themselves and families under better conditions than it was possible to have by the limited use of the lamp at the hospital. This resulted in the installation of the so-called sun room or automatic solarium as an adjunct to the mine change-house. An annex was built to the change-house, with dressing rooms for women, children and men from other departments, and the outfit put into use on Sept. 5, 1929. The installation consists of an escalator, or

Jan 1, 1929

By J. Humphrey

Introduction The weight of a Mining Truck can be affected by field modifications, the selection of items like tires, rims or even the conditions in which it operates. Truck performance and the compliance with a number of ISO standards, e.g. braking, steering and ROPS are dependent on truck weight. It is critical that truck owners understand the impact of changes in weight1. What makes this even more difficult for owners to evaluate is that there is no standard terminology or definitions for Mining Truck weights. This paper discusses and defines weight terminology, how it applies to performance and standards and the impact on the application of Mining Trucks.

Jan 1, 2007

IN this paper the author&apos;s intention is to convey a brief resume of the lead flotation treatment and lead flotation machines, which have replaced the May jigs and Wilfley tables at the plant of the North Broken Hill Ltd., and converted this mill into an all-flotation plant.Attention is directed to the fact that this drastic change from semi-gravity to all-flotation treatment, has been successfully accomplished without resorting to finer grinding than that previously in vogue for Wilfley table concentration, viz.: 10% to 16% plus 40-mesh I.M.M. screen.From the figures now available it is manifest that the scheme of all-flotation concentration-new as regards its successful application to Broken Hill ores is resulting in considerably higher-grade lead concentrates, and is substantially decreasing charges for labour, stores, and maintenance.The new treatment is far-reaching in its simplification of plant, as evidenced by the idle jigs and tables, and the results being obtained by North Broken Hill Ltd. may possibly influence metallurgical practice generally in Broken Hill.The outstanding features of the treatment are:(1) The coarseness, and high grade of lead concentrates obtainable.(2) The low time factor required for flotation.(3) The plant capacity, and the simplicity of its operation.(4) The low horse-power consumption.(5) The small cost for reagents used (not exceeding 3d. per ton of ore).

Jan 1, 1930

Author&apos;s Note: Since the paper on &quot;All-Flotation at North Broken Hill Limited&quot; was read and discussed, the metallurgical results obtained have conclusively justified the adoption of the All-Flotation treatment.At present the shipping grades of lead concentrate produced from North mine ore range between 74% and 75% Pb, carrying approximately 43 oz. Ag and 4.5%-5% Zn. The lead recovery in lead concentrate is recording 95%-96% of the lead content of crude ore, and the milling and treatment cost on 6400 tons crude ore perweek of 96 hours has dropped to 6s. 3.6d. per ton on ore. With an increased ore tonnage, and with a new mill, considerable further reduction in costs is certain.New flotation machines, with 30 in. vertical depth of overflow (instead of 42 in. depth), are now being tried for the secondary granular treatment, with advantageous results. The treatment to-day is practically the same as that outlined in the paper, excepting that additional concentrate is returned for retreatment in the existing units.(Signed) A. LOWRY.Mr. T. A. READ: The author states (page 356 of Proceedings, No. 79), &quot;The sulphide ore itself was then comparatively coarsegrained, a fact which permitted ready concentration of the galena contents by means of jigs, tables, vanners, etc.&quot;

Jan 1, 1931

By Walter Durst

On October 16, 1978, the Harnback open cut of Rheinische Braunkohlenwerke, the largest open cut ever planned, was officially put into operation. It will outperform all of the large open cuts known at present, both in its dimensions and in its annual output of overburden and coal. Present plans are to commence coal mining in 1983, although target production will only be achieved in 1995when the annual output will be 50 million tons of coal. Considering an overburden: coal ratio of 6: 1, this will involve the removal of approximately 300 million bank cubic metres of overburden. For overburden removal and coal mining, this open cut will use bucket-wheel excavators exclusively. It is planned to employ eight excavators with a daily output of 240,000 bank cubic metres each (Fig. 1). The transport of the overburden and coal to the dump and the power station, respectively, will be effected by 30Q0-mm-wide conveyors, running at a speed of 6 m/sec. The overburden will be dumped by spreaders having a boom length of 100 m, capable of dumping 240,000 bank cubic metres per day (Fig. 2). Such giants, of course, can only be used for extreme conditions . Their employment indicates that huge quantities of material can be handled economically for long periods. However, the use of bucket-wheel excavators is economic when daily outputs of 5,000 bank cubic metres are involved, in particular if direct backcasting of the overburden is not possible.

Jan 1, 1979

By A. G. Yapo, T. W. Camm

"All-in sustaining cost is a metric used by mining companies to reflect the cost of gold mining in a consistent format useful to both investors and mining professionals. Cost reporting focused on the direct cost of mining and processing ore was summarized in the non-GAAP cash cost developed by the Gold Institute in 1996. In 2013, a group of mining companies, working with the World Gold Council, developed a more inclusive approach to reporting costs designed to solve the dilemma of showing a more comprehensive reflection of recurring costs involved in producing gold, without discouraging investors. INTRODUCTION Mining today plays a key role in the development of our civilization as a source of essential raw material and provider of essential fuels, producer of jobs, and a factor in support of the international balance of monetary payment (Camm, 2014). Professionals in mining locate, develop, design and manage ore deposits in an environmentally safe and profitable manner. As mineral deposits become increasingly scarce, new challenges face the industry. A current trend is to an increased emphasis on underground mining techniques for deeper deposits. Operations are safer today than before as companies understand better their work environment and the importance of mining responsibly. A continual challenge for the industry is accurately reflecting the costs and selling price of ore. An enduring characteristic of mining is the situation where the market typically determines the price of a commodity; the main control a company has on the bottom line is to control the cost of production. An attempt to bring light and clarity on the cost of their business will give a better idea to investors on the true profitability of the mining business. Gold producers face this struggle to accurately reflect the cost of production while also seeking to attract the interest of the investment community (Hill, 2013). In order to have a consistent format to report on their production costs, leading gold producers through their alliance inside the World Gold Council (WGC), worked on the adoption of a new cost framework: the All-in Sustaining Cost (AISC) and All-in Cost (AIC). Since 1996, the traditional cash cost reporting has focused only on the mining and processing costs incurred in mining an ounce of gold, which included the costs of goods sold (labor, energy, and consumables costs) and royalties (Table 1). But cash cost reporting ignores many important aspects, like sustaining capital, general and administrative expenses, and site rehabilitation at the end of the mine life (Whelan, 2013). The cash cost was used to attract many investors into the business. In fact the high gross margin (sales minus cash costs) has been promoted the past decades by the industry instead of the net or operating margin. As a result, even when the gold price was high, nearly $1900 per ounce in August 2011, gold producers were not reporting excessive profits in their cash flow / income statements, to the disappointment and incomprehension of investors (Milstead, 2014). The truth was simply that the other costs omitted in the traditional cash cost were reducing the apparent profits."

Jan 1, 2017

By A. G. Yapo, T. W. Camm

"Mining plays a key role in the development of modern civilization as a source of essential raw materials and provider of essential fuels, producer of jobs and a factor in support of the international balance of monetary payment (Camm, 2014). Professionals in mining locate, develop, design and manage ore deposits in an environmentally safe and profitable manner. As mineral deposits become increasingly scarce, new challenges face the industry. A current trend is to an increased emphasis on underground mining techniques for deeper deposits. Operations are safer now than before as companies understand better their work environment and the importance of mining responsibly.A continual challenge for the industry is accurately reflecting the costs and selling price of ore. An enduring characteristic of mining is the situation where the market typically determines the price of a commodity; the main control a company has on the bottom line is to control the cost of production.An attempt to bring light and clarity to the cost of their business will give a better idea to investors on the true profitability of the mining business. Gold producers face this struggle to accurately reflect the cost of production while also seeking to attract the interest of the investment community (Hill, 2013). In order to have a consistent format to report on their production costs, leading gold producers, through their alliance inside the World Gold Council (WGC), worked on the adoption of a new cost framework: the all-in sustaining cost (AISC) and all-in cost (AIC).Since 1996, the traditional cash cost reporting has focused only on the mining and processing costs incurred in mining an ounce of gold, which included the costs of goods sold (labor, energy, and consumables costs) and royalties (Table 1). But cash cost reporting ignores many important aspects, like sustaining capital, general and administrative expenses and site rehabilitation at the end of the mine life (Whelan, 2013). The cash cost was used to attract many investors into the business. In fact, the high gross margin (sales minus cash costs) has been promoted in past decades by the industry instead of the net or operating margin. As a result, even when the gold price was high, nearly $61/g ($1,900/oz) in August 2011, gold producers were not reporting excessive profits in their cash flow/income statements, to the disappointment and incomprehension of investors (Milstead, 2014). The truth was simply that the other costs omitted in the traditional cash cost were reducing the apparent profits.The disconnect led to a need for more accurate cost reporting in order to win back investor confidence and provide better understanding of gold mining economics. In 2012, the senior gold mining companies, including Gold Fields, Barrick Gold Corp. and Newmont Mining Corp., worked with the WGC to develop a new measure. This resulted in the June 2013 publication of the new framework AISC and AIC, which has been widely embraced by the sector since Jan. 1, 2014 (WGC, 2013).The adoption of the new cost template would have the dilemma of showing the real profitability of gold mine properties, which might alleviate taxes from governments and legislators, but it might also scare off investors toward more lucrative industries if not winning back their confidence."

Jan 9, 2017