Search Documents

By R. A. Haney

The Mine Safety and Health Administration (MSHA) has conducted studies both in coal and noncoal mines to evaluate methods for sampling and separating diesel particulates from mineral dust aerosols. The agency is investigating size separation techniques to distinguish between diesel particulate and respirable coal mine dust. Additionally, ashing techniques have been used to distinguish diesel particulate from mineral dust in metal and nonmetal mines. As part of these studies, personal exposures to diesel particulate for various mining occupations have been measured. This paper describes the measurement techniques and summarizes the exposure levels for various underground mining operations.

Jan 1, 1990

By J. L. Huiatt

Kerosine, fuel oil No. 2, vapor oil, and fuel oil No. 6 were separated into general hydrocarbon fractions by ion exchange chromatography and adsorption chromatography. The collecting properties of these fractions were evaluated by flotation of molybdenum and copper minerals from a natural chalcopyrite ore. Paraffin fractions and aromatic fractions of low polarity produced the best molybdenum recoveries. Selective flotation of molybdenite from copper sulfide minerals was not possible with any of the chromatographic fractions.

Jan 1, 1972

By V. O. Tenorio, K. W. B. Requist

As the mining industry begins efforts to examine the feasibility of extraterrestrial resource utilization, the extraction and processing of icy regolith containing water and other volatile materials will be the initial focus for future expansion of capabilities. Pure water is essential for human consumption, and a source of oxygen and hydrogen. The latter, along with the volatile materials, lend themselves to the creation of fuels that may be used for further space exploration at distances not currently feasible. For any extraterrestrial scoping project, the transport of materials to geoscientists remains virtually impossible. Therefore, analysis must be done in-situ, possibly millions of miles away from the nearest human. To address the need for geologic resource estimation in the absence of geoscientists, an infrared framework has been developed for the analysis of water ice content in simulants of permanently shaded lunar regolith. This framework relies on a convolutional neural network model for the rapid analysis of percent water ice content in samples, at which point standard geostatistical methods may be employed.

Feb 1, 2023

By Aleksandar N. Nikoloski, Rorie Gilligan

Brannerite, UTi2O6, is the most common of the refractory uranium minerals and requires leaching under intense conditions to effectively extract the uranium contained within. Brannerite is often found together with apatite in metasomatic uranium deposits. Apatite and other phosphate gangue minerals can inhibit uranium leaching by generating phosphate ions which interfere with the reactions between acidic ferric sulphate and uranium minerals. As part of a detailed fundamental study on the leaching reaction mechanisms for brannerite, tests under a range of selected leach conditions were carried out with the addition of 10 g/L fluorapatite with the goal of identifying conditions where the negative effects of phosphate are reduced. Leaching was carried out for 5 hours with 0.05 mol/L Fe3+ as Fe2(SO4)3 with 0.25–1.00 mol/L H2SO4 and at temperatures between 25 and 96 °C. A single test was performed with 0.05 mol/L Fe3+ as FeCl3 and 1.00 mol/L HCl. In the sulphate system, the effect of phosphate was weakest at the highest acid concentration (1.00 mol/L H2SO4). In the chloride system, phosphate did not suppress uranium extraction, suggesting that HCl leaching could be a viable alternative for the leaching of high-phosphate refractory uranium ores.

Mar 17, 2021

By R. J. Matetic

Mining operations have long been accused of causing a disruption to local, domestic and agricultural water supplies. More recently, concern for water supplies has increased with the advent of high-extraction mining techniques, namely longwall mining. Theoretically, any water bearing zone in the overburden above a high-extraction mining operation may be affected by mining. In some cases, a confining bed may be fractured causing a loss of water to a particular zone. In other cases, increased fracture permeability may enhance the ability of an aquifer to transmit and deliver water. Unfortunately, only a limited amount of studies have been conducted that characterize hydrologic changes and also quant1fythe magnitude of mining-induced subsidence. The U.S. Bureau of Mines conducted such a study at a mine site located in Greene County, PA. A total of 8 water wells were drilled and hydrologic parameters such as specific capacity, transmissivity and well yield were determined both before and after mining. Electronic water level recorders were installed on each water well to provide continuous observations of water level fluctuations.

Jan 1, 1990

By G. Rainville, I. Servi, F. Katrak

Despite the severe drought conditions that reduced farm requirements for industrial mineral products, most industrial minerals markets in 1988 continued their growth or, at worst, remained flat. Earlier projections of output declines did not materialize in most segments. Preliminary estimates of demand in Europe and Asia show strong growth for most industrial minerals. Profitability in industrial minerals in North America was best in those minerals that had a significant export market or were not strongly regional. Growth and price trends in the more regional industrial minerals markets in the US such as sand and gravel, crushed stone, and cement, more closely followed the broadly disparate regional economic conditions. For example, sand and gravel and crushed stone grew strongly in the Pacific Coast and northeastern markets but not as much as in the Southeast. Total growth for sand and gravel in 1988 is projected at about 3% above 1987 levels. Combined production is up about 27 Mt (30 million st) to 2 Gt (2.2 billion st). Following the relentless trend of foreign acquisition of US cement companies (currently about two-thirds are owned by foreign interests), several aggregate operations have been purchased by foreign companies. Notable among these in 1988 was the acquisition of Rinker Materials Corp. by CSR of Australia. The acquisition of this Florida-based aggregate and concrete operation will expand the current holdings of CSR in the southeastern US, with operations consolidated under the Rinker logo. In addition, Pike Industries of New England and J.L. Shiely Co. of Minnesota were significant aggregate producers that were acquired by foreign firms. New England's only cement manufacturer, Dragon Products, was acquired by a subsidiary of Cementes del Norte of Spain. Dravo continued to expand its influence in the lime and limestone markets. It became the major supplier of construction aggregates on the inland river system with its purchase of Cyprus Minerals' limestone aggregate operations in Kentucky, Louisiana, and Texas. Although lime production continued to grow from 14 to 15 Mt (15.7 to 16.7 million st) in 1988, lime imports decreased for the fifth consecutive year to 145 kt (160,000 st). In the more export-oriented industrial minerals markets, performance was generally very good for 1988. Soda ash enjoyed an excellent year, with its price up to $102.50/t ($93 per st). This reflected the tight market situation for soda ash, particularly in late 1988. Soda ash production in 1988 was 8.6 Mt (9.5 million st), reflecting the industry's improved efficiency. Particularly significant was the increase in caustic soda prices that led to increased substitution by soda ash. The export market remained at 2.1 Mt (2.3 million st). Phosphate production recovered to the 42 Mt (46 million st) level, a 12% increase despite a soft export market. The price, however, remained soft throughout the year. W.R. Grace sold its interest in its Florida phosphate mine and its phosphoric acid complex as part of its divestiture of the agrichemicals business. The strengthening of the major producers has continued as lower cost capacity has been idled. Future permitting of phosphoric acid facilities and development of reserves will be necessary to maintain current production levels beyond the mid- to late 1990s. Despite new developments worldwide in the titanium minerals market, strong demand has continued to apply pressure to price, with concentrate and slag prices going up. The demand for high quality slag as feedstock for pigment production has resulted in process improvements in South Africa (Richard's Bay) and in plans by Canada to import high quality ilmenite by 1991 to produce a 90% TiO2 slag. Although growth in industrial silica sand applications was small in 1988, concentration in the industry continued. Unimin continued to acquire silica operations. Unimin is now the nation's leading producer of granular silica. The end users of silica have consolidated further. Owens-Illinois purchased Brockway Inc., a leading container glass producer. Three companies now control 75% of the container glass industry. ECC continued to be an aggressive purchaser of industrial minerals operations throughout the world. It acquired Cyprus Minerals' calcium carbonate business as well as two operations in Italy. In addition, ECC continued its aggressive acquisition of kaolin (Australia) and aggregate producers. 1988 was a good year for industrial minerals markets worldwide. More importantly, though, it was a year that showed continuing consolidations of reserve ownership in the industry around the world. Barite AN. Castelli, Baroid Drilling Fluids Inc. US mine production of barite decreased 9.4% during 1988. Consumption (sold or used by grinding plants) increased by 37.9%. Imports are estimated to have increased by 21.2%. World mine production decreased by 9.8%, according to the US Bureau of Mines. The value of domestically produced barite, fob mine, decreased 4.6%, according to the Bureau. The declared value cif US port of all imported ground barite during the first 10 months of 1988 increased from $37.16/t ($33.71 per st) in 1987 to $37.92/t ($34.40 per st), according to Bureau figures. Nevada continued to be the leading producer of barite with 72% of the total, followed by Georgia and Missouri. The Bureau of Mines estimates 69% of US mine production was used as a weighting agent in drilling fluids. The other 31% was used in barium chemicals, glass, or as a filler. Most of the production from Missouri, Georgia, and Tennessee was used in the non-oilfield sector. Of the total consumption used by grinding plants and chemical manufac-

Jan 1, 1989

By Robert Bohman

I truly free enterprise system requires free and unrestricted competition among a diversity of suppliers, in order to function properly. The natural attrition of the marketplace tends on the one hand to narrow the competitive field ... but the flow of new competitors entering the arena provides a "diluting" effect, and a "balanced" market place. Without the ready flow of new business entrants, the market becomes increasingly concentrated in the hands of fewer and. fewer firms. Competition among suppliers is diminished and the "free" marketplace suffers accordingly. A number of organizations, both governmental and private, have recently expressed grave con¬cern over the competitive future of the Western coal market. While most have noted that there is currently adequate competition within the Western market, some have cited the growing con¬centration of coal ownership ... particularly federal lease ownership ... in the hands of a relatively few firms. They suggest that unless this apparent trend is reversed or at least stemmed, the number of new firms entering the federally-dominated West may become reduced to the point where competition will suffer.

Jan 1, 1982

By R. R. Klimpel

The grinding of coal-water slurries has received increasing industrial attention during the last decade. In particular, there is long-term interest in the use of pulverized coal-water slurries to replace oil in combustion equipment and the development of coal gasification/liquefaction processes which require coal-water slurries as feed. More specifically, the use of coal-water slurries in gasification requires grinding a high density slurry containing the smallest amount of water consistent with slurry pumping and spraying. As part of a fundamental engineering research support program aimed at the industrial implementation of dense coal-water slurry grinding, this author has published several papers on how specific rates of breakage vary as a function of slurry rheology, Klimpel (1982, 1982/83). These papers demonstrated that there is a consistent pattern of change in specific rates of breakage of coal in dense slurries with controlled variations in slurry rheology. By matching rheological data with laboratory grinding results, it was possible to identify directly slurry conditions that correspond to: (1) slowing down of breakage rates, (2) the occasional acceleration of breakage of some sizes, and (3) conditions where chemical additives will increase rates of breakage.

Jan 1, 1990

By K. L. Hanning

Grinding and classification circuits at Climax Molybdenum Co. are described. Since the installation of a direct digital control computer in 1974, a number of control strategies were developed and evaluated. This paper deals in particular with the practical experience and results obtained in direct digital control of a wet grinding circuit consisting of a ball mill, constant speed sump pump, and hydrocyclones. For this circuit throughput is maximized, while maintaining a desired product size. Product size is inferred from measurement of operating variables.

Jan 1, 1977

By C. Sunderman, R. Jacksha

"Mine monitoring through various sensors is a vital component of successful miner safety and health programs. Data from environmental, geotechnical, infrastructure and other types of sensors are increasingly used to discover and mitigate health and safety concerns in underground mines. In many smaller underground mines, as well as in the new development headings of larger underground mines, leaky feeder communication systems may be the only available means to transport crucial monitoring data. In addition, data transport is increasingly being delivered using Internet Protocol (IP), while older forms of serial communication are being retired. This paper presents the selection, configuration and testing methodologies employed by researchers from the U.S. National Institute for Occupational Safety and Health (NIOSH) to integrate commercially available land mobile data radios into an existing leaky feeder communication system to provide IP data transport.IntroductionTo enhance the health and safety of their mining workforce, mine owners and operators are increasingly installing environmental monitoring and control systems in underground mines. Real-time, mine-wide monitoring is becoming a reality with the implementation of the Industrial Internet of Things (IIoT) into the underground mining industry (Zhou et al., 2017). However, not all underground mines, especially smaller mines and new development headings in larger mines, have the information technology infrastructure in place to handle the data transport requirements for the newer Internet Protocol (IP)-based technologies that are part of IIoT.This was the case with a mine in the Western United States. It lacked the infrastructure to perform critical monitoring in remote headings. Therefore, the mine partnered with the U.S. National Institute for Occupational Safety and Health’s (NIOSH) Spokane Mining Research Division (SMRD) to develop and evaluate a cost-effective solution for the real-time monitoring of geotechnical conditions in relatively remote sections of the mine. This paper describes SMRD’s solution to leverage the mine’s existing leaky feeder communications system to achieve IP data transport using commercially available land mobile data radios (NIOSH, 2013; Forooshani et al., 2013; Novak, Snyder and Kohler, 2010; Yarkan et al., 2009). The solution, fully evaluated in laboratory and mine environments, requires no modifications to the existing system, is economical, simple to implement, and reliable. It also allows for transition to higher-bandwidth IT networks, such as fiber optic or WiFi, should they become available."

Dec 1, 2018

By J. A. Marts, R. C. Gilmore, S. Saki, J. F. Brune

El modelamiento de la dinámica de fluidos computacional (CFD por sus siglas en inglés) implica la creación de un dominio de cálculo llamado malla o rejilla para resolver las ecuaciones que definen la física del flujo de fluidos. Este proceso comprende a menudo emplear la mayor parte del tiempo en esfuerzos de modelamiento. En un proyecto patrocinado por el Instituto Nacional de Seguridad y Salud Ocupacional (NIOSH), los investigadores de la Escuela de Minas de Colorado utilizaron un enfoque innovador de mallas, el cual permite una fácil adaptación del modelo CFD para adaptarse a una variedad de geometrías de minado de tajos largos ventilados por canales (bleeders) y progresivamente sellados (referidos a menudo como bleederless en los Estados Unidos), con la porosidad y la permeabilidad de la cámara escalables en un amplio intervalo. En este trabajo se presenta la metodología del enfoque de enmallado y escalado junto con las recomendaciones para el uso de modelos CFD en aplicaciones de ventilación para las cámaras en tajos largos. La nueva técnica de enmallado se utilizó para evaluar la función de un retorno hacia atrás en una cámara progresivamente sellada y otra cámara ventilada por canales.

Jan 1, 2014

By P. L. Sibrell

Three different refractory carbonaceous gold ores from the Carlin operation in northeastern Nevada were investigated to characterize the effect of passivation treatments on the nature of the carbonaceous material. The carbonaceous material was chemically isolated from the ores and passivated residues, and examined by FTIR spectroscopy, elemental analysis, and gold adsorption capacity. The main component of the carbonaceous material in these ores was found to be a naturally occurring activated carbon-type compound. Hydro-carbons were detected on rare occasions, but no evidence was seen for humic acids. Ore samples were passivated by autoclaving, or by treatment with sodium hypochlorite or gaseous Chlorine. In some of the passivation tests, a new peak was observed in the IR spectra of the isolated carbonaceous material, that was due to carbonyl functionalities. However, all of the passivation treatments tested decreased preg robbing significantly. This suggested that the appearance of the carbonyl peak was due to the severity of the conditions during passivation, rather than the method used.

Jan 1, 1990

By K. C. Corin, B. McFadzean, J. G. Wiese

The Bushveld Complex of South Africa contains almost 90% of the world’s reserves of platinum group minerals (PGMs). In the flotation of PGMs, there are significant challenges arising from the need to treat ever-decreasing grades of the relevant ore deposits. The major challenge in the flotation of these ore bodies is the control and management of the gangue minerals, particularly silicates such as orthopyroxene and plagioclase feldspar which are often rimmed with talc which makes them naturally floatable. It has been shown that various polysaccharide depressants such as CMC and guar have different properties in terms of depressing the gangue minerals. Since the PGMs are often associated with sulphides, copper sulphate is widely used as an activator in PGM flotation but can inadvertently activate the gangue minerals and reduce the recovery of PtTe2 which accounts for up to 40% of the Pt in the Platreef ore body. Depressants also reduce the mass of solids reporting to the froth and can thus destabilize the froth. This effect on the froth can be mitigated by using higher frother dosages or water of higher ionic strength. In summary due care needs to be taken to carry out site test work to develop an optimum ratio of collector, frother, activator and depressant to ensure that the highest grades and recoveries of the PGEs are obtained while reducing depressant dosage as much as possible. Chromite recoveries can be reduced through the application of gravity separation or reducing entrainment through reduced water recovery. INTRODUCTION The Bushveld Complex located in the north of South Africa contains the world’s largest deposit of Platinum Group Minerals (PGMs) (1). The so-called upper Critical Zone of the Complex hosts the largest concentration of platinum group elements (PGEs) in the world. The Zone hosts the Upper Group Chromitite No.2 (UG2) reef and Merensky Reef as well as the Platreef mineralization of the northern limb of the Bushveld Complex. The Merensky pegmatoid Zone contains the base metal sulphide grains and associated PGMs. Of particular importance to the topic of this paper is the occurrence in these reefs of various gangue minerals. The Merensky Reef consists predominantly of orthopyroxene (~60%), plagioclase feldspar (~20%), pyroxene (~15%), phlogopite (5%) and occasional olivine. Secondary minerals such as talc, serpentine, chlorite and magnetite have widespread occurrence. Of these, talc is the only mineral to show significant natural floatability (2,3). Although present in small amounts talc is closely associated with pyroxene and imparts significant floatablity to the high concentrations of pyroxene present in these ores (4). The base metal sulphides consist predominantly of pyrrohtite (~40%), pentlandite (~30%) and chalcopyrite (~15%). The major platinum group minerals are cooperite (PtS), braggite [(Pt,Pd)NiS], sperrylite (PtAs2) and PGE alloys. The UG2 consists predominantly of chromite (between 60 – 90% by volume) with lesser silicate minerals (5 – 30% pyroxene and 1 – 10% plagioclase). Other minerals present in minor concentrations, can include silicates, oxides and base metal sulphides. Total PGE varies by locality but on average range between 4 and 7 g/t. The PGMs present in the UG2 Reef are highly variable, but generally the UG2 is characterised by PGE sulphides such as laurite (RuS2), cooperite (PtS) and braggite [(Pt,Pd)NiS. The base metal sulphides consist predominantly of chalcopyrite, pentlandite and pyrrhotite. The Platreef is located in the northern limb of the Bushveld Complex. This reef consists of a complex assemblage of rock types, with pyroxenites, serpentinites and calc-silicates being the most abundant. Base metal mineralization and platinum group element (PGE) concentrations are found to be highly irregular, both in value as well as in distribution. The predominant platinum group minerals (PGM) in the mined area of the Platreef are the PGE tellurides, alloys, arsenides and sulphides. T

Jan 1, 2019

By McCarthy. Richard E.

The prime movers of the Centralia Project, the surface coal mine and the power plant, private utilities are very aware of public attitudes. They have established and maintain the reputation for leadership in public service and are genuinely concerned that this project initiate the pro-grams and design the hardware to answer the question :What will be the impact of the mine and the plant on the physical environment, i.e., the air, soil and the water." So in the beginning almost as soon as the decision had been made to go ahead with the project, officials of the two private utilities, Washington Water Power and Pacific Power & Light went on record and publicly stated time and again that the overall approach of the Operators would be to do all that was reasonably possible to safeguard the environment. This attitude became part of the thinking of the project planners, part of the design of the power plant and part of the plan for the surface mine. The coal to be mined is from the Skookumchuck formation. The formation is Late Eocene and is made up of poorly consolidated marine and non-marine deposits. The major overburden removal equipment is a bucket-wheel excavator -conveyor system and a 56 yard dragline. Mining of the coal will be done with truck and shovel. The coal is processed, washed and crushed to 1 ¼ " for delivery to the power plant. The muddy water created by the washing process is chemically treated and the solids removed by a thickener-vacuum filter system.

Jan 1, 1971

By Susan G. Bilhorn

A number of studies have been conducted in active and inactive mine environments using continuous monitoring and data acquisition systems to detect various parameters. In addition to the information obtained for research purposes, these monitoring systems can provide a means to remotely collect required information (such as radon daughter concentrations and air velocity) and control various conditions (such as fan operation and air door position) in numerous working sections of an active mine. Selection of detector locations and placement, which are critical to obtain the information and control desired while not inhibiting mine operations and influencing the detector readings, are covered in this paper.

Jan 1, 1984

By P. T. Bissert, T. J. Lutz, J. A. Yonkey, G. T. Homce

"Underground refuge alternatives require an air source to supply breathable air to the occupants. This requires pressure relief valves to prevent unsafe pressures from building up within the refuge alternative. The U.S. Mine Safety and Health Administration (MSHA) mandates that pressure relief valves prevent pressure from exceeding 1.25 kPa (0.18 psi), or as specified by the manufacturer, above mine atmospheric pressure when a fan or compressor is used for the air supply. The U.S. National Institute for Occupational Safety and Health (NIOSH) tested a variety of pressure relief valves using an instrumented test fixture consisting of data acquisition equipment, a centrifugal blower, ductwork and various sensors to determine if the subject pressure relief valves meet the MSHA requirement. Relief pressures and flow characteristics, including opening pressure and flow rate, were measured for five different pressure relief valves under a variety of conditions. The subject pressure relief valves included two off-theshelf modified check valves, two check valves used in MSHA-approved built-in-place refuge alternatives, and a commercially available valve that was designed for a steel refuge alternative and is currently being used in some built-in-place refuge alternatives. The test results showed relief pressures ranging from 0.20 to 1.53 kPa (0.03 to 0.22 psi) and flow rates up to 19.3 m3/ min (683 scfm). As tested, some of the pressure relief valves did not meet the 1.25 kPa (0.18 psi) relief specification.IntroductionThe Mine Improvement and New Emergency Response Act of 2006 (MINER Act) was enacted in the United States in the wake of three mine explosions/fires that claimed 19 lives that year. Intended to help improve underground coal mine accident preparedness, the MINER Act includes provisions that target mine safety issues in areas such as emergency response planning, adoption of new technology, training and education, and mine safety standards enforcement (U.S. Mine Safety and Health Administration, MSHA, 2006). Section 13 of the MINER Act specifically directed the U.S. National Institute for Occupational Safety and Health (NIOSH) to provide for research into the effectiveness and viability of refuge alternatives for underground coal mines. This mandate culminated in the 2009 adoption of changes to Title 30 of the Code of Federal Regulations (30 CFR) mining health and safety regulations, requiring underground coal mines to provide mine emergency refuge alternatives and associated components, to provide a life-sustaining environment for persons trapped underground. Such refuge alternatives can be either self-contained mobile units or built-inplace facilities. The regulatory changes also include provisions establishing requirements for MSHA approval of refuge alternatives and their components, and among these provisions are numerous criteria for providing a safe breathable atmosphere under positive pressure within the refuge alternatives. One specific criterion for maintaining a safe refuge alternative atmosphere requires the inclusion of an air pressure relief valve that will activate at a maximum of 1.25 kPa (0.18 psi), or at a pressure above mine atmospheric pressure, in the refuge alternative, as specified by the manufacturer when the breathable air is supplied by a fan or compressor (MSHA, 2008)."

Jan 3, 2018

By R. J. Pindred

Discussion by R.J. Pindred In his paper, Davis presents an overview of risk. He also introduces the Capital Asset Processing Model (CAPM) as a foundation for selecting the appropriate discount rate for a mining project. While applying portfolio theory is more defensible than the ad hoc adjustment of discount rates, the CAPM is not a panacea. CAPM shortcomings [The CAPM, as Davis stated, is expressed in the equation: ri=rf+pi4) where ri is the project discount rate rf is the risk free interest rate (3i is the project beta, and 0 is the market risk premium (rm - rf)] Application of the CAPM is more difficult than Davis indicates. Valuation is prospective, while the CAPM parameters are historical. Beta is determined from a regression analysis of historical data, while the beta needed for valuation is the expected beta. Betas are known to be unstable and the regressions that generate them often have low explanatory power. The difficulty of estimating a "project" beta must also be considered. Thus, the beta that is used in the CAPM will be based on the analyst's judgment. Like Cavender's discount rate, this judgment can lead to different project NPVs. Subjectivity in valuation cannot be avoided by a mechanical application of the CAPM. The risk-free rate, which Davis identifies as a short-term real rate of 4%, is also subject to scrutiny. A mining project is not a short-term investment and no single risk-free rate is appropriate for all of the cash flows. The hypothetical mine discussed in Cavender's paper is a six-year project. One might argue for the application of a risk-free rate from the Treasury yield curve at the duration of the project (in a bond-duration sense). This, too, is inappropriate. The risk-free rate should be matched to the timing of the cash flow. These rates can be determined by calculating the implied forward rates from the yield curve using a procedure known as "bootstrapping." It is likely that each of the project's cash flows would be discounted at a different rate. Commodity prices Davis criticizes the "ad hoc adjustment to the discount rate." Yet, in his discussion of the value of stochastic simulation, he suggests that the gold price be modeled as a "random walk, with or without a trend." This is essentially an arbitrary modeling of price risk. Consider that a liquid market in gold futures exists. The futures' price curve, which is closely related to the market's estimate of future spot gold prices, should be used to provide inputs to the model. This is especially true of a relatively short six-year project. Alternatively, as Davis correctly points out, a risk-averse investor can sell the commodity short to hedge price risk. Is it any more correct, in the portfolio sense, to account for price risk at all ?? References Cavender, B., 1992, "Determination of the optimum lifetime of a mining project using discounted cash flow and option pricing techniques," Mining Engineering, Vol. 44, No. 10, pp.1262-1268 Fabozzi, F.J., 1993, Bond Markets, Analysis and Strategies, Second Edition, Prentice Hall, Inc. Higgins, R.C., 1992, Analysis for Financial Management, Third Edition, Richard D. Irwin, Inc. Solnik, B., 1991, International Investments, Second Edition, Addison Wesley Reply by G.A. Davis Pindred discusses two issues related to my paper, the shortcomings of the Capital Asset Pricing Model (CAPM) and which commodity price values to use in the valuation exercise. Even though these topics are not directly related to the use or misuse of Monte Carlo simulation, they are important points to take into consideration in valuation exercises. Since I do not appear to have addressed these issues satisfactorily in my original paper, I will comment on each here. Pindred agrees with me that applying portfolio theory, and specifically the CAPM, to the selection of project discount rates is more defensible than ad hoc methods. But he then points out that the application of the CAPM to project valuation is more difficult that I indicate. It is true that the CAPM is a difficult tool for project valuation in general,. But the application of the CAPM to mining projects is one of the easiest I can think of. The biggest problem with using the CAPM for project valuation is coming up with an expected project beta. I suggest a project beta for gold projects of 0.45. The "true" value might be 0.35, 0.55 or whatever. Pindred correctly notes that the selection of the appropriate project beta is based

Jan 1, 1996

By Paul R. Thomas

This paper addresses two issues affecting the international ferrochromium market as they pertain to the changing pattern of U. S. chromium import dependency. These issues are 1) the long-term ferrochromium production cost differential between the United States and the Republic of South Africa and 2) the ability of Zimbabwe to expand ferrochromium production and exportation. This paper draws upon the data and analyses of a recent Bureau of Mines Minerals availability Program appraisal that evaluated the international availability of chromium in the form of chromite and ferrochromium from 10 market economy countries. South African ferrochromium producers are shown to have a long-term production cost advantage over U.S. producers of $0.03 to $0.04 per pound of contained chromium, in 1981 dollars. Zimbabwean ferrochromium production and exportation are expected to increase in the future. Major expansions of production capacity will be dependent upon alleviating potentially serious constraints in electric power, rail, and port facilities. In the long term, ferrochromium production costs in Zimbabwe are expected to increase faster than the rate of inflation, because as chromite mining from the podiform resources in Zimbabwe decreases, production from the Great Dyke resources will increase.

Jan 1, 1984

By Lena Paar

"Underground construction poses certain challenges for all parties involved because the actual ground conditions are often unpredictable. Highly complex projects like tunnel construction are affected by various uncertainties. To address this complexity, the construction contract has to be flexible enough to be adapted to the actual conditions (e.g. divergent ground conditions, work delays). However, the adaptation of a tunnel construction contract does not guarantee the absence of a margin of interpretation. The perfect construction contract is an illusion because ex ante statements of the actual ground conditions are not feasible. This paper will discuss contractual parameters that must be considered in order to enable an effective adaptation of the contract during excavation. It is therefore necessary to discuss the following topics: decision-making competence, variable remuneration, fair-risk allocation, value engineering and partnering between client and contractor. INTRODUCTION Thinking of tunnel construction processes, engineers’ first (or at least second) association is about ground conditions. When constructing under the surface, the project is directly related to the ground conditions; however, ground conditions are known fairly well in advance. The estimated conditions can be the same or can also differ from the existing ones. A clear view of the conditions is possible only by driving through the section. What Hoek calls “Geological unpredictability which is guaranteed to provide some surprises in even the simplest tunnelling job” is, in addition to contractual issues, one of two critical aspects of modern tunneling (Hoek 1982). Almost no research tries to figure out, what flexibility in this context means and how to approach it in the contracts. Papers dealing with the New Austrian Tunnel Method (NATM) pose some principles to meet the requests for flexibility (cf. Austrian Society for Geomechanics 2011). However, it remains unclear how to create contracts in order to make them “flexible” enough to react to divergent ground conditions."

Jan 1, 2016

By D. Pappas

Over the past decade, the number of contractors working in underground coal mines has nearly doubled; however, the effect this has had on the industry's injury rates has been the subject of much speculation. The confusion exists because the U.S. Mine Safety and Health Administration (MSHA) database does not assign contractor hours to the individual mining operations where they worked. To better understand the safety record of the contractor segment of the industry, the National Institute for Occupational Safety and Health (NIOSH) undertook a comprehensive analysis of the data contained in the MSHA database. The first part of the study compared overall contractor and operator trends from 1983 to 2009 related to employment, hours worked and injury rate. One unexpected finding was that the larger contractors tended to have higher injury rates than the smaller ones. The second part of the study directly addressed the role of contractors on the safety record of 10 large underground coal mines. A detailed analysis provided both injuries and estimated contractor hours worked at these mines for the period 1992-2007. Comparison between the estimated contractor injury rates and the reported operator injury rates at these mines indicated that the contractor injury rates were significantly higher at most of the operations studied. However, the industry-wide data indicates that contractor and operator injury rates have converged since 2005 and are now equivalent. Mining Engineering, 2011, Vol. 63, No. 11, pp. 73-79. Official publication of the Society for Mining, Metallurgy and Exploration, Inc.

Jan 1, 2011