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By J. A. Botín

NPV is a static measure of project value which does not discriminate between levels of internal and external risk in project valuation. Due to current investment project?s characteristics, a much more complex model is needed: one that includes the value of flexibility and the different risk levels associated with variables subject to uncertainty (price, costs, exchange rates, grade and tonnage of the deposits, cut off grade, among many others). Few of these variables present any correlation or can be treated uniformly. In this context, Real Option Valuation (ROV) arose more than a decade ago, as a mainly theoretical model with the potential for simultaneous calculation of the risk associated with such variables. This paper reviews the literature regarding the application of Real Options Valuation in mining, noting the prior focus on external risks, and presents a case study where ROV is applied to quantify risk associated to mine planning.

Jan 1, 2012

This Bureau of Hines report on underground mine communications addresses methods and equipment to meet the communication requirements of working sections and places of coal and metal-nonmetal mines. A review of the status of trapped miner detection is also presented.

Jan 1, 1977

By Alfred Petrick

This report analyzes the byproducts systems of lead, zinc, uranium, rare earths, iron, aluminum, titanium, and lithium. Specific byproduct metals covered are cadmium, germanium, indium, and thallium from the zinc system; antimony and bismuth from the lead system; vanadium, radium, and scandium from the uranium system; rare-earth oxides from the rare-earth system; and cobalt, gallium hafnium, and rubidium from other systems. The report discusses various metallurgical systems, marginal and incremental production costs of byproduct subsystems, industry structure and organization, and historical data on price, consumption, and supply.

Jan 1, 1973

By K Jupp, T J. Howard

Cliffs Natural Resources Pty Ltd (CNR) operates iron ore mines in the Koolyanobbing region of Western Australia, about 50 km north of the town of Southern Cross. Ore is trucked from three geographically isolated sources to the crusher at Koolyanobbing, where it is blended before and during crushing. Lump and fines products are produced and railed to Esperance for ship loading and export to Asian customers. CNR is examining alternative processing paths, from mining to ship loading, with the aim of improving efficiency and reducing costs. Modifications to the system must be consistent with potential future expansions and maintain the low inter-shipment grade variability on which CNR prides itself and has built a strong relationship with its customers. In searching for the optimum process design, many options from mine face to ship loading must be evaluated and compared. Pilot plant studies are infeasible, while complex mineralogical interactions, competing goals and numerous possible system configurations limit the applicability of theoretical analysis. It was therefore concluded that simulation modeling would provide the confidence to take the next step into production trials. This paper describes techniques applied at CNR to simulate grade variability resulting from potential process design changes. The simulation models are easily run Excel-based modules, with each module representing a different part of the process. The modules use extensive Visual Basic macros driven by Excel's user-friendly interfaces. Presentation of the results is enhanced by Excel's excellent graphical capabilities. The simulation software stores and graphically presents time-stamped data from a run, enabling detailed analysis of different process configurations. Final success of a simulation run is measured by inter-shipment variability (standard deviation and process capability) and in-process ore tonnages. Meaningful results from the simulations require the initial input data contain the same correlations present in the real production environment, between the mineral components, production linkages and across time. The data also have to allow simulation of potential changes to mining method and introduction of new pits into the blend. Mining data from the real operations under study are therefore used, with average grades and variability adjusted to match potential future development proposals. It is also necessary to filter out medium and long-term variations from the production data as this variability is best controlled through the conventional medium to long-term mine planning process, not by the process design being studied. The filtering was carried out using a Fourier transform technique, which is described.

Jan 1, 2009

By Kenneth Wardell

Those flat lying, bedded or replacement, non-fossil fuel deposits which exist within the U.S.A., and which are amenable to longwall mining, are identified by reference to three principal factors associated with their physical/geological environments. These are their depth, extent and structural continuity. Technical feasibility is assessed in relation to the likely cutting speeds which can be achieved in the identified minerals with existing longwall shearer machines. Economic comparisons are made between traditional mining operations in those deposits for which technical feasibility is demonstrable. Continents are made concerning those technical deficiencies which appear to preclude the application of existing longwall equipment to the identified deposits and suggestions are made regarding the lines of research aimed at improving longwall technology.

Jan 1, 1978

Prier to the date of this contract, Ocean Energy had developed and demonstrated a high efficiency fluorescent caplamp which operated from a standard 4 volt miner's caplamp battery. This unit produced about five times the light output of the standard incandescent miner's caplamp. The Company believed that the major market for this unique caplamp was in the industrial and municipal applications. Because of the additional safety requirements for coal mining use, and in conjunction with the much smaller market in the mining industry, the additional expense and difficulty of modifying this caplamp to comply with the Federal and State coal mine regulations were not considered at that time. Recognizing the potential of this lamp for improving illumination conditions for underground coal mining, the US Bureau of Mines contracted with Ocean Energy to make the required modifications to this lamp to bring it into compliance with the Federal and State of Pennsylvania regulations, and thereby, make this lamp available to the anthracite and bituminous coal mining industry. At the outset of the contract, the injection molds for the caplamp housing were being completed, and only prototype, hand fabricated, units were available for tests. The Bureau evaluated these prototype units and formulated a performance specification for the miner's version. Light level and distribution, weight, size, angle of tilt, and operating duration were all specified. In addition, it was required that the caplamp be com¬patible with existin charging equipment at the mines and that the final design be in full compliance with MESA Schedule 6D and he ultimately approved by MESA, Approval and Testing, as well as by the Pennsylvania Bureau of Deep Mine Safety. The scope of this contract covered the modifications required to achieve these objectives. It was agreed by the Bureau that all rights to the lamp, including design, material combinations, circuitry, etc. would remain with Ocean Energy. The charger/adapter system and components, which were developed under contract funds, are disclosed hero and become public knowledge and property. Patent applications have been filed by Ocean Energy to protect the mechanical and electrical design aspects of the lamp. It should be noted that this report contains details, designs and data which may be covered by one or more Ocean Energy patent applications, and disclosure herein is made only to provide better understanding of the contract results.

Jan 1, 1975

This report is in fulfillment of Contract H0230031 awarded to Bituminous Coal Research, Inc., on May 23, 1973. The scope of work to be performed under this contract was divided into four phases: Phase I - Design, Phase II - Construction, Phase III - Field Demonstration, and Phase IV - Analysis and Final Report. During Phase I, an agreement was finalized with the Rochester and Pittsburgh Coal Co. for conducting field tests of the proposed shearer spray systems on a longwall panel in the company's Jane Mine in Indiana County, Pa. A drum was then designed which could be used on the Eickhoff shearer, Model EW170-L, being used on this longwall and which would utilize the following spray systems: 1. One spray nozzle located in front of each cutter bit with the jet directed at the cutting surface. 2. One spray nozzle located in back of each cutter bit with the jet directed at the back of the bit. 3. Standard Eickhoff nozzles located in a header along the drum scrolls. 4. A fixed header mounted on the shearer directly behind the drum to simulate the spray system originally used on the Eickhoff shearer.

Jan 1, 1976

By Richard Lusignea

A single boom roof bolting machine was outfitted with measurement and recording systems for detecting changes in machine parameters while drilling. The purpose of this instrumented bolter or "smart drill" is to detect changes in roof conditions from the machine parameters of penetration rate, thrust, rotation rate, torque, rejected light from rock cuttings, and vibration of the roof during drilling. The system was demonstrated underground in coal mine conditions and showed correlation between rock type and drilling parameters.

Jan 1, 1982

By Juan Camus

To understand why some companies excel in creating value, Jim Collins (2001) and a group of postgraduate business students engaged in a comprehensive, five-year research project. They examined 1,435 U.S. companies for more than 40 years, seeking those that made significant improvements in their financial performance over time. The distinctive pattern sought was: ?Fifteen-year cumulative stock returns at or below the general stock market, punctuated by a transition point, then cumulative returns at least three times the market over the next 15 years. ?The search identified 11 outperforming companies, all in different industries, that were called the ?good to great? companies. To contrast these companies with similar peers within the same industry, the search also selected a group of comparison companies that failed to make the leap from good to great. Collins then set out to examine the transition point. What distinguishing features did the good-to-great companies have that their industry counterparts did not? At the heart of the findings about these outstanding companies is what Collins refers to as the ?hedgehog concept? ? how to find the one big thing that the company must focus on. According to Collins, those who built the good-to-great companies were, to one degree or another, hedgehogs. Those who led the comparison companies tended to be foxes, never gaining the clarifying advantage of a hedgehog concept, being instead scattered, diffused and inconsistent. This insight is complemented by Peter Drucker (2004), an influential management guru, who asserts that the first question an effective executive should ask is: ?what needs to be done?? Asking this question and taking it seriously, he asserts, is crucial for managerial success; and that the answer almost always has more than one urgent task, but the effective leader only concentrates on one task. In this last respect, Drucker emphasizes: ?If they [executives] are among the sizeable minority who work best with a change of pace in the working day, they pick two tasks. I have never encountered an executive who is effective while tackling more than two tasks at a time.?

Jan 1, 2011

By James J. Dowd

During and immediately following World War II, the heavy demands for steel required the mining of unusually large quantities of coal for the manufacture of metallurgical coke. The largest demand for metallurgical coke is in the Appalachian region, which comprises central and western Pennsylvania, Maryland, West Virginia, Virginia, eastern Kentucky, Tennessee, and Alabama. This demand is satisfied by coke made from coals within the region; consequently, the reserves of coking coal in this region are being depleted more rapidly than reserves in other coal-producing regions. The supply A' high-quality coking coal during the war was inadequate, and some coke were forced to use inferior coals. The coke produced from these inferior coals adversely affected the rate of production. Another national emergency probably would produce a similar condition, and in the interest of -national security, the Munitions Board of the National Military Establishment requested the Bureau of Mines to evaluate the reserves of coals suitable for the manufacture of metallurgical coke. All bituminous coals in the Appalachian region are coking, and as the coal that produces the better metallurgical coke become depleted, other coal previously considered inferior will be used. The general trend is toward the use of lower-quality coals for metallurgical purposes.

Jan 1, 1950

By E. D. Gardner

This bulletin, which discusses open-cut mining at the metal mines of the United States, is the last of a series of such papers by the Bureau of Mines describing the principal methods of mining.4 Open-cut mining is applicable to flat-lying mineral deposits relatively near the surface. Vein deposits seldom are amenable to this method, although outcrops of veins sometimes are worked as open pits. Most of the iron ore of the country is mined from open pits; according to the Minerals Yearbook, 67.4 percent was mined from open pits and 32.6 percent from underground mines in 1937. Open-cut mining is relatively new in the copper industry but yields more copper than any other method; in 1937 about 52 percent of the copper ore mined in the United States was taken from open pits. Lead-zinc ore has been produced from open pits in the Joplin (Mo.) district, but most of the deposits in this area, although flat-lying, are too deep to be mined economically by the open-cut method. In 1937 one company at Oronogo, Mo., was stripping overburden and mining mixed oxidized and sulfide ores by this method.

Jan 1, 1941

By J. M. Whiting

"North America has entered a period when greatly increased attention must be given to energy .supply and demand by government, industry and individuals. Such increasing concern about energy will be a long-term phenomenon, accompanied by continuing examination of future resource development and utilization. Those engaged in or associated with mining, a major energy consumer, are likely to experience a variety of problems which are associated with the end of an era of low-cost, virtually unlimited energy supply. Their efforts, furthermore, may be subjected to escalating public and government scrutiny, involvement and control. However, ever-growing recognition of the real and urgent necessity to systematically develop new energy supplies within Canada and the United States will provide unusual challenges and opportunities for those companies and individuals with mining expertise. The vast deposits of coal, tar sands and oil shale provide a relative certainty of supply which only stands to gain in attractive ness with time. In order to benefit from this aspect of certain supply, nevertheless, synthetic fuels will have to be produced at a tolerable cost. This will always require excellent process design and engineering. As synfuels development expands to any significant production level, however, and Jess than ideal reserves are scheduled, the usual geologic-productivity complexities encountered in making ore out of low-value rock will tend to become of prime concern. It is for this reason that the services of experienced mining personnel will be in growing demand in energy production."

Jan 1, 1973

A concise country-by-country summary of the mineral industry of Africa is presented. Reserves, resources, role of the country in the world mineral supply, and developments in the mineral industries are reviewed. The data on each country are accompanied by a map showing mineral location and transportation facilities.

Jan 1, 1976

By I. A. Costa, Y. Fouquet, F. Barriga

"Lucky Strike and Menez Gwen are two hydrothermally active sites located along the border of the Azorean plateau, southwest of the Azores islands where the alteration processes affecting basaltic rocks are prominent (Costa et al., 2003). Here we report on a slabby brecciated rock, abundant at both Lucky Strike and Menez Gwen, composed mainly of basaltic fragments cemented by hydrothermal precipitates from warm fluid circulation system. Research reveals that hydrothermal alteration takes place mainly by replacement processes, in which silicification is dominant (Costa et al., 1997 and Costa, 2014).Petrographic observations, including scanning electron microscopy (SEM), microprobe analysis, and mass balance studies made on basaltic fragments within the breccia show that silicification is one of the main processes resulting from hydrothermal fluid circulation. This alteration process leads to complete replacement by silica, in extreme cases, forming an impermeable cap that may contribute to the formation of sub-seafloor sulphide deposits, including examples in the geological past."

Sep 1, 2014

By W. Curlook, V. G. Papangelakis, M. Baghalha

A pressure acid leaching process has been developed for the extraction of metal values, nickel, copper, cobalt and zinc, from base metal smelter slags. The basic concept contemplates cooling the smelter slags through solidification sufficiently slowly to induce a good measure of crystallization; and subsequently, after fine grinding, to pressure leach such slags at around 250°C while applying oxygen overpressure, utilizing smelter byproduct sulphuric acid. High levels of extraction of the slags' metal values are thereby achieved. It has been shown that if the same slags are quenched thereby producing an amorphous structure, the resulting metal extractions are very low. The process is applicable to smelting furnace throwaway/discard/dump slags, as well as to in-process converter slags. By extracting the bulk of the residual base metal values in the throwaway/discard/dump slags, the resulting leached residues are rendered virtually benign vis-à-vis the external environment.

Jan 1, 2004

By J. D. Lane

The U.S. Bureau of Mines is conducting research on guidance systems for computerized haulage in underground mines. This report describes the process of component selection, installation and testing, perception algorithm development, and steering control algorithm development, to produce a real-time steering control system for an articulated haul truck for underground mining. Ultrasonic transducers were mounted on the truck to provide perception data by measuring the distance to the ribs. Linear potentiometers mounted inside the steering cylinders measured the steering angles. Algorithms, implemented on an inexpensive, robust onboard computer system, analyzed the data and controlled the steering via an electro-hydraulic proportional valve. The steering algorithm presented follows a zone defined by the relative position between the truck and a rib. Experimental verification of the ability to follow the zone in a test corridor on the Colorado School of Mines campus is presented. The automatic steering system successfully negotiated straight sections, curves, and the transition zones between straight and curves with the truck in first and second gears. The resulting real-time automatic-steering system can be applied to many underground articulated machines.

Jan 1, 1994

By Dupuy. Leon W., R. T. C. Rasmussen, W. A. Calhoun

"INTRODUCTION For many years it has been known that low-grade manganese deposits occur in the bluffs along the Missouri River Valley. Frequent attempts have been made to develop the ore and to produce a marketalble commodity but they have had little success. Under pressure of the war emergency and the shortage of manganese, the attention of the Federal Bureau of Mines was directedtoward the deposits.Manganese-bearing shale occurs from a point near Pierre, S. Dak., down the river to the Rosebud bridge near the Nebraska line (1).5/ The Bureau of,confined its work to the more accessible central portion of the deposits near Chamberlain, S. Dak. The ore occurs principally as concretionary nodules in the form of iron and manganese carbonates (manganosiarite and perhaps some manganocalcite; rhodochrosite has not been identified). At the surface the carbonate is often broken down so that the oxide of manganese gives the nodules a black The matrix or host rock is generally known as Pierre shale, composed of ""interbedded layers of bentonite, an altered volcanic ash, and dissemi¬nated bentonite particles,"" (2) and montmorillonite-beidellite clay minerals (3). The shale weathers to the very sticky gumbo characteristic of South Dakota and well-known to hunters and travelers in the area.The area selected for the experimental mining and pilot-plant work discussed in this report lies about 8 miles westerly from Chamberlain and is a few hundred feet north of U. S. Highway,16, on land owned or controlled,by M. Q. Sharpe of Kennebec, S. Dak., and the General Manganese Corp."

Feb 1, 1946

By E. H. Denny

The presence in the Cripple Creek district, Colo., of irrespirable gas or gases, generally known to consist mainly of nitrogen and carbon dioxide, has been recognized by members of the mining industry in that region almost since underground mining was begun there; the occurrence, origin, and possible control of these gases have been discussed in several articles cited at various places in this report. Similar gases have also been studied in other metal-mining districts, as later discussed. In March, 1925, there were two fatalities from rock-strata gases in the shaft of the Index mine, near Cripple Creek. Two men repairing the bell or signal line preparatory to reopening the shaft were lowered into irrespirable gases and died. Their bodies were recovered by rescue crews from the United States Bureau of Mines and .the Portland mine, Victor, Colo. These crews found it necessary to use oxygen breathing apparatus. In October of the same year a miner was trapped on the 6 level of the Midget mine by an influx of gases that filled the shaft to a point above that where he was working. Oxygen breathing apparatus was again used by Bureau of Mines employees, who were in the vicinity, and the man was brought out in time to save his life. These two fatalities and one near fatality seemed to show that additional investigation of the gases and methods of control might be warranted. Accordingly, field and laboratory studies were begun by the authors of this report after a visit to the district by M. van Siclen, then engineer in charge, mining research division, Bureau of Mines, and after conferences with the Mine Owners' Association of Cripple Creek and with J. T. Joyce, metal-mine commissioner of the State of Colorado. The mine operators of the Cripple Creek district and the State mine commissioner's office gave whole-hearted cooperation in this work.

Jan 1, 1930

By A. S. Watts

The Bureau of Mines has been conducting an investigation of the feldspar resources of the New England and North Appalachian States with a view to greater efficiency and economy in their utilization. Such an investigation was deemed necessary, not only because of the continued and increasing consumption of these minerals, but especially because of the demand for better technical control of the raw materials that are used by the white-ware industries of the United States. Most manufacturers of white pottery wares have only a limited knowledge of the origin, mode of occurrence, and methods of mining and preparation of the materials that they use. Heretofore, owing to a belief that the supply of raw material was unlimited, the manufacturer had concerned himself chiefly with the solution of the problems of manufacture. Within the past few years, however, it has been found that difficulties arise in manufacture which can be traced beyond the manufacturing process and are believed to be due to a need of better control of the materials used. Furthermore, as competition becomes more severe, more attention must be paid to selection of materials in order to minimize consumption and also to avoid unnecessary expense for transportation of material. Doubtless the lack of interest as regards these details has arisen from the fact that in the past a considerable proportion of the whiteware ingredients has been imported and the manufacturer has been forced to rely on the samples submitted and the general uniformity of the source of supply to insure against variation of the material. An extra precaution arising from this lack of definite knowledge still prevails in the common practice of never depending on one source of supply for anyone ingredient. Often the products of three or more producers are blended so that if anyone shall vary without warning the variation arising from its use will not be sufficient to ruin the ware.

Jan 1, 1916

By James J. Olson

This report summarizes the results of a review of foreign coal mining literature conducted under the Bureau's Advancing Coal Mining Technology program. In addition to a discussion on the historical development of mechanized longwall systems, and the current state-of-the-art method in Europe, this report summarizes the previous and ongoing Bureau efforts to adapt longwall technology to U.S. conditions. The bibliographic section of this report, divided into major categories such as mine design, face management, roadway development, strata control, powered roof supports, coal winning, conveying, and automation, contains over a thousand individual entries. The purpose of this report is to provide U.S. mining engineers with background information on longwall methodology and equipment developed in foreign countries (principally Europe). The Bureau of Mines, as part of its Advancing Coal Mining Technology program, is funding R&D projects to demonstrate that the longwall mining method, successfully used in the deep mines of Europe, can boost productivity and improve safety in certain U.S. mines.

Jan 1, 1977