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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

By William G. Pariseau

Few departments of mining, metallurgical or petroleum engineering in the United States have critical mass. Cost per student credit hour (SCH) in departments across the country are usually the highest among engineering departments, which are the highest on campus. Almost all departments are operating at fixed costs and enrollments could easily double without incurring much additional cost. However, the cost per SCH would remain unacceptably high and the probability of doubling enrollment is nil. Declining enrollment is a more likely future. The pressure to reduce SCH from university administration is unrelenting. And it has the potential for doing serious damage to program quality when standards and requirements are lowered in attempts to maintain enrollments and increase retention.

Jan 1, 2002

By C. G. Buttleman, W. C. Brice

In Minnesota, reclamation of active aggregate mining sites is primarily regulated through local permits issued at the county, township, or municipality. However, for abandoned or depleted aggregate mining sites, a responsible party for reclamation is often no longer available. Since 1995, the Minnesota Department of Natural Resources has reclaimed several abandoned aggregate sites using innovative public/private partnerships and emphasizing native plant materials. The purpose of these projects is to demonstrate cost effective reclamation methods that can be utilized by both aggregate operators and local government and to promote mine planning and resource identification as it relates to reclamation.

Jan 1, 2000

By A. Nivala, S. Ulgiati, M. Canino

Mining and processing of bastnaesite ore, (Ln)CO3F, for lanthanides extraction is investigated in this paper. This series of elements proved to be applicable for a wide range of high-tech uses. In spite of the strategic importance of lanthanides, no LCA and energy analyses of their extraction have ever been published. We perform in this paper a Life Cycle Assessment of the Lanthanide production cycle, based on available database and literature data from Mountain Pass mine (USA) and other worldwide mining and processing sites, most of which in China. We investigated three main steps: mining, milling (including transport, grinding and drying), and flotation (for lanthanide chloride extraction). We do not investigate here the separation of pure oxides from lanthanide chloride, a compound which is also marketed as such. The conventional LCA was integrated by means of energy and emergy evaluations, aimed at investigating respectively the global energy cost and the environmental sustainability of the process. Indicators of material intensity, thermodynamic efficiency, and environmental impact (including LCA and ecological footprint impact categories) are calculated and discussed.

Jan 1, 2005

By T. R. Ellis

Many appraisers/valuers believe that the only valuation method available within the Cost Approach category for Real Property appraisal is the depreciated replacement cost method. Some valuation and financial reporting standards setters also believe the same. This paper introduces the minerals appraiser to a number of useful methods for mineral property appraisal that are based primarily on the principle of contribution to value, the predominant economic principle in the cost approach. Most of these cost approach methods discussed are primarily for use in valuation of exploration tracts and resource properties that have no defined reserves. However, the powerful rural cost method can be used to calculate the contribution of categories of resources, reserves, and other property components to the value of a mineral property. This method can be applied to mineral properties at all stages of development, including producing properties.

Jan 1, 2011

By M. Fornaro, E. Lovera, I. Sacerdote

"The analysis of the mining laws of the different European States reveals big diversities and, often, remarkable complications. This is due, firstly, to the history and culture of different States and, secondly, to the assets of natural resources. It is therefore difficult to find a common line between the text of the various mining laws, but it can be observed that nearly all the States distinguish the mining resources in two categories: the materials whose importance is considered strategic belong to the first category; in the second category the materials whose importance (above all economic) is mainly local are comprised. The paper, analysing in detail the planning procedures in some important Countries, investigates the possible perspectives of arranging some guide-lines for a correct approach to the sustainable exploitation planning/programming of mineral resources (with particular reference to "quarry" materials, such as aggregates), considering both the environment protection and the production needs."

Jan 1, 2005

By Peter Kowalczyk

Magnetic surveying and map production is well established in land based mineral exploration. Magnetic data are routinely used to map geology in covered terrains, to estimate the depth to basement in overburden covered areas, and to identify altered zones, mineralization, bedding attitudes, and fault networks both regionally in map view, and through interpretation to depth in 3D. Best practices for magnetic survey methods and magnetic interpretation exist in all areas of land based geophysical survey methodology - mineral exploration, hydrocarbon exploration, geological mapping, archeological mapping, and in military applications. At sea, and particularly under the sea, sophisticated magnetic surveys are being done, but it can be argued that these are primarily in niche applications, for example in naval mine-hunting and UXO applications. Magnetic data is not normally collected on AUVs and ROVs conducting mapping and hydrographic survey operations. OFG has developed physical and mathematical calibration routines so that magnetometers can be mounted directly onto AUV and ROV bodies where significant heading errors and magnetic gradients exist. This simplifies the routine deployment of magnetometers on AUVs and ROVs for mineral exploration and other magnetic survey applications without the need for towed bodies, ungainly mounting frames, or degaussing of the survey equipment. Our experience shows that magnetometers can be operated routinely on AUVs and ROVs and that with careful processing useful maps can be produced routinely at low cost.

Sep 1, 2014

Due to deposit shape and dimension, narrow vein makes reserve modeling, geological control, stope design, drill and blasting more challenging. It needs high standard quality control as errors can be created easily, which could cause significant amount of ore loss or dilution. From channel sampling, survey control, reserve modeling, drill hole design, blasting, communication with underground drillers to backfill, this paper illustrated every step and its quality control of a long hole stope mining. Compared to other narrow vein mining methods (cut and fill and shrinkage), long hole stoping means higher production, less labor, and significantly lower cost when deposit characteristics allowed.

Jan 1, 2012

By P. K. Sims

One-day field trip via U.S. Highway 6 and Colorado Highways 119 and 279 from Golden, Colorado to Idaho Springs. This field trip provides an opportunity to observe aspects of the Laramide ore deposits in the Central City and Idaho Springs mining districts and the Proterozoic basement rocks, which host the ore deposits.

Jan 1, 1986

By J. Winterton

Cripple Creek and Victor Gold Mining Co. is developing a full-scale pad injection program as part of the overall operational plan for the Valley Leach Facility. As part of the development process the mechanics of the injection methodology are evaluated in the context of physical injection measurements, outcome from geophysical monitoring, and gold leaching theory. The results indicate that hydraulic fracturing analogies advanced heretofore do not accurately describe injection phenomena in unconsolidated and noncohesive material typical of leach pads. A new interpretation is presented and extended to define operational strategies for maximizing gold production.

Feb 27, 2013

By J. Bertisen, G. Davis

Previous analyses of small samples of mining projects have found that feasibility studies tend to well under-estimate the actual capital costs of the project. Our review of 63 mining and smelting projects completed over 4 decades confirms that as-built capital costs are, on average, 25% higher than as estimated at the bankable feasibility study stage. There appears to be little attenuation over time of this bias in capital cost estimation, at first appearing to reflect an absence of learning on the part of the consulting engineer. We instead argue that this persistence of bias is intentional, driven by a scarcity of project financing and the need to inflate the project economics in a bid to secure financing. Around this intentional bias is a considerable amount of scatter. Roughly half of all projects’ as-built capita costs fall outside of the expected ±15% of the feasibility study capital cost estimate, even after allowing for intentional estimation bias. Cost overruns of 100% or more happen in roughly 1 out of 13 projects. The data reveal that a shifted lognormal probability distribution should be used when modeling mining project capital costs in a Monte Carlo analysis.

Jan 1, 2007

By E. J. Garrison

A.C. Noble presents a clear and concise summary of the factors pertinent to a competent reserve evaluation of a mineral occurrence. However, I believe that he confuses the difference between a resource and a reserve. By definition, a reserve estimate includes all known economic, legal, mining, metallurgical and environmental factors impacting the recovery of the product(s) found in the deposit. A resource estimate, however, is an estimate of what is there - what is available for exploitation and should not include economic and other considerations. Only after defining the resource, its extent, location, physical and chemical properties, can an intelligent selection process begin of the extraction and processing technologies most appropriate to the circumstances encountered. The early and almost certainly inappropriate application of these often cookbook choices has probably lead many companies to walk away from good properties. (How many mines have been found in others rejects?) An example of the process is the early selection of metallurgical samples, after encouraging values are found in a few holes or surface samples, in an attempt to determine the economics of the prospect. Unfortunately, the sampler does not know how representative of the occurrence the sample is because he does not know what the deposit looks like. As a consequence, the property becomes saddled with a bad metallurgical sample that is often inappropriately used in evaluating the deposit which it does not represent.

Jan 1, 1994

By R. K. Simpson, C. S. Eldridge, M. H. Tyler, J. P. Hodgkison

The WMC Olympic Dam Operation in South Australia is an integrated site, involving brown fields exploration through to production of copper cathode, uranium oxide, gold and silver bullion. The Geology and Analytical Services (GAS) Department reflects this totality and, therefore, is perhaps a unique construct in the industry. It comprises Geology, the Metallurgical Laboratory and the Analytical Laboratory, offering a single point of contact in matters of metal discovery and tracking through mine design, production, beneficiation and final product certification. This structure promotes value adding by removing traditional barriers between groups that can deliver more, collectively, than as individual units. This approach to value adding by bringing disparate groups together is echoed in each of the three sections where enhancements in the traditional value adding activities have been delivered by multi-skilling and encouraging overlapping involvement.

Jan 1, 2002

By J. O. Voigt

No major changes took place in the salt industry during 2004. No new uses of salt appeared and only localized supply disruptions occurred. Many salt producers reported slightly increased salt sales and profits for the year. In the United States, about half of the salt supply is produced as brine, by solution mining, and is used by the chemicals industry. One-third of U.S. salt is produced as rock salt by 14 underground mines. The remaining two production techniques, each with less than 10 percent of the total tonnage, are vacuum-pan-evaporation for refined, food-grade salt, and solar pond crystallized salt.

Jan 1, 2005

By G. Wozniak, R. Rostanski, H. Pfanz, G. Aschan, E. Sierka

"Industrial wasteland is a typical element of the landscape of all the industrialised regions in Europe. There are many examples from Poland as well as from other European countries that post-industrial sites have been undergone natural colonisation and succession to establish in some cases ecosystems of greater biological diversity than the original ecosystems. The post-industry sites regardless of any reclamation carried out, undergo natural successional processes. The respective biological diversity (number of species, and number of plant assemblages) reflects the micro-variety of the specific habitat. This paper summarizes the results of investigations, which have been carried out since 1989 on coal mine water sedimentation pools in the Upper Silesia Industry Region. The aim of this study is to demonstrate the diversity of spontaneous plant communities recorded on post-industrial waste sites. In the course of the long time fieldwork, plant assemblages representing nine phytosociological groups have been identified."

Jan 1, 2005

By D. Duvris

Health and safety issues are a very important aspect of mining activities. Although the application of scientific research and current technology shields workers from many dangerous aspects of mining, accidents do happen. Many companies and institutions worldwide have committed to a continuous effort to minimize such occurrences. In this study, the health and safety data pertaining to the Greek mining and quarrying industry for the last 3 decades are presented and critically evaluated with respect to number of workers, annual production, etc. Appropriate indices are also calculated regarding the incidence and frequency of accidents. Health and safety issues specific to mining in Greek are also discussed.

Jan 1, 2000

By T. R. Ellis

Considerable movement is afoot internationally to rationalize standards and regulations relating to valuations and the qualifications for valuation professionals. In July 2000 the International Valuation Standards Committee released expanded standards, and additional important improvements are planned by 2003. Possible updates to the International Accounting Standards (IAS) and potential adoption of IAS by the U.S. could significantly impact minerals appraisers. Standards designed specifically for mineral asset valuation are under development in Canada and the U.S., with Australia’s internationally respected VALMIN Code providing the benchmark. In the U.S., the all-encompassing Uniform Standards of Professional Appraisal Practice (USPAP) is annually modified and continues to gain deeper acceptance, while the SEC holds fast to its antiquated rule prohibiting reporting of a quantitative estimate and value for non-reserve mineralization. Some important international trade agreements are driving actions to free the trade in professional services. In July 2000, an international workshop was held to initiate discussion on minimum qualifications for appraisers to work internationally. Pressure for uniform minimum qualifications and rules for professionals internationally will continue to build. The U.S. is historically among the slowest countries to implement such initiatives, with its state level licensure barriers having the potential to cause some of its professionals to be stranded in an international backwater. Structural change is needed in Australia’s VALMIN Code to remove conflict with the latest International Valuation Standards. The mineral valuation standards developers of Australia, Canada and the U.S. should work jointly on updating VALMIN for global use.

Jan 1, 2001

By H. Do

In flotation, hydrophobic particles are selectively collected by air bubbles, and the bubble-particle aggregates enter the froth phase. However, less hydrophobic particles drop off from the froth phase, while more hydrophobic particles are recovered. Thus, the froth phase provides an important cleaning mechanism. In the present communication, the froth-phase recovery process has been modeled by considering particle retention times and the carrying capacities of bubbles. The model predictions are compared with the experimental data reported by Seaman et al. (2006). The results show that the froth-phase recovery varies with particle size, particle hydrophobicity, and bubble coarsening.

Jan 1, 2008

By R. P. Proulx

The Meikle Mine is a high grade, underground goldmine utilizing primary-secondary longhole open stoping with delayed backfill to produce 2700 tpd(3000 stpd) of ore. Hot and reactive ground conditions were encountered early on in the mine life. Ground temperatures up to 166°C (330°F) were measured. In the early stages of mining, the mine experienced premature detonations using different explosive products. The learning curve to safely mine this high-grade gold deposit in hot and severely reactive ground was indeed very steep. Currently, the Meikle Mine uses a special buffered bulk emulsion in all blasts to address hot and reactive ground concerns. In addition, exacting procedures are also followed to ensure safe work with explosives. The combination of new explosives technology and strict loading procedures permits high mine productivity with the highest degree of safety.

Jan 1, 2000

Where space is limited, as it is throughout most of the northeastern United States, new construction either takes place high above street level, or below it. In Lower Manhattan, NY both kinds of expansion can be found in abundance. That is good news for the nearly 200 attendees at the George A. Fox Conference, presented by the Underground Construction Association (UCA) of SME at the Graduate Center, City University of New York, on Jan. 30. Among the many projects taking place in Lower Manhattan?s massive trans-formation process, are expansions to the city?s vast underground network of subways and other tunnels. ?New Yorkers either live on the ground or below it,? said keynote speaker Charles J. Maikish while explaining how an attempt to build above street level walkways never caught on in the city. Maikish is the executive director of the Lower Manhattan Construction Command Center. His job is to oversee the $22 billion project that will transform the island by 2010. From the construction of Freedom Tower at the site of the fallen World Trade Center buildings, to the expansion of the Second Avenue Subway, the extension of the East Side Access, No. 7 line, the new trans-Hudson line and numerous waterway tunnel expansions, including City Water Tunnel No. 3, the task Maikish is charged with is a huge one. He is primarily responsible for coordinating the scheduling and staging of the overall rebuilding plan, along with the day-to-day coordination of construction work down-town. He places particular focus on mitigating impacts on the environment and mobility, maintaining and improving access and alleviating congestion of any kind related to construction. At the time of the Fox Conference, there were 59 projects under way in Manhattan. All of those projects need things like concrete and steel delivered to sites in very tight working environments. And some need the equipment in even tighter spaces. ?This is not just about the recovery of Lower Manhat-tan (from the 2001 terrorist attacks) but this is a plan to restore it and to maintain its integrity,? said Maikish. ?I think that is the appropriate response to the terrorist attacks.? When Freedom Tower is completed, it will stand 541 m (1,776 ft) about the skyline. That will be a strong statement to the world about America?s strength. But it is the work that takes place much lower that was of interest to the conference attendees. On this respect, Maikish said Manhattan?s efforts below ground aim to provide relief to the city?s street level congestion and to make sure Manhattan ? already essential to the economy of the United States and the world ? stays current by upgrading the existing telecommunications and technological network while also allowing room for growth in that area.

Jan 1, 2007