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By A. J. MacKellar

The economic viability of any project is generally assessed on an evaluation of the total capital constructed costs along with operating costs, owner's costs and market conditions. This paper will be directed to the role that Cost Engineering plays in the development of the capital costs and the cost control techniques applied thereto.

Jan 1, 1975

By B King

Processing expansion options and mining fleet purchases are major cost items that receive due focus in most cost management analyses. If these items are not needed, they can significantly reduce a project’s short-term capital spend and improve profitability and value to shareholders. When conditions change prior to purchasing equipment, the purchase may no longer represent the best decision for the project.This paper outlines a structured approach for making major cost decisions to improve the value of a project, determining which items should be kept and which should be eliminated.CITATION:King, B, 2014. Cost management optimisation, in Proceedings Orebody Modelling and Strategic Mine Planning Symposium 2014 , pp 7–12 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 24, 2014

By M. Z. Emad, S. Raza, K. Jalil, M. A. Raza, M. U. Khan, S. A. Saki

Dimension stone mining is Increasing because of growing demand from the building and construction industries. Diamond wire saw cutting is a popular dimension stone mining technique around the world. Estimation of the production cost for this method is critical for these operations. n this research a production cost model was developed for the mining of granite using a diamond wire saw. Cost and production data were collected from a granitic dolerite operation in Pakistan for a 4.5-year period, and analysed to identify the cost components. Fuel (34%), labour (15%), consumables (40%), and maintenance (5%) were found to be the four major cost components in this operation. A regression-based dimension stone production cost model incorporating statistically significant variables was developed. The data presented a strong correlation of production cost with fuel, labour, and consumables costs. Finally, a production cost model based on the consumption cost of diamond wire is presented. The model was verified using actual production cost data, which indicated 95% (R2 = 0.95) variance in the data between the predicted and actual production cost values. The model may help field engineers in computing their dimension stone operational cost during the cutting phase.

Nov 6, 2023

By L. B. Rothfeld, R. L. Dolzani

This paper presents preliminary results of a US Bureau of Mines (USBM) study of potential costs of compliance with possible federal regulations for copper heap and dump leaching. The regulations could arise under amendments to the Resource Conservation and Recovery Act (RCRA) and/or the General Mining Law. Estimates are given for the cost of compliance with possible technology standards that would require the use of liners and closure caps regardless of terrain and underlying geology and hydrology. This cost is compared to the cost of compliance with 1992 state requirements for terrains typical of those found at existing copper leach sites in the southwestern United States. Incremental compliance costs are found to widely exceed screening criteria used by the US Environmental Protection Agency (EPA) to denote significant economic impact.

Jan 1, 1995

By L. B. Rothfeld

This paper presents preliminary results of a Bureau of Mines study of potential costs of compliance with the federal Resource Conservation and Recovery Act for copper heap and dump leaching. Specifically, estimates are given for the cost of compliance with possible technology standards that would require the use of liners and closure caps regardless of terrain and underlying geology and hydrology. This cost is compared to the co lit of compliance with present state requirements for terrain a typical of those found at existing copper leach sites in the Southwestern U.S.A. Incremental compliance costs are found to widely exceed screening criteria used by the Environmental Protection Agency to denote significant economic impact.

Jan 1, 1993

By L. B. Rothfeld

In anticipation of RCRA reauthorization and subsequent rulemakings, the Bureau of Mines is studying potential economic impacts of RCRA on mining. For U.S. copper heap and dump leaching operations in a variety of terrains, the cost of liners and closure caps to comply with RCRA Subtitle D ranges from $55 million to $158 million per site, or about $500,000 per hectare ($200,000 per acre). If RCRA technology requirements and financial assurance had been required on current operations, 27 to 100% of production from heap and dump leaching would have been non-competitive at market prices between $2,310 and $1,650 per metric ton ($1.047 and $0.75 per pound) copper. This result is based on an analysis that considers return on capital, corporate overhead, marketing, and freight costs as well as operating and maintenance costs at the mine. Over the same price range, economic analysis using the IMPLAN input-output model on one-or two-county regions indicates potential net job losses of about 570 to 2,700 jobs. Total economic output of those counties could be reduced by about $180 million to $360 million.

Jan 1, 1994

By Jr. Lownie

Estimates of the cost of producing any commodity generally fall into several classes depending upon the motives and needs of the estimator. There are estimates intended to show how low costs might be with favorable conditions if everything goes well. At the other extreme, there are estimates which show how high costs might be if troubles develop. The estimates in this paper for the cost of producing direct reduced iron (DRI) are accompanied by discussion to point out how the final figures may be adjusted in either a promotional or a conservative direction. Because we do not have a specific process and a particular set of conditions in mind when discussing this subject today, this paper deals with the general situation, with considerable attention to how the estimates can be made more specific once one knows the particulars of a given situation.

Jan 1, 1978

By Robert B. Scott

Acid mine drainage, discharging from coal beds, has polluted our streams and rivers since early time. These pollutants affect water quality by lowering the pH, reducing natural alkalinity, increasing total hardness, and adding undesirable amounts of iron, manganese, aluminum and sulfates, The tangible damages are the costs involved in replacing equipment corroded by the acid water, additional treatment costs at municipal and industrial water treatment plants, and damages resulting from corrosion of steel culverts, bridge piers, locks, boat hulls, steel barges, pumps, and condensers. Intangible damages, which are real and important, include destruction of biological life of the stream, reduced property values, and streams rendered undesirable for recreational uses.1 The major problems of mine drainage occur in the anthracite and bituminous coal regions in Appalachia. However, many of the western mining states have significant mine drainage problems in specific areas, but the overall problem is not as great as in the eastern states.

Jan 1, 1970

By Michael Drozd

The operation of an activated charcoal system has five separate unit operations. These unit operations have common points for CIP, CIL and CIS system, which vary widely in application. a. Absorption b. Desorption (Stripping) c. Acid Washing d. Reactivation e. Carbon Handling ( carbon transportation, sizing, de­watering, etc.) Cost optimization starts with the basic operating parameters (design philosophy) set down at the time of engineering design. This parameters undergo almost immediate change due to site specific ore requirements, throughput changes, operator requirements or reagent availability. Activated charcoal is sometimes viewed as simple, uncomplicated reagent that requires not optimization. To some extent, this statement is true, but under most circumstances, if the time necessary to optimize the use of activated charcoal is available, the effort is rewarded with significant savings. CPL-Carbon Link has embarked upon a program of supplying technical support with its activated charcoal. Several operation in the United States have under taken to have CPL-Carbon Link do an operational survey to determine if potential savings are possible. CPL-Carbon Link has offered to do these surveys for projects that are clients or simply would like to have CPL-Carbon Link review their operation. The information accumulated by CPL-Carbon Link is being used to attempt to fashion industry standards so that a common reference point came be establish for activated charcoal usage.

Jan 1, 2000

By Gavin A. Hunt

In order for mines to operate profitably throughout their life it is important to monitor and maximise ore recovery. A common problem facing many mines is the underestimation of clay type and its distribution in ore at the mine face, blast hole or in the ore stockpile. Too much clay entering the heap leach ore stream for example causes a dramatic reduction in heap leach efficacy and or increased leaching times. The end result is poor leaching performance and much reduced metal production. Poor clay identification and quantification is attributable to many factors, including costly and slow off-site mineral analysis techniques, such as XRD, XRF and petrology, the visual and subjective limitations of the core logging geologist and a lack of suitable low cost, high throughput mineral logging instruments. To get round these problems a new, non-contact, imaging spectrometer - the SpecCam - was developed by Spectra-Map Ltd, to allow high throughput identification and quantification of minerals from mineable material. Its novel imaging design can collect millions of data points (pixels) per day; each pixel contains spectral information that allows a wide variety of mineral types, including the smectite and illite clays, and phyllosilicates such as talc and kaolin, to be identified. Because all the ore can be imaged a much more reliable mineral log can be made. Hence, mapping changes in mineral composition - related to variations in phenocrysts, macrocrysts, veining or wall rock - is possible. Examples of SpecCam data from Goldfields Cerro Corona Porphyry stockpile and from Rio Tinto?s Argyle Diamond mine illustrate the mineral identification and quantification capabilities of the SpecCam. More importantly, for the first time very accurate % abundances for the different minerals can be obtained using an image-based modal count technique. The modular design of the camera, plus its extremely flexible high speed filter, mean that the SpecCam can be easily installed on different equipment, each one suited to different ore recovery problems. For example the SpecCam can be used on an automated portable logging frame to measure drill core, RC chips, hand samples or powder, or alternatively installed on a Geotek multi-sensor core logger for high-throughput, automated logging of drill or blast hole core using co-registered multi-sensor data. An exciting recent development has been the installation of the SpecCam on CommoDas ore sorting equipment, used around the world for 24 hour mill-feed monitoring and automatic ore sorting. Real-time ore sorting decisions can be made as material is monitored on a conveyor belt running at 3m s-1, from which the ore can be automatically sorted into high-grade, low-grade or waste streams for example. The three installation options for the SpecCam mean that most mineral analysis and automated core logging or ore monitoring needs can be met at the mine. For the first time rapid and automatic mineral identification and accurate quantification can be made. All of which allow the mine geologist or metallurgist to make important decisions about maximising the metal recovery process.

May 1, 2007

By T. M. Dyhr, T. E. Wilson

Although environmental management costs during mine operation depend on the size, type, climatic and geochemical conditions of operation, general cost categories are identified and mean values, as a percentage of total operating cost, are determined for coal and non-coal surface and underground mines (medium-size) with on-site beneficiation and tailings disposal facilities. Cost trends are charted from 1963 through the present.

Jan 1, 2004

By Joseph A. Dos Santos

"The subject of this writing was first published in 1998 with the emphasis on the hardware cost comparison. Other costs, such as the required land area and spatial volume, were mentioned but not emphasized, as these were not deemed as important for new projects where the space was appropriated as required. During the last decade, these other costs have proven to be more than equal in importance. These costs are emphasized here through specific accounts of actual highangle conveyor installations that demonstrate the importance and the high-angle advantage An update on the progress in sandwich belt highangleconveyor technology is also provided.Origin and progress in sandwich belt conveyorsCover belts of the 1950s. Large volume, highangle conveying by “conveyors with cover belt, dates back to the early 1950s, when such systems were employed at the bucket wheel excavator boom conveyor in German lignite mines to increase the depth of cut without increasing the boom length. Various systems were developed, patented and built. These systems were not a lasting success for various reasons, which are noted by Rasper[1]. In his 1958 “Review of Cover Belt Systems,” Rasper summarizes the characteristics which are worth pursing and those that should be abandoned. The former are akin to good conveyor engineering. The sandwich belt conveyor model. The first sandwich belt conveyor model allowed calculation of the required hugging pressure to develop the bulk material’s internal friction and preclude material slideback. A modern, accurate version of the sandwich belt conveyor model is presented in Fig. 1. This model depicts accurately a derating of the material cross-section allowing an ample belt edge distance that can tolerate normal belt misalignment without material spillage. The calculations must thus recognize that only part of the hugging pressure is imparted onto the material with the remainder transferred belt edge to belt edge affecting a material seal. Mathematical development of the sandwich belt model is covered by Dos Santos and Frizzell in their 1983 article, “Evolution of Sandwich Belt High Angle Conveyors.”"

Sep 1, 2016

By Thomas H. Sheldon

IN the zeal for opening up new ore-bodies, or for. extracting the ore from attractive bodies gal ready opened up, we very often lose sight of the fact, that, after all, the operation of a mine is a business proposition, pure and simple; and for the best working-results should be treated upon a strict business basis. Of course, in every mine of consequence a record is kept of expenditures and receipts, and such glittering generalities as "gross receipts," " net receipts," " mining expenses," .and " per cent. profit," can be told to the cent; but does this . record show economy of management, either as compared with the same record of other months, or as compared to the record of other mines of the' same class ? Moreover, if such a record shows that the cost of mining is high, does it in any way en¬able the manager to put his finger on the leakage? Does it necessarily follow that a mine which makes a profit of, say, 40 per cent on 25-dollar ore, is doing less economical mining than one which saves 60 per cent on 80-dollar ore ? Of course the figures in the latter case look the more attractive, but when it comes to a point of saving everything which can be saved, and of cutting down expenses to the lowest possible cost of operation, the former mine is doubtless on the most firm and economical financial basis. But as the relative merits of the system of mining in the two cases, nothing could be decided without a basis of detailed comparison ; if one system is more economical than the other, why is it so, and wherein does the advantage lie ? This can be shown only by keeping accurately the cost of each mining operation. And no matter how dissimilar two mines may be in character and operation, yet there are a few general heads common to all mining operations. In the first place, it is necessary to break the ore from the solid ground ;

Nov 1, 1905

Quantitative probabilistic ecological risk assessment has been used to evaluate the likely effect on fish diversity and abundance of filtered and bioavailable metals in streamwater affected by acid drainage from the abandoned and remediated Rum Jungle U/Cu mine in the Northern Territory of Australia. The water quality was determined using monitoring data from a gauging station on the East Branch of the Finniss River, downstream of the mine site, and modelled assuming a number of potential water quality management options. The management options ranged from no action, through some flushing options to full catch and treatment of contaminated seepage from the waste rock heaps. The computer code AQUARISK was used to undertake the analyses. Critical criteria for contaminant water concentrations at the site, derived from probability density functions of available fish ecotoxicology data, were found to closely approximate the regulatory trigger values for the contaminants of concern. Modelled predictions of reduced diversity and abundance were also in good agreement with in situ biodiversity measures. Based on a reasonable target of 67 per cent species tolerance for this heavy impacted site, it was found that none of the low cost options for wastewater management was acceptable. Combinations of two of the options approached acceptability. Both of the catch and treat options exceeded the arbitrary acceptability target well. This implied that the more expensive option of liming to pH 10 might be unnecessary at this site. Thus, the use of ecological risk assessment modelling has proven useful in undertaking cost-benefit analyses for this site. The approach provides a management decision-making tool that can be economically used to link expensive on-site environmental engineering options with site-specific ecological goals rather than the previous nebulous aims of æreduced contaminant loadÆ or æimproved biodiversityÆ that often resulted in excessive expenditure without achieving successful environmental benefit.

Jan 1, 2003

By Goutam H. Shahani

Today, the mining and mineral sectors are being impacted by highly fluctuating supply ? demand, extreme price volatility and tremendous market uncertainty on a world-wide basis. This pattern is expected to continue for the foreseeable future. In particular, large consumers of tonnage quantities of industrial gases (oxygen, nitrogen) all have to make informed investment decisions in this uncertain economic environment. Plant owners ? operators need to carefully examine their current and future industrial gas needs in order to develop the most cost-effective industrial gas plant configuration. This can be done by partnering with an experienced engineering company that offers a complete technology portfolio for producing industrial gases. Ideally, the mineral and engineering companies have to work together as a single team to identify the most efficient and economic plant design. This includes an in-depth assessment of capital and operating costs, in order to deliver an optimal solution, taking plant reliability and process safety into account. It is important to consider all the industrial gas needs at a given manufacturing complex, in conjunction with available utilities and infrastructure to develop the best possible long term solution. Oxygen (O2) requirements include: oxygen enriched and oxy-fuel combustion, smelting and hydrometallurgical operations. Nitrogen (N2) is used for annealing. All of these industrial gas requirements have to be examined at a given site over a long term horizon in a holistic manner. Cryogenic air separation was first practiced at a commercial scale in 1902. Since then, the technology has been constantly refined to reduce cost; and improve reliability and flexibility. Today, using advanced engineering techniques, including proprietary process simulation, and modern fabrication techniques, it is possible to build air separation plants that are both low cost and high quality at the same time. It is important to work with an engineering company that owns a complete portfolio of industrial gas technologies, functional engineering capabilities and a variety of plant solutions. Such a partnership can quickly identify a ?sweet spot? for a given situation. By drawing on experience gained from hundreds of projects, it is possible to quickly optimize a given requirement. In situations where a customer wants a complete solution it may be appropriate to provide an air separation plant on a turn-key basis. This will enable the mining and mineral processor to focus on their core business. By using global procurement and construction capabilities it is possible reduce cost and improve project execution, thereby making industrial gas plant procurement simpler and cheaper for the mining and mineral sector.

Nov 1, 2011

By R Norris, M Dunne

Mining and mineral processing is expected by society and obliged by law to operate in an environmentally friendly fashion, minimising the impact on and avoiding damage to the environment. Substantial efforts by the industry, as well as by process and equipment designers have resulted in many innovative developments, which show that operating in an environmentally responsible manner can be achieved in a cost-effective way. This paper showcases five emerging equipment best practices in industry including installation examples. Flip-flow screening machines are proven worldwide in the dry classification of coal and other minerals, reducing the size of beneficiation plants whilst reducing energy, water demand and media consumption. They also allow the screening of wet/sticky materials not able to be sized using conventional screens. The belt press filter is a small fraction of the operating and capital cost of alternative dry tailings technologies. This gives operators who must dry their tailings a competitive advantage and makes such ægreenÆ operations much more sustainable. The filtercake is disposed with other plant rejects, eliminating the need for tailings dams to be constructed and thus also often increasing mine reserves. Mining applications include coal tailings, sand tailings, sinter plant waste and power station fly ash. Screen-scroll and vibrating centrifuges are widely used in the coal, potash and salt industries to dewater the product to low surface moistures. Inclined plate Lamella separators are used for toxic water clarification and/or sludge thickening in many downstream metal industries with the underflow often dewatered in a belt filter press. Such low cost, high capacity thickeners could also be used instead of conventional thickeners at smaller mines. The simple and reliable continuous washing upward flow (CWUF) sand filters have been used for treatment of waste water from coal preparation plants and steel works as well as in the worldwide production of potable water. The filtered waste water from mining processes can then either be reused or discharged from site. Other installations include cleaning mine water to prevent the blocking of dust suppression spray nozzles.

Jan 1, 2006

By Bill Morgan

This paper discusses the economic zones of application for several different types of earthmoving equipment: dozers, wheel loaders in load-and-carry applications, wheel tractor scrapers, articulated trucks, rigid-frame trucks and wagons. Only the medium to large pieces of equipment were considered. From this chart (Figure 1), you can see the size range, in tons of carrying capacity, of Caterpillar equipment and the specific models analyzed.

Jan 1, 1994

By D J. Bradshaw, B Lottermoser, A Parbhakar-Fox

"Best practice for acid rock drainage (ARD) risk assessment still relies solely on the geochemical properties of sulfidic rocks and mineral processing products, despite the fact that a rockÆs tendency to produce acid also depends on mineralogy and texture. Consequently, there are a plethora of geochemical tests routinely utilised by the mining industry to predict ARD formation. Due to limitations associated with these tests and their relatively high costs, analysis of recommended best practice sample numbers is rarely achieved, reducing the accuracy of waste management plans. Our research addressed this through examining the application of geometallurgical data for predicting acid formation, and led to the identification of potential environmental geometallurgy indicators.Samples obtained from an iron-oxide copper gold deposit were subjected to the geochemistry-mineralogy-texture (GMT) approach, an improved methodology for classifying acid forming potential. GMT results were compared against geometallurgical and assay data sets to evaluate: relative carbonate content measurements (measured by HyLogger) and identify how these could be used to calculate effective acid neutralising capacity mineral hardness (measured by EQUOtip) to determine application of this data for calculating lag-time to acid formation opportunities to automate the acid rock drainage index (ARDI) using classified images produced by a GEOTEK logger and automated microscopy.Links between the GMT approach and geometallurgical data sets were identified. Classified mineralogy data has application at stage one, HyLogger and EQUOtip at stage two and computer-based ARDI evaluations of classified images at stage three. Through such integration, ARD characterisation costs can be reduced, with value added to geometallurgical data sets. Furthermore, deposit-wide ARD domaining is possible, and acquisition of total-orebody knowledge more likely. Through adoption of this environmental geometallurgy approach, a better informed waste management plan can be formulated, allowing for best practice ARD sampling in a more cost-effective manner.CITATION:Parbhakar-Fox, A, Lottermoser, B and Bradshaw, D J, 2013. Cost-effective means for identifying acid rock drainage risks - integration of the geochemistry-mineralogy-texture approach and geometallurgical techniques, in Proceedings The Second AusIMM International Geometallurgy Conference (GeoMet) 2013, pp 143-154 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Sep 29, 2013

Tin mining has taken place in the New England region of New South Wales since 1872. Until fairly recent times there was little pro- vision made for environmental protection. Mining methods,which included ground sluicing and open cutting,had considerable environmental impact. Much of the topsoil was lost and there is little vegetation on the infertile and at times toxic, subsoil. Thus much of the lands disturbed by mining have not been stabilised and are eroding, causing extensive pollution of adjacent watercourses. There are more than 1500ha of abandoned tin mine sites in the New England, representing one of the worst rehabilitation problems in New South Wales and reflecting poorly on the mining industry as a whole. Recent tin mining operations incorporate progressive rehabilitation in their mining cycle. Topsoil is stockpiled and later respread. This topsoil contains a seed source, facilitating revegetation and thus stabilisation. The tin mining industry, under considerable cost pressures at present, is seeking a cost- effective revegetation technique. Most of the mines in the New England are situated in a forest environment. Trials have been conducted in the past using exotic pasture species with limited success due to the characteristics of the subsoil. Other revege- tation trials have used pine or eucalypt tree species. The cost of these techniques is a major disadvantage. Certain acacias species were observed colonising disturbed tin mining areas on very infertile subsoils. Acacias have a number of characteristics indicating a possible applic- ations in mine rehabilitation programmes.

Jan 1, 1987

By M Russ, J Gediga

This paper shows an economic feasible approach to implement greenhouse gas (GHG) reduction measures into the mining and metallurgy industry (MMI). The goal to improve energy consumption is directly linked to the reduction of GHG emissions in the MMI. A baseline scenario of the considered reference system and of the respective reference year has to be designed and analysed. In a second step an analysis of the same operation using the best available technology (BAT) processes is carried out to generate a basis for a benchmark system. The identified gaps will be reported and the potential GHG emission reductions will be put into relation to the investment, running cost and generated carbon credits of the new process technologies to be implemented. This economic feasibility calculation is necessary to realise a cost efficient GHG reduction roadmap decision-making for implementing new technology into the companyÆs business operations. The GHG reduction roadmap is developed using the marginal abatement curve approach.

Jan 1, 2009