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By J. Girard-Dwyer, T. Camm

Direct costs such as medical, legal, administrative, and worker’s compensation costs, property damage, lost earnings, and lost benefits are typically used to compute the economic impacts of occupational injuries. However, there are also a number of less obvious, indirect costs that substantially contribute to the overall loss costs. In fact, for every $1 of direct costs an estimated $3 to $5 of indirect costs are also incurred. This paper presents a systems approach that incorporates engineering, economics, psychology, and sociology in order to evaluate the total value of investments in safety. By studying the interrelated system comprised of the injured worker, their family and coworkers, as well as the organizational structure that was the setting for the incident, a methodology can be developed that will more accurately capture the true costs of mine injuries.

Jan 1, 2004

The concept of "profit" is implicit in the definition of an ore reserve. It is suggested that the flexible concept "economic" is more appropriate. This allows different economic considerations to be taken to account when determining what is ore at the feasibility study stage; during actual mining production; before mine closure; and from the viewpoint of the national economy. Economic factors which are highly variable, and largely beyond a mining enterprise's control, affect the economic exploitation of a mineral resource. Major economic factors include: metal prices; operating costs; the cost of original and replacement capital equipment; the cost of capital; taxation and royalties; inflation; exchange rates and the state of the world economy. The paper suggests why a careful quantification of the average value, trend, and variation from the trend of major economic factors should be made and how this will lead to a better definition of ore reserves. The paper also discusses the necessity of reappraising economic factors during the life of a mine in order to maximise the economic surplus and to minimise the wastage of natural, economic and human resources employed in mining.

Jan 1, 1979

By Gerald Blackmore

"This paper suggests that with the settlement of long-term contracts of fifteen years' duration, with prospects of extension, the coal mining industry has, for the first time, a complete commercial justification for large-scale planning.The labour costs of coal production over past years are analyzed and, with the acceptance of the premise that the basic shift rates are certain to rise in the years to come, the paper suggests that forward planning should provide &r capital investment to make a traditionally labour-dense industry into a capital-dense industry.Automated methods of manpower deployment and timekeeping and the monitoring of all equipment back to a central control point are discussed as ail-important means of obtaining maximum utilization of high-cost capital investment.Principles of payment of the work-force, and the utilization of equipment 24 hours a day, seven days a week and the maximum number of days a year, are dealt with as means of achieving maximum capital utilization. Some of the new technical underground and coal preparation problems which will undoubtedly result from the concentration of workings and maximum machine utilization are discussed, and the author makes suggestions as to how these might be solved.In short, the author predicts that if the coal mining industry is prepared to recognize the problems and invest in modern equipment backed by highly trained staff. then the outcome will justify the high capital investment involved. He stresses the importance of human communications in achieving this end."

Jan 1, 1970

By R. H. C. Andrew

With the advent in recent years qf mechanization in deep-level gold and platinum mines, large quantities of rubber was are being used on both production and support vehicles. Conditions in these types of mines are extremely harsh and, as a result, we performance is significantly lower than in other types of mining such as open-cast base metal mining, where more favourable conditions prevail. Various options are available to the user to reduce tyre costs, including the use of retreads, the filing of tyres, and the repair of damaged tyres. While these methods may be generally successful in open-cast conditions, their use in deep-level mining needs to be carefully evaluated for each particular set of conditions. A basic requirement for any evaluation of we costs is the availability of reliable data on tyre performance and, for this reason, it is essential that proper tyre records are maintained This paper reviews the performance of tyres in deep-level gold and platinum mines in Johannesburg Consolidated Investment Company, Limited (JCI) over a period of about 8 years, and shows how the costs of retreading and tyre filing can be evaluated in practice. It also discusses the cost implications of repairing damaged tyres.

Jan 1, 1994

By Wendi H. Cooksey

This paper examines two comminution circuits on a hypo­thetical gold ore deposit with both small-scale (1,000 short tons per day) and large-scale (35,000 short tons per day) production rates. The most appropriate circuit is dependent on the highest economic performance with a combination of crushing and grinding equipment to achieve the desired product size. The selected circuit is dependent on costs associated with project cri­teria, equipment selection and ore characteristics. Factors influ­encing the selection of the comminution circuit require system­atic evaluation to optimize plant performance and maximize eco­nomic return. The small-scale circuit economics responded best to three-stage crushing followed by a single-stage ball mill. The large-scale plant favors a primary crusher followed by SAG milling and ball milling. The conclusions from this paper indi­cate that each project must be evaluated separately to determine the most economic means of reducing the size of the ore.

Jan 1, 1998

By Robert W. Bartlett

"Bioheap pretreatment of sulfidic refractory gold ore prior to cyanide leaching is a promising new technology, especially for low-grade ores that cannot afford to be oxidized by pressure leaching or roasting. When an ore contains both refractory and non-refractory (oxidized) gold, an economic decision must be made whether, or not, to pretreat before cyanide leaching. This choice is more complex than the familiar ore/waste cut-off grade decision. Pretreatment usually increases recovery but delays receiving revenue. Based on choosing the processing route that maximizes the present value of the ore, an equation is developed that computes a ""critical cyanide leachable gold grade"" for determining whether pretreating will be profitable. If the ore's actual cyanide leachable grade, without pretreatment, is above this ""critical grade,"" it will not pay to pretreat. The waste/ore cut-off grade, pretreatment yield (leachable grade after pretreatment), total gold grade, pretreatment operating cost and the project's financial discount rate are parameters in the equation. Results of example calculations are provided. This equation can be used for mine development planning and, when bioheap pretreatment is an available option, for daily operating decisions on individual ore blocks.IntroductionOres that are refractory because of sulfide mineral encapsulation of microscopic gold are becoming important. These ores must be pretreated to oxidize the sulfides to liberate the gold prior to cyanide leaching. The conventional pretreatment process technologies are pressure leaching with oxygen and two-stage fluid bed roasting. However, low-grade refractory ores cannot afford the high operating costs of these processes. And, small mines with limited reserves cannot justify the high capital costs of these processes."

Jan 1, 1997

By Alfred Jr. Petrick

Modelling of cash flows and calculation of net present value of rate of return over the expected life of a mine/processing unit continues to be the accepted basis for mineral investment decision-making. The computer and spreadsheet programs have greatly improved ability to perform sensitivity and risk analysis, hence our ability to deal with key analytical problems. These problems of cash flow analysis result from the necessity of forecasting an uncertain and risky future. Cash flow models begin with the critical assumption of a "design basis", then integrate all of the variables relevant to the investment decision including forecasts of price, cost, taxation, financial conditions, and company strategy. Alternate "scenarios" portray possible future outcome of the investment decision. The potential for straying from reality is enormous. The computer has eliminated the time consuming hand calculations from the cash flow analysis, but the analyst still struggles with the risk of trying to predict "how the project will really turn out".

Jan 1, 1991

By C. A. Grandison

The economic evolution from an agrarian society to an industrial and service-oriented economy is apparent to most students of history. The long-term trend is almost taken for granted, it does not require explanation — it is accepted as the nature of man to improve his standard of living. However, there are fluctuations around this trend line which have provoked a great deal of thought. The ability to understand and control these fluctuations would yield many benefits, it would eliminate economic waste and public hardship, and would no doubt make a few fortunes. I f it is not possible to control or eliminate these fluctuations, then a reasonable forecast of the tinting, rate of change and magnitude of the fluctuations would be invaluable to industry and government.

Jan 1, 1976

By J. C. Agarwal

Major scientific discoveries cannot be programmed. New or frontier technology, however, can and should be planned. It is the vital force underlying the business strategy of a vigorous and profitable mining and metals company. Generally, a radical departure from existing technology is required to 1) Enhance the competitive value of ore reserves, i.e., to turn low grade or marginal reserves into competitive reserves. 2) To increase yield and decrease costs. 3) To decrease investment. 4) To increase mine life. 5) To improve product quality to meet market demands. The very definition of frontier technology implies that it is so different that the old plant, if already in use, will not be directly suitable to use the new technology. Therefore, a priori, we know that the commercialization of frontier technology would very likely involve new investment. The recommended technique of economic and technical analyses, I propose to call "Success Analysis.'' Simply stated, it forces us, by step- by-step procedure, to ask "what is needed to succeed in this particular project." Therefore, the first step is to identify what is meant by "success." The definition of "success" requires an agreement with top management or sponsors of the project as to what constitutes "success" in their minds as contrast to the technical people perception of "success." In general, top management would define success as meeting: 1) The technical objectives, i.e., technology being developed would produce the desired product at the acceptable quality. 2) Financial objectives, i.e., when commercialized, the project's capital cost, operating costs and return on investment are better than the projects they would normally fund. The return has to be better because new technology is inherently riskier. 3) Marketing objectives in that the project will produce product of acceptable quality in timely manner, i.e., scale-up to commercial plant would not cause undue delays in start-up and that large fix-up expenditure would not be required to protect the projected return on the investment. Many projects are started in the laboratory to develop "Frontier Technology" in mineral processing. Most of these efforts are never commercialized. There are many causes of these failures. The major causes are listed below: 1) Inadequate communication with the sponsors of the project so that project objectives are defined and agreed to by all. 2) Ill-defined technical problems. 3) Incomplete development of technology. This has two major components: a. Incorrect scale-up and engineering. b. Inadequate start-up and maintenance planning. 4) Incomplete and over-optimistic process economics. 5) Lack of understanding of the future behavior of the marketplace. 6) Failure to complete R&D effort by the time it is needed. 7) Incorrect projections of human resources required; that is, technical, managerial and operating. 8) Lack of realistic forecast of the expenditures required for commercialization of the R&D effort. These pitfalls can be avoided by comprehensive planning and the use of success analysis technique. The major elements in "Success Analysis" are: 1) Identification of the "need" for new technology. 2) Unbiased and complete scale-up engineering. 3) Acceptable economic feasibility with enough margin of error in the sale prices and operating costs to justify the inherent risks in frontier technology. 4) Timing for availability of investment capital and markets. Many failures in the development of frontier technology are preordained because the initial selection of the research project has been without adequate attention to the needs of the industry. Many very innovative hydrometallurgical processes for recovery of copper from concentrates were developed in the past twenty years. They have not adapted except to a very minor extent because they did not satisfy the success analysis criteria. The copper industry in North America needed a process to compete against high grade ores and to avoid

Jan 1, 1985

By J. M. Mutmansky, A. Wang

This paper defines the elements of a basic economic model for decision making when considering a methane drainage system for an underground coal mine. A drainage system entails significant capital and operating expense; hence the decision to utilize drainage must be made carefully. The model outlines the basic structure of decision making and considers the costs and benefits when the methane is marketed and when the methane is vented to the atmosphere. The effects on mine safety and the dust levels in the mine are also considered, both in a general format and as economic variables. Sources of information for executing this decision making are provided for an actual mine decision.

Jan 1, 1999

By A. Wang

This paper defines the elements of a basic economic model for decision-making when considering a methane drainage system for an underground coal mine. A drainage system will require significant capital and operating expenses; hence the decision to utilize drainage must be made carefully. The model outlines the basic structure of decision-making and considers the costs and benefits when the methane is marketed and when the methane is vented to the atmosphere. The effects on mine safety and the dust levels in the mine are also considered, both in a general format and as economic variables. Sources of information for executing this decision-making are provided for an actual mine decision.

Jan 1, 1997

By J. M. Mutmansky, A. Wang

This paper defines the elements of a basic economic model for decision-making when considering a methane drainage system for an underground coal mine. A drainage system will require significant capital and operating expenses; hence the decision to utilize drainage must be made carefully. The model outlines the basic structure of decision-making and considers the costs and benefits when the methane is marketed and when the methane is vented to the atmosphere. The effects on mine safety and the dust levels in the mine are also considered, both in a general format and as economic variables. Sources of information for executing this decision-making are provided for an actual mine decision.

Feb 24, 1997

By E. A. Rychkun

"For the last 700years of recorded economic history, man has been subjected to alternating inflationary and deflationary patterns. Through this period of time, a severe deflationary pattern has developed approximately every 55 years, creating 12recordable occurrences. Through the last two centuries, this severe deflationary phenomenon has come to be known as a depression. As these depressions have repeated themselves regularly, they are cyclic. This in turn leads to the question of whether the 13th cycle will also repeat itself in the form of a depression. As this cycle is now 51 years old, we must consider the possibility at about 1984.In analyzing a 700-year record of consumer prices in Southern England, the 55-year cycle appears to vary in shape and intensity. This varying phenomenon is due to the effect of longer cycles upon which each one ""rides "". Because each cycle effectively rides on the next largest, which in turn rides on the next largest and so on, the combined measured effect of all cycles together at any point in time is always unique. This means that anyone cycle can never repeat itself in an exact identical manner. The combined effect therefore is what we observe in the form of prices and, as cycles interact, variations in deflation are produced . The ""science"" of economics attempts to quantify and develop theory on situations which are never identical and hence can be conservatively classified as a useless predictive tool.This means that more unconventional approaches may be required to predict our economic future. In looking at previous depression cycles, it is possible to recognize similarities in human behaviour patterns and hence the resulting economic movements. These behaviour patterns create major events or influencing factors which set the scene for a major deflationary condition. The way in which these factors occur, however, is not predictable. As more and more of these similar events are identified in each cycle, we can increase our confidence on the probability of the last event occurring (a depression). By also unravelling the set of larger cycles, we can determine the potential combined effect at any point in the future.This paper presents a system of cycles ranging from 800 years to 3 years which appear to operate in our economic system. By so doing, a long-term projection into the next century can be made. Finally, the paper deals with the main controlling similarities within the depression cycle, to show that a comparison with our current cycle implies that a major deflationary collapse in the mid 1980's is virtualy inevitable."

Jan 1, 1980

By A. S. Richardson

THE design of mine airways receives, in general, very little engineering treatment. To a large extent this is, of course, due to the fact that information upon which to base calculations is seldom available in definite form. In many mines the extent of the workable deposits may not be known at the time an air course is planned, and the length of service is indeterminable. Volume of air required for ventilation may also increase with extension of the life of a property, and natural obstacles, such as heavy ground, often place limitations upon the size of opening that can be maintained. Perhaps a majority of the shafts used in ventilation of metal mines were originally intended as hoisting shafts, and many of the tunnels and cross-cuts similarly used, were also designed as haulage ways or for other operating purposes. Even when a shaft is sunk solely for ventilation, custom usually dictates a size and shape consistent with the type commonly used for ordinary operations, because experience has demonstrated it can be excavated and maintained. In fact it may not be very far wrong to say most ventilation openings were never made with any consideration as to economic design for such use. When an air course is required to pass air between different parts of mine workings under a fixed pressure, the size of opening required for a given volume of flow, is, of course, determined by the resistance factor of the air course. It is then impossible to proportion the opening with reference to economics of power consumption, and this paper is limited to the design of openings where ventilation pressure or power consumption may be varied for economic advantage.

Jan 2, 1926

By Patrick Wong

The design of piling platforms is addressed in BRE (2004) for both fine grained and coarse grained subgrades. However, for coarse grained subgrades, piling platform designs can often be overly conservative due to either conservative assumptions on soil friction angle, or concerns over density variations of granular fill, particularly for made-ground. This paper provides guidelines on economic design of piling platforms on coarse grained subgrade by providing recommendations on ground characterization, assessment of soil properties and the use of non-linear stiffness soil behavior. An innovative performance-based design approach is also introduced, utilizing proof rolling with associated testing and interpretation using small strain theory to overcome concerns regarding potential ground variability of made-ground. A case study is presented to demonstrate the successful application of this performance-based approach to avoid having to construct a new piling platform over a 2 ha area. Small strain, non-linear stiffness theory was used to enable a practical proof rolling pressure to be adopted without having to reach the design or ultimate operating pressure. The author considers that the performance-based approach adopted on the case study may be similarly applied to a range of other projects to derive economic solutions.

Nov 1, 2022

By James Boyd

All mining and milling enterprises must be based on adequate ore reserves. Reserves must be established by physical exploration, and the orebody should be of sufficient size and grade to insure recovery of capital invested in mine purchase, development, and mill construction and to provide a reasonable profit. Determination of these economic factors is so complicated, and present costs of mine development and construction so great, that analysis can be made only by competent persons qualified by experience in this field. What rate for maximum efficiency? Unfortunately, even today mills are built before deposits have been adequately outlined, and there are rusting monuments to such folly in nearly every mining region. Also there is a tendency to be guided by the philosophy that "if a little is good, a lot is better," which leads to the conclusion that mining at a given rate and making so much per ton will yield a profit of so many dollars per day. Consequently, why not build a mill to treat twice as much per day and make twice as much money?

Jun 1, 1956

By R. Brantley Sudderth

There are three broad categories in which most solvent extraction technology can be distributed?: 1) reagents, 2) equipment, and 3) systems. Reagents which are now used in commercial solvent extraction plants are of many chemical types, and each possesses certain properties which make it more economically desirable than another alternative. The equipment which is' used in solvent extraction plants for contacting the organic and aqueous phases and separating the same is varied. Most common to the industry is the mixer-settler unit which in itself, can be of varied design; but many new innovations in contacting and separating equipment have been recently introduced or are :now being studied. Each specific solvent extraction application will often dictate the type of contacting and separating equipment used. Obviously, the trend is toward smaller less expensive equipment which reduces the often expensive organic inventories necessary for most solvent extraction plants. The current thrust of .investigations in ancillary equipment is usually aimed at recovering organic from solvent extraction sludges or from aqueous streams exiting the process.6 This type of equipment helps to reduce the total organic losses from solvent extraction plants and thus reduce the operating costs. The term "systems" in solvent extraction applies to the manner in which a solvent extraction process is carried out. This manner is usually dictated by the properties of the reagent which is used, and it involves a tailoring of the equipment or the process flowsheet. Some of the things which can be tailored are: 1) The aqueous media -whether acidic or basic and what type of acid or base 2) Counter-current or single stage (co-current) contacting 3) EMF or pH control 4) Organic "crowding" alternative 5) Heating or cooling process streams Regardless of the type or extent of tailoring, efforts to do this are usually a result of the low cost of solvent extraction as a unit process.

Jan 1, 1977

By Norman D. Fitz Gerald

THE growth of domestic requirements for motor fuel has been phe-nomenal, rising year after year in a fashion almost unique among com-modities, resisting depressions and forging rapidly ahead in times of prosperity. Consumption advanced from 226 millions of barrels in 1925 to 522 millions of barrels in 1938; or 130 per cent. The economic influ-ences generating and sustaining this demand are of vital concern to the petroleum industry. The general factors affecting utilization of motor fuel are well known but it is the purpose of this paper to employ the recently developed technique of economic dynamics to describe them mathematically. Such problems in economic analysis are complicated by the freedom of all the variables to fluctuate, their mutual interdependence, changing incidence upon one another, and the nonquantitative character of some of them. Economic quantities and relationships, unlike those of the physical world, are continuously changing and this dynamic characteristic is both a distinguishing and confusing feature in economic research. The com-plexities of the problems require application of the analytical devices of mathematical statistics to uncover the probable relationships between factors. The procedure employed is to formulate a logical relationship linking the dependent to the independent variables, and then simul-taneously, rather than sequentially, determine their separate effects by multiple correlation. This transformation of common knowledge to quantitative terms makes it possible to measure the probable effects of changing conditions upon requirements, assisting in the sound interpreta-tion of economic policies. The utility of the results of such dynamic analysis is in sharp contrast to the sterility of the trends and other simple empiricisms of descriptive statistics. It is not intended in this study to throw light on the reasons why any motor fuel at all is consumed; but to discover relationships explaining why more was consumed at one time than at another. Specifically the prob-lem is confined to the measurement of the influences of statistically

Jan 1, 1940

IT IS impossible to speak in exact terms of the effect that selective flotation has had, is having, and may have on the State of Utah. Its results enter into the economic structure of the state in so many ways and its ramifications are so widespread, that every line of industry is affected. Some effects can be definitely determined; others can be reasonably approximated; but the effect as a whole can not be set out in exact figures. Utah is essentially a mining state; mining is its basic industry and always will be. Agriculture, equally a basic industry, and of course, equally vital, can be practiced on only 6 per cent. of the 85,000 square miles of its area. It follows, therefore, that the economic future of this state depends upon a development of its natural resources. About 6 or 7 years ago, the mining industry in Utah was at a low ebb. This condition was caused partly by postwar conditions and other temporary causes, but prevailed also, which was most important, because the direct-smelting ores of the state were being rapidly exhausted and the cost of treatment of complex ores was almost prohibitive. Furthermore, the wet concentration of low-grade ores was unsatisfactory and did not result in producing a good smelting product. On visualizing this situation, one of the large smelting companies in the valley had the courage, ability and faith to develop and expand the principles involved in selective flotation of complex ores. This example has been followed by other smelting and reduction companies and the result has changed the entire aspect of the mining industry in Utah. The utilization of the zinc in the low-grade, lead-zinc-silver ores was the principal problem to be solved. The average yearly production from the State of Utah for the 10 years beginning 1914 and ending 1923, was something less than 10,000 tons of zinc concentrates. This period includes the world war, when abnormal prices stimulated production. In 1924, selective flotation began to be practiced on a considerable scale, replacing concentration by gravity and bulk flotation which had been used generally until this time. PRODUCTION AND VALUE OF ZINC CONCENTRATES The production of zinc concentrates during 1924 was approximately , 24,000 tons, or twice the average yearly production of the previous 10

Jan 1, 1928

By Hu Harries

WE RECENTLY completed a study for a client, who is an applicant to export gas from the Province of Alberta, on the effects of gas export on Alberta's economy. This study was part of the client's application ?before the Conservation Board, and, no doubt, some of you are familiar with it. Submissions by other applicants in earlier hearings before the Board and before the Royal Commission on Energy, as well as claims made by parties opposing export, have also brought forward a number of other opmwns regarding possible economic effects. Ali of these studies have been on a piecemeal basis. They have dealt with particular aspects of particular applications, and only indirectly and by inference with the overall question of gas ex-port. We have prepared this paper to review the overall picture and ex-amine, as far as time permits, all sides of the question. While the paper is entitled Economic Effects of Gas Export on Alberta, we felt that the area considered should in-elude northeastern British Columbia, not only because Westcoast, the first major gas export project, is essentially a northeastern B. C. project, but because this area has historically been, from the point of view of economic, if not of political, geography, part of Alberta. In this paper, when we talk of export, we mean export from the Province or, in this case, from Alberta plus northeastern B. C. Sales to other parts of Canada have exactly the same effect on the economy of this area as l1ave sales to the United States, provided, of course, they are made on equal terms.

Jan 1, 1958