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By Tronson K

Improvements in technology do not necessarily lead to higher profits: the benefit of lower costs can be captured by coal buyers, governments and workforce rather than by the colliery operators. The economic impact of longwall mining in Australia has been critically assessed to provide lessons for the future. For a variety of reasons, companies investing in longwall equipment in the past five years have generally not achieved an adequate return on the funds invested. The effect of technological innovation must be examined in the light of competitive forces operating in the market. Projections of cost reduction trends in the coal industry have been applied to a world cost model to provide a picture of the coal industry in the year 2000.

Jan 1, 1988

By J. Elbrond

"This paper describes qualitatively the progressive are losses and rock dilution in a mining project from the geological modelling to and including the concentration. A simple theoretical model of the net present value of a deposit, assuming a log-normal grade frequency function, is used to find the pair of decisions on rate of production and cut-off grade, which maximizes the net present value. Various degrees of ore losses and rock dilution are then applied on this optimum, and the resulting decreasing net present values are calculated, as well as the increasing cost of metal and the increasing metal losses as a function of are losses and rock dilution.IntroductionDue to a variety of uncertainties, to inevitable lack of precision in deposit estimation and in mine planning, and due to production constraints, ore losses and rock dilution occur throughout the many phases of a mining project. The phases range from the geological definition of the orebody, over the cut-off grade optimization and decision, over the design of the mining method and the actual mining to the ore dressing, where the final loss of valuable ore into the tailings occurs. Quantification of ore losses and rock dilution are mostly difficult if not simply impossible to obtain. At the end-phase an estimate of the total dilution may be obtained with some degree of precision by observations of the amounts and analysis of concentrate and tailings. It is much more difficult to estimate the total ore losses because the uncertainty of the geological modelling in the initial phase and in the mining phase is very difficult to quantify, despite the use of geostatistics for grade estimation.Many attempts at quantification of ore losses and rock dilution have been made and some examples are shown in Table I. Although they differ widely from each other, it is obvious from these figures that ore losses and rock dilution are significant and have considerable effects on the economical results of a mining operation. Life length, net present value, cost of producing metal and the loss of metal are all affected."

Jan 1, 1994

By Joseph E. Pogue

THE period of new oil discoveries in Illinois began in February 1937, when The Pure Oil Co. found the Clay City field the forerunner of a number of limestone pools. The importance of the area was emphasized greatly in December of the same year with the discovery of excellent sand production by The Carter Oil Co. at Louden and in June, 1938, with the discovery by The Texas Co. of the Salem field producing from two sands and one lime- stone horizon. By September, 1939, new discoveries in Illinois were estimated to have added, under prevailing production practices, some 500,000,000 barrels to the crude oil reserves of the United States and to have produced to that date some 63,000,000 barrels with daily production passing the 300,000-barrel mark by Sept. 1.

Jan 1, 1939

By Leonard Bronitsky

The construction mineral aggregates industry--the largest industry on a tonnage basis--is threatened with large shortages in the near future. Ironically, these common minerals which include sand, gravel, and stone are among the most plentiful in the earth's crust. However, as these minerals are low in value and used in large volumes, they are extremely sensitive to transport cost, e.g., a haul of 20 miles doubled the delivered cost of mineral aggregates. Consequently, these minerals must be located close to points of demand to have economic usefulness. But the development of new deposits is virtually impossible near many urban areas for legal, sociological and economic reasons. The spector of unfinished urban transport systems, curtailed residential construction, and a general deterioration of the physical urban plant, looms as a direct consequent of future mineral aggregate shortages in the U. S. metropolitan areas. The shortages of mineral aggregates in the Greater New York Metropolitan Area (G.N.Y.M.A.) are prototypical of the shortages faced by the U. S. Metropolitan areas. This paper presents an economic analysis of the consequences of not considering the broad aspects of conservation economics as a major component of resource management. The needless annual cost for the G.N.Y.M.A. is shown to be $30 million.

Jan 1, 1974

By Norman Gerald

THE lack of a continuous operating balance in petroleum refining, which is analyzed in this paper, is by no means a feature solely of this division of the oil industry. Serious disequilibria of a capital as well as an operating nature exist both in the producing and marketing departments, while problems in the former and to some degree the latter are complicated by political involvements. Attention has previously been directed to the unstabilizing influence of present proration formulas in stimulating unnec-essary drilling.1 While equilibrium in petroleum refining operations has been fairly well maintained in the past decade, examination of departures may prove fruitful. Economic analysis is the application of time and motion study to the functioning of management, rather than labor. Properly applied it may reveal changes in policies that would increase the utility of the properties and facilities of the industry for stockholders, employees and the public, while contributing a stabilizing influence to the general economy. The study of economic equilibrium is essentially one of measurement and interpretation, requiring adequate data and the development of a tech-nique of analysis that employs statistical and mathematical methods as a supplement to the broad descriptive phase of economics. Economic equilibrium in petroleum refining is a dual concept. It embraces both the over-all balance between total storage and total demand for major products and the internal balance between the demands and inventories of the various products. The latter is the more complex of the two for it is concerned with proportionating the supplies of the several products stemming from the joint source to the demands for the individual products which are subject to wide variations. All the products are essentially nondurable goods, and they are used both by producers and consumers but in varying proportions. Motor fuel is very largely a consumer's good, while residual fuel oil is almost entirely a producer's good, the other products falling between these extremes. The peculiar-

Jan 1, 1939

Completion of a project requires two separate money-focused activities, namely economic evaluation of the cash flows underlying the project (before financing) and if the economics look promising, how it can be financed. Economic evaluation might be best led by a person with a technical-operating background, whereas financing might be best led by an accountant. Both should be presented in simple language with easy to understand models. Economic evaluation has a sad and bad history because it evolved from the fringes of accounting. Anyone can become a self-appointed practitioner. Some still take pride in mathematical complexity without realising that they distance themselves from the decision-makers and alienate other team members. Today there is no evaluation modelling consistency across the mining industry and this reflects poorly on our discipline. It is not tolerated amongst our peers in engineering and accounting. In 2009 æbest practiceÆ economic evaluation modelling is well defined. It is:easy to follow;tailored to its purpose;transparent;discipline, rigour and consistency;recording of all source data; and hencequick to audit. Mantra: If you cannot readily understand my model you do not have a problem, I do! The task of the economic model is to make the range of business cases underlying the decision easy to understand. Intellectual power is used to simplify the decision to its key issues and risks and to present the full range of possible business outcomes in readily understood terms. Project team members, management and the board must be able to make their decisions with æeyes wide openÆ. A steering committee should be established to develop a set of standards and practices that could be adopted for economic modelling within the industry. The industry needs to purge itself of the undisciplined economic evaluation modelling that now characterises the discipline.

Jan 1, 2009

By K. Oraee

Zarshuran gold deposit, with the total reserves of some 12.5 million tons of 4.18 g/ton ore, is considered to be an important gold mining project in the area. In this paper the feasibility studies of the whole project is carried out on the basis of several economic variables. Given that mining data are often of uncertain nature, these economic variables have therefore been estimated under the conditions of uncertainty. The resultant Net Present Value is hence also obtained under the same conditions. For this purpose, a model is first devised with the help of Excel and COMFAR software. The model is then developed that considers different scenarios which would result in different expected values for the economic variables. It is concluded that the NPV of the project is most sensitive to gold and silver price and that other variables such as discount rate, operating and capital cost all affect the feasibility of the project with lower degree of severity. Finally, risk analysis is also carried out using Mont Carlo technique, in order to estimate the most probable value of NPV. The average NPV calculated in this way is US$ 49.7 Million, whilst without due consideration of risk, this would be US$ 36.6 Million. The techniques used, together with the procedures adopted in this paper, can be used in feasibility studies of all mining projects. Such decision would result in more accurate Net Present Values than expected from other frequently used methods.

Jan 1, 2011

By M. Drozd, M. Somppi, Z. Yamak

"Granular activated carbon is widely used in the gold mining industry for gold extraction from aurocyanide-containing slurry. The extraction process can employ carbon as part of the gold recovery operation for various circuit designs including carbon-in-pulp (CIP), carbon-in-column (CIC), and carbon-in-leach (CIL) circuits. However, various qualities of activated carbon exist and the durability of the material can change significantly from source to source. Handling this expensive reagent can pose challenges when fine carbon losses occur in the CIP, CIC, and CIL circuits. Additionally, any gold that is adsorbed to these carbon fines can also be lost by various mechanisms including carbon attrition and fracturing, inefficient coarse-fine separation, and poor carbon fines capture. With the above in mind, a series of tests were conducted to investigate standardizing simple laboratory methods for testing carbon quality. A standard procedure beyond or enhancing ASTM methods can serve as additional starting points for evaluating carbon specific to the gold industry. The investigation focused on size distribution, flatness, wet attrition resistance, surface area, gold kinetics, and gold loading. The final results provided information to generate an equation for ranking carbon samples to plant performance.IntroductionActivated carbon for use in gold extraction is amongst the most commonly found processes in modern gold-milling plants. Although gold losses are inevitable in the milling process, operators often focus on the importance of maximizing gold recovery. One focus area that is important in gold recovery is optimizing the use of activated carbon and examining potential changes to realize improved economics for carbon-in-pulp (CIP), carbon-in-column (CIC), and carbon-in-leach (CIL) processes."

Jan 1, 2017

By M. Drozd, M. Somppi, Z. F. Yamak

"Activated carbon is used to recover gold in solution from various gold circuit designs including carbon-in-pulp (CIP), carbon-in-column (CIC), and carbon-in-leach (CIL) processes; however, the characteristics and durability of the activated carbon can vary. Handling this medium poses challenges when fine carbon losses occur in the CIP, CIC, and CIL circuit discharge. Additionally, adsorbed gold on carbon fines can be lost to the discharge. The studies in this paper aim to standardize laboratory methods for testing activated carbon qualities specific to the gold industry. The investigation focused on size distribution, platelet content, wet attrition resistance, gold kinetics, and gold loading. The results demonstrate that a 96 h attrition test and a gold loading test form a basis for ranking carbon samples based on expected economic performance of the plant. ¦ KEYWORDS Activated carbon, Carbon attrition, Carbon ball-pan hardness, Carbon evaluation, Carbon fines loss, Carbon turnover RÉSUMÉ Le charbon actif sert à récupérer l’or en solution dans diverses conceptions de circuits de broyage d’or, notamment les procédés de charbon en pulpe (CIP, de l’anglais carbon-in-pulp), de charbon en colonnes (CIC, de l’anglais carbon-in-column) et de lixiviation au carbone, ou charbon au lixiviat (CIL, de l’anglais carbon-in-leach). Toutefois, les caractéristiques et la durabilité du charbon actif varient. La manipulation de ce milieu pose des problèmes dès lors que se produisent des pertes de carbone à grain fin dans la décharge des circuits CIP, CIC et CIL. Par ailleurs, l’or adsorbé sur les fines de charbon peut se perdre durant la décharge. Les études réalisées dans le cadre de cet article visent à normaliser les méthodes de laboratoire pour tester les qualités du charbon actif spécifiques au secteur de l’exploitation aurifère. L’étude portait sur la composition granulométrique, la teneur des plaquettes, la résistance au frottement humide, la cinétique de l’or et l’adsorption de l’or, à savoir la capacité du charbon actif à adsorber l’or sur une période spécifique. Les résultats ont montré qu’un test de frottement de 96 heures et un test d’adsorption de l’or constituaient le fondement d’un classement des échantillons de carbone du point de vue économique en vue de trouver l’échantillon générant le meilleur rendement des usines. ¦ MOTS CLÉS charbon actif, dureté de la batée des billes de carbone, évaluation du carbone, perte de fines de charbon, renouvellement du carbone, résistance au carbone INTRODUCTION The use of activated carbon for gold extraction is among the most common processes in modern gold-milling plants. Although gold losses are inevitable in the milling process, operators often focus on reducing gold loss to tailings. One focus area that is important in gold recovery is optimizing the use of activated carbon and examining potential changes to realize improved economics for carbon-in-pulp (CIP), carbon-in-column (CIC), and carbon-in-leach (CIL) processes. Granular activated carbon (Figure 1) is widely used for gold extraction from slurries containing gold-cyanide complexes. This activated carbon—produced from charred coconut shells—is well suited because of its adsorption kinetics, gold-loading capacity, attrition resistance, and ability to be reactivated. The extraction process using activated carbon technology involves adsorbing gold from an aqueous leachate; the gold is dissolved using a cyanide salt and consequently a dicyanoaurate(I) ion (Au(CN)2–) is formed, as noted in equation 1."

Jan 1, 2019

By W J. Cowie

Several years of operating experience of over 100 gold recovery operations on the West Coast has provided a database from which the basic operating costs of these types of operations can be characterised. Using figures generated from the averaging of plant operating costs throughout the region and financial modelling using Lotus spreadsheets has been developed to analyse both existing and proposed developments. This type of modelling has several uses: 1. Identification of the impact on profitability of changes in management practices, finance costs, operating costs and revenue streams. 2. Project evaluation and planning. 3. Profitability projections for development financing. 4. Troubleshooting with existing operations. 5. Valuation of existing operations and properties.

Jan 1, 1987

By Roshan B. Bhappu

Stimulated by current $0.80 to $1.20 per pound price tag of copper, considerable interest and activity have been generated in the copper mining camps throughout the world, and especially in the Southwestern United States and Northern Mexico copper belt. Under these economically favorable conditions, many of the marginal oxide-copper deposits, as well as newly discovered prospects, are under scrutiny for possible exploitation. For both the known deposits and new prospects, the big question facing the mine operator is the selection of the best method for processing these economically attractive oxide-copper deposits. Several variations of the hydrometallurgical processes are currently available for treating oxide-copper ores which can be mined by the open-pit method. Basically, these processes involve preparing the ore for application of an acid solution, applying the solution to the ore, and recovery of the metal from the pregnant solution. Dump leaching, heap leaching, vat leaching, agitation leaching and, in more recent times, in situ leaching or solution mining in combination with well established cementation process or the newly developed solvent extraction-electrowinning system have all been employed or have been investigated for the recovery of copper from oxide ores. Of these processes, dump, heap and vat leaching have been successfully practiced for treating oxide-copper ores. Agitation leaching is a relatively newcomer and has been adopted from the experiences of uranium and gold processing. Finally, the inplace leaching technique is the latest process to be suggested for possible treatment of oxide-copper ores.

Jan 1, 1974

By Jaeheon Lee

"Biooxidation of gold ores or concentrates could be a very attractive alternative to pressure oxidation (POX) or roasting to liberate the gold grains from various sulfides. Crushed heap bioleaching was successful in US and many operations using tank bioleaching of gold concentrate are currently running around the world. Many parameters need to be considered during the project of sulfidic refractory gold ore process. Capital and operation costs are among the most important ones. Run-of-mine heap biooxidation could be very inexpensive and the smaller the crush size (particle size), the more expensive the capital and operating costs for biooxidation application are expected. The capital cost of biooxidation could be a fraction of the cost for building POX plant or roaster and the operating cost could be 1/3 of POX or roasting depending on the method utilized. A new biooxidation process, Sand Farming, is introduced as an alternative to POX and tank biooxidation process. A relatively coarser particle size (P80 = 650 µm) of the process benefits the low cost of grinding against the conventional grinding size (P80 = 75 µm) for other options. The cost of Sand Farming is less than 40% of that of pressure oxidation with comparable gold recovery from the downstream process. This paper will review the laboratory scale testwork for various biooxidation process of sulfidic refractory gold ores and concentrates and provide the economic evaluation showing the biooxidation could be the most economic method without much sacrificing the overall gold recovery. INTRODUCTIONThe decreased availability and lower grade of raw materials has motivated industries to consider recovering values utilizing low cost process options. The process may treat high grade concentrates or submill grade ores that cannot be processed economically by conventional milling-flotation or leaching. Sulfidic refractory gold ores/concentrates have been economically processed by roasting, pressure oxidation, and biooxidation in stirred tank reactor. The process selection is based on a series of studies including multi-year long ore characterization and metallurgical investigations."

Jan 1, 2016

By Felicia F. Peng

An economic analysis for evaluating coal preparation plants in the Appalachian Region is presented. A complete coal preparation plant which includes multi-streams and/or multi-stages coal cleaning circuits, complete closed water circuits, environmentally acceptable refuse disposal and reclamation systems is used to determine the capital and operating costs. The plant is capable of producing metallurgical grade clean coal or deep cleaned steam grade coal for future power generating plants use. Utilizing a profit maximization as a decision criterion, an optimal yield, and optimal coal clean¬ing circuits, closed water circuits, and disposal and reclamation systems for a given coal characteristic may be selected among the process alternatives by using a process simulation-economic model of the coal preparation plant. A deterministic analysis is used to calculate the discounted-cash-flow interest rate of return (DCFIROR) and project the selling prices, and determine the Return on Investment (ROI) for the cases of 32.65% and 52.74% plant utilization with producing two cleaned products. Sensitivity analyses are performed to quantify the effect of total capital investment, operating cost, run-of-mine cost and yield on an economic criterion-ROI and selling prices. A probabilistic evaluation using the Monte Carlo simulation technique is further made to quantify the risk involved in obtaining the desired profit levels. The results of the economic analysis for a given coal preparation plant configuration and characteristics of raw coal indicates that the selling prices of producing two cleaned products are greatly affected by the change in percent of plant utilization (production schedule), yield, and run-of-mine cost, and total capital cost. The sensitivity analysis also shows that the total capital investments has a three times greater effect on required selling prices than operating costs. The risk analysis shown that the overall economics look very attractive with current coal sale prices and 52.74% plant utilization.

Jan 1, 1979

By F. F. Peng

An economic analysis for evaluating coal preparation in Appalachian Region is presented. A complete coal preparation plant is used to deter- mine the capital and operating costs. Using profit maximization as a decision criterion, an optimal process flowsheet for given coal characteristics can be selected among the process alternatives by a process-economic model. A deterministic analysis is used to calculate the discounted cash flow interest rate of return and project the selling prices of clean coal products. A probabilistic evaluation is further made to quantify the risk involved in obtaining the desired profit levels.

Jan 1, 1979

By Clement K. Chase, F. Milton Lewis, Roshan B. Bhappu

In situ extraction for copper, gold and uranium, generally involves several common alternative processes and techniques. These include dump leaching, heap leaching, leaching of fractured ore in-place or bore hole mining and unit operations such as cementation, solvent extraction, ion-exchange or carbon-in-pulp. Since the metallurgical effectiveness and economics of such processes and unit operations are well established, it would be possible to select the optimum alternative for extracting either copper, gold or uranium from their ores using in situ extraction technology. In this paper, efforts have been made to provide metallurgical evaluation as well as capital and operating costs for the various processes and unit operations. Attempts have also been made to utilize the above costs in preparing feasibility studies for in situ extraction of these metals.

Jan 1, 1976

By Andrew J. Regis

The methods of evaluation of industrial minerals occurring on Federal lands have different meanings if the evaluations are done by a company rather than a government agency. For example, when the Bureau of Land Management (BLM) conducts an examination of mining claims, this is commonly referred to as a "validity examination," whereas it is an "economic evaluation" when performed by a company. Not only is there a difference in nomenclature in these evaluations, but there is a general lack of expertise in the Federal government on industrial minerals in general. A metallic mentality still prevails in the U.S. Forest Service (USFS) and the BLM. Because of this, many validity exams on industrial-mineral deposits commonly just skim the surface concerning economics and marketability. The BLM and USFS place a high amount of emphasis on past administrative case law pertaining to the validity of industrial minerals under the 1872 Mining Law and, rightly so, on marketability, which also is heavily addressed in case law. When the BLM considers marketability, only the marketability of a particular industrial mineral for only the primary use for which it was located is considered and any value-added markets cannot be included. The BLM defines marketability based only on the value of the mineral material in its in situ or raw state, rather than value-added through processing. Another difference in the evaluation of industrial minerals by government and industry is the question of by-products. When a company evaluates a mineral material it looks at all the markets. The BLM looks only at that market for that locatable mineral for which the claim was located. In other words, sales from non-locatable by-products cannot be used to support marketability or the prudent-man rule (i.e., oversize silica sand from a glass-sand claim being sold for construction sand, road base, fill, etc.). The question of reserves also can present conflicts. An industrial-mineral company will often try to identify all the reserves available for a possible future development. They must do this for financial backing and support from upper management. The BLM, however, will limit their validity examination only to those reserves that meet the prudent-man rule and marketability tests. The BLM will validate reserves sufficient to last 25-30 years, based on available market. The development of industrial minerals on Federal lands is a difficult process, and, if the 1872 Mining Law is changed, it could become not only more challenging but also more costly. The industry must become more tolerant of the mineral specialists in the BLM and the USFS. On the other hand, the government mineral examiners must become more aware of the importance of industrial minerals in everyday living, and the economic evaluation of these materials.

Jan 1, 1999

By S. A. Diatchkov

Introduction There is a misconception that mineral-project economic evaluations in the former Soviet Union are either nonexistent or very limited. This is not the case. In fact, there are at least two basic methods that can be utilized to evaluate the vast mineral resources of the Commonwealth of Independent States (CIS). Evaluation procedures are based either on a comparison to known projects, which may rely on limited available data, or on potential-profit calculations, which generally uses more extensive databases. Significant philosophical differences between these systems and those utilized in the Western world include the following: •Under the centralized-government system, the economic evaluation of a mineral project was based on artificially determined mineral prices and costs. Every ten to 12 years, prices for concentrates and metals were established by the Council of Ministers and remained unchanged until the next reconsideration of prices . •The time value of invested money was not considered to be important under these "stable" prices, and inflation was assumed to be nonexistent in the planned economy. •An overestimation of the value of social and economic factors such as keeping the local population employed and providing the country with strategic minerals biased the economic evaluations of projects. Sequence of exploration Geological exploration in the CIS countries typically includes two major phases: prospecting and exploration. Prospecting consists of the following: •Regional geological studies. •General prospecting. •Prospecting. •Prospect evaluation. Regional geological studies are conducted within large territories and utilize satellite images, deep seismic zoning and other state-of-the-art methods. Geological and geophysical maps on a scale of from 1:200000 to 1:1000000 are developed to help identify regional anomalies and mineral prospective areas. The areas of primary interest are then subjected to general prospecting, beginning with geological mapping of the area at 1:50000 (1:25000) scale. The prospecting phase determines mineral potential based on further geological mapping (mostly 1:10000 scale), surface geophysics and geochemistry. Finally, the most attractive targets are subjected to further detailed evaluation (prospect evaluation) to help identify "possible" projects by means of trenching and wide-spaced drilling. The results of the prospect evaluation are analyzed and conclusions regarding the economical potential of the project are drawn. If the initial-prospecting phase results are positive and the prospect is recognized as economical, it then moves into preliminary exploration, which is followed by detailed exploration. Preliminary exploration determines the feasibility of the project on the basis of limited data. For example, in some underground projects, the initial exploration drilling and tunneling is done at two or three times wider spacing than would be required by the assumed mining method. Detailed exploration focuses on preparing the project for mining development, such as completing drilling and tunneling, particularly in the portion of the ore body to be first mined. During the project's mining phase, further exploration is usually conducted along the flanks of the mineralized structures and deeper sections of the ore body. Finally, during exploitation, it is sometimes necessary to delineate the ore body within the mining-block limits. A comparison between the United States (US) sequence of exploration activities and the CIS system is given in the Table 1. There is no "additional" and "exploitation" exploration shown in the US system, but it is common knowledge that all mineral projects are subjected to "additional" and "exploitation" exploration while being mined. An economic evaluation should be performed after the [ ]

Jan 1, 1996

By S. A. Diatchkov

There is a misconception that mineral-project economic evaluations in the former Soviet Union are either nonexistent or very limited. This is not the case. In fact, there are at least two basic methods that can be utilized to evaluate the vast mineral resources of the Commonwealth of Independent States (CIS). Evaluation procedures are based either on a comparison to known projects, which may rely on limited available data, or on potential-profit calculations, which generally uses more extensive databases. Significant philosophical differences between these systems and those utilized in the Western world include the following: •Under the centralized-government system, the economic evaluation of a mineral project was based on artificially determined mineral prices and costs. Every ten to 12 years, prices for concentrates and metals were established by the Council of Ministers and remained unchanged until the next reconsideration of prices .

Jan 1, 1995

By Raja P. Upadhyay

An evaluation of the economics of mining the deep, thick oil shale deposits of the central portion of the Piceance Creek basin, Colorado, U.S.A. is presented in this paper. For the analysis, a modified large scale underground mining system developed by Cameron Engineers, Inc. and the Gas Combustion retorting process developed by the U.S. Bureau of Mines were used to determine capital investment and annual operating costs. A modified risk analysis computer program was then used to calculate DCFROI’s for various grades of oil shale and selling prices of partially refined shale oil. Sensitivity analyses were performed to quantify the affect of bonus bid payments, operating costs, capital investment, and all costs on DCFROI. In addition, a probabilistic evaluation was made to determine the risk involved in obtaining desired rates of return. Results of the economic evaluation indicate that for current selling prices of crude oil a high risk is involved in obtaining a DCFROI of 15%, unless only higher grades of oil shale are mined. However, mining only the higher grade oil shales, 125 l/mt (30 gpt) and above, would effectively reduce the potentially mineable resources by 90%. Risk can also be reduced through higher selling prices of shale oil. Sensitivity analyses indicate that the capital investment has a three times greater effect on required selling price than total operating costs.

Jan 1, 1977

By H. Kose

In this research, a model quarry with an annual production capacity of 1 000 000 tonnes has been studied for both pit and hillside quarry cases with constant overall slope angle and variable bench slope angle, considering road grades of 8 per cent and 10 per cent. First, technical requirements have been determined and then the effect of production parameters, such as hole diameter, type of quarrying (pit or hillside) and road grade, on the cost has been investigated to determine bench height. Based on the results, it has been concluded that hole diameter has to be kept large in both pit and hillside quarrying to reduce drilling unit costs. In addition, in order to take advantage of gravity and reduce transportation cost, it has been suggested that bench height and road grade have to be kept high and low respectively in the case of hillside quarrying (downhill transportation) while, in the case of pit quarrying (uphill transportation), bench height and road grade have to be kept low and high respectively, in order to transport the blasted material to a lower height and distance, to save energy, thus decreasing the transport cost. Keywords: Quarry, pit, hillside, road grade, bench height

Jan 1, 2005