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By P. N. Nikiforuk, M. C. Zoerb

An analog computer model has been developed of a large, walking dragline. This model permits changes in the configuration of the dragline, or changes in its digging cycle, to be readily investigated on a computer. As a result, it is possible to determine ways of improving the dragline performance without having to carry out many expensive experiments on the actual machine. This model can also be used as a simulator for dragline operator training. INTRODUCTION The movement of large volumes of material is always a costly operation and the increasing trend towards the use of large capacity equipment does not necessarily produce the economy desired. This problem is of particular concern to the mining industry in its open-pit operations where large draglines are used to remove the overburden. Since this operation often forms a very large part of the total cost of open-pit mining it is particularly important that it be kept as economical as possible. This requires that the dragline be operated at its maximum possible productivity. In order to optimize the operation of a dragline it is desirable that a suitable model of the dragline be available for study. Once such a model is available the effects of changes in the configuration of the dragline, or changes in its digging cycle, could be readily investigated on a computer and methods of improving its performance could be determined without having to carry out expensive experiments on the actual machine. Such models would be of use not only to dragline users, but also to the manufacturers of draglines for design purposes. Presumably studies of this type could eventually lead to computer-con trolled stripping operations. As far as can be determined very little work1'2 has been done on the derivation of dragline models. Such models must be derived before work of the nature indicated in the previous paragraph can be carried out. As a small contribution to this field this paper describes work that has been carried out by the senior author during the past few years on the derivation of one such model. This model describes the drag, hoist and swing operations of a 35 cu yd, commercially available, walking dragline. This model was derived for use with an analog computer and can be used either for optimization studies, or for the training of dragline operators. DESCRIPTION OF DRAGLINE General: The particular dragline for which an analog computer model was developed is owned by the Great West Coal Company of Estevan, Saskatchewan. It is a walking dragline and its function is to remove 40

Jan 1, 1967

By P. T. Allsman

INTRODUCTION The honor of being the recipient of the Mining Society's Daniel C. Jackling Award for 1966 imposes on me the responsibility to search for the subject that I would be best qualified to discuss. It seems that my experience in the mineral industry — nearly 15 years in private and 30 years in public employment — should uniquely qualify me to comment upon the relationships between the mining industry, mineral engineering as a profession, and government, and the changing economic, technologic, political and social changes that dictate their relationships. Such conditions, the increasing knowledge of the world mineral resource base, the greater demands of an expanding population with a rising standard of living, shall be evaluated with respect to our profession — mineral engineering. In all of these forty or so years, I have been in close touch with many phases of the mineral and energy resource industries, especially those of the United States. Particularly during the past 10 years, I have had a ringside seat at the "goings on" in Washington. During all of this period I have observed and analyzed many of the problems of the industry and its relations with the government. During the past few years, I have had increased opportunity for doing research and have found a need to learn something about the mathematical techniques that are undergoing such a revival since electronic computers were developed. One of these techniques is multivariate analysis, which is a system for correlating a large number of complex variables. By applying this technique to the seemingly chaotic present-day situation, there emerges a course of steady improvement in the minerals resource industries that wars, depressions, and political strife have failed to obstruct for long. In short, I advocate a need for new concepts in mineral engineering to cope with the changes, pos- sibly adding many more specialized areas on one end of the spectrum, and broad engineer-generalist approaches at the other. The meeting place shall be where the intricate mineral resource problems at the frontier of knowledge merge into the socio-techno-logical problems of the world. HISTORICAL INVOLVEMENT OF GOVERNMENT IN MINERAL RESOURCE PROBLEMS Involvement of government in mineral resource problems undoubtedly is as old as government itself. But passage of the Mining Act of 1866, superseded by the Act of 1872, was the first major entry of our Federal Government into the problems of mining. Passage of the law was necessary to resolve many conflicting claims and disputes in mining. The General Mining Law of 1872 and the Mineral Leasing Laws of 1920 apply to millions of acres of public lands and to certain privately owned land on which the mineral rights have been reserved to the Federal Government. The extensive involvement of government in the mineral industry business today often comes as a shock to the mineral engineer who has begun to climb the ladder to the top in his company. He is often poorly prepared to cope with the situation and becomes frustrated and even hostile. Better knowledge of the role of government perhaps would ease his situation. In our political system, private industry is responsible for producing minerals. To make certain that the production is adequate for a peace-time economy, and to guarantee the Nation's security in an emergency, the Federal Government finds it expedient to develop policy and engage in regulatory, educational, and research activities. A few examples will illustrate the varied role of government in relation to mineral problems. In varying degrees many agencies of the Executive Branch of Government have responsibilities that influence the functioning of the mineral and energy industries. In addition, of course, Congress, the Judiciary, and State and local governments exercise great influence. The Department of the Interior is primarily responsible for activities to promote the development and conservation of mineral and fuel resources, and the

Jan 1, 1967

By E. P. Pfleider

Important economic planning by industries, companies, financial firms and governments is predicated on estimates of future growth potential. Prior to the passage of the Taconite Amendment by the people of the State in November 1964, various admittedly conservative forecasts were made of the future of Minnesota's iron ore industry. Since that date, 3 new taconite plants are under construction, 2 are being expanded, one has just gone "on stream," and a seventh is in the design stage. These plants have a total capacity of about 35 million tons of pellets annually. The pessimism of 1964 today is being replaced by unbounded optimism. In the light of such recent developments, it becomes essential to update forecasts related to production, employment and capital investments. New projections show 50 to 58 million tons of pellet production from Minnesota by 1975. This tonnage, together with some 6 to 8 million of natural ores, should provide an annual full-time employment of 15,000 by the mining companies, plus 700 in related railroad and power producing activities and 1000 in plant construction. Total capital investment in new plants should reach $1.5 billion by 1975 and $2 billion by 1990. These current estimates indicate that the conservative goals as set in 1964 for the year 1990 should actually be achieved by 1975 or 1980. BACKGROUND Various forecasts1,2,3 have been made of the future consumption and production of iron ores within the United States. The most recent of these is by Harrison,1 delivered at the American Mining Congress meeting in Las Vegas in October. His estimates reflect the latest iron ore developments on a world wide front as well as the accelerating trend toward pellets. Minnesota's Natural Resources council prepared a detailed report in 1964 outlining the various factors that affect the future of Minnesota's iron ore industry. It presented estimates predicated on the

Jan 1, 1967

By James Boyd

Scientists and engineers must concern themselves not only with technical problems, but with the socio-economic difficulties of our scciety. The author states that raw materials are basic to the economic process and that mineral raw materials occur naturally in nearly limitless quantities. He feels that the economic pocess will provide sufficient raw materials for man's needs, and discusses in some detail the world economic environment. As our society grows in complexity, it becomes more urgently incumbent upon scientists and engineers to bring their experiences to bear on the solution, not only of technical problems, but also on socio-economic difficulties. It is to this field that I have directed a large part of my energies. RAW MATERIALS BASIC TO THE ECONOMIC PROCESS There are certain premises, frequently overlooked, which bear emphasis. As economics concerns the production, distribution, and consumption of goods, so our whole society is based on raw materials. Without the basic extractive industries of agriculture and mining, there would be no economic problems with which to deal. This principle has been expressed as "All productivity is based on three factors: 1) natural resources, whose form, place, and condition are changed by the expenditure of 2) human energy (both muscular and mental), with the aid of 3) tools.77* It seems strange that such an obvious statement needs to be made. It is forgotten by all of us, however, at one time or another when we get involved in the complicated theories of economics dealing with the financial and fiscal policies of the various governments, in the financing of enterprises, in marketing, and in labor relations. Unless decisions in all of these fields are made with this, and the rest of the "Ten Pillars of Economic Wisdom," consciously in mind, the resultant policies are doomed to eventual failure, whether these are policies of individuals, companies, or governments. The economic process is basic to society. But economics and the social aspects of humanity are inevitably intertwined. If human needs are not provided for within the basic economic structure, conflicts arise to disrupt the most carefully laid social plans. Similarly, it is the failure of society to cope with basic economic prerequisites that leads to discord within the body politic and thus to eventual economic disaster. We who are engaged in the various aspects of the mineral industry, therefore, have a large part to play in society's future development. MINERAL RAW MATERIALS OCCUR NATURALLY IN NEARLY LIMITLESS QUANTITIES Throughout my career in and out of government, I have formed my decisions on two principles: 1) Fundamentally, all mineral raw materials exist within the earth's crust in quantities greatly exceeding man's needs; 2) Any problems of supply of these materials are primarily economic in nature. With respect to my first assumption, analyses by geochemists enable them to estimate the quantities in which each of the known elements exist in the earth's crust. One of the most cautious and famous suggests that the average copper content of the lithosphere to a depth of ten miles is about 55 ppm. If this is valid, then the lithosphere contains about 1.4 quadrillion (1.4 x 10 ") tons of copper metal — an unimaginable quantity. This is 8,500,000-fold that which has been consumed by man in his existence. To illustrate further, consider that the deepest copper mine in history went to about 9000 ft below the surface; the present copper mines of the world now average less than 1500 ft in depth. We can assume that in most continental land areas of the world it is technically feasible to mine to a depth of at least one mile. The land areas of the world to an average depth of one mile, then, contain 343 billion tons (343 x 10') of copper metal, or 2000 times that which has been extracted to date. I don't believe man will ever expend his energies to extract copper from rocks which contain only a few parts per million, but he knows that each element

Jan 1, 1968

By David B. Brooks

Identified potential resources of lead and zinc are lower, relative to reserves, than the same ratio for other metals, Either there is little material below present grades or, if it exists, there are no data on it. The author examines both these factors in detail, and also introduces a third possibility. In their 1961 monograph, The Future Supply of the Major Metals, Bruce Netschert and Hans Landsberg noted that identified potential resources (that is, known but submarginal resources) of lead and zinc were much lower relative to reserves (that is, known and supermarginal resources) than was the same ratio for other metals.' Put another way, it seemed that for such metals as iron, manganese, copper, and aluminum, slightly more favorable economic conditions or modest advances in technology would greatly increase reserves by permitting the exploitation of vast quantities of leaner or deeper or otherwise less valuable mineral deposits. But for lead and zinc, Netschert and Landsberg concluded that either: "(1) there is relatively little material below present cutoff grades; [or] (2) such material exists, but for some reason there are no data.'12 This situation, which they called "the lead-zinc anomaly'' has been subsequently discussed by other authors. The purpose of this paper is to carry the discussion further by examining the evidence in favor of (1) and (2) and by advancing a third alternative. There are at least two reasons for devoting time to the lead-zinc anomaly. First, while it is unlikely that we shall have to turn to alternative lead or zinc resources in the near or middle-term future, the longer run resource picture for the two metals is not so certain.3 Both within the United States and for the world as a whole, new discoveries will have to come at a fair pace to keep up with growing rates of consumption. Thus, it is important to see whether there exist lower grade or nonconventional potential sources of two such useful metals that we could turn to at some time in the future. The second reason for studying the lead-zinc anomaly is also related to resource adequacy, but is of more general significance. Depending upon whether the anomaly is technologic, geochemical, spatial, or temporal in origin, we shall be able to draw some conclusions about the resource picture for other metals. Can we expect the apparent pattern of lead-zinc resources to be repeated? If so, will technologic advances in either exploration methods or mineral processing be able to alter the pattern? Or is the pattern unalterably set by geochemical distribution? Most important, are metals characterized by what seems to be an anomaly, different in any way from metals for which low-grade or nonconventional sources already have come to be exploited, as the porphyry deposits have for copper. In sum, investigation of the lead-zinc anomaly represents a case study combining both physical and economic aspects that may open up a neglected area in evaluating mineral resource adequacy. WHAT IS THE LEALLZINC ANOMALY? There are two dimensions to evaluations of the potential of any mineral resource? The first involves the degree of certainty that we ascribe to the estimate: how much do we know about the size of the resource as a result of geological mapping, exploration, and mine development? This dimension is expressed by the terms measured, indicated, and inferred reserves (and, if you wish, 'undiscovered reserves'), all of which terms carry with them the implication of exploitability under current cost-price conditions. The other dimension to evaluations of a mineral resource involves the economic limits of the estimate: how will the size of the resource vary with different (usually more favorable) cost-price conditions? (This economic dimension should be understood broadly to include all factors bearing on the cost-price relationship. In this sense it subsumes technology because any resource is exploitable at some cost; the role of technology is to bring cost down.) The latter dimension is expressed in the terms potential or sub-marginal 'ore,' and is logically quite independent of the former. For example, we have relatively good measurements of the tonnage of manganese in low-grade deposits in this country, though they are too lean to be considered reserves; on the other hand, we are much less certain of our measurements of new lead and zinc deposits in Missouri, though there is no question but that there is a sizable reserve. Thus, it may be uncommon but is not a contradiction to talk of measured submarginal ore or inferred potential ore.

Jan 1, 1968

By AIME AIME

THE petroleum economics session," held on Wednesday morning, Feb. 20, 1929, presided over by Campbell Osborn, chairman, proved to be of un- usual interest and resulted in serious and constructive discussion of the papers presented. The first paper on the program, "Gasoline Economics and Refinery Operation," was by H. J. Struth, petroleum economist of the Gulf Publishing Co., Houston, Tex. While this paper was intended to cover the re- finery situation, it also presented the author's reasons for believing that the oil producer should give cognizance to gasoline demand as a most reliable barometer by which to parallel the production of crude petroleum. The discussion which followed brought out some interesting points in connection with the immediate outlook for the industry as a whole during the present year. Some advanced the opinion that, regardless of the out- come of proration efforts, the refiner is in a position to conduct his operations on a reasonably profitable basis, provided that he exercises control over them. This would mean running less crude and resorting to wider utilization of cracking to produce the gasoline demand. Thus, if the refiner uses diligent care in scheduling his still runs, the producer will be obliged to carry over a large stock of crude this year, unless he is able to keep production below the limits prescribed by the demand for gasoline.

Jan 1, 1929

By N. D. Jagger, I. M. Arbuthnot

Introduction Over the last five years, a large number of small- to medium-sized carbon-in-pulp treatment plants have been built in Australia, most designed to treat between 250,000 t/a and 1.5 Mt/a of ore. Because of the limited capital resources and tight cash-flow positions of these relatively small mining companies, the primary requirement was often to get a plant built and operating in a short period of time and at minimal capital cost. Therefore, since the inclusion of both pre-leach and tailings thickeners represents an obvious and significant capital cost, most of these plants were built without thickeners or even detailed, cost-benefit analyses on their inclusion. In some cases, the increasing use of High Rate Thickeners (HRTs) in the mineral processing industries has, however, resulted in a reassessment, because of their considerably lower cost. This reassessment was triggered primarily by the need to conserve water in arid mining areas where borefields are costly to install and water is limited. With the startup and operation of these installations, the resulting significant savings in cyanide consumption has been recognized, in many situations, as a primary justification for the installation of HRTs. Solution balances Degradation of cyanide occurs in the tailings water discharge to slime dams. The degree of degradation (cyanide loss) in the water recovered depends on a number of factors, but it is usually assumed to be about 90%. The most important mechanisms of CN loss are through HCN losses and oxidation by oxygen in the air, which also assists in the hydrolysis of CN. These mechanisms are supported by the large dam surface area and the long retention time of the tailings water in the dam. By thickening the CIP tailings at the plant and recovering as much tailings water as immediately possible, these losses are avoided. The retention time in an HRT is less than three hours, and the surface area is relatively small. Therefore, CN losses are negligible, which is not necessarily the case in conventionally-sized thickeners. Fig. I shows a block diagram of a 100-t/h gold plant without a thickener. In this example, 50% of the tailings water pumped to the tailings dam is recovered, and the CN concentration of the returned water is 10% of the tailings CN concentration of 150 ppm. Fig. 2 represents a plant with an HRT on tailings, thickening to 55% w/w solids. In this case, the thickened tailings are pumped to the dam, and 25% of the contained water is recovered. The recovered water and the mill make-up water are not sent directly to the mill; instead, they are added to the thickener feed and mixed with it prior to thickening. By doing this, the tailings are effectively washed, and the additional cyanide is recovered. Solution balances over these two circuits show cyanide recoveries of 5% and 65%, respectively. Thus, the thickener use increases cyanide recovery by 60%. Fig. 3 shows a two-stage HRT circuit in a countercurrent decantation (CCD) configuration. In this example, an additional 13% of cyanide is recovered through the use of the second-stage unit. This configuration can be justified when residual cyanide levels are high. Capital and operating costs - Case study 1 Illustrative cost figures are based on a CIP tailings thickener installed, in early 1988, as part of Dominion Mining's treatment plant at Paddy's Flat near Meekatharra. (All costs within this paper, unless stated otherwise, are in Australian dollars.) [Assumptions: Feed rate 150 t/h Ore moisture content 5% Leach density 40% solids Underflow density 55% solids Residual cyanide in tailings 150 g/m3 Flocculant dosage 15 g/t Consumable costs: Water $ 0.40/m3 Cyanide$ 2.00/kg Flocculant$ 4.50/kg Power$ 0.12/kWh Length of tailings pipeline2,500 m Capital costs of the major items involved in the thickener installation are given below: Thickener unit, 15-m diam $ 230,000 Water return pumps 12,000 Water recirculation pumps 28,000 Feed box 5,000 Flocculant make-up system 18,000 Flocculant storage tank and dosing pumps 11,000 Piping and valves 85,000 Electrics and instruments 47,000 Civil works 29,000 Installation 69,000 Total cost$ 534,000] Savings in capital costs that can be attributed to the

Jan 1, 1993

By I. M. Arbuthnot

Over the last five years, a large number of small to medium sized carbon-in-pulp gold treatment plants have been built in Australia, most designed to treat between 250,000 -1,500,000 tpa of ore. In many cases, the primary requirement was to get a plant built and operating in a short period of time and at minimal capital cost, relating to the limited capital resources and tight cash flow positions of these relatively small mining companies. Since the inclusion of both pre-leach and tailings thickeners resulted in an obvious and significant capital cost, most plants were built without thickeners, without doing a detailed cost-benefit analysis on their inclusion, However, the increasing use of High Rate Thickener?s (HRT s) in the mineral processing industries resulted in a reassessment, in some cases, because of their considerably lower cost. This reassessment was triggered primarily by the need to conserve water in arid mining areas, where borefields were costly to install and water was limited. It has become apparent, though, since startup and operation of these installations, that the savings in cyanide consumption is also a very significant factor and can be used as a primary justification for the installation of a HRT in many cases.

Jan 1, 1991

By V. A. Evans

The preparation of a paper reporting fluorspar economics in the United States at one point in time could have been somewhat complicated be- cause of the number of producers, both large and small, that derived production from different locations throughout the Western U. S. and the Southern Illinois and Western Kentucky fluorspar districts . Companies such as Allied Chemical and William- son Mining operated in the Jamestown district of Colorado. In Walden and Salida, Colorado, the Colorado Fluorspar Company operated mines and mills.

Jan 1, 1986

By George Shou

"The paper point out about economics of thickened tailings transportation. In this sense, the optimal concentration is determined based on the balance between the incremental costs of thickening and transportation and theincremental environmental benefits. A detailed feasibility study is essential for financial success of a tailings project. Hydraulics modeling is the key to estimate the transportation cost curve. "

Jul 31, 2003

By K. G. (Ken) Thomas

"This paper gives an insight into the various processes available to treat gold ores. A brief overview is given of the various types of refractory gold ores. Particular emphasis is given /0 comparing the costs of oxide vs refractory gold ore processes, inclusive of grinding through to dore bar.HistoryThro ugh time gold has been recovered from the earth's crust by various mean s. Five major historical steps can be identified for metallurgical processing as shown in Table I .Gravity concent ration started with, for example, river bed panning and developed to more sophisticated processes such as the Johnson concentrator, belt concentrator and jigs. The South African gold fields were a major developer of gravity concentration processes during the first half of the twentieth century.As coarse free gold became depleted, stamp milling, in conjunction with amalgamat ion , was developed. Basically, rock was crushed under large mechanical hammers an d the gold collected in mercury . The mercury was then evaporated in a retort to leave sponge gold for further fire refining.As deposits became deeper and gold finer, the gold became more difficult to recover ; fine grinding was required to liberate the gold. In the 18905, MacArthur and the Forrest Brothers of Glasgow, Scotland, introduced the cyanide pro cess for dissolution of gold and its subsequent precipitaiton by means of zinc. This process, in vogue until the early 1970s, was commonly referred to as the Merrill-Crowe process for recovering fine gold .Activated charcoal was used as a means of recovering gold from solution in the 1880s, especially in chlorination plants in Australia( l). Two factors probably retarded the development of carbon instead of zinc-based processes during those year s. First , there was no satisfactory procedure for the elution of carbon to allow its recycling and, second, the development of the Merrill-Crewe process for gold recovery by zinc cementation probably discouraged any further work on the use of carbon"

Jan 1, 1991

By S. B. Bhagwat

Before the Clean Air Act Amendments of 1990, coal policies-especially coal research policies-were geared to find a solution to the sulfur emission problem. However, technologies to reduce sulfur emissions cannot be tailored for a single coal. A technology that will clean Illinois coal to compliance levels will do the same, or nearly the same, for most other types of coal. This paper will discuss an integrated approach to the analysis of the future of coals from different regions in the United States and its implications for coal-related policies by government and industry.

Jan 1, 1994

By S. B. Bhagwat

The United States has abundant coal resources that could last at least another century. and probably longer at present consumption rates. Geographically, the coal resources are distributed over the entire nation including Alaska, although there are no coal deposits in the highly populated areas on the two coasts. This allows free access to the coal, but makes transportation more expensive. Not all coals can be utilized equally because they differ vastly in quality. The sulfur content of coals, considered as the most detrimental acid rain-causing element, varies from as low as 0.3 percent in some areas of the western U.S. to 5 percent or more in parts of the Midwest. The chlorine content, which causes corrosion of plant hardware, also varies regionally. The 1990 amendments of the Clean Air Act of 1963 (CAA) require that emissions of sulfur be restricted and rolled back in two stages by the year 2000. There have been a number of reports expressing concern about the future of the industry in the states where high sulfur coal is produced. The remedies devised by the federal government and many coal-producing states in the past to "se-cure" the future of the regional coal industries have focused on the physical task of removing sulfur rather than the economic challenge of doing so at a cost that will enable high-sulfur coals to survive and compete. The past remedies, generally, were not specific enough to account for the characteristics of regional coal deposits and did not look at the coal market as an integrated national and international entity. The State of Illinois has, in recent years, taken a more comprehensive approach to the solution of the problem.

Jan 1, 1992

By V. S. Sastri, Elboujdaini. M.

"Economics of wear in mining industry and methods by which wear cost may be reduced will be discussed.IntroductionCanada loses more than $5 billion annually due to friction and wear (Table 1). It is estimated that about $1.3 billion, or about 25% of the losses, could be saved through better application of existing technology (Table 2). It should be noted that the costs given in Table 1 and 2 refer to 1986. The losses due to friction and wear and the savings would be much higher in 1996. Tribology combines the many branches and specialties in science and technology concerned with understanding and combatting friction and wear. Specifically, tribology is concerned with the design and manufacture of sliding and rolling bearings, piston rings, gears, cutting tools and other devices in which surfaces interact, in sliding or other relative motion. Tribology is concerned with the correct use of materials for interacting solid surfaces, with the interaction of the surfaces with the lubricants, with the chemistry, physics and use of lubricants. It is concerned with the reduction of friction and wear and the avoidance of associated failures in machinery. Similar tribological components such as bearings are used in different technologies and similar tribological problems such as abrasive wear occur in different industries. Thus, tribology is in itself a generic science and technology, concerned with the generation and dissemination of knowledge on friction, wear and lubrication, and the application of the knowledge, to a wide range of industrial products and equipment, from ploughs to space equipment, from prosthesis to engines, from washing machines to railways, from computers to power stations, from paper mills to mines. Avoidable losses due to friction and"

Jan 1, 1997

By Reamy Joyce

CONDITIONS in underground mining are so variable that in approach-ing the problem of the economies effected by the use of pressure-treated mine ties and mine timbers, it is necessary to secure specific data for each mine. Facts must first be dug out to show the service life of untreated timber and the reason for its failure. Generally speaking, decay is the usual cause of failure, but in some mines mechanical destruction is an important factor. Occasionally the two causes combine to produce fail-ures, and it is difficult to determine positively which factor is responsible. In making comparisons, it is always necessary to start with the cost in place and for this reason there must be accurate information covering the labor cost of installation and the labor cost of renewals. When treated timber is used, it is necessary to know the specifications for the treating process, whether the timber was painted, dipped, treated open tank, or impregnated under pressure according to standard specifica-tions. It is also necessary to know the preservative used and the amount of the preservative that was retained by the timber after treatment. It is also well to know whether the timber was thoroughly air-seasoned before treatment or was green at the time it was treated. The kind of timber available, both untreated and treated, must be known and all of the factors listed above must be taken into consideration in the study of any problem.

Jan 1, 1939

By Robert F. Winkle

A detailed breakdown of mining costs, available to management on monthly and year-to-date bases, is mandatory for a controlled and efficient mining operation. A simple lump sum reporting of costs may indicate a profit or loss differential, but it does not allow an effective search for areas of possible cost reduction. Moreover, functional reporting is necessary on a timely basis so as to note trends of increasing costs In specific areas, which in turn allow possible preventive action by management. Definitive cost information helps to eliminate the tendency to overlook areas where cost Improvements can be made. A good cost control system points out salient operational weaknesses by: ( 1 ) allowing comparison of functional costs with similar costs of other mines and (2) pinpointing sudden increases over unit empirical costs within the organization. In general, the cost accounting structure is relatively uniform within large open pit mines, but surprisingly some systems will overlook the need for detailed breakout in comparatively high cost areas. In some other systems, unrelated costs will be lumped together, preventing careful analysis of cost accrual.

Jan 1, 1979

By Franklin J. Stermole

INTRODUCTION Economic evaluation of an open pit mine is similar to the economic analysis of any major investment project in any industry. It requires (1) taking into account all of the costs and revenues that are estimated to be incurred over the economic life of the project; (2) crediting the project with all the tax savings and tax credits that will be realized over the project life from tax deductions and credits related to various project costs; (3) charging the project with all taxes to be paid on taxable income over the project life; and (4) properly accounting for the time value of money for all project costs, revenues, taxes, tax savings, and tax credits when making the overall project economic evaluation. These considerations must be taken into account for any valid method of economic analysis such as discounted cash flow rate of return (DCFROR) or net present value (NPV) analyses. All economic analyses fall into one of two categories. ( 1 ) comparison of income-producing alternatives, or (2) comparison of service-producing alternatives. The analysis of alternatives in either of these categories can be made by using correctly any of five basic economic evaluation approaches which are. ( 1 ) present value, annual value, (3) future value, (4) rate of return (ROR) , and (5 ) break-even analysis. Of these evaluation techniques, DCFROR and NPV analyses are used most widely for evaluating income-producing alternatives while present worth cost and equivalent annual cost analyses are used most often for the evaluation of service-producing alternatives. In this chapter income- producing alternative analysis is emphasized, so DCF- ROR and NPV are utilized for evaluating the case studies presented.

Jan 1, 1979

By Roderick K. Davey

Introduction in any business, it is essential that we select those alternatives which are not only technically feasible, but will be the most profitable to the business m terms of corporate objectives Some of the studies and activities requiring support of financial analysis to select the alternatives which most closely satisfy the management objectives and technical considerations are as follows 1 ) Cutoff grade determination. 2) Ore reserve estimation. 3) Production forecasts (long- and short-term) for an operating mine, development of a new mine, or expansion of an existing mine. 4) Evaluation of haulage alternatives. 5) Evaluation of equipment.

Jan 1, 1979

By Alan C. Noble

INTRODUCTION Forecasting of metal and mineral prices is a complex and hazardous undertaking. In order to accurately forecast prices, the complexities of both marketing and production must be modeled for each commodity. Even with the most detailed model, the economy may change unexpectedly, invalidating the forecast. Because of these factors, this chapter will not attempt to present specific methods for price estimation. It will, however, review the fundamentals of price forecasting as applied to planning and design of the final pit shell. Recognizing that no price estimate can be exact, sensitivity analysis will be reviewed as an approach to coping with these unknown variations.

Jan 1, 1979

By William C. Peters

"A large proportion of the earth's surface is blanketed by young sedimentary formations and by recent lava flows. How many Guanajuatos lie concealed beneath the rhyolitic capping of the Sierra Madre of Mexico? How many Kirkland Lakes are under the drift cover of the Canadian Shield? How many Wilunas are still hidden by the alluvium of the desert of Western Australia? How many ore deposits lurk underneath the basalt-covered plateaus of the Columbia River region? If erosion at Goldfield, Nevada, had stopped 100 feet higher, probably no ore would have been exposed. How many Goldfields are still awaiting discovery?" --Hugh Exton McKinstry, 1948

Jan 1, 1969