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This paper describes preliminary research on the application of Markov Decision Processes (MDP) to Real Option Valuation (ROV) and the optimisation of mine scheduling. The MDP framework is a novel approach to option valuation and scheduling in mining operations. A learning agent is introduced into the valuation process of an open pit, where prices and block ore grades have probabilistic values. The prices are modelled using a mean reverting diffusion process and the block grades using sequential Gaussian simulation. The agent is asked to learn which production parameters should be used in order to maximise the overall value of the project. The introduction of the agent permits a real option approach to mine valuation, such that the value associated with the robustness of a design to uncertainty can be measured. A simulated example is used in which there are ten blocks to be extracted under conditions of grade and price uncertainty. Using policy iteration, an optimal policy is generated and the value of production options is found. The potential financial gains from applying MDPs to mine valuation and optimisation are substantial and warrant further investigation.

Jan 1, 2007

By H. J. McQueen

Aluminum was hot worked at 400 - 500°C and strain rates (e ) of 0.004 -0.1s-1, under reversing strains (c) of 0.5 to 0.2 or 0.5 to 0 and also advancing from 0.5 to 1 or 0.5 to 5. Under similar test conditions for different parts of the strain paths, the average measured flow stresses are found to agree with each other. In the forward and backward strain path tests, the almost identical steady state plateaus affirm the occurrence of dynamic recovery (DRV). On reversal of strain direction at constant e , there was generally negligible Bauschinger effect. In specimens annealed at 400°C, static recrystallisation (SRX) was followed microstructurally. mainly by disappearance of elongated grains with serrated boundaries because the new grains were only little a finer than the old due to low strain energy. The only influence of reversing strain path observed was the effect of change of grain boundary area as grains elongated or returned towards equiaxed. In optical microscopy, elongated grains with serrations and deformation bands confirmed DRV in forward path specimens. In reverse path specimens, equiaxed grains were gradually restored with retention of serrations and bands. In low magnification polarized optical microscopy, grain alignment increased with strain for forward path specimens; whereas it decreased in reverse path ones, supporting DRV. Orientation imaging microscopy (OIM/SEM) revealed that elongated grains are broken up as deformation bands rotate during the forward path and that grains return to equiaxed appearance on backward straining. Comparative studies using optical microscopy in polarized light (POM), OIM/SEM and transmission electron microscopy (TEM) revealed that while subgrains remain equiaxed and constant in size and character during the forward and backward paths, the fraction of low angle facets decreased while that of high angle grain facets increased with increasing strain; these are coupled with a fairly low fraction of medium angle boundaries. The results contribute to the understanding that dynamic recovery in aluminum maintains sub-boundaries with low misorientation but as grains elongate and more subgrain become adjacent to grain boundaries the fraction of high angle boundaries rises (with backward straining it was vice versa).

Jan 1, 2007

By B Yeganeh, A Sam, A Kohsari

The base of separation at Gol-e-Gohar iron ore plant (Sirjan in the south of Iran) is magnetic separation after milling. Magnetic separation in the plant is divided into two parts: dry magnetic separation and wet magnetic separation. Sixty-five per cent of the plant production belongs to the dry magnetic separator section. Therefore, investigation of this part of the plant is necessary. Prediction of plant production is one of the most important subjects in mineral processing plants. That means, before feed enters the plant, specification of production has been calculated with laboratory methods. The purpose of this paper is the prediction concentrate quality has achieved from the dry magnetic separator. The content of iron in the final dry concentrate will be predicted, with laboratory, pilot and modelling methods, before feed enters the plant. Different variables are used in this approach, which consist of: speed of the first dry magnetic separator (rougher), speed of the third dry magnetic separator (cleaner), iron content in plant feed, size of 80 per cent passing of feed, size of 20 per cent passing of feed and iron content in pilot dry magnetic separation concentrate that performs in a standard manner. The artificial neural network is used for modelling and one of its branches is the radial basis network (RBN). Iron content in magnetic separating concentrate in plant will be introduced as the target and will be calculated with the RBN method. In the RBN method, a set of data enters to neural network and they will be trained and simulated. Finally, the target will be predicted. Ultimately, the original target (actual iron content) and the predicted target (predicted iron content) compare and error of them will be calculated. The obtained result is acceptable and satisfactory.

Jan 1, 2007

By A. Deneys

This paper reviews industrial gases used in primary copper production. Copper smelting industrial gas demand has steadily increased since the first commercial oxygenconcentrate smelting in 1952 [1]. In copper production oxygen for smelting is the dominant industrial gas use followed by oxygen for converting. Nitrogen is finding increased use in copper smelters. Nitrogen is used for porous plugs for copper converting and anode refining [2-5]. Nitrogen can be used for concentrate drying [6,7] and is also used in some Ni-Cu smelters as a coolant in Peirce-Smith converting [8,9]. Industrial gas supply options of cryogenic or adsorbent based on-site plant or cryogenic liquid delivery are detailed.

Jan 1, 2007

By M. Sakamoto

Copper foil is an indispensable material for Printed Circuit Boards (PCBs). PCBs in turn are essential elements of all electronic equipment today and thus important for our living in the new age of IT. The requirements from the copper foil market have lately been increasingly strict and diversified due to the rapid technical advancements in miniaturized high-density electronic equipment and highly integrated semiconductors. Tight control of thickness, metallurgical properties, surface morphology and characteristics is needed. In this paper, both electrodeposited copper foil for PCB and rolled copper foil for the flexible printed circuit board are discussed, and the recent technical developments in these copper foil products are reviewed.

Jan 1, 2007

Mineral Resource Throughput Management is based on the extraction of the maximum potential value from an ore reserve with the emphasis to generate maximum ROI and ROR (return on reserve). A steel producing company in India implemented MRTM to significantly improve their ROI and ROR. The value chain of this company consists of their own iron ore and coal mines, ore washing plants, sinter plants, steel plants, and sales and marketing division. The target for the mines was to produce at a stable and predictable rate and at specific quality requirements. These requirements were set to improve productivity and ROI of the steel plant. The implementation constituted the alignment of the reserve potential, total production chain, human resources and management culture at the mines with the requirements of the steel plant. Many typical mining practices were challenged and changed. Production targets regarding lump vs. fines ratio, consistent product tons, quality targets such as Fe, Al content and moist, and standard deviation on the quality targets were not achieved. A reverse distribution model with release mechanisms to satisfy the demand were developed and implemented at the mines. A stable and predictable flow of mine product with quality standards well within the required standard deviation targets were achieved. The contribution from the mines to significantly improve the Net Profit, ROI and ROR of the company were reached.

Jan 1, 2007

By A. Martikainen

Field tests concerning a fog mesh method for fog removal are discussed. The first tests were performed at the Pyhäsalmi Mine, Finland. As this study gave promising results, further studies were completed at the Orivesi Mine. The results of these most recent field tests are presented and the two studies are compared. The Orivesi test set consisted of four materials. These included air filter fabric, fibrous filter fabric, a plastic greenhouse mesh, and an aluminium mosquito net. The variation of the Orivesi results was more noticeable than what was found previously. The best fog removal effect of all tests was achieved with the aluminium mosquito net, while the plastic green-house mesh performed worst. The humidity reduction by aluminium net was more profound than any of its precedents. More mesh materials will be tested in the near future.

Jan 1, 2007

By H. Henein

Atomization provides many advantages in processing such as rapid solidification and near net shaping. Two atomization techniques will be compared and contrasted in this presentation: Single fluid atomization techniques such as Impulse Atomization (IA) and gas atomization. The characteristics of both processing approaches will be presented. Results in powder structure, size and size distribution as well as microstructure will be discussed. A comparison of spray formed ingots carried out using both techniques will also be presented.

Jan 1, 2007

By D. J. Shields

The goal of public policies is to connect desired ends with practical means toward their achievement. How the desired ends are determined, and whose goals and objectives they incorporate, depends upon the culture and political system of the country in question. With few exceptions, policies change over time to reflect changed perspectives and understanding of the world around us. This is true regardless of the policy area in question. Thus, how societies view and manage their mineral resources has evolved in response to public attitudes, societal needs, economic circumstance, cultural perspectives, political orientations, technological advancements, and geological knowledge. In this paper we examine how the scope of concern has changed for mineral policy. We then review the overarching issues that have in recent years been considered essential components of mineral policies. We point out how neoclassical microeconomics has influenced recent policy design. We then use a market flow diagram to illustrate how policies can be focused at specific market issues. We next discuss mineral resources in the context of sustainable development. We identify issues that become relevant when the frame of reference is enlarged beyond ensuring supply and capturing economic rent. We show that policy based solely on neoclassical economics may not be able to effectively incorporate these issues.

Jan 1, 2007

By I. C. L. Webster, G. E. Ray

"The magnetite-rich Heff Cu-Au skarn lies in the Quesnel Terrane of south-central British Columbia, approximately 26 km northeast of Kamloops. The skarn formed close to the northern margin of the Heffley Creek pluton, and is hosted by Carnian (Late Triassic) Nicola Group limestone. The Late Triassic pluton (208.1 ± 6.1 Ma, U-Pb zircon) is a composite body of alkaline affinity that includes dioritic, gabbroic, and magnetite-rich clinopyroxene ± olivine ultramafic phases.The skarn has been discontinuously traced along strike for more than 1 km, and individual skarn layers are up to 40 m thick. The most common non-opaque minerals are garnet, clinopyroxene, and carbonate, with lesser epidote, biotite, amphibole, and chlorite. Apatite locally forms more than 3 vol.% of the rock. Compositionally the garnet is a low Mn grandite averaging Pyr3-Grs41-Adr56 mol.%.Mineralization consists of lenses, up to 10 m thick, containing massive low Ti-V magnetite (avg. 0.03 wt.% TiO2 and 0.01 wt.% V2O3). Magnetite is associated with up to 20 vol.% pyrrhotite, lesser pyrite, and trace chalcopyrite and gold. There is a moderate enrichment in rare earth elements with assays up to 570 ppm La and 490 ppm Ce. The Heffley Creek pluton belongs to a suite of Late Triassic-Early Jurassic alkalic and Fe-rich intrusions that are widely developed throughout the Quesnel Terrane. Some host Cu-Au porphyry mineralization, but less commonly they are associated with magnetite-apatite veins such as at the Glen Iron mine and Magnet occurrence, or with magnetite-rich Cu-Au skarns such as the Heff occurrence.Although abundant low Ti magnetite is present in the Heff skarn, it does not appear to represent iron oxide copper- gold (IOCG) type mineralization. Microprobe analyses completed during this study show that low Ti magnetite is not a unique feature of IOCG deposits, but also characterizes some other types of hydrothermal mineralization. In British Columbia these include some alkalic porphyry-related magnetite-apatite veins in the Quesnel Terrane, as well as the well-known Wrangellia-hosted Fe skarn deposits. Thus, low Ti magnetite appears to be a common signature of many magmatic hydrothermal deposits in contrast to the high Ti primary magnetite found in most igneous rocks."

Jan 1, 2007

By G. Kordosky

Leaching aids that result in an increase in leaching rates and overall copper recovery have the potential to be beneficial to copper leach/solvent extraction/electrowinning operations. It is generally accepted that effective leaching aids facilitate the penetration of leach solution into ore by lowering the surface tension of the leach solution. Surfactants are designed to do this, and a leaching aid containing the widely used surfactant class, alkyl phenol ethoxylates, has been suggested. Alkyl phenol ethoxylates were tested to determine how they may affect phase separation, entrainment and degradation in a copper solvent extraction plant. The test results suggest the use of leaching aids at a regular rate, or even for a short time period, may have a long term impact on copper solvent extraction. Several scenarios are evaluated regarding existing operations and future solvent extraction projects and cautionary suggestions related to the use of surfactants as leaching aids are given.

Jan 1, 2007

By P. van der Veen

The objective of this paper is to analyze the evolution of the strategic drivers of the mining sec-tor over the last half century, which has been guided by a varying and expanding list of motivations. While companies cannot survive for long unless they are making profits, the strategic drivers of the industry have gone far beyond profits since at least the mid-1970s when environmental concerns began to be taken seriously. For the most part, these forces have followed global trends and public opinion, but they have been shaped and magnified by the significant, often dominant role that the mining sector plays in many economies. While the mining sector used to be primarily motivated by the first pillar of sustainable development -i.e. the economics pillar-, in the 1970s the second environmental pillar became an important factor in decision making, and in the 1990s the third social pillar emerged as a major driver.1 The entrance of new strategic drivers has also had considerable impact on technological and organizational developments in the mining industry; however, technological changes, driven by cost reduction considerations, have in turn impacted the strategic drivers of the industry, resulting in the need for further technological and organizational developments.

Jan 1, 2007

"In mineral exploration and mining applications, it is sometimes necessary to reduce sampling error in order to improve representivity of individual sample assays. Historic efforts to reduce sampling error have relied on the belief that larger samples exhibit less sampling error. Justifications for this belief traditionally have coupled the binomial theorem with an ideal geological material consisting of ore and gangue particles of equal size and shape (an equant grain model) and empirical tests of geological materials, to illustrate an inverse relationship between sample size and sampling variance. To date, no proof exists of this sample size-sampling variance relationship in real geological materials exhibiting variations in grain size, shape, composition, and degree of liberation.Using first principles calculus and the formula for the mean, sample mass and sampling variance are proven to be inversely proportional in all geological materials. Distribution assumptions and physically ideal geological models are not used in this proof. Furthermore, algebraic manipulations of expressions describing the variances of equant grain models consistent with binomial, hypergeometric, and Poisson distributions reveal that these models also exhibit an inverse sample size-sampling variance relationship. Thus, the sampling behaviors of these models are numerically consistent with the sampling behaviors of real geological materials, and these models can be used to estimate sampling errors in real geological materials using simple sampling parameters."

Jan 1, 2007

By M. Kucharski

The model of the Outokumpu direct-to-copper process deals with a steady-state process the parameters of which do not depend on time. To give a prediction for the process outcome, "a modified black box" method, which ignores most of the chemical reactions in the furnace, was used. This method takes input and output parameters into consideration. The presented model describes the Outokumpu direct-to blister process in the form of the set of linear equations which give mass and enthalpy balances as well as the distribution of elements between blister copper and slag. However, only major substances where quantities in the feed charge exceed a certain level (for example 0.5 kg/ lMg of smelted concentrate) are taken into consideration. Minor elements are distributed among slag and metal phases in a different way. Some of the equations are derived from distribution coefficients. The value of distribution coefficients can be calculated from plant production data.

Jan 1, 2007

By Naj Aziz

The shear behaviour of reinforced rock joints is investigated for the bolt-grout-rock interaction and for failure mechanism. The effectiveness of the bolt application under lateral and axial loading conditions within surrounding materials is investigated in different medium strength. Double shearing testing of bolts were studied in concrete blocks of 20, 40, 50 and 100 MPa strengths, subjected to different pretension loads of 0, 5, 10, 20, 50 and 80 KN respectively. The experimental study was complemented with three-dimensional numerical analysis. Parameters examined include: shear resistance, shear displacement, induced strains and stresses during bolt bending process and its ultimate failure across the sheared joint planes. The conclusions drawn from the study were; the level of bolt resistance to shearing was influenced by the bolt profile configuration, the strength of the rock or medium influenced the level of load generated on the bolt, and the increase in bolt pretension has contributed to the increased shearing load of the bolted medium.

Jan 1, 2007

By Deon van Tonder, Bert Van Hege

Comparison of various technologies for uranium recovery from sulphuric acid leach solutions shows that Resin-in-Pulp (RIP) and/or Solvent extraction (SX) based processing routes are usually cost effective (11). A combined RIP-SX recovery-purification route and a CCD-SX recovery-purification route were investigated and optimised. The design basis used for the investigation was a production rate of 200 kg/h U3O8 over a solution concentration range of 40 to 1500 mg/L U3O8. The OPEX for the RIP-SX processing route was found to be sensitive to the variation in uranium concentration in the leach liquor. One of the main drivers for this trend is the leach acid concentration. Conversely, the CAPEX of the CCD-SX processing route was sensitive to the uranium concentration in the leach liquor. The leach acid concentration only affected the OPEX of the CCD-SX processing route modestly, as the bulk of the acid is recovered in a pre-leach circuit. Contrary to expectation, the effect of extractant loss assumptions on the overall processing route economics was found to be modest to insignificant. It should be noted that the CCD-SX processing route OPEX was more sensitive to extractant loss assumptions than the RIP-SX processing route OPEX. Economic optimum wash ratios were determined for the CCD-SX processing route and increased with leach concentration ? the increase in wash ratio was less than proportional. A 5-stage CCD configuration was found optimal over the concentration range investigated.

Jan 1, 2007

By . A. C. Atenas

Control of arsenic in the Potrerillos' Refinery electrolyte has been obtained by withdrawing a bleed stream of circulating electrolyte and ensuring the ratio of [O]/[As] in the cast anodes is maintained between 0.9 and 1.0. In order to achieve this control the anode oxygen must be adjusted, depending on the arsenic level in the cast anodes. It has been necessary to modify the time of the reduction step in the anode furnace refining process. Control of this ratio has permitted electro refining of anodes with high levels of arsenic, up to 3000 ppm, while minimizing the volume of electrolyte that must be removed for impurity control so as not to affect the copper concentration in the electrolyte. However this control strategy is not useful when the arsenic concentration in the cast anode is too high, because it is limited by the maximum oxygen concentration allowable for a good quality anodic. Costs have been reduced in anode furnace refining because it is no longer necessary to use alkaline flux injection to remove the arsenic in cast anodes.

Jan 1, 2007

By P S. Heithersay, M McGeough

The discovery of Olympic Dam in 1975 and, more recently, Prominent Hill in 2001 and Carrapateena in 2005 demonstrates the potential for world-class IOCG deposits in South Australia. Potential for further discovery of large IOCG mineral deposits in the Gawler Craton and the Curnamona Province is high because of continental-scale pervasive iron-rich alteration, crustal-scale structural preparation and unique magmatic-hydrothermal conditions. Recent exploration successes point to the effectiveness of new exploration tools and technologies to locate this style of mineralisation under cover. The gold endowment of these orebodies located in South Australia exceeds 75 Moz, with further discoveries to come. The lead time between discovery and development of the multi-million ounce Prominent Hill copper-gold mine in less than seven years demonstrates how quickly this style of deposit can be brought into production in South Australia. Clearly these long-life, multi- commodity IOCG deposits mines are an immediate exploration and future growth opportunity for the gold mining industry to replace ever depleting gold inventories.

Jan 1, 2007

In recent years, China and India have emerged as major players in the copper sector. Over the last decade, around 50% of additional global refined copper usage growth can be attributed to them. The paper provides an overview of the current and future copper supply and demand situation in both countries. Results from two market studies commissioned by the International Copper Study Group (ICSG) are complemented with recent copper statistics on North-East and South-East Asia, as well as further sectoral analysis. Developments and trends in copper mining and metal production, semis production, and major end use areas are highlighted. While providing insights into sectoral patterns and growth trends, the paper provides the basis for comparing structure and output of the copper sectors in some of the major copper-using countries in Asia. Afterwards, the current copper reservoir in use associated with infrastructure, buildings, industrial equipment, transportation systems and households is assessed using the ICSG Copper Flow Model. Finally, the identified copper flows are analyzed regarding the potential impact on the future world supply and demand situation.

Jan 1, 2007

By M. Massinaei

Recently constructed circuits have included multiple stages of columns in a variety of applications, from roughing to cleaning. The Miduk copper concentrator (in south-eastern Iran) is one of the unique mineral processing plants which use column flotation cells as rougher. As the bulk of final concentrate is produced by rougher columns, optimized metallurgical performance of these cells is crucial. This paper will present the study and optimization of, a froth washing system of columns. For this purpose, the cross-sectional area of orifices was increased and their orientation altered. Concentrate assay for copper and silica, in addition to bias rate were found to be the assessment criteria. Modification of the wash water system resulted in increasing the purity of rougher and final concentrate. Negative bias and short-circuiting of wash water into the concentrate launder were the main causes of improper froth zone washing in the former system.

Jan 1, 2007