Modern Engineering and Construction Methods in the Execution of Mineral Projects

Investment in mining and related process facilities will be more costly and complex in the 1980s than ever before. Interest rates and inflation are soaring; regulations are expanding; and in order to achieve economies of scale, plant facilities and mines are getting larger. As the pace quickens, the time/cost circuit closes around the resource owner or developer. Larger modern projects cost more money and take more time to build. The longer it takes to bring a project onstream, the more it costs in interest, escalation, and lost production. One solution to the time/cost squeeze is to take advantage of systems developed by major contractors serving the mining industry. These contractors have been serving clients in planning and executing large and small projects for many years. They have developed systems which, if applied at an early point in the project's life, can be a significant benefit in development of mineral resources. The systems involve performance of feasibility studies, economic evaluations, and the project installation itself. First the Feasibility Study Feasibility studies can minimize risk through systematic evaluations while progressing toward the ultimate objective-an operating plant. Normally, studies are initiated with a minimum amount of specific information and a maximum number of as¬sumptions. Through the course of the study program, assumptions are continuously confirmed, refined, or rejected by facts until a sound basis for decision is available. High on the list of cost effective tools for evaluation is the use of a geostatistically derived sampling program that provides a highly accurate ore reserve estimate for economic evaluation. When a predetermined sample of data from the drilling program and bench-scale or pilot-plant tests are received, a detailed feasibility study may be started. This study can involve design of the mine,