Search Documents

In constructing a financial model of a project significant effort is expended on capital and operating cost estimation, commodity price forecasts, and choice of discount rates while uncertainty in the primary input, the reserve, is often completely overlooked. The aim of this paper is to highlight the impact of uncertainty in the resource/reserve estimation process on the assessment of the financial performance of a project. Four qualitative processes have an impact on resource/reserve uncertainty. These stages are: 1.Ore definition 2.Geological interpretation 3.Resource estimation 4.Ore reserve estimation and mine planning. Each stage contains a number of tasks that may be considered as key performance activities (KPAs). Optimizing the manner in which these KPAs are completed can remove a great deal of uncertainty and error from the resource/reserve process. Examination of these KPAs within a company can also provide an insight to the quality of the information underlying the project. This will allow the company to identify any shortcomings in the data and to assess the resulting risks (Gilfillan, 1998). A hypothetical financial model based on a gold operation has been used to estimate the potential effect of resource/reserve uncertainty on revenue. Monte Carlo simulation has been employed to simulate a number of hypothetical scenarios: 1.a base case scenario which assumes no major errors or biases, but contains realistic margins for uncertainty that would exist in any project where work is being completed to the limit of best endeavours 2.a poor sampling scenario which assumes poor sampling practice and lack of understanding of sample preparation 3.a poor resource estimation scenario which assumes poor modelling and inappropriate choice of interpolation technique, and 4. a ?typical? scenario which represents a project where the majority of KPAs are not performed as best as they could be. The results show that realistic uncertainty ranges can generate changes in the estimate of potential revenue of plus or minus 30%.Therefore, it is important to allow for errors in these processes in any financial analysis or feasibility study. It is recommended that, when building a financial model, are view of relevant resource/reserve KPAs be carried out and appropriate ranges for uncertainty be applied to provide a range of potential outcomes. These outcomes can then be factored into the detailed cash flow analysis in order to ensure that technical uncertainty is built into financial decisions.

Jan 1, 1999

Jan 1, 1957

By C. T. Baroch

This report summarizes cost data accumulated during 15 months of sustained operation of the Bureau of Mines Boulder City (Nev.) titanium plant, which had a capacity of about 1,350 pounds of titanium sponge per day. The plant was constructed during the 1952 fiscal year with funds supplied by the Ordnance Corps, Department of the Army. Its original purpose was to engage in process development work as a continuing phase of the Bureau of Mines policy to seek improvements in producing titanium metal. In early 1953 the Defense Materials Procurement Agency contracted with the Bureau of Mines for producing approximately one-half million pounds of usable ductile titanium sponge. Production began in May 1953, ended in September 1954, and yielded 492,503 pounds of acceptable metal. Operating costs covering this period of operation, with suggested depreciation and administrative costs, are given, as well as outlines of building and equipment capital costs. In addition, miscellaneous economic considerations are discussed, including labor and operating-time schedules.

Jan 1, 1956

By T. D. Yensen

Discussion of the paper of T. D. YENSEN, presented at the New York meeting, February, 1916, and printed in Bulletin No. 110, February, 1916, pp. 483 to 512. JOHN A. MATHEWS, Syracuse, N. Y.-Concerning the critical composition of the steel containing 2.50 per cent. of silicon, I may say that 12 or 13 years ago we made some of these alloys. They. were not as pure as the alloys made by Mr. Yensen, nor were they melted in vacuo, but one of them contained exactly 2.50 per cent. silicon, and about 0.25 per cent. carbon. It gave us no trouble whatever in hammering to a billet or rolling into bars, nor even when rolling into ¼ -in. wire rods. The steel in question was practically free from everything except carbon or silicon and contained no manganese sulphur or phosphorus worth mention. The alloy containing 2.50 per cent. of silicon worked perfectly well, as well as one containing 0.5 per cent. silicon, and it seems to me that further work should be done by Mr. Yensen on the physical properties of alloys at this seemingly critical change point. W. E. -RUDER, Schenectady, N. Y.-We -have made silicon steels of practically every composition and have never obtained any material under 5 or 6 per cent. of silicon which was brittle. This may be due, of course, to the presence of carbon, in some of the 'commercial materials, and I presume that Mr. Yensen would argue that the: presence of this carbon might prevent inter-granular brittleness. However, all of our silicon steels, up to 5 per cent. of silicon, by treatment in hydrogen at temperatures near the melting point, can be made to show inter-granular brittleness. Furthermore, the material made brittle in this way could be restored by treating at the same temperature in hydrogen containing a hydrocarbon vapor. I discussed this matter some years ago in a paper on inter-granular cement. It therefore appears likely to me that Mr.

Jan 5, 1916

By E. W. Johnson

"The title of my paper is ""I 'Wonder Where The Yellow Went"". As you can readily guess, it is not related to an old-fashioned ""Pepsodent"" sales pitch! Rather, it concerns a situation which arises all too frequently in some gold milling operations, namely when actual ounces of gold production do not come up to estimated or projected ounces. The boss man scratches his head and wonders where the missing gold has gone and how it has disappeared. The problem, if one exists, is amplified if one forgets that an estimate is just that - an estimate - and not a hard fact - even though the numbers are produced by computers. And yet, from the point of view of engineering; financial and production planning and security; it is most desirable to tie together all data relating to production estimates, losses and actual production.In the course of this paper reference will be made to the term ""variance psychology"", to a few of the physical properties of gold and to the nature of its occurrence in Canadian ores, in relation to the topic under consideration. Activities which have a bearing on production estimates will be reviewed. These include: weighing, sampling, assaying, estimating residual losses and, in cyanide plants, gold precipitate production. Mention will be made of apparent, unaccounted for and unknown losses. In conclusion, I shall draw from personal experience and relate three examples of ""Where the Yellow Went''."

Jan 1, 1986

By Víctor Cárdenas

El presente trabajo describe el manejo de las herramientas de calidad que aportan a la reducción de riesgos en la compañía minera La Poderosa. Para determinar los defectos, causas y consecuencias, es necesario conocer el procedimiento de control de los mismos a través del diagrama de Ishikawa o el ciclo de PHVA. Esta metodología permite encontrar la solución a los problemas dentro del aseguramiento de la calidad, seguridad y productividad de una empresa, así como establece la fuente de la causa de los accidentes por lesiones, como de los daños a la propiedad privada. En consecuencia, su aplicación se ha estandarizado en las áreas de seguridad y medio ambiente de dicha minera desde hace dos años, obteniendo resultados muy satisfactorios como el Premio Nacional de Seguridad en minería subterránea otorgado por el ISEM.

Sep 13, 2001

By James R. Boyle

The mining methods and practices used at the Young zinc mine, American Zinc Co. of Tennessee, have resulted in a low-cost, high-yield operation. Zinc ore (sphalerite) occurs in limestone-dolomite beds of the Kingsport Formation and is mined by modified room and pillar method. Utilizing trackless mining equipment which incorporates a high degree of flexibility, this operation has had a steady increase in productivity.

Jan 1, 1965

C. H. MATHEWSON, Chairman SAM TOUR, Past-chairman W. A. SCHEUCH, Vice-chairman T. S. FULLER, Vice-chairman W. M. CORSE, Secretary-Treasurer 810 Eighteenth St., N. W. Washington, D. C. Executive Committee J. L. CHRISTIE ARTHUR PHILLIPS E. H. Dix, JR. GUY C. RIDDELL W. M. PRIRCE J. WALTER SCOTT' A. J. PHILLIPS' H. M. WILLIAMS EL M. WISE

Jan 1, 1932

By J. P. Zannaras

If we assume that testing of the model started at time C, that time t2 was the instant at which the elastic limit of the material was passed at the points of the maximum stress, and that at time t3 the failure of the model was completed as shown in the typical photograph (Fig. 1), then actually the photograph shows the final results of what took place between time t2 and t3. By the principle of similitude all conclusions drawn from the behavior of the model were applicable and valid for actual mine roofs up to the time t, after time t, motions and friction came into play during the destruction of the model. The events between t2 and t3 and the photograph itself are not representative of the events expected in an actual mine roof unless corrections imposed by the principle of similitude are made.

Dec 1, 1956

The US economy grew at a rate of 4% in 1994 and the gross domestic product rose to $6.74 trillion. With 261 million people - 605,000 in mining, including petroleum -the United States has l 10 million dwelling units and 200 million licensed motor vehicles. New private housing units authorized in 1994 rose 14% to 1.4 million units. New car production rose 11 % to 6.6 million units, while truck and bus production rose 30% to 5.2 million units. The inflation rate was less than 3% and the prime rate of interest averaged 7.15%. The producer price index (1982 = 100) for fuels and related products and power was down 4% to 78, while metals and metal products rose 5% to 125. Chemicals and allied products rose 3% to 132, and non-metallic mineral products rose 3% to 124. The merchandise trade deficit rose 25% to $166 billion. Disorder in the former Soviet Union led to substantial dumping of mineral materials. With vast mineral resources, the former Soviet Union land area totaled 22.4 million km2 (8.6 million sq miles). In comparison, the North Ameri¬can Free Trade Agreement (NAFTA) area (United States, Canada and Mexico) totals 21.4 million km2 (8.3 million sq miles).

Jan 1, 1995

By Clarence R. Zink

A problem has always existed in deep and fast drilling situations such as coal overburden drilling, or when drilling with a tight annulus, such as 9 7/8" bits and 8 5/8" pipe. This problem is the difficulty experienced by blasthole bit and blasthole drill rig manufacturers to attain large jumps in bit and drill rig productivity through bit and rig design, when drilling in these specific situations. In other drilling situations, these large jumps in productivity have been easily attained.

Jan 1, 1998

By Raymond B. Ladoo

Toward the end of 1920 , the average grades of ground feldspar offered to the pottery industry were so poor and so generally unsatisfactory that many of the largest consumers decided to take active steps for their own protection . A few of the potters made arrangements to grind their own feldspar , while others asked the Bureau of Mines to make a detailed study of the problem and to suggest methods of improvement . Accordingly such a study was undertaken, the partial results of which are outlined in this preliminary report . The outstanding features of the present feldspar industry which are of interest in this connection are stated below. (1 ) Many grinding companies do not own or control all or even a major part of their sources of crude material , but buy in job lots from many sources . (2 ) There is great need of more adequate engineering and chemical control over mines and mills . ( 3) ~ Out of date , inefficient methods and equipment for mining and grinding are in common use . (4) Little or no cooperation exists between feldspar producers , but on the contrary many feldspar companies are exceedingly secretive . This tends towards (a) preservation of obsolete methods ; ( b ) want of knowledge of the essential features of production , market requirements , and the relation between total milling and consuming capacities of the country; ( c ) inefficient and often mistaken trade practices ; ( d) unprofitable and even ruinous competition in dull periods . (5) The small size of many feldspar deposits precludes maintenance of an efficient organization at each individual mine . ( 6 ) Many of the best deposits of feldspar situated close to railroads are becoming depleted , which results in gradual lowering of grades , and increase in cost for better grades . (7) There is a lack of exact mowledge of the ceramic properties and behaviour of feldspar by some consumers , which results in ( a) purchase of feldspar on the basis of price alone , thus encouraging low production costs at the expense of quality , and ( b) inefficient and expensive cross- hauling of both crude and ground feldspar .

Jan 1, 1922

By H. H. Reamer, B. H. Sage

The formation volume and the relative volume of the liquid Phase of mixtures of Condensate and gas from five different parts of a field in the Louisiana area have been established experimentally. These studies included gas-condensate ratios as high as 25.000 cu ft/bbl at pressures up to 5,000 psi. The gravities of the tank condensates were between 53.9° and 63.9° API. The compositions of the condensate and gas samples inves-ligated are presented in tabular form. The formation volume. the relative volume of the liquid phase. and the specific volume of the mixtures are available. A rough correlation of the formation volume as a function of pressure. temperature, and gas-condensate ratio has been presented. This correlation i-considered applicable only to the range of conditions covered in this investigation for systems of similar nature and com-position. INTRODUCTION Often a knowledge of the influence of temperature. Pres sure, and relative quantities of condensate and gas upon the volumetric behavior of fluid*. from a given field has been employed in estimating the Conditions existing in the reservoir. The early work of Beecher and Parkhurst' and the more rrcent Studies of the Dominguez' and San Joaqnin Valley Field;: are examples of experimental studies of this character. Correlation of the volumetric behavior of naturally occurring hydrocarbon mixtures has Proved To be feasible' . at low gas-conden-sate ratios-; for fluids*. from a single geographic area. Progres 5 is being made in the Prediction of the volumetric behavior of distillate systems at high gas-condensate ratios and pressure.. However. the estimation of the retrograde". ' dew-point pressure still remains uncertain and probably can best be established by experiment. For this reason it appears of interest to make available experimental information about the volumetric behavior of mixtures of condensate and gas from five different part.; of a single field. This material shows a rough similarity to data for mixtures of condensate and gas from San Joaqnin ' Valley Fields. In the present paper. 110 attempt has been made to coordinate the available information on tbe volumetric behavior of fluids from condensate fields. It appears hopeful that progress can be realized by the utilization of recently developed equa-tions of state.!' However. the primary problem in any such correlation is the proper identification of the components and constituents of naturally occuring systems. Additional experimental information may be required to permit the determination of the values of the constants of the equation of state for References given at end of paper. Manuscriptt received in the office of the Petroleum Branch June 11. 1951. *For present purposes low gas- condensate ratios will he considered as those below 3,000 cu ft/bbl, and the region of high gas-condensate ratio will be limited to compositions containing more than 5,000 cu ft of pas per bbl of condensate. Mixtures Containing between 3,000 and 5.000 CII ft OF gas per bbl will be considered of intermediate gas-condensate ratio.

Jan 1, 1952

By R. D. Brown

The first step in achieving a rationalization of Canada's crazy patch-work quilt of mining taxes and policies was achieved with the release last November of a major federal-provincial report on the taxation of the Canadian mining industry. The Report, prepared by a group of federal and provincial civil servants, sets out a concise and informative discussion of the major taxation and incentive issues facing the mining industry, and puts forward major recommendations for more rational and moderate taxation policies. It will be considered by federal and provincial Finance and Resource Ministers for possible action by the respective governments. The Report was prepared in response to a directive from the federal and provincial First Ministers in February 1978 to review the federal and provincial taxation of the resource areas. Although the Report is more successful in identifying problems rather than concrete solutions, and reflects some continuing differences of opinion between the governments involved, it does represent an important first step in a comprehensive review of our resource tax policies. This article summarizes the Report, which is some sixty pages in length. Although a detailed discussion of it is beyond the scope of this article, the report itself is recommended reading for those concerned about the current state of the Canadian mining industry.

Jan 1, 1979

By M. Maleki-Moghaddam

At the concentration plant of the Gol-E-Gohar Iron Ore Company (Iran) three 9 m × 2.05 m AG mills (fixed speed) are used in parallel in a dry operation. The performance of AG mills has been lower than the target value indicated by an increase in the product size (P80) from 450 µm (target) to 515 µm and low power draw (50% of nominal). By simulation it was found that increasing the liner lifter face angle from 7 to 30o while keeping the original lifter height (i.e., 22.5 cm) could provide an appropriate charge trajectory. When the proposed liners installed in one of the AG mills, the throughput increased by 27%; when 5% (v/v) balls were added the throughput increased by 40%. The product size also decreased from 515 to 501 µm.

Jan 1, 2012

By C. K. Leith

THE questions as to what grades of ore it pays to conserve for the future, and the valuation of low-grade reserves, are becoming immediate and definite as applied to individual ore deposits, and seem to call for some sort of quantitative answer. Both opinion and practice involving these questions differ widely. The number of variables in this problem is so large that final solution will perhaps never be agreed upon, yet there seem to me to be certain controlling factors which can be placed in quantitative relation and serve to reduce the number of variables which it is necessary to consider in a given instance. I assume that it will not pay either for the individual or for the State to conserve any ore when the present cost of conservation (by stock piling or otherwise), when compounded at 6 per cent. interest for the number of years which would elapse before this ore is used, will exceed the profit which the ore will yield when it is used. It may be urged that any loss to the individual may be made up in gain to the State. This might be true if there was any definite limit to the amount of iron ore, but when we remember that iron makes up .4 per cent. of all the rocks of the earth and the amount of rock carrying iron in excess of 20 per cent. is for practical purposes, unlimited, it is apparent that posterity is assured of its iron ore. The changes will be mainly in methods and cost of extracting the ore. Therefore, any expenditure of money or effort now, which when compounded will exceed the worth of the effort or money needed in the future to utilize the iron, is a net loss both to the individual and to the community.

Jan 2, 1914

By R G. Barker

The NZ Minerals Industry Association has continued to advance the interests of the minerals sector through leading the establishment of a Minerals Industry Advisory Committee, and the preparation of a technology strategy with funding assistance from the Foundation for Research, Science and Technology. The current moves mirror those of more than 30 years ago when a government initiative led to a resurgence of exploration through amending the mining legislation, redirecting Government research priorities and tax changes. The economic and political and commercial environment in 2001 is very different from that of the 1960s and success of these new initiatives depends on the continuing support and involvement of all sectors of the minerals industry, and building an improved relationship with the Government and the public.

Jan 1, 2001

By Karl C. Dean

The current emphasis on environmental problems has focused attention on the massive nationwide accumulations of mine, mill, and smelter wastes that represent potential air and water pollution hazards. The pollution hazards can be reduced or eliminated by utilization or stabilization of these wastes. The U.S. Bureau of Mines, since the inception of the Solid Waste Disposal Act of 1965, has been conducting research to determine the practicality of various utilization and stabilization procedures. Investigations include partial extractions of desirable waste components and full utilization of the wastes as simulated soils or in ceramic or other structural products. Chemical, vegetative, and combined chemical-vegetative methods of stabilization have been actively studied. This report updates information previously developed by the Salt Lake City Metallurgy Research Center and presents the current status of antipollution solid waste work 1/,2/.

Jan 1, 1970

By Lays Augusta Leal Carvalho, Luiz Filipe Cardoso de Oliveira, Alex Milton Albergaria Campos, Paulo Santos Assis

O agronegócio movimenta a economia de muitos países, sendo que sua produção representa um terço do PIB mundial. Desde a colheita até o processamento de seus produtos, a atividade agrícola gera uma grande quantidade de resíduos que, muitas vezes, não tem uma alocação correta, o que acaba sendo um problema. Esses resíduos tem um grande potencial para substituir parcialmente combustíveis fósseis, como o carvão mineral. O carvão queimado nos altos-fornos é responsável por cerca de 60% das emissões de CO2 na indústria siderúrgica. No entanto, a atividade agrícola pode contribuir para a captura de CO2 na atmosfera à medida que este é absorvido durante a fotossíntese. Portanto, o uso de resíduos do agronegócio pode ser viável para ser usado na injeção de alto-forno, substituindo parte do carvão mineral. Alguns estudos mostraram que o cultivo de cana-de-açúcar e a produção de carvão vegetal no Brasil, os resíduos do cultivo de milho nos Estados Unidos, bem como o uso de resíduos de Moringa oleifera na Índia, podem ser usados gerando economia e diminuindo a emissão de CO2. Neste trabalho, são apresentadas as comparações química, física e térmica de alguns resíduos do agronegócio com potencial para serem utilizados como material pulverizado injetado no alto-forno, junto ao carvão mineral. Além disso, a viabilidade econômica e a possibilidade de reduzir as emissões de CO2 nesse processo são comentadas.

Oct 1, 2019

By M. J. Sapko

The pressure and flame development of the methane-air-nitrogen system was investigated in the Bureau's l2-foot-diameter sphere to define buoyancy effects and to develop relationships for predicting venting requirements. Pressure rise (?P) is defined as a function of time (t) and nitrogen dilution and is shown to deviate noticeably from the cubic law (?P = kt3), depending upon the period of combustion and the mixture composition. Corresponding flame speed (Sf) and burning velocity (Su) data are given which show that Sf is time dependent and that Na dilution has a greater effect than air dilution in inhibiting the flame propagation. The Su data agree with "accepted" values and are unique in that they are based on much larger flames than those used in other investigations. Downward propagation limits are shown to depend mainly upon buoyant forces, which can affect the burning of even stoichiometric CH4-air systems. Theoretical expressions, based on the mixture burning velocity and expansion ratio, are given for predicting the venting requirements for ignitions of hydrocarbon-air-nitrogen mixtures in spherical or cubical enclosures.

Jan 1, 1976