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By R. L. Brown

This report, summarizing the Bureau of Mines research and technologic work on coal and coal products for the period July 1, 1950, to July 1, 1951, is based largely on publications issued during the year. The sixteenth in an annual series, it gives footnote references to publications giving further details of the research and technologic work described, except in a few cases where research data presented herein has not been published previously. During the year, the national fuels situation was generally one of plentiful supply.3/ Mineral-fuel resources appeared adequate for several hundred years at reasonably increasing rates of supply. Coal-production capacity was in excess of demand; petroleum supplies were adequate; and natural gas use was limited only by pipeline capacity. However, it was pointed out that a world war would drastically change this situation of relative plenty, particularly with regard to supplies of petroleum and its products. Conversion to the use of coal on a large scale would be required, and improved methods of mining and of processing and using coal in solid or fluidized form or converted to liquid fuels could materially contribute to our national safety.

Jan 1, 1952

By Luis Carrera Naranjo

El presente texto señala la topografía, geología regional, estratigrafía, fisiografía, caracteres morfológicos, mineralógicos y genéticos, y la clasificación según su proceso de formación del yacimiento de la región Morococha. La topografía de esta región es variada y rica en cuanto formaciones geológicas se refiere, dado sus orígenes y edades respectivas. Su estratigrafía comprende una columna geológica, la cual está compuesta por rocas sedimentarias, y extrusivas que van desde el periodo Cuaternario hasta el Terciario. Las formaciones encontradas en la región son las filitas excelsior, volcánicas Catalina, formación Mitu, calizas Potosí, formación Santo Toribio-Buena Ventura, formación Machay, las capars rojas de Casapalca, la diorita de Anticona y monzonita cuarcífera de Morococha. Asimismo tiene dos sistemas de fallas: longitudinal y transversal. Las especies metalíferas de mayor abundancia son: la pirita, tenantita, tetrahedrita, chalcopirita, enargíta, blenda, magnetíta y galena. Mientras que las de menor abundancia son: estefanita, especularita, phrotita, marcasita y muy raramente: aíkenita; burnonita, cubanita, jamesonita, luzonita y molibdenita. Finalmente, entre las características estructurales de depósito tenemos: las vetas y los mantos, considerando entre los mantos algunos subtipos o variedades estructurales. También existe una tercera clase de estructura de depósitos minerales, que son lo que están constítuídos por varios depósitos agrupados en forma localizada y se conocen como el "0re -Clusters" o "Archipiélago".

Jul 20, 1960

By GEORGE S. POPE

This bulletin is the third of a series a showing the results of ment purchases of coal according to specifications as to its quality and giving typical forms of proposals for supplying coal and general information relating to government coal purchases . Numerous calls for authentic information concerning the purchase of coal according to its heat value attest a growing interest in the subject. Many of the commodities of life have long been purchased according to specifications requiring chemical or physical tests , or both, to determine whether the material delivered meets the requirements , the price to be paid depending on the results of the tests . Until recent years coal consumers purchased coal merely on the statement of the dealer as to its quality , relying on his integrity and on the reputation of the mine or district from which the coal was obtained. It is surprising that the important question whether value was being received for the money expended was not sooner seriously considered . The purchase of coal by specification is an important step toward the conservation of our national mineral resources , for it results in an increased use of the lower grades of coal. The poorer coals find a market by competing with the better grades , not as to the price per ton but as to the cost of an equal number of heat units. This paper gives in detail the results of government purchases of coal for the fiscal year 1908–9 and the list of contracts with abstracts of specifications for the fiscal year 1909–10 , and summarizes the information on this subject obtained by the Survey. It is hoped that this information will promote a better understanding of the specification method of purchasing coal and furnish data valuable alike to coal dealers and coal consumers , so that equitable contracts can be more readily made.

Jan 1, 1910

By Edward Keller

The work covered by this report was undertaken at the request of Dr. J. A. Holmes, late Director of the Bureau of Mines, to whom the writer had been recommended by C. W. Goodale and E. P. Mathewson, of Butte and Anaconda, Mont. The director's offer was accepted for the honor it conferred and for the useful results that might be promulgated by the work in the technical field covered. The investigation was facilitated by permission to visit various works and sometimes by contributions of important definite information on a given subject. It is therefore with pleasure that acknowledgment of courtesies is made to the following corporations and gentlemen: Anaconda Copper Mining Co., Raritan Copper Works, Baltimore Copper Smelting & Rolling Co., United States Refining Co., American Smelting & Refining Co., B. B. Thayer, A. C. Clark, A. L. Walker, William H. Peirce, E. A. Cappelen Smith, H. H. Alexander, F. C. Newton, S. Rolle, R. "V. Deacon, N. W. Pierce, O. C. Martin, C. N. Sappington, James K Thomson, W. G. Derby, and the assistants of the writer, K. 1V.McComas and W. L. Raup. In this report considerable space has been devoted to general and theoretical principles on the ground that under modern conditions the best results in any field of activity can be attained only with the aid of an adequate knowledge of the best theories underlying the practice. The diffusion of such knowledge in the field of sampling metallic metallurgical materials appears to have been quite insufficient, and it is felt that when the principles involved are once thoroughly comprehended their universal application will be appreciated, so that it will make no difference whether pig iron or gold bullion is offered for test. It may further be noted that a discussion of the theories underlying practical methods is placed under the caption "Practical Sampling," with the idea that no one can be a practical sampler unless he is capable of analyzing his methods. No attempt has been made to advocate anyone method, but it is hoped that the analyses of all of the methods in use will show where each may be correctly and safely applied. The fact that it is possible to demonstrate the theoretical correctness of several methods indicates the invalidity of the claim that any single one of them is the standard.

Jan 1, 1916

By C. C. Jobes

Operating large face equipment, such as continuous mining machines, is one of the most basic and most dangerous elements of an underground coal mining operation. The operator usually performs cutting and tramming tasks in a restricted workspace with reduced visibility. During the execution of these tasks, operators often cannot see all of the locations needed to safely operate the continuous mining machine (CM ), which has sometimes resulted in accidents. In an effort to prevent these accidents, researchers at the National Institute for Occupational Safety and Health (NIOSH), Pittsburgh Research Laboratory, examined the continuous mining machine operator?s current information cues, or visual attention locations, so that risk of injury relative to the task, equipment and workplace environment can be evaluated in the future. The eventual goal is to develop interventions to enhance the information cues, and thereby increase the safety and health of machine operators. This paper details the operator interview process, determination of visual attention locations (VALs) and simulation of various mining scenarios.

Jan 1, 2011

By Waugh D. M

investigations have been undertaken into the flow characteristics of mineral slurries from a number of Australian metallurgical plants including Mount Isa Mines Ltd., North Broken Hill Ltd., and Broken Hill South Ltd. Experimental equipment installed for this work included facilities for continuous recording of flow rate and pressure drop and detection of sedimentation.Although the method has subsequently been described in published literature, it is believed that the investigations included the original application of a method for correlation of the flow rate and pressure drop data. This method depends on solving by graphical methods the values of the constants k, and c in the relationship EQUATION 1 where D is pipe diameter; ?P, pressure drop; L, length; and V, mean linear velocity. Discussion of this correlation also reveals why sedimentation velocity does not necessarily vary greatly with pipe diameter.INTRODUCTIONIn order to design pumps and pipeline installations for a Newtonian fluid, measurements of the fluid's density and viscosity in any of a number of instruments are sufficient. Substitution of these values in well known equations to calculate Reynolds numbers and subsequent correlation to determine friction factors are all that is required for engineering specification.As a result of work during the last decade, particularly that of Metzner and Reed (1955) and Dodge and Metzner (1959), it is now possible to design for homogeneous non-Newtonian fluids using relatively simple instrumental measurements.These methods can sometimes be applied to thick slurries which behave as if homogeneous. However, for the...

Jan 1, 1965

By Frank E. Cash

Although during the past 10 years Alabama has attained an enviable position by its coal-mine accident experience and, like most of the other coal-mining States, has made progress in the safer operation of coal mines, there is still room for improvement, which can be realized only by still greater efforts on the part of employees and employers. From 1993, when accidents were first recorded by the Alabama State Mine Inspection Department, to 1934, inclusive, 3,451 men lost their lives in the production of 569,722,676 tons of coal. The primary purpose of this report is to bring to the attention of the mining industry in Alabama end elsewhere statistics of fatal accidents for 1931-34, with the hope that a study of the causes may lead to reduction of similar accidents in the future.

Jan 1, 1936

By M. I. Brasileiro

The use of experimental design to the study of mixtures has found a wide range of applications, even in laboratory scale or in industrial development works. The aim of this work was to maximize granite sawing waste content in ceramic tiles using experimental design. Based on the raw materials, specific formulations were developed using the experimental design. The raw materials were mixed and sample bodies were produced using uniaxial pressing. The sample bodies were fired and characterized in terms of water absorption, mechanical strength and X-ray diffraction. Regression models were adjusted relating the water absorption and mechanical strength with the amount of raw materials. The results showed that the methodology of experimental design maximize the content of wastes incorporated in ceramic tiles formulations. Formulations containing up to 40% of waste can be used for the production of ceramic tiles.

Jan 1, 2009

By C. A. Cole

This work consists of research in cable fault location and the construction of four field-test units based on the research. Swept-frequency sounding of mine cables with RF signals has been the technique most thoroughly investigated. The swept-frequency technique is supplemented with a form of moving target indication (MTI) to provide a method for locating the position of a technician along a cable and relative to a suspected fault. Separate, more limited investigations involved high-voltage time domain reflectometry and acoustical probing of mine cables. Particular areas of research included microprocessor-based control of the swept-frequency system, a microprocessor-based fast Fourier trans-form for spectral analysis, RF synthesizers, transmit-receive switches, RF receivers, cable dispersion-compensation techniques, low-voltage multielement display systems, and techniques for injecting or recovering RF energy through cable walls in support of clamp-on fault locators.

Jan 1, 1982

By J Young, S Yu, P Moyo, M Powell, A Musunuri, B Bonfils, S Kanchibotla, P Yaroshak, V Jokovic

The appropriate design of liners continues to be an issue on many mills worldwide. Loss of milling capacity especially at liner change, uneven wear lives along the mill, substantial scrap on worn liners, excess mill down-time, undesirably short and unreliable wear lives are all common issues. This paper presents a designed approach to liner optimisation that follows a logical path of initial design and step-wise improvements based on liner wear monitoring. The target is to have a good liner design from start-up, then tune the profiles, heights and thicknesses based on wear monitoring. This is conducted as a team of liner specialist, site personnel and liner supplier. The application to the Pustynnoye SAG mill of JSC Altynalmas in Kazakhstan is presented. The increase in liner life by around 50% along with increased mill throughput of over 20% illustrate the huge benefit of the cooperative triumvirate approach through the gains that can be made in productivity and reduced liner costs.CITATION:Powell, M, Kanchibotla, S, Jokovic, V, Hilden, M, Bonfils, B, Musunuri, A, Moyo, P, Yu, S, Young, J, Yaroshak, P, Yalcin, E and Gorain, B, 2018. Advanced mine to mill application at the Barrick Cortez mine, in Proceedings 14th AusIMM Mill Operators' Conference 2018, pp 177–196 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 29, 2018

By M. Rakoma

Following the blasting fatality on 17 December 2009, Landau Colliery was forced to change from the blasting practices that had been utilized since the start-up of the mine. Since then, attempts have been made to optimize blasting results. The challenge is rooted to the mining environment - during the early life of the mine, mining took place in virgin areas, whereas currently mining is taking place in areas overlying old underground bord and pillar workings. The underground bord and pillar workings aggravate phenomena such as spontaneous combustion, hot holes, and sinkholes. The 2009 fatality was attributed to hot holes causing premature detonation. Landau has been struggling with poor results from their overburden and coal blasts; leading to poor fragmentation of overburden and the PI parting that lies between the No.1 and No.2 coal seams. An extensive literature survey was completed in order to identify possible alternative solutions that could be evaluated for this unique mining environment, which demands a high degree of caution during mining to ensure factors such as dragline stability and personnel safety. The literature survey confirmed that the previous blasting technique, which was mainly characterized by air decking, was indeed the more efficient, although it was deemed unsafe because of the possibility of hot holes and the high sensitivity of detonators. Potential modifications to the blasting technique were modelled in a Microsoft Excel simulation that was available from the mine, and pit visits were conducted in order to determine whether implementation would be a problem. From the model it is evident that results can be improved by changing the current burden and spacing ratio. Visiting the pit revealed that the tie-in pattern and drilling inaccuracies are contributing to problem areas.

Jan 1, 2013

By D. R. McConnell

The seafloor in the US Pacific OCS and EEZ is enriched to varying degrees in critical and economically important minerals such as nickel, manganese, cobalt, copper, zinc, REY (rare earth elements plus yttrium), titanium, vanadium, antimony, gold, and silver. These mineral deposits take the form of polymetallic nodules on the seabed, cobalt rich ferromanganese crusts on seamounts and ridges swept clean of sediment accumulation, and seafloor massive sulfides formed by hydrothermal systems at geologic plate spreading centers and volcanic margins. Each of these mineral deposits form on or near the deep ocean seafloor where water depths are typically 4000 m to 5500 m and on the seamounts and volcanic arcs that rise from these depths. Commercial interest in deep sea mineral deposits and the potential for collecting or mining them began in earnest in the 1970s but has been heightened in the last 20 years as the international framework for developing these minerals in International Waters has matured that has coincided with forecasted rapid rising demand for minerals to supply energy and manufacturing needs for the green economy. Compilation reports published by academia, government, and private companies are reviewed to assemble data and assess the prospects for deep sea marine minerals in the US Pacific OCS and EEZ. Key compilations were made by the Circum-Pacific Council and USGS in the 1980s and 1990s. These, together with recent (2023) efforts by USGS to compile geochemical data from USGS affiliated marine research sampling cruises from the 1980s and 1990s, historical data maintained by NOAA National Centers for Environmental Information (NCEI), and recent publicly disclosed results from ISA contractors are used to inform the known occurrence and prospectivity for polymetallic nodules, cobalt-rich ferromanganese crusts, and seafloor massive sulfides in the US Pacific OCS and EEZ.

Feb 22, 2026

By W. William Culver

James Douglas became known in the nineteenth century for two reasons fundamental to his mining career: (1) his experimental work with copper hydrometallurgy, and (2) his grasp of the idea that the quantity of copper ore matters more than the quality. On the first reason, there is a moment for any technology that’s critically important—when it moves from an area of scientific interest to one that companies are founded on. This paper examines the original 1869 Hunt and Douglas Copper Process in the context of science and engineering as they were in the 1860 and 1870s. It was a “humid” process, developed at Quebec’s Harvey Hill Mine. Chemically, the Hunt and Douglas vat leaching process succeeded, but not the original companies using it. On Douglas’ understanding of ore quality versus quantity, luck had it that the first company to field test the Hunt and Douglas Copper Process was in Chile. The Hunt and Douglas patent made that transition from experimental model to operational plant in 1870 when the Compañia de Minas de la Invernada was organized in Valparaíso. As a joint-stock company, Invernada spread the risk of investing in the revolutionary, but untested, Hunt and Douglas Process. The company brought Douglas to Chile as a consultant in 1871. His experience with hydrometallurgy, combined with what he learned about the copper business while in Chile, set him off on a career in metal mining that both surprised Douglas and made him wealthy.

By G. W. Luxbacher

This volume describes the use of the Penn State Mine Ventilation Simulator (PSU/MVS) to model existing mine ventilation systems and, in addition, to evaluate the effect of system modifications. Ventilation survey methods designed to insure computer input data of sufficient accuracy for simulation purposes are covered in comprehensive detail, including quantity and pressure measurement and fan performance testing. The development of input data from ventilation survey results is discussed and illustrated by the use of an actual field survey. Two programs, written in FORTRAN IV with WATFIV, are presented to calculate airway head losses from altimeter pressure measurements. An existing coal mine ventilation system is analyzed and modifications to the system are simulated and evaluated. In addition the application of the PSU/MVS to non-coal mines is briefly discussed. An extensive bibliography on ventilation surveying and simulation is included.

Jan 1, 1977

By F. C. Canney

Geochemical prospecting seeks hidden mineral deposits by sampling for variations in the chemical composition of naturally occurring materials. Usually the samples are of soils and other products of weathering and erosion—surface materials extremely susceptible to contamination by human activities. Except when a survey is conducted well away from populated areas, contamination is an ever-present hazard. The program's success is particularly endangered when the contaminants are the elements sought; if these occur erratically throughout an area, spurious anomalies completely unrelated to mineralized areas can be formed. Evenly distributed contamination can be dangerous too, if it raises the background to such a level that true anomalies can no longer be easily detected. Suppose, for example, that in an area where the lead background is 20 parts per million the soil over a lead vein contains 1000 ppm of lead. Here the contrast would be 50 to 1, which is very satisfactory for geochemical surveying. Now if 1000 ppm of lead from some source were added evenly to the soil in this area, the contrast would be reduced to about 2 to 1, and the anomaly would no longer be readily detectable because a threshold of significance twice the value of the background is the minimum generally used for interpreting geochemical data. Of the many possible sources of contamination, probably most important are smelter fumes, which may distribute large quantities of metal contaminants over many square miles of ground. For several reasons, the investigation reported here was begun in the Coeur d'Alene district in northern Idaho: 1) a lead smelter has been operated in this district since 1917 and an electrolytic zinc plant since 1928, and presumably the contamination patterns are strongly developed; 2) to evaluate the usefulness of certain geochemical techniques, V. C. Kennedy and S. W. Hobbs of the USGS had already studied the distribution of copper, lead, and zinc in the soils (both in background areas and other veins) and in the water and plants, providing a criterion for measuring the magnitude and effect of soil contamination; 3) one of the economically important parts of the district lies south of the South Fork of Coeur d'Alene River and within a radius of five miles of the reduction plants near Smelterville (Fig. 1). In this area, and in the entire district, conventional methods of prospecting are hindered by heavy vegetation and thick soil cover, and the possibility of contamination by smelter fumes has discouraged geochemical prospecting. Should data reveal that geochemical prospecting could be done successfully in such an area, a particularly useful tool would be available to mining companies and prospectors searching for concealed orebodies in this economically important part of the district. The field work on which this report is based was done from July 28 to 31, 1955. It should be emphasized that this was reconnaissance study only, and therefore far from exhaustive. Previous Investigations in U. S. : The first geochemical survey known to have been affected by contamination was conducted in 1940—a geobotan-ical reconnaissance made in the Michigan copper district by a private company. Geologists found striking variations in the copper content of oak and maple leaves, but unfortunately the high copper isograds of the study seemed to be related more to the Calumet and Hecla copper smelter fall-out than to mineralized ground.' The leaves of one oak tree near the smelter contained 0.4 pct Cu. Similar contamination was reported by Clarke (Ref. 2, p. 41), who conducted experimental geochemical soil and botanical surveys at Ray, Ariz. He found that the leaves of oak trees growing in unmineralized ground near Superior, Ariz., contained more copper than the leaves of oak trees growing on the capping of the Ray orebody and attributed this fact to contamination from the fumes of the Magma smelter at Superior. According to H. E. Hawkes,3 soils and stream sediments in the Superior area are also severely contaminated. Hawkes' work there has shown a copper content averaging 0.5 pct in the surface horizons of soils within one mile of the smelter stack. Samples taken only a few inches below the anomalous surface samples showed only background copper values. In 1950 L. C. Huff' of the USGS made a geochemical survey in an area near Jerome, Ariz., and found considerable zinc and copper in the soils over unmineralized basalt close to Clarkedale, Ariz., and over limestone close to Jerome. As the amounts were notably greater than could reasonably be expected to be derived from the underlying rocks, Huff suspected airborne contamination from the smelter at Clarkedale. Description of Area: The area sampled in detail (Fig. 1) for the study presented here is one of strong relief. The dominant watercourse is the westward-flowing South Fork of the Coeur d'Alene River. East of Kellogg the South Fork flows in a rather narrow canyon, but its valley floor widens considerably to the west where much of the flood plain is covered by an extensive veneer of mining, milling, and smelting debris. South of the South Fork and between Big Creek and Pine Creek is a mountainous area where

Jan 1, 1960

By David K. Hylbert

This study was designed to investigate roof falls in room-and-pillar drift coal mines and to determine geologic methods for predicting unstable roof conditions. The study area was located in Harlan County, Kentucky and the Bailey Creek (Harlan coal bed) and Highsplint (Darby coal bed) mines were selected for study. Correlations were made laterally between surface outcrops and within the mines using lithologic and trend analysis criteria. Lithologic criteria compared cyclic changes in roof strata. Results indicated that roof falls are associated with zones of weakness within or between five vertical cycles recognized. Abrupt lateral facies changes occur. In the Highsplint mine the roof was classified in four categories or conditions using 98 rib sections for control. Structure contour and isopach maps were used to project axial trends of the sandstone roof. A roof-fall zone was examined using ten NX cores taken from the roof and included lithologic, petrographic and clay mineral studies. At the Bailey Creek mine roof failure was caused by the heading direction being driven subparallel to paleochannel directions. Computer programs were used in trend analysis studies. Cross-bedding, paleo-channel trough axis and sole mark studies indicated a 350 discrepancy between surface and in-mine trough axes at Highsplint. A direct relationship between joint and "slip" frequency and direction with sandstone roll trends was found. Surface joints compared well with drainage Segments, hilt did not correlate with roof falls in areas of mines under overburden in excess of 600 feet.

Jan 1, 1977

By Margaret R. Egan

A series of experiments were undertaken by the Bureau of Mines to determine the emission products of several types of conveyor belting and other combustible materials found in mines. These experiments were conducted under intermediate-scale, simulated mine conditions to determine smoke characteristics and gas concentrations. From these determinations, heat-release rates, particle sizes, obscuration rates, combustion yields, and production constants were calculated. Three types of belts were investigated: chloroprene, also known as neoprene (NP); polyvinyl chloride (PVC); and styrene-butadiene rubber (SBR). The belts were designated as ignitable or self-extinguishing depending on the length of the burning time and the subsequent combustion products. Under these experimental conditions, the SBR belts were the easiest to ignite. The PVC and NP belts tended to self- extinguish within a few minutes after ignition, but were still capable of maintaining a brief flaming period. These conveyor belt combustion results are compared with previous analyses of wood, transformer fluid, and coal fires. Together they form a data base by which findings from future experiments with other mine combustibles can be compared.

Jan 1, 1988

By Albert H. Clough

The Coast Range subarea of the Juneau Mining District (JMD) extends from the Canadian border north of the community of Skagway, southerly to Tracy Arm. It is bounded by the international boundary on the north and eastern edges. The Ferebee Glacier and Lynn Canal mark the western boundary, extending south to the Berners Bay region. From Berners Bay south, the western boundary is the eastern boundary of the Juneau Gold Belt (fig. E-l). The city of Skagway (fig. E-2) is the only developed community within the confines of the subarea. Skagway was originally established as a port for the Klondike gold rush of 1898. Recently, Skagway has gained prominence as a port for shipping goods into and mineral products out of Yukon Territory (fig. E-3). Skagway has also developed a thriving tourist industry based on its Alaskan traditions. The community of Skagway maintains a paved airstrip which is suitable for use by small multi-engine aircraft. Several regional air carriers serve Skag-way with frequent scheduled flights, especially during the summer months. Helicopter charter services are available from Skagway during the summer months.

Jan 1, 2012

By T. Shoji

"The human history is characterized by social development based on mineral and energy resources, and many conflicts to take the resources by power. This is shown by not only world wars but also many local conflicts as well as international supremacy.IntroductionThe world population after B. C. 10000, which is summarized in several papers, is approximated by four straight lines on a semilogarithmic diagram as shown in Figure 1 [l]. The annual rates of increasing are 0.0041, 0.071, 0.53, and 1.85 % from the old and young periods. The boundaries among four periods are approximately B. C. 4600, AD. 1670, and 1930. The start of the second period seems to correspond to the beginning of agriculture and cattle breeding. Precisely speaking, the usage of natural energy resources such as woods and domestic animals already began, but is inferred to have become common after the age. The third and fourth periods are characterized by the common usage of coal and oil, respectivety. Not only energy resources but also mineral resources including gold, copper, iron and others are also important for the human history.Mineral and energy resources have supported the development of the .human civilization, and have caused many conflicts because of this reason. Every day newspapers report conflicts, such as Chechnya, East Timor and Ache. We can easily point out the facts that the conflicts closely relate to mineral and energy resources. Groznyj, Capital of Chechnya, is located on the western margin of Caspian oil field. Many mineral deposits occur in Kavkaz Mountains running south of Chechnya. Subsea oil fields occur in Timor Gap located between East Timor and Australia. Ache is also one of oil fields in Indonesia. It is very difficult to state present conflicts independently of a political view of point. For this reason let us try to historically review the relation between mineral and energy resources and international domination and conflicts [2] based on many papers [3]."

Jan 1, 2000

By L J. de Lange

As a material asset for mining entities, the resources and reserves (RR) estimation processes are surprisingly underrepresented in the assurance landscape. When press reports expose them being inaccurately reported, or in merger and acquisitions processes, their importance becomes clear. The impact of erroneous RR numbers (both positive and negative) could have a material impact on an entity’s reputation and value.The technical nature and ‘black magic’ connotations of the RR estimation processes are possibly reasons why audit committees are not actively involved with it. Internal auditors avoid the RR processes for similar reasons. Also the traditional approach to obtain assurance on RR is expensive and is therefore only performed when it is absolutely required.However, stakeholders’ expectations of good governance are growing. Part of this increased focus is based on attaining a higher degree of certainty about the current and forecasted position of the entity. Stakeholders are also increasingly more interested in non-financial areas of entities, as the future success of an entity is more than a set of financial metrics.Consequently, the RR estimation processes should be visible on the agendas of audit committees. Monitoring of key controls is required as part of the governance obligations for senior management and the audit committee. So once it is on the audit committee’s agenda, the question then becomes, how will that agenda be supported by an assurance process that is cost-effective?The main objective of the paper is to describe a model of RR assurance that has been effectively applied in some mining companies. The paper discusses one particular approach that provides an audit committee with the required assurance regarding RR processes. The approach ties the assurance needs of the audit committee to the needs of the technical experts in the entity, therefore involving two important figures. It also offers assurance providers with a model to audit ‘through’ the RR processes rather than ‘around’ them. The paper then discusses top-down and bottom-up approaches that provide assurance at different levels of an entity.A governance audit that focuses on the RR processes is suggested as a top-down approach. A bottom-up approach assesses the design adequacy of internal control processes. A hybrid model is described which meets the needs of diverse stakeholders including the audit committee and the RR community.The hybrid model combines the expertise of professionals in both internal audit and RR. The right balance of these skills directed by a singular approach ensures that a credible result is achieved.This approach is not as expensive as some verification approaches used in the industry and can, as a result, be performed on a more regular basis.The last element of the paper looks at implementation of the reporting mechanism. An assurance process aimed at continuous improvement further enhances the robustness and reliability of RR reported by an entity.CITATION:de Lange, L J, 2016. Resources and reserve assurance processes – a framework for improved governance, in Proceedings International Mine Management Conference, pp 21-34 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jun 22, 2016