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By E. Poiate, P. R. Cabral, A. V. N. Santos, P. V. M. Costa, C. S. Amaral, A. M. Costa

This paper discusses the design of underground salt caverns, opened by solution mining, for the production of brine and storage of natural gas under high pressures. The caverns are located in the salt basin in Maceio City, Alagoas State, at the northeast region of Brazil. Special attention is given to the geomechanical structural design of the caverns using computer codes specially developed for the simulation of excavations in salt rock formations, considering validated constitutive creep laws under different initial stress states and temperatures. The behavior of sedimentary rocks intercalations presented in the salt layer is simulated using elastic-plastic models. The excavation of the caverns by solution mining is also simulated starting from a geostatic initial equilibrium state of stresses, with a unique formulation only implemented in these computer codes, without the need of the application of boundary stresses to the model in order to develop the initial state of stresses. These computer codes have being used in the design of several clusters of caverns for brine production used as raw material of Poly Vinyl Chloride (PVC) of the Chemical Industryin Brazil. These computer codes and methodology were also applied to the design of the underground conventional potash mine in the state of Sergipe, overlying tachyhydrite and carnallite with very high creep strain rate. They have also been used in the design of the pre-salt oil wells through thick layers of stratified salt rock in Santos Basin, for the exploration and production of the pre-salt reservoirs in Brazil. The constitutive creep equations implemented in the codes are based on a double mechanism creep law. The creep constants adopted in the simulation are taken from a previous investigation carried out on an experimental panel of the potash mine, considering the stratified geology with different salt rocks of the basin where the mine is located. These constants were also obtained by lab tests under different confined and differential stresses and temperatures.

Jan 1, 2015

By Charles W. Villiers

AS is well known, there are large and valuable deposits of coal in British Columbia, both on the mainland and on Vancouver island. These deposits are widely distributed over the Province. The chief sources of supply on the mainland are found in the Fernie and Princeton-Nicola districts and on Vancouver island in the Comox and Nanaimo districts. The coals range from a very high quality bituminous coal to lignite. On the Upper Skeena river there is said to be a very large deposit of anthracite or semi-anthracite, but this field has not been developed. Coal was first discovered in British Columbia on the north end of Vancouver island in the year 1835, but it was not until 1852 that coal mining was seriously undertaken by the Hudson's Bay Company at Nanaimo, where mining has been carried on continuously ever since that date. The production of coal in the Province continued to increase until the year 1910, when the annual output reached its peak at 3,100,000 tons and a total of 7,800 men were employed in the industry. Since 1910, the production has dropped steadily until, in 1934, only 1,347,000 tons of coal were produced and less than 3,000 men were employed. This continued decrease in production has in no way been caused by lack of coal reserves. It has been due entirely to curtailment of markets. I do not propose to discuss coal mining practice in British Columbia, where we have all sorts of mining conditions, including submarine mining. There is no lack of coal supplies for either industrial or domestic purposes, nor is there likely to be any shortage of coal in the Province for many generations. We have our mining troubles, which increase the cost of production, but there are no insuperable difficulties to prevent the extraction of a large and increasing supply of coal. Our main difficulty-in fact our only serious difficulty-is to find a market for our output, and we must consider means which can be evolved not only to conserve our existing markets but also to expand them, at any rate within the boundaries of Canada. I will therefore confine my remarks chiefly to the all-important factor of Markets for our coal.

Jan 1, 1936

By S. Kelebek, B. Nanthakumar

ABSTRACT The sensitivity of sulphide minerals towards oxidation depends on the mineralogical makeup and nature of sulphide ores. This paper focuses on chalcopyrite behaviour in a nickel-copper sulphide- ore matrix that was aged in the mine-site stockpiles. Results of collectorless, collector-induced flotation and recovery by size are presented following a discussion of XPS analysis that was used to gain insight into oxidative alteration of chalcopyrite’s surface chemistry. Chalcopyrite maintains its high flotation activity despite exposure to weeks of oxidative conditions. It is concluded that chalcopyrite is quite tolerant to stockpile oxidation due to various factors related to alteration of its surface chemistry.

Jan 1, 2012

By Descarreaux. Jean

"The Abitibi volcanic belt was sampled along a cross section extending from Matagami to a point east of Rouyn. A few samples were also collected in Louvicourt township, Quebec. The major elements were determined for 344 samples, and rock names were defined using normative minerals. The analytical data were studied by means of variation diagrams. The Abitibi volcanic belt is characterized by rocks belonging to both the tholeiitic and calc-alkaline magmatic series, but they show some differences as compared to some typical reference series, particularly those from Japan. Basalt is the predominant rock type and accounts for 44 per cent of the sampled outcrops. The volcanic rocks are relatively poor in K2O and TiO2. Regionally, the volcanogenic copper-zinc mineralization is associated with the calc-alkaline volcanic sequences. Locally, within such sequences, some types of abnormal deviations from the averages are recognized only in association with the copper-zinc mineralization. The anomalies are ascribed to hydrothermal alteration consisting of the introduction of MgO and removal of N a20; enrichment in K20 is also observed where zinc mineralization predominates. Examples of such anomalous zones show that, in places, this alteration phenomenon can be quite extensive. Petrochemical characteristics can be used as geochemical ore guides in exploration programs."

Jan 1, 1973

By I. Thobadi, C. Pawlik, K. Bisaka, S. Mokoena, M. Erwee

The PyEarth™ process developed at Mintek has been demonstrated successfully at pilot scale. Nine tons of ore containing 2.3 mass % of total rare earth oxides (TREO) from a dormant mineralogically complex iron-rich ore deposit, was subjected to a concentrating smelting step in a 200 kW DC open-arc pilot furnace and the rare earths from the resulting slag were extracted via a hydrometallurgical route. This ore deposit is practically not amenable to extraction by conventional methods. The testwork results proved that the PyEarth™ process was able to optimize the extraction of rare earths while minimizing waste through the removal of iron as a saleable iron alloy. Reduction of iron to the alloy in the smelting step was found flexible, efficient, and controllable, while rare earths were left virtually unreduced in the slag phase. The slag chemistry is selected to optimize both the smelting and leaching performances as well as the alloy composition. Leaching of the resulting slag was found possible and most efficient in hydrochloric acid amongst other lixiviants tested.

Jan 1, 2017

By J. A. McLennan

Geological uncertainty is an unavoidable characteristic of all mining projects since only limited information is available from sampling. Mine planning and development decisions with significant economic consequences are made when the geological heterogeneity is inherently uncertain. Geostatistical simulation is preferred over kriging because the methodology provides alternative property realizations that can be combined into a model of geological uncertainty. Geological uncertainty can be transferred into production uncertainty, which can help characterize the economic risk of the project. This paper presents a case study for the Pogo property, being prepared for development near Fairbanks, Alaska. The exact dimensions, grades and production predictions have been modified; however, the methodology is illustrative. The geostatistical methodology consists of (1) assembling the relevant drillhole data and establishing a suitable coordinate system, (2) calculating the target distribution, (3) creating a model of spatial correlation, (4) generating multiple realizations at a small scale and (5) linearly averaging all the realizations to the chosen selective mining unit (SMU) support size. The geostatistical model is then used to calculate production uncertainty.

May 1, 2004

By S. Foged

Umicore and MWH jointly demonstrated that mechanical dewatering of goethite and neutralised tailings significantly increased the life of a 30 ha tailings pond and improved the operation of the pond. Umicore operates one of its zinc production plants in Balen, Belgium. As part of its production process, an excess of neutralised and goethite¬containing tailings is generated. These have historically been stored inside large lined ponds. As the storage area of the current goethite pond was nearing its capacity, Umicore studied the potential for an extension to the existing embankment. However, this extension would face intense regulatory scrutiny, because the environmental and safety impacts were considered important. Together with Umicore, MWH suggested and investigated an alternative treatment approach consisting of mechanical dewatering prior to storage. A feasibility study was prepared where wet storage was compared to dry storage. Differences in safety risks, environmental impacts and economic costs were outlined. The study demonstrated that the life of the tailings pond could be increased from 6 to 22 years, seriously reducing the environmental impacts and safety risks at no significantly higher cost than would have been incurred with the continued operation of the existing pond. The results of the study are presented in this paper.

Jan 1, 2006

By Hatch, A. Reple, W Valery

The mining industry is facing declining feed grades which require the mining and processing of larger volumes of material per tonne of product. Pre-concentration aims to remove barren material at as coarse a particle size and as early in the process as possible to reduce processing costs, energy consumption, water losses, and greenhouse gas emissions while increasing production and profitability. This may be achieved using bulk ore sorting—the separation of barren gangue from a fully loaded conveyor belt based on the grade as measured or inferred from a sensor. This paper evaluates the technical and economic viability of bulk ore sorting for the PanAust Phu Kham copper deposit in Lao PDR. Bulk ore sorting technology is described briefly along with discussion of appropriate sensor and diversion systems for the Phu Kham operation. To evaluate the economic implications, the actual mined material and costs from 2014 were used as the base-case. Sampling data was not available; therefore, the ore grade variability that would feed a bulk ore sorter was estimated using geo-statistical tools based on mine grade control data. The sorter performance when treating this material was simulated considering the accuracy of the sensor measurement and errors associated with material diversion. The impact on inferred cash flow was estimated for several different scenarios considering the additional costs for sorter operation and reject handling. The evaluation demonstrated that bulk ore sorting at Phu Kham has the potential to increase the amount of metal in product and/or reduce processing plant throughput (and costs) to improve the annual inferred cash flow for the conditions investigated. The sorter is the gatekeeper – only material above the cut-off grade (value-adding) reports to the processing plant; no waste dilutes the feed. Likewise, above cutoff grade material is not lost to waste; preventing lost revenue.

Jan 1, 2016

By R. E. Dye

Introduction Research concerning all phases of hoisting practice, but more particularly the causes and prevention of hoisting rope deterioration and the improvement of safety dogs 158 for shaft conveyances, has been carried on intensively for the past three years in the Province of Ontario. Prior to the hoisting accident at the Paymaster mine on February 2nd, 1945, there had been no fatalities in the Province due to a hoisting rope failure. It was probably on this account that little original research on hoisting problems had been undertaken here and that the mining industry had been content to look to British, South African, and United States investigators for new developments in this field. Except for the Paymaster accident this might still be the case since, in any industry, it is apparently necessary for a serious accident to occur before any extensive programme of preventive research is launched. When this accident occurred, the Government of Ontario, with the close co-operation of the Paymaster officials and the mining industry as a whole, took immediate steps to determine the cause. A five-man, non-industry committee, selected from the Faculty of the University of Toronto with Dean C. R. Young as Chairman, was appointed by the Government, and a three-man Committee consisting of R. D. Parker, General Superintendent of the International Nickel Company of Canada, Limited, R. L. Healy, General Manager of Wright Hargreaves Mines, Limited, and R. E. Dye, General Manager of Dome Mines, Limited, with the latter acting as Chairman, was appointed by the Ontario Mining Association.

Jan 1, 1948

By J. Ouellet

The design of hydrostatic liner for a deep potash mine shaft in Saskatchewan poses tremendous technological challenges. Technology has evolved to a point where one could consider a new innovative approach to hydrostatic liner design. But there is still a place for conventional technologies such as cast iron tubbings. As will be discussed in this paper, improvement to manufacturing process, installation procedures and even new materials can bring this technology to an excellent level of performance. With the spur of new projects in the potash industry of Saskatchewan, the authors worked in various shaft liner designs from the conceptual stage through to the construction phase. They were either directly leading the design work on some of these projects or acting as an external reviewer on others. Most of these shaft liner designs involved cast iron tubbing technology and ground freezing. The major challenge in sinking potash shafts in Saskatchewan is to go through a water-bearing ground formation under high pressure, known as the Blairmore or Manville fm. The only proven stabilizing technology for these formations is ground freezing. For a potash shaft, dry shaft conditions are highly desired, so a fully waterproof hydrostatic liner is required. All the existing potash mine shafts in Saskatchewan, except for two with composite steelconcrete lining, used the cast iron tubbing technology. Two new shaft tubbing liners have been constructed recently, one in the Athabasca Basin and one for a potash mine in Saskatchewan. When the authors began working on these new projects, what became quickly evident is that the technological knowhow for designing and constructing tubbing liners was no longer available within Canada and that the past construction methods used to sink tubbing lined shafts was obsolete. The tubbing liner for the shafts sunk in the sixties were designed either by German or British companies. In both of these countries only few tubbing lined shafts were sunk in last 40 years and the technology used in the sixties was not improved. There are only few countries where tubbing is routinely produced and installed: China, Russia, Ukraine and Poland. Out of these countries Poland is the one where this technology is the most advanced. The authors, working in close collaboration with engineers from Poland, attempted to rebuild this knowledge for the mining industry in Canada. This process involved thorough analysis of old technical reports, literature review and study of current polish design and construction practices as well as site visits of existing shafts. Through actual construction experience, some lessons were learned as well as ideas for improvements. In this paper, the authors will present a succinct review of design and procurement process. But, the practical aspects of the construction and installation methodology will be treated with more emphasis, more specifically the practice leading to good liner performance. Some of the poorly understood technical aspects of tubbing installation will be discussed more thoroughly and some currently accepted myths dispelled.

Aug 1, 2013

By N. Aslin, G. Heferen, H. DeWaal

"Mount Isa Mines (MIM) acquired a reputation for the successful application of R&D to develop break-through technologies for the mining industry starting in the 1978’s through until the early 2000’s. The ISAPROCESSTM tank-house technology has been licensed to copper refineries throughout the world, and a significant per cent of the world’s copper is refined using this technology. Since development in the late 1980’s more than 20 ISASMELTTM copper and lead smelting furnaces are now installed in countries around the world. Jameson Cell flotation technology developed jointly by Mount Isa Mines and Professor Graeme Jameson is widely used in the Australian coal mining industry and increasingly in the base-metal and gold industry. The IsaMillTM’s developed at Mount Isa and McArthur River made it possible to develop the McArthur River and George Fisher orebodies and has been successfully implemented into base metal fine grinding applications around the world. The most recent commercialised innovation is the atmospheric leach Albion ProcessTM with its supersonic HyperSpargeTM gas sparger, is being adopted as a solution to the increasing complexity of orebodies. MIM’s contribution to the industry was significant given the size and the remote location of its operations with Townsville Copper Refineries more than 1350 km and Mount Isa 1800 km from the nearest state capital of Brisbane. This paper will briefly discuss the development of each of these technologies and why MIM – now owned by Glencore - was so successful innovating and developing such technologies over a period of nearly 40 years.INTRODUCTION Mount Isa is located in the Gulf Country region of Queensland about 1800 kilometers North West of Brisbane (see Figure 1). It came into existence because of the world class mineral deposits found in the area. In 1923 the orebody containing lead, zinc and silver was discovered by the miner John Campbell Miles. Mount Isa Mines Limited (MIM) was founded in 1924 to develop the minerals discovered by Miles, but production did not begin until May 1931. It paid its first dividend in 1947 after 16 years of troubled production. In 1954 the 1100 copper orebody was discovered and with rapidly rising reserves during the 1950’s and 1960’s led to the construction of new concentrators to treat lead/zinc/silver ores in 1966 (#2 concentrator) and copper ore’s in 1973 (#4 concentrator). The difficult nature of the Mount Isa lead-zinc orebodies has meant that the company had always needed to be at the forefront of mining technology. In the 1970’s through to the 1990’s, it became a world leader in developing new mining techniques and processing technologies as a response to declining metal prices and rising costs. Mount Isa has been smelting copper since 1953 and lead since the early 1930’s. Copper Refining at Mount Isa’s fully owned subsidiary of Copper Refineries Proprietary Limited (CRL) had commenced operations in 1959."

Jan 1, 2018

By P. G. Killeen

Proper calibration of portable gammaray spectrometers and spectrometric logging equipment is essential if they are to be used for accurate quantitative determinations of radioelement concentrations. In the case of both types of equipment, it is necessary to determine the system calibration constants (stripping factors and sensitivities). In the case of borehole logging equipment, it is further necessary to determine the system response characteristics if the data are to be computer processed to improve the accuracy and resolution of the logs. Facilities are now available near Ottawa for the complete calibration of portable gamma-ray spectrometers and spectrometric logging equipment, in addition to already existing facilities for calibrating airborne gamma-ray spectrometers. Limited additional facilities are also available or planned in several other areas of Canada.

Jan 1, 1978

By E. Nolasco, J. Ouellet, T. Tikka

"Shaft bottom structural systems are used in underground mining to support transfer of personnel, equipment and ore to and from underground to the surface. This paper first summarizes the evolution of design philosophy from a concrete tower supported on a concrete plug to the current structural steel design arrangement with unlined shaft walls, clear shaft bottom area with only a concrete housekeeping pad. Then the paper reviews the design parameters, analysis and design, and construction methodology for this rather unique shaft bottom structural system consisting of three sets of hitch beams, with each having specific functional requirements. INTRODUCTION Shaft bottom structural systems are used throughout the world in underground mining operations to provide a means to support the transfer of personnel, equipment, materials, ore and waste entering and exiting a vertical shaft ready for transport to and from the surface via the hoisting system. The shaft bottom structural system, for the Service Shaft (SS) at the Jansen Mine, is designed to accommodate two skips, a personnel/equipment cage, counterweight, services, loading pocket, rope changing, arrestor system, crash (or catch) beams, access platforms, stairs and rope divider system. Stantec and BHP have engineered a unique structural steel shaft bottom system for hoisting system at a Potash Mine. The shaft bottom structural system connects to a fixed guide and cantilever bunton system, used in the vertical shaft (shaft barrel), above the shaft bottom. The geometry for the shaft bottom structural system, shown in Figure 1 a), features three sets of hitch beams, beams which span across the shaft excavation or barrel. At the top of the structural system are two upper hitch beams. These hitch beams support a 64 metre suspended rectangular braced tower (upper tower), complete with steel guides for the conveyances. The upper tower passes through the main station (potash or mining) level and then connects to the top of the arrestor (lower) tower structure via a sliding vertical connection. The potash level is supported by two hitch beams spanning the shaft and loading pocket excavations. The arrestor tower, a braced compression tower structure, is carried by a third set of hitch beams. Below the third set of hitch beams is a short suspended tower complete with access platforms, stairs and the rope divider system."

Jan 1, 2019

By T. Belem

The main objective of this study is to better understand the effect of underground CPB placement conditions on its microstructural, hydro-mechanical and geochemical properties. To reach this objective, three PVC columns, each 3 m high, were built, and were filled with CPB material. The columns allow simulating undrained (UD), half-drained (HD) and fully-drained (FD) conditions along with the measurement of resulting self-weight consolidation settlement of the CPB. Bleed and drainage waters were also collected from each column for geochemical analyses (pH, Eh, EC, SO42- content). After 90-days of curing time, a total of sixty CPB samples were cored from the backfill columns and subjected to uniaxial compression tests followed by physical characterization (Gs, void ratio, water content, degree of saturation, specific surface area). The results showed that the total drainage water and the maximum observed settlement occur mainly within the first 72 hours after the columns are filled. The corresponding volumetric strains suggest that in situ backfilled stopes simulated behave in a similar way to the fully-drained (FD) or the half-drained (HD) conditions. The MIP test results show that the pore structure varies between the top and the bottom of each column.

May 1, 2007

By C. S. Maggs, L. Shwydiuk, H. W. Newcomen

The southwest wall of the Lornex Pit at the Highland Valley Copper mine has been experiencing slope displacements since 1978. Measures to manage the displacements on previous pushbacks have included stepping out, scheduling pushbacks to unload the crest of unstable areas, slope dewatering and mining with intensive slope monitoring. The final pushback on this wall is currently being mined and substantial modifications to the slope geometry could prove to be uneconomical. As a result, a campaign of surface water collection and diversion, horizontal drainhole drilling and deep well drilling is currently underway to maintain an acceptable degree of stability to the end of mine life. The various factors contributing to instability, including engineering geologic controls, rock mass strength, and surface and groundwater hydrology are presented. Movement trends, displacement magnitudes and stability analyses results are also discussed.

Jan 1, 2003

By D. H. Ryan, J. T. Graham, A. Navarra, J. A. Finch, S. Somot

Pyrrhotite (Po) is widely considered to be the most significant mineral in the self-heating of sulphides. It is therefore desirable to determine the amount of Po in mineral samples. This is commonly accomplished through x-ray diffraction (XRD) or quantitative evaluation of materials by scanning electron microscopy (QEM-SEM). This paper introduces another quantitative method based on Mossbauer analysis that requires limited sample preparation and has the additional potential to detect the sulphur/iron ratio within Po. The technique is explored using pentlandite/pyrrhotite mixtures.

Jan 1, 2009

By Pierre Sauvé, Guy Perrault, Armand Savoie, Pierre Trudel

"La Mine Doyon est une entreprise détenue à parts égales par Cambior Inc. et par Minerais Lac Ltée qui en est l'opérateur. Les statistiques de production au 1"" janvier 1990 indiquent que, depuis le début de son exploitation (1980), 10.3 Mt de minerai d'une teneur moyenne de 5,9 g Au/t ont été usinées. Les réserves sont estimées a 10,4 Mt à une teneur moyenne de 6,6 g Au/t jusqu' à une profondeur de-450m.Trois zones minéralisées sont présentement en exploitation. Ces zones sont caractérisées par la présence de veines de quartz-pyrite accompagnées localement de chalcopyrite. Les roches encaissantes sont les schistes a séricite (zone# 1), les roches volcaniclastiques de composition felsique (zone #2) et intermédiaire (zone #2, zone ouest) ainsi que les roches intrusives appartenant au pluton de Mooshla (zone ouest). Toutes ces roches ont subi un métamorphisme régional dont l'intensité correspond à la limite supérieure du facies schiste vert ( -425°C}.Les zones minéralisées sont situées à I' intérieur des zones de déformation et d'altération les plus intenses. L'étude des structures mineures nous indique que la région a subi plusieurs épisodes de déformation ductile a fragile qui sont antérieurs, contemporains et postérieurs al a minéralisation. L'analyse structurale indique également que la déformation majeure est associée à une importante phase de compression orientée N-S a NNE-SSW.L’ensemble des observations suggère que la minéralisation et I' altération associée sont de type épigénétique. La mise en place du minerai se serait effectuée à la fin de l'épisode principal de métamorphisme et de la déformation."

Jan 1, 1990

By A. C. T. Bigg

"The mineral potential of the Nanisivik area was discovered as far back as 1910 when a prospector of the Geological Survey of Canada, on an expedition under Captain J. G.Bernier, recorded a deposit of pyrite with minor sphalerite and galena. An outcrop of the present orebody was discovered by Texas Gulf Company in 1957. Subsequent drilling outlined the orebody consisting of 6,000,000 tonnes of ore containing 13 % Zinc and 1.5 % Lead. The orebody appears to have been formed by the filling of a limestone cavern with sulphides. The sulphide minerals consist of pyrite, sphalerite and galena. The limestone bedrock is mostly dolomite with some calcite and magnesite. A cutoff grade of about 6% Zinc has been calculated.In 1972 Mineral Resources International Limited took an option on the property. Upon completion of the feasibility study by Watts, Griffiths and McOuat, the then new independent project management group of Strathcona Mineral Services Ltd. were engaged to develop the project through the financing, construction and operating phases. Strathcona Mineral Services still manage the project from their head office in Toronto and through the Mine Manager and Department Superintendents at the Mine site. The interest for the project is presently split five ways: Mineral Resources International Ltd. 53.5 %, Government of Canada 18 %, Metallgesellschaft A.G. of Germany 11.25 %, Billiton B. V. of Holland 11.25 % and Texas Gulf Co. 6 %."

Jan 1, 1980

By T. Bhambhani, Mukund Vasudevan, Partha Patra, D. R. Nagaraj, P. Somasundaram

Selective Ni separation from ultramafic ores rich in serpentines has been a huge challenge in the mineral processing industry, and therefore highly inefficient. Analysis of the root causes of the challenges and consequent development of robust processing solutions were the main goals of the Cytec-Columbia. University-Vale Joint Development Program. In this context, the subject of this paper is limited to one of the key findings of this research program which is the influence of fibrous serpentines on grade-recovery characteristics. Specifically, the poor flotation behavior is characterized by an atypical reverse C-shaped grade-recovery curve.

Jan 1, 2011

By R. A. Leveille, M. D. Doggett

"Economic returns for the copper industry have been assessed by building cash flow models for each of the 100 new mines brought into production over the past 20 years. Ninety-one of the 100 new mines returned the assumed 8% cost of capital and generated a positive net present value (NPV) at the development decision point. Economic criteria for individual mines are highly variable with NPV ranging from -$111 million (-$111M) to +$3850M (all money values are presented in United States dollars) and internal rate of return (IRR) ranging from -8% to +95%. The copper industry collectively would generate approximately $39 billion dollars in NPV through the development of the 100 new mines.The returns to exploration ($174M per deposit) were measured by deducting the cost of exploration per deposit ($221M) from the returns to development per deposit ($395M). Overall, the copper business has provided positive returns to exploration. However, the variability in returns across deposits means that only 41 of the 100 new mines can carry the average cost of exploration. The long lead times and high costs associated with exploration result in only those deposits with large amounts of contained copper being able to cover the average finding cost of the industry.The returns to development and exploration are shown to be highly sensitive to the cost of capital and metal price assumptions. With respect to deposit type, porphyry deposits are both larger (NPV) and exhibit lower profitability (IRR) than the nonporphyry deposits. On a geographic basis, returns to development and exploration are higher in Chile than elsewhere, reflecting the larger average deposit size and lower average exploration cost per deposit."

Jan 1, 2009