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By M. Visnjic

Open Pit Mine Production scheduling under commodity price uncertainty suffers from an exponentially increasing problem size as simulations and real options flexibility are used to generate and evaluate multiple production schedules. Robustness evaluation techniques attempt to evaluate a production schedule that is generated on a single set of economic parameters against several varying prices and sources of uncertainty. This approach is invalid as the corresponding optimal LOM mine plan will change for each set of evaluation parameters. Using commodity market futures and treasury bonds as production schedule economic input parameters provides fully price and time-value-of-money risked scheduling parameters that maintain a deterministic problem size. This paper will provide comparative analysis of project NPV’s coming from traditional price uncertainty evaluation based on a single fixed LOM mine plan using varying prices versus evaluation based on varying LOM plans that are both generated and evaluated using varying prices. When cross evaluating constant price mine plans against simulations, the upside potential and downside risk of a project are significantly misrepresented. INTRODUCTION The life of mine (LOM) production scheduling problem seeks to answer the question of from where and when to extract a given block within the ultimate pit limit as well as where and when to process it. Solving this problem takes into account the constraints of extracting any particular block while seeking to maximize the net present value (NPV) of the mineral asset as a whole. A direct driver of the value of a block, and there for the entire asset, is the market price of the commodity in question. Complications arise when an optimal production schedule is attempted to be solved under price uncertainty. Many solution methodologies have been proposed in an attempt to optimize under this criterion, yet there are three salient aspects that are overlooked during this process. They are: • Generating a single production schedule and evaluating it against many simulated price paths. • Failing to understand the mechanism describing particular commodity price behavior • Inappropriate risk adjustment In an effort to address these aspects of production scheduling under commodity price uncertainty, we propose a methodology to define the economic parameters as input that is applicable to most if not all production scheduling approaches. This methodology will not only simplify the production scheduling process in terms of establishing block value but utilizes the risk adjustment of real options valuation to avoid the arbitrary blanket risk adjustment of traditional discounted cash flow valuation. Our findings conclude that attempting to optimize around individual price paths is futile and using a market risk adjusted single price forecast provides a justified economic basis for production scheduling while maintaining the same problem size as a deterministic production scheduling problem.

Jan 1, 2019

By K. A. Grace

"An ore is a rock regardless of its rarity or value."* The application of geology does not cease with the discovery and delineation of a mineral resource, but continues in the calculation of the economic parameters that determine reserves. Reserve determination, reduced to essentials, is the determination of the cost of production of a mineral commodity from a resource. This cost comprises mining, processing, waste disposal, reclamation and marketing costs. Geological input is vital in the calculation of the individual cost parameters from mining to reclamation, and even has some impact on marketing. Geology thus has a critical role in the determination of reserves.

Jan 1, 1985

By J. Alvarez, S. Helle, U. Kelm, M. Pincheira

The principal geological and mineralogical characteristics of Chilean porphyry copper deposits are described. Elevated contents of fine grained ore and gangue material may cause copper losses and pose problems or render useless the flotation process. Examples of chalcopyrite and bornite size distributions are given. The state of the art of mineralogical and mineral chemical characterization in Chile is evaluated permitting analyses to lm and nm level by lacking the regular use of direct surface analysis.

Jan 1, 1998

By P. W. Johnson, H. Fan, S. B. Patton, T. Novak, R. L. Sanford

A computer model is presented that quantitatively uses the relationship between the interactive and dynamic processes of methane drainage, mining, and ventilation. The model includes simulation of the coalbed methane reservoir for prediction of gas-emission rates under the influence of degasification wells and longwall mining, ventilation network-generation and ventilation simulation. As mining progresses step-wise through the coalbed-methane reservoir, the ventilation network is created and subsequently simulated, iteratively determining fan requirements to safely reduce methane concentrations. The model can be used to quantitatively study the effectiveness of methane degasitication on the ventilation system in a longwall panel.

Jan 1, 1995

Canada is a major producer of chrysotile asbestos. In fact, Canada accounts for approximately one third of the world chrysotile asbestos production. Deposits are mined and the fiber processed in Québec, in British Columbia on the West Coast and in Newfoundland in the Atlantic region. Foremost among the Canadian provinces is obviously Québec. Some 85% of Canadian deliveries come from mines located in the Eastern Townships, a region which lies along the southshore of the St. Lawrence River, between Montreal and Québec City. At the heart of this vast territory, five (5) mining towns make up what is called the Québec asbestos region. Total capacity of the five (5) mining producers of Québec is about 1 366 000 tonnes.

Jan 1, 1981

By T. Maniatis, T. Pickett, B. Wahlquist

Biological destruction of cyanide in mining waters has been demonstrated effective in the lab and in the field. Applied Biosciences Corp.’s ABMet water treatment technology is used in the mining and other industries for the removal of various inorganic contaminants including metals and nitrate. An aerobic ABMet-CN process has shown great promise in efficiently and effectively removing cyanide from even very cold waters. Bench and pilot data will be presented.

Jan 1, 2004

By I. González, G. Lapidus, M. Teutli

The cementation kinetics of silver with aluminum particles were studied with model solutions under nitrogen atmosphere, varying the temperature, aluminum/silver ratio, pH and concentrations of thiourea and surface activator Recoveries were evaluated both by solution concentrations and by REDOX measurements. Tafel curves were determined for this system. The results showed the cementation process to be essentially independent of the pH and thiourea concentration. However, a strong influence was observed with respect to temperature, aluminum/silver ratio and the quantity of activator. There is evidence that the controlling step is the dissolution of aluminum oxide from the particle surface.

Jan 1, 1990

By Robert Dunne, Paul Gelfi, Vernon Martins

The New Celebration Gold Mine is located 32 km south of the regional mining centre of Kalgoorlie. The current mill throughput is 1.7 million tonnes per annum with a gold production of around 120,000 ounces per year. The main source of ore for the mill comes from the Hampton Boulder and Pernatty pits. Over the last two years the oxide reserves from these pits have been depleted and the harder primary sulphide ores are now being processed. This change has led to a decrease in cyanide extractable gold.

Jan 1, 1991

By S. P. Mehrotra, P. C. Kapur

A phase-species classification is suggested for the mathematical models of flotation kinetics. Important models are discussed and the structure of their rate constants and parameters is analyzed. Split or enhancement factors are formulated for different kinetic models. The steady state dynamics of the flotation circuits can always be described in terms of these factors. For simulation of circuits, feed is characterized in a formal manner starting from a multivariate distribution of particles in flotation rate, size and mineral content. Synthesis of optimum circuits which simultaneously searches for the best process variables and structural parameters from a generalized master network is described. Trends in the areas of search algorithms, role of middlings and feed identification etc. are indicated.

Jan 1, 1989

By V. T. McLemore

The Wind Mountain (WM) nepheline syenite deposit is part of the alkalic complex in the Cornudas Mountains, which ranges in age from 34.6 ± 1.5 Ma to 36.8 ± 0.6 Ma. The WM deposit consists of a complex, zoned pluton that ranges from syenite porphyry to nepheline syenite porphyry. The WM deposit has potential use for ceramics and dark-colored beverage containers and consists of nepheline, k-feldspar, albite, and varying amounts of other minerals. Analcime also is present locally but must be avoided because it is unsuitable for ceramic and glass. Chemically the deposit consists of 56-63 % SiO2 17-21 % Al2O3 and 4.0-5 % Fe2O3. Although initially iron is high, when the crushed rock is passed through a specialized magnetic separator, the iron content drops to below commercial maximum standards of less than 0.5% Fe2O3. The WM deposit is currently under exploration and testing to determine marketability.

Jan 1, 1994

By R. Schuerch, C. Cimiotti, G. Anagnostou, J. Nickerson, P. Perazzelli

"This paper presents experiences gained from the construction of the Lake Mead Intake No. 3 project. The 4.7 km long tunnel was excavated with a hybrid TBM (able to operate in both closed and open mode). The tunnel crossed metamorphic and sedimentary rocks under a hydrostatic pressure of about 14 bar. During the excavation of the tunnel the TBM encountered difficult ground conditions caused by a combination of high water pressure, poor ground quality and locally low depth of cover. The adverse conditions required the TBM to be driven in closed mode at very high support pressures (10 – 15 bar) for approximately 60% of the tunnel length. The paper summarizes the main problems encountered during TBM excavation and analyzes the evolution of the TBM parameters over the entire tunnel length. INTRODUCTION The Lake Mead Intake No. 3 project is located approximately 30 km away from the city of Las Vegas in Nevada, USA. The project consists of the construction of a deeper third intake for the biggest reservoir in the United States, which is formed by the Hoover Dam. The construction of the new intake was required due to the constant drawdown of the lake level (more than 40 m in the past 20 years) and the consequent risk that the shallower intakes 1 & 2 may run dry. The project included the fabrication and positioning on the lake bottom of an intake riser, the excavation and lining of a 185 m deep shaft and construction of a 4.7 km long tunnel. One peculiarity of the project is that the water table is located about 140 m above the tunnel elevation (i.e. corresponding to a hydrostatic pressure of 14 bar at the current lake level). The tunnel was constructed using a tunnel boring machine (TBM) able to operate in both open and closed mode (Mc Donald & Burger, 2009). The present paper focuses on the TBM tunneling experience gained from the Lake Mead Intake No. 3 tunnel. The TBM excavation started on December 27, 2011 and finished on December 10, 2014 with the breakthrough to the intake structure at the bottom of Lake Mead. GEOLOGICAL CONDITIONS The assessment of the ground conditions encountered during construction was mainly based upon qualitative descriptions of the tunnel face conditions (during open mode operations) and analysis of the extracted muck (during closed mode operations)."

Jan 1, 2016

By N. A. Frazier

The technology for using limestone or lime to scrub SO2 from power-plant flue gas has significant implications to the limestone industry. A brief status report on these processes will be made, possible process requirements on the limestone properties will be reviewed, and projections on the buildup of demand with respect to time will be reviewed. Disposal problems inherent with the use of these throwaway processes will also be summarized. Given a viable technology, relations among (1) distance of power plants from low- and high-sulfur coal and limestone deposits, (2) modes of handling and transporting immense tonnages of bulk material-coal and/or limestone, and (3) regional air-quality standards are some of the factors which will ultimately determine the demand for limestone. A discussion of these factors will be presented, with the intent of identifying geographic regions where significant increases in production can reasonably be expected.

Jan 1, 1974

By Jr. Smith

Industrial minerals are just other rocks, except for the unique characteristics that make them useful in an industrial process. There is not a ready market for this type mineral and one or more uses must be developed to sustain production. The name "olivine" is a generic term used to indicate a group of orthosilicate minerals in a solid solution series, with forsterite (Mg2SiO4) and fayalite (Fe2SiO4) as endpoints. Since neither is found alone in nature, the mineral is always a combination of the two. The commercial deposits are high in magnesium and on the high end of the melting scale in the series. The name comes from the olive-green color.

Jan 1, 1992

By H. S. Soto

The exact reasons that explain the low recoveries of coarse particles in conventional flotation machines are not clear. Being a concern for only a couple of mineral industries comparatively very few studies have been devoted to the problem of coarse particle flotation. Coarse particles flotation is particularly important in potash and phosphate beneficiation. Potash concentrates with particles larger than 1-2 mm do not require additional compaction or recrystallization and receive a premium price. However, recovery of this size particle in conventional flotation cells is very low, and therefore, the coarse floation tailings have to be reground and refloated to produce, at a higher cost, a less desirable concentrate. In phosphate beneficiation deslimed coarse ore (nominally l4x35 or l6x35 mesh) is normally treated separatedly from the finer (35x150 mesh) ore. Concentration by conventional froth flotation alone yields very low recoveries, and therefore, additional processes such as agglomerate flotation in tables spirals and belt conveyors have to be used ( Moudgil and Barnett 1979). Fatty acids and fuel oil used in phosphate flotation have a moderate level of selectivity but considerable amounts of sand report to the froth product, thus concentrates have to be further upgraded by a double flotation process. Concentrates from the anionic circuit are scrubbed in an acidic media to desorb the collectors and then refloated in a cationic circuit to eliminate the fine silica (Lawver et.al. 1978). In this paper the reasons that explain the low recovery of coarse particles in conventional flotation are discussed. A flotation column modified according to the main conclusions of this discussion is tested with two coarse phosphate samples.

Jan 1, 1989

By A. Pinches, R. Winby, P. J. van Staden, M. K. Rhodes, P. C. Miller

This paper is a progress report on the commercialization of using bioleaching for base-metal concentrates. The paper focuses on bioleach processes for recovering copper from chalcopyrite and nickel/cobalt from pentlandite/pyrrhotite. Data is discussed from pilot-plant trials in which an overall recovery >95% was obtained for the bioleaching of copper from chalcopyrite. The pilot plant was operated in closed circuit with solvent extraction and electrowinning circuits for final metal recovery. For the bioleaching of nickel and cobalt from pentlandite/pyrrhotite, an overall recovery of 97% was achieved. Precipitation routines were used to produce a final nickel/cobalt product. The pilot plants were capable of treating a few kilograms of concentrate per day. Prominent features in the design of a 1-t/day (1.1-stpd) copper-bioleach demonstration plant for the treatment of chalcopyrite concentrate are discussed. The plant, which is now under design, will be constructed and operated based on the results obtained from the laboratory pilot-plant campaigns. Issues of scale-up for the demonstration plant, together with integration into upstream and downstream processing, are also addressed. Independently derived capital and operating costs are presented for a possible commercial plant. These cost studies indicate the principle economic issues in considering the application of bioleaching to the extraction of base metals. The benefits of bioleaching complex concentrates that are not amenable to physical beneficiation and economic treatment by conventional smelting are highlighted. Issues, such as the environmental aspects, that illustrate the benefits of bioleach technology are given.

Jan 1, 2000

By Richard J. Leary

At the 1976 Annual Meeting of AIDE, Alan Merson reminded his audience that economic' success comes to those who understand things as they are, rather than as they have been or what ideology says they should be (1). He went on to say that, measured by this standard, the mining industry is in trouble. The mining firms had recognized long ago the importance of effective lobbying in Washington and the state capitals. But, he pointed out, those methods are nearly worthless anymore in coping with many land use problems because the critical decisions are likely to be made at the local level. There the tactics are far different as are the relations of the decisionmakers to the parties before then. Furthermore, in his estimation the trend is to leave land use regulation largely to the local level of government. All who are concerned for access to land for mineral development will be benefited by reading Professor Merson's paper lie is speaking effectively about the context of decisionmaking for specific cases, the shape of things in the here and now. There is, however, a longer-tern set of considerations that if pursued will be likely to foster the creation of public support for mining developments. At that sane meeting I spoke on two foundations of the long-term relationships: namely, the growth in requirements for minerals implied by projections of increasing consumption; and a rationale for fostering mineral exploration and development. I mentioned in passing the social decisionmaking process for public uses of land (2). This paper is intended as a complement. The growth of requirements for Minerals and the rationale for development based on the Entropy Law will be only mentioned. The main concern will be on the process of social decisionmaking in the context of access to land for mineral development.

Jan 1, 1976

By James R. Miller

Recent experience over extensive areas of the Basin and Range Province has demonstrated the importance of the basin's (valley's) geology and geomorphology in locating large quantities of good-quality aggregate. First, a geologic map depicting basic geomorphic-geologic units in a valley is made in the office from aerial photography. Next, derivative maps are made from geologic maps and field-derived information such as parent rock type, source area and depositional environment, relationship to adjacent deposits, and Quaternary geologic history. Studying the derivative maps leads to selection of test sites for potential deposits of high-quality aggregates. Subsequent field studies provide more detailed information about geologic processes and samples for laboratory testing. Combining all information allows the characterization of aggregate potential of very large areas. Favorable areas can be further tested. This phased approach has proven to be cost effective. The methodology used in mapping and characterizing basinfill deposits is applicable over much of the western United States. Map units were developed by focusing on the predominate geomorphic process, grain size, cementation, and relative age. The resulting functional map units are of use to engineers and planners. This study led to many conclusions, including the fact that the best quality basinfill aggregates are found in selected alluvial fan deposits and Pleistocene lakeshore deposits. The best quality aggregates are derived from Paleozoic carbonate and quartzitic parent materials that can also provide high-quality crushed-rock aggregates.

Jan 1, 1987

By G. Schmelzer

The disposal and reintroduction into recycling of residues produced by today's industrial society is not only a problem of much public debate in the countries concerned but also an increasingly prominent topic in science and research. In the treatment of most types of waste, ecological as well as economic considerations are important factors. In view of this, not only will future expenditures for treatment and processing become more significant but also, on the other hand, the savings and profits resulting from recycling. The situation described above reflects the inherent problems in the treatment of solid residues produced by waste incineration plants. The incineration of municipal waste produced approx. 2.7 - 2.8 million tonnes of solid residues in 1993 in the Federal Republic of Germany, which in part included still considerable amounts of organic and inorganic pollutants that could potentially be released into the environment. The most significant of these in terms of volume is incinerator ash at approx. 2.4 million tonnes. Through the use of innovative processing techniques, attempts are being made to convert the residues into a form that remains environmentally neutral over the longest period of time possible. One such group of techniques includes smelting technologies. After it has undergone specialised treatment, mineral incinerator ash is converted into environmentally neutral and reusable glass (vitrification) since, besides a reduction in the volume of the residues by approx. 90%, the main goal is a complete immobilisation and destruction of inorganic and organic pollutants respectively. These glasses, after they have been reshaped, are resold as commercial products such as damming or form glass.

Jan 1, 1995

By M. G. Skowroski, G. G. Eichholz, J. P. Ambrose

Introduction It has long been known that there are extensive deposits of phosphate-bearing deposits in the Coastal Plain of Georgia in many locations that are similar to those being mined commercially in central Florida. A major drilling program was conducted in 1966-67 by the Georgia Geological Survey (GGS). The economic potential of some of the material uncovered was evaluated at that time by a team at Georgia Institute of Technology led by Dr. J.E. Husted. There were some promising results. Since then, there has been little commercial interest in pursuing this matter, though the potential for development remains. In the long term, Georgia's phosphorite deposits could be a major source of income to the state if they were commercially processed. Phosphorite deposits contain significant levels of uranium and thorium. Uranium concentrations in Florida phosphate aggregates have been found to be 120 to 140 ppm. The presence of high concentrations of uranium means that there is a small but finite concentration of radium, which subsequently leads to radon gas emanation. It is the radon emanation and its progeny that may pose the largest health problem in many types of mining. Surface mining operations can possibly elevate the radon and radon daughter concentration in the vicinity. There is always some public concern whether any increase in the radon concentration in the atmosphere by mining (surface mining in the phosphorite case) could elevate the risk of cancer in the nearby population. At the present time, a great deal of attention has been devoted to the possible health effects of radon and its decay products in the inhaled air in mines and inside buildings built on mill tailings or uranium-bearing rock (Gesell and Lowder, 1980). Several evaluations have been published on the potential health effects of the Florida phosphate operations (Guimond and Windham, 1975; Roessler et al., 1980; Travis et al., 1979) and for buildings incorporating phosphate slag aggregates (Kahn, Eichholz, and Clarke, 1983; Roessler, Roessler, and Bolch, 1983). They all indicate that such potential effects are small, but tangible, compared with other radiation effects, for instance in the nuclear industry (Cohen, 1981). In view of the current concern, especially by the US Environmental Protection Agency (EPA), with the radiological consequences of large-scale mining of uranium-bearing phosphate rock (Guimond and Windham, 1975), it was decided to assess the potential radiological consequences if the Georgia deposits were developed. This paper presents an attempt to estimate the magnitude of any radon-based health effects that might arise from future mining operations in selected areas of the Georgia coastal region. To do this, a calculational model was developed that took into account the mining operations themselves, the atmospheric dispersion of the radon released, and the radon daughter concentrations in nearby towns. The model was applied to both extremes. The first application was a hypothetical mining operation in Echols County. Echols County is very sparsely populated and, unless living very close to the site, a person would probably experience little radiation exposure, if any. The model tries to prove this point. The second application was at a site near Savannah, Georgia. Both sites contain economically feasible phosphorite deposits and were not entirely hypothetical in that sense. Site selection In the course of the South Georgia Minerals Program (Furcron, 1967), an extensive series of drill core samples had been collected from various mineral occurrences in the coastal plain. It was found that the cores from the previous drilling program (Furcron, 1967), though carefully preserved, were not readily accessible. But the GGS reports did contain gamma logs of all the holes surveyed. With the cooperation of Dr. Neal Shapiro of the Survey, some core samples were selected and assayed, and used to calibrate the gamma log data. Samples from locations known to have detectable radioactivity were screened and counted. Their measured uranium content was used to calibrate the gamma log profiles for those same holes as obtained by the GGS. On this basis, two of the higher-level sites were selected and the calibration was used to obtain integrated uranium concentrations over the length of the borehole. It is customary to describe radon and radon-daughter concentrations in "working levels" (WL), where one WL represents a concentration of radon daughters capable of releasing 130 000 MeV of alpha particles, equivalent to 100 pCi of radon in equilibrium with its daughters per liter of air. A representative concentration is 0.15 WL, below which radon levels are widely considered to be negligible. For the mine sites selected, the surface area and rock volume were determined to estimate their radon content. Working-level values were then estimated for the assumed radon release from the crushed ore and the exposed surfaces of the mine pit. According to Kisielewski (1980), 93.4% of all radon released from open-pit operations is released from the ore zone; thus, the calculations assumed that those surface areas were the main sources.

Jan 1, 1987

By Lawrence S. O’Rourke

Pricing for tantalum raw materials experienced explosive increases in the period 1978-1979, and-similar declines over 1980-1982. The causes for this are examined. Negative effects on the industry are highlighted. Analysis is provided of subsequent structural changes within the industry which minimize probability of future pricing excursions. Data on markets, sources of material, and outlines of concentration and extractive processes are reviewed. The conclusion is reached that expanded sources, future flat demand, and a broader international base of industry participants are principal forces in this restructure. Flat demand is reviewed as a function of increasing application of tantalum, but in more cost effective forms. This is driven by technical advance, notably in electronics applications.

Jan 1, 1986