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By W. C. Zhu, C. H. Wei, L. L. Niu

With an increase of mining depth, a series of mining-induced hazards such as rockburst, coal and gas outburst, roof collapse, and water burst are getting more serious and more frequent. The intrinsic mechanism responsible for the occurrence of mining-induced hazards is the damage and unstable failure of rockmass or coal seam. The most distinct difference between deep and shallow levels is the so-called three ‘high’ (H3) conditions, i.e. high geo-stress, high fluid pressure and high geo-temperature. Therefore, the response of rock or coal to the deep mining operation is a phenomenon involving thermal (T), hydraulic (H), and mechanical (M) processes. Most importantly, mining excavation may vary the rock stress condition greatly, which may be a key factor to trigger the mining-induced hazards such as rockburst. In this regard, it is of great significance to clarify the damage and failure mechanism of rock and coal under coupled THM conditions, in order to clarify the rock failure mechanism responsible for the occurrence of mining-induced hazards. Thereafter, the mining-induced hazards cannot be predicted with confidence by considering each process independently. Of course, the requirement to include coupling of these processes depends on the specifics of the mining-induced hazards under consideration. For example, the water inrush is considered as a coupled hydro-mechanical (HM) process, in which the unstable failure of rockmass occurs under the combined contribution of geo-stress and water pressure. As for the coal mining at depth, in addition to high geo-stress and gas pressure in coal seam, the high geo-thermal condition that may greatly change the adsorption / desorption of gas and gas flow should be taken into account. Firstly, a general-purpose mathematical model for rock damage and failure process under coupled THM conditions is formulated based on damage mechanics principle, and it is solved by finite element method (FEM). In this model, the deformation and damage of rock, fluid flow and thermal transfer in rock would interact with each other, one process affects and initiation and progress of another. Then, the model is used to predict the mining-induced water outburst, where it is simulated as coupled hydro-mechanical (HM) problems. Based on the numerical simulation, the dimension of water-proof pillar is designed. Finally, the gas drainage from deep coal seam is numerically evaluated, where the coupled coal-gas interaction considering the effect of gas adsorption/desorption, gas flow in coal seam and geo-stress and geotemperature, is comprehensively taken into account. The proposed model could be used for clarifying the mechanism of mining-induced hazards in deep-level mining.

Jan 1, 2015

By Randall C. Divito, Craig R. Eckdahl, Bruce D. Wagener, Joseph Klejwa

The existing Central City Tunnel was built primarily in the 1930s with a small portion as old as the 1880s. It conveys stormwater in downtown Minneapolis. It is a 4,400-ft long tunnel located 80 feet underground. The Central City Tunnel has experienced surcharging and surface overflows during heavy rainfall events. This paper presents the details of tunnel and shaft design for the new Central City Parallel Tunnel to mitigate the overflows. The design considered hydraulics and geotechnical engineering for the structural geologic conditions including the weak Saint Peter Sandstone and overlying strong Platteville Limestone. Ground conditions resulted in tunnel designs including large flat-back box tunnels and unique cathedral-shaped tunnel sections.

Jun 13, 2023

By George A. Morgan

The 53 countries that constituted Africa in 1990 accounted for a significant portion of total world output of a number of mineral commodities. Among the most significant to be produced in Africa were andalusite, antimony, asbestos, bauxite, chromite, coal, cobalt, copper, diamond, fluorspar, gold, lithium minerals, manganese, phosphate, platinum-group metals, the titanium minerals-ilmenite and rutile, vanadium, vermiculite, uranium, and zircon. Several of these, chromite, cobalt, diamond, and manganese, were not produced in the United States. Despite the underdevelopment of much of Africa, mineral raw materials playa very important part in the national economies of many of its countries. In many cases, the production of minerals is the dominant economic activity in the country, often having the largest and most sophisticated work force. In several countries, one or two mineral commodities are dominant in a weakly diversified economy. Among these are petroleum and diamonds in Angola, petroleum in the Congo, gold in Ghana, bauxite in Guinea, uranium in Niger, phosphate in Senegal and Togo, and copper and cobalt in Zaire and Zambia.

Jan 1, 1992

By Antônio Donizetti Giuliano, Fernando Codelo Nascimento, Viviane Tavares de Moraes, Cilene Cláudia Diógenes, Erivan Cardoso Rocha

Nos lagos ornamentais geralmente tem-se a dificuldade em controlar o crescimento de algas, pois existe a incidência de luz e a disponibilidade de nutrientes provenientes da ração fornecida aos peixes, os quais propiciam o crescimento e o desenvolvimento das algas. Uma alternativa de tratamento é o processo oxidativo avançado (POA) existente, a ozonização, com o objetivo de propor um processo de tratamento de água para controlar a proliferação de algas em um lago ornamental sem prejuízos à comunidade aquática, vivente no lago. A metodologia utilizada foi o estudo de caso do lago que envolveu as seguintes etapas: construção do lago ornamental; definição do sistema de tratamento; monitoramento de parâmetros como: a demanda bioquímica de oxigênio (DBO), a cor, o pH, a temperatura, a amônia (NH3) e o oxigênio dissolvido (OD) do lago durante três meses; aplicação do ozônio para controlar a proliferação de algas e monitoramento dos mesmos parâmetros durante o processo de ozonização. Dentre os principais resultados encontrados citam-se: a redução de 170 unidades de Cobalto platina (PCU) da cor esverdeada da água do lago; descimento de 60% da DBO; aumento de 16% da concentração de OD e a redução de 80 a 100% da concentração de NH3, eliminando assim odores desagradáveis e melhorando a qualidade da água. Por meio dos resultados obtidos conclui-se a aplicação de ozônio em lagos ornamentais é uma alternativa para a manutenção aquática e melhoria da qualidade da água..

Oct 2, 2019

By J. Y. Hwang

The relationship between coal characterization and physical cleaning has not been well understood due to the complex nature of coal. Therefore, it is difficult to apply the results of coal characterization to predict and evaluate the performance of a physical separation (e.g. flotation). Eight U.S. bituminous coals were analyzed and studied petrographically in conjunction with washability and flotation tests. The results show that grindability correlates to ash and fixed carbon contents; liberation determined directly by petrographic techniques is close to liberation determined indirectly by washability; and an ideal separation efficiency can be determined by measuring the inertinite content and the washability separation efficiency using a heavy liquid with a density of 1.4. The ideal separation efficiency was attained for most coals by packed column flotation. The ideal separation efficiency can be used for comparing process technologies and process parameters.

Jan 1, 1988

By Q. X. Yun

This paper provides a new approach to optimize the production planning in underground mines by means of evolutionary algorithms. Firstly, genetic algorithm is used to reach the global optimization in planning. Then, evolutionary programming is employed to obtain the partial optimization for each year. The application proves that the new approach is reasonable and useful. Keywords: Evolutionary algorithm, Genetic algorithm, Evolutionary programming, Optimization, Mining engineering.

Jan 1, 2003

By Luis W. Pommier

The developed processes, the subject of this paper, extract the hydrocarbons, halogenated organic compounds and metal contaminants from hazardous soils, rendering them non-hazardous and ready to be placed back on the ground. The processes first segregate a non-contaminated fraction from the contaminated soil. This initial task is performed using available minerals processing technology: sizing, gravity separation, magnetic separation, froth flotation, etc. The remaining contaminated fraction, is submitted to two leaching operations for the removal of organic and metal contaminants, whenever both are present or to a single leaching operation if only one type of contaminant is present. The decontaminated soil fraction is mixed with the non-contaminated fraction and is placed back on the ground. The leaching liquors, used at neutral pH, are non- hazardous. After decontamination the liquids are processed to extract the contaminants, now valuable materials, for commercialization. Organic contaminants are removed by distillation of the solvents. The metal contaminants are precipitated in their oxide form. In both cases the regenerated solvents are recycled. The decontamination processes are economically competitive with transportation and disposal of the soils to permitted facilities for hazardous materials, and most importantly the developed processes remove the liabilities from the Responsible Parties. The law establishes that these liabilities do not disappear with either fixation nor with transportation and disposal since the environmental liabilities are of the ? cradle to grave? type.

Jan 1, 1994

CONTENTS PAGE BAIN, EDGAR C.-The Nature of Martensite. Discussed by Ancel St. John, Henry S. Rawdon, Jerome Alexander, Howard Scott 1 FEILD, ALEXANDER L.-Effect of Zirconium on Hot-rolling Properties of High-sulfur Steels and the Occurrence of Zirconium Sulfide. Discussed by Beram D. Saklatwalla, Bradley. Stoughton, Andrew M'Cance, George F. Comstock, Alexander L. Feild 12 SAUVEUR, ALBERT and KRIVOBOK, V. N.-Use of Sodium Picrate in Revealing Dendritic Segregation in Iron Alloys. Discussed by George F. Comstock, John H. Hall 17 KINNEY, C. L., JR.-Economic Significance of Metalloids in Basic Pig Iron in Basil Open-hearth Practice. Discussed by V. J. Pazzetti, George B. Waterhouse, C. L. Kinney, Jr 19 NEAD, J. H.-Absorption of Sulfur from Producer Gas in Open-hearth Furnaces.. Discussed by George B. Waterhouse, C. L. Kinney, Jr 26 PRIESTLY, WILLIAM J.-Effect on Steel of Variations in Rate of Cooling in Ingot Molds. Discussed by Emil Gathmann, Paul E. McKinney, George A. Dornin. 27 MONYPENNY, JOHN H. G.-Stainless Steel, with Particular Reference to the Milder Varieties (Stainless Iron). Discussed by P. A. E.-Armstrong, Beram D. Saklatwalla 33 ROYSTER, P. H., and JOSEPH, T. L.-Effect of Coke Combustibility on Stock Descent in Blast Furnaces. Discussed by Ralph H. Sweetser,. Richard Franchot, Sidney Cornell, T. L. Joseph 41 DAVIS, F. W., and BOLE, G. A.-Observations on Requirements of Refractories for Open Hearth. Discussed by C. L. Kinney, Jr., L. F. Reinartz, P. E. McKinney 46

Jan 5, 1924

By R. A. Nadler and

Specimens of Ti-155A (Ti-5Al-1.3Fe-1.3Cr-1.2Mo), Ti-6Al-4V and Ti-4Al-3Mo-1V were hydrogenated, aged to high strength levels, and subjected to notched stress-rupture tests and tensile tests at two strain rates. Both Ti-6Al-4V and Ti-155A were relatively unaffected by hydrogen in amounts exceeding those found in commercially -produced material. Inconsistencies in the data and a relatively low initial level of ductility prevented an accurate determination of the hydrogen tolerance for aged Ti-4Al-3Mo-1V, but there was no evidence that this alloy was any more susceptible to hydrogen embrittlement than Ti-155A and Ti-6A1-4V. THE metallurgical literature has been considerably enriched in the past five years by the publication of the results of many investigations which were concerned with the effects of hydrogen on titanium and its alloys. Although it is not the authors' intention to provide a complete literature survey of this vast field, it is worthwhile to summarize briefly some of the important factors which influence the embrittling phenomenon in a - B alloys. Some of the influencing factors are those of strain rate, temperature, and composition. Hydrogen embrittlement in a - B titanium alloys is now believed to be a strain-induced phenomenon, and whether or not embrittlement occurs at high hydrogen levels depends largely upon whether sufficient time is available for hydride precipitation. This condition is fulfilled by tensile testing at very slow strain rates or by rupture testing smooth or, preferably, notched specimens over relatively long periods. Conveniently, maximum embrittlement occurs at or near room temperature. The presence B - stabilizing elements, in amounts sufficiently small to prevent an all -B or nearly all -P condition, promotes hydrogen embrittlement and this tendency is believed to be related to the amount of a - B interfacial area present. Aluminum, by increasing the solubility of hydrogen in A titanium, greatly reduces the danger of hydrogen embrittlement, while oxygen has been shown to have detrimental effects.' The preceding discussion is based on experimental work performed on annealed a - P alloys. This early work has shown that annealed Ti-6A1-4V and Ti-155A are relatively insensitive to the embrittling effects of hydrogen.' Although no work has been reported on annealed Ti-4A1-3Mo-lV, the alloy would be expected to exhibit somewhat the same insensitiv-ity as Ti-155A. In sharp contrast to the voluminous literature on annealed titanium alloys is the paucity of reported investigations on materials receiving commercial heat-treatment cycles. To date, the most notable contributions in this field have arisen from two separate investigations on Ti-3Mn-1Fe-1Cr-1V-lMo, the so-called 3Mn comple~. These investigations

Jan 1, 1961

By A. Supomo, H. Resendiz, C. Burbidge

"Freeport-McMoRan Inc. (FMI) commissioned the expansion of the Morenci Metcalf concentrator in 2014. The concentrator included many design and equipment innovations, including the first-of-its-kind Metso Hydraulic Roll Crusher (HRC), variable speed ball mills and variable speed crushers. In addition to the innovative design, FMI commissioned the Metso APC team to design a realistic process simulator and the plant APC. The process simulator was utilized to train operators before commissioning, which led to a smoother plant start up. The plant APC utilized the concept of dynamic constraint control, which controls the feed to the primary ball mills by “pulling” the tons from crushed rock storage bins, which then automatically are filled by the upstream HRC and secondary crushing circuits. The primary ball-mill control also adjusts the water addition to the cyclone clusters to avoid overload and achieve sufficient grind size. The constraints include in-circuit constraints for feeder capacity, screen-deck capacity, ball mill power, cyclone mass flow, pump capacity and pump motor capacity. The APC system was implemented shortly after the start of commissioning and immediately demonstrated increased throughput and an ability to highlight and quantify process constraints and bottlenecks. The following paper outlines the control strategy, discusses system implementation, results and challenges.INTRODUCTION The FMI Metcalf Concentrator is located in Morenci Arizona on the site of the old original Concentrator. The new Metcalf concentrator started operation in May of 2014. This plant was designed for an average of 63,500 tpd (70,000 stpd), increasing the total Morenci concentrator complex production to a nominal 113,400 tpd (125,000 stpd). The process flow diagram is shown below in Figure 1.The process consists of primary crushing feeding a coarse ore stockpile followed by secondary crushing operating in closed circuit with vibrating screen decks. The screen undersize feeds the first of its kind Metso hydraulic roll crusher (HRC) operating in a closed circuit with vibrating screens. The primary crusher is a Metso 60x110 gyratory crusher. Secondary crushers are Metso MP1250 Crushers with variable speed drives. Secondary crusher discharge is recycled to the dry screen feed bin and screened with oversize returning to secondary crushing and undersize feeding the Metso HRC3000. The product from the 3.0 meter X 2.0 meter roll crusher is wet screened with the undersize feeding the grinding circuit, which is comprised of two each 24-foot diameter by 40- foot-long variable speed ball mills running in parallel with each in closed circuit with a cyclone bank of 12 cyclones. The wet screen oversize is recycled to the HRC feed bin."

Jan 1, 2019

By D. M. Doyle

"A study of the various components contributing to energy costs and their relationships to generally trended operating data, such as tonnage, operating costs, etc. over progressively shorter time periods provides information for an energy audit. A study of annual data gives some insight into the importance of various energy components. As the time frame of the study 11rogresses through monthly, daily and finally, into quarter hourly data, the variations become more evident and most important, strategies develop to minimize energy costs. The results of an audit conducted during the summer of 1978 at Wesfrob Mines are reported to illustrate this important phase, prerequisite to a meaningful energy cost avoidance program.The balance of the paper deals with the energy conservation program at Falconbridge Nickel Mines Sudbury Operations, the material and control equipment, the commitment, the new energy accounting practices and lastly, the policies. Examples of successful energy conservation endeavors include automatic peal electrical load control, waste heat recovery from mine air and compressor cooling water, energy reductions resulting from lower building temperatures and curtailmen: of idling loads. The use of pulse meters to measure the flow of gas, steam, compressed air and electrical energy, with their signals interfaced to process computers, allows monthly, daily and if necessary, immediate reporting of energy and energy per unit of production information. The program so reported at Falconbridge’s Sudbury Operations is credited with an annual cost avoidance of .9 million dollars in a 14.0 million dollar annual energy account."

Jan 1, 1979

By James A. Voigt

The efficient separation of metal species from aqueous streams by precipitation techniques requires 'a fundamental understanding of the various processes that occur during precipitation. These processes include particle nucleation, particle growth by solute deposition, agglomerate formation, and agglomerate break-up. The application of the population balance approach has been used to develop a kinetic model that accounts for these competing kinetic processes. The usefulness of the model is illustrated through its application to the precipitation of yttrium hydroxynitrate, YHN. The kinetic parameters calculated from the model equations and system-specific solution chemistry are used to describe several aspects of the effect of pH on the precipitation of the YHN. Implications with respect to the simultaneous precipitation of more than one cation type are also discussed through use of example systems: The effects of solution chemistry, precipitator design, and solvent choice are considered.

Jan 1, 1996

By Fred C. Bond and

This paper is a continuation of two earlier papers,12 and presents new data on the grindability of various ores and other materials—the results of several years of intermittent research work on the nature of grinding and interpretation of test results. It is divided into five parts: 1. The tabulated results of several hundred grindability tests on a wide variety of ores. 2. A method of correcting screen analyses and calculating from them the surface and other properties. 3. A description of a new method of measuring the "surface energy" of an ore by pendulum impact tests. 4. Test results. 5. A general discussion of the test results and their application to grinding problems. 1. GRindability of Various Ores This part is a continuation of the paper listed as reference No. 1. The method of testing is described in detail in that paper. The sample to be tested is crushed to all through 6 mesh in rolls set at 1/16-in. opening in closed circuit with a screen. Of this sample 700 C.C. is ground dry in a laboratory ball mill under constant conditions of mill speed and ball charge in closed circuit with a screen of the desired size at 250 per cent circulating load. The mill is cylindrical, 12 by 12 in., and rotates at 70 r.p.m. It contains a charge of 285 iron balls weighing 20,125 grams and ranging from 1½ to ¾ in. in diameter. Each test is continued for a sufficient number of periods to establish equilibrium at 250 per cent circulating load, or until the composition of the circulating load is constant for successive periods. Tests are conducted at the mesh size to which the ore is to be ground in practice, and the results are expressed as the net production in grams of screen undersize per revolution of the mill. This is designated as the

Jan 1, 1939

By Fred C. Bond and

This paper is a continuation of two earlier papers,12 and presents new data on the grindability of various ores and other materials—the results of several years of intermittent research work on the nature of grinding and interpretation of test results. It is divided into five parts: 1. The tabulated results of several hundred grindability tests on a wide variety of ores. 2. A method of correcting screen analyses and calculating from them the surface and other properties. 3. A description of a new method of measuring the "surface energy" of an ore by pendulum impact tests. 4. Test results. 5. A general discussion of the test results and their application to grinding problems. 1. GRindability of Various Ores This part is a continuation of the paper listed as reference No. 1. The method of testing is described in detail in that paper. The sample to be tested is crushed to all through 6 mesh in rolls set at 1/16-in. opening in closed circuit with a screen. Of this sample 700 C.C. is ground dry in a laboratory ball mill under constant conditions of mill speed and ball charge in closed circuit with a screen of the desired size at 250 per cent circulating load. The mill is cylindrical, 12 by 12 in., and rotates at 70 r.p.m. It contains a charge of 285 iron balls weighing 20,125 grams and ranging from 1½ to ¾ in. in diameter. Each test is continued for a sufficient number of periods to establish equilibrium at 250 per cent circulating load, or until the composition of the circulating load is constant for successive periods. Tests are conducted at the mesh size to which the ore is to be ground in practice, and the results are expressed as the net production in grams of screen undersize per revolution of the mill. This is designated as the

Jan 1, 1939

By James P. May

Operating mine haulage trucks near the crest of stockpiles and waste dumps is a potentially hazardous practice often resulting in a localized slope failure and a dump point accident. The U.S. Bureau of Mines has developed a computer code (INSLOPE3) based on the kinematic method of limit analysis which determines an admissible truck weight (upper bound value) for varying distances from the slope edge. The program considers the material strength parameters, slope geometry, and inertial forces induced by vehicle braking. The program can be utilized to assist in the determination of safe operating distances for a haulage truck from a slope edge, the development of safe vehicle operating procedures, and the admissible weight for a static concentrated loading near the crest of an otherwise stable slope. This report provides information on the use of INSLOPE3, interpretation of the results for mining applications, and instructions for acquiring a copy of the software.

Jan 1, 1991

Feasibility is a value improvement process for projects. At any stage in project development, a feasibility study can be undertaken, but although the scope generally remains unchanged the extent of detail and level of accuracy usually increases with time. The main scope elements are a business definition, project description and an execution plan. The studies are designed to assess the potential of the project and to secure funding for on-going examination. Invariably, the investigations loop back to earlier stages to establish more appropriate development criteria but a critical stage is reached when a project construction decision is requested. This feasibility study requires very detailed presentation and analysis to a higher accuracy for the owner(s) and their potential lender(s).

Jan 1, 1997

By S. K. Kawatra, J. E. D. McDonald, S. C. Roache

"The formation of geopolymers from mine tailings using cold-bonding processes is known to be possible. Numerous cold-bonding methods exist, but the hydrothermal processes involving high temperatures and pressures in the presence of steam have been found to be the most ideal. This paper presents the results of successful preliminary studies to apply hydrothermal bonding processes to mine tailings agglomerates. Particle-size analysis revealed the particle size of the tailings waste to be 80 percent passing at 35 µm. The compressive strengths of the tailings pellets were shown to increase with time in the curing vessel, closely approaching the 400 lbf of standard iron ore concentrate pellets. These strengths are sufficient to allow use of the tailings pellets as aggregate materials for asphalt and cement. Additional applications may be possible, including reprocessing to extract more valuable materials and usage as agglomerated road-bed materials, backfills for building foundations, and replacements for sand and lime in cement.IntroductionMine tailings are a waste byproduct of ore concentration and are available in large quantities across the world. Despite their abundance, they have received little attention or consideration for beneficial use. One reason is that the chemical nature of the material is not well known. Another factor that has hindered direct usage is the fine particle size. This raises the questions: what is the composition of the tailings, and how can such fine solids be beneficially used? Because the mining industry produces concentrates, the tailings may be treated as concentrates and processed in the same fashion, but it would be inefficient to consider full sintering or induration conditions for materials that have little ore content. To achieve sustainable operation, the development of technologies to use these tailings is necessary. Mine tailings should not be considered waste, and an “out of sight, out of mind” mentality does not represent a sustainable solution for the future.One iron ore mine in Michigan is estimated to have accumulated more than 400 million metric tons of tailings during its last 30 years of operation, with an additional 180 million metric tons accumulated before the ore body is depleted. These mine tailings currently have no practical use, largely due to a scarcity of knowledge of their true physiochemical nature. It is thought that lack of quality control of the waste material prevents its use, but variability in the unprocessed ore prevents a consistent waste stream composition. The fact that the tailings are available in such great quantities makes them an extremely attractive resource. However, developing a sustainable, low-cost means of repurposing the mine tailings waste as a construction material may only be completed once the tailings are physically and chemically understood. Due to the high silica content of the material studied, cold bonding was determined to be the most viable method for processing the tailings into a usable product."

Jan 1, 2016

By J. B. Zadra, S. M. Shelton, R. B. Fisher, M. M. Fine

"INTRODUCTION An extensive test program is in progress by the Bureau of Mines to determine ways and means of recovering ferromanganese ore 5/ from the widespread domestic manganese and manganiferous iron deposits.Samples were received from the Stance property in southwestern Virginia, 12 miles northwest of Stoney Gap, in Bland County.The Stange mine is situated on the crest of Flat Top Mountain and is developed by open-cuts extending over several acres. The manganese deposit occurs in the Oriskany sandstone largely as a replacement of the sandstone, to some extent as breccia filling in the crusted parts of the sandstone, and as veins along joints, and bedding planes.The mine was first worked in 1917 and was operated during the war years. A long period of idleness was followed by intermittent operations in recent years. A small log-washing plant, consisting of a 20-foot log washer, was operated 1-1/4 miles northwest of the mine. The log-washer concentrates were crushed to minus- 1/2 inch and then washed in a second log washer to remove as much of the siliceous sandstone as possible. According to a communication from the operator, the double-washed concentrates were jigged and the jig concentrates marketed without further beneficiation."

Apr 1, 1942

By Earl Rau

Introduction Will cogeneration be a major power source in the future? The location of electric power generating plants has changed. In 1900, more than 50% of electricity was generated by industrial plants. Since then, industrial plant generation of electricity greatly decreased to 17% in 1950 and to only 3% in 1980. Changing economics in electric power generating costs, though, may allow cogeneration to reverse this trend. Cogeneration has been defined as the simultaneous production of electric (mechanical) and thermal energy from a single energy source. Some applications are considered to be byproduct generation of electricity from industrial, thermal operations. Cogeneration is not new to the mining and minerals industry. Smelters and steel mills have used waste heat to generate electricity. Public Utilities Regulatory Policies Act of 1978 The potential for increased industrial cogeneration of electricity is related to the March 9, 1978 enactment of the Public Utility Regulatory Policies Act (PURPA). The US Supreme Court ruled that PURPA is constitutional. The court upheld requirements that utilities interconnect to cogenerators. It also ruled that 100% of avoided costs be used as the guideline for electricity sales by a qualifying facility (QF) to a utility. The state of New York established a floor price $0.06/kWh for electricity sales from a QF to a utility. It is obvious, then, that a cogenerator must first establish price and then become a qualifying facility in order to sell electricity to a utility. Proposed cogeneration plants The estimated industrial cogeneration potential for the years 1986 to 2000 is 9500 to 25,000 MW. Industries represented in this cogeneration estimate are pulp and paper, petroleum, chemicals, food, textiles, rubber, plastics, steel, lumber and wood, cement, glass, metal fabrication, and industrial parks. A cogeneration plant has been proposed for the Union Carbide chemical plant in Institute, WV. A steam turbine/generator would be installed to replace the pressure-reducing valve in the 2.7 MPa (400 psig) header. Scott Paper Co., Mobile, AL, proposed a cogeneration plant using a coal- and wood-fired boiler and a turbine/generator to produce process steam and electric power. A cogeneration system has been proposed for a large oil refining plant. A pulverized coal boiler would produce high-pressure steam to operate a turbine, generator. The exhaust steam from the turbine will go to the process and an existing turbine. Kansas City, MO's Armour meat-processing plant has proposed a cogeneration plant. This proposal is to use a natural gas or oil-fired, gas-driven turbine and a generator. The waste heat from the gas turbine would go to a heat recovery boiler for use as process heat. Dade County, FL is implementing a central energy system to supply electricity, air conditioning, and domestic hot water for five buildings in downtown Miami. The cogeneration system is to provide flexibility, to optimize fuel use efficiency while serving the variable thermal demands. Generation of electricity from municipal waste is not considered to be a cogeneration process but is covered by PURPA. Special considerations are provided for waste/electric power generation to encourage the development of these systems. ?

Jan 7, 1987

By Michael Samis

Conventional project valuation techniques, such as discounted cash flow (DCF) method, are more frequently being criticised for the manner in which they consider the interacting effects of uncertainty and project structure (including management flexibility) on project value. Modern asset pricing (MAP; often called ?real options valuation? when applied to the analysis of flexibility) is a more general valuation framework that corrects many of the shortcomings of common valuation methods. Previous mining applications of MAP have tended to treat the ore deposit as a homogenous entity. While useful for demonstration purposes, this is inadequate for practical application in industry. This paper presents a MAP valuation example that allows for the heterogeneous nature of an ore deposit. It shows that deposit structure may increase the complexity of the mine planner?s decision so that results of a standard DCF analysis, or a simple MAP analysis that ignores the details of deposit structure, are misleading. In the example, a management is considering the development of an adjacent low-grade zone while mining operations in a high-grade zone are ongoing. If the low-grade zone is developed before high-grade reserves are exhausted, the proposed development will include both low-grade zone development and a capacity expansion to handle additional low-grade reserve production. If development of these reserves is delayed until the high-grade reserves are depleted, then the low-grade reserves can be developed without a capacity expansion. A typical DCF analysis would reduce the management?s decision problem to three alternatives: 1) continue mining only in the highgrade reserves, 2) immediately develop the low-grade reserves and expand capacity, and 3) delay low-grade zone development until the high-grade reserves are exhausted. The model presented here allows the management to reconsider the development and capacity expansion decision on a discrete half-year basis. It delineates price regions, for given levels of high-grade zone reserves, in which it is optimal to develop the low-grade zone, defer low-grade zone development and abandon the mine irrevocably. The model presented here extends the ability of mine planners to describe actual project structure while using the MAP valuation framework that is already noted for its capacity to combine project uncertainty and risk insights with a dynamic project description.

May 1, 2001