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By J. M. Garcia

This paper highlights several management practices from the oil and gas industry to support the proposition that financial performance in the finite, non-renewable resource business relates more to upstream rather than downstream activities. Based on the analysis of nine oil and gas companies, this study supports a previous study involving fourteen mining companies that showed reserves growth is one of the main levers of value creation in mining. Interestingly, this study also finds that the oil and gas industry has been historically more profitable than mining. The reason, it is argued, is that oil and gas companies count on management practices that focus primarily on the upstream segments of the business, compared to the traditional downstream focus of mining. This paper delves into these ideas to conclude that what mining may need to improve its competitive advantage is a new organizational framework. Another conclusion is that the upstream management focus is vital not only for strategy formulation in the resource business, but also for policy formulation in economies based on the export of finite, non-renewable resources.

Jan 1, 2011

By A M. Sherwood

The Otago and Southland lignite deposits represent by far the largest known fossil energy resources in New Zealand. Despite their size they have remained virtually untouched since exploration in the 1970s and 1980s defined their extent. In total there is an estimated 10.9 billion tonnes of lignite in 13 defined fields in Otago and Southland. Much of the exploration work only targeted seams at shallow depth and it is highly probable that there are further resources at depth in the fields that have been explored to date.   L&M Lignite Limited (L&M) holds exploration permits over a number of lignite deposits and is currently engaged in pre-feasibility studies to investigate the potential of the lignites for gasification. L&M is focussing its studies on the Hawkdun and Ashers-Waituna deposits. Coal quality in these deposits, particularly Ashers-Waituna, is highly suitable for gasification. In total the two deposits contain 1647 Mt of potentially recoverable lignite. L&M has engaged a variety of consultants to progress this project. The Hawkdun and Ashers-Waituna deposit databases have been re-evaluated and the resources remodelled. Further drilling has been carried out and the coal quality database has been expanded. The baseline project is to develop a mine to feed a plant that will produce liquids, specifically low-sulphur diesel and naptha, using the Fischer-Tropsch process. The project anticipates a staged development of 10 000 barrel per day units, each requiring mining at the rate of 12 700 tonnes of lignite per day. The production of other products including ammonia-urea, methanol, hydrogen and electric power is also under study.

Jan 1, 2005

By M Hourn, D Turner, P Voigt, D Mallah

The GPM Gold Project is located in Armenia, and consists of an open cut mine at Zod, near the Azerbaijan border, and a CIL processing plant at Ararat near the Turkish border. Mining at Zod commenced in 1976, and focused on near surface oxide ores, which overlay deeper refractory sulphides. Historical mining has now almost depleted the oxide ores, and the sulphide content of ore delivered to the processing plant at Ararat is increasing. Gold and silver recoveries through the Ararat plant were declining steadily.GeoProMining, the owners of the project, have expanded the Ararat facility to deal with the increasing sulphide content in the ore. In 2014, GeoProMining refurbished an existing concentrator on site to recover a sulphide concentrate from the ore, and have constructed an Albion ProcessTM plant to oxidize the refractory concentrate. Glencore Technology (GT) provided the Albion ProcessTM plant as a technology package.In July 2014, the progress of the GPM Gold Project Albion ProcessTM Plant was reported (Hourn, Voigt and Turner, 2014). At the time of writing, the construction of the plant was nearly complete. This paper presents an update of project progress, covering commissioning and ramp up of the GPM Gold Project.The commissioning phase occurred over June to August 2014, which included an M3,000 IsaMillTM fine grinding plant, a 6 tph limestone milling plant, a 60 tpd vacuum pressure swing adsorption oxygen plant, a 10 m residue thickener and a 12 tph Albion ProcessTM oxidative leach plant. Since commissioning was completed, ramp up occurred over the following three months with downstream gold recoveries from cyanide leaching reaching over 98%.CITATION:Voigt, P, Hourn, M, Mallah, D and Turner, D, 2015. Commissioning and ramp-up of the Albion Process at the GPM Gold Project, in Proceedings MetPlant 2015, pp 207–219 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 7, 2015

The mining industry is generally regarded as a high risk industry, mainly because of the difficulties in estimating the tonnage and grade of mineral resources, the fluctuations in metal prices, mining problems and other problems which occur with mining in offshore and remote locations, such as appropriation or disruption to supply. As a consequence, finance providers require a high reward from mining projects. In the past two decades, the development of "mega" projects has led to the packaging of the finance becoming more sophisticated. Some would see this move as a measure of the evolution of banking rather than an intrinsic facet of mining finance itself. Project financial managers now require a thorough knowledge of all the financial tools which are available and have to be aware of the funding options so that they can put together a finance package which minimises the cost of the financing with the risk spread adequately between the partners of the financing. The different sources and types of finance for mining projects are described herein along with the factors which determine their costs. To understand the ramifications of financing mining projects, it is essential to appreciate the fundamental difference between debt and equity, which illustrates the importance of gearing. Costs of finance are determined by the interaction of supply and demand forces. Bankers and other financiers have become more adept at isolating a wide selection of risk elements and have devised a formidable range of insurance mechanisms. There is still a lot of money looking for good project risks and if a good project is properly presented and structured, financing can be obtained in today's market.

Jan 1, 1990

By T Christie

Tertiary volcanic rocks make up a significant proportion of the surficial cover rocks of New Zealand, especially in the Taupo Volcanic Zone. Industrial minerals that are associated with or derived from the volcanic rocks include: amorphous silica, allophane, bentonite, diatomite, ignimbrite building stone, illite clays, halloysite clay, obsidian, perlite, pumice, sulphur, titanomagnetite ironsand and zeolite. Of these: bentonite, ignimbrite building stone, perlite, pumice and titanomagnetite ironsand have been mined and processed for 20 to 30 years, but many of the others require further characterisation of the resource and/or development of markets.   We have compiled interim mineral deposit models for halloysite clays in rhyolite and for zeolites in altered vitric tuffs. These models include geological and mineralogical attributes, which are linked to the underlying volcanic and geothermal processes that have produced the minerals and their source volcanic rocks. Halloysite clay deposits at Matauri Bay (Northland) have formed from hydrothermal alteration and weathering of rhyolite. Clinoptilolite + mordenite zeolite deposits in the Ngakuru area (Rotorua district) have formed from hydrothermal alteration of volcanic glass in lacustrine sediments and ignimbrite. Further refinement and application of these models will result in a better understanding of the mineralogy, localisation and origin of the deposits, with consequent applications in exploration and resource assessments.

Jan 1, 2001

By Georgios Kalamaras, Chiaia Dinu, Platania Paolo, Alessio Carlo, Giampiero Cirvegna, Claudio Santucci

The Project alignment initiates north of Pinerolo, along the State Road 23[S.S. 23] that is one of the principal arteries to the northwestern Alps where a number of Olympic events for the 2006 Winter Games will be held. The 3.5 km ring road bypasses the Porte habitat by traversing twice the Chisone River. It consists of the following principal structures [Figure 1]: San Martino bridge [130 m in four bays] Prarostino viaduct [130 m in four bays] Craviale tunnel [1055 m] Turinella bridge [a 50 m long bridge that connects the two tunnels] Turina tunnel [665 m] Malanaggio viaduct [350 m in 9 bays]. The road section is 13 m wide and is made up of two 3.75 m lanes, a hard shoulder [1.50 m wide] and a 1.25 m wide curb for each lane. The Project maximum velocity is 100 km/h.

Jan 1, 2005

By Caetano Nunes da Silva

A busca por competitividade despertou na ArcelorMittal Tubarão interesse em novas possibilidades de integração de operação e manutenção nas áreas fabris, sendo retratado nesse trabalho a experiência da área de acabamento de bobinas. O trabalho enfoca: 1. a mudança cultural - que vem sendo continuamente trabalhada com as equipes e tem reforçado princípios como o senso de propriedade, autonomia e integração; 2. o incentivo ao intercâmbio entre funções - contribuindo para que as atividades da operação e manutenção fossem conhecidas por todos; 3. alterações na rotina, com a introdução de reuniões, inspeções e relatórios compartilhados - para melhor troca de informações entre as equipes de operação e manutenção; 4. mudança na localização física das equipes - com a acomodação das equipes de operação e manutenção mais próximas entre si e dos equipamentos; e por fim, 5. a implantação da manutenção autônoma - com a capacitação e realização de intervenções de manutenção pelos operadores. Com a melhoria da integração têm sido obtidos resultados expressivos de segurança, estabilidade operacional e custo.

Aug 7, 2018

By R. R. Klimpel

"SYNOPSISA discussion of the importance of flotation rate in the analysis of mineral flotation is presented. In particular, the highly interactive nature of the flotation ""system"" is emphasized where there are components of chemistry, equipment, and operating conditions simultaneously involved. It is further shown that: 1) flotation rate must be measured in order to economically optimize the performance of an industrial flotation circuit, 2) that consistent patterns exist in both flotation rate and equilibrium recovery when changing various settings of the system components, 3) that knowledge of these patterns is necessary in order to avoid making system changes that are either self-compensating or dramatically re-enforcing in some particular aspect of performance, and 4) the rate related role of the chemistry component (e.g.frothers and collectors) is often much bigger than is sometimes realized (especially in a negative sense involving overdosing of reagents). INTRODUCTIONFroth flotation is widely usedl-6 in mineral beneficiation processes as a method for separating different types of finely divided solids present in a liquid (usually aqueous) suspension. The approach is based on the contacting of solids with upward moving air bubbles in an agitated vessel where the solids are exposed to chemicals (collectors) which create a condition favoring the attachment of a certain portion of the solids to the air bubbles. This selected portion is then removed in a froth stabilized by chemicals (frothers) and subsequently recovered from the flotation vessel. Depending on the settings of the various components of the flotation ""system"" (see Figure 1) it is possible to achieve a wide range of flotation performance."

Jan 1, 1984

By D. Anderson Willis, Alan A. Campoli, Douglas Mynear, Seth Mittle, J. Steven Gardner

"The diversification of energy sources in the United States has seen some major shifts during the past decade resulting from:• A sudden abundance of low-cost natural gas becoming available through advanced horizontal drilling and hydraulic fracturing techniques.• Incentive-driven policies leading to new development in alternative energy.• The emergence of alternative energy sources proliferated as a result of state and federal level incentives and falling capital costs.Coal was once recognized as the primary low-cost fuel source for the generation of electricity in the United States for most of the last century, providing upward of 50 percent of the total generation capacity during much of that period. However, within the past decade, lower-cost natural gas has overtaken coal as the primary source of fuel used in electricity generation, and alternative sources have steadily grown to now account for approximately 10 percent of the overall mix.West Virginia and Kentucky have not experienced the full breadth of the fuel shift, and, as of 2016, still obtained approximately 80-90 percent of electric power generation from coal. However, as coal plants are retired, there has been a shift toward natural gas for new power plants constructed in the region. The economics of power generation (i.e., lowcost fuel source) has typically been the major factor in determining shifts from one fuel source or technology to another. However, governmental energy policies and incentives have more recently been used to promote the development of new alternative technologies such as wind and solar energy growth to diversify the energy mix. The implementation of these incentives has provided some needed traction and resulted in driving the cost of manufacturing and installation of these new wind and solar systems downward to be more cost competitive with conventional fossil-fueled power sources. Future shifts in the generation capacity by fuel type will also be inevitable and impossible to project accurately as policies change and innovative technologies evolve. Determining factors may include the expiration of current incentives, decreasing capital costs, future environmental regulations, evolution of energy storage systems, technical challenges associated with increasing intermittent sources of generation and the development of unforeseen technologies. West Virginia and Kentucky have been among the least solar friendly states, ranking 44th and 48th of the 50 states (Fig. 1 for WV). The ranking of other coal producing states are similarly low:• Ohio 20• Pennsylvania 21• Virginia 38• West Virginia 44• Wyoming 45• Kentucky 48• Alabama 50"

Jun 1, 2019

By A Chandra, P Guj

Only a few complex real options can be valued using closed-form equations, such as the Black and Scholes formula, because these algorithms are restrictive and prevent the construction of practical project evaluation models. Although a binomial lattice method paired with the ærisk-neutral probabilityÆ provides an easier and flexible modelling of exploration and mining projects, it has limitations when projects are complex, long-lived and influenced by the interplay of various market and private uncertainties. In order to overcome these limitations, modern decision tree software using dynamic programming capability can be used for real option valuations. This is a powerful computational tool in which the impact of various sources of uncertainties can be differentiated, so that the optimal decision path can be explicitly displayed visually. There has been significant academic controversy surrounding whether different real option (RO) valuation methods would lead to different real option values (ROV). This paper, using a realistic copper mining example, demonstrates that as long as the same degree of subjectivity and consistency are used in different real option valuation methods, they yield the same result. This conclusion is valid irrespective of whether the cash flow volatility generated by various sources of uncertainties is handled in an aggregated or in an explicit and differentiated manner. This paper compares two choices for an investor either to æbuy now and developÆ a project or to enter into a ætwo-year option to purchaseÆ after the proponents have developed it. It also shows how significantly different net after-tax operating cash flows may be generated by these different choices on the same underlying asset represented by the project. This is due to the difference in the amount and timing of the relevant capital investments affecting the depreciation and amortisation charges and as a consequence, the income tax paid. CITATION:Guj, P and Chandra, A, 2012. Real option valuation of mineral exploration/mining projects using decision trees - Differentiating market risk from private risk, in Proceedings Project Evaluation 2012 , pp 177-188 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 24, 2012

By L. C. IlsLey, E. J. Gleim

Electrical apparatus because of its flexibility and its adaptability to all classes of service has become essential to the mining industry. Hence the problem of providing electrical equipment that is safe for use in explosive mixtures of methane and air is of prime importance in coal mining. Ilwestigatorsand experiment stations early recognized this fact and much work has been done in the investigation and the development of electrical apparatus for use in atmospheres containing fire damp. The term "fire damp" as applied throughout this bulletin means an explosive mixture of methane and air. Direct-current motors and alternating-current motors of the slipring type when running usually give off electric arcs or flashes that will ignite fire damp. Other 'motors that ha,'e no moving electric contacts may become dangerous through accident, deterioration, or neglect. Auxiliary apparatus such as fuses, switches, rheostats, and controllers may arc, flash, or become heated to snch a degree that fire damp can be ignited. Such equipment is still more dangerous when worn or out of repair. In the United States the development of apparatus for use in gaseous mines has been associated largely with coal-cutting equipment run by electricity. This is undoubtedly due to the use of such equipment at the face of the mine workings, where the chance of igniting fire damp is necessarily greatest. One American manufacturer built a coal-cutting equipment of the totally inclosed type for use in firo damp atmospheres in 1903. Another built similar equipment with special protective devices in 1906, for export. During the years 1910 and 1911, the Bureau of Mines at its Pittsburgh experiment station conducted a preliminary investigation of the safety of such protection as was then in use or under consideration. Five motors were submitted for this investigation, each having somewhat different methods of protection. The results of this investigation were published in Bulletin No. 4G.a

Jan 1, 1920

By Les A. Beckett

The Bureau of Mines has developed MULSIM/BM, an improved computer program using the boundary-element approach for geomechanical analysis of mine plans in single or multiple coal seams. This Information Circular presents the improved features of the MULSIN/BM program. The four major improvements are the following: (1) Ability to specify up to 26 material property sets. (2) A new material model capability for gob and inserted materials such as packwalls or cribs. (3) Ability to model a large area with a grid of undivided blocks and to subdivide only a specified fine-mesh portion of these blocks into elements. (4) Specification of extraction ratios for the undivided blocks. In addition, an interactive graphics mesh generator program was written to accompany MULSIM/BM. A complete user's guide and program listings are included within the appendixes. The MULSIM/BM and mesh generator programs are available on tape from the National Technical Information Service.3

Jan 1, 1988

By K. Shoji

Residence time distributions (RTDs) were estimated by water tracing in a number of wet overflow ball mills (diameters 0.38 to 4.65 m) producing dense, coal-water slurries. In open-circuit mills of 0.38 m diameter and various length-diameter (L/D) ratios, the mean residence times of solid were also determined from measured mill holdups. Holdup increased with increased mill feed rate, but the mean residence times of coal and water were still equal to each other. The experimental residence time distributions were fitted to the Mori-Jimbo-Yamazaki semi-infinite, axial mixing model, and the dimensionless mixing coefficient was determined for each of 25 tests in single- and two-compartment mills. This coefficient was found to be independent of the feed rate but linearly proportional to the D/L ratio. The mixing coefficient was smaller for two-compartment mills than for single-compartment mills, showing that there was reduced mixing introduced by the diaphragm separating the compartments. Equations are given to scale residence time distributions for changes in mill diameter and length.

Jan 1, 2008

Optimizing production scheduling in open pit mines is important for managing cash flows of mining operations. This paper describes a new, probabilistic, mixed integer programming (MIP) formulation which has been developed to minimize the risk of not achieving planned production targets, in terms of metal production and ore tonnage feed for the mill during production, while considering maximization of total discounted economic value. The new MIP model also recognizes that to minimize movement of excavators over long distances and accommodate equipment access, the blocks scheduled for mining within a period cannot be spread too widely. The model is applied to a laterite nickel-cobalt deposit, as an example of multi-element deposits that have complex ore quality constraints. The results show that the proposed model generates feasible schedules. When compared with traditional optimization techniques, the new model is superior in terms of minimizing the risk of not meeting production targets, especially at the early stages of production, and in terms of generating practical scheduling patterns.

Jan 1, 2006

By Thomas G. Goonan

Copper production through smelting generates large volumes of material flows. As copper contained in ore becomes copper contained in concentrate to be fed into the smelting process, it leaves behind an altered landscape, sometimes mine waste, and always mill tailings. Copper concentrate, fluxing materials, fuels, oxygen, recyclables, scrap and water are in-puts to the process. Dust (recycled),gases — containing carbon dioxide(CO2) (dissipated) and sulfur dioxide (SO2) (mostly collected, transformed and sold) and slag (discarded or sold) — are among the significant process outputs. This article reports estimates of the flows of these input/output materials for a particular set of smelters studied in some countries. They include Chile (Altonorte, Caletones, Chagres, Chuquicamata, LasVentanas and Potrerillos), Japan(Naoshima, Onahama, Saganoseki,Tamano and Toyo), the United States(Garfield — Fig. 1 — Miami and Hayden) and Europe (Glogow I, Glogow II, Huelva, Norddeutscheand Ronnskar).

Jan 1, 2005

By Dennis F. Koschak

Production tests at Reserve Mining Company's iron ore pelletizing plant established that rubber-lined balling dm produce a green pellet equivalent in quality to those produced in conventional balling drums equipped with reciprocating cutter bars. The flexing action of the rubber liner prevents concentrate buildup in the drums, eliminating the need for a cutter bar. Advantages of the rubber-lined drum includes a reduction in maintenance and operating manpower, reduced bentonite consumption with less drum surging, reduced power consumption, and improved drum on time.

Jan 1, 1983

By C. Hellar

A new dual-boom remotely controlled roof bolter was designed, fabricated, and then tested in an underground coal mine. Remote-control functions allowed complete bolting cycles to be performed on two booms with both operators located within protective cabs. Capabilities included 3-to 6-foot-long bolts in 5-to 8-foot seams, limited to bolts 20 inches shorter than seam height. Machine was in compliance with all regulations including dust collection, machine lighting, and permissibility.

Jan 1, 1979

A model was developed of a CIL/CIP circuit for recovery of gold and silver. The model uses a simple two rate representation of the leaching kinetics. Parameters for the leaching kinetics may be simply obtained by sampling the feed to a circuit and the tailings from each tank and assaying the solids for both gold and silver to obtain the assay profiles of the solids down the tanks. The parameters in such a leaching model would be expected to be a function of the ore type, the grind, whether oxygen was used and the general chemical environment. These parameters are primary inputs to the model for any simulation. Standard power law relationships are used to express the practical equilibrium between the gold and silver cyanides adsorbed on the active carbon and the tenor of the solutions. The parameters for this may be derived from solution and carbon assays for the same set of samples. The model is constructed by writing a mass balance for gold and silver in and out of each tank in the train and for the circuit overall. Other inputs to a simulation are the feed rate of ore, per cent solids of the slurry in the tanks, gold and silver loadings of the input æbarrenÆ carbon and the rate of movement of carbon through the circuit counter-current to the slurry. With appropriate practical parameters the simulation is able to reproduce typical tank profiles.

Jan 1, 2004

By J. A. Elliot

Deep Mix-in-Place soil stabilisation is achieved by forming columns of soil/cement arranged to overlap by secant intersection. Alternate columns are constructed initially and infilled. The cementitious material injected is designed to retard the strength of the resulting mix thereby allowing satisfactory overlapping. Columns are constructed using a designed large diameter mixing auger mounted on a smaller diameter auger stem. This is firstly screwed to the design depth removing only such spoil as to enable penetration of the auger, and subsequently counter rotated and extracted in a predetermined mixing pattern and grout injection rate to ensure continuous and homogeneous treatment through each successive level. The process is performed whilst monitoring auger depth, grout flow and pressure. Cementation Piling and Foundations Limited used this technique to stabilise allu­vium and to facilitate the construction, by conventional techniques, of a circular pumping station pit of 10M diameter to 10M below ground level. The work was carried out within 3M of adjacent domestic properties, and on a very restricted site in Elland, West Yorkshire. Ground conditions consist of 2M of cohesive alluvium becoming water bearing and increasingly sandy and gravelly with cobbles which overlies the mudstones at 10.0m depth. Sandstones beneath formed an aquiclude to artesian ground water with the underside of the open excavation approxi­mately 1.0M from the top of this material. Peripheral treatment into the mudstone, coupled with pressure relief wells, proved successful and final excavation depth was achieved in "the dry".

Jan 1, 1989

By R G. Barker, A B. Christie

"An EXTENDED ABSTRACT is available for download. A full-length paper was not prepared for this presentation. More than 11 Moz of Au and 50 Moz of Ag have been produced from epithermal deposits in New Zealand, almost entirely from 50 deposits in the Hauraki goldfield. Since the 1980s, new deposits have been discovered at Waihi (Favona, Trio, Correnso) and nearby at Golden Cross. Feasibility studies into reopening the Talisman mine at Karangahake are continuing, and advanced projects with preliminary inferred resource estimates are reported at Wharekirauponga, Neavesville and Muirs. In the Taupo Volcanic Zone, 11 prospects have been drilled, resulting in the definition of large but low-grade Au-Ag resources at Ohakuri. In Northland, several Au, Ag and/or Hg prospects are known, and small quantities of Ag and Hg have been mined. Six prospects have had some drilling, with the most advanced exploration at Puhipuhi. The application of Taupo Volcanic Zone geothermal systems research to the modelling of former hydrothermal mineralising processes in some epithermal prospects has enabled better targeting of exploration.CITATION:Christie, A B and Barker, R G, 2015. Exploration for epithermal gold deposits in New Zealand, in Proceedings PACRIM 2015 Congress, pp 533–540 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 18, 2015