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By Richard L. Gordon, William A. Vogely

In this chapter, the principles that determine the procedures selected to transform minerals in the ground into usable commodities are re¬viewed.a I argue here that straightforward mod¬ification of the modern general economic theory of production suffices to meet the practical needs of a mineral economist. Therefore, the chapter is largely a review of the general economic theory of production to which is added discussion of the special prob¬lems of the exhaustibility of mineral resources and the economics of finding and developing economically recoverable minerals. In many cases, propositions applicable to all industries are reviewed because they are not treated ade¬quately in prior texts. In the discussion, use is frequently made of basic concepts of differential calculus widely used in economics. However, this is supple¬mented by simpler verbal and graphical treat¬ments, so that those either untrained in the calculus or, as is often the case, whose skills have grown rusty, can still follow the discus¬sion. Where the argument depends critically on the mathematics, this is noted and the justifi¬cation for including the material is provided. In addition, an appendix outlines the critical mathematics and reviews some of the numerous books published that provide the most readable available introduction to the subject. Further¬more, mineral industries examples are used to suggest the relevance of the theory. THE RELEVANCE OF THE ECONOMICS OF PRODUCTION Three basic steps are involved in establishing the relevance of economic analysis to mineral ¬industries decision making. First, the general theory of production must be defined, and its relationship to the simpler models of production stressed in economics textbooks must be noted. Second, the critical modification-considera¬tion of the problems of discovering and devel¬oping mineral deposits-must be developed. It turns out this too involves a special case of the general theory of production. Third, the concept of an economics of exhaustible resources must be explored sufficiently to suggest why its practical relevance is doubtful (or at least far smaller than the numerous writers on the subject seem to believe). The present approach is heavily influenced by post-1945 developments in economic anal¬ysis. Particularly since World War II, economic theory has drastically changed its scope. First, stress has increased greatly upon viewing the economy as a network of intertwined markets known technically as the general equilibrium system.b In this view, not only is the economy viewed as an integrated system, but critical con¬cepts are viewed somewhat differently than was previously fashionable. Specifically, in general equilibrium models, the concepts of supply and demand are rejected as central concepts in favor of a distinction be-

Jan 1, 1985

By J. Groff

The Getchell and Twin Creeks mines are located along a north-northeast trending structural zone in Humboldt county, Nevada approximately 40 miles northeast of the town of Winnemucca. Gold mineralization at the Getchell mine is represented principally by sulfide-rich ores, which contain significant amounts of realgar and\ orpiment, with the gold being recovered through processes which involve pressure oxidation. In contrast, oxide ores are currently being mined and processed at the Twin Creeks mine although large reserves of sulfide ores, some of which contain orpiment-realgar-stibnite, have been defined (Bloomstein et al., 1990). The Getchell and Twin Creeks mines represent major gold orebodies but very little has been published pertaining to mineral paragenesis and the characteristics of ore-forming fluids for these deposits.

Jan 1, 1994

By M. Tomono

Harima Works is operating as the zinc and lead simultaneous smelter utilizing the imperial Smelting Process. The smelter commenced its operation in 1966 with designed capacities of 3500 t/M of zinc and 1500 t/M of lead. After that, owing to the results of progressive developments and improvements in operating efficiency and equipments, it has doubled its production figure. This report reviews our recent developments carried out from 1983 to 1985. Firstly, the furnace bottom design was modified for the purpose of reducing carbon consumption ratio. As a result, shaft operating condition has been satisfactory and carbon consumption ratio was improved by 2%, in addition, furnace zinc production was increased by about 8%. Secondly, the oxygen enriched operation at sintering machine was tested from July 1984 to June 1985, in order to increase the sinter productivity, and to solve the capacity imbalance between sinter plant and ISF. As the test result, it was found out that sulfur elimination rate was increased by approx 10% with the oxygen enrichment of 500 Nm3/hr.

Jan 1, 1986

By F. Ansheng

Though it becomes increasingly important with the valuable minerals in their deposits tending to be fine and poor, the solid and liquid separation remains difficult especially when the particles are of micrometer size and of low density. Almost of all conventional thickeners result in that fine particles lose into overflows which often costitutes a loss of potentially valuable resources as well as an environmental hazard. The addition of flocculations may improve the settling of solids but may also not work well for the final removal of fine particles from the overflows (Ref.1).

Jan 1, 1990

By A. Arik

1his paper presents a modified ordinary kriging technique referred to as the "Nearest Neighbor Kriging" (NNK). The method is a simple and practical tool to use when the ordinary kriging (OK) results are unreasonably smooth, especially when estimating recoverable ore reserves for deposits with skewed grade distributions. NNK is robust and globally unbiased like OK. However, it is more advantageous over OK because it can control some of the smoothing and conditional bias which have been the major pitfalls of OK in many grade estimation cases. The paper details the methodology of NNK and its application to a gold deposit.

Jan 1, 1998

By P. Tsang

The stability of longwall chain pillars depends not only on the mechanical properties of coal and surrounding rocks, but also geological and mining conditions. In order to evaluate the effects of each, variable, the orthogonal experiment design was employed in this study for significance analysis. The study concluded that the stability of longwall chain pillars is mainly controlled by the ratio of pillar stress to pillar strength, the ratio of Young's moduluds of the roof to coal and floor to coal, entry width, pillar width and the internal friction angle of coal. Additionally, horizontal stress, panel width and mining height also play a significant role.

Jan 1, 1994

By D. W. Park

Longwall mining is popular in underground coal production in the United States due to higher production rates and safety concerns. Because of the extreme complexity, it is necessary to plan an adequate design to achieve a safe and efficient working place. The proper sizes of yield and abutment pillars and panels can be determined by simulation using numerical modeling techniques. By means of three-dimensional modeling, stresses to be imposed on the pillars, panels, gob, and powered supports can be analyzed. In this study, an initial three-dimensional finite element model was developed and then modified into four different models. Using these models, the numerical outputs of distributed stresses on three different sizes of yield pillars, three different sizes of panels, and two different sizes of abutment pillars were compared and analyzed to determine the most adequate pillar and panel sizes. Progressive failure theory based on the Hoek and Brown failure criterion was used to determine redistribution of stresses in the yielded and failed areas in the longwall mine.

Jan 1, 1992

By Paul R. Thomas

This paper addresses two issues affecting the international ferrochromium market as they pertain to the changing pattern of U. S. chromium import dependency. These issues are 1) the long-term ferrochromium production cost differential between the United States and the Republic of South Africa and 2) the ability of Zimbabwe to expand ferrochromium production and exportation. This paper draws upon the data and analyses of a recent Bureau of Mines Minerals availability Program appraisal that evaluated the international availability of chromium in the form of chromite and ferrochromium from 10 market economy countries. South African ferrochromium producers are shown to have a long-term production cost advantage over U.S. producers of $0.03 to $0.04 per pound of contained chromium, in 1981 dollars. Zimbabwean ferrochromium production and exportation are expected to increase in the future. Major expansions of production capacity will be dependent upon alleviating potentially serious constraints in electric power, rail, and port facilities. In the long term, ferrochromium production costs in Zimbabwe are expected to increase faster than the rate of inflation, because as chromite mining from the podiform resources in Zimbabwe decreases, production from the Great Dyke resources will increase.

Jan 1, 1984

WELCOME to the world-class Cripple Creek district where gold exploration and production continue 95 years after the initial discovery. More than 21 million troy ounces of gold have been recovered, valued at greater than $7.8 billion using today's gold price ($371/oz). The Cripple Creek district is localized within and around the margins of a silica-undersaturated alkalic diatreme-intrusive complex. The diatreme appears to be comprised of three sub-basins: 1) a sub-basin east of the Cresson (Fig. 1); 2) a southwestern sub-basin between Victor and Cripple Creek; and 3) a northwestern sub¬basin within which the Globe Hill and Ironclad pits (Fig. 1) are located. The recognition of three separate basins was made by G. F. Loughlin and A. H. Koschmann (1935, Fig. 8) who prepared a contour map on the floor and walls of the composite Cripple Creek basin. The northwestern and southwestern sub-basins are apparent due to the discontinuous exposures of a partially exhumed ridge of Precambrian rocks (Fig. 1). The separation of the eastern and southwestern sub-basins was recognized in mine exposures where a fault-bounded ridge line extends from the vicinity of the Ajax mine toward the Precambrian "island" (Fig. 1).

Jan 1, 1986

By H. L. Holden

The single line grinding circuit at Bond Gold's Colosseum mine consists of variable speed drive semi-autogenous (SAG) milling and secondary grinding with a fixed speed ball mill. There are several advantages and disadvantages of operating SAG mills with variable speed drives. Discussion in this paper will focus on the effects of variable speed SAG milling in relation to mill liner wear, grinding media consumption, and mill operating availability. Operating experiences, corresponding mill data, and pertinent design changes are also presented.

Jan 1, 1991

By E. S. Forbus

A process for producing reductive bleach in-situ in kaolin slurries has been developed. The bleach is formed by mixing an iron sponge powder (-325M) with slurry treated with SO2. The process has been successfully demonstrated in production, and applied to several grades. The color, brightness, and viscosity of the bleached product is equivalent to or better than that of product bleached with commercial sodium hydrosulfite . The tested products can be bleached at a cost, which is 38-54% of those associated with the use of commercial bleach.

Jan 1, 1993

By Da-Rong Chou

An optimum method for selecting exploratory drilling locations has been developed. The process has been modelled as a highly non-linear programming problem subject to constraints. Solution involves an iterative algorithm which converges rapidly and procedures have been developed to distinguish between local and global optima. The algorithm has been implemented as an interactive computer program which allows the user to influence directly the solution process and to evaluate the effect of any manual adjustments to the optimal solution.

Jan 1, 1984

16.1.1-VENTILATION'S ROLE Importance of Ventilation and Environmental Control-Mine ventilation is necessary for the preservation of human life and for the conduct of operations involved in the underground extraction of minerals. It clearly is the most essential of the functions attendant to mining, yet it is auxiliary to the primary objective in mineral extraction. Ventilation in mining thus poses a paradox: ideally, it should be carried out with minimum interference with and cost to production operations, yet it is absolutely vital in providing adequate environmental con¬ditions to support mining. Deterioration of the atmosphere, along with rising ground pressure, imposes the ultimate constraint with depth in underground mining. Ventilation requirements and costs rise rapidly with depth. To preserve atmospheric quality under intense heat conditions, ventilation at great depths must be supplemented by air condition¬ing. Likewise, when mining at any depth under severe or excessive conditions of gas, dust or humidity, supplementary control measures must be employed. In recent years, environmental standards in mines have been raised substantially. While limits are based on human tolerance, increasing concern is being expressed for standards of human comfort. The reasons are economic, as well as humanitarian. Worker performance and longevity correlates closely with environmental quality. Further, adverse accident and insurance compensation rates are a consequence of unsatisfactory environmental conditions. No mining company can afford to be lax in its environmental and ventilation practices. Functions and Processes-Ventilation is the control of air movement, its amount and its direction. As a means of quantity control, it is one of the constituent processes of total air conditioning, the simultaneous control within prescribed limits of the quality, quantity and temperature-humidity of the air. Ventilation is the most common and most. important conditioning process employed in mines for air environmental control. In mine ventilation, air is coursed through the mine workings and openings themselves and, for auxiliary purposes, through vent tubing and ducts. Thus, many interdependencies exist between the mining system and ventilation method. In fact, the two often have evolved ,jointly, as in room-and-pillar extraction of bedded or tabular mineral deposits, such as coal. Ventilation in mines today is provided almost exclusively by large fans, although air flow may result due to natural (thermodynamic) conditions. As mines increase in depth, size and complexity, demands on the ventilation system to maintain more stringent standards of environmental quality likewise rise. On the other hand, never have the technology and resources of the mining industry to cope with environmental problems been so well developed as they are today. In spite of rising costs, it is unlikely that further progress in mine ventila¬tion and air conditioning must await technological breakthroughs. 16.1.2-NATURE OF THE MINE ATMOSPHERE Air Mixtures-Air is a gaseous mixture comprising the natural atmosphere at the surface of the earth. Thermodynamically, it may be thought of as a mech-

Jan 1, 1973

By James H. Harmon

As the trend to deeper mines, producing from marginal ore bodies, continues, mine hoists and their associated equipment will become more sophisticated, complex, large and expensive. Over the past two decades, mine hoisting equipment and systems have moved from steam engines to static rectification of ac to dc, and electronic controls are the standard. It is the intent of this section to present what is currently available in the field of mine hoisting equipment and systems. Because the present engineer has been exposed longer and more intensively to such things as computers, electronic devices, and machine design, no attempt has been made to make this a layman's article. Contributions from the electrical design and application engineer, gearing and hearing design engineers and other specialists have been incorporated. Some material will be devoted to electrical drive systems, rectifiers and gearing design among others. These items are inherent in the design of a mine hoisting system and the subsequent selection of the correct, most reliable and most economic system. The mine hoist can be a bottleneck between the underground mine and the surface mill. Correct selection of the right type of hoist is imperative. In this vital link between mine and mill, crude estimates of hoist capacity are not good enough, and the mining engineer must design and select the right hoisting system to meet the design specifications. 15.1-MINE HOIST TYPES There are two basic types of mine hoists available anywhere in the world today: the drum hoist on which the hoist rope is actually stored during the hoisting cycle, and the friction (Koepe), which merely passes the rope over the wheel during the hoisting process. Drum and friction hoists are "generic" terms which describe the two basic categories. Within each category are variations, as below. 15.1.1-DRUM HOISTS Drum hoists, as noted, actually store the hoist rope on the drum much the same as line on a fishing reel. To accomplish this task, the drums are so designed to store, in one or more layers, the footage of wire rope equal to the total maximum hoisting distance plus sufficient rope for cutting and inspection at regular intervals and for holding to the drum (see Fig. 15-1). Usual practice in hoist drum design is to allow three turns of hoist rope for holding on the drum and three turns for inspection cuttings. 1. Single-Drum Hoists-Fig. 15-2 shows a typical single-drum hoist as manufactured by most U.S. heavy-mining-equipment companies. With the exception of some very minor features, this design configuration is standard throughout the U.S.A. Fig. 15-3 is a plan view of a typical single-drum mine hoist. This particular hoist has a single-motor drive and a double-reduction set of gearing.

Jan 1, 1973

By G. J. Gersbach

The Robe River Iron Ore Project began in 1962 when Cliffs International acquired mining leases in Western Australia's Pilbara Region. Initial reserves were proven and bulk ore samples sent to the U.S.A. for pilot plant testwork. Cliffs Western Australian Mining Company Pty. Limited (30%) manages the project in joint venture with Mitsui Iron Ore Development Pty. Limited (30%), Robe River Limited (35%) and Cape Lambert Iron Associates (5%).

Jan 1, 1983

By S. K. Mishra

The history of the Australian coal industry is almost as old as the history of Australia after new settlement. The first cargo of coal was exported from Newcastle to India in 1799. Although coal has been mined in Australia for almost two centuries, there are indications that the first coal was processed in 1877 in the New-castle area, nearly a half-century after the first coal processing in Europe. Processing on any significant scale began only in 1944 at the Newcastle Steel Works. In Queensland, however, coal processing did not begin until the second quarter of this century. The well-known dramatic growth of mining and processing of Australian coal since the mid-sixties has primarily been due to the expansion of the export market in Japan and other Asian and European countries. Black coal occurs in most of the major sedimentary basins in Australia. The better known deposits of commercial importance are in Sydney, Bowen, Oakland and Gailiee Basins (Figure 1). Apart from Collie Basin in Western Australia, other coal deposits of the Arckinga Basin in South Australia, the Bonaparte Basin in Northern Territory and Tasmania Basin, Tasmania, are basically unexploited. Sydney Basin of New South Wales and Bowen Basin of Queensland remain the major producers of black coal in Australia.

Jan 1, 1985

By A. A. Densmore

Telluric Current is that portion of the electric field observed at the surface of the earth which is of an alternating nature, and which is related to solar activity and events in the ionosphere. The primary electromotance which drives the telluric current is the result of the induction process associated with time variations in the earth's magnetic field. The relationship between the electric and magnetic components of this electromagnetic field depend upon the conductor. For our purposes, we are dealing with frequencies f in the range

Jan 1, 1972

By L. D. Hartzog

A pilot plant investigation of a semi-autogenous mill - ball mill circuit is described. The plant was operated with minus eight-inch diabase as feed material to the semi-autogenous mill. The semi-autogenous mill recycle screen underflow was put to a ball mill in closed circuit with a cyclone. An operating Work Index of 13.3 to 14.9 was obtained with the pilot ball mill. This Index is substantially in agreement with the scalped feed laboratory Work Index for 15.3 for recycle screen underflow. The Bond Index of the diabase was 15.8. Thus, one may use the scalped feed laboratory Work Index to size semi-autogenous grinding plant ball mills.

Jan 1, 1974

By P. Sotiropoulos

In the framework of the Specific Programme: ?Promoting Competitive and Sustainable Growth? a detection system was designed and developed in order to provide an added value service beyond standard instrumentation. In the hydrocarbon industry it will be possible for the first time to detect in a pulse regime, two types of radiation emissions using a single device. This means that any saturation of hydrocarbons can be detected, irrespective of the degree of formation water mineralization, which is a major limitation on currently available neutron-gamma tools, where the formation water has a low mineralization.

Jan 1, 2006

By William G. Fischer

Equations developed by an early researcher in subsidence, F. Martos of Budapest, Hungary, have been slightly modified to produce effective equations for predicting the time-dependent nature of Green River trona mine subsidence. Following the initial study, a survey was run to check the results twenty years after mining of the area had been completed. The final results were within a few centimeters of the value that had been projected. Mining conditions in the Green River area are ideal for this sort of study with trough type subsidence being the surface manifestation of high extraction underground room and pillar caving operations.

Jan 1, 1986