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By Ivan C. Machado

Jaguar Mining Inc. is implementing a 1.1 Mtpy, 7-year LOM gold project in the Iron Quadrangle (?Quadrilátero Ferrífero?), Brazil. Construction is on schedule and startup is programmed for Q2 2010. Mill feed grade averages 4.43 g/t and LOM gold production is estimated at 800,000 oz. The project entails two sulfide underground mines and three oxide/transition open pit mines. A state-of-the-art flotation/gravity concentration/CIP Plant has been designed based on testwork carried out by internationally recognized Canadian, U.S., and Brazilian laboratories. The mass recovery of the flotation section is only ca 10%, while its gold recovery is about 90%. Therefore, the CIP-ADR Plant will treat only 10% of the solids mass contained in the mill feed, while 90% will be fully cyanide-free material that will be partially used to feed a Backfill Plant. The leached tailings will be conveyed to a rather small tailings dam, whose 20- m3/h supernatant solution will be treated by a new electrolytic technology. The plant design contemplates a High Density Thickener for the cyanide-free rejects exceeding the backfill demand and a Regrinding Section before the Leaching Circuit. The estimated overall metallurgical recovery sits around 92%. This paper focus on the use of modern technologies to reduce costs, risks, and liabilities.

May 1, 2010

By Julie Culverhouse, Dennis Grimm, Kieran Harding, Jean-Francois Boulanger

"Agrium’s Canadian Phosphate Business (CPB) is comprised of Kapuskasing Phosphate Operations (KPO) in Northern Ontario, Canada’s only operating phosphate mine, and Redwater Phosphate Operations (RPO) in Alberta, which manufactures the fertilizer from KPO’s concentrate.Production from KPO’s South Pit commenced in 2009 and introduced contaminant problems: high aluminium from crandallite and kaolinite clays. These issues caused a drastic decrease in P2O5 recovery and throughput in both plants. KPO attempted to reduce Al clays by means of aggressive desliming. Meanwhile RPO experienced high amounts of dissolved metals in their feed that are detrimental to fertilizer production.This paper covers the mineralogy of the problem, its impact on contaminant separation at KPO, on RPO’s process and on Agrium’s Canadian Phosphate Business as a whole.Potential solutions to the problem are discussed and analysed, including a process change to deslime high aluminium streams more aggressively and high grade ore flotation, which is atypical at KPO. The latter is a demonstration of the value of communication between the concentrator and the client, as KPO accepted a recovery loss and increased production costs in order to increase overall CPB profits. General lessons learned are discussed, followed by a section on ore blending.INTRODUCTIONAlthough the existence of the Kapuskasing phosphate deposit has been known since the 1970s, it’s only since 1999 that Agrium has been operating the Kapuskasing Phosphate Operations (KPO). The mine consists of three major pits (Center, North and South) from which a mining contractor hauls the apatite ore to the Agrium concentrator. The beneficiation plant processes the ore, separating contaminants such as Fe, Mg and Al which are detrimental to its client, Agrium’s Redwater Phosphate Operations (RPO). The KPO concentrate is finally thickened, filtered and dried before being shipped by rail to RPO.At the Redwater plant, the KPO concentrate is added to a sulfuric acid solution in an attack tank, to create a phosphoric acid solution and gypsum:"

Jan 1, 2011

By J. L. Llanca

The New Level Mine project (NLMP), the planned underground expansion of the El Teniente mine in Rancagua, Chile, is expected to reach a daily extraction rate of 137 to 180 ktpd upon achieving full capacity. Production is planned to start in the year 2017 and the current plan is to meet that target through two development phases, from the year 2012 to 2014 and from the year 2015 to 2017. To achieve the 2012 to 2014 underground development schedule, the ventilation requirements have been estimated in the range of 189 m3/s (400 kcfm), and cannot be made available without significant modifications to the current system of El Teniente. As a result, a certain number of alternatives were explored to find a solution to this shortfall, for example, adding raises to generate parallel airways and installing fans to reinforce the current ventilation system. From the alternatives studied, the installation of a second main fan (system) in parallel to an existing one was identified as the best solution, and selected for implementation, however the location was not ideal and there were concerns as to the operation of both fans once the second fan was installed. This paper presents the study used to estimate the operational points of both the current and the new fan, and to justify the parallel installation of the additional main fan. An additional computational fluid dynamics study was undertaken to validate the operational point, given the particular geometry of the fan?s location and placement, to guarantee a stable operation of the fans. Finally, the protocols arising out of this work for starting the fans, and operating them in parallel to avoid generating a stall condition and damaging the investment are discussed.

Aug 1, 2013

By G. D. West, J. D. Purdue

"Marked Ball Wear Testing (MBWT) employs identified grinding balls which are placed in an operating mill for a period of time, retrieved from the mill, and then measured to determine the amount of wear experienced. This is an excellent method to evaluate the relative differences in the wear rates of various grinding ball materials and/ or manufacturing process variables simultaneously and under actual production milling conditions. This paper outlines the methods of ball identification, testing and evaluation procedures and discusses the strengths, weaknesses, and proper application of marked Ball Wear Test results. INTRODUCTIONThe consumption of grinding media in the mineral processing industry represents a substantial cost to the comminution process. Grinding media is most often found to be the second highest consumable cost next to energy. To determine the selection of the most cost effective media, one must determine the specific wear mechanisms present in a given grinding application and decide which media system addresses these mechanisms most economically.A MBWT has definite advantages over other methods used to evaluate the relative consumption rates of grinding media. It allows the comparative testing of a large number of different ball types under identical operating conditions in a very short period of time. In addition, production wear rates can be accurately predicted directly from MBWT results. Typical MBWT test periods are in the order of 350 to 700 operating hours for high wear rate application and upwards of 2000 or 3000 hours for low wear rate applications. These times are much less than the 5000 or more hours required to purge a mill of the incumbent ball charge (to convert it to the test ball) and then provide even a minimal test period in which to conduct a full production test, for just one type of ball. Under production test conditions the evaluation of competitive product or the development of improved grinding balls is necessarily slow."

Jan 1, 1991

By T. Banerjee, D. Felsher, G. Leavoy

"Lake Shore Gold is engaged in commercial gold production at both the Timmins West and Bell Creek mines, located in Timmins, Ontario. Run of mine ore is processed at the Bell Creek mill which consists of a conventional gold mill flow sheet involving crushing, grinding, gravity concentration and carbon-in-leach (CIL) for gold recovery. Since 2009, the operating capacity of the mill has been upgraded from 2000 tpd tonnes per day (tpd) to over 3,000 tpd. The most recent expansion involved the installation of a low aspect ratio SAG mill to replace the secondary crusher. Without operational data on the low aspect mill, combined with a site team that was new to SAG milling, there were many challenges in achieving the target throughput from the circuit. Through the implementation of AwaRE advanced controllers, running in closed loop with PRC fragmentation cameras as well as embedded PARC modules within the Allen Bradley PLC, the site was able to rapidly develop a best operating practise and has been successful in creating a stable and consistent operational environment. The process, lessons learned and eventual solution will be reviewed in this paper.INTRODUCTIONLake Shore Gold is engaged in commercial gold production at both the Timmins West and Bell Creek mines, located in Timmins, Ontario. Run of mine ore is processed at the Bell Creek mill which consists of a conventional gold mill flow sheet involving crushing, grinding, gravity concentration and carbon-in-leach (CIL) for gold recovery. Since 2009, the operating capacity of the mill has been upgraded from 2,000 tpd tonnes per day (tpd) to 3,150 tpd. The most recent expansion involved the installation of a low aspect ratio SAG mill to replace the secondary crusher. This endeavor was split into two phases: the expansion of the back-end (Phase 1) and the front-end (Phase 2) of the mill. Phase 1 of the expansion was completed at the end of 2012 and involved enhancements and capacity addition to the leaching and adsorption circuits, which increased the mill’s capacity to 2,500 tpd. Phase 2 of the expansion commenced at the end of July 2013 and involved the expansion of the crushing and grinding circuits. The expanded front-end of the mill now has a capacity of 5,500 tpd, and processes ore from both Bell Creek and Timmins West mines. The updated flow-sheet, as shown in Figure 1, illustrates the replacement of the two-stage crushing and ball milling circuit with a single stage crusher and a low aspect ratio SAG mill."

Jan 1, 2015

By W. K. Gowans

The Sullivan Concentrator treats a complex sulphide ore consisting mainly of galena, marmatite and pyrrhotite. The ore carried minor values in silver, antimony, bismuth, indium and tin. The products of the concentrator are lead, zinc, iron and tin concentrates. The minor metal values other than tin are recovered from the concentrates by the refining processes in the smelter at Trail.The concentrator was completed in 1923 and first operated with a capacity of 2,500 tons per day. In the years 1926 to 1929 changes to equipment and buildings brought the operation up to 5,500 tons per day and then, in the years 1935 to 1945, the daily tonnage was raised to 8,500 tons. After 1945, the rising insoluble content of the ore made it necessary to consider the construction of a Sink-Float plant. At this time consideration was also given to the construction of a new crushing plant underground to replace the rolls crushers and cone crushers located at the concentrator. By 1949, construction of the Sink-Float plant was completed along with a new underground crushing plant, and an electric haulage way between the underground crushing chamber and the Sink-Float plant. The ore was hauled in forty 14-ton car trains which discharged into a 3,000 ton receiving bin by means of an air operated five car rotary dumper. With the start up of the,Sink-Float plant, a 1 ½ ft. by 12 ft. Hardinge rod mill was also brought into operation. The Sink-Float plant made it possible to treat 12,000 tons/day of mine run ore with up to 40% of this being rejected as float.

Jan 1, 1975

By Bernard Dallaire, Jean Cayouette, Sylvain Duchesne

"Louvicourt Mine's concentrator, located near Val d'Or, Quebec, treats an average of 4,300 tonnes of ore per day composed mainly of copper, zinc, gold and silver. An analysis of concentrator revenues and metallurgical losses shows a potential for additional gain, particularly in regards to precious metals (kustelite) where recovery is usually around 67 -70 %. The planning, installation and trial operational period of two Outokumpu SK-240 flash cells at the underflow of the primary cyclones took two years. The use of (( flash flotation )) technology has made it possible to exploit the favourable conditions at the underflow of the primary cyclones such as precious metal concentration and the presence of liberated coarse chalcopyrite. These conditions permit early flotation (fresh surfaces) of the kustelite and the liberated copper. Since the start-up of the flash cells, the metallurgical gains have turned out to be very positive with increases in metal recovery reflected in appreciable NSR gains. Also, significant savings in reagent consumption and a coarser copper concentrate have made it possible to reduce the drying cycle of the Larox filter presses since the cells were put into operation.BACKGROUNDLouvicourt Mine is operated by Aur Resources Inc. (30% ownership) on behalf of its partners Novicourt Inc. (45%, subsidiary of Noranda Inc.) and Teck Corp. (25%). The mine is located in northwestern Quebec about 600 km north of Montreal and about 25 km east of the mining town of Val d'Or. The mine commenced commercial production in July 1994.The massive sulphide ore deposit lies at depths varying between 450 m and 900 m. Mining reserves (2% Cu equi. cut-off) as of Jan. Is', 2000 are estimated at 7.5 million tonnes of ore averaging 3.4% Cu, 1.8% Zn, 28.0 g/t Ag and 0.9 g/t Au. Delineated ore reserves permit the use of a mechanized transverse blasthole mining method. The extraction order is a typical 1.3.5 mining sequence. Primary and secondary stopes are 15 m wide, 15 to 70 m long (25 m long average) and 30 m high. Backfilling for pillar recovery and regional stability is required."

Jan 1, 2001

By Charles Kocsis

Over the last few years a multi-faceted feasibility study has been evaluating the introduction of hydrogen fuel cell powered equipment into underground mines to replaced diesel engine powered equipment. The analysis has shown that under normal operating conditions fuel cells could at the very least be an environmental and health benefit by eliminating combustion engines and their unwanted by-products. However, they could also generate significant reductions in the amount of ventilation a mine needs to supply when compared to dieselized operations; this would further decrease a mine?s energy consumption, its associated greenhouse gas impact and also reduce a mine?s significant ventilation associated costs. Fuel cell powered equipment also has the advantage of lower noise and heat production compared to their equivalent diesel powered counterpart. The degree to which fuel cells can generate ventilation benefits in underground mines depends upon a number of operational parameters and mine specific qualifiers such as current ventilation control or management, mine depth, inherent dust conditions and minimum velocity requirements. However another major consideration in the introduction of fuel cells in underground mines will be the safety requirements associated with diluting and removing the potentially explosive hydrogen in the event of a gas leak. In outside surface applications, it is possible to use dispersion, buoyancy, time, and lack of ignition sources as mitigating factors in deriving a low risk of an explosion. However, in underground operations these factors change, dispersion and buoyancy are limited; time may not be available and in non-coal mines ignition sources are not typically controlled. When a hydrogen leak occurs, the availability of sufficient ventilation to dilute and effectively remove the gas will be critical, consequently ventilation may be the prime risk controlling factor. In this paper, the authors evaluate the potential benefits of replacing diesel engines with fuel cells in powered production equipment, discuss the mitigating qualifiers that could limit ventilation savings and evaluate solutions to retain and maintain an additional ventilation capacity in the event of an emergency situation such as a hydrogen leak from the fuel cell stack or its distribution system.

May 1, 2007

By D. M. MacLean

THE property of Howey Gold Mines, Limited, is situated at Red Lake, Ontario, one hundred and seventy-five miles east of Winnipeg and eighty miles north of the Canadian National railway. The mine has been a continuous producer since April, 1930, and, at present writing, a total of 3,042,690 tons has been hoisted, giving a production of $6,422,858.55, for a grade of $2.32 per ton. From 1,064,477 tons mined during the past two years, however, the yield has been only $1,389,607.03, or $1.41 per ton (gold at $20.67). Present output is at the rate of about 1,470 tons. per day. THE ORE-BODY AND WALL-ROCK: The Howey ore-body is part of a quartz porphyry dyke, which has. intruded an area of greenstone. The dyke strikes north 65° east, and its dip varies from 85° to the south at the surface to practically vertical below the. 1,000-foot horizon. Both along the strike and on the dip, the width of the dyke varies from 25 to 200 feet, the widest portion occurring below the 1,000-foot level. To the east of the ore-body, the dyke increases in width and finally splits into tongues of porphyry enclosed in greenstone, diorite, and congloJ11erate. To the west, it passes into the adjoining property, its width at the boundary being 100 feet. The rock in the ore-body is hard to drill, but, because of numerous horizontal slip-planes, it breaks well when blasted. This characteristic makes it possible to break large breasts or benches with a relatively small number of holes. The ore broken in this manner is consequently quite coarse, a large part of it requiring secondary breaking.

Jan 1, 1938

By Éric Poulin, Simon Gariépy, Mario Paredes Malca

"While the design of a control strategy depends on the available process knowledge, its implementation depends on the available process information. On-line chemical analyzers are today widely spread in the mineral processing industry. A real-time concentration measurement of chemical components is valuable information that could bring control strategies to whole new levels. However, the use of these measures rarely reaches anything more than process monitoring. The reason is simple: the on-line chemical measurements quality is most of the time insufficient to be directly included in control strategies. The choice is then made to let the critical eye of the engineer or the operator appreciates the measurements before making any decision based on it.Data reconciliation through mass balance is a technique today widely used in the mineral processing industry to increase the accuracy and the reliability of plant data, mainly for accounting and survey analysis purposes. Real-time data reconciliation of on-line measurements appears as a natural coupling of technologies that could bring new process optimization trends. Once overcome the technical difficulties, full valorization of the instrumentation investment could be reached.This paper presents the application of real-time data reconciliation for process control and performance monitoring. It proposes a general approach, discusses challenges and illustrates concepts with industry experiences."

Jan 1, 2006

By L. C. S. Dharmasiri, S. M. Shin, A. Senaputra, J. S. Sohn, K. H. Park, J. Avraamides

Reducing agents can be applied to leach metal values from natural and secondary resources such as laterite ores and deep sea manganese nodules and recycled materials such as spent batteries / catalysts which contain high-valent metal oxides of manganese, cobalt and iron. Selective leaching of some metals can be achieved by selecting conditions to control the saturated solubility and dissolution rates of metals from oxides or mixed metal/oxide matrices. The leaching results are rationalized on the basis of chemical species, Eh-pH diagrams and heterogeneous kinetic models. The role of reducing agents such as hydrogen peroxide, sulfur dioxide and iron(II) sulphate, in acid, alkali and in the presence of complexing ligands such as ammonia for the improvement of the leaching of metal oxides and metals is discussed. Previous studies on acid leaching of metals from nickel laterites, manganese nodules and spent catalysts/batteries in the absence or presence of reducing agents show that the rate controlling step involves the diffusion of protons through a thickening product layer on the particle being leached. It is shown that the leaching of nickel and cobalt from manganese nodules and zinc-carbon batteries in ammoniacal sulphur dioxide solutions also obey shrinking core kinetics.

Jan 1, 2014

By D. Richardson

Presentation Objectives ?Demonstrate the utility of 3D modelling for visualizing exploration data ?Demonstrate the target generation ability of 3D model query methods Exploration Criteria -Example Given the Geology of Sudbury What Are Our Exploration Criteria? (selected examples) ?Geometry ?Trends ?Lithology ?Proximity to Sulphides ?Length and Grade of Anomalous Mineralization ?Distance from Footwall In Addition ?Geophysical Criteria ?Economic Criteria ?Amount of Available Space ? Depth

May 1, 2006

By C. Graham

Thin Spray-On Liners (TSLs) have been researched and in development for over two decades and yet their fully functional and widely justifiable application in mining has yet to be achieved. While the explanation for this is partly technical, it is also clear that proving and communicating the operational and economic case for why a mine should change from mesh or shotcrete liners to a TSL is not a trivial matter. Evidence must be presented and communicated effectively, that is both obvious and compelling for a mine operator. The paper describes recent work carried out and directed towards this end, with funding from CAMIRO?s Deep Mining Research Consortium and additional support from 3M Canada and ABB Canada. The essential progress that has been, or is in the process of being made, will be described in providing the necessary proof of acceptable or superior TSL performance in the following areas: polymer formulation, health and safety, geotechnical specification, robotic liner application, business case economics and yielding ground support effectiveness. Future plans are also presented to demonstrate the performance of a new 3M composite TSL/yielding bolt support system in underground trials where the substrate rock is intended to fail through a number of mining-induced mechanisms.

Aug 1, 2013

By G. R. Addie

"In February, 1975, the President of Georgia Iron Works Company, Mr. Tom Hagler decided to build a new hydraulic laboratory to water performance test all of the companies' centrifugal slurry pumps.Equipment procurement started in March, 1975, by ordering of a mini computer data acquisition system.Work commenced on the lab in July, 1976, by erection of a Butler Building and the laying down of a 20,000 gallon concrete sump.By late October, a facility compromising two water test loops of 8"" and 18"" pipe diameter was in operation carrying out head quantity and suction performance tests on pumps up to 16"" in size.In August of the following year, an 8"" diameter pipe slurry loop was installed to enable pipe friction and deposition velocity of a slurry to be measured in an 8"" inside diameter pipe.With the encouragement of Reserve Mining in Minnesota and IMCC in Florida, this was followed in March, 1978, by the addition of over 300 feet of 18"" diameter pipe to make up an 18"" diameter pipe slurry system complete with head loss and deposition velocity observation sections.The office and shop areas of the lab were again expanded in April, 1978, to provide further expansion to the test sections and staff facilities."

Jan 1, 1980

By K. Nasrallah

"The Dumont deposit is a large (1,179 Mt proven and probable reserve) low grade (0.27% nickel), nickel sulphide project located in the Abitibi region 25km west of Amos, Quebec. Royal Nickel Corporation acquired the project in 2007 and has since taken the project from a scoping study in 2010 through to completing the feasibility study in July 2013.The Dumont deposit in a nickel deposit with the recoverable nickel contained in three minerals; pentlandite, haezlewoodite and awaruite. The minerals are recovered by a combination of flotation and magnetic separation. Over the course of the studies many flowsheet design decisions and changes were made. This paper outlines an overview of the project, flowsheet design including the comminution circuit, desliming and awaruite recovery. The overall resulting flowsheet that was used for the feasibility study is then presented along with the confirmatory locked cycle testing that showed the feasibility design basis was able to produce the predicted concentrate grade and recovery.IntroductionRoyal Nickel Corporation (RNC) is a mineral resource company headquartered in Toronto, Canada, primarily focused on the exploration, evaluation, development and acquisition of base metal and platinum group metal properties. RNC's principal asset is the Dumont Nickel project (Dumont project) located in the established Abitibi mining camp, 25 km northwest of Amos, Quebec. RNC acquired a 100% interest in the Dumont property in 2007. The mineral claims covering the Dumont deposit are currently held 98% by RNC and 2% by Ressources Québec.The Dumont project is located in the province of Quebec in the municipalities of Launay and Trécesson approximately 25 km by road northwest of the city of Amos, 60 km northeast of the industrial and mining city of Rouyn-Noranda and 70 km northwest of the city of Val d’Or."

Jan 1, 2016

By Dave Bulled

"This paper describes the design of a molybdenite flotation circuit using FLEET technology applied to kinetics data produced from laboratory flotation testing and distributed across the blocks of a mine plan using a geostatistical approach. The geostatistics assigned the statistical error that arises from having a limited amount of sample testing data to the kinetics estimates of each block of ore in the mine plan. The final design then included a quantification of risk based on the accuracy of the block flotation kinetics and model fitting. The design made reference to the extensive technical reports describing earlier metallurgical test work including some pilot plant work over thirty years ago.The testing involved conducting MinnovEX Flotation Tests (MFT) to determine the rougher flotation kinetics at the specified reagent conditions and rougher-cleaner tests to determine the change in kinetics resulting from regrind. These flotation kinetics were used within FLEET simulations to create a full-scale flowsheet and plant design including recommended equipment sizes and the forecast of operating results. Measurement of detailed flotation kinetics for a wide range of samples allowed the effect of size of grind and efficiency of classification (i.e. width of size distribution) to be predicted for the whole ore body.INTRODUCTIONAdanac Moly Corp. proposed to develop a 20,000 ton per day mill to produce high quality molybdenite concentrate from its Ruby Creek resource in north-western British Columbia. It is a relatively clean low grade porphyry-monzonite occurrence containing minimal quantities of other sulphides such as chalcopyrite, pyrite, sphalerite and galena. Molybdenite occurs mainly as coarse flakes with lesser amounts of finer sized values. An optimum plant design was required to can achieve the predicted operating results, at a known level of risk, while treating the variability inherent in the ore body."

Jan 1, 2007

By F. Channier

The paper provides the most recent information on the construction of the AP60 phase 1 plant of Jonquiere which is due to be commissioned and started up in the first quarter of 2013. HSE management on site by RTA, and cooperation with local equipment manufacturers and contractors of the Saguenay-Lac Saint Jean region are highlighted in this section. The AP60 phase 1 Jonquiere plant aims to demonstrate of the AP60 technology at an industrial scale and allows the further developments of the AP60 cell. The advantages of the AP60 cell technology in terms of productivity, power consumption and environmental footprint are also briefly presented in the paper.

Jan 1, 2011

By Peter Wells, Adrian Sabau, Turgut Yalcin

"The nickel ores of Sudbury contain substantial amounts of the gangue mineral pyrrhotite (Fe7S&) which causes certain diflculties in the milling of these ores. This paper proposes a process called “magnetoflotation” as an effective means of dealing with pyrrhotite. The method reduces the pyrrhotite content of concentrates by applying a magneticjield on the path product as it leaves the flotation cell.Successful performance of magnetoflotation requires the optimization of several variables. In this study, three of the variables (air flowrate, collector concentration, pother concentration) were investigated by Box- Wilson experimental design, and others (magnet speed, grind size, pulp density, flotation time) were examined individually. The process was tested on a Falconbridge nickel ore, assaying 1.92% Ni, and under the best operating conditions, a concentrate was obtained with 13.56% Ni grade and 74.32% recovery in a single step. Further improvements to grade and recovery were possible by cleaning and scavenging. The same ore was also tested with conventional methods for comparison, and results indicated that magnetoflotation performed better.INTRODUCTION“Magnetoflotation” refers to the process of carrying out magnetic separation and flotation simultaneously within the same device, and is intended to prevent magnetic minerals from reporting to the froth products while non-magnetic minerals are being floated. Typical cases where this method might be beneficial include the processing of magnetite and nickel ores. Its use on magnetite ores has been reported elsewhere [Yalcin, 1992; Yalcin, 19931. This paper describes its application to nickel ores, more specifically to the nickel ore of Falconbridge Limited in Sudbury."

Jan 1, 1999

By R. H. Schonewille

One of the many challenges in developing new metallurgical processes is choosing the best option for validating process design parameters and establishing the process operating window. Historically this has been achieved by constructing pilot or demonstration plants of considerable size and complexity, to enable integrated operation of all key process units for a significant duration. While this would appear to be the best option for minimizing technical risk, it is often impractical from a perspective of cost, schedule, resources or bulk sample acquisition. Such an undertaking can even provide a false sense of security, as the optics of running a complete scaled-down version of a commercial plant suggest a high level of process understanding, regardless of the challenges encountered during operation. Xstrata Nickel has undertaken numerous process development and improvement projects over the past 15 years to support green field project development and continuous improvement in existing operations. The approaches used have included; computer simulation, cold flow modeling, construction of pilot test units in third party facilities, commercial plant referencing and the more conventional construction of integrated test plants. Regardless of the strategy employed, the keys to success have included; managing stakeholder expectations, involving the commercial plant design engineers in the planning stage, anticipating subsequent data and sample requirements and most importantly, constructing and operating complex demonstration plants only as a last resort. This paper provides examples of various process development approaches used by Xstrata Nickel and discusses the rationale specific to each project.

Jan 1, 2011

By Emmanuel Henry

Few industries are more challenged by technical, political and market uncertainty than the mineral industry. Technical uncertainty in mining projects concerns the volume and quality of the resource, the processing and metallurgical parameters, the production efficiency, etc. Political uncertainty can take diverse forms and includes possibilities of change in the taxation system, risk of expropriation and risk of social instability or war. Market uncertainty depends on the market structure of the commodity; price and demand volatilities are the most common sources of market uncertainty. Intensive feasibility studies including these uncertainties and risks are required before investing up to billions of dollars in the development of a new mine. Current feasibility studies are often based on a single (or very few) mean geological scenario and simplified price profiles along the life of the project. Yet, strategic decisions, for example, the level of investment in exploration and metallurgical studies, adoption of a flexible, but more costly, mine design and risk-sharing strategies are made at an early stage. Over the last twenty years, Real Option theory has emerged as a unifying framework enabling strategic planning under uncertainty (technical, political and market). Geological and market variances (second order statistics) are pivotal for proper uncertainty quantification. The present study explores the possible benefits of combining modern geostatistical tools and financial techniques for project management. More precisely, the following questions are examined: Is geological uncertainty really an issue? Can we combine geological and price uncertainties in a unifying Real Option framework? A simple example aimed at illustrating the concepts involved is presented.

May 1, 2003