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By B. Berhe, R. D. Lawrence, J. Hinzer

"The fortunes of mining companies and their implied value are tied to cycles - both economic and commodity – within which they operate. Hence the determination of appropriate future metal prices is one of the most critical factors faced by mineral valuators especially for advanced projects. Price, and hence revenue, is usually the most sensitive input to the valuation model. Empirical studies of past forecasts show that the success rate for commodity price forecasting is very poor. This paper explores various approaches and comments on their strengths and weaknesses. We conclude that careful evaluation of long-term metal prices is a key element and is hardly a luxury that can be left to simple averages or rules of thumb. INTRODUCTION Discounted Cash Flow (""DCF"") analysis, is well suited for the valuation of advanced mineral development assets, for which there are identified mineral resources and some form of economic assessment (Pre-Feasibility or Feasibility Study). The DCF method is also the most commonly used method for determining value for such assets. It provides a means of relating the magnitude of expected future cash flows from profits (or losses) to the magnitude of the initial cash flow (investment) needed for capital expenditures to purchase or to develop an asset for commercial production. The method proves useful in making investment decisions as it allows for the quantification of the Net Present Value (“NPV”), as well as the Internal Rate of Return (IRR) and Payback Period on initial investment capital. Valuation by its very nature is a forward-looking exercise. The DCF method attempts to estimate the NPV of expected future cash flows, by selecting factors that will likely affect future cash flow based on informed analysis. One of the most critical and sensitive factors is the determination of appropriate future commodity prices. “The variables that have the greatest impact on a DCF evaluation are the reserves, the metal prices, and the discount rate.”1 The determination of future commodity prices for valuation purpose or during M&A negotiations is a hotly contested issue. There are a number of analysts, institutions and specialized commercial data suppliers that provide both short and long-term commodities price forecasts. Also, the use of an aggregated mean for all available forecasts, or consensus forecasted prices for valuation purposes is not uncommon. The methods used in making forecasts for each forecaster may vary and in many cases may not be publically disclosed. Nonetheless, the aggregated mean of all forecasted commodity prices of reputed institutions is usually taken to “represent the market’s view of likely future commodity prices.”"

Jan 1, 2016

By Emily Sarver, Cigdem Keles, Jonathan Gonzalez

The study re-examines respirable coal mine dust samples using scanning electron microscopy (SEM) and thermogravimetric analysis (TGA). It finds that SEM tends to overpredict the abundance of dust from rock strata and underpredict coal content, possibly due to coal-mineral microagglomerates (MAGs). The findings suggest that MAGs could be valuable in improving dust controls in mines.

Feb 10, 2022

By M. R. Yalamanchili

Recently, noequilbrium electrokinetic measurements using laser-Doppler electrophoresis were reported by Miller et al. (1992) for alkali halides and the sign of their surface charge thus determined. These results are generally as expected from simplified lattice ion hydration theory with KCI, under normal circumstances, being the most significant exception. In this regard, lattice defects (F centers and oxygen imperfections) have been found to influence the surface charge of KCI and its electrophoretic mobility. In particular, the presence of oxygen defect states in the crystal lattice has been found to be responsible for KCI's unexpected behavior. The concentration of oxygen defect states in KCI, as characterized by UV/Vis absorption, was varied in order to study their influence on the electrokinetic behavior and subsequently on the flotation response of KCl. At low oxygen contents « 60 ppm) KCI is positively charged as expected from lattice ion hydration theory. However, typically, KCI contains substantial oxygen (>300 ppm) sufficient to impart a negative surface charge which accounts for the selective flotation of KCI from NaCl by hetero-coagulation with oppositely charged alkyl amine hydrochloride collector colloids.

Jan 1, 1994

The nature of adsorbed calcium carboxylates (oleate and stearate) has been investigated by in-situ/ex-situ Fourier transform infrared internal reflection spectroscopy (FTIR/IRS). Previous spectroscopic studies in alkaline solution have shown that adsorbed carboxylate is characterized by a C-O stretching vibration at about 1550 em?1 for less than monolayer coverage. Similar results were found in this study. More specifically, in this study such a singlet at 1550 cm-1 was found for LB monolayers of calcium distearate transferred as a condensed layer at a high film pressure to the surfaces of fluorite and germanium. Normally the spectrum of bulk calcium distearate reveals a doublet at 1575 and 1540 cm-1, characteristic of a three dimensional 7-fold coordination for calcium carboxylate complexes. This doublet is generally found for carboxylate multilayers formed by spontaneous adsorption at the surface of calcium minerals. In this regard, the spectral evidence suggests that whenever the calcium dicarboxylate is constrained at a surface as a condensed layer, the 7-fold coordination can not be satisfied and the surface carboxylate is forced into a two dimensional symmetrical coordination with a singlet at 1550 cm-1. On the other hand, if the Langmuir-Blodgett (LB) monolayer calcium distearate film is transferred at a low film pressure the doublet is observed. This analysis is further confirmed by the spectral results for LB transferred calcium distearate monolayers at a hydrophobic silicon surface. Even though these are condensed monolayers formed at high film pressure, the carboxylate group, oriented away from the surface, is no longer constrained by the surface force field, and thus exhibits the characteristic doublet of the bulk calcium distearate salt.

Jan 1, 1998

By F. H. Mertens

The costs of an open-pit operation can be classified according to the following hierarchy : -overall cost of production (per ton of ore) -costs of basic operations and functions -costs of auxiliary operations -costs of machines and equipment -maintenance costs. Production cost is a measure of the open-pit mine performance and should be the final target of the management control. It is also a measure of the share of the mine in the processing stages.

Jan 1, 1990

By Arthur W. T. Grimley

Hydraulic coal mining is being successfully practiced in China, U.S.S.R., Japan and Canada and in each country, excepting Japan where suitable sites are not available, the system is being expanded to either existing conventional mines or new mines. Productivity levels and economics at these mines are in all cases better than the productivities achieved in conventional mines in the same general localities. In the U.S.S.R. face productivities approaching 50 tons per man shift have been reported while in Canada the latest statistics show average face area productivity levels are in the region of 200 tons per man shift production monitor. In the United States hydraulic mining has not been actively pursued to the same degree and consequently there are no full scale hydraulic coal mines in operation or construction. Because many of the coal measures in the Western U.S.A. are generally somewhat similar to those being successfully hydraulic mined in Western Canada and parts of Siberia it is realistic to believe that successful hydraulic mines can be designed and developed in the Western U.S.A. Particularly if the vast technological base that already exists is used to improve on other people's ideas, systems, methods and equipment.

Jan 1, 1983

By Wayne L. Johnson

The depth capability of engineering seismographs has been greatly increased by the use of signal enhancement, a technique in which seismic waveforms created by repeated impacts are digitized, stored, and summed. Summation amplifies the signal and partially cancels background noise. This gives a clearer picture of the wave aid makes it possible to determine the travel tune of signals from 'eater depth. Signal enhancement combined with continuous display of waveform, permanent recording of waveform, and precision digital readout of travel time has opened new fields of application in mining and engineering. Recent work has clown that replacement sulfides can be distinguished seismically from country rock at Bistee, Ariz. Work on the Iron Range of Minnesota indication,: that, by using a 300 pound weight as the source, the Biwabik iron Formation can be traced down dip to several hundreds of feet traverses over known areas show that reflections can sometimes be identified. Reflection, if identified preclsely, give a mere accurate estimate of depth and buried topography. Comparison of ( ) and weight drop have given some understanding of low wave amplitude varies win; source candid

Jan 1, 1971

By P. G. Corser

A gold and silver open-pit mine located in northwestern Chile contracted ACZ in 1991-92 to assess the stability of their spent ore pile and to determine the cause and magnitude of cyanide contamination associated with leaching operations. The mine is a conventional open-pit located at an elevation of approximately 4,800 meters (m.) (15,744 feet). A spent ore pile is located approximately 2,000 m. southwest of the mine and approximately 1,000 m. northeast of the active pad and plant facilities. The pile was constructed on a gentle northwest slope dipping 12 to 13 degrees. The pile is bordered by a small river to the northwest and by a larger river to the northeast. Both rivers eventually flow into Bolivia. Heap leaching and processing commenced at the mine in 1988. Since 1988, nearly 6.0 million tons of ore at an average grade of 1.96 grams/ton (0.07 ounces/ton) of gold and 52 grams/ton (1.83 ounces/ton) of silver have been treated by cyanide heap leach methods with zinc (Merrill Crowe) precipitation. In approximately three years of operation, the mine has yielded more than 225,000 ounces of gold and over 1.5 million ounces of silver. Currently ore is agglomerated and hauled to the leach pad by truck and is top loaded to produce a 5-meter lift height. Four contiguous reusable (on/off) leaching pads were constructed with an asphalt layer above a carefully compacted sub-base of High Density Polyethylene (HDPE) liner and screened fines. Leach solution of pH 10-11 containing 1.2 to 1.5 gram/liter of cyanide is applied to the heap at a rate of 10 liter/hour/square meter for a total active application period of 30 days. Leached (spent) ore is transferred to the spent ore pile located approximately 1,000 meters to the northeast. The pile currently contains approximately 6 million tons of spent ore. The pile liner, which has been constructed over a prepared sub-grade consists of three geosynthetic layers (geotextile/flexible membrane liner/geotextile). Long term objectives include washing the pile to recover an additional 3 to 4 percent gold and silver.

Jan 1, 1993

By V. F. Hollister

Although it is apparent that porphyry copper deposits may have formed in the Andean orogen from Permian time onward, commercial deposits thus far developed appear to have Cenozoic ages only. Following Chilean useage, the porphyry deposits are divided into either: (a) a stockwork, or (b) a tourmaline breccia model. Stockwork type deposits tend to occur on major strike-slip structures which may be either transcurrent or transverse faults related to plate movements, while the tourmaline breccia type may more frequently form independently of regional faults. Stockwork types may be conjugate fractures that intersect and ramify as a network of veins and veinlets, cutting altered rock, and genetically related to a major regional fault, or in other cases they may reflect the intersection of two large fault structures. Circular fracture patterns may more rarely occur in stockwork deposits in response to a specific intrusive. Tourmaline breccia types are characterized by circular and radial fractures genetically connected in some way with tourmaline breccia pipe development or an intrusive piercement that preceded it. Each structural model contains mineralized intrusive8 which have a close time-space relationship to ore and in each model, mineral paragenesis is similar, regardless of age or location in the plate. Also, each model contains the same type of alterntion halos (phyllic, argillic, prophllitic) as are developed in intru- sive centers in porphyry copper deposits found in North America. The potassic zone is exposed best in the older deposits. Examples of each type of deposit are illustrated, demonstrating the feature evolved.

Jan 1, 1973

By Bahram Sameit

Blast engineers have been taking advantage of image-based rock fragmentation analysis methods for the past three decades to estimate rock size distributions. These methods utilize a range of image segmentation techniques, from manual to fully-automated, to delineate the edges of rocks in images. Rock delineation results are then converted to physical rock sizes (and percentage passing curves) by scaling the image pixels to correspond to physical measurements. The size scaling process is critical for acquiring physical measurements, but specifc to the limitations of different applications. This article starts by presenting a shovel bucket-based fragmentation analysis system, where scaling is done using the known width of the shovel bucket within the image. It will then describe methods that use pictures captured by digital cameras with scaling reference objects in the view. Finally, the article presents a method that uses three-dimensional imaging to capture images without the need for scaling reference objects.

By A. Karami

It is well established that an ordered sequencing of charge initiations in a blast pattern is an important design consideration that affects blasting performance. Delay times must be chosen such that damage to the rock mass is controlled. The accuracy of delay detonators is also of major concern. A large scatter could lead to an incorrect blast sequencing that would lead to damage to the rock mass causing increased over-break, degraded fragmentation, increased fly-rock and poor vibration control. In this study, the effect of using accurate delay detonators on the explosive energy generated is investigated. For this purpose, power spectral density of the blast vibration for delayed shots are calculated and compared with the case where holes are shot at the same time (no delay). At the end the results are presented and discussed.

Jan 1, 2000

By G. T. Lineberry

The Work Crew Performance Model (WCPM) is a method for designing, implementing, and evaluating? performance improvement strategies for machine operators and other mining personnel. The WCPM offers a practical approach for measuring job proficiency and identifying costly behaviors. It enables interventions aimed at performance improvement, especially training, to be assessed monetarily. Two interrelated elements of the WCPM are emphasized: observational techniques for establishing performance baselines and measuring performance outcomes and cost linkages between job competencies and measures related to profitability. Inter-and intra-subject differences in performance-related behaviors of regular and incidental shuttle car operators were detected during field validation of the WCPM. Downtime data were used as outcome measures to test linkages between performance error rates and cost consequences. Use of a simulation program for analyzing continuous mining face operations showed how common shuttle car operating parameters (e.g., payload, tram rate) can be used as cost-conscious indicators of performance variability and therefore as targets for performance improvement.

Jan 1, 1994

By Avula Rajashekar Yadav, Sreenivasa Rao Islavath

Barrier pillars and gateroads play a vital role for the safe exploitation of coal from the panel in the longwall workings. The barrier pillars and gateroads are subjected to the front abutment and side abutment loads during the retreat of the panel. These structures may fail if the developed load on them is higher than their strength. The stability of the longwall structures such as barrier, gateroads and face is paramount in extracting the coal from the panel safely. For this, a deep longwall mine in India is chosen for the study using a 3D numerical modelling technique. In this paper, three critical conditions such as scenario 1 (no side goaved-out panel), scenario 2 (with side goaved-out panel) and scenario 3 (with two side goaved-out panels) are taken. For each scenario, five retreat distances such as 100, 125, 150, 175 and 200 m are considered for detailed investigation. The development of vertical displacement in gateroads, vertical stresses on barriers, vertical stress concentration factor, abutment zone and yield zone for longwall face are extracted and analyzed. Also, the safety factor of the barrier and longwall face is estimated considering the Hoek–Brown rock mass failure criterion. From the study, it is observed that the maximum vertical displacement of 121 mm in TG3 at scenario 3 for a retreat distance of 200 m and a minimum vertical displacement of 33 mm in TG2 for a retreat distance of 100 m at scenario 2. The development of vertical stress on the barrier is found to be between 8.78 and 13.40 MPa, and the safety factor of the barrier lies in between 1.56 and 1.80. The study also revealed that the yield zone at the longwall face lies within 2 to 3 m.

Dec 29, 2023

By V. Z. Sun

One of the major concerns of ground control in a coal mine is safety against failure of one of three components (i.e. roof, pillar, or floor) of the mine entry. In order to better design and evaluate stability of the mine entry with a certain confidence, a reliability approach is introduced rather than using the conventional safety factor (SF) method only. Advantages of using the reliability approach is that it not only takes variability of both rock/coal properties and stress distribution into consideration, but also assesses the stability of each component and mine entry as a whole system. Therefore, it is anticipated that, by using this approach, the current ground control technology in coal mine will convey a better sense of confidence. The results of a case example show a significant influence on the current design concept and stability evaluation of mine entry.

Jan 1, 1997

By Daniel B. Brimhall

The research presented here was initiated to investigate the role of atmospheric oxygen in the leaching of copper waste dumps. The problem of increasing the recovery rate of copper from these dumps is or great importance considering there are by conservative estimate in excess of fifteen billion pounds of copper located in dumps in the western United States. At this time, there is an increased interest in recovering copper from these dumps on a large scale. Large tonnages of low-grade material are being placed on the waste dumps of most copper mining operations in the western United States each day. The size of these dumps ranges from 5.5 million tons at Mineral Park, Arizona, to 4 billion tons at Kennecott's Utah operation (1). Leach solutions are recycled and contain ferrous and ferric sulfates. Large quantities of dissolved aluminum, magnesium and calcium salts may also be present. To this solution make up water is added to maintain the solution inventory and sulfuric acid is added for pH adjustment. Iron is introduced into the leach solution by the dissolution of the iron-containing sulfide and oxidized minerals present in the ore deposit. In addition to the iron from dump leaching, iron is also introduced during the precipitation process when the pregnant solution is passed over metallic scrap iron if cementation is used to reduce the copper in solution.

Jan 1, 1972

By M. E. Rossi

Reconciliation of long-term block model reserves and mine production frequently shows significant discrepancies. This reconciliation can be done comparing the long-term block model reserves against a grade control model (generally, a model based on blast holes or production data). in this paper called an FI factor for tonnages, grade, and ounces; and also it should be done comparing the grade control model to the mill feed (or loaded to heaps) tonnages, grades and ounces (called an F2 factor). The long-term model usually contains blocks with dimensions larger than the size of the selective mining unit (SMU) of the operation. The smoothing effect of an estimator such as kriging will generally result in a grade-tonnage curve that does not match the grade-tonnage curve of the SMU's to be recovered. This problem is partly to blame for the reconciliation discrepancies found. In addition, in-pit perfect selection is impossible. and therefore the grade-tonnage predictions based on blast holes also need to be assessed, considering both unplanned dilution and the errors of estimation of the grade control model. This paper will focus on using conditional simulations to assess the uncertainty of the predicted grade-tonnage curve in terms of minable reserves, and in the framework of long-term mine planning. Quantifying the uncertainty in no uncertain terms is done in conjunction with a popular pit optimizer, which will yield not one, but several possible minable reserves, and therefore a range of possible minable tonnages and grades per pit shell or scheduled phase. This is a step further from the usual sensitivity analyses that are performed for deposit evaluation or development planning. Specifically, this approach takes into account the volume-variance relationship, the selectivity of the mining operation, planned and unplanned dilution. and carries the local uncertainty implicit in grade estimation into the mine design and mine planning phases. The motivation for the approach is discussed through an example, as well as a description of the procedures and steps involved.

Jan 1, 1998

By Thomas V. Falkie, Howard L. Hartman, Bruce R. Palmer, Donald W. Gentry, John E. Frost, Peter T. Luckie, Michael K. McCarter, Lee W. Saperstein

Education in the mineral engineering professions is in the same flux and turmoil as is the entire minerals industry. Overcapacity in some areas, undercapacity in others, and the constant fear of substitution plague education as well as industry. The exercise in long-range planning that The Society of Mining Engineers has undertaken gives an excellent opportunity to examine the problems and the opportunities in minerals engineering education. Charge to the Committee The Educational Activities Committee was asked by the Long-Range Planning Commission (LRPC) to examine SME's future role with respect to "education policy, role and organization, education department, education board, continuing education, short courses, and extension courses." This examination is timely. It follows a reorganization of SME's Education Board designed to make the Board more efficient in its operation, more responsive to the needs of education, and more active in the setting of Society policy on education. In addition, the roller-coaster cycle of boom and bust experienced by the mineral industry in the last decade has been shared by the minerals schools and has created enrollment problems that need to be addressed promptly. Within SME there is much experience on educational issues to draw from and many problems to solve. Major Premise The committee is emphatic in espousing the philosophy that SME should support, in word and in deed, the highest possible standards that can be maintained by the minerals schools. As guardians of the various mineral engineering and scientific professions (geological engineering, geophysical engineering, mineral engineering, mineral processing engineering, and mining engineering), it is appropriate for the Society to be a watchdog for academic standards. One member of the committee put it succinctly, "We need to educate engineers and technologists, not muckers." A vital and profitable minerals industry needs professionals educated by good teachers, equipped with the most modern available methods, techniques, and knowledge, and challenged by their education to be innovative contributors to their chosen profession. Such education occurs only if it takes place in an institution that is vital and challenging. SME can enhance the quality of its membership if it works to maintain the standards of the schools that graduate new members. Education does not end with the award of a degree. It is appropriate for SME to strive for continued technical quality of its membership. To this goal, SME should maintain its attention to the process of licensing professional engineers, and it must continue and expand its efforts in continuing education for the membership. Recommendations for Action The following recommendations were submitted by the committee and then amended slightly by the full commission. The recommendations have support from the SME Board. • SME Education Coordinator and Staff Department of Education - Staff support for education should be provided by someone with experience in engineering education who would be appointed as SME Education Coordinator for all educational activities: accreditation, continuing education, student affairs, and liaison with mineral schools. The Board has approved an Education Coordinator and the position has been filled. • Advisory Committee on Education - SME should recognize, by amending its committee structure, that functions important to education are filled by SME-appointed representatives to the Accreditation Board for Engineering and Technology (ABET), its Engineering Accreditation Commission (EAC), and Technology Accreditation Commission (TAC). It is suggested that these persons, plus the chairman of the Education Council, plus two other persons appointed by the SME Board, form an advisory committee on education. The Board has approved this. • Education Council - The recently organized Education Board, having full agendas for its committee meetings and having

Jan 6, 1984

By Paavo Eerola

In May of 1984, it was decided that Outokumpu Oy would design and build a new nickel flotation mill to process ore from the newly discovered Enonkoski mine in eastern Finland. Since there hart peen a number of successful process charges in the existing mills, the design effort included the study and incorporation of several new developments, including all-autogenous grinding, "flash flotation", lane cell roughing, large cell cleaning and a computer-based, profit optimizing, process control system. The paper discusses the background and results of those studies, and a description of the resulting mill which will begin production in 1986.

Jan 1, 1985

By Katzer R. Klimpel, J. Sewell

Dr. Roussey Roussev The use of chemical additives on grinding is of significant importance considering the high energy consumption of grinding processes. My research indicates that the dispersant approach explains the effects, in this particular case of wet grinding. Further, the dispersant approach combined with torque measurements give the possibility of clarifying the mechanisms involved when using grinding aids. I find the conclusions derived from the data obtained to be correct and useful for grinding. In general, I agree with the explanations. However, I would like to discuss several additional points that I consider to be important, and in the same time to mention some of my own results from investigations similar to those presented in the study under discussion. The "bed volume concept" and the change of slurry viscosity explain adequately the data plotted on fig. 3, in conjunction with Figs. 1 and 2. However, the significant increase of the average torque in the case of 83% solid with XFS-4272 introduces the necessity of establishing the optimum of percent solid when dispersant is used. For example, the optimum percent of solid for different materials varies. One of the reasons is the material's mass density. On the other hand, it is necessary to determine the concentration of the chemical used. Because of this, it would be interesting to know how the cited concentration was selected. The supportive discussion and verification by Dr. Roussev, with results similar to that of the paper, is appreciated. I will try to answer the additional questions he has raised. To begin with, the mill was fitted with six lifters of approximately one-quarter inch height. There has been extensive lab and plant level work to understand downstream influences of using dispersants like XFS-4272*. In sulfide ore processing, which is the area in which most industrial scale testing has been performed with this approach, neutral to positive influences have been observed. For example, positive effects (e.g., increased recovery) have been noticed in flotation operations involving ores that have a tendency to produce excessive slimes upon grinding. (1) Also, the use of a dispersant has been shown to demonstrate a positive influence on classification by improving the sharpness of separation and preventing a decrease in d50 value that usually accompanies increasing flow rates to classifiers.(2) The biggest potential downstream problem is in thickening, which at the dosages involved, has not been a problem in plant scale usage. The commercial price of dispersants like XFS-4272 is quite variable depending on source, concentration, etc, but a typical cost of XFS-4272 to achieve a 10% increase in throughput in industrial mills has been between 20 and 35- US per ton of feed ore (1981).

Jan 12, 1982

By P. Zhang

Previous studies have shown that separation of clay minerals from non-clay minerals is the key to economic recovery of the phosphate from the waste phosphatic clays (slime) which represent about 20- 300/0 of the phosphate mined. Small hydrocyclones of different sizes (4" and 6") were tested for sizing the slime at +10 microns in order to remove most of the clay minerals. The effect of design variables and operating parameters were evaluated. Multi-stage cycloning and the effect of dispersant were also investigated. Chemical and mineralogical analyses of different size fractions of both the underflow and overflow samples indicated satisfactorily separation efficiency.

Jan 1, 1998