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By S. A. Tims

INTRODUCTION The Falconbridge mine ore body extends about 1.6 km (1 mile) in length and the deepest developed ore is on the 6050 level below surface. The ore zone varies in width from a few inches to over 30 m (100 ft) and the average width is 4.9 m (16 ft). Access levels are driven in the ore at 53.3-m (175-ft) intervals. The principal method of mining is overhand longitudinal cut-¬and-fill. Prior to 1962 timber square-set stoping as a secondary extraction method was used for about 15% of the total production. Undercut-and-fill was intro¬duced at Falconbridge in 1962 as a potential replace¬ment for the square-set method in heavy ground. The undercut-and-fill method was developed by Inco in the 1950s, its principal application being to transverse pillar mining. Falconbridge made modifications to this method. A feature of the mine is the No. 1 flat fault which dips 0.79 rad (45°) towards the northeast. The main characteristic of the fault is the presence of large swells of ore directly under the plane of the fault. The ground under the fault area is highly fractured and associated with massive sulfides. In the past, the ore under the fault was recovered, with difficulty, by either tight cut¬and-fill or square-set stoping. In the 1970s these meth¬ods were supplanted to a large degree by the under-cut-¬and-fill method. An advantage of the current undercut-and-fill method which uses cemented fill compared to the cut-and-fill and square-set methods is the reduction of dilution due to better control of the walls. At Falconbridge mine, it is estimated that the grade of ore produced by undercut¬and-fill is improved by approximately 10% over other methods. Where undercut-and-fill is used in very weak ground, a much greater improvement in grade can be expected. Table I shows mining production for 1974. The undercut-and-fill method was first used at Falconbridge during 1962. The first longitudinal stope was prepared for undercutting by laying down laminated beams the length of the stope and installing a lagging mat floor on top of the beams. Unconsolidated tailings fill was poured on top of the mat floor. As the cut ad¬vanced under the floor, heavy posts were placed under the laminated beams at 1.8-m (6-ft) intervals. During 1966, a radical change was made to the method when tailings fill, consolidated with portland cement, replaced the unconsolidated fill. This development eliminated the laminated beams and heavy mat floor and greatly im¬proved the stability of the stope. This system, with minor variations, is currently used at Falconbridge mine. APPLICATION The undercut-and-fill method is used to mine in¬competent ground, sills or floor pillars under mined-out levels, or a block of ore isolated between levels. It is occasionally used to advantage in sequencing produc¬tion from various mining blocks. This is done by mining a block of ore cut-and-fill method and at the same time mining the ore block directly underneath by the under¬cut-and-fill method. The undercut-and-fill mill holes at Falconbridge are either boreholes, stripped timbered raises, or steel mill holes. Boreholes and rock raises tend to slough in heavy and broken ground which increases dilution when sloughing exceeds the ore width outline and also in¬creases the difficulty of moving down to start the new cut. For example, in one installation, a 1.2-m (4-ft) diam borehole sloughed to a size of 3.7 x 5.5 m (12 x 18 ft). The undercut-and-fill method usually requires a mill hole extending from the level below the ore to the top horizon of the ore block. The customary methods of providing a mill hole are: 1) A borehole is driven from level to level through the ore block and a chute installed on the bottom level (Fig. 1). 2) An existing raise is used as a mill hole. If the raise is timbered, a steel mill hole is installed inside the timber and tailings fill poured around the steel mill hole (Fig. 1). 3) An existing steel mill hole, situated at one end of a mined-out stope, is used as the mill hole for an ad¬jacent undercut-and-fill ore block. The mill hole posi¬tion is determined when planning the mining sequence of the first stope (Fig. 2).

Jan 1, 1982

By Richard W. Brummett

Problems in new strip mine development is a subject that could require several days to cover adequately. Coupled with the fertile imagination of television writers, we could probably expand it into a series rivaling Gunsmoke in longevity with just as many shootouts at sundown. It would-of course-be subject to a high Neilson Rating. To bring the subject into perspective, we will limit the comments to a general discussion covering western strip coal developments. Stimulated by increased demand for low sulfur coal, surface mineable western coal operations began a shift into high gear approximately four years ago. Then came last year's "energy crisis" that increased the pressure on coal development not only in the west, but nationwide. Several eastern power plants having dual oil and coal burning facilities were directed to discontinue using oil. Also, a number of new south and southwestern power plants scheduled to burn natural gas or of I commenced an ordered conversion to other fuels, namely, coal. The involved utilities with reserve positions accelerated their planning while others began the search for long-term commitments from coal producing companies. In addition, announcements were made for proposed mine mouth coal gasification projects in New Mexico, Wyoming, and North Dakota.

Jan 1, 1974

By Michael Robert Hodson

I. Introduction The free market cash price of aluminium in the third quarter of 1985 is approximately $1000/tonne, well below the short as well as the long run marginal costs of production. The current disparity between marginal costs and price, as well as the pattern of prices since their high level in 1980, has led many economists to question whether prices are governed by the 'fundamentals'. Prices, some would argue, are the result of speculation; and speculation is irrational, little influenced by the fundamentals of the industry. The object of this paper is first to examine the relation between the fundamentals and price. A number of simple models are formulated and some empirical evidence is given to show that prices are not very different from costs. There are good reasons why costs and prices have fallen since 1980. Second, the connection is drawn between the fundamentals and speculation. To do this the concept of 'rational expectations' is defined and applied to a model of the aluminium industry. Then speculation is introduced into the model and the characteristics of the solution are examined. The object is to discover the new factors that determine prices and the basic change in the nature of the solution that is caused by speculation. 2. Prices and the Simple Supply-Demand Model Consider a simple model of the aluminium industry. Demand, D, is determined by economic activity, A, given exogenously, and inversely by the price, P. Supply, Q, is determined by the inverse of the rnarginal cost curve, and so varies inversely with exogenous factor costs, C, and directly with price. Price is determined by the equality of supply and demand. Given the equilibrium level of demand, price in this model is equal to the rnarginal cost of producing the required level of demand, P = MC (Dl. Algebraically, [ ] How well does this simple model explain the change in prices during the last five years? Table I shows the LME cash price and the estimated marginal cost of producing consumption during the second quarters of 1980 through 1985. The figures in the table show that price and the marginal cost of supplying demand both fell between 1980 and 1982, rose in 1983 and by 1985 had fallen again. Only in 1984 is the direction of change different. And during the 1980 to 1985 period, marginal costs fell by approximately $560/tonne while the LME cash price fell by $678/tonne. There is a correspondence between the fundamentals of cost and price over most of the individual years and the period as a whole.

Jan 1, 1986

By Russell L. Wood

Introduction It is the morning after and there is one monumental hangover among many, if not most, of the oil companies that invested in mining in the past decade. How an oil company looks at mining depends on the time period. A few years back, around the time of investment, they were probably looking at a balance sheet of their own that was beginning to go wild. Many of their commodity prices already increased two-, three-, or fourfold, with no end in sight. There was a need to invest their earnings someplace before the stockholders or the government got too interested. And that someplace needed to be an industry where their own management skills could be applied. In mining there was an industry amazingly similar to their own. Both worked with nonrenewable natural resources, dealt with the same types of government agencies, and had the same type of critics and pressures from the general population. Oil executives saw mining as an industry that was somewhat backward as compared with their own. They also saw how a generous ration of the capital and management skills, so handsomely bestowed upon the oil industry, could be used to great advantage. But, looking at mining through the eyes of an oil company today, this is what might be seen: • An industry that has been spectacularly unprofitable for the past few years; • An industry of many commodities, any of which can go bad on short notice for protracted periods, for a variety of unpredictable and uncontrollable reasons, or for no reason at all; • A labor-intensive industry, often beset by labor problems. And with only limited potential for further economic mechanization or automation in today's primitive mining environment; • An industry confronted with external, foreign, and political problems, with no reasonable expectation of near-term relief; and • An industry that does not appear to have many "up" periods in its immediate future. And, there is little chance for either big, fast bucks or long periods of large, steady earnings. What Went Wrong? The visions of a few years back seemed as correct then as today's viewpoints seem to be now. What happened to change these views? What went wrong? The simplest and easiest answer is that if the economy was normal back then, nothing would have gone wrong. This is an easy answer but, unfortunately, probably incorrect. Let us take a broad overview. Certain events enabled and prompted oil companies to invest heavily in mining. These same events were major factors in precipitating the worldwide recession that has grievously injured mining and has brought those mining investments into disrepute. Taking a somewhat narrower, but still broad overview, the simi-

Jan 3, 1985

By Daniel H. Knepper

Estimating the lithologic composition of gravel deposits for aggregate quality using standard field and laboratory techniques is costly and time-consuming. As an alternative, digital geologic maps and elevation models may provide a means for predicting the lithologic composition of channel and terrace deposits. Digital geologic maps can be used to evaluate the distribution of map units: their geomorphic setting, and the physical properties of the gravel source. To test this concept, the lithologies and topography of the upper drainage basin of the Big Thompson River along the Colorado Front Range were used to examine various factors that may control the final lithologic composition of channel and terrace gravels downstream. The simplest factor is the area of each of the map units in the upper drainage basin area, which can be easily measured from the digital geologic map. The percentage of each map unit within the total area provides a estimate of the pro- portions of each map unit that might be expected to occur in the downstream gravels. Published estimates of the hardness and durability of each map unit were used to calculate physical property-weighted areas; these areas are an estimate of the potential of each unit to be eroded and transported as gravel-sized particles. The areas of each map unit at 1-kilometer intervals from the drainage basin exit point were used to calculate a distance-weighted area for each map unit. For this study, a simple inverse relationship (area/distance) was used for distance weighting, but a more complicated distance function may ultimately be required. The topographic setting of exposed rock units should exert a significant influence on whether material will move slowly or rapidly through the drainage system. Two topographic factors were examined: gradient and slope. A simple gradient between map unit occurrences and the exit point of the drainage basin was used to calculate a gradient-weighted area estimate for each map unit. The slope-weighted area estimate uses the slope steepness (in degrees) in the immediate vicinity of each map unit occurrence as a measure of the tendency of material to begin moving into the sediment transport system. The primary intent of this study was to test the concept of using digital geologic map and elevation images to estimate gravel composition, rather than actually producing a useful analysis of a drainage basin. Each of the controlling factors was examined independently to gain an understanding of the magnitude of the effect of each factor. Ultimately, a comprehensive predictive model will be constructed using a combination of the various controlling factors.

Jan 1, 2001

By David Whitehead

My qualification to speak on the globalization of the the mining industry comes from having worked in the industry in Europe, North and South America, Africa and Australasia in positions ranging from exploration geologist to chief executive. For about a third of my career I have lived and worked in the Southern Hemisphere. And for much of the rest of my career I have been involved in or responsible for activities in the Southern Hemisphere. This has given me the opportunity to experience globalization from the sharp end, as it were. This means speaking English with an Australian accent, Spanish with a Chilean accent, French with a West African accent and Dutch with an English accent. My topic is globalization, especially of the mining industry from a Southern Hemisphere perspective and specifically the experience and history of Gencor in that context. First, I will say a little about what globalization means to the southern part of the world: How and why the South differs from the North and how the challenge of globalization affects a south-based company differently than a northern one. I will also detail how Gencor has made significant progress in globalizing through the acquisition of mining assets from Shell. As Fig. 1 shows, I have divided up the world into northern and southern components, rather than hemispheres. The southern world comprises mainly countries that have emerged from the status of economic - if not political - colonies of nations such as England, Spain, Portugal, France, the Netherlands and, surprisingly, Italy and Germany. I have not considered the Indochinese and Arabian peninsulas in my southern world. The emergence of the. former is still in its early stages while the latter is clearly a part of the northern economic system. Large parts of Africa and South America are geometrically in the Northern Hemisphere but economically in the southern world. The reverse is the case for the IndoPersian peninsula. With the distinguished exception of Australia and South Africa, most of these countries nationalized their mining industries and mineral patrimony after attaining political independence. A major element of the globalization of the mining industry is related to the privatization of the mining industry in these countries and to the opening up of their min¬eral patrimony to non-national exploitation. The Southern Hemisphere is the watery part of the world. It is almost three quarters ocean as against a slight preponderance of land in the north. Economically, ocean areas have only a fraction of the productivity of land, except in a few oil-rich areas like the Gulf of Mexico and the North Sea. The consequence is that even on an economically level playing field we would expect the south to generate only about one third of the world's economic product.

Jan 1, 1997

By J. W. Rinard

This paper is intended to introduce "non engineers" to one of the more misunderstood pump performance parameters, NPSH (Net Positive Suction Head). This basic presentation and resultant review should provide a practical understanding of NPSH and what its importance is to pump operation and reliability.

Jan 1, 1996

By D. A. Elgillani

Oxidation potentials have been measured in the presence of various concentrations of cyanide, ferrocyanide, and ferricyanide and ethyl xanthate at various values of pH and related to flotation response. Eh-pH diagrams are constructed and show that the formation of surface ferric ferrocyanide is probably responsible for depression when cyanide is added. The influence of cyanide in the depression of pyrite with xanthates as collector has been the subject of many investigations (1,2,3,4,5,6), and from these studies several theories on the mechanism of depression have evolved. Wark and Cox (7) and Gaudin(8) have suggested that the depressing effect is due to a competition of cyanide ion with xanthate ion for the surface. Cook and his colleagues (9,10,11) have explained this phenomenon in terms of competition between hydrocyanic acid and xanthic acid. Sutherland (12) has shown that both of these theories describe accurately the relation between pH value and cyanide addition at constant collector addition but fail to describe the relationship, between pH value and the amount of collector required to cause flotation. Taggart(12) suggested that depression in these systems is due to the formation of a reaction product between ferric ion at the pyrite surface and ferrocyanide ion derived from solution. Majumdar(4,6) has attempted to prove this hypothesis by measuring the contact angles of pyrite in the presence of 25 mg/liter ethyl xanthate and different concentrations of potassium ferrocyanide and ferricyanide. In all cases the contact angles were quite high up to pH 10; these results indicate that pyrite should not be depressed by either potassium ferrocyanide or ferricyanide. In view of these facts, Majumdar has assumed that the compound Fe(CN)2 forms at the surface.

Jan 1, 1968

By C. F. Giermak

Over a considerable period of time great interest has been shown in selective dry concentration of fine ferromagnetic particles, although it is only recently that new permanent magnetic materials have been made available to permit building of such permanent magnetic separators. It is well known that the conventional drum separator does' not efficiently separate fine materials. The centrifugal force on any drum acts in accordance with the particle size and gravity, which may beat varying magnitude-.opposite to the magnetic force, especially when the material is not closely sized. The Magnetic-Mechanical Separator (MMS) is designed for the concentration of fine, unsized magnetic materials where the percentage composition of magnetics to nonmagnetics, or the nature and texture of the materials, is such that its unique agitation and shake-out action with no centrifugal force provides greater efficiency than is obtainable by conventional magnetic separation equipment. This machine consists of a complete double belt conveyor unit with a premagnetizing Axial Pole Agitating Pulley at the feeding end of the lower conveyor belt and a special agitating concentrator magnet above the lower belt of the upper conveyor.

Jan 1, 1965

By A. L. Hauff

As US Coal producers are looking more and more to the international markets, they face the complex job of planning and managing transportation logistics which make effective use of production capabilities, considers the various contract requirements to be fulfilled, Train, Truck and Vessel capacities, port restraints, etc. Pulling all the necessary pieces of information together to allow proper planning throughout the supply chain is often a time consuming, manual but necessary task. This paper will discuss the various constraints, requirements and considerations to supplying coal to a global market.

Jan 1, 2012

By Donald E. Ralston, William B. Seward, Washington Bernard, William J. Halvorsen, Richard P. Killmeyer, Kelvin K. Wu, Peter Phillips, John N. Murphy, W. H. Mullins

Despite a recession that's crippling many US industries, and a UMW strike that wasn't supposed to happen, 1981 was a fairly good year for the coal industry. The big news was record-high exports. Queues of colliers waited for weeks at Hampton Roads, VA, and Baltimore, MD, to load coal destined for Europe and the Far East. Private industry and city governments began scrambling for a share of the export boom, and port developments were planned in nearly every coastal state. Coal exports jumped from about 82 Mt (90 million st) in 1980 to a record 83 Mt (92 million st) in 1981, according to the National Coal Association. NCA projects exports to remain at this level 1982. The following statistics illustrate industry performance in other areas: • Demand by domestic utilities and overseas customers was so strong that total US consumption reached 760 Mt (838 million st) in 1981. DOE predicts another record year in 1982, with consumption forecast at 804 Mt (886 million st). • 1981 production of 730 Mt (805 million st) was just slightly below the record high of 748 Mt (824 million st) in 1980, "a remarkable figure considering that UMW production was shut off for 72 days during 1981," says NCA President Carl Bagge. Production in 1982 should set a new record, 800 Mt (880 million st). • Eastern coal production fell 7.4%, while western production-largely unaffected by the UMW strike-rose almost 10%. NCA says eastern output will rise almost 12% to 538 Mt (593 million st) in 1982, and western production will increase by 6.6% to 266 Mt (293 million st). • Production per manhour is improving. After the strike, weekly production hit the 16 Mt (18 million st) mark and has approached the 18 Mt (20 million st) per week level. •Coal's share of the US electric generation market increased from 51% in 1980 to 53% in 1981. Electric utilities are coal's biggest customer, and their financial situation is precarious. Inflation has thwarted necessary expansion plans, while shifting environmental regulations have played havoc with construction costs. Utilities increased power sales by only 2.5% in 1981; NCA predicts that utility coal use will increase 4% in 1982. The Association's long-range forecast indicates that growth in electricity demand in the immediate future will be much lower than in the 1960s and 70s. Administration Impact Industry optimism following the election of Ronald Reagan and a Republican-dominated Senate didn't survive the year. One bright spot was the appointment of James Watt as Interior Secretary, and his promises to review surface mining regulations and resume leasing. The administration, however, has declined to support federal eminent domain for slurry pipelines and expects port users to foot most of the bill for expansions and improvements. It has also drastically reduced government financial support for synthetic fuels. The outlook for synfuels-one of three major markets for coal-has

Jan 5, 1982

By W. J. Schlitt

Introduction Heap and dump leaching are low-cost metal production techniques that are gaining in popularity among gold and copper producers. However, the flow of solution in heaps and dumps has received little attention in the literature. This is unfortunate since solution flow is one of the few parameters subject to operator control. Thus, solution management may well influence both operating costs and plant performance. Costs aside, there are two important aspects of solution flow to be considered -the metallurgical and the hydrological. Some of the metallurgical factors have recently been discussed (Jackson and Ream, 1980; Schlitt, 1984; Schlitt and Nicolai, 1987). These cover solution application rates and methods, irrigation rates, leach-rest cycles, and nonvertical solution flow. According to Caldwell and Moss (1985), however, the hydrological aspects may be more significant than the metallurgical ones. In particular, a phreatic surface will form when excessive flow leads to an accumulation of water and the associated buildup of pore pressure within the rock pile. Such internal flooding can either originate at the foundation or at some other zone of very low permeability. The latter condition gives rise to an impounded volume of solution, i.e., a perched water table (see Whiting, 1985). Caldwell and Moss point out that a rising zone of saturation is probably the most common cause of dump failures. Of course, such failures have even occurred in heaps that were carefully prepared for leaching (Milligan and Engelhardt, 1984). Thus, flooded conditions and perched water tables represent an important safety consideration as well as having an impact on metallurgical performance. The following sections describe a case history in which a perched water table developed within a copper leach dump. The description includes background information, solution flow rates, and metallurgical data. Then this situation is compared to one involving normal drainage. Description of the leach system The leach dump in the case history is located at a shutdown open pit copper mine. It was built in two lifts, with the second added some 20 years after the first. There is little detailed information available on the initial lift. It was built with rail¬hauled waste and was generally less than 30 m (100 ft) high at the crest. The area available for leaching was about 120 m (400 ft) wide and more than 380 m (1250 ft) long. The dump surface was prepared for leaching by dozing ponds approximately 12 m by 12 m by 2.5 to 3.0 m deep (40 ft by 40 ft by 8 to 10 ft). The ponds were leached by flooding with barren leach solution returned from a scrap iron cementation plant. Based on mill feed at the time, the average waste grade was probably close to 0.4% Cu. The first lift leached well. It accepted high flows, which together with the waste grade, produced a rich pregnant leach solution (PLS). Old records indicate a PLS of "50 lb Cu/ 1000 gal," or about 6 g/L. As later drilling would indicate, such a high tenor led to dissolution of considerable scrap iron that was returned to the dump. The iron then hydrolyzed and settled out on the pond bottoms. In addition, the waste settled substantially so that the unleached crest was 3.0 to 4.5 m (10 to 15 ft) above the ponded area. Eventually, the leachable copper was extracted and the dump became less permeable. Thus, the PLS tenor dropped until it became uneconomical. About ten years later, mining resumed and the decision was made to add another lift to the dump. This was done without giving much thought to a subsequent leach operation. Hence a 24-m (80-ft) lift was built on top of the original dump. The surface of the latter was not prepared in any way, e.g., by leveling and/or deep ripping, prior to over-dumping. Examination of subsequent drill cuttings indicated that the new lift contained about 0.2% Cu, with chalcopyrite and chalcocite (50:50) being the predominant copper minerals. Most of the chalcocite occurred as rimming on the abundant pyrite, with the pyrite to chalcopyrite ratio estimated at 10 to 1. The use of 100- and 120-ton trucks for haulage caused some waste compaction during emplacement. In addition, the host rock itself was relatively soft, being a porphyry intrusive material that was partially altered to clay. As a result of the initial compaction and clay swelling, the rate of water percolation from the new leach ponds was slow and the ponds often contained considerable standing water. Even frequent ripping failed to provide a sustained improvement in the percolation rate. The poor surface permeability was exacerbated by hydrolysis of iron salts which settled as a layer on the pond bottoms. Partly as a result of the permeability problems, metallurgical performance was not up to expectations. These had been based on laboratory tests which showed about 20% copper solubilization in two weeks. Continued copper extraction in the tests also suggested that a substantial percentage of the copper would eventually be recovered. However, the PLS grade in the actual operation peaked briefly at about 0.48 g/L Cu (4 lb Cu/1000 gal), then declined to a range of only 0.24 to 0.36 g/L Cu (2 to 3 lb Cu/1000 gal). The poor leaching was traced to a lack of oxidation of the sulfides. There were two principal observations supporting this conclusion. First, there was no evidence of any heat being generated within the dump. As discussed elsewhere (Schlitt and Jackson, 1981; Hiskey and Schlitt, 1982), pyrite oxidation is quite exothermic and the high pyrite content of the waste should have led to an increase in the temperature of the leach solution as it percolated through the rock pile. Second, there was no sign of any natural convective air flow through the dump.

Jan 1, 1987

By William T. Jr. Renfroe, Donald C. Gipe

INTRODUCTION Historically, pollution control in the metal-ore mining industry has been very limited. Unless mine water contained large quantities of solids, it was generally discharged without any treatment. If treatment was used to control solids, it was principally the provision of a settling basin in the form of a tailings impoundment used in conjunction with an associated metal ore dressing facility. Recently, however, a growing awareness of the adverse environmental impacts of mine drainage, coupled with strict environmental laws, has prompted the mining industry to look at new technologies and to refine the existing methods to further treat the wastes generated. This industry is unique in that waste loadings are extremely variable, and a "typical facility with typical waste loads" does not exist. Consequently, one waste- water treatment system cannot be utilized on an industry wide basis; rather, each treatment system must be designed specifically for the pollutants in each individual discharge. Public Law 92-500, the Federal Water Pollution Control Act (FWPCA) Amendments of 1972, became effective on Oct. 18, 1972. This law completely restructured Federal laws and philosophies underlying the Federal approach to water pollution control. Prior to the 1972 amendments, the principal Federal regulatory tool had been water-quality standards based on a designated use for a particular body of water. The concept was that waste disposal into water bodies is a desirable and acceptable use of the water body if it does not interfere with other beneficial uses. This had the effect of requiring various degrees of treatment and, consequently, various economic hardships on industries de- pendent upon their location. In many waterways. it is very difficult to quantitatively relate discharges to water quality. The 1972 amendments changed the basic philosophy, as stated in the Senate Committee report on the bill, to ". . . no one has the right to pollute . . . that pollution continues because of technological limits, not because of any inherent right to use the nation's waterways for the purpose of disposing of wastes." Pursuant to Sections 301, 304(b), and 306 of the FWPCA Amendments of 1972, the US Environmental Protection Agency (EPA) was required to establish effluent standards applicable to all industrial discharges. These standards must be based upon the application of the "best practicable control technology currently avail- able" (BPT) and the application of the "best available technology economically achievable" (BAT). The BPT and BAT levels must be achieved industry-wide by July 1, 1977, and July 1, 1983, respectively. WASTE SOURCES The waste-water situation in the mining segment of the ore mining and dressing industry is unlike that encountered in most other industries. Most industries (e.g., the milling segment of this industry) utilize water in the specific processes they employ. This water frequently becomes contaminated during the process and must be treated prior to discharge. However, in the mining segment, process water normally is not utilized in the actual mining of ores (exceptions are hydraulic mining operations and dust control), but it is a natural occurrence that interferes with mining activities and must be removed before mining can commence. Water enters mines by ground-water infiltration and surface runoff, and it comes into contact with materials in the host rock, ore, and overburden. The underground mine must pump large quantities of ground water to prevent flooding of the mine. Water from surface mining operations generally occurs as a result of surface runoff of rainwater. Generally, mining operations control surface runoff through the use of diversion ditching and grading to prevent, as much as possible, excess water from entering the working area. Nevertheless, some surface runoff does come into contact with the working area and may become contaminated. The quantity of water from an .ore mine is unrelated, or only indirectly related, to production quantities. De- pending upon its quality, the mine water may require treatment before it can be discharged into the surface drainage network. The variability of water quality from mines can best be demonstrated by looking at Table 1. This table shows the range of pollutant concentrations in untreated discharges from three different categories of mines (as categorized by EPA in the development of BPT and BAT effluent standards for the metal-mining industry). Data for this table were obtained during EPA's preparation of effluent standards for this industry. The parameters shown on the table are the pollutant parameters of primary interest in this industry; blanks in the table indicate that data were not available, and the parameter is not expected to be present in significant quantities. Other pollutant parameters are present in mining waste water, but they are either incidentally removed in the treatment process or are found only in trace amounts. The three categories comprise more than 90% of the metal production value in the United States and approximately 95% of the total mine discharges. It is important to note that not all parameters are found in significant concentrations at all locations. IMPACT ON WATER QUALITY One of the most troublesome mine-drainage problems is acidity. Although generally associated with coal mining, acid mine drainage frequently occurs from other types of mines. Although the exact mechanism of acid mine drainage is not fully understood, it generally is believed that pyrite (iron sulfide, FeS,) is oxidized by oxygen (Eq. 1) or ferric iron (Eq. 2) to produce ferrous sulfate (FeSO4) and sulfuric acid (H2SO4) . The mining of ores associated with pyritic material exposes the pyrites to water and oxygen and grossly accelerates the natural oxidation processes, resulting in the significant production of acid mine drainage.

Jan 1, 1982

By Lynton B. Manssen

Introduction Net Present Value (NPV) techniques are becoming widely used in industry as a standard analytical tool in making capital budgeting decisions. However, NPV techniques are often misused in "common practice." A comparison was made between the use of NPV techniques in common practice and an Adjusted Net Present Value (ANPV) approach to capital budgeting in the financial analysis of a mining project. The comparison was made by applying both methods to a hypothetical copper project. The intent of the analysis is to provide an example for practitioners to follow when financially analyzing mining (or other) projects. To maintain the thrust of the analysis, the project has been evaluated as a stand alone, total project. No consideration has been made of the division of cash flows accruing to various owners over the life of the project. This omission will not affect the comparative nature of the analysis. This discussion assumes that the reader is familiar with present value as a concept and as a tool in capital budgeting. Finance theory has embraced NPV analysis as the correct way to evaluate capital budgeting alternatives. Many articles have been written expounding the virtues of NPV over other capital budgeting methods, such as Internal Rate of Return (IRR), Payback, Accounting Rate of Return, and others. It is not the purpose of this article to review all of the literature in this area; suffice it to say that in academic circles NPV concepts are accepted as the norm. A survey by Schall, Sundem, and Geijsbeck (1978) indicates that major US companies are finally following in academia's footsteps. Fifty-six percent of the companies responding to the survey use NPV techniques in their capital budgeting process. Further, some 86% of the companies surveyed use discounted cash flow methods (NPV or IRR) for capital budgeting decisions. This compares with a survey by Klammer (1972) that showed 57% of companies using both techniques, a considerable increase in seven years. With the increasing use of NPV techniques in industry, there are certain uses in common practice that can give misleading results. Five common errors in NPV analysis of large projects are: • No distinction is made between real and nominal cashflows. • The discount rate(s) used in the NPV analysis is not formally adjusted for risk. • There is no distinction of possible differences in the riskiness of different project cash flows; i.e., revenue vs. depreciation. • There is no recognition of the cash benefits to the project from interest tax shields (interest payments on the project's debt that are tax deductible). • There is no clear recognition of subsidies to the project from concessionary debt financing. No Distinction Between Real and Nominal Cash Flows Often, expected cash flows for a project are stated as a mixture of real (in constant dollars) and nominal (in current dollars) cash flows. For example, expected revenue cash flows may be stated in real terms and depreciation may be stated in nominal terms. If cash flows are added together to give an after tax cash flow, and this single cash stream is discounted, care must be taken to ensure that cash flows are consistently stated. All cash flows should either be stated in nominal terms or in real terms. In addition, the discount rate used must be stated in the same terms as the cash flows being discounted. Real cash flows must be discounted using real discount rates and nominal cash flows using nominal discount rates. Discount Rate Not Adjusted Numerous methods for obtaining discount rates are used in common practice. Schall and others

Jan 6, 1983

By E. P. Fahrenthold, K. E. Gray

Introduction Brine reservoirs along the Texas and Louisiana Gulf coasts are currently under study to investigate the technical and economic viability of production wells designed to extract methane gas in solution. The effect of well pressure drawdown on reservoir rock and associated overburden material is important to well performance predictions and the analysis of potential subsidence problems. Consequently a series of compaction tests have been conducted on sandstone and shale cored from a test well drilled near Hitchcock, Texas, in order to determine the variation of mechanical properties to be expected over the producing life of the formation. Previous Work The referenced tests are part of an extended study of geopressured-geothermal reservoir behavior, including compaction (Jogi, Gray, Ashman, and Thompson, 1981 and Jogi, Kalra, Gray, and Thompson, 1981) and creep (Thompson, Jogi, Gray, and Richardson, 1981) tests of reservoir rock and related reservoir performance studies (Rago, Okhuma, Seperhnoori, and Thompson, 1985). Recent work has considered the nonlinear constitutive behavior of sandstone (Fahrenthold and Gray, 1985 and 19861, while additional experimental work is reported here. Geological structure and composition of the Hitchcock field from which the core samples were obtained is discussed by Light (1985). Experimental Procedure Compaction tests were conducted on cylindrical cores, nominally 2.75 inches in length and 2 inches in diameter, with independent control of the axial, confining, and pore pressures. Axial and radial deformation of the samples were measured in tests over a range of effective stress states expected to develop over the reservoir lifetime. The term effective stress as used here refers to the algebraic difference of the total stress and pore pressure, with compression taken as positive. Three types of compaction tests were conducted on the sandstone. In the uniaxial tests, axial total stress and radial strain were held constant as the pore pressure was reduced, similating one dimensional compaction which may occur during reservoir depletion. In the triaxial tests, radial total stress and pore pressure were held constant as the axial total stress was increased, duplicating conventional rock compaction test procedures. In the pore pressure drawdown tests, axial and radial total stresses were held constant while the pore pressure was reduced, in order to investigate differences in sample response to mechanical and pore pressure loading. Compaction tests were also conducted on shale material obtained from the reservoir overburden. The field coring process provided few consolidated shale sections sufficiently large to allow preparation of samples with the dimensions described above. With additional attrition during sample preparation of this brittle material, ultimate yield of the coring effort was limited. The few available samples were tested in uniaxial and triaxial tests similar to those described above. The use of displacement transducers to measure sample deformation avoided the difficulty of strain gauge installation on this material. Test Results The sandstone and shale both demonstrated nonlinear stress-strain behavior, with hysteresis and residual strain present upon unloading. Polynomial interpolation of the stress-strain curves was used in the calculation of incremental values for the loading and unloading moduli. Figures 1 and 2 show example axial effective stress-axial strain curves for triaxial tests conducted on sandstone and shale samples. The figures plot incremental stress and strain variables, defined as deviations from the state of prestress to which the sample was subjected. The state of prestress was varied between tests in order to investigate material behavior over the entire stress and strain space of interest. Tables 1 and 2 give the incremental moduli (Young's modulus and Poisson's ratio) as a

Jan 1, 1986

By William Tattersall

On behalf of my agency, the Mine Safety and Health Administration, I would like to add my appreciation that all of you could be here today. Previous dust symposia over the years have proved the value of close cooperation among universities, government agencies, and professional societies in advancing knowledge of dust research and development in the interest of miners and the industry. I'll just comment briefly on MSHA's part of the overall effort by all parties to control miners' exposure to respirable coal dust and other airborne dusts. As you know, our agency's congressional mandate is to do what is necessary to assure that miners will have safe and healthful workplaces. In the area of coal mine health, this has meant joining with the mining community in a continuous campaign to keep respirable dust and quartz levels below applicable standards to prevent or reduce disabling coal workers' pneumoconiosis and silicosis arising from excessive exposure to respirable quartz. Currently, our agency is processing about 120,000 coal dust samples taken by MSHA and company people during the year and about 8,000 samples taken from metal and nonmetal mining operations. Our dust program, like other MSHA programs, has benefited from increased computerization of records. The attack on CWP has had the highest priority of government and industry. The goal has been to sharply reduce social costs of suffering victims and their families as well as the associated future payments under the black lung benefits program. During the 1989 fiscal year, about 104,000 former miners received about one and a half billion dollars in benefits. Since the program began, nearly 25 billion dollars have been paid out. Much progress has been made in lowering dust levels in coal mines since the standard of two milligrams per meter of air was established in 1972. Before that time, there was a 4-to-10-percent probability of a miner developing coal workers' pneumoconiosis at typical pre-1972 exposure levels. However, under the maximum respirable dust levels allowed today, this probability has been reduced to about 1 percent. Since average dust levels are lower today, we can expect fewer miners to develop CWP in the future. Out goal continues to be elimination of both coal workers' pneumoconiosis and silicosis in both coal and nonmetal mining. In 1985, MSHA revised its coal mine quartz policy to allow mine operators to submit dust samples used in setting the quartz standard. Previously, only single MSHA samples were used. Even though less than half of the mine operators have taken advantage of this change, it has provided a larger population of samples for analysis then before. Also the policy allows operations that are on a reduced quartz standard to have the standard reviewed every six months. In underground coal mining, the job of roof bolter typically has higher than normal exposures to quartz. About 45 percent of respirable dust samples from roof bolting operations contain more than 5 percent quartz and therefore are put on a reduced quartz standard. One objective of the policy revision was to improve miners' health by follow-up monitoring, and this is being done with roof bolting jobs. MSHA studies of surface coal mining operations have provided data showing that bulldozer operators and highwall rotary drill operators often have high exposure to quartz dust, and our agency is directing enforcement efforts to reducing this hazard. One of the most important responsibilities of MSHA's metal and nonmetal mine health division is the respirable dust sampling program. In the last few years, nearly 3 out of 10 samples have

Jan 1, 1991

By Stanley Dempsey

INTRODUCTION The mining industry has been under- going a significant restructuring for the past several years. Some firms have been liquidated. Some have been merged with other firms. A number of mining divisions of larger firms have been spun off, in some cases in leveraged buyouts by management. Recently, there have been a number of spin outs of gold subsidiaries. There are also a number of start-up situations where new firms are emerging as significant gold producers through mine development or acquisition. This restructuring has created an attractive market for specialized mining finance firms, and a number of firms have recently entered that field in the United States. These firms provide financial advisory and valuation services to mining firms and project developers, and access to venture capital. In some cases, they invest for clients or for their own account. I have been asked to describe how our firm works, and what kind of information we expect to receive when mine developers seek our assistance in financing a project. HOW WE OPERATE Denver Mining Finance works for both mine developers and investors. We also provide expert advice on mining issues to governments and to firms who are in litigation over mining issues. A lot of our work involves valuing mineral interests for various purposes. Our principal expertise is in the technical, commercial, and financial area. We help put mining deals into shape commercially so that they can be financed, and we help investors get into mining deals that are commercially sound. We work on projects, but we also advise mining firms on the structure of their business and how to make the most out of one or several mines that they might own. In addition to our work for clients, we are also prepared to invest in mining projects for our own account, and to recommend gold properties for acquisition by our parent company, Royal Gold, Inc. We are, to some extent, a venture capital firm, in that we sometimes work with projects that are not "bankablerV1 and are prepared to invest in attractive early-stage situations in mining. However, I want to emphasize that our principal focus is on development of commercially attractive mining projects that can be brought into production in the best possible financial terms. If we can make a project qualify for a project loan from a commercial bank, we will not advise the developer to use high cost venture capital. For the purpose of this paper, I will focus primarily upon our functions with respect to development of precious metal projects. In a typical case, a firm with an advanced-staged project approaches us for help with financing the final feasibility study, and construction and operation of a mine. In some cases, the developer has already developed a financing plan and wants only our access to investors. If we agree that the project is sound and that the financing scheme will be attractive to investors, we will help the developer reach investors on a commission basis. In such cases, we are particularly insistent that the financing plan and our participation meet all regulatory requirements, particularly compliance with state and federal securities laws. In most cases, however, the developer asks us for advise both on how to structure the financing, and how it can be implemented. Here we work for fees based on hourly rates for advisory work,

Jan 1, 1987

By R. K. Young

Producing a sound plant design for a major project requires hundreds of engineers and many drawings. Economical accomplishment of this task is based upon careful and orderly organization of the design team so that at all times there is a complete and workable staff but at no time a surplus of costly talent. This paper will describe the various stages in the development of plant design which normally follow the laboratory and pilot plant investigations discussed in other papers today. An outline of the procedures used in the assembling of a project design group, within an established engineering organization will be presented. Actual procedures may vary according to the size and character of the plant, the special requirements of the owner, and the make-up of the engineering organization performing the design, but most of the points covered will be found to be basic to any plant design project.

Jan 1, 1960

By Charles E. Mauk

In 1970, recognizing the great need for an economical, high capacity chemical oxidation process for wastewater treatment, Houston Research began a fundamental study of the available technology, Included was waste characterization; oxidation chemistry for molecular oxygen, ozone and catalyst initiators; kinetics of reaction; gas-liquid contacting methods; and optimization of staged reactors for mixed wastes. Although ozone is the most powerful oxidizer available, the literature contains contradictory reports of its speed and effectiveness. It is now felt to be most likely that many of these early investigations were limited by the ineffectual transfer of ozone from the gas phase into the liquid, and so the investigators were really observing the effects of mass transfer and erroneously trying to interpret the results as if they were chemical reaction data. HR's work considered the cost and effectiveness of gas-liquid contacting in a packed tower, gas sparged contactor, ejector with hold-up tank, and a completely mixed, sparged contactor. The sparged, mixed contactor was found to be most effective and least expensive, and a later investigation settled on the reactor configuration shown in Figure 1 because of its effectiveness of mass transfer and because it lends itself to direct scale-up techniques using laboratory data to design larger reactors.

Jan 1, 1975

By L. Alan Weakly

The U.S. Department of Energy (DOE) has entered into a $l.5 million Cooperative Agreement with Alpine Equipment Corporation/Astro International Corporation ("Alpine") of State College, Pennsylvania, for the evaluation of water-jet-assisted (WJA) mechanical cutting of oil shale under actual mining conditions. A commercial-sized, heavy WJA mechanical miner is being assembled based upon the successful "factory testing" of a smaller prototype miner utilizing standard tungsten-carbide and Polycrystalline Diamond Composite (POC) bits in large oil shale boulders. Actual field testing of the machine will be conducted in an oil shale mine located in the Piceance Basin of Western Colorado. In-mine logistical support is being provided by several oil shale companies through the Colorado Mining Association (CMA) and the U.S. Bureau of Mines (USBM).

Jan 1, 1990