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By Michael Samis

The real option valuation method is often presented as an alternative to the conventional discounted cash flow (DCF) approach because it is able to recognize additional project value due to the presence of management flexibility. However, these two valuation methods can be separated on a more fundamental level by their differences in risk discounting. Real option valuation applies the risk-adjustment to the source of uncertainty in the cash flow while the DCF method adjusts for risk at the aggregate level of net cash flow. This seemingly small difference is the reason why the real option method is able to differentiate between projects according to each project?s unique risk characteristics while the conventional DCF approach cannot. This paper provides an overview of the real options and DCF valuation frameworks and discusses the differences in risk discounting that exist between the two methods. Using grade-school mathematics, this paper clearly demonstrates how, with real options, a unique project risk discount can be calculated which is directly linked to the project?s unique risk profile. It also highlights why the DCF method fails in this regard and shows why a call to ?increase the Risk-Adjusted Discount Rate? is an incomplete solution at best. Finally, a heap-leach project and satellite reserve development project are valued with both techniques and the difference in investment conclusions is explained in terms of the risk-discounting concepts discussed here.

May 1, 2003

By H. L. Cheng, C. H. B. Leitch, C. T. Hood, A. J. Sinclair

"Epithermal Zn-Pb-Cu-Ag-Au quartz-carbonate-barite veins at the Silver Queen mine near Owen Lake, west-central British Columbia, are hosted by Late Cretaceous Tip Top Hill andesitic volcanic rocks. The veins form a rectilinear northwest-northeast pattern that differs slightly from regional structural trends. The main northwest-trending veins are oriented very close to the trend of regional northwest faults, but the crossing veins tend to be more east-north-easterly (070 degrees)compared to a regional north-easterly trend (040 degrees). The character of the veins suggests they are extensional features formed by dextral slip related to Paleogene oblique subduction, or intrusion of magma at depth, or both.In detailed exploration at the mine, the veins cannot be modelled as simple tabular sheet-like bodies. Instead, they are complex structures that divide and rejoin, forming multiple veins or stringers, or are found in shear zones as replacement features with quartzsericite- clay-carbonate-pyrite alteration haloes of variable width that make definition of vein margins and correlation from hole to hole ambiguous. In addition, individual veins within each of the main structures have en echelon characterboth along strike and down dip.Geological and assay data must be carefully studied to define the margins of these complex veins before any estimation of ore reserves may be made. Where multiple veins occur in a section, ore/gangue mineralogy, assays, character of wallrock alteration, and thickness of vein and mineralized hangingwall, median and footwall zones must be used to evaluate continuity of mineralized structures. Well-defined sections are projected into areas of increasing complexity. Once the vein boundaries are defined, metal concentrations, important metal ratios(Au/Ag, Pb/Zn, Cu/Zn), and true thicknesses of the vein provide the basic data for reliable ore reserve estimation."

Jan 1, 1991

By Paul Toor

The operation of SAG mills is variable over time due to their continually changing liner shape, mass and subsequent load motion. However, this tends to be poorly accommodated in liner design and mill control, with only limited compensation made for this influence, usually in the first few weeks after a new liner is installed. With ever-increasing ore competency, increasing energy costs and decreasing ore grades, simplified design and operational approaches that compromise the achievable mill efficiency are no longer adequate. This paper presents a methodology that has been developed to measure and account for the changes in mill performance as the liner wears. This involves monitoring all liner profiles ? in other words the three-dimensional liner shape - over the life of the liner, then conducting controlled surveys at different stages of the liner wear life, and correlating the mill performance to the liner profiles. The measured liner mass is modelled to provide an ongoing meaningful load mass measure that excludes the liner mass.

Jan 1, 2012

By Mark Sherman

One of the main functions of a process technology and engineering services provider is to select grinding equipment that will meet the client?s throughput rate target. Prudent risk mitigation strategies would suggest that throughput rate estimates be cross-checked using a variety of techniques. Whilst some comminution circuit designers have estimated specific energy requirements via the manipulation of the Bond specific power equation e.g. Barratt?s Grindpower and OMC?s FSAG approach, other designers have opined that the Bond Indices have no role to play in the calculation of SAG mill specific power. As a result, they have developed their own specific energy estimating methodologies, e.g. SMCC?s Drop Weight based power methodology, SPI, SAGDesign, etc. Each method has its supporters and its critics. The challenge facing the engineering provider is how to nominate an SAG mill based circuit throughput rate estimate when faced with significantly disparate specific energies calculated by the different methodologies. This challenge is exacerbated via the continuing evolution of contemporary circuit configurations such as two stage pebble crushing some of which incorporate HPGR technology as the second stage of pebble crushing. The methodology presented in this paper shows that the Bond Indices are an excellent tool for estimating the specific energy requirements for SAG mills in SAB, SABC and SSS circuits. The method accommodates primary crushed feeds, partial and or fully secondary crushed SAG mill feeds, and emulates the impact of pebble crushing on SAG specific energy. As a result, the new Bond Index based method has provided an additional tool for increasing Fluor?s confidence when predicting SAG mill based circuit throughput rates. Based on this outcome, the author proposes that the decades old conundrum of using Bond Indices to calculate SAG specific energies for SAG mill based circuits has been solved.

Jan 1, 2012

By H. Arima, Y. Kudo

In general, the iron content of zinc leach residue produced by sulphuric acid leaching from calcine is disposed as jarosite or goethite into a tailing dam. More recently, these iron residues have been treated pyrometallurgically to avoid waste disposal. The Iijima refinery selected a different zinc leach residue treatment process for iron control when it was established in 1971. The Iijima refinery is the only plant in the world that has processed a zinc leach residue by the combination of SO2 pressure leaching and O2 pressure hematite precipitation. The process enhances zinc recovery and recovers gold, silver, copper, lead and rare metals in saleable by-products. This paper focuses on the two stages of autoclave application in the zinc leach residue treatment process. The detailed flowsheet and recent advancements to improve the quality of by-products are discussed.

Jan 1, 2004

By P. A. Bahri, D. G. Dixon, T. M. Woodward

A comprehensive mathematical model of the Sherritt-Gordon ammoniacal pressure leaching process at K winana Nickel Refinery has been constructed. The process is comprised of six autoclaves functioning as a three-stage leach circuit, operating over the temperature and pressure ranges of 85-95°C and 750-1000 kPa, respectively. The process chemistry forms a complex series-parallel reaction network, characterised by: (1) the gas-liquid mass transfer and reduction of oxygen, (2) the oxidation of eight distinct minerals, (3) the oxidation of sulphur, and successive reactions involving various intermediately oxidised sulphur species, and (4) the oxidation of Fe(II) to Fe(III), and subsequent precipitation as a hydrated ferric oxide. Material balances were developed for species in all three phases, and an energy balance to account for all reactions and phase conversions. The multiple convolution integral (MCI) statistical reactor model was employed for the scale-up of particle kinetics. The model has been validated against plant data, and simulation results are in agreement with plant performance.

Jan 1, 2005

By V. Loya

Metallic foams (MF) are relatively new materials with a combination of attractive properties (permeability, high surface area, thermal and chemical stability, etc,), They can be produced from different materials and can be manufactured using various processes, Due to their unique properties, they find applications in different sectors of engineering, such as energy absorption, filtration, heat dissipation, etc, For many applications, the permeability is an important parameter to characterize and optimize, Most of the recent literature on the subject studied the permeability in the low velocity range. The present study was carried out to have a better understanding of permeability for greater velocity ranges, An equipment was designed and built for this purpose, Pressure drop measurements were made across the thickness of open-cell nickel foams, Pore and window sizes were measured by image analysis on SEM micrographs, The experimental results are in relatively good agreement with the Hazen-Dupuit-Darcy model (R2>98%), The permeability is affected by pore size, porosity and the normalized projected area of the connecting pores (ie. windows).

Jan 1, 2005

By J. J. Quinn

Several mineral flotation plants utilize process water with high soluble salt content. The processing of semi-soluble minerals, the use of recycle streams, sea or well water give rise to this situation. It is unclear as to the overall effect on flotation response though there does seem to be evidence of bubble size reduction, increased froth stability and reduced reagent dosage. The present work aims to quantify the effects of salts present in process water on gas dispersion (bubble size and gas holdup) and froth properties. The salts examined were NaCI, CaCl2, Na2SO4, Na2S2O3 and Al2(SO4)3. Tests were conducted to determine the effects of salt type and concentration on gas holdup and bubble size distribution. The salts containing multivalent ions had a greater impact than the monovalent ions, in keeping with the literature. A relationship between gas holdup and ionic strength was established. The concentration of frother (methyl isobutyl carbinol, MIBC) giving equivalent gas holdup was determined. The effect of salt and frother combinations was also explored.Proposed mechanisms for coalescence inhibition in salt solutions are briefly reviewed in light of the current findings.

Jan 1, 2006

By William Ferguson, Claude Deveau, Wade Hazel, Stephen R. Young, Allen Lussier, Robert Copeland

"LocationSometimes known as the Bernie Lake mine, the mine is located about 180 km east-northeast of Winnipeg on the northwestern shore of Bernie Lake, close to the Nopiming Provincial Park and the Manitoba-Ontario boundary. The mine is accessed from Lac du Bonnet which is linked to the provincial road system.Brief Description of OperationTantalum Mining Corporation of Canada Ltd. operates an underground mine employing ramp access, room and pillar mining, and shaft hoisting for the production of tantalum, lithium and cesium minerals. Daily campaigned crushing of the tantalum and lithium ores supply separate concentration circuits. Tantalum recovery employs conventional gravity equipment together with recently developed centrifugal concentration methods. All tantalum concentrates go to Cabot Performance Materials for the production of tantalum chemicals and metal. Lithium minerals are recovered using heavy medium separation and silicate flotation to produce spodumene and montebrasite/amblygonite concentrates. The lithium concentrates are shipped worldwide for use in ceramics, specialty glass and mold powders. Cesium processing involves the dry grinding of pollucite as feed stock for the recently built on-site chemical plant dedicated to tl1e production of cesium formate, a high-density drilling fluid for use in the oil industry."

Jan 1, 2000

By L Munholand, G. Soucy, P. Quintal

This work presents early results from the first study to optimize the hydrodynamics of a Plasma Lift Reactor (PLR). The PLR is designed to break down organic contaminants in aqueous solutions. New experimental results are presented for air/water tests and for plasma degradation of organic contaminants in Bayer liquor. In addition, a multiphase Computational Fluid Dynamics (CFD) model has been developed which predicts the hydrodynamic behavior in the PLR. These results of this work suggest the PLR is effective at reducing contaminants in the Bayer liquor and that the CFD model adequately describes the hydrodynamic flow.

Jan 1, 2005

By J. Fournier, D. Fortin, F. Robichaud

Since milling began in 1988, the Laronde mill has been expanded several times, the most recent, increasing the milling rate from 5 000 to 7 000 mtpd. Laronde uses SAG/ball mill grinding followed by copper and zinc flotation circuits. A cyanidation/Merrill-Crowe process recovers the remaining gold and silver in the flotation tails in order to cope with high silver/gold ratio associated with the discovery of the Penna shaft. Since the commissioning of the Merrill-Crowe refinery in 2000, several modification and expansion projects were performed to reduce health and safety hazards. Remarkably, several of these improvements have contributed at increasing productivity and Net Smelter Return of the refinery while reducing worker's injuries. In 2004, the refinery was audited to evaluate and quantify the circuit performance. Metallurgical and mechanical operating conditions of the refinery are now understood and areas for further improvements are well defined. This paper describes some of the factors that have contributed to this improvement and describes how ergonomics and recovery can further be improved.

Jan 1, 2005

By G. Beckstead, L. F. Sawatsky, R. Nutbrown, D. Long, G. Gould

"This paper presents a case study for optimizing water management at Gregg River Coal Mine located near Hinton, Alberta. The optimization study was derived based on a review and assessment of existing management practices and plans for future operation and final reclamation. A proactive water management strategy was developed to assist mine staff in adopting a rational, environmentally sound, and economical approach to water management. A plan was developed to provide for safe operation, self-sustaining operation, low maintenance, minimum negative environmental impacts, and anticipation of future needs for existing and future operations. A plan for final reclamation drainage was developed including establishment of effective, sustainable, and maintenance-free water management systems. The study demonstrated the importance and benefits of a proactive approach for integrated mine water management. This approach is recommended for other similar mine operations because it will improve environmental compliance and reduce costs of water management. IntroductionGregg River Resources Ltd. (GRRL) operates an open pit coal mine on the eastern slopes of the Rocky Mountains, located about 45 km south of Hinton, Alberta. GRRL opened the mine in 1982 and expects to continue operations after Year 2000. GRRL has progressively reclaimed the disturbed area and expects to complete mine-land reclamation shortly after mining in the area is complete. The existing disturbed area and reclaimed area covers approximately 9.5 km2 and will expand to about 10.5 km2 upon mine closure.Like other coal mines in the mountainous areas of Alberta and British Columbia, the GRRL coal mine is subject to highly variable temperatures and moisture conditions. Average monthly precipitation varies from a low of 12.6 mm in January to a high of 113.0 mm in August, based on the precipitation record at the mine site since 1982. Despite the relatively high rainfall during the spring and summer months, excess water problems during rainfall events are quickly replaced by water deficit conditions during periodic droughts. Surface runoff varies from near zero in the winter to a mean annual monthly maximum of 78 mm during the month of June. The mean annual surface water yield is 345 mm."

Jan 1, 1997

By Zhiyang Long, Ruiling Xiao

"A mine shaft is one main development method of establishing access in an underground mine. The construction technology of the mine shaft sinking is complicated and large equipment setup on surface and in the mine shaft. The paper briefly reviews a single-line operation method, parallel operation method and mixed operation method as well as the features of the one operation method with the excavation, lining and installation. The special construction technology mainly would include ground freezing methods, full diameter shaft drilling methods, caisson methods, grouting technology and concrete curtain methods as well as other methods. The paper summarizes the shaft sinking numbers and effects by the special construction methods during different periods. The paper states the shaft sinking conditions and the each created record conditions in the coal, metallurgy, non-ferrous metal, hydropower, highway, railway, nonmetallic and other industries. The paper has a prediction on the shaft sinking requirements and development tendency in the future for China.INTRODUCTIONA mine shaft is one main development method of access in an underground mine. In recent years in China the new shaft mines represent 45% of the total number of new mines. With the development of new mining area under construction and the development of deeper mines, the ratio of the mine shaft as access for underground mines will increase. The construction technology of the mine shaft engineering will be complicated, the operation site footprint will be small and the working environment will be more difficult. The mine shaft sinking operation will often be varied by the geological conditions and affected by underground water inflows, seam gas outbursts, geothermal and other natural conditions. The safe construction of the mine shaft sinking will be challenged by all these conditions. Although the mine shaft engineering will only be about 5% of the total mine roadway engineering, the mine shaft construction period often will take over 40% of the total mine construction period. With the progress of modernized mine production technology and the construction of a high production and high efficient mine, the mine transportation roadways mostly would be set in the seam and the engineered amount of the mine rock roadways reduced year by year could cause more prominent long extensions of the mine shaft construction period. Therefore, in order to speed up the construction, to shorten the mine construction period and to realize the investment benefits as early as possible, the technical level of the mine shaft sinking should firstly be improved and the construction speed of the mine shaft engineering and sinking should be speeded up, which would have important significant benefits."

Jan 1, 2019

The rate of liquid copper deoxidation during top blowing of reducing flames has been investigated using a high capacity thermogravimetric unit at 1200 °C. For 1 kg copper samples, it was observed that the rate of deoxidation was proportional to the flow rate of the reducing reagent (H2 or CO). Under similar experimental conditions, it was found that H2 is more effective than CO even though both have similar thermodynamic potential to deoxidize liquid copper. The rate of deoxidation of liquid copper with reducing 0 2/CH4 flames was measured for 0 2/CH4 molar ratios of 1.5 to 2. The deoxidation rate depends on the 0 2/CH4 ratio and decreases as it approaches the stoichiometric ratio (02/CH4 = 2). Estimation of the rate of deoxidation of liquid copper with top blowing flames based on the thermodynamic composition ofH2 and CO in the product gases, agrees well with measured values.

Jan 1, 2007

By Yu-Min Cheng

Over the past two years, the construction industry has increasingly recognized the benefits and capabilities of building information modeling (BIM) for information integration, visualization and parametric design, reducing the duplication of work and complexity of interface integration, while significantly saving both time and cost. However, due to the variety of participants in engineering projects, the differences between data definition, data format, and data storage increase the difficulty of integrating data from diverse sources. Therefore, buildingSMART has developed a common data schema, called Industry Foundation Classes (IFC), that makes it possible to hold and exchange relevant data between different software applications, to increase the efficiency of BIM work and to ensure a consistent and high-quality output. This paper presents a novel methodology that assists in facilitating the import and export process for parametric BIM objects between heterogeneous BIM systems. This methodology is based on the IFC data schema and includes graphical and non-graphical description data. The objective is to retain the geometry, parameters, unit, texture and links of an object during exchange and sharing to ensure that data integrity is maintained. To sum up, this research addresses the issues of transferring parametric BIM objects between heterogeneous systems to increase data integrity and reduce transfer and integration times.

Aug 1, 2013

By M. Board, R. Pakalnis, S. Seldon, R. Brummer

The Kidd operation mines roughly 10 000 tpd of copper and zinc ore from underground and employs about 700 personnel. In the late summer and fall of 1997, major movements in the proximity of the east wall of the Kidd open pit had been observed. The Kidd pit had been mined from 1965 to 1977 to depths of 260 m (850 ft), followed by subsequent mining by underground methods to current depths in excess of 1830 m (6800 ft). The No. 1 Mine (2600 Level to pit bottom) is approximately 90% extracted, with most of the remaining reserve between 2000 and 2500 levels. Although initial concerns centred on the stability of the pit walls, the potential ramifications of the movements to the underground were recognized and measures were implemented to ensure the safety of personnel as well as to minimize the potential damage to existing operations. In late October, damage to underground operations was observed as deep as the 2000 Level. In the final assessment, the global mobilized mass was a “wedge”-shaped hangingwall block extending from surface to about 610 m (2000 ft) below surface. The “wedge” boundaries are defined by a fault and shear zone which have continuous lengths in excess of 1070 m (3500 ft); its base by shearing through the host rock mass; and its eastern face by deep tension cracks (Fig. 1). Mined and filled excavations at the western face of the “wedge” allowed mobilization of a mass in excess of 30 M tonnes. Movements in excess of 75 cm (30 in.) per day were recorded on the surface stations that preceded the complete shutdown of operations on October 29, 1997. The evaluations in the days following the shut-down were centred on mitigation of immediate and future possible negative impacts on infrastructure and mining of the remaining No. 1 Mine reserves while ensuring the safety of the operators. This effort required the rapid assessment of the potential damage of the block movement on underground infrastructure, stope access, drainage and ventilation, as well as airblast potential due to the falling of a large block into the pit near the ventilation intake at the base of the pit. These assessments were presented in a previous paper (Seldon et al., 1999). In total, the lateral movement of the block on the ground surface was over 4.3 m (14 ft). This paper describes the detailed studies performed to understand the failure mechanism and to assess the impacts on future mining in No. 1 Mine.

Jan 1, 2000

By H. Westengen

The AE alloy family exhibits remarkable combinations of properties when utilized as high pressure die castings. This performance relies on the fact that the rapid cooling rate resulting from the direct contact between the molten alloy and the steel die walls effectively refines the structure through rapid solidification. Furthermore, the rare earth additions modify the solidification pattern, dramatically reducing the solidification interval. A solid shell forms at temperatures exceeding 500C, reducing the tendency for die sticking and inverse segregation. As a result, the die castability is excellent, giving parts with a smooth and shiny surface. Unlike other magnesium die casting alloys developed to improve elevated temperature creep properties, AE alloys do not suffer from the commonly observed tendency to introduce brittleness. This feature is attributed to the fact that the massive magnesium- aluminium intermetallic phase is substituted by a finely dispersed lamellar structure of Al-RE intermetallics. The resulting combination of excellent elevated temperature properties and good ductility, as well as excellent corrosion resistance, means superiority of these alloys for demanding automotive engine and chassis applications.

Jan 1, 2006

By Kevin B. Doyle

"Canada now supplies 23 per cent of the world demand for potash. Although potash is produced by many countries, Russia and Canada have the greatest reserves and capability to supply the future substantial demand over the next decade. It is estimated that demand will grow from 38,000,000 mt KCl in 1975-76 to 60,000,000 mt KCl in 1985-86. Current firm expansion plans and development underway in the world will move Russia to the forefront in supplying this demand growth. Russia will move from supplying 40 per cent of world demand in 1975 to supplying as much as 52 per cent in 1981. Canadian deposits suffer from natural disadvantages, such as high costs and risks of mine development and operation, and high-cost transportation to international markets, but experience has shown that these natural barriers can be surmounted to effectively compete in these international markets. However, Canadian potash is losing out in the race to supply the growth in the world potash demand over the next ten years because of artificial barriers raised through the unhealthy environment created by the current battle between different levels of government and the industry over resource taxation and legislation."

Jan 1, 1976

By L. G. Bergh

The experience developing a supervisory control and information systems in a SX pilot plant is presented. The plant is located at the Process Control Laboratory, Santa Maria University, in Chile. In this work, the problem of controlling this process is discussed and related literature is briefly reviewed. Then, an innovative control scheme organized in three levels, local, hydrodynamic, and metallurgical supervisory controls is presented in an architecture including field controllers, PLC, and PC networks. Operating decisions in the metallurgical supervisory control are taken with incomplete information from on-stream analyzers. The control proposed is based on metal and acid concentration predictions of intermediate and exiting streams through the use of dynamic and static models and flow rates and input concentration measurements. Preliminary results are presented. The main objectives are to develop and test intelligent techniques in a hybrid system, and to study measurement and supervisory control problems. It is expected to produce reliable results that will contribute to improve the efficiency of this emerging and important process.

Jan 1, 2007

By K. Szczesny

This paper considers the integration of uncertain real-time logistics data for reactive construction scheduling. In order to manage a construction project efficiently, an accurate schedule representing the current project progress is inevitable. The quality and up-to-dateness of such a schedule depends on the availability of real-time data. Typically, real-time logistics data contain information about the availability of material, equipment and personnel as well as delivery dates and site conditions. The accuracy and inherent uncertainty depends on the location where the real-time data was acquired. Currently, the integration of such data into a construction schedule is a very time-consuming, manual and, thus, errorprone process. Therefore, this paper proposes a methodology that enables an automatic integration of such uncertain data into construction schedules. By integrating uncertainties into the existing schedule their impacts on the construction work can be evaluated. For this, discrete event simulation is applied. In order to model uncertain input parameters for simulation models this methodology applies the fuzzy sets theory. In combination with alpha-cut sampling technique, discrete model input parameters are obtained. By applying reactive scheduling with several discrete event simulation experiments, the results can be used to modify construction schedules according to agreed timeframes and costs. In order to demonstrate and validate the presented approach an example is conducted.

Aug 1, 2013