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By Colin Hardie, Simon Pelletier, Rakan Rhabani, Guy Comeau

"In order to improve the nickel concentrate thickener operation at Raglan Mine, two pulp deaeration cyclones were installed. These units obtained from Outotec Pty Ltd, also called the FrothBuster®, have been in continuous operation since mid-October 2006. The primary objective of the de-aeration cyclones is to lower the solids content in the thickener overflow by de-aerating the concentrate pulp before it enters the concentrate thickener. This dearated slurry should help decrease the nickel particle losses that report to the thickener overflow because of the flotation effect within the thickener.Optimizing the de-aeration cyclones has been a slow and ongoing process, however, initial testing is encouraging. The latest test results indicate a 50 % reduction (0.070 to 0.035 % solids) in nickel losses to the concentrate thickener overflow resulting in an additional $350,000 in annual revenues.This paper will present an overview of installing the de-aeration cyclones within a limited space, as well as the preliminary commissioning and testing challenges. This paper will also discuss the most recent concentrate thickener operating results since the de-aeration units were installed.INTRODUCTIONThe Xstrata Nickel Raglan Concentrator, located at the northern limit of Quebec’s Nunavik Region has been in production since 1997. In early 2002, the concentrator implemented the Zero Process Water Discharge (ZPWD) project to recycle the process water to decrease fresh water consumption and reduce discharges to the environment. Due to this initiative, the chemistry of the process water changed significantly resulting in flotation concentrate streams, which were very frothy and difficult to manage. This phenomenon has resulted in operational challenges in many areas of the concentrator including slurry pumping, flow measurement and concentrate thickening.In October 2005, the Raglan Mine underwent a conversion from an AG mill to a SAG mill operation in order to increase throughput and to optimize key process areas. As part of this project, the first two North American pulp de-aeration (FrothBuster®) units from Outotec were installed to improve the operation of the concentrate thickener. The primary objective of the deaeration technology was to lower the solids content in the thickener overflow by de-aerating the concentrate thickener feed pulp. This in turn was to reduce the froth, which accumulates on the thickener surface, and more importantly reduce valuable nickel losses to the thickener overflow because of the flotation effect within the thickener."

Jan 1, 2008

By S. Banisi, J. Marois, A. R. Laplante

"This paper compares the behaviour of gold and ore in the grinding circuit of Hemlo Gold Ltd. Particular attention is given to grinding kinetics, classification behaviour, and liberation. For grinding kinetics, laboratory grinding of gold flakes and silica, 840-1200 um in size (14/20 mesh), was also performed to provide a standard for comparison and to study in a controlled environment the mechanisms of breakage, folding, smearing and impacting.Grinding kinetics were characterized at laboratory scale with breakage and selection functions. The breakage function showed that 75% of gold disappearing from the 840-1200 um class reported to the 600-840 um; this figure is much higher than for silica ( 46%) or most other minerals, and implies that comparatively fewer fine fragments are produced from the breakage of gold flakes, on account of gold's malleability. The selection function of silica was four times that of gold. At plant scale, the ratio of the selection function of ore and gold increased from 6 for at 50-100 um to 20 at 500-1000 um.Observation of original flakes and their fragments with the scanning electron microscope showed that the main mechanism of ""grinding"" from the 840-1200 um to the 600-840 um class was folding rather than actual breakage. This was confirmed by a measure of individual flake weight. The postulated breakage cycle is that relatively globular flakes become increasingly serrated through grinding; they can then regain their original shape through folding and reflattening into cylindrical and spherical shapes, as the majority does; however, some fragments will at this point undergo actual breakage. Photographic evidence is presented to support the proposed mechanisms.Smearing of gold unto silica was observed when silica was ground after a gold, and embedding of silica into gold flakes when gold was ground after a silica. Both mechanisms occur whenever gold and harder minerals are jointly ground, and result in ""unliberation"" of gold. It is postulated that smearing of gold onto other minerals plays an important role in explaining how gravity recovery can increase overall gold metallurgy, especially when used ahead of flotation.Classification of gold in the primary hydrocyclones takes place at a much finer cut-size than ore, 20 vs. 57 um. This and the slower grinding kinetics result in high gold circulating loads in the primary loop, 6700%, and a gold content in the primary cyclone underflow (PCUF) is twenty four times that of the ore. The gold size distribution for primary cyclone overflow is much finer than that of the ore, although they are essentially similar in the PCUF.Liberation, or more accurately ""gravity recoverability"", was assessed with a 7.5 cm (3"") Knelson concentrator. It varied between the thirties for the primary mill discharge and two cyclone overflows, to highs of 89 to 92% for the PCUF and secondary mill discharge, 89 and 92%, respectfully."

Jan 1, 1991

By Michel Ruel

"PID loops – also known as base layers or regulatory controls – form the foundation of any plant’s control layer and it is generally accepted that PID loop health has a direct impact on the plant’s bottom line. Keeping these thousands of control loops in good health has a direct impact on the plant’s bottom line: it reduces variability, improves quality and throughput, and decreases energy costs and raw material usage. This has been well proven and documented in many articles. In the last ten years, technology has evolved: control engineers can now keep track of control loop performance and link it to the root causes of variability. However, they lack industry-wide best practices and criteria for determining what can be considered as excellent, good, fair, or poor performance. To ensure that PID control loops continue to perform well and meet their objectives, control engineers need a combination of (a) an appropriate monitoring technology and (b) best practices for doing the maintenance of base layer controls.Most plants have limited resources and operate with an increasing number of constraints; therefore, using the right tools and including reports in daily workflow is key for success. This paper suggests roles and responsibilities of key players needed to work toward control performance best practices and discuss organisational changes to succeed.INTRODUCTIONAlthough PID controllers are reliable workhorses in the process industry, they are often underrated. Since the 1980’s, computer control has evolved and the control algorithms used by control engineers have become increasingly complex. However, PID controllers still handle over 90% of the control loops in operating plants. Table 1 shows the savings that can be realized by achieving best-practice in several different process control categories (Brisk, 2004). The savings are expressed as a percentage of production costs."

Jan 1, 2011

By Trevor Yeomans

"NVI Mining’s Myra Falls Operation is a forty year old underground mining operation feeding a 4000 mtpd concentrator.The current Mill, built in 1985, was designed to process a large massive sulphide ore-body. This ore-body, known as the “HW”, contains about 50% pyrite. Value minerals are chalcopyrite, and sphalerite, with precious metals occurring in all mineral types.By 1997, mining of a new ore-body, known as “Battle-Gap” commenced. Mineralogically complex, the new orebody contains about 15% pyrite, copper minerals including primary chalcopyrite, secondary bornite, chalcocite and tennantite, combined with increased galena and sphalerite.Flotation performance generally decreased with increasing amounts of Battle-Gap ore types, with both copper concentrate quality (increased lead and zinc content) and copper recoveries being affected.Following significant metallurgical testwork, a new fully sequential copper-lead-zinc flotation flowsheet and reagent scheme was developed.This sequential flowsheet was progressively installed and commissioned during 2006.Copper concentrate lead and zinc smelter penalty contents have been reduced by some 40%, whilst increasing copper recovery by 10%.INTRODUCTIONNVI Mining operates the Myra Falls Operation near Campbell River on Vancouver Island, BC. The complex has been in operation since 1966 with mining being predominantly underground. One unique feature of Myra Falls is that the mine operates within a BC Provincial Park.In 1985, a new large massive sulphide ore-body (HW) had been defined, and metallurgically tested. A new concentrator was built based upon this massive pyrite, chalcopyrite, and sphalerite mineralization producing copper and zinc concentrates by conventional flotation methods."

Jan 1, 2008

By Tapiwa Chenje, Victor Olivas, Peter Radziszewski

"Ore breakage and grinding media wear have always been considered and determined separately in laboratory tests. However the two processes are linked with the ore broken down in any comminution device being responsible for the majority of the steel wear experienced. The Comminution Dynamics Laboratory (CDLab) successfully developed a test methodology that can more accurately predict grinding media wear in tumbling mills than the Bond Abrasion test. This paper looks at the possible application of the abrasive wear methodology to determine breakage parameters of the same ore used in the abrasion test. Results indicate that breakage parameters comparable to t10 can be determined using the Steel Wheel Abrasion Test (SWAT), while using significantly less ore than standard breakage tests.BACKGROUNDThe Rubber Wheel Abrasion Test (RWAT) is an internationally accepted and widely used method for determining the abrasion wear behavior of materials. The abrasion wheel test was developed to primarily utilize a steel wheel (Brinell, 1921). Haworth (1949) criticized using of the steel wheel by arguing that increasing the contact area size in the steel wheel test causes a change in the wear rate with time. He suggested that the use of a rubber wheel instead eliminates this problem, leading to the adoption of the RWAT which was standardized in ASTM G65 (2004).Radziszewski (2002), however, found that the use of the Steel Wheel Abrasion Test (SWAT) was more applicable for wear testing in the mining industry for two critical reasons. Firstly, the major cause of wear in a ball mill, the most frequently used comminution device, is ball-ore-ball contact and also ball-ore-liner which both are metal-ore-metal contact. Therefore, using the steel wheel has the advantage of providing a similar abrasive environment to the one that takes place in a real ball mill. Secondly, the SWAT creates the potential of running experiments at much higher force regimes that are closer to what happens in actual mills, unlike the RWAT which is a low stress test."

Jan 1, 2011

By K. Awuah-Offei

Long-term production scheduling optimization has been a challenging issue for the mining industry because of the size and complexity of the problem. The current planning algorithms have limitations in terms of addressing the stochastic variables underlying the mine planning problem. In this paper, an intelligent agent-based mine planning framework based on reinforcement learning is introduced. The long-term mine planning is modelled as a dynamic decision network. The intelligent agent interacts with the block model by means of a stochastic simulation and employs a Q-learning algorithm to learn the sequence of pushbacks that maximizes the net present value of the mining operation. The intelligent open pit simulator (IOPS) was implemented with an object-oriented design in Java®. A comparative application case study was carried out to verify and validate the models. The proposed method was used in planning an iron ore deposit and the results were compared to the Milawa scheduler used in Whittle® software. The outcome of the study demonstrates that the intelligent agent framework provides a powerful basis for addressing real-size open pit mine planning problems.

Jan 1, 2008

By Carol E. Jones

Outline ? Reclamation is a primary mitigation. ? Understand baseline environment and land use. ? Determine reclamation goals. ? Selecting reclamation technology. ? Determine technical risk. Reclamation ? Primary Mitigation ? Through land and water disturbance, mining can have significant local and regional environmental impacts. ? Impacts can also result from associated land use changes. ? Reclamation is a primary tool that the mining industry uses to manage its environmental impacts.

May 1, 2008

By Barrie Robb

Outline 1. Mackenzie Aboriginal Corporation (MAC) 2. ACR background 3. ?Learning from Experience? project - What - Why - lessons 3. How Industry could contribute to sustainable Aboriginal communities 4. Concluding words What is the Mackenzie Aboriginal Corporation (MAC)? ? Aboriginal owned ? Established construction capabilities ? Commitment to development of northern resources ? Partners have extensive experience

May 1, 2008

"The Detour Lake Mine is located in northeastern, Ontario, approximately 300 kilometres northest of Timmins and 185 kilometres by road northeast of Cochrane. The mill processes a free milling gold ore using both gravity circuit and leaching with a state-of-the-art carbon-in-pulp circuit. The grinding circuit is a conventional SABC circuit with a tonnage of 55,000 mtpd at 95 microns with the addition of pre-crushing upstream of the SAG mill.The present paper will describe the methodology used to successfully prove that gold of the Detour Lake Mine ore is mostly concentrated into the fine size fraction of the blasted rocks. It will describe the various options possible to create value from this ore property.IntroductionThe purpose of this test work was to determine the grade of the pebbles and consider if there was value into discarding the pebbles and replacing the material by fresh feed.1. Pebble samplingThe pebbles were sampled and assayed for grade every day for 3 months. After 3 months of sampling, the results showed that the pebbles only carried 28% of the fresh feed grade. This phenomenon can possibly be explained by the fact the gold is located into area of fracture in the rocks.January-March 2014 – Pebble assay average• Line #1 = 0.222 g. Au/t• Line#2 = 0.275 g. Au/t• Head grade = 0.88 g. Au/t2. Crushing and grinding circuit surveysWith the above information, a grinding circuit survey was planned. The purpose of the survey was to build a JKSIMMET model of the grinding circuit for mill optimization but also to understand the deportment of gold into various size fractions that may explain why there is so little gold in the pebbles. All streams and size fractions was analysed for particle size analysis and for gold.Since Detour has dual grinding lines, both circuits were sample at the end of May. Two supplemental survey of the secondary crushers were also done and a survey of the gyratory crusher."

Jan 1, 2016

By B. K. Gorain

"Mining of low grade deposits along with the necessity to design and operate flotation plants with high throughput presents unique metallurgical and environmental challenges that need to be addressed to reduce project risks, improve project economics and to sustain the profitability of operations over the life of a mine.Some of the key challenges include poor recovery of valuables and concentrate quality issues due to complex mineralogy, the need to use poor quality water such as brackish or sea water, reduce environmental impact from the process, integrate flotation with hydrometallurgy to maximize precious metals recovery, escalation of capital and operating costs, use of unproven technology and constant use of larger equipment, high ore variability, worldwide constraints on resource availability and an ever increasing need for reliable metallurgical input to financial models to evaluate economic viability of projects.The need to develop effective solutions to these problems in a short time frame is becoming a key to the success of any new project and for sustaining the profitability of a mining operation. An integrated multi-disciplinary approach to problem solving is crucial with the need for a more lateral thinking along with strategic partnerships and collaboration involving the right players. This paper presents some of the key findings based on experiences from a large number of challenging projects and operations focused on solving complex flotation problems.INTRODUCTIONThere are various challenges to successful development of mineral resources. Most of the ore bodies being developed worldwide are of lower grades requiring high throughput to be economical. Many of these lower grade ore bodies have significant occurrences of deleterious and penalty elements that could render a deposit unworthy of development unless there are technological solutions to process them economically in a sustainable manner with minimal environment impact. Even in a high metal price scenario, the economics for some of these low grade ore deposits is marginal. From a metallurgical perspective, these ore bodies have complex mineralogy and use of any off-the-shelf technology is not always effective. Development of innovative processes are often required, which is expensive, time consuming and sometimes risky.This paper will provide a broader perspective on the steps involved in solving flotation problems for operating plants and for greenfield development projects. In addition, some of the key challenges in flotation of complex low grade ore bodies along with the economic benefits in developing solutions to these problems will be presented."

Jan 1, 2013

By J. R. Emery, D. F. Coates

"FOUR PAPERS ON CEMENTED BACKFILL were given at the Annual General Meeting of The Canadian Institute of Mining and Metallurgy in 1970:Weaver, W. S., and Luka, R., ""Laboratory Studies of Cement-Stabilized Mine Tailings"".Pasieka, A. R., Beattie, H. F., and Espley, G. H., ""Cemented Hydraulic Backill within the Falconbridge Group of Companies"".McLeod, P. C., and Schwartz, A., ""Consolidated Fill at Noranda Mines Limited (Geco Division)"".Clement, W. P., and Sokoloski, R., ""Pumping Cemented Backfill"".These four papers give the impression of a development in mining technology that has been substantially completed. Somewhat over ten years ago, The Inter-national Nickel Company of Canada, Limited and Falconbridge Nickel Mines Limited started experimenting with the addition of Portland cement to mill tailings to produce improved backfill and cheaper floors for scraping. Shortly after, the Canada Cement Company Limited (now Canada Cement Lafarge Ltd.), with full support of the two mining companies, started an extensive research program to provide the technologic-al data necessary to exploit what was obviously going to be a significant development in mining technology."

Jan 1, 1970

By Andrea M. Ouchi

A major focus of ground control research presently being conducted by the Geomechanics Group in the University of British Columbia Mining Engineering Department is to incorporate weak rock masses (RMR76 less than 50) into existing empirical design relationships. An emphasis is being placed upon the updated span design curve/critical span graph originally developed at UBC. The original database has been augmented by mapping of one mine in Montana and of several mines within the Carlin and Getchell Trends of Nevada. In addition, a neural network analysis has been performed and modifications of the span design curves at the lower RMR76 range have been made. The common factor in all the above mentioned mines is a weak back and/or walls. In most cases, the ore zone is the weakest rock unit and must be dealt with to safely extract the mineral bearing rock. This work attempts to provide rock mechanic tools that will enable a mine operator to make economic decisions that will also ensure a safe working environment.

May 1, 2004

By Kevan J. R. Ford, Chris A. Fleming, Robert D. Henderson

"Kinross Gold Corporation’s Maricunga mine in Chile presents an ideal opportunity to apply the SART process to a heap leach operation. Given increasing levels of cyanide complexed copper in current pregnant solutions from Maricunga heaps (over 300 ppm Cu), there is a need to reduce these levels and decrease cyanide consumption and cost. Additionally, a means of disposing of this copper is required, preferably as a saleable product. The well published SART process applied to gold-copper cyanide solutions was selected as it allows rapid precipitation of cyanide soluble copper as a relatively pure copper sulphide. The process also allows effective recovery and recycle of cyanide back to the heap leach operation.This paper reviews the SART process chemistry and presents a summary of SART bench-scale and pilot plant testwork completed by Kinross. Key design parameters and engineering aspects of the proposed plant at Maricunga are discussed. SART plant operating costs and net revenue analysis are included and illustrate the compelling economics of installing a SART process plant. INTRODUCTIONMaricunga OperationCompañia Minera Maricunga (CMM), fully owned by Kinross Gold Corporation, operates the Maricunga mine (formerly Refugio) which is located 120 km due east of the city of Copiapó at an elevation of 4,200m above sea level in the Andes mountains of northern Chile. Figure 1 shows a map of the location of the Refugio mine relative to other gold and copper mines in the region."

Jan 1, 2008

By P. Toscano

The objective of this investigation was to determine how the losses of nickel, copper and cobalt in fayalite slags could be controlled for nickel mattes with iron contents below 5 wt%. Laboratory-converting and slag-cleaning experiments were carried out at 1250°C. Several variables were investigated during and after converting to help minimize the amount of nickel and cobalt that reports to the slag. The variables used were oxygen concentration in the blast, coke breeze addition and nitrogen injection stirring. In all the experiments, slag and matte co-existed. Coke additions during converting have little effect on the losses of nickel, copper and cobalt. In fact, coke additions retard the converting process by consuming some of the oxygen injected. On the other hand, coke additions and nitrogen injection applied after converting was completed resulted in decreased slag losses.

Jan 1, 2004

By P. Toscano, T. A. Utigard

"The objective of this investigation was to determine how the losses of nickel, copper and cobalt in fayalite slags could be controlled for nickel mattes with iron contents below 5 wt%. Laboratory-converting and slag-cleaning experiments were carried out at 1250°C.Several variables were investigated during and after converting to help minimize the amount of nickel and cobalt that reports to the slag. The variables used were oxygen concentration in the blast, coke breeze addition and nitrogen injection stirring. In all the experiments, slag and matte co-existed.Coke additions during converting have little effect on the losses of nickel, copper and cobalt. In fact, coke additions retard the converting process by consuming some of the oxygen injected. On the other hand, coke additions and nitrogen injection applied after converting was completed resulted in decreased slag losses."

Jan 1, 2004

By R. H. Walton

"In recent years the recovery of copper from low grade oxide ores has received widespread attention. The cost of treating such ores using conventional technology, such as milling and flotation, is frequently prohibitively high and copper recovery is generally low. The introduction of heap leaching, solvent extraction (SX) and electrowinning (EW) has resulted in high recoveries, good copper cathode quality and low production costs. This technology has now been successfully applied on a worldwide basis.This paper reviews the various process and design options and gives approximate capital and operating costs for a 1.0% copper ore.INTRODUCTIONAs a result of the low copper prices that prevailed for much of the last two decades, aggressive attempts were made by the industry to cut operating costs. Under such circumstances heap leaching, solvent extraction and electrowinning, to recover low cost copper from oxide ores, has received particular attention and ultimately widespread acceptance.Low grade copper ore (typically containing less than 1.0% Cu), which could not be economically treated by other methods, is placed on heaps and leached with dilute solutions of sulphuric acid. The copper rich, pregnant solution, drains from the heap into a collecting pond and is pumped to a solvent extraction plant where it is purified and upgraded. The resulting solution, termed the pregnant electrolyte, passes to the electrowinning section where the copper is recovered as high grade cathodes and sulphuric acid is regenerated, (Figure 1).This paper specifically describes the processing of copper oxides. Other copper minerals such as chalcocite and chrysocolla are also leached by dilute solutions of sulphuric acid. In practice the oxide minerals are frequently associated to varying degrees with less easily leached sulphides, such as chalcopyrite. In some cases, once the oxidized capping of the ore body is removed, the oxides are totally replaced by more refractory sulphides. Under these circumstances the leaching recovery is significantly reduced. However the principles described here for solvent extraction and electrowinning are also applicable to solutions received from heaps containing sulphide minerals, which are leached more slowly and involve bacterially induced reactions."

Jan 1, 1990

By P. J. Gron

"The Samatosum Project is a base and precious metal deposit located in south central British Columbia. A dilute ore reserve of 766, 682 tonnes grading an average 1.1% copper, 3.0% zinc, 1.4% lead, 833 gram per tonne silver and 1.6 gram per tonne gold is available. The base metals occur as tetrahedrite, chalcopyrite, sphalerite and galena. Virtually all of the silver and gold are associated with the tetrahedrite.The mill is operated at a rate of 21 tonnes per hour. Sulphur dioxide is used as a zinc depressant in the grinding circuit. Production of a Cu/Pb/Ag concentrate is accomplished by conventional flotation. This concentrate is then separated into Cu-Ag and Pb concentrates through a reverse flotation circuit utilizing sulphur dioxide, starch and sulphuric acid as lead depressants.The tailings from the Cu/Pb/Ag circuit are treated with copper sulphate to activate the zinc. Production of a zinc concentrate is accomplished by conventional flotation. Dewatering of the concentrates to 6% moisture is done with a LAROX filter press.Tailings effluent is treated with lime and sodium sulphide to precipitate out the heavy metals. The resulting sludge is treated in OYNASAND sand filtration units to produce a quality effluent."

Jan 1, 1990

By J. S. Stachulak, K. A. Mackinnon

This paper deals with specifying and evaluating fans for mine ventilation projects. Topics such as fan and equipment design life, operating points, and operating conditions are discussed. Common operating problems, such as vibration, parallel operation, mechanical failure, erosion, corrosion, and deficient fan performance are covered. Apart from identifying the potential operating problems, likely causes and suggested remedies are given. Fan type, fan accessories, and likely system effects and fan testing are discussed. Suggestions on what should be covered when evaluating different fan options and proposals and suggestions on the verification of supplier claims and guarantees, including cost of operation, the evaluation of initial capital cost, estimate on maintenance costs, and likely replacement expenditure over the life of the fans. In addition, fan reliability, operational flexibility, suggested construction details and fan vendor past history and experience are reviewed.

Jan 1, 2004

By J. -F. Blais, M. -O. Simonnot, P. Charbonnier, J. Mocellin, Université de Lorraine INRA, G. Mercier

"Huge amounts of air pollution scrubber sludge have been generated during ferromanganese production using blast furnace. These residues have been historically deposited in ponds near steel making plants. They are very rich in zinc, manganese and lead (5 to 40 %) and also contain aluminum and iron. Considering the market value of these metals, brownfield sites can now be used as secondary resources. These ponds also have to be cleaned up to meet the environmental regulations.We have developed a hydrometallurgical process to recover Zn, Mn and Pb in order to produce valuable compounds of Mn and Zn and recover the final Pb residue by pyrometallurgy. The Zn and Mn compounds need to be pure enough to be economically valuable. Batch laboratory tests were carried out to determine suitable selective leaching conditions. The investigated operating conditions were acid concentration, pulp density and temperature. Optimal conditions to maximize zinc extraction (100 %) and manganese extraction (95.9 %) were found using sulfuric acid and sodium metabisulfide. The final residue contained 14.8 to 23.8 % of Pb. Then, Zn was recovered in the form of ZnO or ZnS by precipitation and Zn metal by electrowinning, while Mn was recovered as MnCO3 with a fairly acceptable concentration of impurities.INTRODUCTIONFerromanganese has been produced by pyrometallurgy in much of Western Europe for centuries. Use of wet scrubber to remove pollutant and dust particles from gas stream was common for most of these operations. Those residues contain high concentration of Zn, Mn and Pb. They have been left to decant in settling ponds installed close to the steel production plants. They now constitute heavily contaminated artificial soils. Those sludges are so contaminated with Zn, Mn and Pb that they can be used for metal production. Currently, no method is available to decontaminate these residues and recover Zn, Mn and Pb. Therefore, an approach considering these brownfield sites as secondary resource is in development. Doing so would achieve two goals, decontaminate the site and produce metals.. (Huot, Faure, Biache, Lorgeoux, Simonnot, & Morel, 2014a; Huot, Simonnot, Marion, Yvon, De Donato, & Morel, 2012; Huot, Simonnot, Watteau, Marion, Yvon, De Donato, & Morel, 2014b)."

Jan 1, 2016

By R. A. Leveille, M. D. Doggett

"Economic returns for the copper industry have been assessed by building cash flow models for each of the 100 new mines brought into production over the past 20 years. Ninety-one of the 100 new mines returned the assumed 8% cost of capital and generated a positive net present value (NPV) at the development decision point. Economic criteria for individual mines are highly variable with NPV ranging from -$111 million (-$111M) to +$3850M (all money values are presented in United States dollars) and internal rate of return (IRR) ranging from -8% to +95%. The copper industry collectively would generate approximately $39 billion dollars in NPV through the development of the 100 new mines.The returns to exploration ($174M per deposit) were measured by deducting the cost of exploration per deposit ($221M) from the returns to development per deposit ($395M). Overall, the copper business has provided positive returns to exploration. However, the variability in returns across deposits means that only 41 of the 100 new mines can carry the average cost of exploration. The long lead times and high costs associated with exploration result in only those deposits with large amounts of contained copper being able to cover the average finding cost of the industry.The returns to development and exploration are shown to be highly sensitive to the cost of capital and metal price assumptions. With respect to deposit type, porphyry deposits are both larger (NPV) and exhibit lower profitability (IRR) than the nonporphyry deposits. On a geographic basis, returns to development and exploration are higher in Chile than elsewhere, reflecting the larger average deposit size and lower average exploration cost per deposit."

Jan 1, 2009