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By R. J. Pindred

Discussion by R.J. Pindred In his paper, Davis presents an overview of risk. He also introduces the Capital Asset Processing Model (CAPM) as a foundation for selecting the appropriate discount rate for a mining project. While applying portfolio theory is more defensible than the ad hoc adjustment of discount rates, the CAPM is not a panacea. CAPM shortcomings [The CAPM, as Davis stated, is expressed in the equation: ri=rf+pi4) where ri is the project discount rate rf is the risk free interest rate (3i is the project beta, and 0 is the market risk premium (rm - rf)] Application of the CAPM is more difficult than Davis indicates. Valuation is prospective, while the CAPM parameters are historical. Beta is determined from a regression analysis of historical data, while the beta needed for valuation is the expected beta. Betas are known to be unstable and the regressions that generate them often have low explanatory power. The difficulty of estimating a "project" beta must also be considered. Thus, the beta that is used in the CAPM will be based on the analyst's judgment. Like Cavender's discount rate, this judgment can lead to different project NPVs. Subjectivity in valuation cannot be avoided by a mechanical application of the CAPM. The risk-free rate, which Davis identifies as a short-term real rate of 4%, is also subject to scrutiny. A mining project is not a short-term investment and no single risk-free rate is appropriate for all of the cash flows. The hypothetical mine discussed in Cavender's paper is a six-year project. One might argue for the application of a risk-free rate from the Treasury yield curve at the duration of the project (in a bond-duration sense). This, too, is inappropriate. The risk-free rate should be matched to the timing of the cash flow. These rates can be determined by calculating the implied forward rates from the yield curve using a procedure known as "bootstrapping." It is likely that each of the project's cash flows would be discounted at a different rate. Commodity prices Davis criticizes the "ad hoc adjustment to the discount rate." Yet, in his discussion of the value of stochastic simulation, he suggests that the gold price be modeled as a "random walk, with or without a trend." This is essentially an arbitrary modeling of price risk. Consider that a liquid market in gold futures exists. The futures' price curve, which is closely related to the market's estimate of future spot gold prices, should be used to provide inputs to the model. This is especially true of a relatively short six-year project. Alternatively, as Davis correctly points out, a risk-averse investor can sell the commodity short to hedge price risk. Is it any more correct, in the portfolio sense, to account for price risk at all ?? References Cavender, B., 1992, "Determination of the optimum lifetime of a mining project using discounted cash flow and option pricing techniques," Mining Engineering, Vol. 44, No. 10, pp.1262-1268 Fabozzi, F.J., 1993, Bond Markets, Analysis and Strategies, Second Edition, Prentice Hall, Inc. Higgins, R.C., 1992, Analysis for Financial Management, Third Edition, Richard D. Irwin, Inc. Solnik, B., 1991, International Investments, Second Edition, Addison Wesley Reply by G.A. Davis Pindred discusses two issues related to my paper, the shortcomings of the Capital Asset Pricing Model (CAPM) and which commodity price values to use in the valuation exercise. Even though these topics are not directly related to the use or misuse of Monte Carlo simulation, they are important points to take into consideration in valuation exercises. Since I do not appear to have addressed these issues satisfactorily in my original paper, I will comment on each here. Pindred agrees with me that applying portfolio theory, and specifically the CAPM, to the selection of project discount rates is more defensible than ad hoc methods. But he then points out that the application of the CAPM to project valuation is more difficult that I indicate. It is true that the CAPM is a difficult tool for project valuation in general,. But the application of the CAPM to mining projects is one of the easiest I can think of. The biggest problem with using the CAPM for project valuation is coming up with an expected project beta. I suggest a project beta for gold projects of 0.45. The "true" value might be 0.35, 0.55 or whatever. Pindred correctly notes that the selection of the appropriate project beta is based

Jan 1, 1996

By David A. Holmes

After a century of variable government-supplied housing on their cold, windswept lands, and facing extremely limited natural resources and no timber, the Standing Rock Sioux Tribe has launched a study into alternative housing approaches for their people. Considering that they have little more than the soil and limited river aggregates under their feet, the Tribe has elected to consider adobe and earthen-wall construction. Earthen construction is no stranger to the Sioux lands. Smaller tribes, including the Mandan, Arikira, and Hidatsa, lived here among the Sioux in earthlodges for centuries. Such earthlodge structures were not unlike the Southwestern jacal style-a framework of upright branches and branches covered with mud-employed by the Anasazi about A.D. 700-900. Indeed, the Sioux people themselves evolved from earlier earthlodge dwellers. Indigenous peoples in New Mexico, Arizona, and neighboring Mexico have used earthen-wall housing for many centuries, reinforcing Sioux observations that this is today an earth-friendly, cost-effective, and practical approach. The Cheyenne River and Pine Ridge Sioux Reservations also recently have conducted studies on earthen- wall construction. This paper describes the search for and evaluation of potential raw-material resources for earthen-wall/adobe construction on the Standing Rock Reservation in North and South Dakota. Significant resources of clay/silt materials (8 million tons in the Striped Cloud clay bed) suitable as adobe binders and sand-and-gravel aggregate (2.5 million tons) that could support earthen/adobe construction have been identified throughout the Fort Yates Flat area on the Reservation. Also addressed is how adobe and rammed-earth construction could add to the diversity of reservation construction and address future Tribal housing and other building needs.

Jan 1, 1999

By C. K. Skokan

Various geophysical tools have been tested over the last eight years to evaluate their usefulness in defining damaged rock zones in an underground facility at the WIPP site in New Mexico. These tools include direct current and frequency domain electrical methods and seismic tomography. The electrical measurements show a "drying rind" to exist around older excavations. Seismic tomography confirms that a rind of lower velocity has developed along walls. In combining these tools, a monitoring program has been proposed to observe long-term changes in bedded salt. Results from the monitoring of electrical data over a 2-year time period illustrate the applicability of the technique in an underground environment.

Jan 1, 1993

By T. A. Oberhellmann

The Wobbler Feeder is a comparatively new materials handling and separating device. It is essentially a materials separating or scalping machine, particularly adaptable to separation of oversize particles from mine-run ore and to the separation of oversize materials from overburden, where the removal of oversize materials is necessary, as is the case in conveyor stripping. In construction, the Wobbler Feeder is simply a set of transverse bars of manganese steel, or other wear-resisting alloy steel, each having an elliptical cross-section with the major axes of adjacent bars displaced by ninety degrees so when rotating in unison, the pre-determined space between the bars remains constant.

Jan 1, 1959

By D?Arcy R. George

A survey of the copper mining industry in Western United States revealed that uranium is almost universally present in the solutions resulting from leaching the waste ore dumps to recover copper. The U308 content ranges from about 2 to 15 ppm and a potential production of up to 1,000 tons of U3O8 per year is indicated. A six-week pilot plant test at the Bingham Canyon mine of Kennecott Copper Corporation showed that the uranium is readily recoverable by ion exchange techniques. The design of the new types of countercurrent ion exchange columns and operation of the pilot plant are described.

Jan 1, 1967

By O. A. Velasquez, A. R. Kumar

"Continuous miners are often equipped with a flooded-bed dust scrubber to clean the air from close to an active underground coal mining face. However, its impingement screen is prone to clogging due to an accumulation of dust, thereby lowering the scrubber’s efficiency and potentially exposing the mine workers to higher levels of dust. Fans can compensate for the increased resistance by varying their operating parameters, but the scrubber screen needs significant maintenance which leads to downtime. The authors have proposed a suitably sized Vortecone as an alternative to the conventional flooded-bed dust scrubber system. Water is used as the filter medium, which is replaced and recycled continuously. Preliminary CFD investigations of Vortecone scrubbers have indicated higher cleaning efficacies, especially in the respirable range. This paper presents the results including the flow characteristics and capture efficacies of a full-scale Vortecone. Multi-phase flows, including free-surface modeling and particle tracking methods, have been adopted. ACKNOWLEDGEMENT The authors acknowledge the National Institute for Occupational Safety and Health (NIOSH) for funding this research project. This research is being developed with the support of a NIOSH Grant 200-2014-59922- ‘Coal Mine Dust Mitigation through Novel Scrubber Development and Numerical Modeling’. The views expressed in this paper are those of the authors and do not necessarily reflect those of NIOSH. This project is aimed at designing novel and efficient scrubbing systems for underground mining operations. The authors acknowledge Dr. Thomas Novak of the Department of Mining Engineering, the University of Kentucky for his support and encouragement. The authors also thank Dr. Sunil Vytala, CFD engineer at Cradle CFD for his invaluable inputs to the numerical models.INTRODUCTION Continuous miners are the main production machines deployed in room and pillar mining operations. These miners extract coal by the shearing action of the wethead cutting drums. Strategically placed water sprays on the drum not only cool the bits extending their useful service life, they also suppress the dust at the point of generation itself. A flooded-bed dust-scrubber (Campbell, et al. 1983) is usually integrated onto the continuous miner to arrest dust from close to the active face. These fan-powered scrubbers have an impingement screen flooded with water, which also serves as the filter element. A demister downstream of the screen removes the excess water from the air cleaned. These conventional scrubbers have been found to be very effective in alleviation of respirable dust levels underground (Chao and De-sheng 2000) (Colinet, Reed and Potts 2013). However, the inefficiencies of the flooded-bed dust scrubbers arise out of their internal components. Depending on the mining conditions, the screen may be clogged by the accumulation of the trapped dust particles. The resistance of the scrubber system is increased reducing the airflow. The flooded-bed dust-scrubber system would, therefore, require frequent maintenance of the screen and the demister (Listak 2010). Since any maintenance needs to be carried out under supported roof, this leads to loss of availability of the equipment as well. In addition to this, the continuous miner operators could be exposed to elevated levels of dust when satisfactory airflow at the face is not achieved."

Jan 1, 2018

By P. M. Brown

The Bureau of Mines, U. S. Department of the Interior, has developed a method of dewatering clay slurries based on flocculation by high-molecular-weight polymers and water removal from the formed flocs using a trommel or hydrosieve. The exchange ion on the clays affects their dewaterability. Metal ions in solution and on the exchange sites of smectite clays are known to act as Lewis acids. Recent work has determined that these ions can be titrated with high-molecular-weight polymers. The relative acidity of the exchange ion and the basicity of the polymer determined by the new method give insight into the dewatering mechanism.

Jan 1, 1988

By J. R. Walls

Mining is one of world's oldest industries. Its rich history continues into modern times. The Waste Isolation Pilot Plant (WIPP) located in southeastern New Mexico is writing the next chapter in mining history. In fact, WIPP technology is the key to closure of the nuclear cycle with the disposal of nuclear waste in a deep geological repository. It might seem odd that the age-old institution of mining would be linked to the problem of nuclear waste disposal. In fact, the nuclear industry would not exist without mining. Uranium ore is mined from either underground or surface mines as the initial step in harnessing the magnificent resource of nuclear energy.

Jan 1, 1996

By A. Mei, F. Amadini, F. Cernera, D. Baliani, A. Flor, M. La Morgia, F. Sassi

The risk of TBM jamming because of squeezing rock mass or excessive caving (instability of the cavity) conditions is always a focal point while boring long and deep tunnels with shielded TBMs. Mechanized excavation provides a large amount of real-time data, for each machine’s parameters. Several analyses have been executed to assess the correlations between different sets of TBM parameters for the exploratory tunnel. Instead of analyzing the full dataset, a different approach is proposed, with data processed sequentially to simulate the real excavation situation. The probability distributions are recalculated together with their statistical parameters while advancing. This approach is extended also to the training of a Machine Learning model able to foresee the behavior at future rings based on past rings (using a Recurrent Neural Network). The predictions show a promising first step toward creating practical tools that can assist contractors and designers to correlate and predict TBM excavation data. These tools will assist to predict and quantify high risk situations that could arise during excavation.

Jun 13, 2023

By Sibley C. Burnett

Early attempts to apply superconductivity to the beneficiation of kaolin required very large refrigerators to remove the heat generated during rapid charging and discharging of the magnet. In the early 1990's, Advanced Cryo Magnetics, Inc. developed and patented methods to reduce this pulsed heating by a factor of fifteen. Small, helium refrigerators and cryo-coolers are now used. Along with savings in electric power, superconductivity allows operation at higher magnetic fields and greatly improves separation process efficiency. New designs offer enormous reductions in weight, size and capital cost as compared to older copper magnets. Application of this technology to minerals other than kaolin is emerging.

Jan 1, 1999

By P. Schiavi

A trend towards the independent verification of sustainable development reporting and assessment using third party certification can be discerned in the global minerals industry. Various codes that provide for the third party assessment and certification of performance against a range of externally developed sustainability indicators are being adopted by minerals companies, and there is also considerable activity in the broader area of third party assurance. Using a sociological approach, this paper examines the reasons why third party certification schemes are appearing in the minerals industry to address sustainable development imperatives in preference to other forms of regulation, and considers the broader implications of this trend. Data are drawn from a series of qualitative, in-depth interviews conducted with some of the key players in the development and adoption of certification schemes in the minerals industry, with executive managers of a range of large mining corporations, with representatives of global non-governmental organizations that are active in mining issues, and with government officers responsible for the regulation of mining corporations in Australia. Factors responsible for the emergence of the new certification schemes include: increasing demands from stakeholders for greater credibility in reporting against sustainable development indicators; broader contextual factors including globalization and neoliberal policies; and issues relating to trust and risk. Using insights from our research, and the work of others in this field, we identify some of the critical features of a credible third party certification scheme, and note some of the challenges for the design and implementation of such schemes. We conclude by discussing some of the broader implications of third party certification as an emerging form of regulation in the minerals industry.

Jan 1, 2007

By Allan J. Breitenbach

The heap leaching process has developed into a low-cost method for recovering copper, gold and silver from large and small deposits of low-grade ore. The earliest known heap leaching process with chemicals occurred in about 1752 and is attributed to Spanish miners percolating acid solutions through large heaps of oxide copper ore on the banks of the Rio Tinto (Ran Zyl, et al., 1988). In 1969, US Bureau of Mines research¬ers proposed the use of dilute alkaline cyanide solutions as a low-cost means for recovering gold values from low-grade ore containing micrometer-sized particles of gold (Miners News, 1991). The modern-day heap leaching process typically involves the percolation of leach solutions through controlled lifts of stacked, low-grade ore (crushed, aggomerated or run-of-mine) in a heap for chemical extraction of precious and base metals into solution (Fig. 1). The enriched (pregnant) solution is collected by gravity flow in lined basins, sumps and ponds for processing and recovery of the target metals (copper, gold and silver). The barren solution from the recovery facilities is recirculated to the heap, along with chemical reagents and makeup water, for containment of all process solutions in an enclosed and environmentally sound system. This involves the use of low-permeability liner systems beneath the heap leach stacks to maximize solution recovery and protect the underlying ground water (Fig. 1). This article discusses the typical heap leach liner systems currently used by mining companies in North America. The most successful heap leach pad liner systems from past precious metal operations generally include an underlying, low-permeability soil bedding material; a geomembrane liner, and an overlying protective cover fill.

Jan 1, 1994

By M. Kane, O&apos

BHP Iron Ore initiated research programs in January of 1995 to develop long term plans for decommissioning of the waste rock material at their Mt. Whaleback operation. More than 2 billion tonnes of waste rock were deposited during the past 30 years. Ultimately, the operators will deposit a total of approximately 5 billion tonnes in waste rock dumps constructed near the open pit. The Mt. Whaleback operation is located in a semi-arid climate adjacent to Newman, Western Australia, approximately 1200km north-northeast of Perth, Western Australia. The primary research program includes the development of technology for the long term performance of the waste rock dumps with respect to vegetation, slope stability, surface runoff, erosion, and water infiltration. This paper focuses on the design and implementation of a cover system to prevent water infiltration to the underlying waste rock. A laboratory program and the soil-atmosphere modelling completed to design the horizontal field test plots are described. The construction of the horizontal surface field test plots are discussed together with the field instruments installed to monitor performance. The key components of the instrumentation program are the design and installation of large scale field lysimeters to measure the unsaturated flow of moisture into the waste rock from the base of the cover layer. The cover system is designed to maximize infiltration during wet periods for subsequent evapo-transpiration while minimizing surface runoff. The result is a near zero net infiltration to the underlying waste material. A key feature of the design is the use of pit run waste material as the cover material. Monitoring is in progress and will continue for at least two annual wet/dry cycles. The optimum cover system should minimize the net infiltration of water to the underlying waste rock while maintaining physical and ecological integrity for long term performance.

Jan 1, 1998

By Ronald B. Stone

This paper describes a proposed solution to the problem of mining a 315 foot diameter unsupported sphere at a depth of 2700 feet in a salt dome by conventional mining methods. The proposed solution utilizes many of the varied technologies available to the mining engineer for solving mining and underground construction problems. The following are reviewed in the paper: A. The location of the sphere within the dome as required by construction criteria. B. The relation of the location of the access shafts to the sphere. C. The rock mechanics theory in relation to the salt dome and large size of the excavation. D. The proposed "honeycomb" method of mining which will be a partial answer to rock mechanics stability requirements. E. The equipment which it is recommended be utilized to accomplish the construction. F. The rock mechanics measuring instruments proposed. G. The methods of disposal of the mined salt. Conclusions and areas of further study are outlined in the final statement.

Jan 1, 1968

By Ernest L. Bradley

A positive pressure ventilation system, augmented by a dewatering well curtain and underground longhole drilling, provides effective ventilation and radon control at EXXON Minerals Company's Highland Underground Mine in the Southern Powder River Basin of Wyoming. Testing different types of bulkheads, sealants, and bleeder systems has led to improvements in the basic ventilation system. Continued testing of new or different materials and equipment is expected to lead to further improvement in the ventilation program. Effective training of both miners and supervisors is essential to maintaining and improving ventilation techniques. This paper addresses the ongoing ventilation program and experience to date at the Highland Uranium Mine.

Jan 1, 1979

By Ing. H. Kellerwessel, Ing. M. Esna-Ashari

This paper refers to the new crushing and grinding process, invented by Professor Schonert (Ref. 1), Clausthal, Germany. The process is known as high pressure particle bed comminution or interparticle crushing. Several papers already describe fundamentals of the process, the equipment used, results of lab size and large scale tests and the first results of commercial operations (Ref. 2 to 7). Of course, we will treat the topic from the perspective of a downstream gold ore upgrading or leaching process. Some recently executed testwork indicates that the process provides special advantages in this field. To describe the process generally, in view of the already existing publications.

Jan 1, 1998

By G. R. Struble, J. R. Marks, A. B. Brown

The center of mining at the Homestake gold mine in Lead, SD, is moving deeper every year. As a result, it has become necessary to upgrade the ventilation system. This paper describes the first phase of a scheduled two-phase upgrade - installation of a 2.2-MW (3000-hp) centrifugal fan. The higher pressure fan is required to route larger airflows into the deeper production levels. Selection of the fan began by specifying the necessary operating point to provide these larger airflows. Special site work had to be done on the surface to accommodate the new fan structure as well as underground to reroute airflows.

Jan 1, 1987

By D. W. McGlashan

[Comideha;tion o 4 chyakd- chem and aLtuctund phopetttiu o auRdide nm&, The in~o/uncction gained h ;to be uned ;to iM;tmph& ( I! dnukey bho hen mind-aundacu , ( 2 ) modidicakio~n 06 ;the minmd n~tdacu, and (3) eac;tiom at ;the mind adac fnom ;thu e baic din oipfina, concep;tc, wLth hegattd ;to .the changen kha;t awtgacu undehgu, heac;tiom kha;t might take place, ,the geom&y 04 ;the inkmduce, ;the nkde 04 diddmenk &om and iom in ;the intmdace, and okhm phyaicd and chemicd pttopemXu od an intmdace mun;t be developed, weighed and appfied. The au/tho~ ded wah thue concep;tud connidmatiom @om which hypokhuu me n& ko denchibe khe envhomenkd-ivttadaciae hela;tiomhipa doh nevmd nddide minettah, The ch&enge and moltivation in khe hu eattch h in a henhe a deattch doh baic dad and helcctiomkipa needed doh accompfi he&.] INTRODUCTION Qualitative and quantitative explanation of particulate solid separations are unknown entities because of the lack of adequate models and mathematical relationships to explain the activity occur- ring between the solid and liquid phases. It is a transitional region in which it is difficult to ascertain the mechanisms of adsorption of ions, molecules, etc. on mineral surfaces, as well as other secondary reactions which occur in interfacial regions. Thus, in this paper the authors deal with conceptual considerations from which hypotheses are set forth to describe the environmental- interfacial relationships for sulfide minerals.

Jan 1, 1968

By Stanley R. Riggs

Extensive phosphate resources occur within the Miocene Hawthorn and Pungo River Formations which have not been considered in the past since they were poorly known and were not available to conventional mining. These resources include 1) deep phosphates that occur below 75 meters of overburden within major sediment basins throughout the southeastern coastal plain, and 2) offshore phosphates that occur on the continental shelf and within the U.S. Exclusive Economic Zone (EEZ). The future potential of these two vast resources will be realized with development of new mining technologies such as hydraulic slurry mining and integrated with advanced technolgy already being utilized in the offshore petroleum industry.

Jan 1, 1986

By J. F. Fitzpatrick

This paper examines the cost elements associated with changes to gold mining practice over the last decade that result from the changes in environmental regulation and the heightened governmental and public awareness of environmental issues. The main experience base is Pegasus Gold Corporation's flagship mine, Zortman/Landusky, located in the Little Rocky Mountains of Phillips County, Montana. This operation was among the first mines that were permitted under the 1974 Montana Metal Mining Reclamation Act. In 1974, the Montana Metal Mine Reclamation Act was enacted, creating a permit system for metal and industrial mineral mines for the state of Montana. The act established the content of mine permit applications and defined parameters for the reclamation of mining disturbances. The Act can be viewed as implementing legislation for Article 9, Section 2, of Montana's Constitution, which provides that "all lands disturbed by the taking of natural resources shall be reclaimed." Pegasus Gold Corporation's Zortman/Landusky mine was among the first mines permitted under the new Act. In 1978, the initial permit applications were submitted for Zortman and Landusky, and a full Environmental Impact Statement was prepared by the Montana Department of State Lands; permits were issued in 1979. When opened later that year, the anticipated mine life for the combined Landusky and Zortman operations was approximately 18 years, based upon a proven and probable ore reserve of 43.2 million tons. Zortman/Landusky was the first large-scale heap leach gold mine in the United States. Its distinguishing feature was, and remains, a remarkably low ore grade, now .016 oz/ton. The ore is economic because it requires neither crushing nor agglomerating to leach effectively. Approximately two years after the initiation of the state's regulatory process, the Federal Land Policy Management Act (FLPMA) was enacted, establishing a mine regulatory framework for lands under the administration of the Bureau of Land Management.

Jan 1, 1992