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By James J. Neate

The augered cast-in-place pile system came into use in the late 1940's where various techniques were tried using pressure grouting methods. In the early development stages some piles were installed using the preplaced aggregate concrete system. As development continued it became more apparent that placement of coarse aggregate was more costly than making a pile out of a cement and sand mixture only. Various techniques were tried consisting of pumping structural grout into an open hole through a pipe left in the bottom of the hole, drilling or driving a pipe in close proximity to the tip elevation of the auger or in working a pipe down adjacent to the auger fluting. For these techniques the pipe was usually withdrawn after grout appeared at the surface. In 1951 a patent was applied for by Raymond Patterson describing the above techniques along with a technique for placement of grout using a hollow stem auger and a removable plug or lead bit at the tip of the auger. The plug or lead bit was removed by grout pressure and this would be an expendable item for each pile placed. The patent was granted in 1956 and patent rights were assigned to Intrusion-Prepakt, Inc. Shortly thereafter other contractors were granted licenses to utilize the system. Patent coverage expired in 1973 and this method now is in the public domain. Today the method is in wide use throughout the world and is particularly well accepted in Japan and England.

Jan 1, 1988

By Don Rose

INTRODUCTION A number of tunnels supported and permanently lined by steel-fiber-reinforced shotcrete (SFRS) have been built in North America in the 1980s. The material is more economical than, and technically equal or superior to, conventional shotcrete using wire mesh. The design and construction of SFRS-lined tunnels is straightforward, and only a few new design principles, laboratory tests or construction equipment modifications appear necessary in order to use this material. Modern tunnel Contractors may use cyclic drill-and-blast methods on some tunnels, with intermittent shotcreting as part of an orderly cycle. The Dry Mix method is most suitable for cyclic, intermittent, relatively small-scale shotcreting. However, modern Contractors excavating tunnels continuously using large long Tunnel Boring Machines (TBMs) or Roadheaders may prefer Wet Mix shotcreting on a mass production basis. In either case, the use of steel-fiber-rein¬forced shotcrete (SFRS) promotes the rapid and economical excavation of tunnels. The addition of microsilica will improve SFRS properties and reduce rebound, and is expected to become standard practice with SFRS in North America, as it now is in Scandinavia. HISTORICAL REVIEW Steel-fiber-reinforced shotcrete (SFRS) at the present time (1985) is essentially conventional shotcrete with straight or deformed steel fibers added, and in general SFRS for tunnel linings encounters the same problems that conventional shotcrete does. Shotcrete history is well known. The use of sprayed plaster on wire frames for mounting animal skins by Carl Akeley of the Smithsonian

Jan 1, 1985

Ilmenite production in Western Australia commenced in 1956. There are now five producers, all in the Bunbury-Capel district, and current total production capacity is about 450,000 t.p.a.The deposits occur near the surface and average between 10 and 50 per cent heavy mineral. About 70-85 per cent of the heavy mineral is ilmenite. Other heavy minerals present include leucoxene, zircon, rutile, monazite, and garnet. The ilmenite contains 52-60 per cent Ti02. and is very low in chromium (0·03-0·04 per cent CrS03)Mining is done by sluicing, drag line excavation, or dredging. Primary concentration of the heavy minerals is achieved by spirals, revolving cones, or Reichert cones. After drying and screening, ilmenite is separated from the heavy mineral concentrate by various types of magnetic separator.Separate leucoxene, zircon, rutile, and monazite concentrates are also produced. Each plant uses a different technique and the processes used include chemical attritioning, screen plate electrostatic separation, high tension rolls, air tables, and dry launders.INTRODUCTIONThe treatment of beach sands in the Bunbury/Capel area for the extraction of ilmenite is a very recent development in the mining industry in Western Australia. Nevertheless, since the commencement of production in 1956, ilmenite has become the sixth most important mineral produced (Table 1).The increasing world recognition of Western Australia as a major producer of ilmenite (Table 2) is due primarily to the low chromic bxide content of the mineral (0' 03-0' 04 per cent Cr203), combined with a medium to high titanium dioxide content (54-60 per cent Ti02), supported by large reserves, a stable government, and close access to good shipping facilities. Ilmenite is. produced from these deposits at low cost which enables the industry to compete on world markets despite high rates for sea freights because of the distance from major markets.

Jan 1, 1965

By Aram Grigoryan

This paper addresses the challenges of designing the underpinning of major sub-way station with 4 operating tracks. No. 7 subway extension crosses under the existing 42nd street subway station on the 8th Avenue line. Understanding the history of the original construction, of the current structures and their condition were instrumental in developing a feasible underpinning design that is integrated with the design of the new tunnels. The existing 8th Avenue subway station has a lower abandoned level. Several alignments and corresponding underpinning schemes were studied. The design allows new tunnel construction under the station without interruption of station operations.

Several Approaches to Enhance the Bioleaching of Enargite Some approaches were investigated to enhance the recovery of Cu from enargite by bioleaching with Acidithiobacillus ferrooxidans using the galvanic interaction with pyrite and activated carbon, and with thermophilic bacteria, Acidianus brierleyi. Addition of pyrite initially enhanced Cu leaching by the Galvanic effect, but after that the formation of secondary minerals passivated the surface of enargite in inoculated batches. Activated carbon improved Cu recovery from enargite much better than pyrite, when it is contacted with enargite. Recovery of Cu from enargite has been recorded to at largest 2.4 per cent within 30 days in the presence of activated carbon when mesophilic bacteria were inoculated at 25¦C. The recovery of Cu from enargite was drastically enhanced by inoculation of thermophilic bacteria, Acidianus brierleyi, up to 60 per cent within 40 days at 70¦C and still not leveled off after 40 days unless the formation of Fe(III) precipitates occurred. After 40 days dissolved molar ratio of Cu/As is around 5.2, suggesting that metal-deficient sulfides and/or ferric arsenate might be formed on the surface of enargite.

Sep 13, 2010

Precast prestressed concrete piles designed to be end-bearing in a sand stratum at Drax Power Station met with extremely variable resistance during driving. Some piles came to virtual refusal almost immediately on entering the sand whereas others were driven to considerable penetration with very low resistance. Redriving and load tests on piles experiencing low resistance on initial drive showed that take up in strength occurred over a relatively short period of time. Investigations involving the use of pneumatic piezometers revealed the development of significant excess pore pressures during driving. Samples from boreholes showed that piles met the least resistance when the sand had a high silt content. Comparison with the original site investigation data demonstrated the difficulties in predicting detailed pile behaviour. The varied behaviour could not be related to the original borehole logs or to SPT or static cone penetrometer results. The factors controlling pile driving behaviour were essentially geological and could only be explained with reference to local soil grading.

Jan 1, 1989

By E. M. Watkin

"Land directly disturbed by hard rock mining activities in Ontario and Quebec was surveyed in 1974 as part of a country-wide assessment, (Murray 1977). Some 15, 000 hectares, or 5 7 square miles, are listed as having been disturbed by overburden removal, waste rock and tailings deposition (Table 1) in the region. That area represents sixty-eight per cent of the total area which ha1; been disturbed by mining in central and Atlantic Canada. Assessment of disturbed areas was undertaken using LANDSAT-1 and LANDSAT-2 satellite imagery. Certain limitations of the technique were recognized but the data obtained were considered a relatively acceptable assessment of the extent of disturbed areas larger than ten hectares.Approximately ten per cent of the land disturbed by mining in the two provinces has been reclaimed to varying degrees. Indeed, this proportion is correct for the country as a whole. As pointed out by Ripley, Redmann and Maxwell (1978), some of the land was disturbed long before environmental concern 01· reclamation were ever considered. In numerous instances reclamation will remain impossible until presently active operations are closed. Nevertheless, these authors feel such figures make it clear that reclamation has not been a high priority in Canada in the past. Canada is a vast country, and there has been little pressure toward efficient use of all land space. Most mining operations occur in areas distant from the country's population centres. Under these circumstances, therefore, the pressure to reduce the environmental impact of mining is much less than in the more densely populated areas of Europe and the eastern United States, where such activity can occur in or adjacent to large metropolitan areas."

Jan 1, 1980

By J. D. Morgan

Introduction In 1986, the US economy passed the $4 trillion mark. However, the value of domestically processed materials of mineral origin fell slightly to $240 billion. The value of metals produced from US ores was unchanged at $5.6 billion, as was recycled scrap at $4 billion, while the value of industrial minerals rose slightly to $17.9 billion. Consumer demand strongly affects mining and the US economy is relatively saturated with longlived products. Moreover, in recent years there has been a steady increase in consumer, mortgage, and federal debt, inhibiting new purchases of goods. Motor vehicles and housing are major traditional markets for mineral materials. However, the 242 million US citizens already possess 170 million licensed motor vehicles and 92 million dwelling units. In 1986, domestic motor vehicle production fell 3%, to 11.3 million units, while new housing starts rose slightly to 1.8 million units. Nearly all mineral commodities move relatively freely in world trade. As detailed in Figs. 1 and 2, in the last three decades world production of major mineral materials has greatly increased. At present, substantial excess productive capacity exists not only in the US but also in many other countries. Consequently, the US mineral industry is encountering increasing competition from other sources, along with increasing competition from newer, engineered materials. For example, US production of plas¬tics has risen from 900 kt (1 million st) in 1950 to 22.7 Mt (25 million st) in 1986 - on a volume basis significantly greater than steel. Plastics, too, are mineral-based materials, some 7% of petrochemicals going to their manufacture. 1986 saw increased calls for protection. But President Reagan, in his 1987 State of the Union Message and Economic Report to the Congress, reaffirmed adherence to a policy of free and fair trade. However, he stressed the need for increased efforts to open foreign markets to US exports and to increase competitiveness of US industry US imports of mineral-based minerals in 1986 were valued at $40 billion and exports at $24 billion. Strategic minerals As detailed in Fig. 3, imports supplied a significant proportion of total US consumption of several important materials, including many classified as "strategic and critical." There were no changes in stockpile policy during the year. Congress debated the President's 1985 proposals to reduce stocks of World War II-type materials and to focus more on high technology materials needed for the cutting edge of future military material. But no final action resulted. However, Congressional concern about apartheid in South Africa did result in increasing pressure to limit imports of South African minerals. Meanwhile, the National Critical Materials Council in the Executive Office of the President intensified its efforts to be better able to advise the President. The Defense Production Act provides authority for priorities and allocations, supply expansions, voluntary agreements, and

Jan 5, 1987

By Annie G. Smelley

The Bureau of Mines is testing a dewatering technique for phosphatic clay waste that will recover a portion of the water lost using conventional waste disposal methods and produce solids suitable for land reclamation. The technique utilizes a flocculant, polyethylene oxide (PEO), that forms strong, stable flocs that can be dewatered on a static screen followed by further dewatering on a rotary screen. In field tests conducted in northern Florida, clay wastes containing a nominal 2.5 pct solids have been consolidated to greater than 20 pct solids. The rate at which PEO-treated material continues to dewater in a mine cut also was monitored. Preliminary results indicate that PEO--treated material will dewater to 30 pct solids in 140 days. Pretreatment of phosphatic clay waste with lime and H202 was shown to improve the dewatering technique for problem clay wastes.

Jan 1, 1985

By K. Boakye, T. Newman, P. Bláha, M. B. Toelle

"This paper presents a quarry optimization plan using a block model and an in-house development quarry scheduling and optimization software (QSO Expert) to help improve quarry operations at Crystal River. The Crystal River Quarry is an underwater quarrying operation that barges limestone via the Gulf of Mexico, as the main source of raw material to a cement plant in Theodore, Alabama. To improve the quarry operation, an evaluation was completed to optimize the quarry planning and extraction procedures of the quarry. In order to achieve this, additional exploration drilling campaign was implemented, a new block model was re-calculated and the latest version of QSO Expert software was used. The primary economic impact is a higher recovery of limestone reserves; sustainability of resources, corresponding longer quarry life. Secondarily as the limestone is mined underwater and stockpiled above water, drainage reduces moisture content achieving direct cost reduction on limestone shipping. In addition, a considerable reduction in operational cost was achieved due to a significant decrease in consumption of electrical energy, reduced dragline maintenance costs and reduced dragline movements within the operation. INTRODUCTION Holcim is a Swiss-based global building materials and aggregates company. Founded in 1912, the company expanded into France and then throughout Europe and Middle East during the 1920s. In 1922, Holderbank, as the company was then known, expanded beyond the Swiss borders into France. By the end of the decade Holderbank held stakes in Belgium, Germany, the Netherlands, and Egypt (Holcim History 1912-2012) Positions in Lebanon and South Africa soon followed.. Holder bank later expanded in North America in the 1950’s. In the late 1970s and early 1980s, Holderbank continued its expansion in Latin America, Asia and Spain for the first time. The company expanded into Eastern Europe and experienced a boom in Spanish construction preceding the 1992 Summer Olympics. By 1986, Holderbank was the world's largest cement manufacturer. In the 1990s, the company consolidated its European holdings as the American market drove growth. Expansion into Eastern Europe and Russia continued (Holcim History 1912-2012). In 2001, the company changed its name from ""Holderbank Financière Glaris"" to Holcim (short for Holderbank ciment) (Holcim History 1912-2012). Holcim expanded by purchasing Aggregate Industries entering into the United Kingdom for the first time. That year, the company also expanded into India by acquiring a stakes in The Associated Cement Companies (ACC) and Ambuja Cement Eastern. In 2008, Holcim became the largest shareholder of China's Huaxin Cement with a 40% stake. In 2009, they acquired Cemex Australia. In 2014, Holcim and Lafarge announced they had agreed to terms on a ""merger of equals"" valued at nearly $50 billion in 2015. The new company LafargeHolcim based in Switzerland has a manufacturing capacity of 427 metric million tons a year."

Jan 1, 2017

By A. B. Cecala, G. W. Klinowski

Introduction The US Bureau of Mines has designed and evaluated total mill ventilation systems (TMVS) at two mineral-processing operations. Both systems have proven proficient at cost-effectively reducing respirable dust levels throughout the mills. An 11.8-m3/sec (25,000-cfm) system installed at a clay-processing mill provided about 10 air changes per hour (acph). This system reduced respirable dust concentrations by about 40% throughout the mill building. The second evaluation was performed at a silica sand operation. Tests were performed with 23.6 and 47.2 m3/sec (50,000 and 100,000 cfm) of ventilation to the mill building, corresponding to 17 and 34 acph. Average millwide respirable dust reductions were 36% and 64%, respectively. This work was done to determine general guidelines and design criteria for operations that may be interested in implementing TMVS. TMVS should be designed to draw clean make-up air in near the base of the mill. This air provides general purging and may clear some dust-laden areas throughout the mill structure. It is discharged at or near the top of the structure. Without the TMVS, dust can exit the building through open doors, windows, etc. and contaminate outside plant workers. This dust can also be recirculated back into the mill building causing additional contamination problems. TMVS is not a stand-alone system. It is a supplemental technique to assist other localized dust control systems (Mody et al., 1987). Testing Total mill ventilation systems were evaluated at two processing operations. For both tests, the primary goal was to determine the reduction in respirable dust throughout the structure. Test site No. 1. The first evaluation was performed at a clay-crushing and screening mill in New York. The mill's base dimensions were 39.6 x 9.8 m (130 x 32 ft), giving a volumetric capacity of 4250 m3 (150,000 cu ft). The TMVS was designed to provide 12 m3/sec (25,430 cfm) of ventilation air to the mill, representing about 10 acph. This was accomplished by three 4 m3/sec (8475 cfm) roof-powered exhaustors that were evenly spaced across the roof. Three wall louvers provided inlets for make-up air at the mill's base. Two evaluations were performed at this mill. The first occurred for two days in December when outside air temperatures ranged from -12.2° to 4.4° C (10° to 40° F). Temperatures with the wind chill factor dropped as low as -34° to -40° C (-29 to -40° F) during the early morning. The second evaluation was in April when outside air temperatures ranged between 10° to 26.7° C (50° to 80° F). These two evaluations verified the effectiveness of TMVS in lowering respirable-dust concentrations throughout the mill. Gravimetric-sampler respirable-dust concentrations in December ranged from 0.22 to 2.39 mg/m3 under normal conditions, compared to 0.13 to 1.55 mg/m3 with TMVS. In April, respirable dust concentrations ranged from 0.29 to 4.84 mg/m3 under normal conditions compared to 0.21 to 2.37 mg/m3 with the system on. TMVS also increased visibility throughout the mill building. Dust reductions for gravimetric and RAM-I instruments are listed in Table 1. Each value was determined by comparing the average concentration for the entire day of testing for normal and TMVS values. The mean/standard deviation values for gravimetric and RAM-1 results were 42.5/17.6 and 37.1/16.8, respectively.

Jan 1, 1996

By K G. Harding, E L. Haggard, C M. Sheridan

Mining is a water intensive sector, contributing to declining water resource quality around the world. Improvements to current mine water management practices can help reduce the amount of water utilised by the mining sector and the impact on water resources. Creating a water account can help companies understand water use in their operations and identify areas where water reduction is possible. Water accounting methods include the Water Footprint Network method and the WaterMiner tool.The Water Footprint Network method is used to determine the amount of direct and indirect water used by an organisation either in a process or to manufacture a product. The total water footprint is divided into the blue, green and grey water footprints. Blue water is the amount of water abstracted from surface and ground water resources. Green water is the amount of rain water utilised. Grey water is the amount of freshwater required to assimilate the waste stream to the natural resource and still conform to ambient water quality standards.The WaterMiner tool is a program available via the internet, which can be used to model water use of mineral processing sites. The program reports the amount of raw, worked and treated water used by the process and recommends flows that can be added to reduce the amount of fresh water required by the process.To gain information on mine water management practices in South Africa, a water account for a platinum mine was developed using the Water Footprint Network method and WaterMiner tool. Based on the results, suggestions to reduce the amount of fresh water utilised are made.CITATION:Haggard, E L, Sheridan, C M and Harding, K G, 2013. Water footprint for a South African platinum mine, in Proceedings Water in Mining 2013 , pp 15-20 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 26, 2013

By Beevers J

The Ok Tedi Project is now a high production open-pit porphyry copper mine located in the Star Mountains of Papua New Guinea (PNG). At present, total daily production is 190 000t of ore and waste. Large scale drilling and blasting has only been in operation since 1988, prior to which all material was removed by ripping and dozing. This paper reviews the steps taken over the last 12 months in establishing a more efficient drilling and blasting operation and highlights the significant reduction in powder factor. These improvements have been achieved largely through the introduction of air-bags, controlled pattern expansion and an overall focusing on the operation by involving consultants, ICI's technical service and internal departments.

Jan 1, 1991

By Mike Johnson, Greg Andrews, Niels Verbaan, David Dreisinger

"The Search Minerals Foxtrot project in Labrador represents a significant Canadian resource of rare earth elements rich in the sought after heavy rare earth elements (19.8% HREE/TREE). A preliminary economic assessment of the project indicated that the project is technically feasible and economically attractive. A variety of metallurgical test programs have been undertaken which have led to significant streamlining and simplification of the process flowsheet. The improved flowsheet should allow Search to reach production earlier and will use conventional processing equipment. The results of these test programs are presented and discussed in this paper INTRODUCTIONSearch Minerals Inc. (Search) is exploring and developing a number of deposits for rare earth element (REE) recovery in Labrador, Canada. The Port Hope Simpson District is in the southeast of Labrador and is highly prospective for heavy and light rare earth elements. The Foxtrot deposit sits within the Port Hope Simpson REE District (Figure 1), which is 70 km long by up to 10 km wide. The infrastructure available at Foxtrot is excellent; a deep-water port, air strip, and road and power infrastructure are pre-existing at St. Lewis. The three communities of Port Hope Simpson, St. Lewis and Mary’s Harbour are in close proximity to the site."

Jan 1, 2016

"Each and every flotation plant must produce daily/weekly/monthly production reports in which metal balances for payable and penalising elements are presented. Several factors including ore heterogeneity and harsh production environment affect the reproducibility of the reported data. Best practices of metal accounting thus prescribe that production reports be accompanied by measurement quality reports quantifying the reproducibility (a data quality metric often expressed as a relative standard deviation) of each data reported. Ignoring the irreproducibility of measurements may lead to the perception that random errors have been totally eliminated through statistical data reconciliation, which is wrong. This paper aims at explaining the full lifecycle management of reproducibility estimation from the outset at the measurement process to its reporting after having been through the statistical data reconciliation process. Indeed, the reproducibility of reported data can be obtained by performing a sensitivity analysis. Necessary conditions for obtaining a truly representative assessment of measurement reproducibility are stated. Typical levels of measurement reproducibility found in operating flotation plants are also reported. These numbers can be used as benchmarks for reproducibility levels that can be realistically expected.IntroductionEach and every flotation plant must produce daily/weekly/monthly production reports in which metal balances for payable and penalising elements are presented. Such production reports are the most expected output from a metal accounting system (MAS). The duly recurrence of this task combined with an insufficient level of automation has somehow contributed to the misleading perception that it is mainly a clerical work. However, as shown in Figure 1, a MAS encompasses way more than just a reporting system. Acknowledging that the content of production reports indubitably origin from raw measurements has important implications for how both the reports and MAS should be monitored."

Jan 1, 2016

By Michael Lane

With the success of their existing casino operation on the Ohio River in Lawrenceburg, Indiana, the Indiana Gaming Co., LP planned a major expansion of the current facilities. This expansion includes a second 1400+/- car parking garage, a new surface parking lot, elevated walkways, and a new floating casino that will double their present square footage and consolidate all of the gaming activity to one floor. In March of 2006 Richard Goettle, Inc. was awarded the general contract to construct a 260? x 520? boat slip for the new Argosy VII floating casino. An Open Cell® bulkhead system was specified as the means for constructing the new slip. Our contract included the purchase and installation of 300,000 square feet of PS27.5 sheet pile, excavation of 230,000 cubic yards of soil, and a 3300 square foot Mechanically Stabilized Earth wall.

Jan 1, 2008

By William Gleason

Despite a global slowdown in most mining sectors, Caterpillar, the world?s largest mining equipment maker continues to forge ahead with new, and improved offerings to the global mining industry. On Nov. 10, as part of its Loading and Hauling Mining Focus Session at its Tinaja Hills proving grounds south of Tucson, AZ, Caterpillar unveiled to customers and media its two latest mining products, the 994K wheel loader and 6020B hydraulic shovel. The Caterpillar 994K wheel loader builds on a nearly 25-year history of the 994 model but with one noticeable difference ? the 994K is bigger ? much bigger. Weighing in at 239,142 kg (527,218 lb) the 994 K is up to 20 percent larger and comes with up to 30 percent increase in payload capacity. This behemoth of a machine is currently being tested at Caterpillar?s Tucson Proving Grounds, Anglo Gold Ashanti?s Cripple Creek and Victor gold mine in Colorado and Taseko?s Gibraltor copper and molybdenum mine in British Columbia, Canada.

By J. Z. Cui

In this paper a statistical multi-scale method for the mechanics parameter prediction of the rock mass with random distribution of multi-scale cracks/joints is presented. First the micro-structure of the rock mass with random distribution of multi-scale cracks/joints is represented. Then the statistical second-order two-scale method for the mechanics performance predictions of the rock mass structure with random cracks/joints distribution is presented, including the statistical second-order two-scale expression on the vector-valued displacement, strain tensor and stress tensor, and the algorithm procedure of statistical multi-sale computation for the mechanics parameters. Finally some numerical results for mechanical parameters for the rock mass with random distributions of multi-scale joints/cracks by statistical multi-scale method are shown.

May 1, 2009

By C S. Szentesy, K Howie

The Rosia Montana gold deposit is located within the æGolden QuadrilateralÆ area in the Apuseni Mountains of Transylvania, Romania. The deposit is situated approximately 85 kilometres north of the regional centre of Deva, within the province of Alba, at elevations of up to 1100 metres above sea level. The Rosia Montana deposit contains a current resource of 344.07 million tonnes at an average grade of 1.3 grams per tonne (g/t) gold (Au) and 6.0 g/t silver (Ag) for a total (measured, indicated and inferred) contained resource of 14.29 million ounces of gold and 67.00 million ounces of silver. The resource was calculated using a 0.6g/t Au cut-off, a 10 x 10 x 10 metre block size and multiple indicator kriging. The low sulfidation style epithermal mineralisation at Rosia Montana is hosted within Tertiary age dacite intrusions and related vent breccias. Mineralisation is generally disseminated and associated with silica, adularia, illite, pyrite and carbonate alteration of host rocks, with minor late carbonate-base metal veins. Precipitation of precious metals is generally considered to have occurred as a result of over-pressurization, boiling and subsequent brecciation. The dacite intrusions are hosted in Cretaceous shallow marine and deltaic shales and slates, which overlie older Paleozoic sedimentary and metamorphic rocks within uplifted sections of oceanic sea floor.

Jan 1, 2002

By H M. Ahmed, W S. Dunbar

Construction of cave mining systems requires significant capital expenditure and long-term commitment of human, equipment and material resources before production commences. Risks and uncertainties of these large-scale mining projects are significantly higher than for small-scale projects. This is due to the complexity and interactions of the construction schedule components and the large scale and uniqueness of such projects. One way to successfully manage construction uncertainties that would lead to schedule delays is to include a reasonable cost contingency in the budget estimation. A real options approach based on the least-squares Monte Carlo (LSM) method is used to estimate cost contingency associated with schedule uncertainty in mass mining projects. Cost contingency is estimated as the cost of potential project crashing (acceleration) decisions, which pays for not extending the schedule. While such a significant undertaking is expected to be subject to some delays, these can have an enormous impact on the economic value of such projects. The value of the crashing option was explicitly formalised into the process of valuation, as it is assumed to be a single option being considered in the valuation at every decision point prior to the construction completion date. As a part of the proposed method, a stochastic function for the percentage of remaining scope of work for the remaining duration of the entire project was integrated into a framework of numerical simulations. This ensured that this function can implicitly account for sources of schedule uncertainties for projects represented by multiple and overlapping work packages. The LSM method was applied to a real case scenario in an operating block cave mine, with modified scale and features. The results yielded by the LSM method indicated that significant changes in capital budget allocation stem from variation in a contractor’s risk perception and confidence level of estimated delays.CITATION:Ahmed, H M and Dunbar, W S, 2016. Budget estimation and contingency allocation of block cave construction using least-squares Monte Carlo real options, in Proceedings Seventh International Conference and Exhibition on Mass Mining (MassMin 2016), pp 801–808 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 9, 2016