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By James E. Breland

A case study of tangible and intangible costs incurred by a coal mining company for meeting the requirements of the Federal Coal Mine Health and Safety Act of 1969 is discussed. For clarity, the data is presented on a "before and after" basis, with special emphasis on safety records, costs, and production performance. The cost figures have been subjected to outside verification.

Jan 1, 1975

By S. A., Taylor

IT is very difficult to arrive at exact figures for the cost of maintaining excess capacity of coal mines, but we can approximate the various items. To do this, I will take the Pittsburgh district of Pennsylvania and the other districts can be compared to this one. I believe we can take the depreciation item of plant ac- count as a whole and discount it over a period of 20 years; while this is high for some items it is low for others and I believe it is not far from a safe basis. This equals 5 per cent per year, and this depreciation will take place about as rapidly when not in use as when in operation. A fair value in the Pittsburgh district to- day for plant and houses is close to $4 per ton per annum. At 5 per cent this will equal 20 cents per ton per year. The item of keeping the mine in condition, free from water, etc., will be close to an average of 2y2 cents per ton per annum.

Jan 1, 1928

By Paul M. Tyler

Mineral raw materials, because they are essential to our industrial prosperity and military strength, must be made available in substantial quantities. regardless of cost. Variations in the cost of procuring minerals, as compared with the cost of obtaining other commodities, and changes in the cost of production of different minerals relative to one another, will naturally influence the quantities of a given mineral item that can be marketed readily. However, in the last analysis, the cost of winning minerals from the ground usually constitutes only a small fraction of the value of the end-use products and services derived from them. The miner's share of the cost of a typewriter, telephone circuit, or even a modem office building, is almost insignificant. Far more important to the ultimate consumer, therefore, than any minor saving in cost is the assurance of ample supplies of the minerals needed to aliment our expanding economy. To create a successful metal mining operation involves ( 1 ) the discovery and systematic development of a mineral deposit, (2) extraction of the ore, (3) the mechanical and metallurgical processing to eliminate worth- less or harmful impurities, and (4) the profitable disposal of the product. The first step of the technological process belongs chiefly in the realm of the geologist, the second is a mining engineer's job, the third is mainly up to the millmen and extractive metallurgists; whereas the fourth and equally important step poses a commercial problem that has aspects in common with the marketing of other products. Ore finding is far from being an exact science. There is no mathematical criterion for evaluating the efficiency of prospecting and exploration. Lady Luck shares the honors or assumes part of the blame along with the prospector and geologist. Marketing like- wise involves factors that seemingly defy engineering analysis. Although the other steps can be measured with some degree of mathematical accuracy, even they tend to vary so widely in basic principle, as well as in

Jan 1, 1959

By Paul M. Tyler

Mineral raw materials, because they are essential to our industrial prosperity and military strength, must be made available in substantial quantities regardless of cost. Variations in the cost of procuring minerals, as compared with the cost of obtaining other commodities, and changes in the cost of production of different minerals relative to one another, will naturally influence the quantities of a given mineral item that can be marketed readily. However, in the last analysis, the cost of winning minerals from the ground usually constitutes only a small fraction of the value of the end-use products and services derived from them. The miner's share of the cost of a typewriter, telephone circuit, or even a modem office building, is almost insignificant. Far more important to the ultimate consumer, therefore, than any minor saving in cost is the assurance of ample supplies of the minerals needed to aliment our expanding economy. To create a successful metal mining operation involves (1 ) the discovery and systematic development of a mineral deposit, (2) extraction of the ore, (3) the mechanical and metallurgical processing to eliminate worthless or harmful impurities, and (4) the profitable disposal of the product. The fist step of the technological process belongs chiefly in the realm of the geologist, the second is a mining engineer's job, the third is mainly up to the millmen and extractive metallurgists; whereas the fourth and equally important step poses a commercial problem that has aspects in common with the marketing of other products. Ore finding is far from being an exact science. There is no mathematical criterion for evaluating the efficiency of prospecting and exploration. Lady Luck shares the honors or assumes part of the blame along with the prospector and geologist. Marketing like- wise involves factors that seemingly defy engineering analysis. Although the other steps can be measured with some degree of mathematical accuracy, even they tend to vary so widely in basic principle, as well as in

Jan 1, 1964

By H. R. Reed

THE cost of hoisting with electricity in deep mines is a matter about which little information has been published. This paper makes a detailed study of such costs and presents the information in a series of curves. In particular the curves show the cost of hoisting ore from depths varying from 500 to 7000 ft. vertical with the shaft at 70º incline for the double cylindroconical and double cylindrical drums, the hoists operating balanced, using Ward Leonard and Ilgner-Ward Leonard control, and designed for most economical operation from each depth. Operation with the double cylindrical drum is expanded to cover hoisting from 2000 to 5000 ft. using equipment designed for 5000 ft. and from 4000 to 7000 ft. using equipment designed for 7000 ft. Additional curves are included to show the ratings of the necessary hoist motors, energy input per hoisting cycle and size of flywheel in tons for complete equalization when the Ilgner-Ward Leonard system is used, also hoisting efficiency. The duty imposed on a mine-hoist motor fluctuates between wide limits during a cycle of operation. The demand on the motor may vary from a large horsepower value near the beginning of the cycle to a small or a negative demand near the end of the cycle. Such factors as tonnage to be raised per hour, depth of shaft, and balanced or unbalanced operation have such a marked effect on the operating cycle and vary to such an extent for different mines that no set of rules can be formulated for quickly determining the size of the motor required. The duty cycle from which the motor rating is derived must be determined for each case according to the conditions of the proposed hoisting operations. The motor torque required at the cardinal points of the duty cycle is determined from the moment or torque in pound-feet necessary to raise and lower the load and ropes, accelerate and retard the load, ropes, drum, etc. The torque diagram depends largely upon the type of drum. Two different types of drums, if used on exactly the same duty cycles, may have widely different peak demands and capacities of hoist motors. The essential feature in the design of hoisting drums and in determining

Jan 1, 1937

By H. R. Reed

THE cost of hoisting with electricity in deep mines is a matter about which little information has been published. This paper makes a detailed study of such costs and presents the information in a series of curves. In particular the curves show the cost of hoisting ore from depths varying from 500 to 7000 ft. Vertical with the shaft at 70° incline for the double cylindroconical and double cylindrical drums, the hoists operating balanced, using Ward Leonard and Ilgner-Ward Leonard control, and designed for most economical operation from each depth. Operation with the double cylindrical drum is expanded to cover hoisting from 2000 to 5000 ft. using equipment designed for 5000 ft. and from 4000 to 7000 ft. using equipment designed for, 7000 ft. Additional curves are included to show the ratings of the necessary hoist motors, energy input per hoisting cycle and size of flywheel in tons for complete equalization when the Ilgner-Ward Leonard system is used, also hoisting efficiency. The duty imposed on a mine-hoist motor fluctuates between wide limits during a cycle of operation. The demand on the motor may vary from a large horsepower value' near the beginning of the cycle to a small or a negative demand near the end of the cycle. Such factors as tonnage to be raised per hour, depth of shaft, and balanced or unbalanced opera-tion have such a marked effect on the operating cycle and vary to such an extent for different mines that no set of rules can he formulated for quickly determining the size of the motor required. The duty cycle from which the motor rating is (derived must he determined for each case according to the conditions of the proposed hoisting operations. The motor torque required at the cardinal points of the duty cycle is determined from the moment or torque in pound-feet necessary to raise and lower the load and ropes, accelerate and retard the load, ropes, drum, etc. The torque diagram depends largely upon the type of drum. Two different types of drums, if used on exactly the same duty cycles, may have widely different peak demands and capacities of hoist motors. The essential feature in the design of hoisting drums and in determining

Jan 1, 1937

By R. C. Wilmoth, R. D. Hill, R. B. Scott

A cost breakdown is given for reclamation and mine drainage abatement conducted by the Federal Water Quality Administration's demonstration project near Elkins, W. Va. Costs for construction of control measures have been developed and include backfilling strip mines, sealing subsidence areas, reconstructing stream channels, and installing mine seals to prevent the entrance of water and air.

Jan 1, 1973

By L. P. (Les) Haldane

Building a small underground coal mine is a risky endeavor, especially in the recent economic environment. ARCO's Mt. Gunnison No. 1 Mine, located in western Colorado, was designed and built as a small expandable speculation mine with initial production to be sold on the spot market, so it was very important to minimize capital exposure. This mine, operated by West Elk Coal Company, a subsidiary of Anaconda Minerals, was successfully built under budget at $35 million, and has been operating successfully since completion of construction in late 1982. The initial planning phase of a project is extremely important for testing the economic and technical feasibility of a proposal. The construction phase, by contrast, carries with it significant cost and quality risks which can relate to long-term economic and operating problems and therefore directly affect the viability of the project. This paper discusses several different aspects of the cost overrun risk involved in building an underground coal mine, and how attempts were made to minimize these risks during construction of the Mt. Gunnison Mine. Good people, construction planning, and execution are essential factors in assuring a quality, cost-effective project, with corresponding risk minimization during the construction phase and long term favorable implications for the operating phase.

Jan 1, 1985

By Dennis A. Clark, Brent Larsson

Tunnelling today is a lot more than drilling and blasting. The developments in drilling and blasting technique have made it pos¬sible to save costs both by increasing the advance per round and optimizing the demands on the final contour. Increasing the hole depth by using longer feeds and bigger dril¬ling rigs make the drilling time shorter compared to the set up time. It is important that the deeper holes are followed up by using a suitable cut. The most common cut in Sweden today is a parallel hole cut with one or more large holes; with a diameter corresponding to the hole depth and wanted advance per round. It is often specified that smooth blasting is to be carried out with a specific drill hole spacing. It is extremely rare, however, for specifications to be issued concerning the alignment of the raw of holes closest to the contour holes. It is very easy to ruin the effect of smooth blasting altogether by firing the rest of the round carelessly with an excessively high charge distribution. The drilling and blasting of the contour holes and the line of holes closest to the contour holes is therefore an extremely important part of any underground work. Accuracy and care in connection with the drilling of contour holes is also extremely important since it is possible to reduce the amount of overbreak, the result being more rapid mucking out, smoother and more durable surfaces and also less consumption of concrete for lining purposes.

Jan 1, 1983

By Thomas H. Sheldon

IN the zeal for opening up new ore-bodies, or for. extracting the ore from attractive bodies gal ready opened up, we very often lose sight of the fact, that, after all, the operation of a mine is a business proposition, pure and simple; and for the best working-results should be treated upon a strict business basis. Of course, in every mine of consequence a record is kept of expenditures and receipts, and such glittering generalities as "gross receipts," " net receipts," " mining expenses," .and " per cent. profit," can be told to the cent; but does this . record show economy of management, either as compared with the same record of other months, or as compared to the record of other mines of the' same class ? Moreover, if such a record shows that the cost of mining is high, does it in any way en¬able the manager to put his finger on the leakage? Does it necessarily follow that a mine which makes a profit of, say, 40 per cent on 25-dollar ore, is doing less economical mining than one which saves 60 per cent on 80-dollar ore ? Of course the figures in the latter case look the more attractive, but when it comes to a point of saving everything which can be saved, and of cutting down expenses to the lowest possible cost of operation, the former mine is doubtless on the most firm and economical financial basis. But as the relative merits of the system of mining in the two cases, nothing could be decided without a basis of detailed comparison ; if one system is more economical than the other, why is it so, and wherein does the advantage lie ? This can be shown only by keeping accurately the cost of each mining operation. And no matter how dissimilar two mines may be in character and operation, yet there are a few general heads common to all mining operations. In the first place, it is necessary to break the ore from the solid ground ;

Nov 1, 1905

By Sandip K. Mukherjee, Anthony W. Laurito, Madan M. Singh, Jon C. Volkwein

In the past, little attention has been paid to the costs of ventilation, since it seldom represented a significant portion of the total mining cost. However, in recent years adverse mining conditions and increases in power charges have caused ventilation costs to rise. The federal regulations have set minimum standards for volumetric airflow rates in underground coal mines. As a mine develops, the air volume and pressure requirements increase. There are several methods by which the quantity of airflow to the mine and working faces can be increased. Some of the methods include (1) increasing main fan output or replacing the main fan by a new higher capacity fan, (2) reducing leakage across stoppings and overcasts, (3) adding a new ventilation shaft or borehole, (4) reducing resistance to airflow by reducing the resistance factor of the individual airways, increasing the number of airways (especially the parallel airways), or re- arranging the air courses by using the available entries, and (5) using auxiliary ventilation systems. This paper addresses the cost-benefit analysis of several of these alternatives as applied to a large operating coal mine located in southern Illinois. Pressure and quantity surveys were conducted under-ground, and measurements were taken at the main exhaust fans on the surface. The existing ventilation network was modeled by using the Penn State ventilation simulator. The input data included the configuration of branches, resistance of each branch (including a component for shock losses), and changes in pressure and volume. The results of the simulation were compared with the survey data to check the merits and accuracy of the model network. The net- work was designed to take into account shafts, major entries, overcasts, regulators, gob areas, working faces, and major leakage paths. The model network served as the basis for the cost analyses of networks designed for increased airflow. The applicable alternatives for increasing airflow were simulated. Performance data obtained from these simulation runs were utilized to conduct the cost-effectiveness analysis. The costs for each f the alternatives included capital, operating and maintenance costs. These costs were expressed as annual costs in terms of dollars per cfm of circulating air, taking into account the economic life associated with each of the alternatives. The benefits were expressed as increased airflow quantity in the critical sections. The result of these analyses show that for the short-range plans evaluated, the most cost-effective way of increasing airflow at this mine would be to reduce leakage through stoppings and overcasts.

Jan 1, 1982

By Frank M. Howell, Claude E. Schmidt

To counteract the spiralling costs of labor and materials against the fixed sale of its product, namely, gold at $35 per oz, Homestake Mining Co. has revised the milling flowsheet once and effected increases in the daily milling rate twice in the past 12 years. During this period the mining department has been able to hold production costs steady by increased productivity through technical improvements and utilization of the most modern mining by CLAUDE E. SCHMIDT and FRANK M. HOWELL, JR. 46-MINING ENGINEERING, APRIL 1963 equipment. The flowsheet alteration occurred during 1951-1953 when the two crushing plants at the shaft head frames were converted to a three-stage crushing system with the third stage closed circuited to produce a minus 5/8-in. product as rod mill feed.

Jan 4, 1963

By S. M. Bishoff

The disturbance of surface land to support the underground mining of coal requires several hundred acres to produce easily in excess of $1 billion in sales at a moderately sized mine over 20-30 years. Due to the recent influx of environmental legislation, these surface operations must now undergo complete reclamation upon permanent cessation of production. This reclamation procedure has become so complex that the cost of reclamation must be a major consideration in the design of a new mine. This presentation will discuss these costs as they may be methodically evaluated and surcharged as a percentage of the product price. When placed in the proper, logical perspective, it is anticipated that the obstacles involved in this process may be minimized.

Jan 1, 1985

By Charles H. Thurman

THE data given herein were first included in a paper read before San Francisco Section, A.I.M.E., in October 1940, and are applicable to conditions existing until the gold-dredging industry was temporarily suspended by Order L-208 of the War Production Board in the fall of 1942. There is no doubt that gold dredging will be resumed at some future time, and on a scale equivalent to that of the recent past, but the cost data given herein will be affected to some extent by conditions existing at that time, and by labor rates and prices for materials then prevailing. DRAGLINE VS. BUCKET-LINE Dragline dredges should not be considered for mining large areas of low-grade placer gravel. In such deposits a dragline operator with a 5-cu. yd. dragline would be doing well to maintain an operating cost of 6¢ per cu. yd., while a bucket-line dredge with buckets no smaller than 7 cu. ft. each could be operated for less than 4¢ per cu. yd. By operating costs, I mean only field charges such as direct operating and overhead, which includes pay roll, power or fuel, repairs and maintenance, insurance, land clearing and general expenses, but not including such items as prospecting, depletion, depreciation of equipment, State Franchise Tax, or Federal Income Tax. It is not to be inferred that a dragline dredge cannot make a profit in small low-grade deposits, where the extent of a given property is too small to justify the use of the more costly bucket-line dredge. Consider small deposits of 10¢ gravel. It is obvious that a deposit of 5,000,000 cu. yd. of such gravel could not be mined profitably with a new, 7-cu. ft. bucket-line dredge, costing upward of $250,000, and with operation costs at 4¢ per cu. yd., paying for land or royalties out of earnings; nor could a new combination 5-cu. yd. dragline and washing plant, worth upward of $125,000 and working at 6¢ per cu. yd., make a profit. These comparisons are made because the hourly capacity of both types of dredges is nearly the same. The bucket-line dredge averages 93 per cent operating time in 24 hr., as against about 80 per cent or less for the dragline dredge. These percentages of operating time are important factors in making a comparison of this kind. The bucket-line dredge has greater efficiency in cleaning soft bedrock, usually characteristic of dredging deposits, and a 7-cu. ft. bucket-line dredge can be efficient to a total digging depth of 80 ft. (65 ft. below water, 15 ft. above). A 5-cu. yd. dragline dredge is limited to about 30 ft. of efficient digging depth, 5 ft. of which could be above water. In small areas of gravel not over 30 ft. deep, a 5-cu. yd. dragline dredge could make a profit where a bucket-line dredge could not do so. As an example: compare the dredging of 3,000,000 cu. yd. of 10¢ gravel 28 ft. deep with bucket line, costing 4¢ per cu. yd., and with a 5-cu. yd. dragline dredge operating at 6¢ per cu. yd. Because of small yardage, new equipment is not warranted, therefore we can assume that the dredges of both types are used equipment, fully depreciated. Dismantling, mov-

Jan 1, 1945

By L. C. Noakes

In 1947, only a year after its own establishment, the Australian Bureau of Mineral Resources, Geology and Geophysics formed a Mineral Economics Section. Originally, this Section consisted of a mineral economist, four geologists and three auxiliary employees. Then, in 1954, it was reorganized into a professional body of six members, all mineral economists, one of whom was the chief mineral economist. At this time, a mining statistical officer from the Bureau of Census and Statistics was attached to the Section to bring about a closer liaison between these two agencies. The addition of another mineral economist in 1961 brought the Section's professional staff to its present strength of seven. In recent years, the Mineral Economics Section has gained considerable support by becoming part of the Mineral Resources Branch of the Bureau of Mineral Resources. This Branch, which has the general role of monitoring the performance of the mineral industry in Australia, has two other specialized sections- Mining Engineering and Petroleum Technology-which bolster and complement the Mineral Economics Section.

Jan 1, 1970

By Brian W. Mackenzie

Since mineral economics is often coupled with mining engineering in the solution of mineral industry problems, it is important that the principles of this science be a part of the mining engineer's education. Essentially, mineral economics is the application of economic principles to analysis of the multistage process by which minerals are converted from geologic resources to marketable products. In some instances, it may require only the analysis of case studies from a well- developed economics core. In others, however, it requires special skills, because some aspects of the mineral conversion process--such as mineral occurrence, exploration investment and depletion-have no complete parallel in general economics. The mining engineer has been an important contributor to the analysis of mineral economics problems because of his special knowledge of the mineral industry.

Jan 1, 1971

By L. C. Noakes

Despite a long history of mining. Australia had no Commonwealth organization dealing specifically with the mineral industry until 1946, when the Australian Bureau of Mineral Resources, Geology and Geophysics was established. Once formed, this new organization quickly expanded to include a Mineral Economics Section, which was established in 1947. Australia's slowness to develop a Federal bureau for the mineral industry can best be explained in the light of her political history. From a group of British crown colonies, Australia evolved into six sovereign states which had no unified federal government until they formed the present Commonwealth in 1901.

Jan 1, 1970

COUNCIL OF EDUCATION OF AIME (Formerly Mineral Industry Education Division) Established as a Division January 15, 1932 Established as a Council February 26, 1957 John C Calhoun, Jr, Chairman 0 Cutler Shepard, Vice-Chairman Thomas A Read, Secretary-Treasurer Dept of Mining & Metallurgical Engrg University of Illinois Urbana, Illinois COUNCIL OF ECONOMICS OF AIME (Formerly Mineral Economics Division) Established as a Division December 15, 1948 Established as a Council February 26, 1957 Louis C Raymond, Chairman Lorin A Cranson, Vice-Chairman Henry T Mudd, Vice-Chairman Adam K Stricker, Jr, Vice-Chairman Paul F Yopes, Secretary-Treasurer U S Bureau of Mines Albany, Oregon

Jan 1, 1957

COUNCIL OF ECONOMICS OF AIME Formerly Mineral Economics Division Established as a Division December 15, 1948 Established as a Council February 26, 1957 Douglas Donald, Chairman Sheldon Wimpfen, Vice-Chairman (Mining) A J Phillips, Vice-Chairman (Metals) E Connaughton, Vice-Chairman (Petroleum) J S Vanick, Contact AIME Director A H Lindley, Jr Secretary-Treasurer Lehman Brothers 1 William Street New York 4, N Y COUNCIL OF EDUCATION Formerly Mineral Industry Education Division Established as a Division January 15, 1932 Established as a Council February 26, 1957 L E Shaffer, Chairman J D Forrester, Vice-Chairman O Cutler Shepard, Past Chairman , Contact AIME Director

Jan 1, 1959

COUNCIL OF ECONOMICS, AIME Formerly Mineral Economics Division Established as a Division December 15, 1948 Established as a Council February 26, 1957 Sheldon P Wimpfen, Chairman John D Ridge, Vice-Chairman (Mining) A J Philips, Vice-Chairman (Metals) Warren B Davis, Vice-Chairman (Petroleum) COUNCIL OF EDUCATION, AIME Formerly Mineral Industry Education Division Established as a Division January 15, 1932 Established as a Council February 26, 1957 James D Forrester, Chairman Charles V Kirkpatrick, Vice Chairman (and Chairman-elect) Lysle E Shaffer, Past Chairman Truman H Kuhn, Secretary-Treasurer Colorado School of Mines Golden, Colorado John S Bell, Contact AIME Director

Jan 1, 1960