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By Giannini L. M

The determination of the "optimum pit limit" of a mine has long been considered as a fundamental problem of mine planning. A number of mathematical techniques have been proposed to solve this problem some of the more elaborate ones posing considerable computational difficulties for their implementation. Barnes and Johnson recently introduced "bounding techniques" to ease the computational effort required for determining the optimum pit. The aim of this paper is to point out and correct some errors in their techniques. A presentation of a general bounding algorithm is given.

Jan 1, 1985

Several coal preparation plants are presently "automated" to the extent of automatic sequencing and interlocking via digital means, together with closed loop control on various level and density circuits. This paper will explore the potential for second generation automation utilizing on-stream ash analysers and other measuring elements so as to optimize the total metallurgical process. This would enable maxim-ization of recovery, improved product homogeneity and minimum reagent consumption.

Jan 1, 1985

By K. A. Grace

"An ore is a rock regardless of its rarity or value."* The application of geology does not cease with the discovery and delineation of a mineral resource, but continues in the calculation of the economic parameters that determine reserves. Reserve determination, reduced to essentials, is the determination of the cost of production of a mineral commodity from a resource. This cost comprises mining, processing, waste disposal, reclamation and marketing costs. Geological input is vital in the calculation of the individual cost parameters from mining to reclamation, and even has some impact on marketing. Geology thus has a critical role in the determination of reserves.

Jan 1, 1985

By R. B. MacGillivray

The No. 2 Seam at Van Dyks Drift Colliery was found to be made up of six easily recognizable bands or plies of differing qualities. Not only did the plies differ from one another in quality, but their thickness and quality varied laterally across the mine. The economic production of a Iow-ash blendcoking coal for supply to the Japanese Steel Mills called for the mining of different portions of the seam. The portions that could be extracted economically varied in thickness and position within the No. 2 Seam across the mine. A unique system of selective mining had to be developed involving the dispatch of two separate streams of coal out of the mine. Conventional American mechanized pillarand-stall mining was used, and the productivity was improved by the installation of twin conveyor belts into a double-header section. The method of grade control that was instituted to ensure efficient extraction of the available coal reserves is described.

Jan 1, 1985

By C. Y. Chen

In order to put an end to the uneven environmental standards and enforcement established by various coal mining States in the United States, the Congress passed and the President signed the Surface Mining Control and Reclamation Act (Public Law 95-87 or the Act) on August 3, 1977. Within one year after passage, the Secretary of the Interior was directed to promulgate permanent program regulations implementing Title V provisions of the Act. These regulations were to form the basis for State regulatory programs under the Act and to allow States to assume primary regulatory responsibility. In order to implement the underground mining provision of the Act, the Secretary is directed in section 516(a) of the Act to promulgate rules, but ones which take into consideration the distinct differences between surface coal mining and underground coal mining. The regulations developed by the Secretary and promulgated on March 13, 1979, with respect to subsidence control, included (1) a subsidence control plan as part of the permitting process, (2) substantive provisions establishing performance standards for subsidence control, and (3) provisions providing for the prohibition of mining under perennial streams, impoundments larger than 20 acre feet, and certain public facilities and urban areas.

Jan 1, 1985

By Bill Romanchuk, Real Doucet

Suncor Inc. has been operating the first commercial tarsand open pit mine in the world since 1967. Drilling and blasting operations are required to facilitate overburden removal and tarsand mining by bucketwheel excavators.

Jan 1, 1985

By Michael J. Potter

Native asphalt was produced by five companies in two States, Texas and Utah. Bituminous limestone, used primarily as a paving material for street and road repair, was produced by White Uvalde Mines and by Azrock Industries Inc., Uvalde County, TX. In June, Azrock Industries was purchased by the R L. White Co. Gilsonite, a solidified hydrocarbon found only in Utah and Colorado, was mined by American Gilsonite Co., a division of Chevron Resources Co. (a subsidiary of Standard Oil Co. of California); by Ziegler Chemical and Mineral Corp.; and by Hydrocarbon Mining Co. (a subsidiary of Oberon Oil Inc., a Utah corporation) from properties in Uintah County, UT. Gilsonite is used for a variety of purposes including automobile bodysealer, light-weight aggregate for cement used in oil well drilling, asphaltic building board, protective coverings, anticorrosive paints, and roofing compounds.

Jan 1, 1985

By Charles E. Barker

Jan 1, 1985

By R. Drozd

"The Bui/moose Mine is in the northeast coal area of British Columbia, and less than $300 million was spent to bring this 2.3 million-tonnes-per-year metallurgical and thermal coal mine into production by November 1, 1983, one month ahead of schedule. The project is an unincorporated joint venture undertaking, with Teck-Bullmoose Coal Inc., a wholly-owned subsidiary of Teck Corporation, holding 51%, Lornex Mining Corporation holding 39%, and Nissho-lwai (Canada) Ltd. holding 10%. Bullmoose Operating Corporation will be the manager and operator of the project. This paper will broadly cover the history and exploration work on the property, the geology, open-pit mining plans and equipment, the preparation plant flowsheet from breaker station to clean coal silo, the 35 km highway truck haul, the railroad loadout system, manpower requirements, approvals and permits, and general financial arrangements. Introduction The Bullmoose Mine Project is located about 87 km by road south of Chetwynd, B.C. and consists of an open-pit coal mine, a plant facility in the Bullmoose Creek valley below the mine, and a separate rail loadout facility on the British Columbia Railway Branchline near the new town of Tumbler Ridge some 35 km by road to the east. The plant will be capable of producing a total of 2.3 million tonnes per year (mty) of washed metallurgical and thermal coal. Long-term metallurgical coal contracts for high-quality, medium-volatile, bituminous coal have been signed with nine Japanese buyers for 1.7 mty, and the balance of0.6 mty will be for thermal coal production. Plant construction began in the spring of 1982, and in May 1983, preproduction waste and overburden removal in the mine was started. The plant began tuning up in October and was fully operational by December 1983. Metallurgical coal began moving to the coast in unit trains during November, and first vessel loading at the Ridley Island port began in late December 1983."

Jan 1, 1985

By Peter Mitschke, Friedrich Rosenstock, Heinrich Meiler

"The development of the Centrifugal Mill jointly by Chamber of Mines (Johannesburg) and LURGI GMBH (Frankfurt) had been described by L. Kitschen e.al. during the 14th IMPC at Toronto in October 1982. Further investigations, using a 55 kW semi-industrial mill, installed at LURGI's Research Laboratories, were concentrated on efficiency and wear in grinding.The test results showed, that efficiency increases when increasing the ball load between 60 and 80 % by volume. Furthermore, the efficiency is increased by speeding up the mill, thus increasing the centrifugal force to up to 14 times the force of gravity. Applying these findings to grinding of a Canadian iron ore spiral concentrate, a saving in grinding power of 30 % was experienced, when comparing with ordinary wet ball milling.Investigations of several shapes of the grinding chamber cross section and linings and several types of materials showed, that no increase of liner or ball wear will occur compared to conventional ball mills when choosing suitable lining patterns. 1. DEVELOPMENT OF THE CENTRIPUGAL MILLThe centrifugal mill was developed with the aim of finding a grinding unit that can operate at a higher power concentration than the conventional tumbling mills.LURGI felt the necessity for such a mill in connection with a hydrometallurgical process developed at the beginning of the seventies, which incorporated an activating grinding step as one of the essential process features. At that time, the Chamber of Mines in Johannesburg was investigating possibilities of underground wet grinding and preconcentration of gold ores aiming at a decrease of mining costs by reducing the quantities, especially for mines operating at depths up to 3600 m, by changing over from rope hoisting to hydraulic transportation systems. After the Chamber of Mines had initiated the development work on its own, in 1974 a cooperation between the two organisations was started."

Jan 1, 1985

By Osamu Fukuta

The geological and geochemical characteristics of the Japanese iodine-rich brines are outlined. The iodine-rich brine in Japan is primary in its origin and its occurrence is limited in the younger marine sediments. The iodine-rich subsurface water is saturated or over- saturated by natural gas, but the water saturated by natural gas is not always rich in iodine. The iodide and bromide contents decrease with time. The bromide content decreases much more rapidly than that of iodide. It should be emphasized that the genetic environment of the Japanese type of dissolved gas and iodine deposit is not peculiar to the Japanese islands.

Jan 1, 1985

By P. M. Daignault

"Fording Coal Limited is one of Canada's largest producers of metallurgical coal for the export market. Medium- to highvolatile coals are mined at its Fording River operations in southeastern British Columbia. This paper discusses some of the mine design and production related problems encountered, and how they have been resolved. Other aspects of the operation such as geography, geology and standard mining methods employed are also covered.IntroductionFording Coal Limited was formed in 1968 to mine and market metallurgical coal resources held by the company in the East Kootenay region of southeastern British Columbia<1>. The company, at its Fording River operations, holds approximately 19,635 hectares of coal lands, having an estimated resource of 3.5 billion tonnes of metallurgical coal. Total reserves are approximately 520 million tonnes.Fording Coal is owned 600Jo by Canadian Pacific Enterprises Limited and 400Jo by Cominco Limited. Cominco itself is owned approximately 540Jo by Canadian Pacific Enterprises. The company, originally staffed and managed by Cominco, has been independent since January 1978, with its own board of directors, management, staff and employees. The head office is in Calgary, Alberta. The Fording River operations are located in British Columbia, approximately 70 km north of the Crowsnest Pass, near the Alberta/ British Columbia boundary, only 150 km by air and 320 km by road from Calgary.A contract was signed in 1969 with the Japanese steel mills to provide 45. 7 million tonnes of metallurgical coal over fifteen years, commencing in 1972, at an annual rate of 3 .05 million tonnes per year. The mine is presently expanding annual production capacity from the original 3.0 million long tons (3.05 million tonnes) to in excess of 5.0 million tonnes.Concurrent with this production expansion, a vigorous marketing effort has diversified Fording's customers to include additional countries in the Pacific Rim area. Three cleaned coal products are now marketed compared to the single ""standard blend"" product originally shipped to satisfy the Japanese contract. The product specifications are listed in Table I."

Jan 1, 1985

By G. S. Dobby, J. A. Finch

"I. INTRODUCTIONA significant development in flotation over the past few years has been the increasing industrial use of flotation columns, primarily in Canada. The column differs dramatically from conventional mechanical flotation machines, both in design end operating philosophy, which has been a principal reason for its slow acceptance by the mineral industry. Boutin, Tremblay and Wheeler (1. 2) developed the concept in the early 1960's and since then plant and laboratory columns have been marketed commercially by Column Flotation Company of Canada Ltd. In 1980-81 at Mines Gaspe, Quebec, three columns replaced 13 conventional cleaners in a molybdenum upgrading circuit, with superior results (3). Since then many of the copper producers in British Columbia have installed columns for copper and molybdenum cleaning, including Gibraltar, Lornex, Highmont and Island Copper. There now appears to be widespread interest in flotation columns.The column is particularly attractive for applications involving multiple cleaning stages and can upgrade In a single stage compared with several stages of mechanical cells. This results in simpler, more controllable circuits. Importantly, the column itself is well suited to computer control. A significant problem, however, has been that of translating laboratory data to plant performance. The purposes of this communication are to address the problem of column scale-up and to describe some of the transport mechanisms of a flotation column, leading to a kinetics based model.A schematic of a flotation column is shown in Figure]. Industrial columns are up to 13 m high and 0.3 to 1.8 m in cross section (either square or circular). Three zones can be identified:a collection zone, with feed entering 2 to 3 m below the top of the column and descending against rising bubbles generated at a gas sparger; a washing zone, where a packed bubble bed is generated by a downward flow of wash water; and a conventional froth (2 - 5 cm thick), the sole purpose of which is particle transport to the launder. The tailings withdrawal at the bottom of the column is controlled at a rate slightly greater than the feed flowrate (called a positive bias).An important element is the washwater, added just below the froth zone. The component of the washwater that flows downward (to make up the bias) is sufficient to prevent coalescence of rising gas bubbles. The packed bubble beg so generated is very efficient at suppressing gangue entrainment to the concentrate."

Jan 1, 1985

Traditionally, the gravity cleaning of coal has been evaluated in pilot plant tests. Attention is now turning to the development of empirical models of gravity cleaning equipment that can be used for the design and evaluation of circuits. This paper presents some preliminary information for spirals and water-only cyclones treating fine coals. Also discussed is how such information gives a better understanding of the operating and performance characteristics of this equipment, how realistic comparisons can be made between different types of equipment, and how small mobile plants could be designed for treating the fine coals &apos;stockpiled&apos; at many NZ mines.

Jan 1, 1985

The past year has been a difficult one for the mining industry in this country, but an active and successful one for the Branch. Membership has continued to increase, albeit at a slower rate than last year, and with the increase almost all from student membership. I dwelt at some length last year on the continued increase in student membership, which I ascribed largely to deliberate policies adopted by the Branch to foster this area of membership. I don&apos;t propose to reiterate these, suffice it to say that as usual, the Otago School of Mines has been a prolific source of student members, and it will be a pity if this source dries up û more on this subject later. In fact, students form just on 29 per cent of the Branch&apos;s total membership û a far higher percentage than for any other Branch in the Institute, whose membership as a whole comprises only ten per cent students.

Jan 1, 1985

By W. J. Cruise

This paper reports on a test that was conducted underground in a mine for two years on the following: pipes coated with paint, fusion-bonded powder, metal, or impregnated tape; and aluminium, stainless-steel, 3CR12, and plastic pipes. It was found that the degree of corrosivity and mechanical damage increases substantially from the shaft of a mine towards the stope. Thus, the range of coatings that can be used successfully is fairly large in the shaft and haulageways, but corrosion-resistant materials, especially corrosion-resistant steels, need to be used close to the stope. A study of the relative costs involved showed the costs of pipes of low-carbon steel and unplasticized polyvinyl chloride to be lowest, and those of epoxy-coated steel pipes to be highest.

Jan 1, 1985

INTRODUCTION Besides the European export credit agencies covered in Ted Rides&apos; paper in this Chapter, other agencies are also active (see Appendix) but the most notable for mining projects are The Export-Import Bank of the United States ("US Exim") and the Export Development Corporation ("EDC") of Canada. Mexico&apos;s Fomex is basically a short-term trade-finance fund administered by the Central Bank. US Exim This independent agency can provide loans, guarantees, and insurance. Like all export-credit agencies, its mandate is to support the export of goods and services from the US as a means of competing against other countries&apos; products. If a piece of mining equipment can only he made in the US, the US Exim may very well not provide any financial assistance. (It is important not to place the order for any item for which export credit is sought because, once ordered, the situation is no longer competitive in US Exim&apos;s eyes.) Direct Credits and financial guarantees ("buyer credits") are commonly in amounts greater than 85 million and for terms longer than six years. An example here is the $48.5 million provided to PT International Nickel Indonesia (see Robert de Gavre&apos;s paper in Chapter 12). US Exim usually requires a 15% downpayment and, therefore, finances up to 857 of the goods; less if the US content is lower. The dollar funding can he US prime, London Interbank Offered Rate (LIBOR), or other sources. Exim can fund in either or both of the following ways: 1. Under a US bank Letter of Credit ("L/C") 2. Reimbursement to the buyer/borrower via a US bank account. US Exim will, without charge, issue a preliminary commitment. It will, however, need to approve the various credit agreements and prefers to tie other parallel financings into one loan agreement. US Exim&apos;s total commitments are large, up to $5R billion in aggregate under various programs. US Exim has been the world&apos;s leader in medium-to long-term minerals project financings/ co-financings but suffers from (i) aggressive foreign export-credit competition whereby other nations mix in soft-loans or aid programs ("mixed credits") to increase the percentage financed and lower the interest margin and (ii) an imbalance in its own cost of funds. A common US Exim package would be as follows: 15% Banks under US Exim guarantee, floating rate over prime or LIBOR. 35% US Exim funding, fixed rate 35% Pefco funding, fixed rate 857 Drawn down pro-rata under US bank L/C 15% Cash down payment (may have been financed within a project/corporate credit) 100% Repayment usually begins six months after planned start-up in equal semi-annual instalments, with the banks usually paid out first, Pefco next, and US Exim last. Medium-term credits ("supplier credits") are issued for US equipment exports for terms up to five years, again for 85% of the equipment costs although the exporter is expected to bear at least 10% out of that 857 for its own risk. The buyer is required to be a first-class credit such as some governments or highly credit-worthy companies. Otherwise a bank L/C would be required. (This may be wrapped into an overall project-finance package for a minerals development. The project-finance banks provide an L/C to US Exim instead of funding that portion themselves.) US Exim guarantees 100% of the political risk and either 85% or 95% of the commercial risk for

Jan 1, 1985

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 Donald J. Worth

INTRODUCTION Minera Real de Angeles makes a very interesting case study in more ways than one. To begin with, it represents the first time a bulk silver deposit has been put into production in Mexico. Second, the feasibility and financing stage spanned a period when the silver price ranged from $4 to $40 per ounce. Third, there was a major devaluation of the peso and a financial crisis in Mexico at completion of the project. Fourth, the composition of the partnership (a major Canadian mining company, a major Mexican mining company and the host government&apos;s own mining entity) is worthy of note. This paper gives considerable background on the project and how it came to fruition. The political risk aspects and how the major provider of funds perceived Mexican risk at the time of decision to participate and afterwards are highlighted. LOCATION AND HISTORY The Real de Angeles deposit is located at an elevation of 2300 meters in Central Mexico in the State of Zacatecas (Figure 1). The closest village is Noria de Angeles, three kilometers to the north. The closest cities are Aguascalientes, Zacatecas and San Luis Potosi. The first-mentioned is one hour to the southwest by automobile over good roads. Exploitation of the vein outcrops probably began towards the end of the sixteenth century by the Spanish. Evidence of past mining activity is shown by numerous shafts, manways, dumps and ruins. Also, there were remnants of two rudimentary concentrating mills now obliterated by pit development and in the nearby town of Noria de Angeles the ruins of a small smelter still exist. Compania Minera Gamma, an affiliate of a major international mining company, investigated Real de Angeles from 1969 to 1971. Its evaluation program included 20 drill holes and comprehensive geological engineering and metallurgical studies. The results were not encouraging and the option on the property was dropped. In late August 1973 geologists representing Placer Mexicana which was later renamed Explomin were advised of the availability of the property and liked the prospects sufficiently to make an option payment soon due and to agree to outright purchase by year-end. A series of 34 holes were drilled by Explomin and a preliminary study indicated that the prospect had mine-making potential if the silver price was right. [ ] DESCRIPTION OF THE PROJECT Real de Angeles is best described as a large, low grade open pit silver mine because at today&apos;s prices approximately 70% of the realizable revenue is derived from that metal. One must also keep in mind that the operation produces two concentrates - a lead concentrate with high silver content and

Jan 1, 1985

By Robert Gillham, Victoria Yablonsky, Grover R. Castle

INTRODUCTION The commercial paper market, unique to the United States, is a direct exchange of funds between high-grade borrowers and large lenders; because it eliminates both the bank&apos;s role as middleman and also some significant transaction costs, commercial paper is the lowest cost short term instrument in the world. For this reason, virtually all borrowers would like to enter the market, but only issuers with the highest rating from Moody&apos;s and Standard & Poor can attract purchasers at the best rates. COMMERCIAL PAPER The commercial paper market, in existence for over 100 years, has traditionally been used for short-term financings, with most paper maturing within 30-45 days. Under the U. S. Securities Act of 1933, (section 3(a)3) industrial paper can avoid registration only if it matures within 270 days and is used for current transactions. It was first used to finance the short-term seasonal working capital needs of manufacturing companies. Since World War II, commercial paper use has grown steadily, serving in the 1950&apos;s as the market in which finance companies financed the explosion in consumer credit purchases of heavy consumer durables. LETTER OF CREDIT BACKING As far as is known, the use of letters of credit to support energy-related commercial paper began about 13 years ago with an arrangement to finance the nuclear fuel for Con Edison&apos;s Indian Point 3 Plant. Goldman, Sachs was the architect of this financing and Chemical Bank provided the letter of credit support. After an early burst of interest, this type of financing wobbled severely in the difficult credit markets of the mid-seventies before regaining serious momentum in 1976 and 1977. A mining project would not normally qualify as a borrower in the commercial paper market because of its credit standing and because its large capital needs require long term financing. However, lately, commercial paper has begun to take the place of a bank term loan in limited recourse project financings. L/C backed commercial paper took this new and startling turn in 1982 when it was used as part of the $700 million financing for the development of the Newlands-Collinsville coal mines of Mount Isa Mines Ltd. in Australia. This was the first use of L/C backed commercial paper in a long-term limited recourse project financing. First Boston acted as financial advisor and, again, Chemical Bank provided sole letter of credit support of $155 million. The $785 million BHP financing for the acquisition of the Queensland (Australia) coal assets of Utah International from General Electric Company followed the next year; there we acted with two other Front Banks to provide $270 million of L/C support. These two important transactions indicate that not only has commercial paper become an integral part of a long-term financing package, but also that it is no longer the exclusive domain of the best known U. S. companies. Lesser-rated companies and a multitude of foreign borrowers have gained access to this "exclusive club." How has this become possible? OPERATION OF AN L/C An instrument of the commercial banks, the "direct pay" letter of credit, has enabled lesser-rated companies to issue commercial paper in their own names. The letter of credit allows the issuer to substitute the credit rating of the supporting bank for its own. The L/C in effect allows a lesser-rated company to rent the bank&apos;s credit rating. This upgrading is possible because the bank is unconditionally obliged to pay the note-holders at maturity and then turn to the Issuer for reimbursement. The Issuer commonly "rolls over" a new short-term issue and reimburses the supporting bank from the sale of the new issue until cash flows from the project allow the borrower to reduce the level of paper outstanding. The commitment for an L/C facility, up to 12 years in the case of the Broken Hill transaction, governs the life of the commercial paper tranche of the financing. The term of the L/C commitment thus has the power to extend the ordinary 30-45

Jan 1, 1985