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By Ben H. Daud

A computer model has been developed at Consolidation Coal Co.'s Central Engineering Dept. for preliminary economic evaluation of deep coal mine reserves. Since it was first formulated more than two years ago, the model has been used for the following purposes: (1) ranking studies of coal exploration projects, (2) marketing surveys, (3) preliminary sale and acquisition analysis of coal reserves, and (4) parametric analysis in conjunction with detailed feasibility studies.

Jan 1, 1979

By Gilmore R. Tostengard

The advent of inexpensive computers has opened vast opportunities for improved planning and control of capital projects. The mining and mineral processing industries have welcomed the opportunity, and new and improved quantitative management techniques have abounded. This chapter will discuss commonly used computer applications for economic justification of the project, preparation of the cost estimate, planning the work schedule, monitoring work progress, and control of costs and productivity. Finally, there is a review of the degree to which the industry uses these applications. Our experience suggests that while we in the industry have been quick to adopt the new techniques, the quality of our input data has not always kept pace. During the next decade, our push should be toward improving the quality of the basic data and assumptions so that we can fully benefit from the sophisticated techniques. The GIGO (garbage in, garbage out) principle is a wellworn cliche, but it is especially valid here. One of the keys to getting good input is commitment. Unless the managers who are to use or benefit from the system are committed to it, the effort will fail. They must be com- mitted to the underlying principles of planning and control sufficiently to expend their time and resources on them; planning should be especially given emphasis. They can't be too busy to plan.

Jan 1, 1979

By J. T. Crawford

Computer techniques for open-pit limit analysis were introduced into Kennecott Copper Corp. (KCC) during the early 1960's. The first computerized approach used block matrix mineral and economic models, and a removal increment mining simulator. A detailed description of the approach was published in the May issue of Mining Engineering (Carlson, et al., 1966) and also in Chapter 30.3 of the SME Mining Engineering Handbook (Pana and Davey, 1973). Since then, many refinements have been made to improve the system and the resulting pit limit design. The fundamentals, however, generally remain unchanged. Computerized open-pit limit analysis is presently used by Kennecott's open-pit copper properties and by the Quebec Iron and Titanium Corp. The system and the fundamental evaluation techniques it represents are cornerstones of all open-pit mine planning activities within KCC. This case study describes a typical example of open-pit limit analysis within KCC. The case involves a copper sulfide porphyry deposit with additional minor amounts of molybdenum, gold, and silver. The ore-grade mineralization within the pit design will be mill feed for a sulfide ore concentrator, and subore grade mineralization will be classed as waste and placed on dumps. The contributions to production and profits from dump leaching are insignificant, having minimal effect on the pit economics and design, because the material responds poorly to leaching solutions.

Jan 1, 1979

By R. K. Davey

Before the introduction of computerized procedures, mineralization modeling (compilation of level maps), ultimate pit studies, ore reserve compilations, and long-range mine planning all were performed manually. In fact, much of the basis for today's computer programs was derived from manual procedures and actual experience of mining engineers and geologists.

Jan 1, 1979

By D. P. Plute

The mechanization of the materials management function must contribute to the overall goal of optimization of profits. A computerized system contributes to the profitability of the company by saving more than it costs to operate. Design and implementation of the sys- tem must respond to the needs of users, the operating environment of the property, and must support the objectives of materials management. Three basic functions interact within the scope of materials management. They are inventory control, purchasing, and warehousing which have the following objectives: 1) Inventory control-to request materials in a timely manner and in quantities that provide the best level of support to users at the lowest cost. 2) Purchasing-to purchase requested materials and services at the required time and at the lowest cost. 3) Warehousing-to efficiently receive, store, and issue materials and to prepare accurate transaction documents for the activities. The development of the mechanized materials management system will require a plan and objective analysis by management and system users of system requirements. A typical plan would include: 1) System Design Objectives-the development of objectives that support mechanization of the materials management function. 2) System Characteristics and Concepts- the development of key system concepts and characteristics, which identify the needs of materials management. 3) System Inventory Item Classification- development and assignment of inventory category codes to inventory items. 4) System Order Decision Rules-the development of decision rules and forecasting techniques to minimize the inventory investment and to provide acceptable support levels. 5) System Report Structure-the development of a report structure to support the goals and objectives of materials management. 6) System Report Design-the development and design of reports for effective utilization of the mechanized system.

Jan 1, 1979

By Malcolm J. McPherson

Observations of environmental parameters in mines have traditionally been made by means of hand-held instruments, these being employed as a basis to ensure that atmospheric conditions in the mine remain within limits commensurate with safety, to safeguard the health of personnel, and to ensure that statutory requirements are met. Thus, starting from the first flame safety lamps of the early nineteenth century, numerous portable instruments have been devised over the years to indicate levels of dust, temperature, humidity, and concentrations of gases including oxygen, methane, and carbon monoxide. Similarly, portable instruments have been used to measure air velocity and pressure. For routine monitoring purposes, hand-held equipment suffers from many disadvantages. Readings are intermittent, often with long delays between successive observations, making short-term trend analysis impossible. Portable instruments are more liable to damage; they are labor intensive and provide a very limited amount of information either for control or planning purposes. The 1960's and 1970's have seen an accelerated development of mine environmental monitoring equipment. Alarm methanometers to give localized audiovisual signals became more common. These were followed by a variety of instruments which gave local, then local/remote continuous records, particularly of methane concentration and airflow. More sophisticated transducers and transmission systems were developed allowing further parameters to be monitored. This led to a proliferation of paper strip and chart recorders which had to be maintained and inspected regularly for trends and abnormalities.

Jan 1, 1979

By Victor F. Hollister

Skam deposits considered as porphyry copper deposits have been classified into three basic prospecting models: (I) the skam deposit associated with a mineralized intrusive (Pima-Mission), (2) the deposit associated with a barren igneous stock (Ertsberg), and (3) mineralized rock that seems to have no clear association with apluton (Phoenix). Pima-Mission, Christmas, and many other copper-bearing skarns developed in carbonate sequences near mineralized intrusives form an important part of the deposit. Historically, copper derived from the mineralized intrusion accounts for less than half of the metal produced by most porphyry mines, as most mineralization occurs in the intruded rocks. Skam mineralization is an important part of wall-rock metal deposition, because carbonate sequences are preferentially replaced by sulfide and skarn minerals. Exploration for skam mineralization is an important phase of porphyry copper exploration. Impure carbonate beds can become better host rocks for skam deposits than pure carbonates, and these in particular should be included in porphyry-exploration programs if the impure strata are cut by the stock. Skam deposits can also form near stocks that are barren of sulfide. In this model, the two best ore guides are strata favorable for mineralization (usually impure carbonate beds) and the intrusive contact. Faults can also act as important ore controls. Some skarn deposits form that have no clear genetic connection with a stock, although intrusive rocks are known in the district. In such cases, the best ore guides are strata and district-wide faulting. Dikes and sills are also common and mineralization can locally prefer their contacts even though the igneous rocks are barren. Skam minerals are influenced by the chemical composition of the carbonate. Forsterite, brucite, tremolite, and talc are common in skams developed in dolomitic beds. Skams derived from calcic beds often contain wollastonite, calcite, stilbite, or idocrase. Diopside, however, is a common accompaniment of copper sulfide in skam regardless of the original composition of the carbonates. Tremolite and possibly other amphiboles and chlorite can occur significantly in the zinc-lead portion of skams. Gamets occur in magnetite, copper, and zinc-lead zones of skams, but are not as diagnostic as diopside for the copper zone or tremolite for the zinc-lead zone. A general desciption of skam-deposit mineralogy can be used to construct prospecting models of porphyry copper skams. An abstract of such a description follows.

Jan 1, 1991

By David E. Sims

Asarco has been using computer-aided open-pit mine design since 1966. The in-house developed program package includes drill-hole analysis programs, interpolation routines, and three-dimensional open-pit design programs. The financial analysis step after pit design required that a reasonably accurate schedule be produced so that a good cash flow model could assess the feasibility of a project. The manual method of scheduling was too time-consuming for feasibility work, so a computerized scheduler was required. Since no computerized mine scheduling programs existed, we requested proposals from consulting firms to develop such a program. The selection of a consulting firm, the formulation of the contract and design specifications required about three years to accomplish. The consulting firm, Systems Control Inc. (SCI), of Palo Alto, spent over one year doing the programming and testing alone. The details of the program development were reported in "Computerized Year-by-Year Open-Pit Mine Scheduling," SME-AIME Transactions, December 1974. In June of 1973 the program, which SCI dubbed Optimum Resource Extraction or ORE, was installed. Version 1 of ORE was utilized successfully on three separate properties over a period of two years. During this time it became obvious that some of the original design specifications were restrictive, and certain modifications were required. The ORE program was submitted for modification, and after one year version 2 was operational in May of 1976. The program now consists of approximately 20,000 lines of FORTRAN source statements grouped into 190 subprograms, and runs in a 450K region of Asarco's 370/148 in Cranford, NJ. The Tucson com¬puter (370/115) is tied to the Cranford computer via a 9600 baud leased T.P. line, for running mine scheduling and other large mine planning programs.

Jan 1, 1979

By K. V. S. Sastry

Pelletization, sintering, and pressure compaction are the most common methods used to agglomerate ore concentrates. Over the last 20 years agglomeration has grown enormously in popularity and has become a standard unit operation in the nonferrous, cement, fertilizer, and ceramic industries. However, it is in the processing of iron ores and the preparation of blast furnace feed that agglomeration is used most and its application has grown fastest (Ball, et al., 1973; and Sastry, 1977). This chapter deals with an account of the current practices and future trends in the application of computers relative to an overview of the process design and engineering considerations of the unit operation of agglomeration.

Jan 1, 1979

By L. H. E. Weyher

A mine is essentially a vast materials-handling system. All other systems found in the mine exist to one degree or another to support the materials-handling functions, from the cutting at the face to the hoisting in the shaft. In this chapter computerized planning of underground materials-handling systems will be examined by dividing this function into: (1) the planning of the production section, and (2) the planning of underground rail or belt haulage from the production section to the shaft, slope, or surface. While alternative divisions might focus on the different materials- handling functions, i.e., production, supply, and manpower transportation, historical computer analysis has focused on the various systems rather than functions. The emphasis in this chapter is directed toward coal mine applications; however, most of the programs and methods are equally applicable to other underground mines. Markedly different methods are encountered in each system, and moreover, marked differences exist in the nature and the degree to which the materials-handling subsystems in each interact with the environmental or support systems. The most intimate interaction exists at the faces where geologic, human, and machine performance factors are closely related and constantly varying. In view of this, the planning of the materials-handling systems for the face will usually stress flexibility, while the outby materials-handling systems will generally place decreasing emphasis on flexibility and more on system reliability, capacity, and cost effectiveness. Thus, hoisting and main haulage systems are generally designed and constructed as permanent installations and cannot be readily changed, whereas secondary haulage systems and face operations are relatively mobile. These differences may have considerable significance for the mine planner in making technical and financial comparisons of alternatives to provide the scheduled mine production.

Jan 1, 1979

By A. L. Mular

Optimization has been defined as the procedure of locating the best of something or the best way of doing something (Mular, 1971). Several texts (Himmelblau, 1972; Ray and Szekeley, 1973; Box and Draper, 1969; and Lee, Adams, and Gaines, 1968) on the subject are available. Such techniques have been placed in two categories, namely, off-line optimization and on-line optimization. For the former, an optimization model is employed; for the latter, a black box approach is involved. The essence of an optimization problem becomes obvious, when a response surface is considered. Suppose that a response (in this case, a criterion of improvement such as profit per day; grade of concentrate per day) denoted by Y, depends only on two variables, X1 and X2, which can be manipulated and controlled. The relationship between Y, X1 and X2 may be represented graphically as shown in Fig. 1. The diagram is called a response surface and its height, Y, is determined by X1 and X2. Points associated with equal responses constitute response contours. The shape is that of a hill, and optimization is the procedure of ascending the hill to reach the top (maximum). In practice, a response surface is subject to disturbances which distort its shape and shift its location from time to time, so that the exact location of a maximum is imprecise. Generally, constraints (restrictions of some sort) on responses and manipulable variables serve to define a region of permissible operation.

Jan 1, 1979

By Barton Kelby Cross

In the early 1960's the feasibility of mathematical modeling was demonstrated in Northern Rhodesia and southwestern United States, where techniques were developed to use these models in a new approach to aid engineers in the estimation of ore reserves, mine designs, and financial evaluations. These rudimentary models closely followed the manual methods, producing ore reserves and production schedule estimates that were as accurate as the manual methods, yet were many times faster. Mines evaluated and designed using these new tools gradually came into operation during the 1970's and entered the phase at which production scheduling and ore-grade control became day-to-day problems. Management expected the number of operational engineers to be small because small planning engineering staffs had produced the original designs and operated the smaller high-grade pits. Unfortunately, the tools needed by the mine engineer to perform short-term production scheduling and ore-grade control were labor intensive; they had not yet been generally computerized. Several attempts to use the original or exploration model for these two functions were futile. While an exploration model based on data from exploration work proved sufficiently precise for overall mine design and long-term production scheduling, the model lacked the precision required for short-term scheduling and grade control.

Jan 1, 1979

By Pierre M. Gy

The final purpose of exploration is to esti- mate the grade and tonnage of the various qualities of ore contained in a given mineral deposit. This estimation cannot be directly carried out on the whole of the ore body. It usually requires four steps: Core Drilling Campaign The ore body is represented by a series of cores further divided into core sections of equal or unequal length. Core Splitting The core sections are longitudinally split into two halves: the first half is kept for various examinations and physical measurements, and stored for further reference; the second half (core sample) is used for determination of the chemical analysis. Core Sample Reduction The chemical analysis cannot be directly per- formed on the core samples. It requires the constitution of assay portions usually weighing from a few decigrams to one gram (more in precious metals assaying) and passing through a 100 or 150 mesh screen.

Jan 1, 1979

By R. C. Fox

The geophysical aspect of reconnaissance marks the beginning of extensive computer applications supporting development of a mine. Although there are some storage and retrieval applications in geology, and some statistical analysis in geochemistry, large-scale compilation, reduction, and interpretation of mineral resource data are initiated in reconnaissance geophysics. The reasons for this fact are quite simple. Geophysics is oriented toward quantitative evaluation of areas of interest, and methods of data collection are automated to the extent that large amounts of analog and digital information are recorded. The large volume of data must be interpreted in a reasonable time. Furthermore, some modeling problems involving complex numerical solutions could not be attempted without the computer. Therefore, the computer is essential to the success of an exploration project using geophysics. For example, aeromagnetics is a common technique for reconnaissance examination of areas associated with sulfide systems and porphyry deposits. An area covering 161 X 161 km (100 X 100 miles) may be flown with a 1.6-km (1-mile) line spacing yielding 10,000 line miles (16,093 km) of data. If only 10 measurements are recorded per mile, 100,000 data points, including location and magnetic field intensity, must be reduced and stored for quantitative interpretation. Computer applications often represent a significant investment in manpower and hardware. It is desirable, therefore, to initiate an engineering approach to the application of computers to geophysics. By this it is meant that computer programs and systems should be formulated, developed, and implemented in a disciplined manner such that their usage is dependent only on the application and not on the individual doing the programming. In other words, computer application, development, and usage should evolve beyond the personal gadget phase to an important applied technology. Geophysics has evolved over the past two decades in a course parallel to computer hardware development. During the sixties, the computer became large enough and fast enough that complex models required by geophysics could be solved. Automation also relieved the geophysicist from routine manual calculations. During the seventies, computing power in¬creased and applications expanded from two-dimensional problems to three-dimensional modeling. Moving into the eighties, as computer hardware costs will significantly decrease, the major expense of computing will be the manpower required to develop, implement, and use an application; therefore, improved programming techniques and applications software engineering methods will be used to optimize and preserve this investment. This chapter presents a general overview of computer methods in geophysical reconnaissance; it is divided into two parts: geophysical methodology and software engineering.

Jan 1, 1979

By Edward L. Beutner, Robert M. Crump

Benson Mines low-grade iron ore reserve is a replacement deposit within the Grenville gneisses of the Adirondacks. The average grade of the crude ore is about 23 per cent iron. The iron minerals are principally magnetite and hematite disseminated throughout the gneisses as discrete grains about 1 mm in size. Both the ores that are beneficiated by magnetic means and the non-magnetic ores that are treated by a gravity method of concentration are found in stratigraphically different positions but are mined from one open pit, which is about 2.5 miles long and 800 feet wide and are treated separately. The gneisses are described and named according to the distinctive mineralogy of each. Recognition of the gneissic types permits the interpretation of the structure as a northward-plunging syncline overturned to the west. A large subsidiary anticline-syncline complex occurs on the east limb of the major syncline. Iron minerals in sufficient quantity to be considered ore are confined to areas where the footwall rock has been overturned to become the hanging wall.

Jan 1, 1968

By L. H. E. Weyher

The Bethlehem Mines Corp. is a captive mining subsidiary of Bethlehem Steel Corp. Its coal production is tied to the demands for and production of steel, a situation that has to balance between the following two extreme strategies: (1) either the mines are designed and operated for some optimum production level and the demand fluctuations within the steel corporation are met by supplementary corporate coal sales and purchases, or (2) the mines absorb all the demand fluctuations, regardless of the effects on mine costs. A rational definition of the best strategy between these extremes is, of course, needed but is very difficult to formulate in view of the complexity of the many factors that would have to be included in the analysis. Consequently, rather than setting profit targets for each given mining division and/or individual mine, the practice evolved to set production targets for producing specified tonnages of coking coal for shipments to the ovens located at the corporation's iron and steelmaking plants. This in turn leaves the mines with the dilemma of having to explain demand-related cost-per-ton fluctuations while essentially depriving them of the ability to control profit through tonnage optimization. In the early 1970's, the coal prices rose significantly, while other factors led to sagging productivity in underground coal mining. Thus, the role of Bethlehem's coal operations in the corporate profit picture gained in relative importance. This, in turn, sparked a closer attention to the coal mining cost structure and factors controlling productivity. At the same time, the drastic increase in the capital needed to open a new mine also increased the amount of planning required to minimize risks. All of this called for more well-defined, quantitative operating data. Bethlehem therefore launched, in the early 1970's, a number of innovative steps that, as the future may show, represented pioneering contributions to the growing sophistication of North American underground coal mine planning and management control practices. This case study describes the changes that led to the current implementation of a novel production reporting system at Bethlehem's coal mines. These changes took place in two distinctly different phases. The current system that resulted from the Phase II developments utilizes, of course, experience gained earlier and is expected to be amplified to incorporate more advanced concepts and technology as future experience dictates.

Jan 1, 1979

By J. S. Long

A finite-difference model using a digital computer was constructed to assist in the water management of a proposed oil-shale mining operation in the Piceance Basin in Colorado. The presence of ground water is both a detriment and a benefit for development of the resource. On one hand, dewatering is required because permeable zones are present in and above the oil-shale sequence, and rich oil shale at the proposed mine is as much as 457 m (1500 ft) below the water table. On the other hand, ground water is the most feasible source of water for processing the oil shale. A ground- water model was constructed to simulate the development of an environmentally acceptable water-management system that will satisfy both the mine-dewatering requirements and the water-supply requirements for processing. The ground-water model discussed in this chapter was constructed for the Rio Blanco Oil Shale Co. (RBOSC) by International Engineering Co., Inc., a subsidiary of Morrison-Knudsen Co. The model was applied to evaluate dewatering and water control systems for several open-pit mining plans initially investigated to develop Federal Lease Tract C-a. A collateral application of the model analyses was to project effects of the proposed dewatering operation on the regional ground-water regime in connection with a permit acquisition program by RBOSC. Subsequently, RBOSC has completely changed its mine development plan and has adopted modeling and related techniques more suitable for study of that plan and dewatering operation. The authors of this chapter are solely responsible for the contents and conclusions.

Jan 1, 1979

When exploration shows a mineral deposit to be of importance, the subsequent work of defining the limits or boundaries of the ore body and preparing it for the extraction of the mineral is termed development (Young, 1946). In underground mining, development also connotes the work that is involved in opening up a deposit preparatory to stoping or productive operations. In this section, mine development is defined to include all studies and operations that will enable a sound evaluation of an explored ore body from the technical and financial standpoints. Though the ultimate objective of all mine development activities is the same, the scope and detail of these activities vary depending on the type of ore body (e.g., flat bodies, lenses and sheets, massive deposits, narrow veins, and bedded deposits), and the method of working the deposit (e.g., under- ground or surface methods or a combination of both of the methods). Therefore, the various contributions in section 3 address such topics as long-range planning, feasibility studies, and valuation for many types of ore bodies and different mining methods. This introductory review is divided into three major parts. In the first part, long-range planning aspects are briefly discussed with .an emphasis on current trends that affect mine planning. In the second part, an overview is provided of the contents in the mine development and valuation section. In the last part, remarks are made on the status, scope, and future of quantitative and computer methods in mine planning and development.

Jan 1, 1979

By Allan Jansen, Robin Bissett

[Power-Point Presentation]

Jan 1, 2005

By Ramesh Malhotra, Hubert E. (Deceased) Risser

THE WORLD Coal, as a source of energy and as a source of coke for the smelting of iron ore, has contributed significantly to the development of every major industrial nation of the world A number of other materials-oil, natural gas, wood, waste materials, water, and, in some applications, nuclear materials -can be used satisfactorily for the generation of heat and energy, but no generally acceptable and economic substitute has been found to supplant coke in iron ore smelting in conventional blast furnaces. In the development of many nations, coal provided the initial source of energy for industrialization Although coal provided more than 60% of the world's energy each year between 1902 and 1929, oil and natural gas have surpassed it as a source of energy in more recent years (Ref. 38, pp. 439, 441). Despite the rapid rise in importance of other fuels, a considerable amount of the total energy consumed is still supplied by coal. In 1972, coal supplied 32.1 % of the total world energy (Ref. 49, pp. 2-3). To produce this energy, 2.4 billion metric tons of coal were consumed-a 16.0% increase over the amount consumed in 1962. A further worldwide increase in the amount of coal used to supply energy is projected. According to Dr. Karlheinz Bund (Ref. 37, p 145), by the year 2000 world coal consumption could amount to 5 billion mt. Coal Resources and Production The world's coal resources are estimated to be about 10,872 billion mt. Of this amount, 1,297 billion mt are classified as measured reserves (Ref. 50, p. 57). In Table 13.A.1 the estimates of measured reserves and total resources, recent production, and the ratio of measured reserves to production of major coal-producing countries are shown. About 90% of the world's total coal resources are estimated to be in the USSR, the United States, and China. The United States ranks second in the world in coal resources, but in measured reserves, it ranks first. Because of the difference in rate at which available coal resources are being exploited, the ratio of measured reserves to actual production varies widely among areas and countries. France and East Germany have the lowest reserve to production ratios, 49.5 and 60.1, respectively. In Mexico, where currently less than 5 million mtpy of coal are produced, the ratio is 1257 For all countries producing more than 200 million mtpy of coal (except East Germany), the ratio ranges from 350 to 670. For the United States, the ratio is 669.7. In Table 13.A.2, distribution of the world's coal resources by area is shown. More than 97% of the total resources lie in the northern hemisphere, with Asia, including European USSR, having 63.4%. Only 1.9% of the total coal resources are estimat-

Jan 1, 1976