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By S. Angioletti

This paper addresses strategic investment decisions when they are nested in a project development format where each project is implemented in phases and each phase is approved to move on to the next phase only if certain technical and economic requirements are met. This configuration is sometimes referred to as a ?Project Portfolio?. Mining companies maintain project portfolios in their exploration investment plan. This study proposes a procedure to best manage an exploration project portfolio including technical and economic uncertainties. The procedure may support decision makers in a simple and intuitive way, while maintaining the rigor and precision required by the rather large amount of financial resources typically called for by mining projects. The procedure was tested in a real case study of a gold mining company and its exploration projects portfolio. The procedure uses the following approaches: i) investment valuation methods under technical and market uncertainties based on Option Pricing Model, Real Option Theory and Option Space; ii) portfolio management and Stage Gate®1 method; iii) Monte Carlo simulation.

Jan 1, 2010

By Juanito C. Fernandez

INTRODUCTION The Philippines is endowed with mineral resources, much of which still remains unexploited. The country's known reserves, at least for the major mineral commodities, have increased every decade since the first major discoveries more than 80 years ago. Mining, therefore, naturally evolved as one of the pioneer industries and has ever since been a major factor in economic development. The Philippines has entered a new era in mineral resources development and management. One significant feature of this era is the degree to which the government is involved with the industry. In recent years, the state has increasingly encouraged the private sector to carry out detailed exploration aided by governmental contributions through extensive geological and geophysical surveys, fundamental researches and even indirect financial assistance in some specific areas. Significant changes in mineral resources development policies were brought about with the promulgation of Presidential Decree 463 or the Mineral Resources Development Decree of 1974. The Decree provides for a more rational system of administration and disposition of mineral lands to promote mineral resource exploration and exploitation. Various forms of incentives are provided. Foreign entities are allowed to participate in development through service contracts with leaseholders or with the government in the case of reserved areas. The thrust in mineral resources development has been focused on the base metals which as envisioned would provide the foundation for sound economic development. In recent years, however, major strides have been made to promote the exploitation of the non-traditionally produced commodities especially the non-metals. Development likewise point to the growing determination of the government and the private sector to expand benefits from mining. This is evident in efforts to promote downstream processing operations and to encourage investments in exploration, exploitation and mineral processing ventures. The integrated mineral resources development plan, therefore, proposes the vertical integration of mining extraction activities with the processing requirements of the metal-based manufacturing industries. While mining activities shall continue to be carved out by the private sector, the government shall influence the industry's direction by establishing legitimate goals to maximize benefits through an integrated approach giving due consideration to environmental protection and resource needs of future generations. STATUS OF MINERAL RESOURCES DEVELOPMENT Extent of Exploration Application of modem exploration tools and concepts complemented by intense infusion of foreign technology and rapid development of indigenous expertise have enabled the government jointly with the private sector to geologically explore vast grounds and to expand the country's known mineral resources. Approximately 93% of the country's total land area of 30 million hectares have been geologically mapped on at least 1:250,000 scale. Of the 93% total coverage, roughly 37.54% or 11.07 million hectares have been done on scales of 1:10,000 to 1:50,000 as shown in Figure I. Only 3.07% of the total coverage have been surveyed in detail. Land gravity surveys have been undertaken on over 45% of the total, while some 77,300 line km. of aeromagnetic surveys have been flown over 110,000 sq. km. of land area. Processing of data is almost complete. Total magnetic intensity and IGRF-corrected maps are available. Geological interpretation utilizing Landsat MSS imagery and low altitude aerial photography augmented by ground truthing have been undertaken in several large areas with very encouraging results. Beach and offshore mineral surveys were initiated in 1977 and have covered substantial areas in northwest and southeast Luzon and northeastern Mindanao. Highly promising areas for detrital magnetite, chromite, gold and some heavy minerals including ilmenite and titanium have been identified. In the petroleum sector, two offshore oilfields are currently producing from Miocene limestone reefs in Northwestern Palawan. Another field from the same area will be on stream in mid-1982.

Jan 1, 1982

Jan 1, 1956

Samples collected during the exploration phase of mining represent baseline conditions at the site. As such, they can be very important in forecasting potential environmental impacts should mining proceed, and can become measurements against which future changes are compared. Constituents in stream water draining mined and mineralized areas tend to be geochemically, spatially, and temporally variable, which presents challenges in collecting both exploration and baseline water-quality samples. Because short-term (daily) variations can complicate long-term trends, it is important to consider recent findings concerning geochemical variability of stream-water constituents at short-term timescales in designing sampling plans. Also, adequate water-quality information is key to forecasting potential ecological impacts from mining. Therefore, it is useful to collect baseline water samples adequate for geochemical and toxicological modeling. This requires complete chemical analyses of dissolved constituents that include major and minor chemical elements as well as physicochemical properties (including pH, specific conductance, dissolved oxygen) and dissolved organic carbon. Applying chemical-equilibrium and appropriate toxicological models to water-quality information leads to an understanding of the speciation, transport, sequestration, bioavailability, and aquatic toxicity of potential contaminants. Insights gained from geochemical and toxicological modeling of water-quality data can be used to design appropriate mitigation and for economic planning for future mining activities.

Jan 1, 2011

By Liu Cheng-si

Basing on a brief assessment of the conventional theory of ventilating air distribution, its methods of calculation and practical application, this paper makes an approach to the controllability of different aircourses of a ventilation network and further points out that it is possible for the positions of control to extent into the natural distribution subnetwork of the ventilation network, which was been long considered as a restricted zone. This important discovery makes the regulation of the ventilation system more flexible and diversified, thus attaining quantitative distribution of ventilating air as well as a cost benefit. Because it has been impossible to solve the problem mentioned above by conventional theory and its relevant methods of calculation, the author, based on applying graph theory on the structure, characteristics, and requirements of controllability of the ventilation network, presents a new controllable subgraph concept and the means for determining the rational quantity for control devices of the ventilation network. The solution of all the control alternatives and methods of obtaining all the parameters for the solution of various alternatives have been derived. The economic benefit and the optional positions of the control devices have also been approached. Specific calculation examples are a1 so included in this paper. Along with the conventional theory and its methods, it can be seen that the new theory presented makes a great change in the control aspects of the ventilation network, with the number of possible alternatives increasing in an astonishing manner. Among the alternatives, some may be safer, more economical or technologically superior than those obtained from conventional theory. Thus, the new theory may provide an immense improvement in the choice of a ventilation system.

Jan 1, 1987

By J. B. Scott, J. S. Nelson, G. H. Kruse, W. S. Johnson, K. L. Zerneke

The economics of pressure tunnel design emphasize the utmost utilization of the least expensive pressure-resisting material available, namely, the rock surrounding the tunnel. A major difficulty in the design is the problem of transferring internal hydraulic pressure to the rock through a tunnel lining or membrane provided to maintain watertight conditions. The lining is necessary not only to prevent water loss, but to prevent the diffusion of water at high pressure through joints and fractures beyond the confines of the tunnel, an occurrence which could ultimately affect the stability of the rock mass through which the tunnel passes. Because of its toughness and ability to bridge localized areas of weakness, steel is used for a lining material whenever high internal pressures are involved. The steel lining is coupled to the surrounding rock mass through an annular ring of concrete backfill. It is paradoxical that the steel lining, needed primarily to assure water tightness, must of necessity be incorporated into the structure as a major pressure-resisting component, not to augment the bearing capacity of the concrete and rock, but to limit the strain for the safety and preservation of the steel lining itself. With the deformation modulus of the steel so much greater than that of the rock, the liner approaches its yield strength before the load capacity of the rock can be fully mobilized. An economical determination of plate thickness for steel liners is therefore dependent upon measurement of the properties of the surround-

Jan 1, 1970

By James R. Miller

Recent experience over extensive areas of the Basin and Range Province has demonstrated the importance of the basin's (valley's) geology and geomorphology in locating large quantities of good-quality aggregate. First, a geologic map depicting basic geomorphic-geologic units in a valley is made in the office from aerial photography. Next, derivative maps are made from geologic maps and field-derived information such as parent rock type, source area and depositional environment, relationship to adjacent deposits, and Quaternary geologic history. Studying the derivative maps leads to selection of test sites for potential deposits of high-quality aggregates. Subsequent field studies provide more detailed information about geologic processes and samples for laboratory testing. Combining all information allows the characterization of aggregate potential of very large areas. Favorable areas can be further tested. This phased approach has proven to be cost effective. The methodology used in mapping and characterizing basinfill deposits is applicable over much of the western United States. Map units were developed by focusing on the predominate geomorphic process, grain size, cementation, and relative age. The resulting functional map units are of use to engineers and planners. This study led to many conclusions, including the fact that the best quality basinfill aggregates are found in selected alluvial fan deposits and Pleistocene lakeshore deposits. The best quality aggregates are derived from Paleozoic carbonate and quartzitic parent materials that can also provide high-quality crushed-rock aggregates.

Jan 1, 1987

By K. W. Grubaugh, L. W. Saperstein

The recently enacted federal surface mine law (P. L. 95-87) increases further the complexity of securing a reclamation permit This law intensifies the need to present the required reclamation plan in a thorough and comprehensive manner. One plan format, that used in construction performance contracts, offers promise of filling this need. Reasons for using the format of expressed, bilateral, negotiated contracts common to the construction industry, and the salient aspects of an application which uses this format are reviewed. Advantages of this procedure are seen to be improved mine planning, awareness of the total design job, potential for improved speed of permit acceptance, and improved cost control.

Jan 1, 1981

By Masaki Kitazume

Deep mixing method, in-situ admixture stabilization technique, has been developed and adopted for on land and marine construction works in Japan. The geotechnical design procedure of the method has been standardized in Ministry of Land, Infrastructure and Transport Government of Japan for port and harbor facilities, which includes the block type and wall type improved grounds for foundation stability, settlement reduction purpose. This procedure is based on the allowable stress concept, in which the induced stresses within the improved ground are confirmed to be lower than the allowable strength in the internal stability calculation. This procedure has been cited by several organizations to establish their standards. The Ministry has a plan to introduce a reliability based design for marine construction works in 2006, in which the design procedure on DM improved ground will also be modified to the reliability based. In the new design procedure, the average and variation of soil parameters and external loads are incorporated by partial safety factors to investigate the stability of improved ground. According to the plan, the author has been studied the design procedure and the magnitude of partial safety factors, and has established a preliminary draft of the standard. This draft will be brushed up through comparing the current design procedure. In this article, the design concept and design procedure of the method are briefly described.

Jan 1, 2004

By Antonio Nieto, Jesus Castillo

Research and Development (R&D) departments in the mining sector are essential for creating new solutions on productivity, safety, and sustainability. Nevertheless, the selection of R&D projects is complex, often influenced by subjective judgments and uncertainties. This paper explores the application of the Multicriteria Decision Analysis (MCDA) as a structured approach to evaluate and prioritize innovation projects based on various criteria such as safety, cost, environmental impact, and social acceptability. By assigning weights and quantifying criteria, MCDA enhances decision-making transparency and objectivity. This study aims to show a method that facilitates strategic thinking, resource optimization, and stakeholder engagement, ensuring that selected innovations align with the company’s long-term objectives and commitment to responsible mining practices.

Feb 1, 2025

By D. M. Milne, P. J. Lunder, R. C. Pakalnis

During the mining of an open stope, deformation of the hanging-wall and the potential for dilution generally increase with the size of the exposed hanging-wall. Excluding discrete structures that may delineate unstable blocks, the mechanisms that drive hanging-wall deformation and possible dilution comprise several factors which can include elastic, plastic and discontinuum deformation. These stages of deformation are not mutually exclusive and at any point during mining all three of these mechanisms may be acting on the hanging-wall rock mass. Computer modelling techniques are available to analyse the three stages of deformation, but the difficulty lies in trying to obtain realistic rock mass properties for input and in determining when each stage of deformation is acting. Instrumentation data can be used to predict the effect of continued mining. However, it is often difficult to calibrate numerical models against field data owing to the large number of input parameters required. An empirical approach is recommended that uses two new parameters, the radius factor and the effective radius factor. A method is proposed for predicting the effect of continued mining from existing deformation and dilution data for a given hanging-wall

Apr 1, 1996

By Jeffrey A. Schaefer

The Olmsted Locks and Dam project is located on the Ohio River approximately 16.5 miles upstream of its confluence with the Mississippi River. It consists of twin 1200 ft. locks with floating and fixed approach walls, five 110 ft. wide tainter gate bays, a 1400 ft. wide navigable pass boat operated wicket gate section, and a 400-ft. section of fixed weir (Fig. 1). The project will have a total cost over 1.0 billion dollars, and as such is one of the largest civil works project underway in the Corps of Engineers.

Jan 1, 2001

By S J Riley

The cover (cap) over the tailings pit at Nabarlek uranium mine must be structurally stable as it will act as a barrier to radon gas emission and have to contain other long-lived radionuclides. Structural stability is primarily an issue of erosional stability in the context of a design life of thousands of years. The primary agent of erosion is fluvial, dominated by rainwash, overland flow, filling and gullying in the local area. Other agents of erosion are of less concern although biogenic agents of erosion (eg termites and windthrow) may enhance fluvial activity. Several methods may be used to assess erosional stability. They fall into two main categories, namely erosion modelling and geomorphic modelling. The former is illustrated by the Universal Soil Loss Equation in which parameters describing aspects of the geotechnical and hydrological properties of the rehabilitated surface are used as input for the modelling of erosion rates. The latter is illustrated by estimates of gully and valley erosion using empirical models. Estimates of the erosion rates and stability of the Nabarlek cover are presented. The two main techniques are complementary and it is argued that rehabilitation design must make use of both approaches when estimating erosion and geomorphic stability. More recent developments in geomorphic modelling using numerical techniques incorporate both approaches.

Jan 1, 1994

By Charles R. Wilson, Thomas W. Doe, Jane C. S Long, Howard K. Endo

An approach to treating flow through fractured rocks is presented which involves (1) determining statistical distributions for fracture area, density, orientation, and aperture from field data, (2) computer generation of fracture systems from the statistical distributions, and (3) analysis of the permeability and porosity of the fracture systems. The fracture density and orientation data my come from core logging or mapping. The hydraulically appropriate apertures and areas of the fractures come from transient flow analyses of single fracture well tests. These tests my also yield information on fracture deformability. Analysis of flow through computer generated fracture systems shows that an equivalent porous medium permeability can be defined for some fracture systems if a large number of fractures is taken into account.

Jan 1, 1982

By T. E. Wakefield

Over several decades in Southern Africa the advance rates when sinking vertical shafts have declined significantly. The upside has been a substantial improvement in shaft bottom conditions and a commensurately improved safety performance, with an increasing number of shafts being sunk without fatalities and disabling injuries. This paper briefly reviews historical sinking rates and matches changed sinking productivity to the introduction of new sinking methods that have been adopted to eliminate/mitigate safety risks. Meeting the challenge of returning to historical advance rates whilst progressing in the quest for zero harm by utilizing three dimensional animated computer modelling is described. Making use of commercial modelling software makes it easier to evaluate different methods, sequencing, in shaft barrel ergonomics, and stage and shaft bottom layouts before procuring project plant and equipment. Benefits accrue not only in better communicating methods and configurations for detailed planning and design, but also during crew training. The traditional engineering ?as-built? drawing practice has been extended to the concept of an ?as executed? sinking model which seeks to capture operational experience and learning for future best practice. The paper concludes with some of the organizational culture challenges being overcome as this non traditional approach to shaft sinking optimization is being introduced.

Jan 1, 2009

In the mining and minerals industry, development, introduction and construction of new plant designs, to meet sustainability objectives, face a series of major hurdles. Typical are the long investment cycle times, the designer does not normally control the spending (the owner does), and the industry is inherently technologically conservative or risk adverse while accepting the often more significant geological, market and political risks.æSustainable Plant DesignÆ is an approach to plant and facility design that drives the necessary culture change and acceptance by minimising technical risk and maximising potential returns. The approach forces consideration of sustainability objectives and risks early in the project, where cost saving and efficiency improving opportunities can be maximised.In Hatch, we are using three proven tools under the ærisk managementÆ umbrella to drive sustainable development principles into our projects:Sustainable Plant Design, FutureWatchTM Reviews, and Clean Plant DesignTM . These proactive practical, not theoretical, techniques for driving change from within and reducing whole of life cycle costs will be discussed and illustrated with case studies.

Jan 1, 2004

By W B. Edgar, S C. Dominy

High-nugget effect vein-gold systems are generally considered to be one of the most challenging of deposit types to evaluate and exploit. To potential investors and mining companies, they are viewed as high risk because of the associated uncertainties in the grade estimate and general paucity of Ore Reserves at production start-up. However, despite the well-known risks, these deposits often have a grade upside that makes them potentially attractive. The reporting of resource grade is of importance and perhaps even more so is the reporting of the associated uncertainty attached to the grade estimate. The use of the grade estimate supported by a grade range is recommended to achieve more complete and useful disclosure. The definition of the grade range can be somewhat subjective, ranging from opinion based estimates through to data-based estimates and geostatistical conditional simulation. Whichever method used, the over-riding issue must be the provision of enough data of appropriate quality and full disclosure to the public of relevant uncertainties.CITATION:Dominy, S C and Edgar, W B, 2012. Approaches to reporting grade uncertainty in high-nugget gold vein projects, in Proceedings Project Evaluation 2012 , pp 95-108 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 24, 2012

By J. J. Davis, C. A. J. Fletcher, M. Li, T. Jancar

This paper summarises the experimental approach to spiral modelling at the Julius Kruttschnitt Mineral Research Centre, University of Queensland, involving the use of plastic density tracers to determine partitioning performance on three models of coal spiral. This work has led to phenomenological models of the three spiral profiles most widely used in the Australian coal industry. The results from a parallel computational fluid dynamics approach to spiral modelling currently underway at the University of New South Wales are also presented. The computational simulation has been successfully applied to generic spiral geometries and is capable of predicting the fluid phase three dimensional flow fields and corresponding free surface profiles for moderate Reynolds' number and Froude numbers. Simulation predictions are compared with experimental results from a Mineral Deposits LD9 coal spiral.

Jan 1, 1995

By K G. van den Boogaart, U Mueller

"An accurate prediction of benefit for some types of ore may require not just the ore grade, but a whole compositional characterisation of the estimates; that is, its full mineral composition including waste composition and nuisance elements. An example is Nickel laterite ores, where Ni/Co content must be complemented by estimates of many other elements, as these might have a notable impact on ore processing.Estimates are often obtained with (co-)kriging or co-simulation; however, geostatistics applied to compositional data may yield spurious and inconsistent results because of the constant sum constraint. The log-ratio approach avoids such problems. It proposes a three-step procedure: data are mapped to a set of log ratios of components; for example, the additive log-ratio transformation (alr) transformed scores are modelled with an appropriate fully multivariate geostatistical toolbox; for example, direct/cross-semivariograms and co-kriging or co-simulation results are back-transformed to the original units.Some practical aspects may make the application of this technique difficult: the assumption of Gaussianity and the high dimensionality of the compositions combined with the need for using multivariate methods. This contribution compares several ways of treating compositional data (combining normal score transformation, log-ratio transformations, and minimum/maximum autocorrelation factor (MAF) decomposition) with respect to their ability to generate sensible simulations. The various approaches considered are illustrated with a Nickel laterite data set for which ten variables are available. Both theoretical considerations and illustration results suggest that the best combination is (log)ratio-normal score transform-MAF, in this order. The factors so obtained are closer to Gaussian, approximately spatially decorrelated and can be simulated independently. Simulations can later be recombined to alr-simulations, which in turn may be converted back to point compositions. The resulting simulated compositions are compared with a full Gaussian co-simulation of the raw data. The log-ratio methods show reasonable to good reproduction of mean values, and distribution of the data set and by construction satisfy the total sum constraint, in contrast to the simulations based on raw data for which the total sums fluctuate strongly.CITATION:Mueller, U, Tolosana-Delgado, R and van den Boogaart, K G, 2014. Approaches to the simulation of compositional data – a nickel-laterite comparative case study, in Proceedings Orebody Modelling and Strategic Mine Planning Symposium 2014, pp 61–72 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Nov 24, 2014

By William A. Price

The objective of this paper is to outline the approaches used in British Columbia to address the challenges posed by metal leaching and acid rock drainage (ML/ARD). Challenges include the large financial costs, the need for site-specific assessments, the large information requirements, the need for mitigation measures to be designed and financed in a manner that permits long-term performance, the lack of long-term operating experience, the ongoing changes in many important processes, the need for pro-active detection and resolution of concerns, difficulties in predicting the potential for ARD or significant metal leaching, the need for new tools, and the multidisciplinary, highly specialized nature of the work. Consequently, mines must be planned, operated and closed in a manner that permits regular review, detailed monitoring and adaptive management. Proper consideration of the challenges involved, including a plan of how all outstanding concerns will be addressed, studies to address areas of significant uncertainty and caution in the absence of the required understanding, should ensure environmentally safe practices in the future.

Nov 1, 2002