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By C. Musingwini, A. S. Nhleko

"Since the Global Financial Crisis (GFC) in mid-2008, capital has been more difficult to access. Mining projects must contend with projects from other industries for scarce capital. A decision to invest available capital in mineral projects requires that valuation be conducted to assess the expected return on the projects. The discounted cash flow (DCF) analysis is generally applied for the valuation of mining projects, whereby future cash flows are discounted to present value using an appropriate discount rate. The discount rate significantly affects the outcome of a valuation. Economic and finance theory provides tools to calculate discount rates. The discount rate must account for factors such as the risk and stage of development of the mineral project; hence the appropriate discount rate to utilize in a project is often a subject of debate.The discount rate is the weighted sum of the cost of debt and equity. There are several methods for determining the cost of equity. This study considers the commonly applied Capital Asset Pricing Model (CAPM) and Gordon’s Wealth Growth Model because of their simplicity and availability of parameters required to estimate the cost of equity. This study explores how differences in the cost of equity obtained by these two methods can be explained for a mining environment. Data for empirical analysis were collected from the I-Net Bridge, McGregor BFA, and Bloomberg databases. It was found that Gordon’s Wealth Growth Model provides better estimates of the cost of equity compared to the CAPM under depressed market conditions. Therefore, this research recommends that Gordon’s Wealth Growth Model be used to estimate the discount rates for mining projects during periods of depressed market conditions."

Jan 1, 2016

By C. J. Roos

Ground engaging tools are used to prevent damage to the main components of earth-moving equipment. These tools consist of everything from shovel teeth to replaceable drill bits to dozer wear plates. The costs of these ?consumable? items are increasing with the costs of raw materials. This project developed a tool to be used by Newmont Mining Corporation to predict the consumption of excavator teeth. This paper presents the results of a Montana Tech research project in which an equation was developed to predict excavator teeth consumption based on production rates and rock properties.

Jan 1, 2009

The projection of operating costs for mining, processing, and other site operating costs is an exercise which can be fraught with considerable peril. Not only are the physical characteristics of each mineral property unique, but a range of other factors will influence the consultant's approach to compiling cash flow estimates. This paper details some of the techniques used in estimating operating costs for use in order-of-magnitude cost studies and feasibility studies, and describes how to avoid common areas of difficulty. A series of examples relating to open pit gold mining and processing cost estimates illustrate these problems, and various corrective methods are described. The mining and treatment processes, and their associated cost elements, are followed in sequence of operation from on-going ore delineation through to disposal of the product. In addition the problem of assigning management, administration and overhead costs along with taxation allowances is addressed. Of critical importance is the application or possible misapplication of accrual procedures to the cost elements. In many cases such misapplication can introduce more pronounced errors with projects of short duration, such as the typical open pit/C.I.P. gold operation commenced in the last decade. The importance of providing verification of estimates depending upon the standard of the cost study is also investigated, and opinion is provided upon the minimum levels of verification necessary at various stages. Finally, the amalgamation of the various individual cost elements into a coherent whole is reviewed.

Jan 1, 1990

By T. Celik, B. Genc, C. Musingwini

"Mine planning software continues to be an important factor when it comes to the development of the South African mining industry. To contribute to this development, a new methodology to define and measure mine planning software utilization in the South African coal mining sector within an evolving data-set framework was developed. An initial data-set showing the mine planning software providers, their corresponding software solutions, as well as the software capabilities and information on the number of licences was collected and compiled in 2012 in an online database for software utilized in the South African mining industry. Details of the database development and implementation were published in the Journal of the Southern African Institute of Mining and Metallurgy in 2013. In 2014 the data-set was updated with additional and new information.In this paper, using the 2012 and 2014 time-stamps, a methodology for estimating the software utilization is developed. In this methodology, three variables: commodity, functionality, and time factor are used to define and measure the software utilization in order to ultimately inform decision making strategies for software utilization. Utilization in the coal sector was measured according to six different functionalities, namely Geological Data Management, Geological Modelling and Resource Estimation, Design and Layout, Scheduling, Financial Valuation and Optimization. The methodology is useful for stakeholders reviewing existing software combinations or intending to purchase new software in the near future and wanting to estimate the comparative attractiveness of a certain software package. These stakeholders include mining companies, consulting companies, educational institutions, and software providers. The work presented in this paper is part of a PhD research study in the School of Mining Engineering at the University of the Witwatersrand."

Jan 1, 2016

By T. Celik, B. Genc, C. Musingwini

"This paper discusses a new methodology for defining and measuring mine planning software utilization in the South African gold mining sector within an evolving data-set framework. An initial data-set showing the mine planning software providers, their corresponding software solutions, as well as the software capabilities and information on the number of licences was collected and compiled in 2012 in an online database for software utilized in the South African mining industry. Details of the database development and implementation were published in the Journal of the Southern African Institute of Mining and Metallurgyin 2013. In 2014 the data-set was updated with additional and new information. Using the 2012 and 2014 timestamps, a methodology for estimating the software utilization was developed. In this methodology, the three variables of commodity, functionality, and time factor were used to define and measure the software utilization in order to ultimately inform decision-making strategies for optimal software utilization. Using six different functionalities, namely Geological Data Management, Geological Modelling and Resource Estimation, Design and Layout, Scheduling, Financial Valuation, and Optimization, utilization in the gold sector was measured. This paper presents the methodology employed for measuring the mine planning software utilization. The methodology is useful for stakeholders reviewing existing software combinations or intending to purchase new software in the near future and who want to estimate the comparative attractiveness of a certain software package. These stakeholders include mining companies, consulting companies, educational institutions, and software providers. The work presented in this paper is part of a PhD research study in the School of Mining Engineering at the University of the Witwatersrand."

Jan 1, 2015

By Yukihiro Ishihara, Nanase Ogawa, Ming Lei

"Abstract In the Press-in Method, a static jacking force is used to install a prefabricated pile, while a reaction force is gained from previously installed piles. This piling technique has solved problems in urban piling construction such as noise and vibration associated with the piling work, restricted construction conditions due to the existing structures, and so on, since its emergence in 1975. Its applicability to hard ground conditions has been improved, with the development of press-in machines that involve augering or rotation. Besides, information such as time, penetration depth, jacking force and rotational (or augering) torque in piling work are automatically obtained. The concept of PPT, Pile Penetration Test, has been developed by the authors, to apply the obtained information to the processes of construction planning or foundation design. This paper highlights the technique to estimate SPT N value from data acquired in standard press-in (press-in without any auxiliary methods), press-in with augering and rotary press-in. The technique will be helpful in assuring the adequate embedment depth, re-selecting the adequate press-in machine or auxiliary method, and re-pricing the project objectively, particularly when a contractor encounters unexpected ground conditions.INTRODUCTIONThe Press-in Method is one of the piling techniques that use a static jacking load to install piles. It mitigates environmental problems of noise and vibration that have been associated with other conventional piling techniques.It is also featured by its spatial efficiency; since a ‘press-in’ piling machine gains a reaction force from the previously installed piles, there is no need of bulky weights that will occupy a large space. This feature is emphasized in the piling system in Figure 1, where a press-in machine and its related devices are all positioned and ‘walk’ on top of the pile wall.Its applicability to hard grounds has significantly been improved, with some newly developed piling machines that involve augering or that install tubular piles with teeth on the base by applying axial load and rotational torque at the same time."

Jan 1, 2014

Estimating Particle Size Fraction Proportions - A Multiscale Approach Using Multiple Kernel Learning

Sep 13, 2010

In addition to capital and operating costs, the accurate estimation of ore reserves is a key component to the successful outcome of any feasibility study. In recent years, there have been many project failures caused by the improper estimation of ore reserves. The accurate estimation of an ore reserve relies heavily on an understanding of the geology and the underlying assumptions unique to the estimation techniques being used. These assumptions are reviewed, and the shortcomings of the estimation techniques and their possible impact on a given project's economics are discussed. The latest developments in geostatistics in overcoming existing reserve-estimation problems are presented.

Jan 1, 1998

By D. A. Beck

The load-deformation response of discontinuous rock under static and dynamic loading conditions has been simulated using Explicit Finite Element models. The intent of the analysis was to investigate the effects of specimen size and confining stress on strength, dilation and comminution. The simulations allow the development of homogenised constitutive material properties for discontinuous rock masses using laboratory scale measurements and representative Discrete Fracture Networks (DFNs). A procedure for this is presented which includes a comparison of measured seismic response in a mine to the Dissipated Plastic Energy (DPE) that is released in the simulated rock masses. The models also show how confinement and scale affect the stress-strain and DPE response of the simulated rock specimens, reproducing a number of known rock phenomena that are often poorly captured in geotechnical modelling. A case study is presented showing a satisfactory match between the model-derived, homogenised material properties and values achieved by calibration of a mine-scale model where many thousands of seismic, displacement and damage measurements were available.

May 1, 2009

By Ronald E. Heuer

A 1995 RETC paper of similar title presented a method for estimating rock tunnel water inflow based on semi-empirical correlations with borehole water pressure tests. Since that time the author has found the method to be very useful, and it has been used by others in the industry. This current paper is an update which is intended to: A. More clearly explain assumptions and limitations of the method. B. Describe some case history examples. C. Respond to questions which have been raised; and extend the method to other considerations including distribution of inflow along the tunnel, panning requirements, interpretation of tunnel probe hole water inflow, and estimation of potential effectiveness of pre-excavation grouting to reduce water inflow.

Jan 1, 2005

By T. Hawthorne, H. Barnes

Homestake Mining Company has developed an estimating model, based on other closed projects, to audit and prepare new estimating plans. The results of recent closure audits reveal that the original budgets were often insufficient to cover the present expected expenses. Some of the major areas where technical challenges and costs are increasing include heap leach pile detoxification and rinsing, tailings dam closure, water management and treatment, abatement of contaminated soils, and many others. Risk and sensitivity analysis of each category will develop a level of confidence in the estimate and allow management to focus on the pertinent issues. Periodic audits of closure plans and costs throughout the life of mine serves to focus management attention on the complete costs of production. This will result in improved overall planning and management, and reduce the number of missed opportunities for savings.

Jan 1, 2000

A practical core-based method for estimating in situ stress was tested using 360° measurements of rock core diameter in a laboratory setting. In several mining districts across West Virginia, rock cores were recovered from exploration core holes and oriented using an acoustic televiewer (ATV) summary log. Measurements of diametral variation were performed at 0.1-foot depth intervals using a benchtop device comprised of a pair of diametrically opposed contact digital indicator gauges working in tandem. The diametral profiles were evaluated to determine strain direction and strain magnitude. Stress magnitudes were calculated when values for Young’s modulus, and Poisson’s ratio were available. Stress direction results are compared to other stress determination methods, including downhole overcores, drilling-induced fractures, and borehole breakouts. The testing and analytical methods used are similar to the diametrical core deformation analysis (DCDA) method (Ito, Funato, and Shono, 2012), but with a number of important improvements.

Jan 7, 2020

By Stanley C. Suboleski

1977 was the modern day low point for productivity in the coal industry. At that time, no one could have predicted that the industry was about to enter a productivity rise that would continue unabated through the 1980s. Thirteen years later, the cause of this phenomenon is still not well understood. While many government studies focused on the fall in productivity from 1969 to 1977, none have been undertaken to explain the rise. Some of the likely causes of the gain in productivity during this period will be discussed here. An attempt will also be made to quantify the value of some of the technical innovations that have taken place. The remainder of the gain is assumed to come from non-technical sources. The nature of these sources, although largely non-quantifiable, is also discussed. Since the number of mines that have adopted the technical innovations noted here is largely unknown, the actual contribu¬tion of technological changes to the overall productivity gain can only be estimated.

Jan 1, 1990

The cost of preparing a feasibility study is notoriously difficult to estimate. Studies for mining projects are typically commenced when an exploration programme has identified a mineable resource and pre-feasibility studies have shown that development of the resource would lead to an economically viable project. Pre-feasibility studies will normally include an estimate of the cost of a formal feasibility study and this estimate would then be firmed up before a commitment is made to proceed with the formal study. Data for preparing the feasibility study cost estimate will be sketchy, geological investigations, metallurgical testwork, and marketing studies may be needed before the scope of the project and hence the scope of the formal study can be finally determined. Before an estimate of the work required and hence of the cost of the feasibility study can be prepared the source of project funds must be decided. Studies for internally funded projects are often less rigorous than those which must be "bankable" and subject to the scrutiny of external financial institutions. This paper sets out suggestions for preparing more accurate cost estimates for feasibility studies by ensuring that all activities are included and shows how a staged approach to preparing such studies can minimise costs and guard against cost overruns. It also provides a case study showing how the estimate compared with actual costs for a recent feasibility study completed by Pancontinental Mining Limited.

Jan 1, 1990

By Margaret Armstrong, Chris Roth

Abstract -Estimating ore reserves for vein type deposits is a two-stage procedure: first, calculate the geometry of the vein system, and second, estimate the grades within this system. The grade estimation can only be consistently performed if the vein geometry - its size, shape and orientation - has been correctly characterized. Getting the size and shape of the different veins right means that the ore tonnages will not be artificially inflated, e.g., by falsely classifying host rock as veins. Similarly, correctly estimating their orientation and location helps mine management decide on the appropriate mining technique, selective or not. When applying geostatistics to estimate the vein geometry all available information needs to be used and not just the standard lithologic indicator of being or not being in a vein.

Jan 1, 1998

By J. A. Gutierrez-Rodriguez, R. J. Purcell, F. F. ApIan

"Based on contact-angle measurements and the work of adhesion equation, the hydrophobicity of a wide variety of coals was found to decrease with decreasing rank, fixed carbon and total carbon content and with increasing oxygen and hydroxyl content. The estimated hydrophobicity, based on the water-sessile-drop contact angle, is '\.. 20% for lignite, increases with increasing rank up to a maximum of 'V70% for low (LV) and medium (MV) volatile bituminous coals and then decreases somewhat for anthracite. Using the captive-bubble technique, the calculated hydrophobicity ranges from '\.. 0% (below HV A bituminous rank) to a maximum of 55% for L V-MV coal. The former estimation is believed to be the more accurate. While the water-sessile-drop contact angle as measured on a polished-coal surface is usually larger than that shown by the captive-bubble method, the two values were found to converge at""' 95% relative humidity. It is proposed that the surface of coal consists of three kinds of sites: strongly hydrophobic, weakly hydrophobic and hydrophilic. The sessile-drop technique measures the total hydrophobic sites whereas the captive-bubble method measures only the more strongly hydrophobic sites. A water film covers the weakly hydrophobic sites preventing their detection by the captive-bubble technique.INTRODUCTIONCoal is a mixture of the degradation products of plants and of mineral matter. The appearance and properties of a specific coal is determined by the nature of the original vegetation and the extent of the physical and chemical changes which have occurred after deposition. The coalification process may be considered to have started with peat formation followed by a transition to lignite due to burial under sediments and metamorphic processes. Further metamorphic transformation to bituminous coals and, finally, under intense metamorphic action, to anthracite causes the carbon content and rank of the coal to increase. With such a wide variation in their genesis and composition, equally wide variations in the degree of hydrophobicity of different coals may be expected. It is the purpose of this paper to provide a means of estimating the hydrophobicity of a given coal sample based on rank parameters."

Jan 1, 1989

By J. A. Taylor, R. J. Fowell

Abstract: The amount of published literature pertaining to the field of rock mechanics has increased markedly in recent years. Whilst computer applications aid our understanding of the mechanisms of pillar instability, the applications do not take into account the effect of time; thus the determined pillar factor of safety has limited meaning. A more realistic approach would be to consider pillar stability in terms of time to failure. However such an approach would require a reasonable estimate of the in-situ pillar mass strength and a validated methodology linking the time to failure with in-situ pillar mass strength and the geometric layout of the working. Résumé: Le volume de bibliographie au sujet de la mécanique des roches a augmenté considérablement ces derniêres années. Alors que des modeles informatiques aident a la compréhension des mécanismes d'instabilité de pilliers, ces modèles ne prennent pas en compte les effets du temps; ainsi, la determination du coefficient de surete du pillier a un sens limité. Une approche plus réaliste devrait considérer la stabilité du pillier en fonction du temps de défaillance. Cependant une telle approche exigerait une estimation raisonnable de la resistance du massif rocheux du pillier ainsi qu'une méthodologie qui lie le temps de défaillance avec la résistance in-situ du massif rocheux du pillier et la géometrie de l'excavation souterraine. Zusammenfassung: Die Anzahl der Veröffentlichungen auf dem Gebiet der Felsmechanik ist in jüngster Zeit sehr gestiegen. Computerprogramme sind wertvoll um den Mechanismus der Pfeilerunbeständigkeit zu verstehen, aber sie vernachlässigen den Zeiteffekt. Daher haben die errechneten Sicherheitsfaktoren der Pfeiler nur begrenzte Bedeutung. Eine realistischere Bewertung wäre, die Stabilität der Pfeiler auf Grund der Zeit bis zum Verfall zu beurteilen. So ein Verfahren würde eine Schätzung der in-situ Gebirgsfestigkeit und eine validierte Methologie, die die Zeit zum Verfall in Abhängigkeit der in-situ Pfeilerfestigkeit und der geometrischen Auslage der Grube zusammenbringt, brauchen.

Jan 1, 2003

By I. Ocak

The modulus of elasticity of rock material (Ei) is an important rock property that is used as an input parameter in the design stage of engineering projects such as dam and tunnel constructions, mining excavations, and so forth. However, determination of the modulus of elasticity is sometimes difficult to obtain by laboratory tests because high-quality cores are required. For this reason, empirical methods for predicting the modulus of elasticity of rock material have been popular research topics in recently published literature. In this study, the relationships between the uniaxial compressive strength (UCS), unit weight (?) and modulus of elasticity for different types of rocks were analysed by using 177 data obtained from laboratory tests carried out on cores obtained from drill holes within the area of the Kadiköy-Kartal Metro line (Istanbul, Turkey). Keywords: Kadikoy?Kartal Metro, uniaxial compressive strength, unit weight, estimating the modulus of elasticity.

Jan 1, 2008

By K. C. Mills

The objective of this work was to provide process engineers with values of the physical properties of various slag systems involved in high-temperature processes. Software that calculates the thermo-physical properties of slags from chemical composition is available on the www.pyrometallurgy.co.za website. This paper outlines the principles underlying the various models available in the program. The software calculates the following properties of crystalline, glassy, and liquid slags (where appropriate) as a function of temperature: heat capacity, enthalpy, density, viscosity, thermal conductivity, electrical conductivity, and surface tension. We hope, in the future, to update the program to (i) add new models as they become available, (ii) remove any ?bugs? discovered in existing programs, and (iii) provide guidance on the limitations of individual programs.

Jan 1, 2011

By William E. Wallace, Larry Grayson, Thomas Simonyi, Joel C. Harrison

Application of an SEM-based methodology suggests a reason for past contradictory results on the relationship between quartz and coal workers' pneumoconiosis (CWP). Results indicate that coal seams with the same bulk analysis of quartz have different amounts of surface-available quartz. Our research shows that the amounts of pure and surface-available quartz in a respirable dust vary directly with the rank of a coal seam, except in the case where rock materials are mined. The estimated amount of surface- available quartz therefore provides a measure of the quartz-related fibrogenic potential of a respirable dust.

Jan 1, 1992