Search Documents

By L. D. Smith

"Those who submit competing proposals for projects seek to present senior management with complete and fully supported material that will not fail under questioning. Hopefully, misleading notions and omissions will have been minimized and there will have been testing of the assumptions regarding the economic, social and political environments. A capital project evaluation team can do management and itself a service by including a sound approach to the impact of inflation (and its twin problem, interest) on a project and a great disservice with an inappropriate approach to inflation.InflationHandled deftly, inflation can alter a project evaluation to show almost any result the handler desires. It must be a constant source of frustration for design people and cost estimators to spend weeks perfecting the technical aspects of a project in order to minimize costs, only to have all of their efforts set awash in a sea of financial and economic assumptions that submerge all of the detail. In all of this, inflation is perhaps the largest offender, with inflation criteria often being brought to bear at the last minute, almost as an afterthought. Perhaps this tardiness reflects the difficulty of the subject and the belief that senior management will take its own approach to the problems of inflation. Such a belief is unfair to senior management, for it is entitled to not being misled by omission. It is entitled to the full use of the skills of the evaluating team, including respectable assumptions of the impact of inflation.Working in a consulting context, one has the opportunity to participate in the evaluation of a large number of projects. Reflecting the observation of a wide range of views regarding the subject of inflation, this paper will-address the impact of five different approaches to inflation on the evaluation of a single Canadian mining project."

Jan 1, 1987

By B. Goard

"IntroductionCemented backfill has been placed underground in slurry form in Inco Limited's Ontario Division mines since the early 196Os. The slurry was traditionally mixed on surface at between 65 and 70 wt% solids* and transported underground via gravity through a borehole-pipeline distribution system. This method of placement, while simple and dependable, has proven to be costly because of the large amounts of transport water involved.A significant quantity of the slimes buildup on mine levels is caused by the backfill water carrying cement and other fine material out of the stopes. The level cleanup and eventual pumping or hoisting of the slimes and water back to surface result in substantial indirect backfilling costs.The cement that remains in the stope is always overhydrated because of the high water cement ratios that exist. As a consequence, high concentrations of Portland cement must be added to the backfill to produce the fill strengths required for the different mining methods.Pouring backfill at these densities also demands extensive fill preparatory work in the stopes to withstand the hydraulic heads created by the slurried fill. This, along with the delays in pouring necessary to allow for water drainage, result in significant losses in productivity.These negative aspects of slurry placed fill has led Inco Limited to investigate several methods of transporting backfill underground via pipeline, at higher densities (i.e. 75 to 95 wt.% solids). Three separate transport methods are presently being experimented with by the Company's Mines Research Department. Each utilizes a different technique or form of flow transport, i.e. concrete pumping technology, high density slurry flow, and pneumatic conveying."

Jan 1, 1987

By M. N. Bassim, W. W. Tennese

"Concepts of linear elastic fracture mechanics were applied to study two cases of failure, namely an equalizing beam from a tandem rear axle of a highway tractor unit and the main beam of a flat bed trailer. In the first case, the presence of a crack, initiated by stress corrosion cracking followed by significant fatigue crack propagation produced a state of stress which was sufficient to produce brittle failure. Calculation of the fatigue life agreed with the number of cycles that the structure experienced before final fracture. In the second case, it was demonstrated that a combination of low temperature and high loading rate was sufficient to cause brittle fracture.IntroductionFailure analysis of engineering components has generally been carried out without the benefit of fracture mechanics. It is generally understood that real structures inevitably contain internal or surface flaws which under an applied load, may propagate to fracture. Fracture mechanics relates the applied stresses to the crack size in specified geometries. Since its introduction approximately thirty years ago, fracture mechanics has evolved as a design philosophy which can be used to develop fracture-safe designs. It can be also applied in analysis of failures, to ascertain if sound design and fabrication methods have been used."

Jan 1, 1985

By Manqiu Xu, Pete Winn, Steve Wilson

"In the flotation of ultramafic ores at Thompson mill, Inco Limited, CMC is used as both a floatable rock depressant and electrostatic serpentine slime dispersant. CMC, being a high molecular weight polymer, creates a serious handling problem in its introduction into the flotation processes. Typically, it is added as a 1-3% solution. This requires an enormous handling facility and makes its metallurgical gains uneconomical.Laboratory studies have shown that dry CMC addition as opposed to wet addition is feasible, as long as sufficient conditioning time is provided. Dry CMC addition into the grinding mill is also possible but its effectiveness is slightly reduced as compared to dry addition after grinding mills. Dry CMC addition using a vibratory feeder into the mill discharge is successfully applied in the treatment of ultramafic ores at Thompson mill.INTRODUCTIONManitoba Division MineralogyAt Inco’s Manitoba Division, two distinctly different sulphide ores are processed at the Thompson mill - primarily by froth flotation. The Thompson and Birchtree mines are both located within the Thompson Nickel belt. Sulphide mineralogy is relatively simple and includes both hexagonal and monoclinic pyrrhotite, pentlandite and minor chalcopyrite hosted in metasedimentary and metavolcanic rocks. The significant difference between the two mines is the amount of ultramafic rock associations in the host material. Increasingly, more of the ultramafic associated ores from the Birchtree mine are being processed through the mill with a characteristic poor metallurgy."

Jan 1, 2000

By S. Hunt, D. de Vries

Kansanshi Copper Smelter began operation in March 2015. The smelter features a single Isasmelt furnace for smelting, one 6-in-line electric furnace for matte-settling and slag-cleaning duties, four Peirce- Smith converters and two rotary anode furnaces. A 1,450 t/day oxygen plant and a 4,085 t/day sulphuric acid plant are included in the smelter operations. This paper gives an overview of the operational performance to date with summary data for each smelter section. Challenges such as an unforeseen refractory failure in the Isasmelt furnace in 2016 are discussed. Design improvements around the electric furnace are mentioned. Plans for potential future improvements are put into context. A consistent focus on operations, maintenance and continuous improvement has seen the smelter easily achieve its nameplate capacity of 1.2 million tonnes per annum of copper concentrate throughput. The smelter now operates consistently at a concentrate throughput rate of 1.38 million tonnes per annum of copper concentrate. INTRODUCTION The smelter was commissioned in March 2015. Design and commissioning of the smelter have been discussed by de Vries, Hunt, Hanschar and Louie (2016). The smelter rapidly ramped up to achieve nameplate production (1.2 million tonnes per year concentrate) and in 2018 operated consistently at the rate of 1.38 million tonnes per year concentrate. This paper presents major operational data for each section of the plant and describes significant events and improvements during the first four years of operation. The smelter flowsheet is shown in Figure 1.

Jan 1, 2019

By L. Boyd, A. Charland, G. Potts, D. Fragomeni, N. O. Lotter

"The Raglan orebody and concentrator has been the subject of study in Process Mineralogy at Falconbridge since 1998. (Lotter and Tuzun, 1998) The orebody is classified into three distinct textural groups, or end members. These are referred to as disseminated, net-textured, and Massive Sulphides, and differ in terms of mineral grain size, nickel grade, hardness, and mineral association. In this paper, it will be shown that the sampling and characterisation of each end member on an individual basis develops a higher-level understanding of the processing requirements and behaviour of the mixture of ore as presented to the mill.The end members have been used in robust prediction of recovery at various grind size p80 from laboratory scale High Confidence Flotation Tests. Weighted mean mixtures of the end members have been mathematically combined to determine impact of textural distribution on metallurgical performance as a function of grind size.The ore end members also vary in hardness and breakage mechanism and have been used to model throughput capability for existing, optimized and retrofit grinding circuits. This modeling has provided a range of expected throughputs as the relative proportions of each end member varies.Finally, the differing grinding requirement per end member has led to the development of grinding and flotation strategy that increases rougher flotation recovery and provides flowsheet options for a concentrator expansion. This leads to further understanding of the plant performance as a function of ore mixture."

Jan 1, 2005

By John G. Henning

The Hoyle Pond underground mine is located in the Porcupine Gold Camp, 18 km east of downtown Timmins. Since the initiation of production in 1985, the operation has produced in excess of 1.9 million ounces of gold at a grade of 15 grams per tonne. Currently, Hoyle Pond ranks 8th in total ounce production for all past and present producing mines in the camp, with the highest head grade of any of the significant past, or present producing mines in Timmins. Cut and fill, shrinkage, longhole and panel mining methods are employed to excavate the narrow gold bearing structures. Using illustrative examples, this paper provides an overview of factors, such as geologic setting, rock mechanics challenges and mine infrastructure, which influence mine design at Hoyle Pond.

Oct 1, 2004

By Manqiu Xu, Joe Holmes, Peter Wells, Peter Langlois, Germain Labonté, Jim Barrett

"The flowsheet for the Voisey’s Bay mill had to meet the challenge of processing an ore containing high pentlandite and chalcopyrite values in a largely pyrrhotite/troilite matrix. In the 1994-97 period, circuit development focused on making a high-grade copper concentrate and a relatively low-grade nickel concentrate. However, in 1998 a circuit with copper concentrate, high-grade nickel concentrate and a Ni/Cu middlings concentrate was specified. Following a three year project delay, work resumed on the flowsheet in 2001, and the target for the overall grade of the nickel concentrate was raised from 14% to 20% nickel. To achieve this target triethylamine tetramine (TETA) and sulfite pyrrhotite depressants were used in an all lime circuit. It later became evident that, with appropriate selection of collector and adjustment of the circuit by the addition of a scavenger on the scavenger cleaner, it would be possible to approach the grade of concentrate required without the use of pyrrhotite depressants. The recycle of water and the contained thiosalts was also proven to be instrumental in raising the grade.Construction and commissioning of the mill were fast-tracked with start-up of the mill in September 2005 some six months ahead of the original schedule. Ramp-up of both throughput and metallurgy was faster than any other recent nickel installations with tonnage being limited mainly by concentrate dewatering due to the higher than initially planned ore grades.INTRODUCTIONNickel was discovered in the vicinity of Voisey’s Bay by Chislett and Verbiski working for Diamond Field Resources in 1993 and the Ovoid deposit was delineated in the winter of 1994/95. By the end of 1995 the Ovoid had been well explored and at that time was thought to have a reserve of at least 30 million tonnes with an average grade of 2.83% Ni and 2.0% Cu. Drilling to the east of the Ovoid had indicated the presence of significant mineralization. In June of 1995, Inco Limited bought a 25% share in the Voisey’s Bay Nickel Company (VBNC) which was a subsidiary holding company set up by Diamond Fields. Inco also bought 8% of Diamond Fields and negotiated the right to sell all the nickel produced from VBNC for twenty years as part of this agreement. In April 1996, Inco bought the 75% of VBNC shares that it did not own."

Jan 1, 2007

By Jean Cayouette, Paul Blatter, Paul Cousin

"The Laronde mill was commissioned in 1988 and has been treating the Laronde Penna ore since 2000. The Laronde plant, situated in the Abitibi region of Quebec, has experienced mill expansions to accommodate 7500 mtpd and to recover gold and silver as well as important amounts of base metals (Cu, Zn, Pb). Ten sequential metallurgical and environmental processes are responsible for metals recovery and process viability. Over 200,000 ounces of gold, 4,5 million ounces of silver, 7000 tonnes of copper, and 78,000 tonnes of zinc are produced annually.In 2008, the Goldex plant began trucking high grade (35-45 g/t Au) pyrite sulphide concentrate (TCGO) for gold extraction at a newly constructed treatment plant, increasing gold output at Laronde by 40,000 ounces. In 2009, the high gold grade Lapa ore processing facilities were annexed to the Laronde plant increasing output by 120,000 ounces of gold. TCGO and Lapa productions are forecasted until 2018 and 2015 respectively, with known reserves of each mine.Today, up to 140 permanent employees run and optimise the Laronde plant operation. As a result, Laronde has intricacies intrinsic to a large and varied operation. The paper will outline the metallurgical highlights, challenges, and future outlook related to the treatment of each ore type (Laronde, TCGO, and Lapa).INTRODUCTIONFollowing the 2000 to 2003 expansions, the Laronde plant evolved into a mature milling complex with developed processing, man power, and water treatment capabilities able to accommodate the complex Laronde ore. The ore requires a series of grinding, copper/lead flotation and separation, zinc flotation, zinc tails precious metals leaching, followed by a counter-current decantation circuit and Merrill Crowe precipitation. A paste backfill and SO2-air cyanide destruction operate intermittently. The tailings area has a dedicated cyanide destruction and metals precipitation plant prior to water recycling to the mill. A biological water treatment plant was put into service in 2004 to address the build-up of thiocyanate in the tailings ponds at Laronde. This was the result of the high sulphide content of the Laronde ore and 90% recirculation of the process water. The plant uses bacteria to oxidize and destroy thiocyanate, and removes phosphate from the water before it is released to the environment."

Jan 1, 2011

By R. Bruce Ferguson

"IntroductionThe Beaverlodge Operation of Eldorado Nuclear Limited is a uranium property located near the north shore of Lake Athabasca about 7 miles from Uranium City, Saskatchewan.The mill is a 2000 tpd carbonate leach operation producing a high grade yellowcake concentrate.The Lamella Thickener was purchased to replace a 55 foot conventional unit which had deteriorated beyond repair. The cost of the unit was considerably lower than for a conventional unit, installation was much simpler and the unit is much more compact allowing it to be installed in the mill basement and be insulated completely.The unit was sized according to the results of tests performed both by the supplier and Beaverlodge engineering staff. The supplier guaranteed overflow clarities of less than 100 ppm suspended solids. The Lamella thickener was developed by A. Johnson Co. of Stockholm, Sweden, is manufactured under license by Parkson Corporation of Ft. Lauderdale, Florida and is distributed in Canada by A. Johnson Co. of Montreal."

Jan 1, 1975

By Orlando C. Gaspar

Abstract - The presence of fine-grained mineral intergrowths, the complex distribution of deleterious minor elements, and the variable base-metal contents in some assemblages commonly pose technical problems for the processing of volcanogenic massive sulfide ores. The beneficiation of most massive sulfide ores from the Iberian Pyrite Belt requires extremely fine grinding to liberation sizes of K80 = 15 µm to 25 µm. For several deposits, mapping of the ore types and metal zoning patterns has shown that the different ore types are distributed as ore lenses within the massive sulfides. Mineralogical, textural, and metallogenetic studies have provided an understanding of the distribution of both the vertical and the horizontal metal zonation in the orebodies. Because the efficiency of ore processing is affected by ore textures, and because the same mineral commonly has different textures and varies in chemical composition, a relationship between textures of the feed and the middlings must be established for all ore types defined at the deposit scale. Quantitative mineralogical methods have been developed to provide, on a timely basis, the information needed to optimize the concentration processes for the massive sulfide ores at the Aljustrel and Neves-Corvo deposits, Iberian Pyrite Belt, Portugal.

Jan 1, 1997

By Orlando C. Gaspar

The presence of ?ne-grained mineral intergrowths, the complex distribution of deleterious minor elements, and the variable base-metal contents in some assemblages commonly pose technical problems for the processing of volcanogenic massive sul?de ores. The bene?ciation of most massive sul?de ores from the Iberian Pyrite Belt requires extremely ?ne grinding to liberation sizes of K80= 15 µm to 25 µm. For several deposits, mapping of the ore types and metal zoning pat-terns has shown that the different ore types are distributed as ore lenses within the massive sul?des. Mineralogical, textural, and metallogenetic studies have provided an understanding of the distribution of both the vertical and the horizontal metal zonation in the orebodies. Because the ef?ciency of ore processing is affected by ore textures, and because the same mineral commonly has different textures and varies in chemical composition, a relationship between textures of the feed and the middlings must be established for all ore types de?ned at the deposit scale. Quantitative mineralogical methods have been developed to provide, on a timely basis, the information needed to optimize the concentration processes for the massive sul?de ores at the Aljustrel and Neves-Corvo deposits, Iberian Pyrite Belt, Portugal.

Jan 1, 1997

By P. A. Witt

"Highland Valley Copper is a conventional truck-shovel mining and flotation concentrator operation located 75 km southwest of Kamloops, British Columbia (Fig. 1).The ore is situated within a porphyry copper deposit and is mined at a rate of 135,000 mt/day from two separate open pits. The nearby mill produces concentrates containing 375 million pounds of copper and 5 million pounds of molybdenum metal yearly. In the Valley pit, head grades are roughly 0.40% Cu at a 0.23% Cu equivalent cut-off. The Valley pit strip ratio currently sits at 0.55:1 with waste quantities made up of separate rock and unconsolidated overburden units. From the mill, concentrates are trucked to nearby Ashcroft and then hauled by rail to ocean port facilities in Vancouver. The mine employs 950 people and is planned to operate until 2009. The operation is a partnership between Teck Cominco (63.9%), BHP Billiton (33.6%), and others (2.5%). Management is shared by the two principal owners and directed by a management committee."

Jan 1, 2005

By D. Bois, P. Keating, J. Lemieux, M. A. Vallée, M. Allard, R. S. Smith, L. Z. Cheng, M. Chouteau, K. Fountain

"A comparison of data from INPUT, GEOTEM, and MEGATEM airborne electromagnetic (AEM) systems over the Aldermac deposit, Québec, Canada, was undertaken to evaluate the relative ef¬ficiency of these systems for the detection of small, deep conductors. The Aldermac orebody was mined between 1933 and 1934 to a depth of 200 m. A deeper mineralized zone was discovered in 1987. The MEGATEMII system was used to acquire 90- and 30-Hz data over the deposit in 2003 as part of a research project. These MEGATEMII data were compared with data acquired by other AEM systems (GEOTEM and INPUT), and the results show that the MEGATEMII response is ten times larger than the other sys¬tems. For the dB/dt response, 30 Hz gives a better signal-to-noise ratio, whereas 90 Hz has a better signal-to-noise ratio on the B-field.The data were evaluated by numerical modeling. The deposit was best represented by a complex mod¬el, comprising two weakly conductive bodies to approximate the alteration halo, two deeper prisms repre¬senting known orebodies, and three bodies ranging in thickness from 3 to 6 m and in resistivity from 12 to 20 ohm·m, representing the chargeable overburden. This implies that the MEGATEMII system is able to see a small conductive body at more than 200 m depth in an area where the response is contaminated by conductive overburden."

Jan 1, 2009

By A. Pratt

Portland cement is primarily used to solidify backfill in underground mine workings and it represents a major cost in mining operations. CANMET-MMSL has invented an alternative binder technology that does not contain any amount of Portland cement and is made using waste materials, such as development rock and smelter slag. The technology has been successfully tested with many types of base metal and ferrous slag. Research conducted in collaboration with several mining operations in Canada has shown that the CANMET-MMSL binder has considerable potential as a replacement for Portland cement in mine backfill. An integral part of the overall mining operation, backfill is used for two main purposes: safety and environmental remediation. Depending on the mining method used, backfill provides a working surface, stabilizes stope and pillar walls, as well as the surrounding rock mass, and controls caving of stope backs. There are several benefits associated with the replacement of Portland cement in backfill, including reductions in (i) the footprint by placement of slag waste underground, (ii) the environmental effects and long term liability resulting from disposal and containment of slag waste on surface such as acid rock drainage, (iii) GHG as a result of reduced Portland cement usage (the production of 1 ton of Portland cement produces 1 ton of GHG), and (iv) the significant costs associated with reduced Portland cement usage.

May 1, 2010

By Jarek Jakubec

The new euphoria in diamond exploration brings with it a need to understand the challenges that new projects can face in different stages of the development and risks that the commercial outcomes from the new projects fall short of expectations. In many cases, the problems are related to a poor understanding of the technical risks and a failure to adequately address them during the course of investigation. Failure to evaluate all disciplines to the same level of certainty could lead to a situation where the important issues are only identified late in the project development, resulting in costly delays and financial difficulties. The diamond projects located in Canadian Arctic, with its challenging environmental, geographical, social, political and geological contexts are especially sensitive to the high variability of the outcome. This presentation highlights some of the technical aspects that could be the leading sources of risk in diamond projects and could ultimately result in inappropriate mine designs, reducing the economic outcome.

May 1, 2006

By Patrick Polk

For many years, sulfuric acid producers all over the world have been forced to meet ever more strict environmental regulations to reduce SO2 emissions. The sulfuric acid industry has implemented new solutions in order to comply with the new lower SO2 emissions target. Haldor Topsoe (Topsoe) has responded to this challenge by continuously improving the range of VK sulfuric acid catalysts and providing tailor-made catalyst solutions to meet the demands of the sulfuric acid producers for lower SO2 emissions. Reducing emissions through catalysis: requires less capital than installing a scrubber, requires no additional process chemicals, generates no waste or by-product to dispose of. In 1996 Topsoe introduced VK69, a cesium-promoted vanadium catalyst, designed for operation in the pass(es) after the intermediate absorption tower in double absorption plants. The high activity of VK69 allows for a more than 50% reduction in SO2 emissions from existing double-absorption plants. Topsoe currently has more than 110 installations of VK69. To comply with the still more stringent regulations being placed on the sulfuric acid industry to lower SO2 emissions, Topsoe has developed a new sulfuric acid catalyst designated VK-701 LEAP5™. This catalyst was introduced to the market in 2010. VK-701 LEAP5™ is based on a novel technology which circumvents the internal transport deficiencies of existing commercial sulfuric acid catalysts and thereby offers exceptionally high activity in strong, SO3 rich gases. Sulfuric acid plants have used this catalyst to meet emissions requirements lower than previously believed possible with a catalyst only solution. This paper will present examples on how to reduce emissions by implementing a tailor-made catalyst solution using VK69 and VK-701 LEAP5™.

Jan 1, 2014

By Turgut Yalcin

"Recent years have seen a resurgence of interest in flotation cell design, and one of the areas where attention is being focused is flotation in centrifugal fields which aims at increasing the flotation rates by forced bubble-particle contact.A new cycloflotation device was developed at Laurentian University and tested on the nickel ore of Falconbridge Limited in Sudbury. In comparison with conventional flotation, cycloflotation yielded at least seven times faster flotation rates in terms of the mass of solids floated per unit time per unit flotation volume, while producing concentrate grades similar to those of conventional flotation. These results, which were obtained with a bench-scale ""cyclofloat cell,"" suggest that cycloflotation has the potential of setting a new direction in flotation technology.IntroductionFroth flotation is no doubt the dominant separation technique in the mineral processing industry. Since its inception early in this century, much research effort has been and is still being expended on this process. Until recent years, emphasis seems to have been placed on the chemical aspects of flotation, but there is now an increased awareness for the need to improve flotation machine performance and more and more attention is being directed towards this area. In a 1982 article on ""Flotation Machines"" (Young 1982) it is stated that "" ... by now the design of the machines used would have reached a high level of perfection, ... In fact, this is not the case ... "".The process of flotation in a flotation device may be considered to take place in several distinct stages as follows:"

Jan 1, 1994

By C. Bazin, D. Hodouin

"A flexible model involving perfect mixers, stagnant zones, plug flow, material bypassing and recycling zones has been developed for interpreting mixing phenomena in mineral processes. The mixing properties are described by the residence time distributions which can be subsequently interpreted by the flexible model. User-friendly computer programs (for 1MB-PC or compatible) have been developed for simulation and modelling of RTDs using the proposed model. Seven mineral processing case studies are discussed in terms of experimental procedure, model calibration results and application of the estimated mixing model to process modelling, diagnosis, and performance evaluation. IntroductionIn any mineral processing plant there are continuous-flow machines that transform or separate the ore components. Grinding mills, flotation cells, conditioning and leaching tanks are examples of such machines. The performances of these vessels or reactors are controlled by the rate at which the reaction proceeds and the time spent in the environment where the reaction occurs. This paper deals with the latter aspect of mineral processes operation.Since most of the reactions occurring in mineral processing units are time dependent, knowledge of the residence time of the material in process vessels is important for modelling and diagnosis purposes. Due to the random mixing phenomena involved in the process equipment, there is a distribution of the residence time of the ore particles and the fluid in the vessel. The probability density function E(t) that a micro-element of the material flowing through a processing unit stays a time t in the vessel, is the residence time distribution (RTD) of the corresponding component."

Jan 1, 1988

By R. Mohan Srivastava

"The goal of estimation is considered in the light of decision analysis. A simple example reveals the essential elements of decision-making in the face of uncertainty. A second example shows that these elements are also key features of many mining decisions. These two examples cause us to revive an old probabilistic notion that the goal of estimation should be to quantify what is unknown. The conditional probability distribution provides the complete statement of one's uncertainty. Once the conditional probability distribution has been established, one should retain as an estimate the value which minimizes some objective loss function. A third example shows how the ""best"" estimate depends on the chosen loss function. Current practice is almost exclusively based on the least squares method, which assumes a loss function which penalizes underestimation and overestimation equally. This is unfortunate not only because symmetry is an unrealistic assumption but also because mining offers a rare opportunity to state the loss function directly in terms of profitability. Both the theoretical framework and the practical tools exist to allow us to reconsider the conventional notion of the ""best"" estimate. IntroductionThis paper looks at estimation in the mining industry from the point-of-view of decision analysis. Virtually all decisions depend on estimates since few of the important parameters are ever known exactly. In this paper we will be referring mainly to the estimation of ore grades, though the approach discussed here is generally applicable to any decision in which relevant information is uncertain.In the first section we look at a very simple example of decision-making in the face of uncertainty. We will then tum to a mining example and see that the essential features of the simple example still pertain. From these two examples it will be clear that the decision analysis approach rests on two key concepts: the conditional probability distribution and the loss function. A third example demonstrates how different loss functions produce different ""best"" estimates from the same conditional probability distribution. In the final sections we willexamine the current practice of estimation in the mining industry. Though the tools for estimating the conditional probability distribution already exist, a change in the way we think about ""best"" estimates is needed. Very little attention is presently paid to the loss function even though it is readily available in many mining applications."

Jan 1, 1987