Search Documents

By A. M. Whiting

Competition for coal producers and their primary customers has constantly increased during recent years. The effects of the Clean Air Act Amendments of 1990 on the electric utility industry, coupled with the normal complexities of coal production, quality control, transportation and contracting techniques have spurred both buyers and sellers to increase their level of sophistication. This paper will review the basic aspects of the U.S. coal business and explore the commercial approaches which have proven to be most successful.

Jan 1, 1994

By William Ives

My presentation is from the viewpoint of the industrial mineral geologist, which is a relatively rare breed. Very few geologists become involved with industrial minerals for two reasons, I think: (1) Much of the industry utilizing non-metallic minerals has developed without the use of geologists in the begin¬ning and many of the management people, who generally derive from the processing plant supervision, tend to take raw materials for granted; and (2) non-metallic minerals are a very insignificant part of the curriculum of virtually all colleges granting a geology degree. One learns about the geology of industrial minerals by working with it. This "on-the-job-training" is probably best because it brings the geologist into close quarters with the production people and the production process. And the industrial minerals field has a distinctiveness when compared with the petroleum or metal mining field in that each deposit can yield a material differing in some aspect from that in any other or within the same deposit. The petroleum from a well in a given field will be similar to that from any other well, but a limestone on one side of a hill can differ signifi¬cantly in elemental composition, calcinability, soundness, specific gravity, or some other factor from the same ledge on the other side of the hill. This characteristic of almost certain variability creates problems sooner or later and provides for much of the employment of industrial mineral geologists. My job seen from the viewpoint of management is "Find us some rock we can extract and process at a profit." The industrial non-metallic geologist has much the same problems and approach as a detective. I do not mean the TV variety with the big mouths and the unfailing knack of spotting the wanted criminal immediately in a city of ten million people. Any real detective will tell you it takes leg-work, knowhow, and persistence to make a case. The same is true for the geologist who finds rock which can be quarried at a profit. I am responsible for finding raw materials for a company which manufactures portland cement and

Jan 1, 1977

By Wi11iam I. Rau

In the recent past, there have been numerous projections of the capital requirements for additional mine and processing capacities required to meet projected non-Communist World demand for minerals during the next 15 years. A consensus judgment would place this currently at $14 billion per year, with the largest expenditures required for increases in aluminum and copper production. Until the early 1960's, internally-generated funds were used to finance nearly all of the large mining companies' capital requirements. Since that time, however, the enormous rise in capital costs per ton of capacity, accompanied by a relative stagnation in the financial condition of many of the major mining companies, have caused the industry to begin to rely on external sources for financing expansion, most notably, project financing from commercial banks and institutional lenders. Seven years ago, it was estimated that, in the five-year period 1972-1976,75% of the total capital requirements of $10 billion per year would come from internally-generated funds, with the balance to be provided by external sources. l There is little doubt that, in the coming decade, the percentage provided by external sources will increase. There should be little difficulty in attracting the necessary investment within the U.S., particularly in view of the expected continuation of companies in diverse industries seeking mineral investment opportunities. The more serious question lies in the availability of internal and external sources of funds for the expansion of mine and smelting capacity in the developing countries. Recently, R. F. Mikesell projected an average annual investment of $4.7 billion (in 1977 prices) over the 1977-1990 period would be required from foreign sources to expand metal producing capacity in developing countries. Mikesell concluded that external financing of mining projects in the developing world has averaged less than $1 billion per year over the past five years, thereby requiring more than a quadru1ling of this financing over the next decade.

Jan 1, 1978

By Dan Eyde

Low levels of thallium were detected in the mine water drainages, and process water discharges of western mining and smelting operations. This required remediation under state regulatory standards, which allow discharges of no more than .0017 ppm thallium in mine water discharges. Influent streams containing thallium can be mitigated to state discharge standards after a single pass through the series of fluidized upflow columns. Test work to determine the optimal flow rates used pilot scale systems at two separate locations treating 5 - 25 gpm of effluent. The test system at the gold mine mimics the full-scale system, which will be based on the existing upflow carbon tanks that have been converted to zeolite columns. The system installed at ASARCO's East Helena smelter has a far more complex influent stream with a high loading of competing cations. Nevertheless the columns filled with CABSORB® are successfully mitigating the thallium contamination. CABSORB® ZS500RW is a product based on the sodium analog of the zeolite mineral chabazite named herschelite.

Jan 1, 1998

By T. Faulkner, S. A. Richards

"Classic engineering economics provides the mining engineer with a fundamental approach to choosing between capital spending alternatives. This approach has been heavily used over the years and is an accepted technique for most investment decisions. There is a shortcoming that I have run into over the 15 year period when I worked in business planning roles. The classic time value of money approaches such as Net Present Value, Return on Investment, and Internal Rate of Return provide good estimates, but the input assumptions may fall short of describing the real material differences required by these analysis techniques. If the cost benefit analysis is defined solely on the improvement of the item being replaced or improved, the true profitability of the decision may be overestimated. Productivity improvement based capital projects can yield more accurate forecasts when conducted in concert with a “bottleneck analysis”. INTRODUCTION A review of the Theory of Constraints, (Goldratt, Cox, 1984) Lean, (Womack, 2003) (Rattner, 2006) and Six Sigma (Cryger, DeFeo 2015) lead us to recognize that these process improvement methodologies are oriented to the manufacturing process. These systems generally involve a factory that the material moves through on the way to becoming a final product. The mining challenge has many similarities to manufacturing once the ore has been won and made ready for processing. Before that point, however, the process is somewhat inverted while the ore is being won. Instead of the material moving through the factory, the factory is moving through the material. The Theory of Constraints (TOC) was used in an underground context by Baafi, Cai and Porter at 2015 APCOM, but even this groups’ analysis did not carry the concept from mining to shipping of the final product. There can be spatially distributed data that can affect the mining throughput constraints, some of which can be determined from exploration results. Identifying constraints can lead us to mapping productivity bottlenecks on future mining. Knowing this may improve decision making by eliminating one of Jim Fishbein’s three deadly sins of strategic planning: incomplete planning. When evaluating capital investment alternatives you should evaluate the impact of any proposed improvements on the entire operation. At the core of any mining system is the materials handling system. This can be typically expressed as the system that handles the raw material from the “face” through processing and then handling the finished product as well as the waste material. A “Bottleneck Analysis” is an investigation into the factors limiting a material handling system’s productivity (Goldratt, Cox, 1984). Mining material handling systems are usually composed of several linked components such as draglines, shovels, loaders, hydraulic excavators, continuous miners, longwalls, highwall miners, bucket wheel excavators, LHDs, feeders, conveyor belts, stockpiles, crushers, processing plants with various circuits, and waste handling systems. Each of the aforementioned components has a slightly different throughput capacity. When these are linked in series, the one with the lowest throughput capacity limits all of the others, creating the bottleneck for the system. Every material handling system has a bottleneck. In the mining environment, a subtle, but very significant phenomenon may also occur. The bottleneck may change as a result of a change in the raw feed qualities, face recession, overburden depth, digability, learning curve, and many others factors which may be derived from the drillhole data. These parameters often change as a function of the location in the reserve base, and may also vary with time."

Jan 1, 2016

By L. B. Phelps

This paper focuses on the use of an integrated mine planing software package entitled "REMINE" which was constructed to provide a project evaluation tool for analysis of remining projects. Coal remining constitutes the affecting of sites which have had a past history of mining and have a pre-existing pollutional discharge. Such sites require a Best Professional Judgement (BPJ) analysis. The program was written to provide such an analysis with flexibility in the mine plans which can be analyzed. The process required for a BPJ analysis will be detailed and mine plan simulation performed to demonstrate the analysis.

Jan 1, 1990

By J. Hilgers

Metal prices are often predicted by relying on time trend projections of various economic indicators or even the trend in price itself Thus, time is the underlying explanatory variable acting through at best, a limited selection of economic variables. The price prediction method described in this paper differs from this by analyzing hundreds of economic variables to develop a few principle components that automatically capture the fundamental changes in the economy and delete duplicate or irrelevant information. This leaves a few principle variables to describe a state-space representation of the economy which can then be used for prediction. Forecasts of the price of a metal are then made based on these principle variables.

Jan 1, 1995

By S. N. Chadha

INTRODUCTION The work described here refers to the Genesee River Interceptor Southeast Project. This project is a part of the Combined Sewer Overflow Abatement Program, Phase I, for the Rochester Pure Water District, Rochester, New York. Our contract required the design of a 13,200-feet long main tunnel, 14 feet finished diameter, approximately 100-120 Feet below ground; drop shafts and diversion tunnels to deliver surface flow to the main tunnel; a gate chamber whereby the main tunnel is dropped 35 feet, and provision made for connection to the future tunnel in Phase II, as well as a host of other surface structures. Cross sectional dimensions for the structures involved varied from 16 feet circular to a 20'x50' horseshoe, in a competent rock formation consisting of Lockport Dolomite and Rochester Shale. In the construction of a rock tunnel, the problems of the tunnel designers are as follows: 1. To evaluate stresses in the rock as a result of excavation. 2. Design a temporary support system to prevent any rock failure during the period of construction. Design of this temporary support system is empirical. Design loads given by empirical relations are dependent upon the rock quality and size of opening. Temporary support system may either be steel frames closely spaced along the length of tunnel and tied together, in the case of poor rock, or, an even spacing of rock bolts in the case of competent rock. 3. Design a final lining for the service loads. Service loads, in our case of a water-carrying tunnel, are hydrostatic pressure due to ground water, deadweight of lining) pressure of contained water and time dependent rock loading. The constitutive properties of the rock are extremely complex because of discontinuities, pre-existing stresses due to overburden, material symmetries and changes of initial state associated with the process of excavation. The changes of initial state may be changes of stress fields along with the consequent yield of the material or the extension of existing discontinuities.

Jan 1, 1977

By G. W. Toth

The coal mining cost models described in this paper represent a computerized estimating procedure for analyzing mining costs and requirements of proposed coal mining projects. Both surface and underground mining analyses can be conducted through the use of these models. These models were developed by the NUS Corporation for the Electric Power Research Institute (EPRI). The methodology design of the cost models follows a process engineering approach for determining mining requirements and costs similar to the logic typically employed in preliminary mine feasibility studies. All capital and operating costs associated with a new coal mining project are thereby estimated. The results of these analyses are then entered into a financial analysis framework which computes annual cash flow summaries, utilizing a profit and loss statement approach, to solve for either the coal value/ton (minimum required selling price) or the rate of return on equity for the project. The coal value/ton is also referred to as the economic cost of production (F .O . B. mine, including preparation).

Jan 1, 1980

By Landy Stinnett

"When performing a valuation of a mineral property, a developing mine or perhaps an ongoing operation, the appraiser is typically provided with a range of information prepared by the property owner. This information can include ownership records, geological interpretation, assay data, an estimate of the reserves or resources believed to be on site (tons and grade), mine plans, production forecasts, capital and operating cost projections, and so forth.The appraiser familiarizes himself with the data, analyzes the various reports and then prepares the appraisal. There is usually a site visit, and there may be some effort at comparison of the particular mineral deposit with others in the region or with those of similar depositional characteristics, but for the most part, the appraiser is relying on the corporate documents, tempered by his/her experience in the field. Time is usually of the essence, the cost for the assignment has been trimmed, and therefore independent verification of the various components comprising the underlying data base (legal review, redrilling portions of the deposit, collection of new samples, re-assaying, etc.) is unlikely in most situations.In the case of high-value commodities — gold, silver, diamonds, perhaps the platinum-group elements — there have been numerous examples of the property owners attempting to increase the value of their holdings by nefarious methods. Most of these involve salting the deposit in some fashion; i.e., introducing small amounts of the commodity into samples being sent to a laboratory for analysis so that the resultant assay shows a higher grade (Donaldson, 2002; Greeley, 2001; Lechler et al., 2008 and Meech, 2001). Other schemes to enhance the apparent worth of a property include the use of nonstandard assay procedures, incorrect handling or withholding of the underlying information, and false reporting."

Sep 1, 2016

By C. Y. Haas

Of all the industrial clay minerals, attapulgite probably enjoys the widest variety of applications. A review published over three years ago by Haden and Schwint (18) cited some 80 individual uses, a list which continues to grow. In its near half-century of commercial life, attapulgite has received a generous share of research study and patent development effort, both on the part of producers as well as consumers. This work has been divided between understanding the mineral's structure or properties and applying it to specific end-uses. Naturally, information gained from the former has pointed toward opportunities in the latter. References of particular significance are cited throughout the text. Attapulgite's variety of uses derives from the unique three-dimensional structure and needle-shaped particle form of this crystalline hydrated magnesium aluminum silicate. Its inherent colloidal and sorptive properties are well known, and distinguish it from its sister clay minerals. Attapulgite is characterized by its high surface area, porosity, sorptivity, and decolorizing power. Its slips or slurries are viscous and thixotropic, however, unlike bentonite are not flocculated by electrolytes. In Table I are compared the general properties of attapulgite, bentonite, and kaolin. The properties in Table I are documented in greater detail by the wealth of scientific literature which has been published on the composition (14)(15), structure (6)(16), surface (16)(4)(22)(24), adsorption (31)(4)(5)(25), rheology (10-11)(12)(13)(26)(27)(32), plasticity (30) (31), and chemistry (23)(3)(7) of attapulgite. Attapulgite is the principal mineral constituent (70 to 80%) of attapulgite clay as it is commercially produced in the Georgia-Florida area of the United States. As mined, this clay also contains 10 to 1S% montmorillonite, sepiolite, and other clays; 4 to 8% quartz, and 1 to 5% calcite or dolomite. (18) During processing, non-clay fractions are removed so that commercial products are enriched to 85 to 90% attapulgite. By wet processing (such as practiced in the

Jan 1, 1971

By L. B. Gittinger

Mr, Chairman, members- and guests of the AIMS, I greatly appreciate this opportunity to speak before you. I hope this is just the beginning of a long and mutually beneficial relationship. This winter I decided to join the other 36 Freeporters who belong to the AIME; and, I applied for membership in the Society of Mining Engineers. To queries as to my interests in the Society, I had this answer: our principal challenge -- more so today, than at any time in my nearly 25 years in the industry -- is discovery and development of new sources of raw materials. I want to join you in meeting this challenge.

Jan 1, 1966

By Ehsan Moosavi, Kamyar Tolouei

In open-pit mines, the long-term production scheduling optimization problem (LTPSOP) is a complicated problem that contains constraints, large datasets and uncertainties. Due to its dimensions and NP-hard nature, it is usually difficult to find an ideal solution to the LTPSOP. The optimal schedule generally restricts the ore, metal and waste tonnages, average grades, and cash flows of each period. In this paper, to synthesize grade uncertainty into the strategic schedule, a stochastic integer programming (SIP) framework is presented to LTPSOP. The objective function of the SIP model is to maximize the net present value and minimize the risk of deviation from the production targets considering grade uncertainty simultaneously while satisfying all technical constraints and operational requirements. Instead of applying one estimated orebody model as input to optimize the production schedule, a set of equally probable orebody realizations is applied to synthesize grade uncertainty in the strategic schedule and produce a more profitable and riskbased production schedule. To solve the LTPSOP, the hybrid approach with the augmented Lagrangian relaxation method, the Harris Hawks optimization, the Random Forest method and Monte Carlo method was proposed. To indicate the applicability of the model, a case study on a gold mine was implemented. The framework displays the capability to minimize risk and improvement in the expected net present value and financial profitability .

Jun 25, 2023

By Matthew T. Mowry

As the mining industry continues to hire young professionals to supplant the growing number of retirees, a well-developed engineering curriculum, coupled with practical, real-world training, can prepare mining engineering graduates to make meaningful contributions in the industry. Successful companies can be measured not only by their reserve base and annual production but also by their retention of mining engineering graduates with zero to five years of operational experience. My personal experience in the industry during the last five years has been varied and rewarding. The knowledge and experience I have gained have taught me valuable lessons that prepared me for my current role.

Nov 1, 2013

By T. Lupek, S. Plaum

"The execution of classical building services in underground mining operations is more truth than myth. From small concrete foundations for conveyor belts to the construction of huge workshops for large machinery maintenance, nearly every operation requires building services. By creating such fixed facilities, these services ensure the efficiency of the production. A distinction must be made between fixed facilities which directly enable the production and auxiliary facilities which only indirectly support the production. The construction costs of such auxiliary facilities are often roughly estimated because they do not immediately contribute to mineral extraction. The research project ‘Development of a systematic cost-calculation method for building services in underground mines’ seeks to address the question: ‘Can the construction costs concerning fixed auxiliary facilities be neglected e.g. within a prefeasibility study?’ The presentation will show the monetary relevance and significance of these auxiliary facilities and introduce a guideline for cost estimators. PROBLEM DEFINITION The overriding interest of an underground mining operator is to exploit the commodity with the maximal quality by minimum cost and time expenditure. If a new operation shall be installed, it has to promise profitability. Therefore, predictive economic feasibility studies are performed in advance of installation. Herein, all cost expenditure for installation and operation of the future underground mine is determined and compared to the expected income by selling the raw material. The described interest of the mining operator is the starting point of the research project ‘Development of a systematic cost-calculation method for building services in underground mines’. While economic feasibility studies for future operations are focused on the profitable exploitation of raw materials and the efficiency of the accompanying necessary production processes, auxiliary actions are only considered rudimentary. Necessary production processes, as well as auxiliary actions regularly require classical building services, which are normally performed in construction business on the surface in the same manner. By performing building services like masonry or concrete works in underground mines, fixed facilities shall be set up in order to enable or support the raw material production. Production enabling fixed facilities are varying from small concrete foundations for conveyor belts or other infrastructural elements to upstream processing plants situated in the mine workings. While such fixed facilities are essential parts of the production process chain, supporting facilities underground shall increase the efficiency of the mining operation. Workshops, control rooms and social installations are only a few examples for supporting facilities. Those could be situated on the surface as well, but the efficiency increases significantly by installing them underground. Especially supporting facilities are evading from the main interest of the mine operator, since they are only indirectly connected to the production process. The building costs are oftentimes only roughly assumed."

Jan 1, 2017

By F. Alsobrook

Industrial minerals are receiving increased attention by metals, coal and other companies seeking to diversify and stabilize earnings. Each industrial mineral has a unique set (and sub-sets) of business dynamics, however, and the diversity can present a bewildering maze to the corporate planner. Shrugging off this complexity and relying on serendipity for entry opportunities often results in unsuitable acquisitions. An effective alternative used in exploration can also be applied to strategic planning. By providing focus and direction, this flexible methodology can prevent wasting corporate resources on random pursuits and result in a quicker, more satisfactory achievement of diversification goals.

Jan 1, 1990

By H. S. Ten Eyck

The major underlying threat to man's successful survival and happy existence on this planet is our own prolification. This poses an even greater threat to the future of civilization than continued wars and even "The Bomb" itself. Just the predictions of the world's population trend are awesome and demand our serious thought. This trend has been given the now well-known term, "The Population Explosion" - and this is literally what is taking place throughout most of the countries around the globe. Today, the world's resources support approximately 3.3 billion people. Based on the present world population growth rate of 2.1 percent, there will be another 65, million just one year from today. Such an increase in one year means that the world will add a greater population than that of Mexico and Canada combined. Projecting at this remarkable, but unchecked, growth rate, 6.7 billion people will be competing for survival by the end of this century.

Jan 1, 1966

By Harry Teicher

The subject of Specialty Silica Products could encompass a broad range of materials, some of which would be familiar to members of the Society of Mining Engineers. With the concurrence of your chairman, I have chosen to limit my remarks to synthetic materials, not including such siliceous materials as diatomaceous earth, asbestos, quartz and clays. For purposes of discussion, I have classified Specialty Silica Products into two groups -- powders and liquids -- which I will discuss in that order and which are categorized in Figure 1. The synthetic silica powders are amorphous to x-rays and are manufactured by various processes resulting in products of a wide range of physical and chemical properties, as well as functional performance and applications. Applications or functional properties are generally dependent upon such physical properties as micron-sized particles exhibiting large surface areas per unit weight and low apparent bulk density. Their presence in various systems modify surface properties. As summarized in Figure 2, they act as viscosity modifiers, flow conditioning agents, anti-slip agents, anti-blocking agents, flatting agents in surface coatings, reinforcing agents in polymers such as silicone rubber and numerous other applications. Although the various types of silicas exhibit various levels of functional performance in these end uses, they are not usually equally effective as direct replacements and I will briefly discuss the various types of materials.

Jan 1, 1974

By B. Morris

This presentation will describe the process by which the Quebrada Blanca (QB) copper project in northern Chile was financed. It will also show how a relatively junior mining company addressed the problems created by its inability to provide its share of the equity funding and the guarantees required by the project lenders. QB is located in the semi-arid Andean highlands of northern Chile, 170 kilometres southeast of the port of Iquique and 30 kilometres west of the border with Bolivia, at an altitude of about 4,300 metres (14,000 feet). Figure 1 depicts the project's location. The QB orebody is a secondarily enriched porphyry copper deposit containing reserves of 85 million metric tons grading 1.3 percent copper. Underlying the enriched zone is a significant primary ore zone containing several hundred million metric tons grading about 0.5 percent copper. In the late seventies and early eighties Falconbridge and its affiliates spent $20-30 million dollars exploring the deposit and conducting feasibility studies. For a variety of reasons they decided not to develop the property which was returned to its owners, Empresa Nacional de Mineria (ENAMI), which is a Chilean state mining corporation. In 1988 ENAMI announced its intention to privatize the property through a public bidding procedure.

Jan 1, 1993

By Mauricio Brücher, Juan Camus

This article deals with open pit mine planning and a computer technology known as Direct Block Scheduling, or “DBS”. This is an emerging technology for modeling mine exploitation strategies using mixed-integer linear programming. This technique has proved to yield stronger economic results compared to the Lerchs-Grossmann (“LG”) algorithm currently used at the beginning of the mine planning process. The article briefly describes the shortcomings of current practice; then, this delves into the superior results obtained by DBS technology compared to current practice. Finally, the article argues that results achieve so far by DBS could be enhanced even further. To do this, the framework to apply this emerging technology, which is also used in current practice, should be modified to better exploit the capabilities of DBS technology. To better understand this change, an illustrated case study is presented at the end of the article.

Jun 25, 2023