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By A. G. Yapo, T. W. Camm

"Mining plays a key role in the development of modern civilization as a source of essential raw materials and provider of essential fuels, producer of jobs and a factor in support of the international balance of monetary payment (Camm, 2014). Professionals in mining locate, develop, design and manage ore deposits in an environmentally safe and profitable manner. As mineral deposits become increasingly scarce, new challenges face the industry. A current trend is to an increased emphasis on underground mining techniques for deeper deposits. Operations are safer now than before as companies understand better their work environment and the importance of mining responsibly.A continual challenge for the industry is accurately reflecting the costs and selling price of ore. An enduring characteristic of mining is the situation where the market typically determines the price of a commodity; the main control a company has on the bottom line is to control the cost of production.An attempt to bring light and clarity to the cost of their business will give a better idea to investors on the true profitability of the mining business. Gold producers face this struggle to accurately reflect the cost of production while also seeking to attract the interest of the investment community (Hill, 2013). In order to have a consistent format to report on their production costs, leading gold producers, through their alliance inside the World Gold Council (WGC), worked on the adoption of a new cost framework: the all-in sustaining cost (AISC) and all-in cost (AIC).Since 1996, the traditional cash cost reporting has focused only on the mining and processing costs incurred in mining an ounce of gold, which included the costs of goods sold (labor, energy, and consumables costs) and royalties (Table 1). But cash cost reporting ignores many important aspects, like sustaining capital, general and administrative expenses and site rehabilitation at the end of the mine life (Whelan, 2013). The cash cost was used to attract many investors into the business. In fact, the high gross margin (sales minus cash costs) has been promoted in past decades by the industry instead of the net or operating margin. As a result, even when the gold price was high, nearly $61/g ($1,900/oz) in August 2011, gold producers were not reporting excessive profits in their cash flow/income statements, to the disappointment and incomprehension of investors (Milstead, 2014). The truth was simply that the other costs omitted in the traditional cash cost were reducing the apparent profits.The disconnect led to a need for more accurate cost reporting in order to win back investor confidence and provide better understanding of gold mining economics. In 2012, the senior gold mining companies, including Gold Fields, Barrick Gold Corp. and Newmont Mining Corp., worked with the WGC to develop a new measure. This resulted in the June 2013 publication of the new framework AISC and AIC, which has been widely embraced by the sector since Jan. 1, 2014 (WGC, 2013).The adoption of the new cost template would have the dilemma of showing the real profitability of gold mine properties, which might alleviate taxes from governments and legislators, but it might also scare off investors toward more lucrative industries if not winning back their confidence."

Jan 9, 2017

By R. L. Summers

The tremendous engineering advances occurring during this past century are very evident within the boundaries of the Anthracite Section of AIME. The Steelton plant of Bethlehem Steel Corporation, located along the Susquehanna River just east of the Commonwealth's capital at Harrisburg, for more than 105 years has experienced a most dynamic life which has paralleled America's industrial growth. (Figure 1) In June 1865, just after the Civil War, a group of men met to organize the Pennsylvania Steel Company. The war had brought into sharp focus the vital importance of the railroads to the country's expansion. Until that time wrought iron rails were used, and the replacing of track after only several months wear had become an almost unbearable cost. The spirit of free, competitive enterprise and the prospects of a lucrative market compelled these men to form that first Pennsylvania Steel Company and to develop better rail products. They issued the following statement: "...our desire to free ourselves from dependence upon a foreign market (has) led to the organization of the Pennsylvania Steel Company, and the parties who have connected themselves with it are determined to produce upon American soil all the principal manufactures of steel that are now, at such a serious cost for freight, commission, insurance, exchange, duty, etc., and often, with so much delay and uncertainty, imported from abroad. (We) are preparing to establish near the consumer, works at which articles of accustomed pattern will be promptly produced, and from the

Jan 1, 1971

By Jack R. Miller

This session has been organized to suggest to you that the development of direct reduction is important to the iron ore mining and coal mining industries. The papers presented this morning will include a discussion of the costs of making direct reduced iron (DRI), the iron ore and coal supplies needed to produce DRI, the financing of direct reduction (DR) projects and, probably most important, the impact of the DR development on the iron ore and coal industries. For starters, this opening presentation offers a brief statement about DR practice and DRI, under the title that should surprise no one: "Direct Reduction: What Is It?" There is always the chance? that a brief statement may become long and complicated. But, by mixing some slides borrowed from Hal Lownie with a larger number of photographs accumulated from other sources, I hope to avoid such pitfalls.

Jan 1, 1978

By S. S. Mauney

Natural and synthetic colors are used in almost every facet of our daily lives as a means of communication and expression. Natural ochres, umbers, hematites, and magnetites were once used in their crude or semi-processed state for their pigment value in construction products and low-end coatings applications, while yielding, in recent years, to synthetically produced iron oxides for more sophisticated products. Today, through innovative mining, processing, and marketing techniques, natural iron oxide pigments are once again gaining strong inroads into products and markets requiring precise chemical and physical characteristics. With our focus on environmental consciousness and resource conservation, value added natural iron oxides provide an economical and responsible alternative to our color needs.

Jan 1, 1993

By Robert J. Greaves

High-resolution seismic reflection profiling can be used to evaluate detailed struc¬tural and stratigraphic features of coal pros¬pects. Since most coal prospects are relatively shallow (less than six hundred meters deep), the vertical and lateral resolution of seismic data can be significantly improved by high sampling rates in space and time. The case study present¬ed shows the effective use of seismic data in evaluation of the Wyodak coal at a prospective coal gasification site. The data were used to map the detailed structure and thickness of the coal and to search for lateral discontinuities, such as pinchouts and. faults. An important find was a paleochannel cutting across the base of the coal seam, which was later confirmed by drilling.

Jan 1, 1983

By J. H. Hill

The globalization of mineral markets and intense competition in downstream mineral-consuming industries such as transportation, agriculture, and construction are requiring raw materials suppliers to innovate, improve quality, invest in new technology, and control costs. Mineral specifications are becoming more refined, and pressure to improve products is felt from increasing numbers of competing producers, substitute materials, customers, and regulators. As a result, engineered mineral products are becoming more like manufactured ones in terms of cost structure, differentiation, and the importance of market driven, customer specific product development. Engineered mineral products are defined as those where the costs of refining and upgrading outweigh those of conventional mining activities (blasting, crushing, classification, haulage etc.), and where close control of physical and chemical parameters is required for customers' processing and manufacturing applications. This includes industrial minerals such as calcium carbonate, kaolin, mica, specialty oxides, talc, and some metal powders. It excludes most metals and bulk commodity materials such as gypsum, lime, sulfur, and soda ash. Engineered mineral products are utilized in common household goods, and are at the forefront of industrial materials engineering in plastics, ceramics, composites, glazes, coatings, and construction materials. As a group, they introduce interesting questions to the minerals firm. Advanced materials or basic? Diversify or specialize? What are the implications of advanced materials and for mineral markets, and most importantly, where can the producer look for long-term value, volume, and profits?

Jan 1, 1993

By Robert M. Dreyer

In an industrialized nation, as the process of industrialization continues, the ratio of the value of production of non-metallic to metallic minerals normally increases gradually over a period of years. For example, in the United States, the ratio of the value of production of non-metals to metals now is approximately two-to-one. Those of us who come from California like to think that we inherit the mantle of the old hard-rock miner, but the truth of the matter is that, in California, of the total value of mineral production exclusive of fuels, 97% comes from non-metallic - industrial - minerals. Since the industrial minerals furnish a principal source of raw materials for the construction and chemical processing industries and since these two industries, in industrialized nations, generally increase directly with increasing population, the future of industrial mineral production both in the United States and throughout the world is indeed bright. Because of the importance of industrial mineral production, it often surprises those of us in the industrial mineral industry to find that industrial minerals are poorly understood by many of our colleagues in the mining industry. I think that one reason for this comprehension of the industrial mineral industry is that the education of both geologists and mining engineers still markedly emphasizes exploitation of the metals.

Jan 1, 1964

By John D. Morgan

The United States is the world's most productive nation and its citizens enjoy one of the highest material standards of living of any people in the world. Materials and energy are the lifeblood of any industrialized economy. Annually the United States uses over 4 billion tons of mineral materials and fuels, or 40,000 pounds per person as detailed in Figure 1. Domestic processed materials of mineral origin and energy are valued at more than $150 billion annually, and they are derived largely from domestic sources, supplemented by imports, as detailed in Figure 2. In recent years the superior productivity of the United States has also enabled it to give food and manufactured articles to many other less fortunate nations and peoples of the earth. What then is our concern with materials at this time? Seeing the burgeoning increases in our mineral demand: from 2 billion tons in 1950, to over 4 billion tons today, and projected to 11 billion tons by 2000 - we are getting questions concerning our ability to continue to increase production sufficiently for the future.

Jan 1, 1974

By K. Zhang

Real option value (ROV) method is considered to be more practical and advanced compared to net present value (NPV) method in evaluating a mining project, in particularly when there is substantial uncertainty in the commodity market as well as possible operational flexibility embedded in the project. Usually, it may take months or even years for the commodity product to be available in the market after the mining activation decision is made. The impacts of postponing the delivery of commodity product on the mine?s ROV and NPV are assessed based on the proposed real option method. Postponing the delivery of the products leads to declined NPV and ROV compared to the non-postponing scenario and extended postpone results in higher lost values in NPV and ROV. For a mine with lower mining cost, by postponing the delivery, the exercising threshold of commodity price is lower because the mine owner anticipates that commodity price may rise during the time of postponing. A mine with higher mining cost requires a higher exercising price threshold to ?lock up? the profit when there is ambiguity of market situation due to the postponing of the delivery.

Feb 23, 2014

By J. Iannicelli

Kaolin, normally an inert filler when compounded with polymers, is converted into a strongly reinforcing pigment by prereaction with certain functional silanes. Modification of kaolin with amino and mercapto silanes allows it to form crosslinks and confers significant improvements in modulus, abrasion resistance, compression set and other physical properties of a broad range of polymers.

Jan 1, 1990

By Paul J. Henkels

Synthetic gypsum is the calcium sulfate co-product of a number of industrial processes. Synthetic gypsum utilization as an alternative to the naturally occurring mineral continues to grow in the gypsum industry. In particular, flue gas desulfurization (FGD) gypsum produced by the electrical utility industry has had a significant impact and a far-reaching effect on the gypsum wallboard manufacturing industry. This paper will discuss the various synthetic gypsum sources verses natural gypsum and highlight issues of use in gypsum wallboard and related products.

Jan 1, 1999

Mining is big business in Ontario. The province is Canada?s leading mining region. It consistently ranks among the top 10 jurisdictions worldwide for exploration spending, reaching about C$1 billion in 2011. More than 26 percent of all exploration and appraisal dollars spent in Canada are invested in Ontario. Minerals produced include nickel, copper, platinum group elements (PGE), cobalt, zinc, diamonds, gold and silver. It was reported that there are more than 600 mining exploration projects in the province. And, recent discoveries of chromite in northern Ontario?s Ring of Fire will add to the province?s mineral production in the coming years.

Jan 1, 2013

By T. M. Biddle

If an accident occurs at a mine, the mining company, its parent and affiliates, and its supervisory employees may face substantial -- and sometimes unexpected -- liabilities and costs. This presentation surveys the likely sources for post-accident exposure, including wrongful death and personal injury claims, mine closure/operational disruptions, and government civil and criminal actions against the company and its employees.

Jan 1, 1986

By H. M. Park

Risk is a major factor in all mining activities, arising from many internal and external variables. The authors? research has resulted in a systematic method for the quantification of risk in mining projects (Park, 2012). This research will be presented in a series of papers, this one and two more that will be published on Mining Engineering?s web site, www.me.smenet.com. This paper identifies the variables associated with risk in mining projects, and their effects. The second paper discusses methods of assessing the overall risk associated with those variables, and presents a statistical model based on a survey of 31 experts. The third paper presents an evaluation of the statistical model, using data from previous mining investment decisions in which the authors have been involved. There are several major competing entities, including BHP Billiton, Rio Tinto, Anglo American, Xstrata, Freeport-McMoRan, Chinese government- run companies and Japanese trading companies, that have large foreign holdings, controlling deposits in most of the world?s established and productive mining districts. In general, the mining industry considers the United States, Canada, Australia and the European countries to have good mining investment environments, but because the major companies have already achieved market dominance in those countries, large investments are required there. Newcomers seeking to enter the industry, either as producing companies or as investing partners, often have difficulty breaking into these established markets. Thus newcomers are increasingly turning to new areas like South America and Africa, which are relatively less developed. The competition among businesses to secure a share of the new market is intense, but there are still good investment opportunities. However, because most of the countries in these areas are not well developed, several additional risks are associated with participation in mining projects in those areas.

Oct 1, 2013

By J. W. Parkinson

With most of the coal currently mined in the eastern U.S. already requiring cleaning to meet electric utility coal specifications, the question remains how medium- and high-sulfur coal producers will provide the even better quality coal expected to be demanded if pending acid rain legislation is enacted. One emerging approach is to crush the coal to liberate additional ash and sulfur so that better quality coal can be produced at equal yields. This paper discusses how to measure liberation. the premiums the utility market is willing to pay for lower sulfur coal, and a staged middlings crushing scheme that promises the benefits of total raw coal crushing but at lower costs. For some coals, cautious application of liberation concepts may be the only way to produce a product that can be quality and cost competitive in the future utility coal market.

Jan 1, 1988

By J. Gibson

"INTRODUCTION As one of the most pressing and important political debates of this century, climate change has captured global attention and is forcing governments to take action towards decreasing GHG and carbon emission levels below what was previously thought to be necessary. With the ever-increasing price of diesel fuel accompanied by the popular topic of carbon taxes and greenhouse gas emissions, the mining industry is looking to industry specialists for assistance. The benefits of a no-idle policy reach far beyond carbon reduction and fuel savings, ranging from decreased maintenance to increased engine life. With products like battery powered A/C systems and diesel-fired heaters, going no-idle is easier today than ever before. With both systems being manufactured to withstand the harsh environments of the mining industry, the end user will see a seamless change from conventional, inefficient belt-driven systems to future, stand-alone mobile equipment HVAC. THE HISTORY OF GHGS AND CLIMATE CHANGE In 1896 Svante Arrhenius first claimed that the combustion of fossil fuels may eventually result in enhanced global warming, but not until 1955 did Gilbert Plass draw global attention to global warming by summarizing that adding carbon dioxide to the atmosphere would intercept infrared radiation and thus warm the earth. Then in the early 1960’s Charles Keeling developed modern technology to produce concentration curves for atmospheric CO2 (Figure 1). In 1988 the Intergovernmental Panel on Climate Change (IPCC) was founded by the United Nations after acknowledgement of a rising global annual temperature. The IPCC consists of over 2500 scientific and technical experts from more than 60 countries, and because climate change could not be solved by a single country, the Kyoto Protocol was negotiated in 1998 requiring all participating countries to reduce their GHG emissions by at least 5% from the 1990 levels. The Protocol was signed by 186 countries in 2001 (since then several countries have retreated from the agreement, including the United States)."

Jan 1, 2015

By David L. Hill

Newmont Gold Company's Mill No. 4 is located along the Carlin trend, about 25 miles North of Carlin, Nevada. The plant consists of a primary grinding circuit using a 7.2 m (22 ft) diameter by 2.6 m (8 ft) long semi-autogenous mill along with a 2.3 m (7 ft) diameter cone crusher. Secondary grinding is performed in a 4.8 m (14.5 ft) diameter by 9.2 m (28 ft) long overflow ball mill in closed circuit with a set of 66 cm (26 in) diameter cyclones. The ground product is fed to a typical carbon-in-leach gold leach circuit. The grinding/crushing circuit operation and control scheme are the topics of this paper.

Jan 1, 1993

By B. Schimm

Improve the mines productivity by simplifying the mining process, for these tasks the Wirtgen Surface Miner offers an attractive alternative. Surface Miners cut, crush and load material in one operation with only one machine. The cutting depth is controlled exactly.

Jan 1, 1997

By R. Adams

Zirconium is the 20th most abundant element in the Earth?s crust and it most often occurs in the form of silicate (as zircon), less often in the oxide form (as baddeleyite or caldesite). Historically, the world?s production of zircon was entirely derived from mining and processing beach sands or heavy mineral sands that were being exploited primarily for their titanium content, i.e., to generate TiO2 feedstocks that would be used for making titanium pigments and, to a lesser extent, titanium metal. Zircon was then regarded as a byproduct, with the sharply fluctuating prices typical of a commodity where the supply is essentially involuntary and not truly responsive to market demand. However, in recent years, zircon has shown considerable mining investment appeal in its own right. Projects have been planned ? and some have already come to fruition ? based mainly on the zircon potential of the deposit. Booming Chinese demand for zircon to meet the requirements of the ceramic and zirconium chemical sectors has been a major factor causing zircon prices (f.o.b. Australia) to surge from US$674/t ($611/st) at [ ] the end of 2005 to beyond US$2,400/t ($2,177/st) by the end of 2011.

Jan 1, 2012

By William Gleason

"Caterpillar is the largest manufacturer of mining equipment in the world. In hundreds of surface mines around the globe, Caterpillar’s flagship 793 haul trucks can be found moving material for copper, coal, gold, iron ore and other mines. Likewise, its iconic yellow bulldozers are at mine sites the world over — the company recently announced the sale of its 40,000th large dozer. And since its acquisition of Bucyrus in 2011, Caterpillar has positioned itself to become a worldwide leader in the underground mining sector as well.But don’t think that the company is resting on its reputation. As evidence of its commitment to the global mining sector, as well as its confidence in the future of mining, Caterpillar invited mining trade press, including Mining Engineering, to its Tinaja Hills Training Center near Tucson, AZ in November to introduce the latest editions to its mining portfolio. The two-day event focused mostly on the newest electric drive haul trucks, the Cat 796 AC, which will operate in the 326-t (360-st) class, and the 798 AC in the 360 t (400 st) weight class.Caterpillar representatives also spoke about new offerings in the underground space as well as the newest version of the D11 large dozer.“It has been 10 years since we launched the F Series,” Jean Savage, Caterpillar’s vice president, surface mining and technology said. “Since then, we have been on a journey to serve our mining customers and we wanted to have trucks in every application. Today, we are launching two new trucks that will allow us to fill out our portfolio.”While Caterpillar previously offered the broadest range of off-highway haul trucks to the mining industry, it was noticeably absent from the 326-t (360- st) and 360-t (400-st) weight classes."

Dec 1, 2018