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By T. G. Carter

"Tremendous progress has been made in recent years towards developing computational tools that allow ready solution of most common rock engineering problems, with amongst the most advanced of the tools focusing on evaluating engineered openings within Synthetic Rock Masses. These new codes have the potential to allow much more realistic design, but they must not be used without careful calibration – prior to – during and – post completion of any modelling. This paper explores some of the pitfalls of inadequate data collection and suggests more emphasis be given to calibration. Guidelines for minimum levels of parameter data are suggested for improving application of basic to sophisticated modelling codes.INTRODUCTION & BACKGROUNDTremendous progress has been made in recent years towards developing computational tools that allow ready solution of most common rock engineering problems. The degree of sophistication now possible with some of the available codes allows one to tackle extremely complex problems that were not thought tractable even a decade ago. Indeed, generation of synthetic numerical rock masses, based on discrete fracture network representations that closely mimic actual rock mass conditions, such as are shown in Figure 1, is today relatively straightforward, and not as user-challenging as employing state-of-the-art codes of even a few decades ago. This is largely because major improvements in computer graphics and in availability of ready-made user-friendly input-output interfaces have paralleled development of these new codes, now in some cases outpacing actual new analytical/procedure developments. This is something of a reversal from the first few decades of DOS-based rock engineering computational experience, when only rudimentary graphics were available and user-friendly input-output interfaces were virtually non-existent."

Jan 1, 2015

By Alvinus Brown Wood

THE ancient copper-mines of Lake Superior, having been destroyed or covered by-modern mining-dumps, are not accessible to the present inhabitants of that region, and, since no more are likely to be found, some account of those already discovered, from one who has seen them, may be acceptable to the Institute. Early in May, 1855, 1 took a party of men to open an ancient pit on the Quincy mine-location. Mr. C. C. Douglas was the Agent.," as mine-managers were then called on Lake Superior. The Quincy Co. had previously done work on a fissure-vein, several hundred feet west of the Amygdaloid lode (afterwards called the Pewabic lode), on which was the ancient pit herein described. It was at this pit that the Quincy' main shaft was subsequently stink. The ancient pit showed an apparent depth of about 4 ft., but when cleaned out it was shown to be 14 ft. deep, having been filled up by the sliding-in of material composed largely of broken rock, taken out in sinking the ancient shaft, and left near its mouth. Midway of the shaft, and below water-level, was found a scaffolding, of white-birch poles,- which had been used as a landing, to assist in removing the excavated rock. The shaft was 7 ft. in diameter. The excavation had been done by first building fires in order to disintegrate the rock, as was proved by the abundance of charcoal found; then breaking the softened rock with hammers of diorite, such as is found in the greenstone range on Keweenaw point. These hammers had about. the size of large paving-stones. Only broken ones were found, the whole ones having been doubtless carried away for other work, such as could be traced on the lode for a hundred feet or more to the south. At the place where this shaft was stink, barrel-copper (i.e.,

Mar 1, 1906

By P. Klossek

It is estimated that China accounts for 94% of the world supply of rare earths (Roskill, 2011). This fact, together with the impact of China?s export policy, poses a substantial risk to the security of the rare earth supply as well as a rare earth price risk. This situation has motivated an increase in the number of rare earth projects under development, i.e., there are currently more than 440 worldwide (Technology Metals Research, 2012). However, economically and environmentally acceptable processing technology to produce tradable products from rare earths (e.g., separated rare earth oxides) is not freely available on the market at the moment. In this respect, a lot of research and development has been initiated on this topic, in academia as well as in industry. Using a proprietary model and scenario-based analysis, we studied the impact that the development of rare earth processing technologies would have on the rare earth market and the economic feasibility of rare earth projects mentioned before. The analysis showed that this impact varies depending on the technology type (e.g., technology can affect project production volume, cost structure or both) and the legal context of the invention (e.g., free or limited by patenting availability of a new technology). The effect of a technology which influences project production volume is not the same as of a technology which changes project cost structure. The impact of a patented processing technology differs from the impact of a processing technology which is freely available on the market. In the case of a new technology which is limited by patenting, its impact depends on the market position (?producing?, ?next-coming?, or ?not producing? project) of the patent holder. The paper contributes to existing research by studying the dependence of the expected micro- and macroeconomic impact of rare earth processing technology developments on the properties of a new technology (e.g., costs, legal framework etc.). By this means, the paper adds to existing knowledge and attempts to make the rare earths market more transparent and predictable from a perspective outside China.

Aug 1, 2013

By R. L. Guerguerian

Nowadays, most grinding mills driven by a wrap-around ring motor are operating successfully. Some of the earlier problems could be attributed to the lateral stiffness and stability of their bearings. As a result, modifications to the bearings included the rearrangement of the shoes, or the addition of more shoes, closer to the horizontal centerline. This technical paper reports a study of the effects of bearings on the lateral stiffness of grinding mills driven by a wrap-around ring motor. The discussions cover the design of the four shoe trunnion bearings and examine the effects of the angular location of the shoes.

Jan 1, 2000

By K. Fagerlund

Methods for simulation of settler reactions, matte-slag separation and matte settling in copper flash smelting have been examined. The reaction, separation and settling phenomena of slightly oxidized chalcopyrite samples and cuprous sulfide-magnetite mixtures in fayalite type slags were examined at about 1300°C under inert atmosphere. Two methods based on introduction of molten samples of oxidized chalcopyrite concentrates or synthetic matte-magnetite mixtures onto the surface of molten iron silicate slag were tested. In the first method the samples were water quenched and polished specimens were studied and analysed using light optical microscope, scanning electron microscope, energy dispersive spectrometer. In the second method processes taking place after the introduction of samples onto the slag are followed "in situ" using X-ray transmission image monitoring. Great differences were observed in separation and settling behaviour of low and high grade copper mattes produced as a results of interaction of initial samples and slag.

Jan 1, 1997

By Peter Cammack

Where raw coal from a mine is treated in dense medium separators ash in the washed product is generally very consistent, provided control of the medium suspension is maintained at a given specific gravity. When, however, the washing process is a Baum jig or other similar apparatus, making a separation at rather arbitrary gravities, the control of the product ash is less accurate, particularly in those cases where the design capacity of the washbox is exceeded by the load of high ash fines. In either of these cases an instantaneous measurement of ash while not essential would be desirable, to check the quality of the washed product and provide operator or management with instantaneous warning of changes in ash. Nearly 60% of all British coal mined goes for electricity generation, to burn at 17% ash, and since the overall average ash content of raw coal as mined is about 30% and varies within a range of 18 ? 40%, incombustible material has to be removed. The ash specification could be met either by total washing, or by washing part and blending the clean coal produced with the remaining untreated coal. Some plants use a straight tonnage split, but generally speaking in Britain it has been found more economical to screen and wash the oversize only. In either case for effective quality control in blending an instantaneous determination of the ash content of the product as it is made has been found essential, since standard ash determination by pyrolysis methods is lengthy and provides information too late to be used in the control of plants blending at the rate of 1000 ton/h.

Jan 1, 1976

Production sharing and cost apportionment in joint ventures is commonplace in Australasia today and elsewhere. It is a recognised convention that, with the exception of a free carry situation, joint venture participants usually share the proceeds of the joint venture in direct proportion to their respective participating interest, after having first paid its respective cash calls, in advance, to cover the projectÆs ongoing operating and capital cost requirements.In surface mines, the parties simply pay their way and take their proceeds in this manner. In underground mines, the situation is no different, though treatment of capital, depreciation and tax may differ between the parties. A common feature in many cases is the creation of a joint venture entity to conduct the business. This entity then collects cash from the parties, banks it, employs the staff, runs the operation, provides reports and pays out the proceeds. This convention appears to be relatively simple in application. In practice, it has been known to be complicated in the situation where the participants take their product at the mine gate and undertake their own marketing and selling arrangements. A more complex situation presents itself where the joint venture tenement boundary with an unrelated third party straddles an economic deposit. In this scenario, both the joint venture parties and the third party may wish to mine the deposit, sharing some infrastructure and costs, yet taking their own product as it is produced. A case study outlining such a situation is presented in the paper, outlining firstly how the major cost categories were identified and treated for cost apportionment purposes. Secondly, a mechanism for the equitable apportionment of product is suggested. Finally, issues such as timing and cost reporting are dealt with, together with a checklist of points which should be considered when a similar situation might arise in the future.

Jan 1, 2002

This paper addresses the valuation and development timing of an undeveloped mineral project. Traditional analysis has us developing the project immediately if its net present value (NPV) is positive. Option pricing theory finds that it is better to wait until the NPV of the property is significantly greater than zero before developing. Alternatively, when evaluating the development timing decision, we must calculate NPV using a higher "timing-adjusted" discount rate, and develop the property only if its NPV using this timing-adjusted discount rate is greater than zero. This paper uses option pricing ideas to convert this development timing advice into a more concrete and user-friendly decision rule: develop the project when its "development-timing NPV" is positive, this development-timing NPV being calculated using the normal discount rate.

Jan 1, 1997

By S. J. CRAIGHEAD

IN 1912 the United States Smelting Refining and Mining Company made a large investment in a number of coal properties in Utah and in 1915 a subsidiary, the United States Fuel Co., was organized to take over these properties. Operations started in 1916 and the Company soon became, and remains, one of the major coal producers of the State. It now produces approximately one million tons of coal annually, which is about 22 per cent of Utah's output. The U. S. Fuel Co. owns large reserves of good coal and is in a position to expand operations with the industrial growth now taking place in the West. Traveling through the Western States, one is struck by numerous advertising signs portraying the picture of jovial Old King Cole of nursery rhyme fame. His rotund figure and beaming countenance are the symbols of Utah King Coal, the product of the King mine of U. S. Fuel Co. King Coal is a by-word of quality coal throughout all the Western States.

Jan 1, 1948

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

The Canadian mining industry is one of the strongest in the world. Not only does the country produce a sizable amount of minerals and metals, Canada plays host to hundreds of global mining companies, large and small. The country, for the most part, recognizes the importance of natural resource development, particularly mining, to its economic well being. Like any country, though, there are federal and provincial regulations on the books that the industry takes issue with. But there are also certain economic incentive programs in place to encourage exploration and mine investment. And, unlike the industry and the United States government, the Canadian government and mining industry appear to have a reasonable working relationship.

Jan 4, 2010

By Sabry A. Sabour

Metal price is among the key variables in the open pit optimization and the economic evaluation process. The common approach to handle metal prices in open pit mine planning is to optimize the ultimate pit and the mining schedules using a fixed, flat metal price. In this respect, metal price is assumed to be known with certainty throughout the entire mine life, which in some cases can reach 80 years. Given the volatile nature of metal markets and the metal price cycles, the conventional pit optimization approach may generate sub-optimized mining plans, which results in either extra costs to mining projects or lost revenues, or both. Long-term operational decisions such as future pit expansions, beyond the currently optimized limits, cannot be handled using the pit optimization approach based on flat metal prices. There is a growing interest in the mining industry to model and manage such market uncertainty in the pit optimization as well as the project evaluations in order to maximize the value of mining operations. In this paper, the author will outline a practical approach to optimize the ultimate pit taking into account the volatility and variability of metal markets. The proposed approach uses a combination of the pit optimizer of the commercial MineSight package and a simulation-based economic modeling real options valuation approach employing the least-squares Monte Carlo algorithm. MineSight pit optimizer employs both the floating cone for initial optimization exercise and the standard Lerchs-Grossmann algorithm. In this paper, Lerchs-Grossmann option will be used to generate the pit shells. Real options valuation approach used in this study is based on generating multiple metal price scenarios. Metal price uncertainty is modeled using stochastic metal price models such as the geometric Brownian motion and the mean-reverting process. The mining operational scenarios corresponding to the simulated metal prices are then optimized using the least-square Monte Carlo approach. The objective is to maximize the discounted cash flow value of the project while incorporating the operating flexibility to revise the operating status of the open pit with time as new information becomes available. The focus of this work is on the practicality of the proposed uncertainty-based pit optimization approach and the difference it can make to the technical operational mining decisions. A case study of a hypothetical open pit poly-metallic mine is provided. The deposit contains copper, gold and silver grades. The run of mine ore is sent to the process plant that produces copper concentrate with copper as the main metal and gold and silver as the by-products. Four uncertain variables are considered here include copper, gold, silver prices and foreign exchange rate. Both copper price and exchange rate are modeled using the mean-reverting process while gold and silver prices are modeled using the geometric Brownian motion. The case study is performed using both the conventional flat price pit optimization approach and the proposed uncertainty-based one to compare results.

Aug 1, 2013

By Biswajit Samanta, Rahul Kumar, Pranjal Pathak

The Open Pit Mine Production Scheduling Problem (OPMPSP) is a complex optimization problem that seeks to determine the best sequence for extracting mineralized material from the ground in order to maximize the Net Present Value (NPV). This process must take into account various capacity constraints, such as mining rates, processing limits, stockpiling capacities, blending requirements, and precedence constraints, which dictate the order in which blocks can be extracted. Traditionally, the OPMPSP has been formulated as a mixed integer programming problem, employing binary and continuous variables to represent the extraction of each block. However, this approach has limitations, particularly when it comes to addressing the stockpiling issue. In response, some researchers have proposed mathematical models, which offer a more accurate representation of the problem but come with their own set of challenges. In this study, an alternative approach to tackle the OPMPSP with stockpiling by employing constraint programming (CP) is explored. The method was carefully tested on the Newman1 dataset from the well-known Minelib library. The results show that the CP-based model obtained a production schedule having about 2.69 % higher NPV than the NPV of the solution, which is recorded in the Minelib Library.

Jun 25, 2023

"Chairman: Professor E. P. PFLEIDER Rapporteur: Mr P. R. JANISCHPapers:Optimum design of an open pit by D. A. PhillipsAn open pit design system for stratiform ore bodies by L. A. J. Pronk van Hoogeveen, J. R. Cutland and M. WeirAn open pit design model by R. H. Robinson and N. B. PrennThe Chairman in opening the session highlighted the current situation in the United States of America where some 85 to 90 per cent of all mining (except for coal) is done by open pit methods, and where some 40 per cent of the coal is mined by open pit. The South African industry is, of course, dominated by the deeper level underground gold mines; however, with the aid of an extensive open-pit technology developed in other countries, South African companies arc continuing to explore possibilities of open-pit exploitation of base mineral, coal and diamond deposits. Several successful ventures are already in operation at Phalabora, Optimum Colliery, Kimberley and elsewhere, and South Africa is undoubtedly benefitting in this regard by drawing on the experience of others.The papers of this session were therefore particularly pertinent, particularly when viewed in conjunction with those presented at an earlier South African conference devoted specifically to open pit mining.Two themes dominated the discussion which followed presentation of the three papers at this session. The first related to the practicability of using the reported techniques as a tool for management, and their acceptability as such to mine management. This was, of course, not peculiar to this particular session, but rather the major point of debate over the entire conference.The second theme concerned the reliability of the initial drill hole data on which any open-pit design must necessarily be based. This gave added emphasis to the problem of practicability, for no management is likely to accept an elaborate pit design unless confidence can be placed in the ore reserve assessment.In noting these two features of the discussion, it should be remembered that all the three papers dealt largely with design and pre-planning; there was an unfortunate lack of papers or discussion on the subject of controlling the day-to-day mining of open pits, and this is an area where the potential impact which can be made by the computer is even greater.In introducing his paper, Mr D. A. Phillips pointed out that it was concerned only with optimization, and that it therefore assumed, firstly, an adequate subdivision of the orebody into ore blocks characterized by grade, rock type, structure, etc., and, secondly, an acceptable forecast of costs and mineral prices in order to generate a suitable profit matrix. However, programs dealing with these problems for both massive, disseminated and stratiform ore bodies are available to Roan Consolidated Mines. The method of optimization which he had described had been used on a region split into 28 000 blocks, for which the program used three hours of C.P.U. time on an IBM 360/40 computer. The computer design had provided a three per cent improve¬ment on a normal design of the same area."

Jan 1, 2014

By Solar D. Andrés

Several large open pit mines are facing the challenge to design and plan an underground transition to sustain the long term future of their operations. The desired underground method is Block Cave since its natural high productivity and low operating cost that could compete against the open pit cost to mine the final open pit pushbacks. It has been found at several operations where this transition is taking place that the pit limit at which transition is performed is rather deep. This aims to think that perhaps several transition projects have started late in the life of an operation producing an over stress in the transition project and reducing the flexibility in the design of the overall infrastructure and a substantial lost in the complete project NPV. Traditionally the approach to plan open pit underground transition consists of sequentially deciding the final pit using a Lerchs and Grossman type of optimization to find the overall maximum pit shell and then running block cave simulations to find the best footprint for the underground option. The research summarized in this paper is related to the development of an integer linear programming model that aims to compute simultaneously the maximum NPV of the combined option final limit open pit and block cave underground footprint. The model has been tested using two large block models representing two of the current operations in the process of transiting from open pit to underground operations. Finally, the integrated open pit underground transition model is going to be compared to the traditional sequential approach in order to define which method achieves the best NPV. The paper illustrates both case studies in depth.

Oct 1, 2009

By Beall, John V.

THIS is not simply the story of how a water filled shaft was developed into a million-ton- a-year producing mine in the space of four critical years, although it is reason enough for telling it, but it is also the saga of an engineering achievement in which knowledge nurtured by years of experience in coal and ore mines was blended together and the best from each type of mining selected. The entire system of mining was detailed on maps by the mining engineering department before the shaft was unwatered, and subsequent development followed these plans nearly to perfection. The selection of machinery was particularly critical as it was necessary to push production from only a few headings in the early stages of development and metal mine machinery was being used in a coal panel-system of mining. At the start of World War I1 the demand for iron ore to supply Woodward blast furnaces, and rapid exhaustion of the main source of Wood- ward ore, No. 3 Red Ore mine, necessitated speedy opening of the Pyne mine. The mine is three miles southwest of Bessemer and is responsible for 80 pct of Woodward ore, the rest coming from the Songo mine. The Woodward Iron Co. is one of the old producers of the Birmingham district. S. H. Woodward, an iron-master of Wheeling, overheard two Union soldiers conversing about ore and coal lands in Alabama, which lead to the acquisition of the first ore lands of the Woodward Co. in 1869. Development was not begun until after the death of S. H. Woodward; his two sons, W. H. Woodward and J. H. Woodward, formed the Woodward Iron Co. in 1881 and purchased a tract of land midway between the ore vein on the southeast and the coal field on the northeast about 12 miles southeast of Birmingham for the

Jan 1, 1950

By R. H. Fernald

In 1900, as far as available records show, there were only two producer-gas power installations in the United States. In June, 1915, the number probably exceeded 1,000. Of this number, some 84.5 per cent comprised small plants using anthracite, and only about 15 per cent of the total number utilized bituminous coal and lignite. In addition to these, two plants used wood, and three or four used oil. In the main, however, the larger sized units are operating on bituminous coal and lignite.

Jan 1, 1916

By J B. Magee

Sheep Creek Mines Limited has developed several operating techniques that have greatly assisted in keeping unit costs at reasonable levels. Some of the techniques, as described in this paper, include organization, accounting, warehousing, bonus and contracts. INTRODUCTION THIS paper is a non-technical report on operating techniques developed by Sheep Creek Mines Limited at their Mineral King mine, located near lnvermere, B.C. Depressed metal prices and continually rising labour and materials costs have necessitated a continuous search for method to keep operating costs down. The newly developed techniques and practices have greatly assisted in maintaining unit costs. Sheep Creek Mines Limited is a mining company incorporated under the laws of the Province of British Columbia. The Company's share capital is 3,500,000 common shares, witl1 a par value of 50 cents each, of which there are 1,875 000 shares is-sued. The Company has eight di-rectors. The administration, exploration and accounting offices are located in Nelson, B.C. The Company's working capital is approximately $1,500,000.

Jan 1, 1963

By J. H. Jacobs

This report records a chapter in the history of the development of an electrolytic manganese industry in the United States. Nearly all the manganese requirements of the United States have been imported. Although there are large quantities of manganese ore in the United States, most of it is low-grade and cannot be used for the production of ferromanganese. Since the electrolytic production of manganese carried out by a process developed in the laboratories of the Bureau of Mines offers a method whereby the extensive low-grade deposits may be utilized and since commercial development had proceeded slowly, the Bureau constructed a new and larger pilot plant at Boulder City, Nev., where abundant electric power was available. An authorization in November 1940 covered a plant of only several hundred pounds daily capacity. Additions to some sections author¬ized by subsequent appropriations have enabled the plant to produce over 2,000 pounds a day for extended periods.

Jan 1, 1946

By J. S. Aronofsky

The areas are identified where the techniques of operations research have been applied in the petroleum industry. Particular emphasis is given to the linear program models that have been used for solving management problems. Of the entire gamut of applications for linear programming, attention is focused on the models that represent underground reservoirs. Such models could be used to help schedule drilling rig operations and to schedule oil production. A framework is established for placing the model for underground reservoirs in the proper perspective along with the models which represent other facets of the oil business. One of the remarkable phenomena of this century is the rapid growth in the size and' complexity of human organizations. The mere size of modern business means that administrative decisions can affect vast quantities of capital and large number of people. Mistakes can be tremendously costly, and a single wrong decision can require years for rectification. Moreover, the pace of modern business is such that decisions are required more rapidly than ever before; the mere postponement of action can give a decided advantage to a competitor. It is not surprising that the increase in difficulty of decision making has been followed by efforts to put this activity on a more objective basis. The growing science of operations research, which relies heavily on the methods that have proved so successful in the physical sciences, is one aspect of these efforts.

Jan 1, 1962