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

"All-in sustaining cost is a metric used by mining companies to reflect the cost of gold mining in a consistent format useful to both investors and mining professionals. Cost reporting focused on the direct cost of mining and processing ore was summarized in the non-GAAP cash cost developed by the Gold Institute in 1996. In 2013, a group of mining companies, working with the World Gold Council, developed a more inclusive approach to reporting costs designed to solve the dilemma of showing a more comprehensive reflection of recurring costs involved in producing gold, without discouraging investors. INTRODUCTION Mining today plays a key role in the development of our civilization as a source of essential raw material 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 today 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 on 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 the past decades by the industry instead of the net or operating margin. As a result, even when the gold price was high, nearly $1900 per ounce 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."

Jan 1, 2017

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 M. Sagedahl

The off gas from a smelter is cooled and dust removed in an electrostatic precipitator before approximately 95% of the sulphur dioxide (S02) is converted to sulfuric acid. However, the tail gas may need to be polished to remove the rest S02 to meet demands. A flue gas desulphurization (FGD) system, as usually applied to S02 removal on coal and oil fired Power Station, is suitable for polishing tail gases from copper smelters. The ALSTOM Seawater FGD process makes use of the alkalinity in the seawater to absorb and neutralize S02. Before being returned to the sea, the seawater is treated to comply with environmental regulations. As the ALSTOM Seawater FGD process uses no reagent and produces no byproduct, it is extremely cost-effective for coastal installations. The first SWFGD plant started operation in 1968. Over 60 of these units have been installed worldwide. The ALSTOM Seawater FGD process removes S02 from flue gas flows corresponding to a total of 70,000,000 Nm3 /h. Suitable for thermal power stations, smelters and oil refineries, ALSTOM Seawater FGD plants efficiently treats flue gases in the range of 300,000 Nm3/h to 2, 700,000 Nm3 /h per FGD plant, containing 20 - 6,500 ppm of S02.

Jan 1, 2007

By C. R. Edwards, D. R. G. Watt

"Equity Silver Mines Ltd. a member of the Placer Development group of companies operates Canada's largest silver mine near Houston in north-central British Columbia. Initially, the silver-gold-copper flotation concentrate contained excessive levels of antimony and arsenic, so a leach process was installed to remove undesirable metals and provide improved smelter terms for the leached concentrate. The leach plant which has been fully described elsewhere (1, 2, 3), was forced by deteriorating process economics to shut down in April 1984. Equipment was mothballed and alternate uses sought.The Endako Mines Division of Placer Development Limited, located some 150 kilometres east of the Equity mine site, shut down its molybdenite mining and milling facilities in the spring of 1982. Endako has continued to produce molybdic oxide (molybdenum trioxide or MTO) via intermittent roaster runs, and also a high purity, lubricant grade molybdenum disulfide in the Ultrapure Plant. With the steel industry in the doldrums, molybdenum chemicals present an alternate and growing potential for molybdenum sales. In 1982 Placer Development began testing this market. Molybdenum chemicals were produced in the United States on a toll basis using Endako MTO as process feed. The transfer of this production to Canada was being considered when Equity's leach plant shut down, and it was noted that most of the equipment and skills necessary could be provided by the leach plant. See Figure 1.A careful investigation of process requirements was completed by engineering and production staff at Equity and Endako. A provisional capital and operating cost estimate was made, and it was decided to perform a test run during July 1984. There were strong reasons to proceed with this project. A positive cash flow was expected for both Endako and Equity. Endako would have product to continue to expand in the molybdenum chemicals market with the added selling point that now the complete production process would be under direct control of Placer Development companies. Equity would further benefit since a portion of the leach plant would continue in operation thus maintaining and exercising our hydrometallurgical engineering and operating skills. Finally, Equity would have a base from which to search out other processes adaptable to the idled leach plant equipment."

Jan 1, 1986

By D. P. Roberts

The stoping of platinum orebodies in the Bushveld has in the past been accomplished by using in-stope pillars to ensure stability of the workings. In the future, the use of continuous mining machines to mine the platinum orebodies is probable. It is not envisaged that such machines will cut in-stope pillars. This paper describes the alternative support systems that will replace the pillars and the stope geometries that will be required for this type of mining. The paper describes how the support resistance provided by in-stope pillars in current mining was determined and then evaluates support systems that can substitute for these pillars. Conceptual layouts based on existing breast mining layouts are presented. The layouts consist of panels of up to 100 m face length between rigid strike stabilizing pillars. A number of design charts are then proposed that allow for the design of appropriate support systems.

Jan 1, 2005

By S. Demetrio

China has a traditional segment of Copper Smelters with its own Chinese technology, typically small in size from 20.000 to 50.000 tCu/a, and they are responsible for the processing and production of more than 600,000 tonnes of blister copper per year. For occidental experts, like one of the authors, it is not so easy to believe that they are profitable, because the size and the use of old Blast Furnaces, but they are with simple and effective production lines. The authors are convinced that China has a good alternative to improve theses old copper production lines with small innovative changes in its process arrangement, jumping to higher level technology, more efficient in production, productivity and cost, assuring copper as a raw material for the country and its high speed development. The key to improve that the traditional Chinese Copper Smelter is white metal as an extra raw material as a first step doubling the copper production from raw materials and the complete replacement of concentrates by white metal (WM) in a second step increasing it four times or more as the final goal. It is not so difficult nor expensive to make it happen, but there are a couple of questions for implementing this innovation in the copper smelter industry: 1 - Will the old fashioned mentality be open to this new direction for China being the biggest copper consumer on one side, and the biggest copper Primary Producers on the other hand? and 2 - Will they be open to follow this "win-win" strategic way for both ends of the copper market? We don't know if anybody will take up the challenge to improve it but our responsibility as a consulting expert and a university professor is to put the alternative on table for others to decide whether to implement it.

Jan 1, 2007

By P. Whincup, T. Showell, B. Marchant, R. Dunne

An oversupply of copper on world markets in the early 90' s, coupled with a decrease in demand, resulted in a "tight" market for the sale of copper concentrate. In these conditions small producers of low grade copper concentrates found it difficult to sell their products. The situation was exacerbated for those producers also having reasonable quantities of penalty elements (e.g. As, Bi). The Telfer Gold Mine bulk copper gold concentrate, produced from treating underground sulphide ore, fell into this category (i.e. 16% to 20% copper, 30% to 35% sulphur and 3500ppm to 4500ppm arsenic). The concentrate sulphide minerals are predominately chalcocite and pyrite. Although a higher grade copper concentrate was attainable a substantial decrease in gold recovery ensued. Under the prevailing market conditions a decision was made to stockpile concentrates pending either an easing of market conditions or alternatively finding an on site method for treating the concentrate to recover both the contained gold and copper.

Jan 1, 1995

By D. J. Allan, W. R. Wilson

For conventional aerospace aluminium alloys of the 2000 (copper) and 7000 (zinc, magnesium) series the recycling of process scrap from both metal suppliers and aircraft manufacturers is a well-established, worldwide industry. The recent introduction of a new family of alloys that incorporates lithium has posed a new challenge to the recycling industry owing to the high cost of lithium, its high reactivity to the atmosphere and to refractories and its absence from the specifications of all other registered alloys. Various process options for recycling have been identified, but vacuum distillation has been selected as the most cost-effective and technically feasible solution. Experimental work established that the separation of Li from AI-Li scrap is feasible and an industrial process has been designed. The economics of Li recovery are very sensitive to the AI-Li content of the feed material. Owing to the design of aerospace vehicle manufacturing plants it is expected that the swarf will be mixed with other alloys. A method of enriching this feed has been developed that is based on the control of swarf morphology by thermal and mechanical treatments as a precursor to eddy-current separation. After eddy-current separation and vacuum distillation small proportions of Li are retained in the AI residue. The effects of this on the properties of conventional AI-Si shape-casting alloys were investigated and safe threshold levels have been established.

Jan 4, 1993

By Dale A. Zuck

Recovery of aluminum metal from drosses? is a major factor in the recyclability success story enjoyed by the United States aluminum industry. Today's modern dross processor uses the latest technology to maximize metal recovery at the lowest cost while complying with all environmental laws and regulations. Most dross processors, however, pay little attention to the resulting saltcake, the end residual of dross recyCling, and rely on landfills for .disposition of this material.. The alternative is to recycle the saltcake, but the success of this technology is dependent on the development of reliable outlets for each of the saltcake constituents. This paper discusses the evolution of an aluminum dross oxide processing technology that ,produces an economically attractive source of alumina for the production of portland cement.

Jan 1, 1995

By G. M. Scamans

In the past ten years there has been considerable penetration of aluminum automotive body sheet (ABS) into automotive structures. The exponential increase in demand is resulting in major investments in heat treatment and finishing capacity across the globe. Line speed and tonnage throughput is limited by the continuous heat treatment (CHT) floater furnace rather than the cleaning and pretreatment section where electrolytic treatments that offer higher line speeds should come into favour and roll coating of pretreatment should predominate. The capacity limiting surface texturing pass will either be eliminated or moved to the finishing line or a dedicated mill. The key to making aluminum both embedded carbon and cost competitive with steel for more and more affordable classes of vehicles lies in recycling of both prompt scrap and, in the longer term, end of life vehicle scrap. For the first time scrap separation technology is available that can compete effectively with hand sorting and can sort aluminum shredded vehicle scrap into wrought and cast alloys and then into individual alloy groups. The challenge is to use more end of life scrap in alloy formulation whilst at the same time extending the property range in terms of both strength and formability.

Jan 1, 2015

By G. M. Scamans

In the past ten years there has been considerable penetration of aluminum automotive body sheet (ABS) into automotive structures. The exponential increase in demand is resulting in major investments in heat treatment and finishing capacity across the globe. Line speed and tonnage throughput is limited by the continuous heat treatment (CHT) floater furnace rather than the cleaning and pretreatment section where electrolytic treatments that offer higher line speeds should come into favour and roll coating of pretreatment should predominate. The capacity limiting surface texturing pass will either be eliminated or moved to the finishing line or a dedicated mill. The key to making aluminum both embedded carbon and cost competitive with steel for more and more affordable classes of vehicles lies in recycling of both prompt scrap and, in the longer term, end of life vehicle scrap. For the first time scrap separation technology is available that can compete effectively with hand sorting and can sort aluminum shredded vehicle scrap into wrought and cast alloys and then into individual alloy groups. The challenge is to use more end of life scrap in alloy formulation whilst at the same time extending the property range in terms of both strength and formability.

Jan 1, 2015

By F. F. Lins

There is a large use of mercury in Brazil by the gold miners in the so called "garimpos" (non registered mining operations), where it is usual to recover the gold contained in the gravity concentrates by amalgamation, which is highly deleterious to environment if not conducted properly. Unfortunately, this is a common practice there. After presenting in brief the modus operandi generally practiced in the garimpos and the environmental problems, this work reviews some of the research conducted in CETEM according to two approaches: (i) replace amalgamation by other processes and (ii) develop technology to treat mercury-contaminated soils and effluents. Conventional processes like froth flotation, to recover gold from gravity concentrates, and centrifuges were considered. Also as alternatives to amalgamation, innovative process like the recovery of gold by coal-oil agglomerates and a technology that is currently under development in our laboratory, called gold-paraffin process, are described in brief, some results presented and their potential use assessed. To reclaim sites already polluted a technology was developed to float mercury selectively from contaminated soils. The potential use of centrifuges to pre-concentrate the mercury is also discussed. The scope for applying the last techniques is to concentrate the pollutants in a small volume of mass which would be suitable for recycling or isolation from the environment. A prospective technology to treat contaminated soils, or mercury concentrates, is the immobilization of mercury by adding inorganics. Concerning the ionic mercury which may be present in effluents, precipitation of the ions and flotation of the precipitates are being studied.

Jan 1, 1994

By James P. Sloss

MOST students that plan to enter the mining profession attempt to obtain some kind of practical experience before graduation. Six or seven years ago it was an easy matter for undergraduates to find employment during the summer vacation and return to school in the fall filled with enthusiasm to dig deeper into the theoretical field. However, during the past few years it has become extremely difficult for an inexperienced undergraduate to obtain even a menial job in mining. This was the situation which presented itself to the author and his partner, T. M. Patten several months before school closed in May, 1934. At that time, Mr. Patten's training consisted of two years study in Mining, and mine included three years' study in Mining Geology at the Missouri School of Mines and Metallurgy. With this technical training and no practical experience, we conceived the idea that custom assaying in some of the western mining districts should be a lucrative business. We thought that the renewed interest in prospecting for gold and the opening of new mines should provide more assay work, and believed that we might secure it if we were on the spot where the assaying was needed. We realized that it would be out of the question for us to obtain the necessary equipment with which to establish an assay office. Even if such an office were established we had a maximum of but three months during which to operate. So we determined to build some kind of inexpensive equipment that could be placed in an automobile, or trailer, and be moved from one camp to another. We then began to study the theoretical aspects of assaying and started experimental work with the equipment that we proposed to build.

Jan 1, 1935

By J. E. Lema

America's bulk commodity transportation systems have taken on a new look in the 1970's and 1980's. Railroad systems, barge lines providing inland and intra- coastal waterway transportation, and Great Lakes carriers have undergone substantial changes through mergers and acquisitions, consolidations of ownership and control, and construction of modern intermodal transportation facilities linking railroads and water carriers. The new look has generated some concerns and opportunities with regard to producers and shippers of bulk commodities which are characterized by the necessity of moving large quantities of heavy materials long distances. Clearly such transportation requirements call for efficient railroad and water carrier services. Shippers of commodities like coal, grain, .chemicals, minerals, ores, forest products, petroleum products, and heavy manufactured goods find reductions in transportation competition lead to concerns that rates charged by carriers will not be sufficiently constrained by market forces. At the same time, new policies on contracting for railroad services can lead to greater efficiencies, a rewarding opportunity for carriers which should be shared with shippers and consumers of bulk commodities. Then, of course, there's a related problem that in the absence of effective competition, the benefits of increased carrier efficiency will not be passed on, in part, to shippers and consumers, causing losses in markets for producers.

Jan 1, 1986

By C. W. EICHRODT

NUMEROUS requests for the suspension of publicity make difficult the preparation of the annual review of copper metallurgy for 1934. In the United States, sales allocations indirectly have set restrictions on the scope of activities of producers and refiners, and necessitated closer cooperation between secondary and primary producers. However, the feeling exists that preparations for a return of intense competition should not he neglected, and careful investigations are being conducted for ways and means of improving industrial positions and production methods. In all probability, efficiency in technique and equipment will prove of far greater importance in the near future than production capacity, and many important developments in copper metallurgy later will be found to have been born during the current year.

Jan 1, 1935

By A. Luckita, A. Samtani, R. Barus, J. R. Donald, J. Syarifuddin

In conventional Rotary Kiln-Electric Furnace (RK-EF) laterite nickel processing, management of dust continues to be problematic. A more efficient processing of dust represents an opportunity for energy efficiency, increased production, and productivity. PT International Nickel Indonesia (PTI), together with Vale Base Metals Technology Development (VBMTD), has successfully developed and implemented a novel flowsheet enhancement that capitalizes on these opportunities. In the novel flowsheet, the dust recycle stream is moved forward in the RK-EF laterite nickel smelting process. The dust is injected into the kiln's main burner, as opposed to being recycled to the dryers. A similar treatment of dust is commonly practiced in the cement industry; however, application to nickel smelters has not been fully developed to date. This paper describes this dust insufflation technology, the process through which it was developed for laterite nickel processing, and summarizes the lessons learned. A key conclusion is that successful new technology development requires a multi-disciplinary team involving members from research and development, study management, engineering consulting firms, project implementation management, process technology and operations.

Jan 1, 2011

The mining industry is quite often faced with declining selling prices for its products in the face of rising prices for the input cost resources that it uses. Blasting is a key activity within the mining system and has a vital role to play within the Mine to MillTM concept. It is therefore important that blasting makes a positive contribution to mine profit and productivity. There are several variables involved in considering the profitability and productivity of blasting. The rock types and structures, the bench height, the blast hole drill rig specifications, hole diameter, spacing and burden, explosive loading and initiation and blast size fragmentation. Productivity accounting is a methodology which is used elsewhere to give additional insights into the productivity and pricing factors that drive the financial performance of a business. Miners know intuitively that productivity and pricing influence costs and profit, but only with productivity accounting can the dollars involved be calculated. Drilling and blasting are part of a chain of unit operations in a mine. For an owner-miner, drilling and blasting would be considered as cost centres and a productivity accounting cost model approach would be relevant. On the other hand a contractor is likely to consider drilling and blasting as a profit centre, in which case a productivity accounting profit model approach would be appropriate. Both of these will be explained. The paper provides a basic outline of deterministic productivity accounting and demonstrates its application to blasting. Drilling and blasting data from a mine was obtained for a two-month period. The change in productivity and prices was calculated to obtain the dollar contributions from them towards the change in cost. It was determined that although there had been productivity dollar gains these were offset by larger pricing dollar losses, the net effect being that total drilling and blasting costs increased. The productivity accounting analysis gives the facts and the mine is in a position to establish priorities based on knowing the dollar contributions of each input used.

Jan 1, 2001

By T. S. Mohibatsela, R. V. Ramani, C. V. Manula

The Mineral Engineering Department of The Pennsylvania State University has developed a suite of computer models for anthracite open pit mining (Fig. 1)1 Individual sub-systems have been developed to (a) interpolate geologic field data to obtain coal tonnages, waste volumes, and strip ratios; (b) simulate equipment performance on selected pit profiles to generate data required to choose coal and waste removal equipment; and (c) evaluate selected cost factors to determine either a rate of return for a specified selling price or vice-versa. This paper describes the application of two of these subsystems, namely, the Reserves Model (GEOL) and the Open Pit Materials Handling Simulator (OPMHS), and how these may be applied for the selection of equipment for a prime anthracite mining site.2

Jan 1, 1981

Principal component analysis of the variation of Cu, Ni, Zn, Pb, Mn, and Cr in a control group of 96 samples of surface ironstone from the Yilgarn Block, Western Australia, was used to derive a simple graphical method, based on only Cu, Ni, and Cr, for discriminating between massive nickel gossans and other ironstones.When the graph was tested by plotting 400 control samples, it failed to correctly classify only nine out of 176 gossans and 11 out of 224 other ironstones.

Jan 1, 1974

The Bureau of Mines, through its Minerals Availability Program (MAP), investigates the mineral supply potential of the United States and market economy countries (MEC's) for a number of minerals considered essential to the U.S. industrial base. Major activities include identification of important mines and mineral deposits, estimation of their mineral resources and production costs, and availability and sensitivity analyses. Products include data print-outs of geological and engineering information, discounted- cash-flow rate of return (DCFROR) analyses of individual mining operations, commodity availability appraisals, and analytic services to Government agencies. These products are used in assessing the mineral supply position of the United States: in setting priorities for research aimed at reducing production costs and minimizing adverse environ- mental impacts and regulatory compliance costs of mining and mineral processing operations; and in formulating and evaluating Government policies that affect minerals. Bureau MAP data and analyses have been provided to the executive and legislative branches to aid in consideration of trade, tax, and stockpile policy issues. A study of the economic potential of selected seabed mineral resources supports the regulatory responsibilities of the Department of the Interior in the U.S. Exclusive Economic Zone. Analytic studies of mineral project viability, industry competitiveness, and import dependencies were also undertaken for, or in cooperation with, U.S. and foreign government agencies, industry and trade organizations, and international lending institutions.

Jan 1, 1987