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By Lawrence Devon Smith

The selection of the production rate is one of the most crucial decisions to be made in the development of a mineral property. However, it is not uncommon for the production rate to be decided arbitrarily, before any technical evaluations begin, and it is often not reconsidered when better data becomes available. A number of methods are used in the mineral industry to select the production rate for a project. There is general agreement that the size of the ore reserve has a strong influence on this decision, but what other factors are involved? Is there a way to identify an optimum rate? This paper examines the factors that influence the selection of a production rate from the perspective of project economics. The NPV maximum value should be viewed as a “failure” point. The “two times capital” maximum is proposed as a lower limit. A practical check is suggested to confirm that a selected rate is in an optimum range. Production rate assumptions are much more likely to be reviewed for marginal projects, but they should also be reviewed for viable projects.

Jan 1, 1997

By V. de Macedo Torres

There are technical and commercial limitations on using high fluorine copper concentrates in industrial copper smelters. The presence of more than 1000 ppm of fluorine in copper concentrates affects the sulfuric acid units generally integrated to copper smelters, and penalties are normally applied to high fluorine concentrate prices. Several process alternatives to this issue were studied at CVRD Technology Center (SUTEC): modifications on conventional sulfuric acid plants to use high fluorine concentrates, removal of fluorine containing minerals in flotation using depressants, selective leaching of fluorine minerals and sulfuric leach of copper concentrates. Finally, a hydrometallurgical process of removing fluorine was developed by SUTEC.

Jan 1, 1997

By R. A. May, P. J. Brooks, W. M. Smith

"Neill and Gunter Limited (NGL) has prepared a preliminary design and a cost estimate for a ferric chloride leach plant to recover copper, lead, zinc, and silver from a typical complex sulphide ore. This plant design is specifically intended to treat unconcentrated ground ore (flotation feed), but can be readily adapted to treat bulk concentrates. Samples of ground ore and bulk concentrate were obtained from Heath Steele Mines, Miramichi, New Brunswick, laboratory testing, and preliminary process flow sheet preparation was carried out by the Research and Productivity Council in Fredericton, New Brunswick. Approximately thirty drawings have been produced, including process and equipment flowsheets, process piping and instrumentation drawings, and preliminary general arrangements. Preliminary capital and operating cost estimates were prepared for a plant that would treat 1000 t/d of crushed and ground ore to produce about 30 000 tpy of zinc. Capital and operating cost estimates were also projected for plants up to 4000 t/d of processed ore. Recoveries of 99% for zinc, 98% for lead, and 96% for copper were achieved in laboratory tests on unconcentrated ore. These recoveries were higher than the overall recoveries obtained from bulk concentrate, yielding approximately 10% more revenue.A 1000 tonne per day plant was determined to have a low return on investment, however, depending on the size and type of mining operations employed and the FCL plant throughput. DCF-ROI projections of 20% to over 30% were calculated for 100% equity financed “green field” mine, mill and FCL plant operations of 2000 t/d and higher"

Jan 1, 1997

By D. DeGagne, E. De Souza, J. F. Archibald

This paper describes the potential use of anew agent material for backfill consolidation, ground waste glass, to be used as partial replacement of Portland cement fractions within backfill. Significant fractions of commercial and residential silica glass production is currently utilized as waste landfill and must be disposed of at high cost and with no foreseeable environ-mental benefit. This paper also demonstrates that waste glass materials could be effectively recycled as backfill additives, and that a significant, large and stable source of additive supply, currently land filled, can be developed. This new application will generate added value for such materials, serve to promote positive environ-mental stewardship and satisfy engineering sup-port requirements in mines.

Jan 1, 1997

By Bruington T, Perkins J, Hutton R

Natural resource developments are among the largest and most challenging projects taking place in the world. They involve capital intensive investment with long lead times and the management of geological, market, technical, operational and financial issues. A clear strategy is required to manage these projects and this strategy is underpinned by a development Philosophy.

Jan 1, 1997

By L. A. Arrington-Webb

The International Standards Organization (ISO) 9000 series of quality standards was published in 1987. First initiated by the British in the mid-1970's to assure the quality of British goods and services. ISO 9000 certification demonstrated the capability of a supplier to meet the requirements of the customer. Thiele Kaolin Company has invested considerable time and money achieving and maintaining ISO 9002 certification. Through a regimen of process control and documentation, routine audits, and a commitment to quality management, this kaolin producer continues to be a competitive pigment supplier in a world-wide market.

Jan 1, 1997

By Robert Smith

Deposits are global, said Barrick Gold's Smith. This means that the mineral industry, by necessity, is global. "Manufacturers have considerable freedom to decide exactly where they wish to produce whatever it is that they sell," he said. "What we sell, on the other hand, must be produced where nature chose to lay it down. The question is not so much, whether to go global, as when to do it and how to go about it." The timing of international expansion depends on external factors, often political, Smith said, and on internal ones that relate to the company's size and stage of development. "In deciding how to expand, a company is largely deciding how to adapt its existing business strategy to activity on the world stage," he said Barrick entered 1997 with 1.58 kt (51 million oz) of reserves, Smith said, annual production of 93.3 t (3 mil- lion oz) and cash flow of $463 million. Reserves in- creased 40% in 1996 and production will begin to rise again significantly in 1999. "We believe our fundamental strategy is responsible for our early development and subsequent success," he said. Barrick entered the gold-mining industry in 1983. Its corporate mandate was to create shareholder value, Smith said. From the beginning, the company took a different approach - businesslike, entrepreneurial, strategic and focused. "Many mining companies start out with a technical team and develop business and financial expertise thereafter," Smith said. "In 1983, Barrick had the business people, and then moved into mining." First, it acquired part interest in two small operations, one in Alaska and one in Ontario. Then, in 1984, it merged with Camflo Mines, which operated a low-cost underground operation in Quebec.

Jan 1, 1997

By R. A. Halatchev

A risk model for assessment of the uncertainty in the forecasts of the planned profit is developed. It is based on the selling price of the metal recovered from the ore and the production per shift of the excavators. These two critical variables characterise the economic and technical aspects of the mining venture. Time-series methodology is used to describe the behaviour of the economic variable, which improves the adequacy of the modelling. A hypothetical open-pit gold mine is used to illustrate the application of the model. Results obtained show that the model is a good alternative to sensitivity analysis in taking account of the stochastic character of the price of the metal recovered from the excavated ore and the production per shift of the excavators used. The model can be extended by the inclusion of new variables that have a probabilistic nature

Dec 1, 1996

By Qing Wang

In this method the state of an open-pit mine is represented by the number of benches that are mined in each predesigned mining phase (or pushback). Consequently, a specific mining schedule can be represented by a sequence of states which starts with the topography of the mine site and ends with the ultimate pit. For a given set of mining phases all feasible states are first generated and sequences of states are then evaluated for technical and economical feasibility. The best sequence, which gives the maximum net present value (NPV), is found by applying a dynamic programming optimisation algorithm. The algorithm also optimises the cut-off grade which satisfies the mill feed requirement for each planning period. It was found that the algorithm can be used not only for scheduling but also as an effective tool for analysing the effects of mining and milling capacities and cut-off constraints on the mining schedule and the total NPV. The algorithm, which was programmed in C, was successfully applied to a large Au-Cu deposit

Jul 1, 1996

By R. P. Foster, ed.

The short selection of papers in the special issue provides an insight into the level of exploration activity in Africa and the science and technology that are underpinning it. A country-by-country survey is followed by discussion of geochemical exploration in tropical soils, the Liptako region of Niger, structural styles of deposits in Zimbabwe's Bulawayo-Bubi greenstone belt, structural controls in Zimbabwe's Eldorado shear zone, the regional framework for deposits in the Odzi-Mutare-Manica greenstone belt of Zimbabwe and Mozambique, and the Iperindo deposit in Nigeria's Ilesha schist belt

Apr 1, 1996

By L Zhang

The Chinese coal industry is the largest coal producer in the world. The total production in I995 was 1.28 bnt. On the way towards introducing a market economic system, this mature industry is facing major challenges. The main problems are a large surplus of manpower, shortage of current assets and capital, low productivity, high casualties and a huge deficit. This paper discusses the present situation and the future developments in the Chinese coal industry. The current policy can be stated as ‘rapidly developing the state collieries and improving the village and private mines; integrated development to achieve an economic operating scale and encouraging a diversified economy; rapidly exploiting and developing in the North west and South west; promoting productivity and efficiency; welcoming multi-sources and types of investment; setting up coal exchange markets; and the careful control of resources and the environment'.

Jan 11, 1996

By A Misra

In pursuit of solving the development rate problem the coal industry has investigated various development systems. While all the systems may improve the development rate they may not necessarily he cost effective. This paper carries out an economic analysis by developing cost models for present and future development systems for retreating longwall faces with particular reference to Australian longwalls. A critical cost analysis of various development systems is presented by taking into consideration all the costs associated with development systems. The costs have been divided into equipment, face and panel services, belt and structure, wages, roof and rib support, ventilation, consumables, power and maintenance. The annualised cost of various equipment has been obtained on the basis of depreciation rates prescribed by the Australian Taxation Office.

Jan 11, 1996

By R D. Lama, A Misra

One of the major factors restricting an increase in the productivity of a longwall mine is lower productivity obtained in a development panel. There has been a significant improvement in gate road development, particularly in mines requiring high density roof and rib bolting within 2 m of the face. Advance rates have increased from an average of 3 m to 5 m per shift in 1985 up to an average of 5 m to 10 m per shift in 1991. In mines at shallow depths with reasonably good conditions the increase has not been that significant. Advance rates have increased from an average of 7 m to 12 ni per shift in 1985 to an average of 12 m to 15 m per shift in 1991. Compared to the United States' (US) development rates, these are much lower. Extensive research work has been carried out to minimise cutting, wheeling, support setting time, and to optimise pillar length to achieve maximum advance rates. Pillar optimisation is very important in order to expedite adverse rates. This paper investigates various development rate technologies, both present and future, and optimises pillars to improve these dev elupment rates. Pillar optimisation is based upon time and motion studies conducted at mines in the Illawara region of New' South Wales, Australia, and the basic tools of arithmetic.

Jan 9, 1996

By P Cochrane

Our ability to generate information and transport it about the planet on super highways of optical fibre is about to change the way in which we communicate, work and live. There is not a single aspect of our future that will go untouched by the communication and computing revolution that Is now upon us. The change we are about to witness will overshadow the impact of the printed word, industrial revolution and physical transport. The next major wave of information technology (TT) development will focus on the delivery of information and experience on demand, in the right form, at the right time, at the right price, to fixed or mobile terminals anywhere, over networks of optical fibre, radio, satellite and optical wireless. Bandwidth, distance and time will no longer be significant cost elements as service and access become dominant.

Jan 7, 1996

By B. W. Lightfoot, Neill F. Arthur

"The AusIron process is a new development of the well established Ausmelt bath smelting technology(l). The development of this technology has been tied to the South Australian Steel and Energy (SASE) project which brings dedicated coal and iron resources together with this new technology. SASE is a joint venture between Ausmelt (40%), Meekathara Minerals (40%) and the South Australian Government through Mines and Energy South Australia (MESA) (20%). It will use a multiple lance furnace to process iron ore using steaming coal for both fuel and reductant.It is intended to build the simplest plant economically possible. Refinements such as preheating and prereduction of the ore are compatible with the technology but are not expected to be necessary in the first generation plant.The joint venture is negotiating with suitable partners for funding of the project through to commercial implementation at a target scale of2.5 mt/a of pig iron.ObjectivesAusIron aims to produce pig iron directly from steaming coal and from any of a variety of iron sources in a simple furnace system with a minimum of pre-processing of either coal or iron ore. Preheating and prereduction of ore are compatible with the technology but may not be necessary. The immediate aim is not to be the technology that uses the least quantity of coal to produce iron metal but rather the technology that uses the least number of dollars to produce metal.The chemistry of iron making is well known, probably better known than that of smelting of any other metal. Iron has been made for thousands of years and it is possible to make iron from charcoal and ore in a simple blast furnace the size of a beer barrel. The focus is therefore not making iron but rather making it more cheaply than it is made by current technologies. Large blast furnaces now set the standard and new technologies must perform better if they are to gain market share. It is still the cost of iron, energy units and capital going into these mega blast furnaces which ultimately set the market price for pig iron."

Jan 1, 1996

By Howard K. Worner

"In a rewarding career spanning nearly two thirds of a century, the author has worked at the frontier of such diverse fields as the creep of metals, structure properties and production of novel dental and surgical materials, molten salt electrolysis for titanium production, greatly improving the productivity of large iron blast furnaces and of oxygen steelmaking. While each of these has given great satisfaction, special thrills have derived from the development of new methods for the continuous production or refining of both ferrous and non ferrous metals. A rewarding segment was the evolution of various aspects of WORCRA technology. Unfortunately, several of these inventions have been ""ahead of their time"". Introduction""I am greatly honoured by the convening of this meeting to recognise my contributions to pyrometallurgy. My appreciation is the greater because this is the third Howard Worner Symposium; the first took place in the University of Newcastle in 1988, close to my 75th birthday. It was arranged by the local branch of The Australasian Institute of Mining and Metallurgy with the theme, ""Frontiers in Pyrometallurgy"". The second was organised by the University of Wollongong in conjunction with the Australian Academy of Science and the Australian Academy of Technological Sciences and Engineering; it celebrated my 80th birthday and, at my request, covered a broad range of topics under the heading of ""Recent Advances in Science and Technology"". Now, this very international meeting on ""Injection in Pyrometallurgy"" has been convened by the G K Williams Co-operative Research Centre for Extractive Metallurgy in my alma mater. I am both delighted and honoured that the cosponsors are the TMS (USA) and ISIJ (Japan).Dr Madhu Nilmani consulted me about the field to be covered and I readily concurred because ""injection"" has been of keen interest to me since the beginning of the 1960s when I began my pioneering work on sequential oxygen (or air) injection into flowing streams for both refining of blast furnace hot metal to steel and for the continuous smelting-converting of copper and nickel."

Jan 1, 1996

By J. W. Motter

Currently, virtually all new electric power generation systems under construction are designed with natural gas as the primary fuel. Factors driving these construction decisions involve sustained low prices for natural gas, environ-mental (and consequent regulatory) risks associated with the use of coal for power generation, and relatively high costs of construction for conventional coal-fired power plants. Despite the unarguable abundance of coal in the US. and worldwide, a fundamental question arises: What will be the role of coal in electric power generation in the 21st century? Congress, recognizing the vital and strategic importance of preserving the coal option for electric power generation, authorized the Clean Coal Technology Program. This pro-gram, with original funding in excess of $2,500 million, is intended to promote the demonstration and commercialization of a new generation of clean, efficient coal-based energy technologies through collaboration and partnering with private industry. The two technologies being demonstrated under this program which are the key to the continued use of this nation's huge coal reserves are coal gasification and the pressurized fluid bed. Either or both of these technologies, coupled with a combined cycle will pro-vide the continuing future coal option, while responding to increasingly more restrictive environmental standards. Recent Congressional budget-cutting efforts, however, could threaten the effectiveness of that model program, and ultimately other subsequent government-industry collaboration.

Jan 1, 1996

By H. R. Stoger

"In 1994 world trade grew by 9%, the fastest annual increase since 1976. Dry cargo shipping rates are at an all time high.Panamax size bulk carriers are receiving19 000 US dollars per day for trans Atlantic round trip voyages. This is good news for the ship owners but not such good news for the industrial users of ocean shipping.The main emphasis of this paper will be on bulk carriers, the charter market and what industrial companies can do to reduce their costs of ocean transportation which is critical to Canadian exporters. Let us look at the charter market in general.Bulk carriers come in four main sizes:1.The Capesize bulk carriers of 110 000 to160 000 tons that are primarily used to transport iron ore and coal;2.the Panamax bulk carriers of about 70 000tons dwt. This is the largest size (with a beam of 105 ft) that can transit the Panama Canal.3.the Handymax bulk carriers of 40/45 000tons dwt; and4.the Handysize bulk carriers of 20/35 000tons dwt.The handysize vessels are usually craned or geared and carry a variety of bulk cargoes including steel. Ship sizes have increased over the years and the mining industry now uses primarily capesize or Panamax bulk carriers.International chartering is conducted through an international network of shipbrokers. There is usually one broker representing the ship owner and another broker who represents the charterer. The major chartering centers are London and New York but a great deal of chartering activity is conducted in regional markets such as Hongkong, Oslo, Montreal and Hamburg.The Biffex Index or Baltic Freight Index is a good measure of dry bulk freight rates. The Biffex is composed of ten major routes. In May1995, the Biffex was at 2310 points. A year earlier it was at 1354, an increase of about 56%."

Jan 1, 1996

By Chisholm J. M

Why go to the CIS? The vast mineral potential of the Commonwealth of Independent States (CIS) has long been recognised, but it has taken the lowering of the iron curtain to open up the region to serious mineral development consideration by the Western World. The advent of a free market economy and the emergence of the Independent States with pressing needs for foreign investment has led to a greatly improved investment climate. Coupled with the desire for some of the more entrepreneurial resources companies to head the wave of investment to the region, this sequence of events has promised a great deal, but delivered only modest progress to-date. Potential gold project development has provided the major focus, for three reasons: the region is highly prospective for gold, gold projects tend to have a relatively lower start-up capital cost compared to base metal and fossil fuel projects and finally bullion or refined gold is more readily transportable and easier to sell.

Jan 1, 1996

By Jacque Trottier, Marcel Vallée, Gratien Gélinas

"Mineral exploration in Canada traditionally has gone from boom to bust in cyclical pat-terns following market and discovery cycles, but other endemic factors related to exploration financing and performance have contributed to the amplitude and recurrence of these fluctuations. In view of these problems, junior exploration is reviewed here in a marketing perspective, looking at the 4 Ps: Product, Price, Placement and Promotion.In the 1980s, MEDA incentives gave the shares of junior and mining companies significant price and promotion advantages, and contributed to excessive exploration funding. Many were thus led to minimize the basic values needed for continued investor interest: appropriate levels of product quality, sustained share value and customer satisfaction. Basic changes are needed to improve the marketing of junior mineral exploration in the future, with or without improved fiscal incentives. To be successful, the required improvements must come from the technical participants, but the financial partners also need to be involved.Exploration in Canada must be marketed with vigour, both in Canada and internationally. Exploration, mine development and mine production are essential to our economy. They are environmentally acceptable and they are welcome in Quebec and in most Canadian provinces and territories. Canadian exploration and mining are entrepreneurial industries that must take better advantage of their strengths and achievements and remove the shortcomings that hinder them: nobody can do it for them!"

Jan 1, 1996