Search Documents

By R. L. Merrifield

Cominco Snip is a 60: 40 joint venture of Cominco Ltd. and Prime Resources Group Inc. Cominco manages the operation. The mine site is located in a narrow mountain valley where Bronson Creek enters the Iskut River in Northwestern British Columbia. Access is by air only to the company's 1,500 meter airstrip. Milling at a designed feed rate of 300 tpd began on schedule in January 1991. Tonnage and gold production in the form of bullion bars from the gravity circuit and gold bearing float concentrate have exceeded design forecast. This presentation will examine many of the factors that influenced the final plant design inclusive of exploration findings, bench scale and pilot plant test results, environmental and social considerations, capital and projected operating costs and product transportation alternatives such as the operation's Hovercraft.

Jan 1, 1993

By B. M. McKay

The Walnut Creek Mine was developed in 1989 to supply lignite to the Texas-New Mexico Power TNP-ONE power plant. Being new, we had the opportunity to start from scratch and rethink many of the traditional methods of managing a mine operation. We had the opportunity to create a team environment, encouraging people to get involved and make decisions. The founding philosophy of the mine, "A Quality Product by Quality People", acknowledged that the key to a productive, quality operation was the people. This paper will explore methods employed by Walnut Creek in selection of team members, building the team and the relative success of these methods.

Jan 1, 1993

By W. Ellison

Worldwide development of commercial markets for FGD (flue gas desulfurization) gypsum is described and used as a basis for assessing potential overall market growth and regional demand foreseen in the U.S. during the 1990s. Diverse strategies are outlined for cost-effective substitution of this major supply from acid rain control retrofits (power plant scrubbers) for natural gypsum in the principal, existing markets: gypsum board and portland cement. Another focus of utilization forecasting is a key group of related. new-product advancements including floor screeds, mining mortars and various types of innovative construction products.

Jan 1, 1993

By J. R. Evans

Mining claims must have a discovery of a valuable mineral deposit to be valid. When required, a Federal government mineral examiner makes a determination of validity and recommendations thereof to authorized management officials. The examiner should show whether or not an existing mining operation, or a proposed operation have economic viability. This is accomplished through an analysis of legal entities, land status and use, geologic and mineralogic relationships, and mining, milling and processing techniques considered in an appropriate economic evaluation framework. A framework involves market and market entry studies, reserve analyses, all costs analysis, royalty buyouts, tax structure, discount rate of return, and escalation and risk factors. An income approach to value is then used by means of a simple or complex discounted cash flow (DCF) analysis to certify validity. Whether one claim is owned by a single miner, or hundreds of claims are owned by a large corporation, thorough, fair, consistent, and appropriate economic concepts should be applied by the mineral examiner.

Jan 1, 1993

By Bruce W. Cavender

In an effort to lower production costs and improve profitability, mining companies have adopted a variety of management practices emphasizing productivity and cost containment. One set of practices that has been used successfully in the manufacturing and electronics industries is "world-class manufacturing" (WCM). It is applicable to mining as well. World-class manufacturing is based on the twin concepts of "just-in-time" inventory practices and total quality control. A few mining companies have implemented quality control programs that are similar to WCM in some ways and substantially different in others. This article considers the use of WCM in the processing environment, although the techniques are applicable throughout a mining operation. The article is also mindful of the variety of customers to whom mineral products are sold. Industrial minerals producers may sell brand-name products to specific customers with exacting requirements, while metals producers often sell their fungible output on a faceless commodity market. Customer requirements are emphasized in WCM, and so the range of these requirements must be recognized. World-class manufacturing In any milling process, specific goals are set for product and process characteristics - concentrate grades, minimum daily throughput, moisture content, etc. WCM has two overriding objectives: the reduction of deviation from these standards, and the reduction of variability in all aspects of the process and product. By definition, reduction of deviation also includes minimizing plant downtime for repairs or process changes. WCM plants use just-in-time inventory practices and total quality control. WCM plants use these techniques to simultaneously improve productivity and reduce costs.

Jan 1, 1993

By Ted H. Eyde

Natural Zeolites are a less expensive and in certain applications a superior alternative to organic ion exchange resins. Mining and metallurgical waste streams are difficult to treat because the effluents which contain potentially valuable heavy metals such as copper, lead, and silver are often highly acidic and contain significant quantities of suspended solids. Under rigorous operational conditions, certain natural zeolites can remove the metals, which if desired can be recovered by either elution or conventional smelting techniques. There are significant differences in cation exchange rate, selectivity and capacity as well as resistance to either high or low pH, blocking cations and tolerance to elevated or depressed temperature and pressure not only between different zeolite minerals but between the same mineral from different deposits. Applying natural zeolites to the treatment of mining and metallurgical waste streams depends on matching the specific zeolite to the effluent by characterization of the zeolite minerals.

Jan 1, 1993

By B. Morris

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

Jan 1, 1993

By John E. Hamak

The U.S. Bureau of Mines estimates the identified helium resources of the United States at 630 Bcf as of December 31, 1990. This includes 295 Bcf of demonstrated reserves, 87 Bcf of demonstrated marginal reserves, and 42 Bcf of demonstrated subeconomic resources. The identified resources include 161 Bcf of helium in inferred and marginal reserves and 45 Bcf in inferred subeconomic resources. The identified helium resources contained on Federal lands are approximately 170 Bcf, including 32 Bcf in underground storage in the Cliffside Gasfield near Amarillo, TX. In addition to the identified helium resources, undiscovered helium resources in the United States are estimated at a most likely volume of 103 Bcf, with a maximum volume of 259 Bcf and a minimum volume of 41 Bcf. Also reported are 43 Bcf of helium in nonconventional and low-helium-content natural gases. Current extraction of helium in the United States occurs mostly from natural gases produced from the Hugoton gas area in Kansas, Oklahoma, and Texas, and the Riley Ridge area in southwest Wyoming. Helium extracted from natural gas in the United States in 1990 was 2.5 Bef. If current trends continue, some shortfalls in helium supply may occur in about 5 to 10 years.

Jan 1, 1993

By J. Wiebmer

Some thoroughbred racehorses are great routers (distance runners), others are sprinters. Some racehorses perform best on turf, others on dirt, and some in mud. To be a winner, you have to choose the right horse for the course. It's no different when looking at an electric cable shovel, a hydraulic shovel/excavator, or a wheel loader. Each loading tool has its own zone of application. To be a winner, you have to choose the right horse for your course.

Jan 1, 1993

By C. Patrick

Longwall face-to-face transfers can cost over $100 per minute in lost production potential and $100,000 for personnel and supplies. Such high cost makes extensive planning and control of the transfer process a critical necessity for the economic feasibility of longwall operations. This paper reports operations research techniques used for the analysis and modeling of longwall face-to-face transfers. Transfer data has been collected from companies who operate over 30% of the total U.S. longwall faces. Comprehensive sequence networks of existing longwall transfers were developed; simulation models of transfers under varying conditions were generated; and, the economics of general transfers and time-cost tradeoffs in the transfer procedure were investigated.

Jan 1, 1993

By J. A. Bleeck

A discourse on the relationship between industrial minerals and paper production, concentrating on high grade, ultra fine ground calcium carbonate (mean particle size less than 2 microns) and precipitated calcium carbonate. The scope of the paper encompasses four basic areas relevant to the topic: 1. A tutorial overview of the papermaking process with an examination of various industrial mineral components in that process; 2. A discussion of basic technological topics pertinent to the utilization of carbonate in paper with emphasis on the relative aspect. Of natural ground calcium carbonate (GCC) and synthetic precipitated calcium carbonate (PCC); 3. An overview of paper and carbonate market, in both the United State, and Europe with emphasis on (a) current status and future growth trend. Of such market., and (b) discussion of the major influences on growth and development of such market.; and 4. Identification and discussion regarding the principal producers in calcium carbonate markets serving the paper indu.try in Europe and North America.

Jan 1, 1993

By G. P. Larson

We define a specialized mineral market as follows: Specialized markets occur where a low volume of a given mineral is used to convey a large benefit to a specific product. Sales of these value added minerals to small markets generally require a different marketing approach than bulk or commodity markets for traditional minerals. Specialized markets are differentiated by several characteristics as listed in Table 1. [Table 1-Characteristics of Specialized Markets 1. Long-term sample evaluation 2. Small volume markets 3. Highly controlled properties 4. Customized specifications 5. Technical selling effort] Many of the specialized markets require long term evaluations before sales can be made. This can vary greatly depending on the type of industry and ultimate end-use of the final product. In some cases, complete evaluations may take from several weeks to years. Length of sample evaluation has no relationship to size of market. That is, the total market may be quite small or fairly large (e.g. from a few hundred pounds to a few million pounds). Uniformity of value added minerals from lot to lot is an extremely important characteristic for these markets. Variations that are of no consequence to one industry (or application) cannot be tolerated in another. This has led to customized specifications and test procedures for specific markets and applications. Because of the greater uniformity and customized specifications, the need for greater technical selling effort is required. This is particularly true in the initial developmental phases and contacts as well as in maintaining the account after the initial order. A small entrepreneurial organization can be used to advantage to achieve goals of sales and profit to these types of markets. The large commodity or bulk producer's sales and marketing organizations are not ordinarily equipped to give the necessary service or technical assistance to the specialized markets. The organization usually required for this type of marketing is given in Table 2. [Table 2- Specialized Marketing Organization Requirements 1. Flexible approach to technical and marketing problems 2. Versatile background in a broad range of industries 3. Laboratory backup when necessary 4. Marketing expertise 5. Technically competent management] In developing specialized markets, a flexible approach to both technical and marketing problems is necessary in understanding the needs and requirements of the industry and the applications involved. This flexibility is also helpful in adapting existing products to new market areas. Having knowledge of a range of industries as broad as possible can be very helpful. It often happens that a product developed in one area or industry can lead to its application in a different area with excellent results. Laboratory assistance for a wide range of tests and test procedures is an important asset in any development program for specialized markets. Laboratories can also assist in competitive evaluations. Marketing expertise and a management with some degree of technical understanding are necessary in to assign proper cost/ benefit ratios to a proposed new product or application of existing products. This is important since the total market volume can be small and the time required for initial contact to first sale can often be lengthy. Also, management's technical and marketing expertise is required in evaluating all possible options that can be considered viable when an application is presented. Once an organization of this type is in place, it is then possible to determine the needs of the marketplace, including when various minerals might have to be customized to fill those needs. There are generally two methods of marketing, as noted in Table 3. [Table 3- Method of Marketing 1. Product Driven -Develop a product with certain desirable properties and try to find a market to utilize those properties. 2. Market Driven -Know market well enough that when a need arises, it is possible to identify a product that will satisfy the need.] These approaches are not mutually exclusive and can be used at the same time. Marketing a value added mineral generally requires the "market driven" approach. Hence, the importance of a knowledgeable management as outlined above. To determine where needs and opportunities exist, several approaches can be used. Table4 lists some of the methods employed.

Jan 1, 1993

By Robert B. Parsons

"During hard times, the focus on tax issues makes a slight change in direction. Mining companies contemplate the tax treatment of transactions and circumstances which are the product of a difficult financial environment. Some of these issues are discussed in this month's edition of Tax Notes.Every industrial sector in Canada is undergoing a major restructuring of some form, and the mining industry is not an exception. The longest recession since the Great Depression continues to affect the economy. Mining firms seek to bring their debt/equity ratios into line, and try to replenish depleted retained earnings by selling assets. This month, Tax Notes briefly examines some of the tax issues which are generally encountered during the course of such a restructuring process.Debt SettlementOne question which commonly arises during hard times concerns the tax treatment of a "" gain "" realized by a debtor on the settlement of a debt. Consider, for example, a simple situation where a creditor wants to protect itself from further losses, and makes a deal with the mining company to accept a cash payment of $8 million in full settlement of a $10 million loan. In financial terms, the debtor has made a $2 million gain on the settlement of the debt. What is the tax treatment of that gain?The Income Tax Act (the Act) contains provisions in section 80 of the Act and in section 5400 of the Income Tax Regulations which deal specifically with this question. First of all, it is noted that the $2 million gain is not brought directly into income for tax purposes. However, as indicated below, the gain could affect the debtor's income indirectly to the extent that certain of the debtor's tax pools must be reduced by the amount of the gain."

Jan 1, 1993

By David R. Wilburn

The U.S. Bureau of Mines investigated the resources, costs, capacities, market relationships, and short-and long-term supply of bauxite, alumina, and aluminum. The 45 evaluated mines and deposits in 14 market economy countries (MEC's) have a demonstrated resource of 8.4 billion mt of bauxite and an aluminum content of approximately 2.1 billion mt. Developed world bauxite resources and existing primary aluminum smelting and refining capacity are sufficient to satisfy demand through at least 1995, when additional properties (with higher cost levels) would need to be developed to satisfy future demand levels. It is anticipated that new alumina or aluminum production most likely would occur in developing regions with large bauxite potential, low-cost energy sources, and a close proximity to refining and/or smelting capacity. An increase in aluminum recycling capacity would help meet future demand increases. A series of network model supply analyses was performed for the period 1988 through 2000. Based on announced future production levels and assuming demand grows at the level outlined in the analyses, model results indicate there is sufficient material available to meet demand until 1998, where-upon an aluminum shortfall is projected. Additional analyses investigated the effect of a reduced growth rate of demand and regional production variations in Venezuela on the international aluminum industry.

Jan 1, 1993

By C. J. Bise

One area of study for the Coal Mine Injury Analysis project was to illustrate how loss control can be used as a foundation for mine safety training. After an initial review of the principles of loss control, the instruments often used for worker/worksite appraisal, such as incident reporting, analysis, and investigation, workplace observation, worksite inspection, and safety audits and checklists were evaluated for their effectiveness. The findings were then applied to the continuous-miner worksite at several mines to modify the techniques for use in a highly dynamic man/machine work environment. Before the information gathered from the review of the various continuous-miner worksites was presented at the annual retraining sessions at five mines, a trainability analysis procedure was developed to separate training shortcomings from those problems resulting from improper equipment design or unsatisfactory working environments. Also, several microcomputer-based training programs were developed to aid in conveying the loss-control concepts to the trainees. Finally, the results from the implementation and evaluation of the loss-control-based training programs were documented, including the complete training script for one of the case-study mines. The procedures outlined in this study will aid mine training specialists in developing focused, pro-active accident-prevention strategies and training programs that are based on sound loss-control principles.

Jan 1, 1993

By Roy S. Nutter

The automation of coal mining must occur in a manner that is economically beneficial to the industry and that enhances the safety of the underground and surface workplaces. The work at WVU over the last five years in applying expert systems and neural network controlled autonomous robotics provides the mining industry with tools that when properly applied should clearly lead to mine-wide management and operational improvements and should also contribute to a higher awareness of safety issues by all work crews. This work includes the development of MMSS (Mine Management Support System) and the detailed development of autonomous robotics utilizing neural networks for mining systems.

Jan 1, 1993

By Jr. Boyle

This report analyzes the availability of chromium in the form of ferroalloy products (high-carbon and low-carbon ferrochromium and ferrochromium-silicon) and chromite products (metallurgical, chemical, refractory, and foundry sands) in market economy countries (MEC's). A total of 873.5 Mmt of in situ material, containing 202.5 Mmt of chromium, in 10 MEC countries was analyzed for availability as of the January 1989 study date. Extraction and beneficiation of this in situ material would result in 475.4 Mmt of marketable chromite products. As analyzed, 288.5 Mmt of these chromite products would be available for export or for internal chemical and refractory use and 186.9 Mmt would be smelted in-country to produce 74.3 Mmt of high-carbon ferrochromium, 3.9 Mmt of low-carbon ferrochromium, and 2.0 Mmt of ferrochromium-silicon, all available for export. A network flow model, which includes centrally planned economy countries (CPEC's), was also constructed to analyze world chromium supply and demand interactions for the period 1986 through 1994 and to address a hypothetical North American embargo on direct imports of all South African chromium products beginning in mid-1990. The model shows capacity constraints developing in the MEC high-carbon ferro chromium industry in 1987 and a possible subsequent overreaction by the industry in terms of new capacity additions. The results suggest that sufficient chromium is available to North America should an embargo on direct imports from South Africa be imposed by its governments. However, the effect on export revenues in South Africa is relatively small, and timely increases to world ferrochromium, chemical chromite, and foundry sand chromite capacities would be required.

Jan 1, 1993

A major highlight of Fiscal Year 1993 is the completion of a new research facility dedicated to the advancement of robotics research and development. This new facility brings to the U.S. Bureau of Mines one of the largest and most unique facilities of its kind in the world. Located at the Bureau's Pittsburgh Research Center, the facility consolidates under one roof, all of the resource requirements of a first class automation and robotics research program. The Mining Robotics Development Center (MRDC) is the result of a major renovation of a large under-utilized warehouse-type structure and brings together the laboratories and offices previously housed in five separate buildings scattered throughout the Pittsburgh Research Center's 238-acre site. This new facility will support the computer-assisted mining research program, a high priority, multi-million dollar program that is expected to have a high impact on the health and safety of miners and coal productivity.

Jan 1, 1993

By Orlando Martino

This regional report covers the mineral industries of Canada and 40 countries and areas in Latin America and the Caribbean Basin. Also included is a brief description of the mineral potential of Antarctica. The Latin American region encompasses an area twice that of the United States. Latin America and Canada have a rich and diversified endowment of mineral fuels, metals, and industrial minerals. Tables 2 and 3 provide a summary view of the importance of Latin America and Canada's output of its major mineral commodities in world mineral supply in 1989 and 1990.

Jan 1, 1993

By Mark L. Chatman

The U.S. Bureau of Mines studied mineral resources of the Dragoon Mountains Unit, Coronado National Forest (54,264 ac), Cochise County, AZ. This study involves literature and field investigations with a focus on mine and prospect sites, which were inventoried and mapped; maps are contained in this report. Rock-chip samples were taken from mineralized zones and from some mine dumps; assays of the 477 samples are in appendixes. Mineral deposits are genetically and spatially related to Tertiary-age granitic intrusive activity. Most metallic mineral deposits are also strongly fault-controlled. Colored marble resources (270,000 st) are valued at approximately $6.5 million, if all were to be developed and sold as landscaping material in the form of-marble chips. However, with current demand, it is unlikely that regional markets could absorb all this material. Economic modeling of copper-zinc-silver skarns suggests none would be profitable to mine and capitalize at early 1993 commodity prices, mainly due to the small estimated size of the deposits (30,000 st to 40,000 st maximum). In the entire Unit, 140,000 st of inferred subeconomic skarn resources were estimated by USBM on five different skarn trends; measured subeconomic resources are negligible. Exploration by industry, 1992, was small-scale (on 2 skarn trends and 1 auriferous fault zone).

Jan 1, 1993