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By O C. Aitken

Mining project developers are committed to taking on all the challenges and obligations of financial risk management. It is interesting that our current models of project finance have not changed markedly in principle for some 700 years, yet the rules which prepare the way for effective project assessment and subsequent loan management still do not seem to be well understood by project or corporate developers. Probability and gravity fill the opposing trays of the golden balance of financial risk. Understanding the relationship between these opposing, but intimately related elements is critically important for successful risk management. It is important to move beyond the qualitative approach and use quantitative methodologies to measure the financial impact of the occurrence of each major risk. We live in a world where the only constant is change and thus it is not surprising that a bankerÆs life is still governed by assessing, measuring and pricing risk. Banks are attracted to funding well managed companies with strong cash flow projects. But we are more risk averse compared with the credit appetites of late last century. This attitudinal shift has resulted in tougher term sheets for the early 21st century, encompassing more conditions, warranties, undertakings and stronger cash sweep provisions. Banks require well balanced portfolios to achieve an acceptable spread of risk, thus there is a more restricted market for small company lending than that available to large multi-project corporate entities with less concentrated risk profiles. Because of this focus, junior company debt finance remains comparatively expensive and especially so for more challenging geographical and political environments.

Jan 1, 2004

This Section describes four alternative methods for load testing of drilled shafts: high strain dynamic test (HSDT), rapid load test, static load test, and bottom load test. Until recently, static load tests were the only method available for verifying the capacity of a drilled shaft. However, because many drilled shafts carry very high design loads, the static load test was prohibitively expensive. The alternative methods, HSDT, rapid load testing, and bottom load testing are gaining acceptance because of their lower cost and faster implementation. However, these different methods do not necessarily yield the same results. This section describes the load testing methods and the differences that may occur when interpreting the test results.

Jan 1, 2004

A series of petrological studies were carried out on the characteristics of alteration and mineralisation in mainly structural-controlled (Deep Star, Meikle, Deep Post) and predominantly lithological-controlled (Post-Betze-Screamer and West Leeville) gold deposits in the northern district of the Carlin trend, Nevada. Alteration and mineralisation in these deposits are hosted in a sequence of calcareous clastic units of the Devonian Popovich Formation, into which have been emplaced a number of Jurassic intrusions, and syn- to post-mineral Eocene dikes. Four hydrothermal events have been recognised in these deposits: an initial Devonian base metal system and early diagenesis; a Mississippian stage of alteration in conjunction with burial metamorphism; contact and hydrothermal alteration and base metal-gold mineralisation associated with the emplacement of the Jurassic intrusions; and a Carlin-style gold system related to Eocene magmatism.

Jan 1, 2004

By S. P. Cashin, D. Kashuba, W. Esplin

Barrick has had 6 autoclaves in operation at the Goldstrike Mine, North of Carlin Nevada, since 1993. The 6 autoclaves operate in parallel, processing slurry of gold ore. The gold in the ore is predominantly associated with, and encapsulated by, sulphide minerals. It is necessary to oxidize at least 90% of the sulphide mineral before the gold can be concentrated using a cyanide/carbon-in-leach (CIL) circuit. Sulphide oxidation chemical reactions occurring in the autoclaves are exothermic; however, the sulphide content in the ore is not high enough to operate the autoclaves in an auto-thermal mode. Heat from steam is added to the first 2 of 5 autoclave compartments to initiate the sulphide oxidation reactions. The steam used to heat the autoclaves is supplied by three boilers, which are fuelled with propane gas. The completion of a few operations and maintenance projects in the last 2 years has resulted in a 50% reduction in propane energy requirements. The autoclave operating temperatures were minimized. Excess oxygen addition was held as low as possible. The material of construction for the compartment walls inside the autoclaves was changed from brick to Titanium metal. And, the speed of the autoclave slurry agitators was increased. All of these activities had an impact on the propane energy requirements of the autoclaves. Presented below is a description of the autoclave systems, and a discussion of how the energy needs were reduced, resulting in significant operating cost savings.

Jan 1, 2004

By Finlay Campbell

Nickel laterite pressure acid leach plants and reduction roast plants have had a checkered history in their engineering, construction, startup and operational reliability. Many potential projects have been the subject of detailed studies over the last thirty to forty years but relatively few have advanced to commercial production. Four reduction roast plants are currently operating, an additional one was partially constructed but never completed, and another was started up in 1974 and shut down after 12 years operation. Three acid leach plants have been built and commissioned in the last five years, trying to follow the example of the Moa Nickel plant in Cuba. An additional acid leach plant project is currently on hold, following limited construction work, its future subject to review by the owner because of potential cost over-runs. This paper attempts to discuss difficulties that may be encountered as a project is developed and will address factors which may affect production ramp-up schedule, long term production performance and overall production success. Comparisons are made with ramp-up performance at other large metallurgical plants that employ some comparable unit operations. Keywords: Caron, PAL, nickel laterite ore, ramp-up, reliability, process development, equipment design, step-out, commissioning, startup.

Jan 1, 2004

By C Gormley, G Lane, J Kwak, A Hopkins

Complex processing plants present a myriad of safety issues to the design engineer. The extent to which the design engineer manages to lay the foundations for a safe plant ultimately sets the stage for life long safety performance. Industry traditionally measures engineering safety performance by indicators such as Lost Time Injuries, Restricted Work Case Injuries, Overall Incident Frequency Rates, etc. While these measures are useful indicators of performance for the construction, commissioning and operations phase of a project, they do not necessarily drive the most appropriate behaviours for Safe Plant Design. Achieving an inherently safe design requires a diligent focus on low frequency, high consequence events. First and foremost the engineering team needs to have a design culture and methodology which leads to a plant which is as close as possible to being inherently safe. Such a culture might come from an organisation that has æmindfulnessÆ about safety, and which is nurturing a culture where warning signs are recognised and addressed. This paper explores the development of mindfulness and warning signs in design.

Jan 1, 2004

State ownership of minerals results in domestic legislation regulating mining operations. The mining industry today is dominated by a number of transnational companies, each subject to internal and external pressures for a more responsible approach to resource management. Thirty to 40 major companies are responsible for the bulk of the worldÆs mineral production with the balance coming from state-owned, second tier and junior companies and from artisanal miners.Mining companies operating within competitive commercial environments formerly focussed on mineral production. Companies worked to standards and expectations then current which largely failed to recognise the impact of mining activities on community interests. The mining industry acquired a reputation for arrogance, and for placing profitability ahead of issues considered equally or more important by local communities. Current perceptions continue to reflect disquiet about industry attitudes towards traditional land-owners and access to their lands, to environmental contamination, handling and storage of waste materials, utilisation of water and electricity, and to rehabilitation of worked out areas. Major international mining companies concerned at continuing criticism sponsored a series of initiatives with the objective of providing guidance on working harmoniously within the community. Industry commissioned studies, performed through the agency of disinterested parties, resulted in May 2002, in a Declaration being issued at an International Conference in Toronto. The Declaration was based on, but did not reflect all of the recommendations of the MMSD Report, æBreaking New GroundÆ.This paper considers whether benefits would result from the negotiation of a legally binding and enforceable international protocol encompassing the objectives of the MMSD report or the Toronto Declaration. It attempts to identify the problems associated with implementing and enforcing international mining law, should it be introduced. Aspects of mining operations having cover under customary international law are reviewed, as are rights, obligations and remedies for breaches of national mining law. Conclusions are drawn based on established procedures relating to implementing international agreements. The continuing ability of mining companies to operate within communities will result from each satisfying the communityÆs expectations rather than by complying with largely unenforceable legislation.

Jan 1, 2004

By G. Winkel

"Safety conditions in industry have greatly improved over time. However, around the world, in Canada, and in each province or territory, people are still the victims of serious industrial accidents. The increasing safety of people at work then continues to be an imperative in industry today. In addition to protecting people, safety has been shown to make good business sense in any industry.The road to safety improvement is built on establishing a culture of safety that forms the basis for how work gets done in a company. Most importantly, an effective safety culture is built on the full engagement and participation of workers and leaders alike, who share in a vision for safe work performance where “no one gets hurt” and “everyone is a leader in safety.”Let’s learn together on how we can make a safety culture happen. The resulting bias for safety will ultimately save lives, and fulfills our moral objective to strive for safety excellence. IntroductionWe have the good fortune of living in democratic countries where freedom and the value of human life are key beliefs. These beliefs translate into the moral obligations and laws that we value and uphold in our society and life today.A minesite or workplace is simply a necessary part of our society where people earn a living. It is a place where our moral obligations and laws equally apply, a place where human life is of ultimate importance and value. In the early years of industry, this value has not always been evident. Take this description of a tragic accident reported in a coal mine on December 8, 1879:“Oliver Thompson, shaftman, aged 35— While taking wooden partitions out of a ventilation shaft, he fell off the work platform a distance of 100 yards, there did not appear to be anything unusual to account for this accident.”"

Jan 1, 2004

By M. Shapiro, L. A. le Grange, B. Henning

Effective pyrometallurgical process vessel design requires accurate assessment of the heat fluxes through the walls of the furnace. This is particularly important for freeze lining operation which is designed to protect refractory materials exposed to chemically corrosive molten contents, or facilitate high temperature operation when the refractory materials are used at conditions close to their service limits. Numerical modelling of fluid flow and heat transfer in process vessels is often used to aid in the design of process vessels. Sophisticated models are used to analyse the three dimensional flow and heat transfer predicting the effects of electrical heating, magnetic stirring, buoyancy, shear forces, various cooling effects and ultimately heat fluxes at the walls of the furnace and refractory. Traditionally these models are applied to the separate single fluid systems in a vessel such as the freeboard region including the arc, the slag region and the metal bath. Boundary conditions such as shear forces and heat fluxes between connecting regions such as the slag and metal bath are either estimated or carried over from separate solutions. Shortcomings in these traditional approaches include the estimation of sometimes critical boundary conditions leading to unreliable heat flux calculations. Also when boundary conditions are carried over between solutions, the process is difficult to set up, time-consuming and finally not fully coupled. In this paper the definition and results of a fully integrated numerical model of a complete arc furnace are presented. The most important mechanisms acting in an arc furnace were considered, including the fields of electrical potential, current, magnetism, momentum, heat transfer and radiation. Temperature dependant properties included electrical conductivity, density, viscosity, and thermal conductivity. The geometry consists of the freeboard, the arc, slag, metal baths and different refractory regions. Although the combined model of air, slag and metal would be defined as a multi-phase problem it is not solved as such. Instead the different fluids are separated by sets of special solid baffles. These baffles allow the implicit transfer of current, magnetism, heat transfer and shear forces between the different fluids and disallow mixing of the separate fluids. The strengths of the integrated model are threefold: Firstly, it provides robustness in defining the geometry and boundary conditions for the overall model. Secondly, it provides the capability to switch on and off individual mechanisms such as buoyancy, magnetic stirring and shear forces in order to observe their individual importance. Finally, it provides a useful tool in the design process through its ability to obtain results of parameter changes in short time scales.

Jan 1, 2004

By R. W. Nice

Presently about 60% of the world's nickel resources are tied up with lateritic ores while about 25% of the world's nickel is produced from sulphides. Based on this the industry has to focus on improving lateritic nickel economics in order to maintain the high use of the metal worldwide. In 1997 three junior mining companies in Australia organised finance against all odds and commenced development of three separate nickel and cobalt extraction plants treating lateritic nickel ores. All three projects utilise similar pressure acid leaching (PAL) technologies while each has unique metal recovery technologies All projects have experienced numerous processing and maintenance related difficulties such that full ore throughput has been reached by only one operation after five years. This shortfall in performance has caused the owners considerable angst and financial pain. In 2000 Cawse went into receivership and was purchased by an international corporation. Recently, Bulong also went into receivership and has undergone an orderly shutdown, awaiting sale to a new buyer. Murrin Murrin has settled with its financiers and is in a position to operate as planned for many years forward. This paper will discuss a number of the technical difficulties that affect the ore preparation, PAL and solution treatment circuits of these plants. The objective is to identify the cause of some of the difficulties and propose possible solutions so that the next generation of lateritic operations can emerge as technically and, more importantly, economic successes. A number of these process improvements have been identified by the existing operators and in many instances have been or are being implemented into the existing operations.

Jan 1, 2004

By J R. Robinson

Prior to mine development, exploration drilling within the Luise Caldera on Niolam Island encountered gold mineralisation to the northwest of the main Minifie and Lienetz orebodies. This mineralisation was referred to as the Kapit orebody, and ten diamond drill holes were subsequently completed over the area to investigate its economic potential. Several significant mineralised intercepts were returned. These were interpreted using the orebody model developed for Lihir at that time which invoked a strong horizontal control to mineralisation. Additional consideration was given to the elevated geothermal temperatures encountered, the proximity of the mineralisation to the ocean, and its perceived depth below sea level, resulting in the Kapit area being given a low priority for follow up investigation. As a result, no further work was completed over Kapit until recently. The Kapit orebody was the target of an intense diamond drilling programme during 2002/2003. Data from this latest round of drilling has significantly improved understanding of the mineralisation and associated geology. The significant orebody now delineated at Kapit substantially differs from past interpretations, and the latest data has upgraded its economic potential. A resource estimate and other critical studies completed in 2003 enabled an updated reserve statement to be issued in February 2004 including the Kapit mineralisation for the first time. Total Probable Reserves at Kapit stand at 25.2 million tonnes (Mt) at 5.28 grams of gold per tonne (g Au/t), for a total of 4.3 million ounces (Moz) of contained gold.

Jan 1, 2004

The mining industry has expanded significantly in the Pacific Region over the past two decades through a mix of new developments and brownfields expansions of existing operations. Despite this overall success there are also a number of well publicised examples of less than successful minerals ventures. These problem developments highlight the fact that success cannot be taken for granted and that rigorous planning and attention to detail is essential. The dominant growth has come through expansion of existing businesses, notably alumina, iron ore and coal, achieved through both efficiency gains on existing plant and step change capacity additions such as new mines and/or expanded processing plant. This expansion has largely been linked to increased market opportunities. The major issues are the quality and extent of the host resource, achieving the market targets, and the efficiency of the expansion effort. There can be also a range of site specific issues which need to be addressed. The development of new greenfields operations is often more complex as it can bring a wide range of new issues. Depending on the nature of the development, and the companies involved, these can extend from initial financing through to obtaining a market position. Incorporating major new technology and/or establishing infrastructure and attracting staff to remote locations can also add significant challenges. This paper outlines many of the critical factors which need to be considered prior to proceeding with major expansions or greenfields developments. These will be linked to a number of developments in the region over the past decade.

Jan 1, 2004

By R. L. Grayson, T. L. Dickinson, C. G. Anderson

Sponsored by the EPA, USGS, DOE, and NSF through the Committee on Earth Resources, the National Research Council’s Committee on Material Flows Accounting of Natural Resources, Products, and Residuals, created in August 2002, studied the value that material flows accounting, which can track the flow of a material from the time it is extracted to its ultimate disposal, may provide for making better integrated economic, social, and environmental policy decisions. This could be a crucial technology for the mining industry to incorporate. This paper will recount the statement of tasks, the study process, and the science-based conclusions and recommendations reached.

Jan 1, 2004

By O. Bernal, G. Velarde

Sociedad Minera Cerro Verde, majority owned by Phelps Dodge produces 200M lbs per year of LME Grade A copper from low cost leaching of secondary sulfides and SXEW processing. Central to the success of Cerro Verde has been the continuous improvement of leaching practices which currently yield over 80% recovery of the contained copper in the ore. This recovery has been achieved by careful attention to operational practices and leaching process fundamentals. This paper details the development of the concept of “Lixiviant Request Rate” where by solution is applied at an optimal rate for the grade, mineralogy, and the point in the leach cycle. Also paramount to the success of Request Rate technology has been the development of irrigation practices such as drip irrigation and irrigation grid design. These developments have ultimately resulted in improved copper production, decreased sulfuric acid and water consumption, decreased pumping cost, and more consistent PLS grades.

Jan 1, 2004

By Norman Paley, John Kells

The climate and location of the Red Dog Mine present several challenges to blasting operations. The mine is located north of 68º latitude, in an area of continuous permafrost. Ground temperatures are below freezing year-round and air temperatures range from -40 to 70°F (-40 to 20°C). Because there is no overland access to the mine, the entire year’s supply of bulk explosives, approximately 7,000,000lbs (3,175,000kg) is shipped in by barge during the 100 day shipping season when the port is ice-free. The first week in July is the earliest that new product arrives at the port. Emulsion usage is maximized from mid April through October when surface water fills the blastholes during drilling. This necessitates that a considerable portion of the bulk explosives are stored for 10 months or more before usage. The emulsion is routinely pumped from the ISO containers at temperatures of 20ºF (-7°C). The mine engineers conducted a testing program during the 2001-2 blasting season to identify the bulk explosives best suited for the conditions at the mine. A secondary goal was to decrease the usage of sensitized emulsion, as this is the most difficult portion of the explosives order to ship. To ensure repeatability when transferring the results to the day-to-day blasting operation, the majority of the testing was incorporated into normal blasting operations in the field. The mining methods used at Red Dog Mine make direct fragmentation analysis impractical and performance testing in the field relied primarily on VOD measurements. The products were also tested for their ability to be pumped in cold temperatures.

Jan 1, 2004

By M. Pearson, L. Zunti

Pressure vessels in hydrometallurgy and many chemical process industries throughout the world require the use of specific lining systems to protect the parent vessel materials from corrosion and/or abrasion. Typically, these lining systems are required for processes that are corrosive and operate at elevated temperatures. Two basic lining system types arc: 1) refractory linings in conjunction with an impervious corrosion resistant membrane, and 2) metal-clad vessels consisting of titanium or other corrosion resistant metal bonded to a carbon steel shell. Operating conditions play a key role in selecting the type of lining system to be utilized for a specific application. Lining systems in turn have an impact on the process vessel size, which ultimately affects the capital cost of the vessel. The capital costs for each type of lining system must be considered for each application, as well as maintenance concerns, quality control, and delivery. It is clear that operating conditions play a key role in the final selection of lining systems utilized for specific projects based on initial capital cost, life-cycle maintenance costs, and overall service life. This paper will examine the fundamentals of each lining system, their inherent technical strengths and weaknesses, and present relative cost comparisons for each lining system as they apply to specific operating conditions and vessel sizes.

Jan 1, 2004

"After the non-destructive testing is completed, the data must be compiled, evaluated, and interpreted. During this process, the data may indicate that there is an anomaly warranting further investigation, which may eventually be determined to be a flaw or defect. The definitions of an anomaly, flaw, and defect can be described as follows (after Amir, 2002):Anomaly - Any irregular feature identified in the NDT graphic results. An anomaly may be due to the testing instrumentation (such as noise), to the means used to perform the test (e.g. access tube debonding in CSL) or to the shaft itself. It is the responsibility of the NDT practitioner to gather and analyze all relevant data and try to resolve every anomaly before it is declared a flaw or defect.Flaw - Any deviation from the planned shape, size and/or material of the shaft.Defect - A flaw that, because of either size or location, may detract from the shaft’s intended performance or durability. The geotechnical engineer and the structural engineer are jointly responsible to decide which flaw comprises a defect.This section describes the process of evaluating the data, determining if an anomaly exists, and if so, deciding whether the anomaly is actually a flaw or a defect. If the anomaly is determined to be a defect, its effect on the performance of the shaft must be evaluated, and if necessary, the can be re-engineered, repaired, or replaced."

Jan 1, 2004

By J. Kemeny, B. Norton, T. W. BoBo

Digital image analysis systems to quantify particle size of crushed materials have successfully been applied in large-scale mining operations throughout the world. Particle size measurement at various crushing and sieving stages, especially in aggregate production, will facilitate the industry’s desire and need to achieve higher levels of process control and automation. This paper will 1) summarize applications of digital image analysis in the industrial minerals industries and introduce the Split-Online technology; 2) detail an actual recent test application of digital image analysis that ultimately lead to the installation of an automatic, non-invasive particle size distribution monitoring system; 3) document how this information is being applied: and 4) summarize the new Split-Online Aggregates Module now available.

Jan 1, 2004

By Craig Byington

The stress-field orientation mapping and analysis (SOMA) technique for determining the operative stress field near mine workings and its relationship to various fracture sets is described using Dickenson-Russell Coal Company's Laurel Mountain mine as an example. Carried to its practical application, this technique ultimately defines the optimal orientation for the mine workings wherein pillars, rather than rock bolts or other roof support methods, dominantly shoulder support of the highest-probability, potential, roof-fall blocks. It also provides a predictive tool describing local variability in rock deformation and in secondary roof support methods. Fracture discontinuities within a rock mass, either as pre¬existing natural fractures or as mining-induced fractures, are uniquely necessary for every brittle-deformation ground failure including roof falls. Prediction and mitigation of roof falls requires quantifying the interaction between the fracture sets and the operative principal-compressive¬ stress-axis orientation (olo). The SOMA technique utilizes the interaction between fractures and 61o, specifically their dilation or closure, to calculate the orientation of 610, and to estimate the orientations of 62o and o3o. A stereonet program is used to organize and statistically analyze the fracture data, and then to determine the optimal orientation for the mine workings. The final step in the SOMA technique involves modeling the Laurel Mountain mine using a 2-D, finite-element, modeling program. This assures that the interpretations regarding the optimal working orientation closely match the deformation features observed in the mine. It also provides a predictive tool describing highly variable stress and strain partitioning, seemingly erratic rock-bolt failures and the interactions between different sets of mine workings within different coal seams. The critical importance of including the fracture sets is well illustrated in the Laurel Mountain mine where the effects of earlier mining of an underlying seam is contrasted in both a fractured and otherwise identical non-fractured model to illustrate the consequences of ignoring fractures in a predictive roof-fall model.

Jan 1, 2004

By A. Haile, A. Poole

During 2001-2002, the Granny Smith Mine of Western Australia undertook the development of a planned circular failure. Excavation took place in an interim pit wall that intersected the transported sediments, lake clays, and palaeo channel sands that overlay the deposit. The purpose of the study was to refine feasibility level slope parameters used for the initial design of the Wallaby pit, with the intent of increasing the overall slope when excavating the ultimate pit limits. During excavation, the geological and hydrogeological characteristics were studied in detail and data was collected using area-specific instrumentation and monitoring. Failure occurred in mid February 2002, at which time a detailed survey of the excavated slope using laser technology was conducted to provide geometric information suitable for back analysis of the material shear strength. The slope failure and associated information was analysed by geotechnical consultants. The revised shear strength and hydrogeological parameters were then applied to design the final pit walls. The slope redesign provided a cost saving of approximately seven hundred thousand US dollars. Design, slope formation, back analysis, the geology of the clay units, the hydrological environment, planned infrastructure, management and safety issues, and the on-going slope performance of the final slope are discussed.

Jan 1, 2004