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By F. M. Benavides

The mining complex being analyzed consists of four mines and two processing plants located in an area where there are several existing modes of transportation. Figure 1 shows a map of the general layout of the four proposed mines and the two existing processing plants. The mines are identified by the numerals "I" through "IV" and the plants by the letters "A" and "B". A proposed overland conveyor would collect the product from all four mines and convey it to Processing Plant A. Alternate transportation systems are as follows: Railroad transport from Mines I and II to Plant B; Highway trucking from Mines I and II to Plant A; Off-the-road truck haulage from Mine III to Plant B and from Mine IV to Plant A. River transportation from the mines to the processing plants was not considered in this study under the assumption that the high capital investments for the loading and unloading facilities, in addition to difficult traffic problems, would make this mode of transportation unattractive.

Jan 1, 1980

By Helmut Goehring

Surface mining has been used primarily where deposits of minerals were exposed or close to the surface. Surface mining can, therefore, be considered the oldest branch of mining. As the most accessible deposits became uneconomical because of the lack of suitable high capacity conveying systems, deep mining took its place. Only in the twentieth century was this trend reversed as high capacity production and conveying systems were developed. This rapid development was triggered by the steadily increasing demand for raw materials and fossil fuels, as well as by the ever increasing ratio between overburden and deposits.

Jan 1, 1982

By Ernst Raphael

Mechanical drives of belt conveyor drives have experienced a huge amount of improvements concerning technology, manufacture and product structure that reduced investment and maintenance cost significantly. Most of these improvements were of technological nature in the'70s and '80s of this century; whereas, the present decade requires products that meet technical excellence as well as commercial advantages such as quick delivery, low cost and reliable spare parts supply. The best approach to meet these requirements is a highly modular and standardized system of reliable components that cover all demands a conveyor drive might require.

Jan 1, 1998

By William R. Yernberg

What a difference a year makes. One year ago, the iron mining industry and the steelmaking industry in the United States were in trouble. Many companies were in bankruptcy, and talk of plant and mine shutdowns was rampant. At that time, it seemed difficult, if not impossible, to remain competitive with imported steel. In addition, the World Trade Organization declared as illegal the tariffs placed on imported steel. And many questioned the viability of the ironmining and steel industry in the United States. At that time, global economic conditions were the main contributors to the industry’s problems. However, since last year’s meeting, changes in global economics have actually helped the steel industry in the United States. Heavy global demand for steel has caused raw-material shortages worldwide. Much of the increased demand is a result of the economic boom in China. In addition, because of a weak U.S. dollar and higher international freight rates, steel imports into the United States have been reduced to about 50 percent of recent levels. These factors have contributed to a rebirth of the U.S. iron mining and steel industries.

Jan 1, 2004

By J. Girard-Dwyer, T. Camm

Direct costs such as medical, legal, administrative, and worker’s compensation costs, property damage, lost earnings, and lost benefits are typically used to compute the economic impacts of occupational injuries. However, there are also a number of less obvious, indirect costs that substantially contribute to the overall loss costs. In fact, for every $1 of direct costs an estimated $3 to $5 of indirect costs are also incurred. This paper presents a systems approach that incorporates engineering, economics, psychology, and sociology in order to evaluate the total value of investments in safety. By studying the interrelated system comprised of the injured worker, their family and coworkers, as well as the organizational structure that was the setting for the incident, a methodology can be developed that will more accurately capture the true costs of mine injuries.

Jan 1, 2004

By Wendi H. Cooksey

This paper examines two comminution circuits on a hypo­thetical gold ore deposit with both small-scale (1,000 short tons per day) and large-scale (35,000 short tons per day) production rates. The most appropriate circuit is dependent on the highest economic performance with a combination of crushing and grinding equipment to achieve the desired product size. The selected circuit is dependent on costs associated with project cri­teria, equipment selection and ore characteristics. Factors influ­encing the selection of the comminution circuit require system­atic evaluation to optimize plant performance and maximize eco­nomic return. The small-scale circuit economics responded best to three-stage crushing followed by a single-stage ball mill. The large-scale plant favors a primary crusher followed by SAG milling and ball milling. The conclusions from this paper indi­cate that each project must be evaluated separately to determine the most economic means of reducing the size of the ore.

Jan 1, 1998

By Alfred Jr. Petrick

Modelling of cash flows and calculation of net present value of rate of return over the expected life of a mine/processing unit continues to be the accepted basis for mineral investment decision-making. The computer and spreadsheet programs have greatly improved ability to perform sensitivity and risk analysis, hence our ability to deal with key analytical problems. These problems of cash flow analysis result from the necessity of forecasting an uncertain and risky future. Cash flow models begin with the critical assumption of a "design basis", then integrate all of the variables relevant to the investment decision including forecasts of price, cost, taxation, financial conditions, and company strategy. Alternate "scenarios" portray possible future outcome of the investment decision. The potential for straying from reality is enormous. The computer has eliminated the time consuming hand calculations from the cash flow analysis, but the analyst still struggles with the risk of trying to predict "how the project will really turn out".

Jan 1, 1991

By J. C. Agarwal

Major scientific discoveries cannot be programmed. New or frontier technology, however, can and should be planned. It is the vital force underlying the business strategy of a vigorous and profitable mining and metals company. Generally, a radical departure from existing technology is required to 1) Enhance the competitive value of ore reserves, i.e., to turn low grade or marginal reserves into competitive reserves. 2) To increase yield and decrease costs. 3) To decrease investment. 4) To increase mine life. 5) To improve product quality to meet market demands. The very definition of frontier technology implies that it is so different that the old plant, if already in use, will not be directly suitable to use the new technology. Therefore, a priori, we know that the commercialization of frontier technology would very likely involve new investment. The recommended technique of economic and technical analyses, I propose to call "Success Analysis.'' Simply stated, it forces us, by step- by-step procedure, to ask "what is needed to succeed in this particular project." Therefore, the first step is to identify what is meant by "success." The definition of "success" requires an agreement with top management or sponsors of the project as to what constitutes "success" in their minds as contrast to the technical people perception of "success." In general, top management would define success as meeting: 1) The technical objectives, i.e., technology being developed would produce the desired product at the acceptable quality. 2) Financial objectives, i.e., when commercialized, the project's capital cost, operating costs and return on investment are better than the projects they would normally fund. The return has to be better because new technology is inherently riskier. 3) Marketing objectives in that the project will produce product of acceptable quality in timely manner, i.e., scale-up to commercial plant would not cause undue delays in start-up and that large fix-up expenditure would not be required to protect the projected return on the investment. Many projects are started in the laboratory to develop "Frontier Technology" in mineral processing. Most of these efforts are never commercialized. There are many causes of these failures. The major causes are listed below: 1) Inadequate communication with the sponsors of the project so that project objectives are defined and agreed to by all. 2) Ill-defined technical problems. 3) Incomplete development of technology. This has two major components: a. Incorrect scale-up and engineering. b. Inadequate start-up and maintenance planning. 4) Incomplete and over-optimistic process economics. 5) Lack of understanding of the future behavior of the marketplace. 6) Failure to complete R&D effort by the time it is needed. 7) Incorrect projections of human resources required; that is, technical, managerial and operating. 8) Lack of realistic forecast of the expenditures required for commercialization of the R&D effort. These pitfalls can be avoided by comprehensive planning and the use of success analysis technique. The major elements in "Success Analysis" are: 1) Identification of the "need" for new technology. 2) Unbiased and complete scale-up engineering. 3) Acceptable economic feasibility with enough margin of error in the sale prices and operating costs to justify the inherent risks in frontier technology. 4) Timing for availability of investment capital and markets. Many failures in the development of frontier technology are preordained because the initial selection of the research project has been without adequate attention to the needs of the industry. Many very innovative hydrometallurgical processes for recovery of copper from concentrates were developed in the past twenty years. They have not adapted except to a very minor extent because they did not satisfy the success analysis criteria. The copper industry in North America needed a process to compete against high grade ores and to avoid

Jan 1, 1985

By J. M. Mutmansky, A. Wang

This paper defines the elements of a basic economic model for decision making when considering a methane drainage system for an underground coal mine. A drainage system entails significant capital and operating expense; hence the decision to utilize drainage must be made carefully. The model outlines the basic structure of decision making and considers the costs and benefits when the methane is marketed and when the methane is vented to the atmosphere. The effects on mine safety and the dust levels in the mine are also considered, both in a general format and as economic variables. Sources of information for executing this decision making are provided for an actual mine decision.

Jan 1, 1999

By A. Wang

This paper defines the elements of a basic economic model for decision-making when considering a methane drainage system for an underground coal mine. A drainage system will require significant capital and operating expenses; hence the decision to utilize drainage must be made carefully. The model outlines the basic structure of decision-making and considers the costs and benefits when the methane is marketed and when the methane is vented to the atmosphere. The effects on mine safety and the dust levels in the mine are also considered, both in a general format and as economic variables. Sources of information for executing this decision-making are provided for an actual mine decision.

Jan 1, 1997

By J. M. Mutmansky, A. Wang

This paper defines the elements of a basic economic model for decision-making when considering a methane drainage system for an underground coal mine. A drainage system will require significant capital and operating expenses; hence the decision to utilize drainage must be made carefully. The model outlines the basic structure of decision-making and considers the costs and benefits when the methane is marketed and when the methane is vented to the atmosphere. The effects on mine safety and the dust levels in the mine are also considered, both in a general format and as economic variables. Sources of information for executing this decision-making are provided for an actual mine decision.

Feb 24, 1997

By R. Brantley Sudderth

There are three broad categories in which most solvent extraction technology can be distributed?: 1) reagents, 2) equipment, and 3) systems. Reagents which are now used in commercial solvent extraction plants are of many chemical types, and each possesses certain properties which make it more economically desirable than another alternative. The equipment which is' used in solvent extraction plants for contacting the organic and aqueous phases and separating the same is varied. Most common to the industry is the mixer-settler unit which in itself, can be of varied design; but many new innovations in contacting and separating equipment have been recently introduced or are :now being studied. Each specific solvent extraction application will often dictate the type of contacting and separating equipment used. Obviously, the trend is toward smaller less expensive equipment which reduces the often expensive organic inventories necessary for most solvent extraction plants. The current thrust of .investigations in ancillary equipment is usually aimed at recovering organic from solvent extraction sludges or from aqueous streams exiting the process.6 This type of equipment helps to reduce the total organic losses from solvent extraction plants and thus reduce the operating costs. The term "systems" in solvent extraction applies to the manner in which a solvent extraction process is carried out. This manner is usually dictated by the properties of the reagent which is used, and it involves a tailoring of the equipment or the process flowsheet. Some of the things which can be tailored are: 1) The aqueous media -whether acidic or basic and what type of acid or base 2) Counter-current or single stage (co-current) contacting 3) EMF or pH control 4) Organic "crowding" alternative 5) Heating or cooling process streams Regardless of the type or extent of tailoring, efforts to do this are usually a result of the low cost of solvent extraction as a unit process.

Jan 1, 1977

By Leonard Bronitsky

The construction mineral aggregates industry--the largest industry on a tonnage basis--is threatened with large shortages in the near future. Ironically, these common minerals which include sand, gravel, and stone are among the most plentiful in the earth's crust. However, as these minerals are low in value and used in large volumes, they are extremely sensitive to transport cost, e.g., a haul of 20 miles doubled the delivered cost of mineral aggregates. Consequently, these minerals must be located close to points of demand to have economic usefulness. But the development of new deposits is virtually impossible near many urban areas for legal, sociological and economic reasons. The spector of unfinished urban transport systems, curtailed residential construction, and a general deterioration of the physical urban plant, looms as a direct consequent of future mineral aggregate shortages in the U. S. metropolitan areas. The shortages of mineral aggregates in the Greater New York Metropolitan Area (G.N.Y.M.A.) are prototypical of the shortages faced by the U. S. Metropolitan areas. This paper presents an economic analysis of the consequences of not considering the broad aspects of conservation economics as a major component of resource management. The needless annual cost for the G.N.Y.M.A. is shown to be $30 million.

Jan 1, 1974

By K. Oraee

Zarshuran gold deposit, with the total reserves of some 12.5 million tons of 4.18 g/ton ore, is considered to be an important gold mining project in the area. In this paper the feasibility studies of the whole project is carried out on the basis of several economic variables. Given that mining data are often of uncertain nature, these economic variables have therefore been estimated under the conditions of uncertainty. The resultant Net Present Value is hence also obtained under the same conditions. For this purpose, a model is first devised with the help of Excel and COMFAR software. The model is then developed that considers different scenarios which would result in different expected values for the economic variables. It is concluded that the NPV of the project is most sensitive to gold and silver price and that other variables such as discount rate, operating and capital cost all affect the feasibility of the project with lower degree of severity. Finally, risk analysis is also carried out using Mont Carlo technique, in order to estimate the most probable value of NPV. The average NPV calculated in this way is US$ 49.7 Million, whilst without due consideration of risk, this would be US$ 36.6 Million. The techniques used, together with the procedures adopted in this paper, can be used in feasibility studies of all mining projects. Such decision would result in more accurate Net Present Values than expected from other frequently used methods.

Jan 1, 2011

By Roshan B. Bhappu

Stimulated by current $0.80 to $1.20 per pound price tag of copper, considerable interest and activity have been generated in the copper mining camps throughout the world, and especially in the Southwestern United States and Northern Mexico copper belt. Under these economically favorable conditions, many of the marginal oxide-copper deposits, as well as newly discovered prospects, are under scrutiny for possible exploitation. For both the known deposits and new prospects, the big question facing the mine operator is the selection of the best method for processing these economically attractive oxide-copper deposits. Several variations of the hydrometallurgical processes are currently available for treating oxide-copper ores which can be mined by the open-pit method. Basically, these processes involve preparing the ore for application of an acid solution, applying the solution to the ore, and recovery of the metal from the pregnant solution. Dump leaching, heap leaching, vat leaching, agitation leaching and, in more recent times, in situ leaching or solution mining in combination with well established cementation process or the newly developed solvent extraction-electrowinning system have all been employed or have been investigated for the recovery of copper from oxide ores. Of these processes, dump, heap and vat leaching have been successfully practiced for treating oxide-copper ores. Agitation leaching is a relatively newcomer and has been adopted from the experiences of uranium and gold processing. Finally, the inplace leaching technique is the latest process to be suggested for possible treatment of oxide-copper ores.

Jan 1, 1974

By Felicia F. Peng

An economic analysis for evaluating coal preparation plants in the Appalachian Region is presented. A complete coal preparation plant which includes multi-streams and/or multi-stages coal cleaning circuits, complete closed water circuits, environmentally acceptable refuse disposal and reclamation systems is used to determine the capital and operating costs. The plant is capable of producing metallurgical grade clean coal or deep cleaned steam grade coal for future power generating plants use. Utilizing a profit maximization as a decision criterion, an optimal yield, and optimal coal clean¬ing circuits, closed water circuits, and disposal and reclamation systems for a given coal characteristic may be selected among the process alternatives by using a process simulation-economic model of the coal preparation plant. A deterministic analysis is used to calculate the discounted-cash-flow interest rate of return (DCFIROR) and project the selling prices, and determine the Return on Investment (ROI) for the cases of 32.65% and 52.74% plant utilization with producing two cleaned products. Sensitivity analyses are performed to quantify the effect of total capital investment, operating cost, run-of-mine cost and yield on an economic criterion-ROI and selling prices. A probabilistic evaluation using the Monte Carlo simulation technique is further made to quantify the risk involved in obtaining the desired profit levels. The results of the economic analysis for a given coal preparation plant configuration and characteristics of raw coal indicates that the selling prices of producing two cleaned products are greatly affected by the change in percent of plant utilization (production schedule), yield, and run-of-mine cost, and total capital cost. The sensitivity analysis also shows that the total capital investments has a three times greater effect on required selling prices than operating costs. The risk analysis shown that the overall economics look very attractive with current coal sale prices and 52.74% plant utilization.

Jan 1, 1979

By F. F. Peng

An economic analysis for evaluating coal preparation in Appalachian Region is presented. A complete coal preparation plant is used to deter- mine the capital and operating costs. Using profit maximization as a decision criterion, an optimal process flowsheet for given coal characteristics can be selected among the process alternatives by a process-economic model. A deterministic analysis is used to calculate the discounted cash flow interest rate of return and project the selling prices of clean coal products. A probabilistic evaluation is further made to quantify the risk involved in obtaining the desired profit levels.

Jan 1, 1979

By Andrew J. Regis

The methods of evaluation of industrial minerals occurring on Federal lands have different meanings if the evaluations are done by a company rather than a government agency. For example, when the Bureau of Land Management (BLM) conducts an examination of mining claims, this is commonly referred to as a "validity examination," whereas it is an "economic evaluation" when performed by a company. Not only is there a difference in nomenclature in these evaluations, but there is a general lack of expertise in the Federal government on industrial minerals in general. A metallic mentality still prevails in the U.S. Forest Service (USFS) and the BLM. Because of this, many validity exams on industrial-mineral deposits commonly just skim the surface concerning economics and marketability. The BLM and USFS place a high amount of emphasis on past administrative case law pertaining to the validity of industrial minerals under the 1872 Mining Law and, rightly so, on marketability, which also is heavily addressed in case law. When the BLM considers marketability, only the marketability of a particular industrial mineral for only the primary use for which it was located is considered and any value-added markets cannot be included. The BLM defines marketability based only on the value of the mineral material in its in situ or raw state, rather than value-added through processing. Another difference in the evaluation of industrial minerals by government and industry is the question of by-products. When a company evaluates a mineral material it looks at all the markets. The BLM looks only at that market for that locatable mineral for which the claim was located. In other words, sales from non-locatable by-products cannot be used to support marketability or the prudent-man rule (i.e., oversize silica sand from a glass-sand claim being sold for construction sand, road base, fill, etc.). The question of reserves also can present conflicts. An industrial-mineral company will often try to identify all the reserves available for a possible future development. They must do this for financial backing and support from upper management. The BLM, however, will limit their validity examination only to those reserves that meet the prudent-man rule and marketability tests. The BLM will validate reserves sufficient to last 25-30 years, based on available market. The development of industrial minerals on Federal lands is a difficult process, and, if the 1872 Mining Law is changed, it could become not only more challenging but also more costly. The industry must become more tolerant of the mineral specialists in the BLM and the USFS. On the other hand, the government mineral examiners must become more aware of the importance of industrial minerals in everyday living, and the economic evaluation of these materials.

Jan 1, 1999

By S. A. Diatchkov

Introduction There is a misconception that mineral-project economic evaluations in the former Soviet Union are either nonexistent or very limited. This is not the case. In fact, there are at least two basic methods that can be utilized to evaluate the vast mineral resources of the Commonwealth of Independent States (CIS). Evaluation procedures are based either on a comparison to known projects, which may rely on limited available data, or on potential-profit calculations, which generally uses more extensive databases. Significant philosophical differences between these systems and those utilized in the Western world include the following: •Under the centralized-government system, the economic evaluation of a mineral project was based on artificially determined mineral prices and costs. Every ten to 12 years, prices for concentrates and metals were established by the Council of Ministers and remained unchanged until the next reconsideration of prices . •The time value of invested money was not considered to be important under these "stable" prices, and inflation was assumed to be nonexistent in the planned economy. •An overestimation of the value of social and economic factors such as keeping the local population employed and providing the country with strategic minerals biased the economic evaluations of projects. Sequence of exploration Geological exploration in the CIS countries typically includes two major phases: prospecting and exploration. Prospecting consists of the following: •Regional geological studies. •General prospecting. •Prospecting. •Prospect evaluation. Regional geological studies are conducted within large territories and utilize satellite images, deep seismic zoning and other state-of-the-art methods. Geological and geophysical maps on a scale of from 1:200000 to 1:1000000 are developed to help identify regional anomalies and mineral prospective areas. The areas of primary interest are then subjected to general prospecting, beginning with geological mapping of the area at 1:50000 (1:25000) scale. The prospecting phase determines mineral potential based on further geological mapping (mostly 1:10000 scale), surface geophysics and geochemistry. Finally, the most attractive targets are subjected to further detailed evaluation (prospect evaluation) to help identify "possible" projects by means of trenching and wide-spaced drilling. The results of the prospect evaluation are analyzed and conclusions regarding the economical potential of the project are drawn. If the initial-prospecting phase results are positive and the prospect is recognized as economical, it then moves into preliminary exploration, which is followed by detailed exploration. Preliminary exploration determines the feasibility of the project on the basis of limited data. For example, in some underground projects, the initial exploration drilling and tunneling is done at two or three times wider spacing than would be required by the assumed mining method. Detailed exploration focuses on preparing the project for mining development, such as completing drilling and tunneling, particularly in the portion of the ore body to be first mined. During the project's mining phase, further exploration is usually conducted along the flanks of the mineralized structures and deeper sections of the ore body. Finally, during exploitation, it is sometimes necessary to delineate the ore body within the mining-block limits. A comparison between the United States (US) sequence of exploration activities and the CIS system is given in the Table 1. There is no "additional" and "exploitation" exploration shown in the US system, but it is common knowledge that all mineral projects are subjected to "additional" and "exploitation" exploration while being mined. An economic evaluation should be performed after the [ ]

Jan 1, 1996

By S. A. Diatchkov

There is a misconception that mineral-project economic evaluations in the former Soviet Union are either nonexistent or very limited. This is not the case. In fact, there are at least two basic methods that can be utilized to evaluate the vast mineral resources of the Commonwealth of Independent States (CIS). Evaluation procedures are based either on a comparison to known projects, which may rely on limited available data, or on potential-profit calculations, which generally uses more extensive databases. Significant philosophical differences between these systems and those utilized in the Western world include the following: •Under the centralized-government system, the economic evaluation of a mineral project was based on artificially determined mineral prices and costs. Every ten to 12 years, prices for concentrates and metals were established by the Council of Ministers and remained unchanged until the next reconsideration of prices .

Jan 1, 1995