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By [Miroslaw] M. Hajdasinski

The Payback Period (PBP) is one of the most widely applied project evaluation criteria 'in the mineral industry. As much as this criterion is liked by practitioners, it is also criticized by academicians who seriously question its validity. Inspired by this criticism, the author of this paper examines the classical definition of the PBP criterion, and formulates a new one designed for both investment and borrowing projects. It is demonstrated that the PBP, in its revised version, is free from all the shortcommings of the old one, and is fully compatible with the Net Present Value (NPV) criterion, as well as with all the other NPV compatible project evaluation criteria. Since the traditional approach to the comparison of mutually exclusive projects (MEP1s) by means of the PBP criterion has been incorrect, the paper also outlines the correct approach to this problem. Finally, owing to the fact that the PBP depends on the assumed interest rate, and using a specially developed computer program, the PBP is graphically presented, in six numerical examples, as a function of the interest rate.

Jan 1, 1989

By Keith A. Heasley

The objective of this paper is to back-analyze the August 6th ,2007 collapse at the Crandall Canyon Mine in order to better understand the geometric and geo- mechanical factors which contributed to that collapse. In this work, the LaModel boundary-element program along with the best available information is used for the back- analysis. To initiate the analysis, a six step base model of the mining in he Main West area was developed. This base model included a step for each of the critical stages in the mining of this area. Next, calibrated values for the critical input parameters: rock mass stiffness, gob stiffness and coal strength, were developed and optimized based on the best available information. Finally, the model was used to simulate the final mining scenario. As a result of this back analysis , a number of conclusions can be made concerning the mine design and the August 6th collapse: 1) Overall, the area was primed for a massive pillar collapse because of the large area of equal size pillars, 2) The abutment stress from the active retreat sections and the adjacent longwall panels were significant contributors to the collapse, 3) From the modeling alone, it is not clear exactly what triggered the August collapse, although the active mining is a reasonable assumption.

Jan 1, 2012

By Lynton B. Manssen

Introduction Net Present Value (NPV) techniques are becoming widely used in industry as a standard analytical tool in making capital budgeting decisions. However, NPV techniques are often misused in "common practice." A comparison was made between the use of NPV techniques in common practice and an Adjusted Net Present Value (ANPV) approach to capital budgeting in the financial analysis of a mining project. The comparison was made by applying both methods to a hypothetical copper project. The intent of the analysis is to provide an example for practitioners to follow when financially analyzing mining (or other) projects. To maintain the thrust of the analysis, the project has been evaluated as a stand alone, total project. No consideration has been made of the division of cash flows accruing to various owners over the life of the project. This omission will not affect the comparative nature of the analysis. This discussion assumes that the reader is familiar with present value as a concept and as a tool in capital budgeting. Finance theory has embraced NPV analysis as the correct way to evaluate capital budgeting alternatives. Many articles have been written expounding the virtues of NPV over other capital budgeting methods, such as Internal Rate of Return (IRR), Payback, Accounting Rate of Return, and others. It is not the purpose of this article to review all of the literature in this area; suffice it to say that in academic circles NPV concepts are accepted as the norm. A survey by Schall, Sundem, and Geijsbeck (1978) indicates that major US companies are finally following in academia's footsteps. Fifty-six percent of the companies responding to the survey use NPV techniques in their capital budgeting process. Further, some 86% of the companies surveyed use discounted cash flow methods (NPV or IRR) for capital budgeting decisions. This compares with a survey by Klammer (1972) that showed 57% of companies using both techniques, a considerable increase in seven years. With the increasing use of NPV techniques in industry, there are certain uses in common practice that can give misleading results. Five common errors in NPV analysis of large projects are: • No distinction is made between real and nominal cashflows. • The discount rate(s) used in the NPV analysis is not formally adjusted for risk. • There is no distinction of possible differences in the riskiness of different project cash flows; i.e., revenue vs. depreciation. • There is no recognition of the cash benefits to the project from interest tax shields (interest payments on the project's debt that are tax deductible). • There is no clear recognition of subsidies to the project from concessionary debt financing. No Distinction Between Real and Nominal Cash Flows Often, expected cash flows for a project are stated as a mixture of real (in constant dollars) and nominal (in current dollars) cash flows. For example, expected revenue cash flows may be stated in real terms and depreciation may be stated in nominal terms. If cash flows are added together to give an after tax cash flow, and this single cash stream is discounted, care must be taken to ensure that cash flows are consistently stated. All cash flows should either be stated in nominal terms or in real terms. In addition, the discount rate used must be stated in the same terms as the cash flows being discounted. Real cash flows must be discounted using real discount rates and nominal cash flows using nominal discount rates. Discount Rate Not Adjusted Numerous methods for obtaining discount rates are used in common practice. Schall and others

Jan 6, 1983

By A. S. Azman

In collaboration with Kennametal Inc. and corry rubber corporation, the U.S. National Institute for Occupational Safety and Health (NIOSH) developed a drill bit isolator to address noise overexposures associated with roof bolting machines in underground coal mines. NIOSH laboratory studies confirmed that the drill bit isolator reduces noise during drilling. Field studies were needed to confirm that a noise reduction could be obtained under working conditions and that the device was sufficiently durable. This paper reports results of field tests of the device conducted at five underground coal mines. Noise reduction was assessed by comparing the operator?s noise exposure during drilling with and without the drill bit isolator. Durability was assessed by recording the number of holes and total feet drilled with each bit isolator until either the test period ended or the device failed. The results from these tests showed that the device is an effective noise control in a mine environment. The field-tested drill bit isolators provided a noise reduction of 3-5 db(A). Of nine devices tested for durability, five exceeded 610 m (2,000 ft) drilled and two exceeded 762 m (2,500 ft) drilled before failure. Durability issues found in the field tests led to final production optimizations that have resulted in a commercially available product for drilling with 35-mm- (1.3-in.-) diameter roof bits and hexagonal drill steels.

Jan 1, 2012

By Thomas A. Lang, Kanwarjit S. Chawla, Francis S. Kendorski

Unlined water tunnels have often been used as pressure conduits for hydroelectric projects. However, fallouts of rock in such tunnels are not uncommon and in many cases have been attributed to erosion of shears and seams. A case history of such a fallout is described. An appraisal of the conditions pertaining to the fallout led to the conclusion that rapid changes in the water pressure in the tunnel resulting from operating conditions were significant factors in initiating the fallout. Other factors that contributed to the fallout are also described.

Jan 1, 1976

By J. Bilant, B. Carlson, N. Gow

"High-pressure grinding roll (HPGR) technology was evaluated to replace tertiary cone crushing at Coeur Rochester operations (Coeur Rochester Inc.) as an opportunity to improve silver recovery. In 2016 and 2017, onsite and third-party pilot programs were initiated to evaluate the impact on metallurgical recovery and heap leach performance of crushed product generated by an HPGR. In 2018, Forte Dynamics evaluated the HPGR laboratory metallurgical data from Coeur Rochester and all third parties to develop field-scale leach curves based on new crushing scenarios. The laboratory recovery test work data were consolidated and scaled to field conditions to determine projected heap leach performance. Based on the metallurgical testing conducted, the replacement of current tertiary cone crushers with HPGR technology has the potential to increase Coeur Rochester’s silver recovery rate by 8 percentage points, from 61 percent to 69 percent, and shorten the overall timing of silver recoveries from 20 years to just more than two years.The Rochester Mine, and associated valley fill heap leach facilities is an openpit silver and gold mine located in Pershing County, NV, approximately 42 km (26 miles) northeast of the city of Lovelock. In 2017, Rochester produced approximately 4.7 million oz silver (Ag) and 51,000 troy oz gold (Au). Ore mined at Rochester is either fed directly to the primary X-Pit crusher, crushed at an in-pit crusher system, or placed directly onto a heap leach pad as run-of-mine (ROM). Both crushing circuits are comprised of three stages of crushing to produce a nominal 3/8 in. ore. Primary crushing consists of jaw crushing while secondary and tertiary crushing are composed of varying cone crushers.Historical recovery rates of crushed Rochester ore averaged 61.4 percent Ag and 95.9 percent Au over a period of 20 years (Robinson et al., 2018). These rates were derived from third-party verification of in-house metallurgical test results, crusher production and heap leach production results from 1986 through 2004 in a private report for Rochester produced by KD Engineering Co., Inc. Recovery rates are regularly verified by compositing daily samples of ore delivered to each leach pad from the X-pit crusher, in-pit crusher and/ or ROM. A proportionate split of each sample is used to generate monthly composites for metallurgical analysis utilizing column leaching and bottle roll leaching. These tests are run in a manner analogous with production conditions and deliver test results that provide expected heap leach performance. As the Rochester oxide deposit has been mineralogically and metallurgically consistent, the gold and silver recovery trends have also been consistent over the life of the project."

Sep 1, 2019

By Tsuneyoshi Funazaki, Takayoshi Nakamura, Keizo Miki, Takashi Imaishi

The underground portion (about 10 km) of Tokyo Wan Aqua-Line consists of eight shield tunnels connected with Kawasaki Man-Made Island in between, at four underground locations. The connection work had to fulfill strict precision and safety requirements in the ground about 60 m below soft seabed, but was completed successfully in May 1997. This report describes the connection work in detail, featuring the method of investigating shield machines’ relative positions, ground freezing method and connection mechanism and procedures. It also mentions the present state of Tokyo Wan Aqua-Line that was put in service on December 18, 1997.

Jan 1, 1999

By William P. Shell

An important part of process control engineering is the implementation of the basic control system design through commissioning to routine operation. This is a period when basic concepts can be reviewed and improvements either implemented or recorded for application in future systems. The experience of commissioning the process control systems in the Homer City coal cleaning plant are described and discussed. The current level of operating control performance in individual sections and the overall system are also reported and discussed.

Jan 1, 1983

By Y. C. Kim, I. S. Roditis, P. K. Medhi

P. Mousset-Jones I found the article most interesting and timely. I consider it imperative that mine case studies like this one are undertaken and published so that the practicing mining engineer and geologist can obtain a better idea of what is the preferred estimation and grade control technique to use, given the site-specific geology, grade distribution, etc. Mining companies, with operating gold mines, need to be encouraged to either initiate such a study in-house or support a research project by financing a graduate student at a local university. The latter method is preferable since it not only provides research support but also an excellent training opportunity for young mining engineers and geologists. Ideally, what is needed is exploration drill-hole, blasthole, and mine production data that can then be used to assess the efficiency of different estimation and grade control methods by comparing the results obtained using the drill/blasthole data with the actual production data. It is hoped that more mining companies will realize that the rewards from this kind of research greatly outweigh the sometimes perceived problem with releasing data to a university. I noticed that the authors used the blasthole data to represent the actual values, the validity of which relies heavily on the two key assumptions with regards to blasthole assays and in-pit ore-waste selection procedures. Could the authors comment in more detail on these assumptions and what criteria they used to check the validity of the assumptions? Since the article was published, have the authors had the opportunity to compare their estimates with the actual production data? It would be interesting to compare other estimation methods with OK and IK. For example, how well did the polygonal method used at the mine compare with the results given in the paper? I would like to mention that B.L. Kwa completed a similar study (Kwa and Mousset-Jones, 1986) using exploration drill-hole, blasthole, and production data from the Alligator Ridge mine in Nevada. The study compared a variety of estimation methods, including IK, and the final results are shown in Fig. 1. The IK method exhibits the smallest difference between estimated and production results and is closely followed by the indicator moving window (Ind MW) method. Reference Kwa, B.L., and Mousset-Jones, P., 1986, "Indicator Kriging Applied to a Gold Deposit in Nevada," Proceedings, Symposium on Ore Reserve Estimation Methods, Models, and Reality, CIMM Annual Meeting, Montreal, Quebec, Canada, May, pp. 185194. Reply by Y.C. Kim We do concur with Professor Mousset-Jones with respect to the merit of such case studies performed at a local university. In answer to his request for comment on the validity of the two key assumptions made in our paper, we can only say that these are reasonable assumptions that are very difficult to validate. The assumption of blasthole assays being accurate can be partially validated by a careful analysis of the nugget component of blasthole variograms. The assumption that the in-pit ore-waste selection procedure in use was an effective one can only be validated through comparison between the mine estimates of ounces of gold versus the actual recovered ounces of gold at the mill. Neither one of these two assumptions has been validated to date due to several reasons. For example, the mine went through a change in management since the study. Similarly, no compelling reasons have been presented to perform detailed variogram analysis of the blasthole data. We do, however, believe that the obtained results (i.e., indicator kriging performs better than OK in a highly skewed deposit) will remain the same in relative terms, regardless of how valid these two assumptions may be. The most recent comparative study by D. S. Lindsey of the Montana College of Mineral Science and Technology also shows a similar ranking between ordinary kriging versus probability kriging, which is an extended version of indicator kriging. Reference Lindsey, D.S., 1987, "A Comparative Study: Probability Kriging vs. Ordinary Kriging at the Golden Sunlight Mine," MS Thesis, Department of Mining Engineering, Montana College of Mineral Science and Technology, Butte, MT, May, 81 pp.

Jan 3, 1988

By D. Butler

Subsurface density changes can be detected by very precise surface gravity measurements. A feasibility study, combined with field experience using modern instruments, will indicate the probability of success. In addition to projected anomaly parameters, surface conditions that effect the survey precision must be evaluated. Examples with excavated zones at 9 m (30 ft) of depth and [+] 22 microgal error are compared to the same model at 30 m (98 ft) of depth. The figures illustrate anomaly detectability. The survey error is a function of surface topography and lateral density variation in the very near surface.

Jan 1, 1990

By R. W. Bartlett

Computer deterministic models for predicting the time dependent extraction of copper by leaching fragmented rock (both in situ and heaped or piled) have been presented in the last two years by Bartlett1, Braun, Lewis and Wadsworth2 and Roman and Co-Workers.3 All of these models involve aqueous diffusion within the pores of the rocks from which the metal is being extracted. The rate of chemical dissolution of the ore mineral within the rock will also affect the kinetics in the case of sulfide copper ores and some of the more refractory oxide copper ores. Simulation is also needed for fine grain disseminated gold ores and low grade uranium ores that may be heap leached. The development of such leaching models has two major purposes: First, extraction estimates must be made for tong time periods particularly for situations where laboratory and field tests either cannot be made or where there is insufficient time for field testing. Second, the results of simulated leaching should indicate the relative importance of the extraction controlling parameters and, thereby, provide a better understanding of the complex leaching phenomena on heaped material being leached, and guide further experimental work.

Jan 1, 1974

By Craig M. Sams

Dry grinding circuits and factors influencing the selection of the most appropriate grinding system for a given ore selection are discussed. Comparisons of the drying, grindability, installed costs and operating costs are presented for several grinding systems.

Jan 1, 1994

By Robert R. French

Commercial grade gypsum beds up to 16 feet thick is present in southwestern Indiana. The major deposits are found at a depth of 350 feet to more than 500 feet below the surface. The ore body averages about 75 to 95 percent gypsum. Two companies are currently exploiting a deposit which underlies an area of several square miles near Shoals, in Martin County. Another deposit has been located in southwestern Owen County but has not been developed. The Indiana Geological Survey is currently drilling in Greene County and is considering further exploratory work in Perry end Dubois Counties.

Jan 1, 1965

By Michael W. Lewis

The latest downturn in the world’s metal prices has forced many mining companies to focus on cost reduction and productivity improvements to remain competitive. Maintenance represents a significant part of the overall operating costs in the mining industry. A structured, proactive maintenance approach, such as reliability-centered maintenance, can achieve cost reductions and productivity improvements. Remote condition-monitoring systems are becoming commonplace because they have the potential to identify problems before failure. Detection of equipment degradation before failure will enable repairs to be scheduled, thereby reducing costs and interruptions to production. The mining industry is in the midst of uncertain times. Decreasing commodity prices, demand, head grade and capital availability along with increasing environmental requirements have put pressure on mining companies to significantly reduce costs to maintain short- and long-term viability. Corporations are looking at expansion, merger/consolidation and financial/hedging programs to achieve these cost reductions. Mines are reducing costs by eliminating all but essential expenditures, increasing production levels, reducing overtime and investing in new technologies.

Jan 1, 2000

By D. Duvris

The main objective of this work was to quantitatively investigate exhaust emission levels, as related to maintenance (service) intervals, during the operation of diesel-powered equipment at an underground bauxite mine in Greece. Such emissions depend on a great number of parameters, including the type (technology) and tuning of the engine, the type of work performed as related to the engine workload, suggested maintenance intervals, the altitude, the temperature and the humidity of the atmosphere of the underground mine, the properties of the fuel, the operator's training and experience level. Necessary ventilation quantities were calculated based on exhaust gas concentration measurements, site specific relationships between pollutants and adjusted air quality indices. Diagrams comparing necessary and recommended air flow for several equipment groups featuring two engine types and for different maintenance intervals are presented.

Jan 1, 1998

By A. Covelli, A. B. Cecala

Two recent US Bureau of Mines studies evaluated workers' dust exposures in automated pallet loading processes. The first study involved a Bureau designed dust control system using a push-pull ventilation technique. The unit was shown to reduce workers' dust exposures by 76% during pallet loading at a ground silica operation. A hydraulic lift table was used to automate the bag stacking process. This kept the loading height constant throughout the entire pallet loading cycle. The second study evaluated different commercial, automated-pallet loading systems. These systems automatically stack the bags onto pallets, shrink wrap the pallets, and deliver the pallets to a fork lift pickup location. Results from a ground silica evaluation site indicated respirable dust samples taken were below the Threshold Limit Value (TLV) as established by the Mine Safety and Health Administration (MSHA).

Jan 1, 1992

By V. Rajaram

A mine fire or roof collapse may necessitate the reversal of main fans to isolate the fire or provide an escapeway. Hence, to assist the mine operator in estimating the flow and pressure during reversal, Engineers International, Inc. conducted a laboratory and field study of the reverse performance characteristics of main mine fans. Laboratory tests were performed using a 96-inch (2.4 m) diameter vane axial fan to establish the forward and reverse performance characteristics under controlled conditions. Subsequently, a field test was conducted in a Colorado oil shale mine during which two 79-inch (2 m) diameter fans were reversed. The data obtained indicate that reverse performance characteristics are dependent upon the blade angle and the hub to tip ratio. The quantity in the reverse mode ranged from 30 to 65% less than in the forward mode, and the static pressure was directly proportional to the square of the quantity.

Jan 1, 1985

By S. S. Hsieh

As part of a program to address long-term needs for ensuring adequate supplies of domestic phosphate raw materials, the Tennessee Valley Authority (TVA) has conducted considerable research on dolomitic phosphate rock beneficiation. The discovery that alkyl diphosphonic acids act as phosphate mineral depressants led to the development of several processes involving a carbonate flotation step for the effective beneficiation of these problem ores. Most recently, a partial de-oiling process in which the reagent consumption is greatly reduced has been developed. The reduction is achieved because part of the initial feed is beneficiated without passing through the separate carbonate flotation step. Using this method, a phosphate product containing 30.6-30.9% P2O5 and 0.7-0.8% MgO was obtained from a Florida dolomitic phosphate pebble which contained about 23% P2O5 and 2.0% MgO. The P2O5 recovery was 80.8-86.5%.

Jan 1, 1989

By D. M. Hausen

A quantitative x-ray diffraction method has been developed for the analysis of alteration minerals in wallrock. Alteration data are plotted and contoured (analogous to geochemical data). Alteration trends outlined by this technique correlate closely with geochemical anomalies, and in some cases attend well beyond the perimeter of anomalous base metal values. "Monomineralic contouring," applied originally to porphyry-type mineralization, has been extended to other types of mineralization, including volcanogenic massive sulfide deposits. Equipment and techniques used in the quantitative measurement of alteration mineralogy are discussed.

Jan 1, 1978

By F. Gonzalez, A. Zambrano, J. Schwoebel, S. Kravits

Significant lost time delays were experienced by Carbonifera de Nueva Rosita, S.A. de C.V. ("CNR") during mining development of the Pasta de Conchos Mine ("the Mine") near Nueva Rosita, Coahuila, Mexico. Furthermore, methane gas concentration in the return air course had exceeded 1.0 percent. Resource Enterprises, Inc. ("REI") was contracted by CNR to recommend an approach to reduce methane emissions at the Mine. In order to recommend a degasification approach, REI and CNR obtained geologic and reservoir characteristics of the Double coal seam, Olmos Formation. A vertical core hole was drilled to obtain core samples to determine gas content (average 8.4 cm3/gm) and to conduct a slug test to estimate permeability (34 md). This information was used to simulate gas productivity and drainage effectiveness. The simulation indicated that underground horizontal boreholes would remove significant quantities of gas in advance of mining in a reasonable period of time. Based on the results of the simulation study, an underground degasification drilling program was initiated at the Mine. In a six month period, five long in-mine degasification boreholes were drilled in advance of CNR's three to five years mining projections. Peak gas production from the five boreholes (approximately 2,750 cumulative meters) had exceeded 45,000 m3/D. Results to date have indicated a general reduction in methane concentration in the return air course below 0.8 percent.

Jan 1, 1993