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By J. F. Allan

The main conditions which affect investment in mineral exploration and development are compared in five countries currently considered attractive for mineral investment - Canada, the U.S., Australia, Brazil and the Philippines. The primary parameters - the probability of occurrence and discovery of mineral deposits and the short and long term viability of mineral development - are evaluated and compared on a relative basis by a form of factor analysis. This analysis indicates that of the five countries studied, Canada is second only to the United States in degree of favourability for mineral exploration and development.

Jan 1, 1976

By S. Liu

A general account of nitrogen-generating systems, including the surface fixed, surface-mobile and underground-mobile types is presented. These systems have recently been adopted in coal mines in China to prevent and extinguish fires. The paper stresses nitrogen -injection technology and relevant systems of monitoring and stopping air leakage.

Jan 1, 1998

"Metallurgical process development in greenfield projects must define the comminution flowsheet and establish the equipment sizes that are required to deliver the project design criteria. These are critical steps that heavily influence the financial performance of the project, requiring a detailed understanding of the ore properties of the project resources and the best practice methods to size comminution machines. This paper reviews current practices for determining the ore characteristics relevant to comminution circuit design. Particular attention is given to the design of sampling and testing programs, and the methods commonly applied to size crushers and mills for conventional size reduction applications in mineral processing. IntroductionMetallurgical process development in greenfield projects requires the selection of a comminution flow sheet and must establish the equipment sizes required to deliver the project design criteria. This necessitates a detailed understanding of the ore properties that define the project resource. For brownfield projects the same objectives may apply for plant expansions, or the project objective may be simply to define the capacity and operating cost of an existing facility for a new ore source. The process development phase in either instance will typically comprise the following key activities:• Geometallurgical classification and sampling of the ore deposit or deposits.• Determination of comminution energy requirements.• Benchmarking similar projects.• Identification of flow sheet options.• Equipment selection and sizing.This paper is concerned specifically with process development testing and will as such focus on the first two activities on the list: sampling and testing of the deposit. The discussion will focus on testwork programs to support the design of comminution circuits commonly in use in mineral processing today, specifically crusher, tumbling mill and stirred mill technologies.It is important that any testwork program is designed giving consideration to the types of flow sheets that are viable for the project, and the data that will need to be generated to support the final equipment sizing. Designing a testwork program to only provide information about one particular type of flow sheet will not allow sufficient information to be generated for a rigorous trade-off analysis of options, and may therefore preclude financial optimization of the project. Testing programs should be designed to collect sufficient data to ensure that any backtracking at a later stage to fill in missing information is minimal."

Jan 1, 2016

By Howard L. Hartman

Introduction The federal government's declining role in funding research has created a critical dollar gap for university departments of mining engineering. Industry, too, is affected by the drought. Research is lagging. Hardpressed universities are going to the private sector for funding. Mining companies should not shower universities with philanthropy, but a research partnership should be contracted on a pay-as-you-go basis. A model exists at The University of Alabama (albeit not in mining) that could be adopted by the mining industry. An equal partnership arrangement between a university and an industry for conducting research is proposed. The concept is not that a corporation sponsors and a university performs the research. Nor does it call for educational contributions or giveaways from industry. Rather, the corporation and the educational institution enter into a cooperative research endeavor, a full and equal partnership. Both parties contribute and both share the benefits. A key to the relationship is that it has a single objective: it must generate profits or reduce costs for the company. Working Model Recent literature is replete with examples of proposals for joint research endeavors, involving both contracts and grants, between industry and universities (Bronwell, 1971; Bugliarello, 1978; Branscomb, 1981; Sanford and Holland, 1982). They are all good proposals and offer something to both parties. They are, however, not widely supported. Few have received a favorable nod from the US mining industry. Though it may be logical, for example, to remake the American Mining Congress (or some new consortium) in the mold of umbrella-type industry organizations to fund cooperative research with mining institutions, such proposals have never flown. What model, then, will work? First, look for a model that has worked in industry in general. Second, seek to apply it to mining specifically. There is a model project that satisfies the first of those criteria. It is a project complicated by a third party, in addition to a corporation and a university. In January 1983, the "Factory of the Future Project" was initiated between The University of Alabama (UA) and General Motors Corp. (GM). The United Auto Workers (UAW) is a third party to the agreement. The factory was GM's Rochester Products Division manufacturing plant in Tuscaloosa, AL, also home of UA's main campus (Fig. 1). Saving a Plant The agreement came about at the initiative of GM and the UAW. Faced with having to close the plant because of excessive production costs, company and union officials proposed to the university that an applied research facility be established at the plant. The university would operate the laboratory, dedicated to $470,000 a year cost reductions for the company. The school would lease the 5.1 km2 (55,000 sq ft) space for $470,000 a year for three years. Any savings effected by the university's research effort would be credited toward to the rent. GM said the small factory, which made replacement carburetors

Jan 9, 1984

By J. G. Groppo

Lowering of filter cake moisture of ultra-fine coal to a 20 percent level using conventional vacuum filtration could be achieved using a combination of metal ion and surfactants. Pretreating coal slurry with about 0.2 Kg/ton of a surfactant and 50 ppm of copper or 10 ppm of aluminum ions provided filter cake containing 22.8 percent moisture. The lowering of moisture is explained due to formation of hydrophobic micro-agglomerates which facilitates dewatering.

Jan 1, 1994

By Daniel R. Stewart

The function of the geological engineer is to assist in mine planning and operations by collecting, interpreting, and applying geologic data to the solution of engineering problems. The geologist supports this effort by collecting additional geologic information specifically useful to the engineer. This use of geologic information reinforces the value of mine geology to the mining process beyond the traditional role of orebody definition. Work discussed includes: evaluation of caving strategies at the Climax and Henderson mines; support definition and slope stability at the Climax mine; and some uses of geology in cavability estimation for the Mount Emmons project.

Jan 1, 1983

By S. O. Ogden

As most of you have probably surmised from the title of my paper, I am here today to talk with you about the use of diesel engines in the American mining industry and whether or not the free choice to use such equipment will continue to be available to mine operators. Of course, I will present to you my prepared remarks, however, these remarks may be essentially academic in light of a news release, parts of which I would like to read to you. Washington, D. C., The Department of Health, Education, and Welfare today announced proposed new regulations to reduce occupational health risks to workers in the U. S. mining industries by requiring the removal of all diesel powered equipment from American mines by December 31st "While we do not have complete and conclusive information to quantify these health risks we feel it is prudent to undertake this restriction on the use of diesel powered equipment without waiting for the completion of studies that are currently underway to identify and quantify these health risks," said a Department spokesman. HEW has been concerned about the health risks of diesel emissions in the underground coal mines for some time and have investigations underway designed to conclusively demonstrate the nature and magnitude of any health risks. However, HEW has decided to proceed with these regulations without waiting for the final results of these investigations. Further, HEW feels there is sufficient probability that diesel health risks do exist in all mining applications and consequently, the proposed regulations will apply to all surface and underground mining operations. It goes on a little further and indicates that due to the necessity of finalizing these regulations without delay, a period of fifteen days has been provided to receive comments regarding these proposed regulations.

Jan 1, 1978

By Arthur S. Radtke

The structural setting of disseminated-replacement gold deposits of the Carlin-type and other aspects of their genesis are closely related to events which took place during the evolution of the Basin and Range province. The deposits formed as a result. of chemical and physical processes which took place at shallow depths in the roots of hot spring systems at moderate temperatures (about 200°C) and low pressures (about 25 bars) (Radtke and Dickson, 1974). Locations of Carlin-type gold deposits in the Basin and Range province are shown in Figure 1. Most of the block-faulted mountain ranges in the Great Basin formed by tectonic activity that happened since Miocene time, although faulting in some places probably began in Eocene to Oligocene time (Hamilton and Myers, 1966). The Carlin-type deposits are spatially related to Basin and Range-type faults: Many deposits, such as Getchell, Pinson, Preble, and Cortez, occur along the flanks of ranges, while other deposits, including Carlin (Radtke, 1974) occur within the ranges in areas characterized by crosscutting and intersecting high-angle or Basin and Range-type faults. The association of the ore deposits with Basin and Range-type faults is evidence that ore deposition is young, Miocene or later. The steep, high-angle faults played three roles: first, they provided deep channels for upward-flowing solutions; second, in preparing the rocks for fluid penetration by brecciation and general rock dislocation; and third, they moved sedimentary carbonate rocks, favorable for ore deposition, from deep levels to near-surface positions where the physico-chemical conditions were more suitable for the deposition of ore.

Jan 1, 1976

By Harry M. Conger

Good afternoon, fellow members of the international mining community. I appreciate the opportunity to participate in this special three-day, international gathering, and to join with you in honoring one of my very good friends, Doug Fuerstenau. It couldn't be more fitting to have this kind of event to mark Doug's 60th birthday. You know, in addition to his faculty position at the University of California in Berkeley, Doug is a member of the Board of Directors of our Homestake Mining Company. So it is a double pleasure for me to help pay tribute to one of the outstanding academicians of the mining industry as well as a man with whom I work closely in running Homestake. I have been asked to talk about "The Future of Precious Metals," but I will concentrate my remarks on gold. Since the theme of this Symposium is "Challenges in Mineral Processing," what I'm going to talk about is a challenge that relates especially to a major problem faced by those of us who process ores to recover gold. I noted that in the Scope of this Symposium, it stated: "the mineral industry is currently facing many challenges to improve the economics, operating efficiencies and environmental concerns of the mineral processing system." I couldn't agree more with that statement. I think that a need exists for us to address this situation as it involves gold. And who better to consider this than the worldwide leaders of mineral processing research here assembled. I start with the premise that we need a new method for cyanide use or a chemical to replace sodium cyanide entirely. In the case of using cyanide differently, I see a continuing difficulty in getting general public acceptance regardless of how

Jan 1, 1989

Rendering a solid hydrophobic and solid-fluid particle* attachment in flotation are recognized as not necessarily related (1,2). The attachment is governed by forces of attraction and repulsion which need to be considered. The induction time required for attachment after solid and fluid particle are brought into proximity (3-8) illustrates the point. Laskowski(8) showed that a reduced induction time favoured flotation but detected no change in contact angle, a standard indication of solid surface hydrophobicity. Induction .time is observed in fluid-fluid particle coalescence, there being called a rest time (9-11) The induction time phenomenon is related to the presence of a metastable liquid film (disjoining film (2)) of the continuous phase (water in flotation) which must thin and rupture to permit attachment. The lifetime of this film, which is governed by the rate of thinning and the probability of rupture with thicknesss, depends on a complex interaction of forces. Investigating these forces should help clarify the attachment process. Practical benefits would be improved understanding of slimes flotation (12,13) This paper is concerned with the role of the mobile fluid particle-water interface on the film lifetime, in particular, the role of time-dependent or dynamic interfacial properties resulting from deformation of this interface.

Jan 1, 1975

By Rodolfo V. de la Cruz

The broad front concept is based on the principle that gasification can be achieved more efficiently and completely from a plane broad combustion front in contrast to other geometries obtainable with current methods of gasification. By restricting combustion to a plane broad front, the ideal condition for gasification is achieved. A plane broad combustion front can be developed in coal by initiating and propagating combustion from the walls of an oriented channel and collecting product gases from another similarly oriented channel. Flow will then be directed along the highest permeability of the coal bed, the available cross-sectional area for fluid flow is substantially increased and, more importantly, the increased flow will be uniformly distributed throughout the whole mass of coal. The success of the method is greatly dependent on how well an initial and rigorous permeability survey and associated corrective measures yield a well-characterized coal bed. To maintain uniform reaction rates, the advance of the combustion front is located with pressure- or mass flow-transducers. These sensors are then connected to servo-controlled mufflers for controlling segments of the fire front which are advancing ahead of others. Finally, the development of the concept to overcome problems of roof collapse, reactant and product gas leakages, and water invasion are briefly summarized.

Jan 1, 1976

By B. Anamaeric

Economic, environmental and operational disadvantages of the traditional blast furnace process has led to the development of direct smelting reduction processes, including those that utilize self reducing/ fluxing dried greenballs as iron oxide feed materials. This is mainly due to improved carbothermic reduction, carburization and reaction kinetics. In this paper, the morphological changes of the greenballs as they transform to pig iron nuggets are examined over time at a constant temperature of 1,400° C. The products produced after each treatment were characterized using optical microscopy, scanning electron microscopy/energy dispersive spectroscopy and point counting/image analysis. The changes in the percent metallized area, wustite dendrite and slag matrix content of the structures were calculated. It was determined that the transformations were initially controlled by dissolving and containment of iron oxides in the molten slag and their consequent reduction to iron, followed by coalescence of the metallized areas. The final transformations were controlled by the carburization of the metallized areas.

By I. Iwasaki

There are many reasons why the US mineral and primary metals industry is in its present state. Undoubtedly, a flood of imported goods in all sectors is playing a major role in the plight of our raw materials industry. Domestic industry is becoming increasingly aware of the importance of its international competitiveness. And we are beginning to wonder what is happening to our technological edge. A number of factors affect the international competitiveness. Engineers cannot do much about some of these factors - labor costs, tax policy, government relations, interest rates, dollar strength, and labor-management relations. Something can be done about technology, however. Some say technology is so easily transferable today. But I would like to believe that we have the ability to apply it better than others. Not too many years ago, "made in Japan" meant cheap and shoddy products. Today, Japan has completely changed its image. The US is beginning to feel the threat from Japan's low-cost, defect-free products with dependable delivery. With worldwide recession and the strength of the dollar, we were shocked at the sudden weakness that developed in America's industries, not only in the international market, but domestically as well. What went wrong and what can we do about it? Senior executives from 300 large American manufacturing companies were surveyed. These executives believe US companies must: • invest in more efficient plants and equipment (27%); • invest in more research and development (23%); • improve the quality of service to customers (23%); and • adopt more aggressive marketing tactics and strategies (14%). Are we not doing enough research? The US has nearly four times as many people engaged in research and spends four times as much for research as Japan (Fig. 1). There is little doubt about the excellence of the US performance in basic science as indicated by the number of Nobel prize recipients. Japan has produced only four winners since World War II. Look at technology trade of five countries (Fig. 2). Again, US performance has been remarkable. An interesting observation here, is that the United Kingdom, another country with economic woes, is also in the black, West Germany and Japan, both with trade surpluses, are net technology importers. It is apparent that the US' performance in the commercialization of new knowledge is much more in question. Japan had $50 billion of trade surpluses with the US last year, which led to some friction between Washington, DC and Tokyo. Comparing the technology trade of Japan and the US in more detail, Japan imports disproportionately large amounts of technology from the US and Europe. This data is rather old, 1978, but the general trend is not too different even today. It is generally believed that scientific research leads to innovative technology, then to economic payoff. But, after seeing the current technological challenge by Japan, we are forced to change this traditional view. Investment in research may eventually lead to economic payoff, but not directly. There is a middle ground between new knowledge and its commercialization. This is an area where the Japanese have been successful. Until the 1970s, many western companies licensed patents to Japan for quick profits. But, in recent years, these companies have become more discrete about the terms of technological transfer. As a result, a number of scientists and engineers are expressing deep concern over the future of technological developments in Japan. A survey was conducted on 450 research managers of private industries in Japan on how they viewed the level of breakthroughtype original research in Japan as

Jan 6, 1986

By Keith S. Olsen

Any discussion of barite mining is virtually impossible without considering, almost in the same breath, the many other variables, such as beneficiation, transportation, infrastructure and location that impact the economics of a particular barite orebody. My comments will be limited to just the mining aspects of barite orebodies and these observations must be considered in proper context with all other parameters affecting exploitation of a barite property prior to final decision on economic feasibility. In many instances low-cost mining situations are more than offset by high-cost beneficiation requirements. Likewise, there are cases of relatively high-cost mining associated with no or low-cost beneficiation requirements thus permitting economic exploitation. Barite orebodies and occurrences are almost as varied as the number of occurrences. As in most mining situations, the design of a mine plan and implementation of a proper exploitation program must be approached on a case by case basis. Proper and sufficient geologic control of a barite orebody must precede the development of a mine plan. Generally speaking, barite orebodies can and, at many times, do "strange" things; pinch with depth; almost never increase in size with depth, overturn, fault-off, change grade, etc. Due to the extreme variable nature of most barite orebodies, a mine plan and its implementation must be as flexible as possible. The ability to quickly adapt to variable conditions will greatly enhance the economics within a particular barite mining environment.

Jan 1, 1980

By Kenneth W. Luke

In the development of the ultimate pit limits for a narrow ore body, pa¬rameters necessary in the design of a functional, or working, pit become highly sensitive factors in the determination of ore reserve levels and their associated waste to ore stripping ratios. Through the use of geologic cross sections, ore reserves can be roughly calculated by utilizing a straight line approximation for pit wall slopes. The optimum position of the pit floor can be substantially altered from such a preliminary design though with the introduction of functional mining parameters, such as a ramping network, and working bench heights, berm widths, and bench to bench wall angles. Originally a computer program was developed to quickly evaluate changes in cross-section pit design with minimal alteration of input data. After developing a satisfactory technique of cross-section evaluation which incorporates working mine parameters, an optimization algorithm, or procedure, was developed and included in the program to eliminate much of the tedious manual decision-making required in determining the optimum location of the pit floor on each cross section. Optimization in this case implies the maximum profit pit. When pit and processing costs are defined or hypothesized, this computer program can be used to design the maximum profit pit, constrained by the recognized functional mining parameters. A second way of stating the optimization is that the program can be used to develop a pit design which minimizes waste stripping at any desired ore reserve level. The basic method of cross-section evaluation parallels present manual methods. Program input is a combination of data obtained directly from cross sections developed for, geological interpretation and pit design parameters selected by the mine planner. As a result it is easy for the mine planner to comprehend what the program is accomplishing, and thus participate in the development of the computer assisted design.

Jan 1, 1971

By I. Weir-Jones

[Currently the cost of carrying out 'in situ' geotechnical investigation programmes or installing and operating monitoring systems at construction or mining sites is rising var." rapidly. This is primarily because of our ever increasing labour rates. As a result of this problem efforts are no,, being made develop techniques for the economical; collection of large quantities of geotechnical data relating, to such problems as done stability evaluation, the behaviour of underground openings, or 'in situ' testing procedures. The efforts to reduce the labour content. are particularly apparent in those procedures which have traditionally been manpower intensive e.g. 'in situ' permeability testing where an entire drilling crew and their associated eguipment have been on standby while testis has been carried out; or data collection in underground construction operations where much tine is typically wasted obtaining or maintaining access to instrument sites. In an attempt to illustrate one specialist consulting company's approach to the problem of reducing investigation costs, this rarer examines four recent developments in the field of geotechnical investigation and monitoring which have come about during the last two Years as a result of cur research and development programme. Although these techniques and devices have been developed for specific projects, they all have broad applications in the geotechnical field and they are indicative of the direction in which this company feels developments will take place.]

Jan 1, 1975

By David M. Lapham

In Pennsylvania, 310 sampled sites of clay and shale have been evaluated for: potential use, chiefly as structural clay products, refractories, and lightweight aggregate; lithology; physical properties tests; fired tests, both quick-fire and rotary kiln; major-element chemical analyses, and quantitative five-component X-ray mineralogy for quartz, mica, feldspar, kaolinite, and chlorite-vermiculite-montmoril-lonite. Approximately 80 percent of the samples are of some potential use. Of 220 shale samples, 84 were potential lightweight aggregate sources and 83 potential brick sources. Binary correlations of test data versus potential use indicate that certain empirically determined parameters may be critical. These are: lithology, particularly for medium to super-duty refractories and lightweight aggregate; kaol-finite content for refractories versus low-temperature fired product sources; quartz content illustrating that there is an apparently necessary minimum quantity for brick; quartz content, which is low in high grades of lightweight aggregate; mica content, which is low for refractories and possibly high for lightweight aggregate; total iron, which is low for refractories and shows a 40 percent minimum for lightweight aggregate; carbon dioxide, which is low for refractorfes, beneficial in lightweight aggregate, and probably restrictive for some tiles choroite yermicalite, which is low for refractoies and possibly beneficial in lightweight aggregate. In Pennsylvania, clay and shale materials constitute one of the state's major economic mineral resources. To date, the testing program indicates considerable development potential in brick, tile, and lightweight aggregate industries, and perhaps a future potential for aluminum from shales that exceed 20 percent A12Q3.

Jan 1, 1971

By R. Addison, P. V. Avotins, E. Martinez, L. A. Haas, D. K. Mortenson, E. EI-Shall, R. D. Kulkarni, M. D. Flavel, S. Chong

Mineral processing activities in general reflected the economic ills of 1981 and early 1982, but in some areas the depressed state of the industry resulted in increased activity. As were all aspects of the minerals industry, processing plant operations were severely affected by the recession-prone economy, by sagging prices for primary metal products-copper, molybdenum, nickel, iron, manganese, and especially uranium-and numerous shutdowns and layoffs. Copper production by major producers in Arizona and Utah was severely curtailed; Amax, the major US molybdenum, producer did considerable belt-tightening; and the uranium industry was in a state of disaster. Even the precious metal superstars-gold and silver-were affected, with a steady decline throughout the year in world market prices. Perhaps hardest hit have been newly developed properties, particularly in the uranium industry, and old-line properties where historical development impacts today. No longer can such properties afford the luxuries, for example, of a long haul distance between mine and plant or continued use of antiquated facilities. Surprisingly enough, the very state of the economy has caused increased activity in some sectors of the mineral processing industry. In mill design, although large projects have been tabled, smaller projects have gone on, with innovations in design, often for cost-saving reasons, that will affect future designing approaches. Economic restrictions are impacting on mill flowsheets as researchers look for improvements and better, less expensive techniques. Other unit processes-hydrometallurgy, pyrometallurgy, concentration, materials handling-are impacted by the need for a better, less costly product. Although at the end of the first quarter of 1982, no major environmental legislation had been enacted, rumors persist that there will be a loosening of some of the stricter standards, both in the requirements themselves and in the time allowance for implementation. The year had seen some relaxation in how current legislation and standards are administered. For example, in OSHA (Occupational Safety and Health Administration) operations, there has been a shift toward voluntary checking of industry compliance with work rules, rather than emphasis on agency inspections. However, the industry continues to view environmental factors as having major influence on future operations and efforts to design for environmental safety are becoming almost as important as the processes themselves. Throughout the industry there has been a further focussing on project management, recognizing the necessity for tight control of budgets and schedules-and the systems used to effect them. Materials Handling Review prepared by A. T. Yu, ORBA Corp. The frenzy of coal export activities has continued into 1981. Many modern export terminals are now in construction while others have either been held up or cancelled. Economics and environmental permits have been some of the major problems. Currently under construction are terminals in Newport News, VA; Charleston, SC; and Baltimore, MD. Expansion of existing facilities at Mobile, AL, and New Orleans, LA, is also well under way. A wide variety of systems and components are being used. They include traveling shiploaders, tunnel and bucket wheel reclaim¬ers, stackers and high line trippers, and bottom and side dump-type car dumpers. Manufacturers from Japan and Europe have been participating along with domestic suppliers. As an attempt to avoid environmental problems, a system of loading and unloading coarse coal

Jan 5, 1982

By John F. Shea

When Dick Robbins asked me to give a keynote address, I felt it might be in order to review some of the practices and techniques used in tunneling and work up to some of the concepts now used to mine and construct tunnels. Needless to say, there have been many changes in tunneling technology and also many changes in the Safety Codes controling them. An example of this latter change was the fact that in 1931, my father excavated the Owyhee Tunnel No.5 with gas locomotives. He was able to do it because there was no natural gas in the rock and the ventilation system was designed to free the tunnel atmosphere from powder and exhaust fumes. Today OSHA rules would never permit gas locomotives underground, although there were no incidents on this particular project. One of my first tunnels, as Project Manager, was the Clear Creek Tunnel for the Bureau of Reclamation. Our method of handling muck was the Conway Muckers. This unit was a valuable improvement to the hand mucking of previous generations. The Conway was also used in our Navajo Project, in New Mexico. Unlike the Clear Creek project, where water was one of our main problems - up to 7,200 gallons per minute, at a pressure of 395 pounds per square inch - in the Navajo Tunnel, we had a mixed face which caused a major problem with our support system. In one of the Navajo Tunnels, there was a major cave-in, when the squeezing shale came in during an attempt to strengthen the support system. Although moving shale was not a constant problem, there were areas where the shale was five to six feet above the spring line.

Jan 1, 1976

By Thomas J. Neil, O&apos

Most analysts find that progress has been evolutionary in any technologic field. To be sure, a few discrete breakthroughs can usually be identified, but viewed in its entirety, the curve of technologic progress over time tends to be relatively smooth with few discontinuities. Even in those cases where a major scientific discovery is achieved, the rate of technologic progress is limited by the often surprisingly slow rate of commercializing the concept into usable products. Whereas discovery and invention tend to be discrete events, technical innovation is often a painfully slow process. In spite of overall gradual change, technologic progress in most fields, when viewed in retrospect, tends to reveal certain relatively homogeneous periods where little change is evident, separated by episodes of accelerated progress. Thus, open-pit mining over the past century has changed from predominately train haulage to truck haulage and is now experiencing a major increase in belt haulage. Ore reserve estimation is another field that fits the same pattern, and the history of mine evaluation lends itself to a similar analysis. Evaluating mine investment opportunities is a fascinating aspect of mining. The unique set of risks inherent to every mining project is particularly intriguing. Geologic risks are most obvious, since faulty ore grade and tonnage estimates are among the leading causes of mine failures. Wide swine's in mineral commodity prices are usually cited as another major risk in mining. Because any ore deposit is a finite resource and the miner has limited discretion in selecting a mining sequence, mines are generally at the mercy of notoriously fickle commodity markets. There is a tendency for many mine investment analysts to feel that mineral market uncertainties are unprecedented in severity. Of course, prices in other markets rise and fall also-in some cases as precipitously as with minerals. However, two other mining characteristics tend to compound this marketing risk. First, the preproduction development period for a new mine is characteristically long. Under extremely favorable conditions, a significant mine may be developed in as little as two years, but the norm is four to six years or more. Second, mining is among the most capital intensive industries, consistently ranking near the top among all industrial sectors in assets per employee, and near the bottom in annual sales dollars per dollar of assets. Thus, mine investors typically have large sums invested for a long time before the outcome of the venture is determined by notoriously unpredictable markets. This is not a business for the faint of heart, and the importance of sound investment decision making is obvious. The high risk and technical complexity of mining operations have combined to require greater attention to financial evaluation by mining engineers than by most engineers in other specialties. Nearly all early mining engineering textbooks dealt with problems in mine valuation in a detailed manner; and, today, the sophistication of capital investment analysis is high in the mineral industries. Traditional Mine Valuation Methods Although some evaluation process has no doubt accompanied nearly every mine development throughout history, a formalized quantitative approach first emerged in the last half of the 19th century with the establishment of academic programs in mining engineering. The philosophy and approach to mine valuation that evolved at this time were, with periodic minor refinements, considered the standard for nearly a century. Only after 1960 did major changes begin to occur. The traditional approach to mine valuation reflected the investment community's historic attitudes toward risk. Mines were generally considered too risky for debt financing, and virtually every new mine was financed from internally generated funds or new equity subscriptions. The investment evaluation methods that evolved focused on mining's higher risk relative to other

Jan 11, 1982