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By R. Cooper, K. De Wet, A. Janwong

"Horsehead Metal Products is a zinc refinery in Mooresboro NC treating crude Waelz Oxide (WOX) to produce Special High Grade Zinc by a hydrometallurgical process, comprising leaching, zinc solvent extraction/electrowinning (SX/EW), melting and casting and bleed treatment. Cadmium removal by zinc dust cementation plays an essential role in the bleed treatment circuit to prevent a build-up of cadmium in the circuit. Silica, although not present at significant levels in the WOX feed material (approximately 0.3%), had a significant impact on the efficiency of cadmium cementation with zinc dust, most likely due to the passivation of zinc dust particles with silica gel. Solid/liquid separation efficiency by filter press was also impacted. The silica levels were mapped throughout the circuit in an attempt to identify the source of the silica issues. Adjustments including using PLS as feed to cementation, pH control in WOX leaching and neutralization have been introduced to mitigate the issues created by silica gel in the circuit. INTRODUCTION Located in North Carolina, Horsehead Metal Products Inc. is a hydrometallurgical zinc refinery processing Waelz Oxide (WOX) to produce Special High Grade (SHG) zinc. The flowsheet, known as the Modified Zincex® process, consists of leaching, solvent extraction, electrowinning, melting and casting and bleed treatment as illustrated in Figure 1. Cadmium cementation, part of the bleed treatment process, provides an essential bleed of cadmium from the circuit, as metallic cement. The Cadmium cementation circuit consists of agitated cementation reactors, a zinc dust addition system, filter presses, agitated purification (releach) reactors and a cadmium concentrate filter press Silica can be found in several forms in acid leaching. The first form is fine silicate particles. The size of the particles can vary from one to twenty microns (1). Fine silicate particles can lead to the formation of crud in solvent extraction circuits (2, 3). At Mooresboro, crud has been observed in Depletion, which is part of the solvent extraction circuit. Silica content in the solution in this section is high. The second form of silica is monosilicic acid Si(OH)4, which begins to polymerize almost immediately upon being leached into solution. Monosilicic acid polymerizes to silica gel or a silica precipitate dependent primarily on supersaturation (5). Factors that influence the rate of polymerization include temperature, sulfuric acid concentration / pH, hydrofluoric acid concentration, seeding, and dissolved salts concentration such as zinc and aluminum in the solution (4, 5, 6). In sulfate systems, silica solubility is reported in the range of 150 to 450 ppm of SiO2 (3, 5, 7)."

Jan 1, 2016

By R. J. Gary

Why would a company in its right management mind risk a fuel conversion program on a fuel that can't burn if it's too wet or too dry, too hot or too cold, too coarse or too fine, or doesn't have enough Btu's to supplement good combustion? On December 23, 1981, two months ago, we finished our first ten years of burning lignite -- this unconventional coal. It is from that experience that I am qualified to address you today. As some of you here probably already know, my company, Texas Utilities Generating Company, has pioneered the utilization of Texas lignite for electric power generation on a large scale, and I think it is fair to say that we have done this pioneering work largely on our own. Some of us feel like Noah did when he built the arc! I have titled this presentation "The First Lignite Decision" because our company was the first to make this major decision in Texas in the mid-1960's. It was a big decision, and at the time, perhaps a bold one. When you look at the conditions that existed in the mid-1960's, you can see why.

Jan 1, 1982

By S. Rezaei

Moving ground in the mining industry is almost inevitable; however comprehensive awareness of these movements is necessary to mitigate risk. Monitoring of displacements caused by mining is a key tool for geomechanical risk management. Good monitoring may prevent unexpected failures and protect personnel and equipment. Many displacement monitoring techniques are available, however not all are reliable, accurate, and cost effective. Close range photogrammetry (CRP) is a monitoring method with high accuracy, reliability, and cost effectiveness; and has the ability to measure places that are inaccessible. In CRP, some series of photos are taken in different positions with different angles at different time intervals depending on the displacement rates. These photos are processed using PhotoModeler software and 3D models are made. By comparing 3D models, displacements can be measured. This method has been demonstrated at the Freeport-McMoRan Safford Mine in Arizona. A fault related instability in part of the pit is reactive to mining, and provided an opportunity to compare results between traditional monitoring methods and CRP. In this project, multiple series of photos were taken at different times using a Canon 5D Mark III digital camera, then PhotoModeler software used to make 3D models for each specific measurement event. Movement rates were determined by comparing different 3D models. These results are then compared to results of other monitoring methods to validate the CRP displacement method.

Feb 27, 2013

By Francis F. Pitard

North America had an Important role in the early development of sampling theories. Unfortunately many progressive ideas were soon frozen into a series of guidelines based on the philosophy that "honest sampling only requires good judgment and practical experience". Such a philosophy appeared to be good enough In the early age of the mining Industry; however, it became quickly necessary to find new approaches. During the last thirty years, Pierre Gy's sampling theory provided tremendous breakthrough in the comprehension of this new science, nevertheless went unnoticed in North America. Sampling always generates complex problems and as the philosopher and mathematician Descartes suggested: "A complex problem can often be dissociated Into a series of several simpler problems, only then you try to solve those one by one". The only way to solve sampling problems is to consider each component of the overall sampling error: components of a continuous model such as long-range quality fluctuations, periodic quality fluctuations, weighting fluctuations; components of a discrete model such as materialization errors, delimitations errors, extraction errors, fundamental errors, grouping errors, and segregation errors. PAST AND CURRENT PRACTICES Many sampling methodologies have been developed, improved, and standardized during the first half of this century. Accordingly, sampling equipment has been proposed, selected, and used by standards committees. Today, there is a tremendous variety of sampling methodologies and corresponding tools offered to anyone with limited experience in sampling and it is very easy for a chemist, metallurgist, geologist or miner to spend considerable money in equipment transgressing the most basic rules of sampling correctness. Sampling stations that never worked properly in modern plants often cause engineers to abandon them and return to a primitive form of grab sampling.

Jan 1, 1986

By P. A. Korpi

In March of 1978 the first set of Angular Spiral Liners utilized in grate discharge ball mills for wet grinding was put into service in the San Flanuel Concentrator of Flagma Copper Company. The use of these liners has decreased grinding media consumption by 19.2% and grinding energy consumption by 15.8%. In addition a 1.1% increase in grinding throughput is being realized through the use of the system. This paper describes the Angular Spiral Lining System and reviews the test program at the San Manuel Arizona Concentrator. Operating parameters are discussed in addition to the current testing program to futher optimize the system.

Jan 1, 1982

By Lynn B. Hales, John A. Herbst, Thomas L. Gabardi

A system for a continuous determination of the charge volume of grinding media in ball mills and SAG mills has been developed. The system, comprised of a unique measurement device and a model based Kalman filter algorithm, determines grinding media level within a mill and calculates media and liner wear rates. The signal from an instrumented washer mounted on the exterior of the mill shell is used to provide the measurement that, along with mill power and on-line models for media mechanics, result in estimates of mill parameters that can be used in media addition control strategies. Data are presented for a 12.5 x 15 ft. ball mill.

Jan 1, 1990

By William P. Blacutt

This paper examines Bolivia's General Environmental Bill recently passed by Congress: a multi-purpose law with two primary objectives: a) the protection and conservation of the environment, and b) the promotion of sustainable development. In this law, environmental benefits are emphasized by stating general principles, not by attempting to define the means. Regulations are left to the writing of subsequent complementary codes. This paper shows that much of the controversy surrounding the legislation disappears when it is seen as guide rather than an operational part of Bolivia's industrial policy. In essence, the law addresses recent environmental awareness in a region more anxious than ever to speed economic growth.

Jan 1, 1992

By S. J. Porter, M. T. McRae

The new tunnel at Genting Sempah is part of a privately funded infrastructure projectthat involves duplicating the existing highway extending from the Gombok Toll Plaza near Kuala Lumpur to Karak, in Malaysia. The 60 km long tollway includes an 800 m long, two-lane highway tunnel with excavated dimensions of 10.5 m wide by 8 m high. The majority of the tunnel extends through slightly to moderately weathered, moderately to highly jointed quartz porphyry. Excavation of the tunnel was performed using drill and blast methods and the primary tunnel support consists of rock dowels and shotcrete except for short sections adjacent to the portals where steel sets were utilized. A portion of the tunnel encountered sheared and altered material that was successfully supported using rock dowels and shotcrete. The final lining for the tunnel consists of mesh and fiber reinforced shotcrete. The flexible nature of the primary support and shotcrete final lining resulted in considerable cost savings and expedient construction methods.

Jan 1, 1997

By KAGAN BENZESIK, OMUR CAN ODABAS, SELCUK KAN, Onuralp Yucel

In this study, domestic molybdenum disulfide (MoS2) concentrate was roasted in a chamber furnace and then in a rotary kiln. The behavior of the roasting process was examined in both furnaces, and which type of furnace is more advantageous to use in mass production was investigated. It is theoretically possible to roast in a chamber furnace, but a major problem was observed when the amount of concentrate was increased in the chamber-furnace experiments. The problem was solved by using a rotary kiln. This study improves the understanding of the roasting of  MoS2 concentrate and presents a different perspective to the industry, showing that rotary kilns can also be used for roasting.

By R. L. Grayson

In 1995, Congress abolished the Bureau of Mines in the Department of Interior but preserved the safety and health research functions being performed at the Pittsburgh and Spokane Research Centers. These functions were transitionally housed in the Department of Energy before permanently merging with the National Institute for Occupational Safety and Health (NIOSH), Department of Health and Human Services, in October 1996. Since the merger of the former Bureau with NIOSH, there has been an active evaluation of ongoing research activities, significant interaction with stakeholders, and the development of a process leading to "data informed" priority setting. This presentation will review current surveillance information concerning the level of injury and disease from mining work and will discuss how research priorities are evolving to improve the contribution of research to the prevention of injury and disease.

Jan 1, 1998

By J. L. Thompson

Lime made in a coal-fired, rotary kiln has two distinct parts: the interior of the pebble which constitutes about 90% to 95% of the mass, and the surface dust layer which is the remaining 5% to 10%. Uncalcined carbonate and impurities in the product may be present and will not contribute to the hydration reaction. Sulfur, in the form of calcium sulfate, inhibits the hydration reaction out of all proportion to its actual weigh-percent concentration (perhaps more than 100 times). If the stone contains dolomite, this will also inhibit the reaction as its rate of hydration may be nearly 3 orders of magnitude slower than that of calcium oxide. Early in the hydration reaction dolomite appears practically inert, but given sufficient time, it will hydrate. The heat of reaction is nearly the same as for calcium oxide, but the time necessary for complete hydration may be hours; whereas for calcium oxide it is only fractions of a second. The dust layer on the surface also inhibits hydration as it contains a collection of compounds which have low heats of hydration. This layer can tie up additional calcium and delay or prevent its reaction. In addition to these chemical processes, an important physical characteristic of the lime is its specific surface area. This is effected by the thermodynamics of calcination and the original stone grain chemistry. All of these factors are agglomerated in the gross slaking rate of lime. The total hydration of the chemical complex that is called commercial lime can be more easily understood by considering the individual reactions and combining them to form a more comprehensive picture of the situation. Calcium oxide and magnesium oxide hydrate similarly, differing only in their reaction kinetics. Dolomite, however, reacts differently than a simple mixture of calcium oxide and magnesium oxide as its hydration is strongly influenced by calcination thermo-dynamics and stone grain structure. Finally, the dust hydration and composition should be examined Understanding these reactions enables one to examine hydration reaction graphs with more insight into the factors which determine their shape.

Jan 1, 1978

By Erwin Riyanto, Roy William, Karl Llewellyn

The Deep Mill Level Zone (DMLZ) mine is currently one of the deepest block cave mines in the world. The rock mass is heavily veined with little to no joints and faults are usually healed cohesive structures leading to difficult cave mining conditions. The caving process is improved if the rock mass contains fractures with sufficient density that it will cave by gravity as undercutting progresses. Hydraulic fracturing (HF) has been used to create fractures around the cave to improve mining. A seismic monitoring system has been used in DMLZ since the start of mining. Therefore, the seismic activities before, during and after HF can be monitored. Shear wave splitting is a process used to study the impacts of HF on the rock mass. This process involves the measurement of travel times from splitting shear waves after seismic events and using this to define the anisotropy within the rock mass and subsequently fracture density. This paper sets out the methodology for carrying out the interpretation of the shear wave splitting process using seismic data from the fracked cave crown and abutments along with an overview of the benefits to cave mining as result.

Apr 26, 2022

By Carrie Smith

The Society for Mining, Metallurgy & Exploration’s annual conference and expo, MINEXCHANGE 2026, will take place Feb. 22–25, 2026, at the Salt Palace Convention Center in Salt Lake City, UT. The event will foster a hub for innovation, technical exchange and policy discussion for the global mining industry. Over four days, attendees will take part in short courses, technical sessions, field trips and networking events that highlight the advancement of the mining industry. The conference’s keynote session, titled “Regaining America’s Mineral Dominance,” will start at 8:30 a.m. on Feb. 23 in the Grand Ballroom E–J. The speaker will address the sweeping policy actions now shaping the nation’s mineral future, following a series of executive orders issued by the Trump administration designed to bolster domestic mineral production and energy security. These directives, including Immediate Measures to Increase Domestic Mineral Production (EO 14241) and Establishing the National Energy Dominance Council (EO 14213), have set in motion a coordinated effort across the Departments of Interior, Energy, Defense and Commerce to enhance the United States’ position as a global leader in critical minerals. The invited speakers include Utah Governor Spencer J. Cox and Nate Foster, managing director of Rio Tinto Kennecott, who will examine how policy and industry are converging to meet surging demand for minerals essential to modern technology. Governor Cox is expected to highlight Utah’s long-standing role in American mining, from the early development of Kennecott Copper to its current position as a producer of 40 of the nation’s 50 identified critical minerals. Foster, meanwhile, will offer insights into Rio Tinto’s extensive operations in Utah, including the Kennecott Copper Mine — one of only two operating copper smelters in the United States — and the company’s ongoing efforts to build more resilient, sustainable supply chains. Rio Tinto’s work in critical mineral production, from copper and tellurium in Utah to new operations in Arizona, has made it a fundamental figure in the U.S. mineral economy. Projects such as the Resolution Copper development and the revival of Gunnison Copper using Rio Tinto’s innovative Nuton technology illustrate how private-sector leadership is driving sustainability in domestic mining. These advancements come at a critical moment for the industry, as copper prices remain near historic highs. The keynote session will emphasize that meeting future mineral demand will require a concerted effort between government, industry and technology partners to secure responsible, domestic production. Immediately following the keynote, the Robert E. Murray Innovation Award Lecture will start at 10 a.m. as part of the same session. Lucy England, managing director at FLSmidth, will present on “Sustainable Copper Mining Flowsheets and the MissionZero Mine.” England, who has spent more than 25 years in mineral processing and innovation, will discuss how FLSmidth’s MissionZero initiative aims to develop the world’s most efficient

Feb 1, 2026

By J. W. Langhans, B. D. Blake

The U. S. Bureau of Mines has been investigating the application of thiosulfate to recover gold directly from low grade refractory carbonaceous ores for the past four years. Statistical experimental methods were used to determine the effects of various leaching parameters on both gold extraction and thiosulfate consumption. Seven variables were investigated, including thiosulfate, copper, ammonia, sulfite, and sulfate concentrations, leaching time, and leaching atmosphere. This information was used in face-centered cubic (FCC) surface response experiments to define the optimum leaching conditions for a low grade ore. Two models were generated from the data to predict gold extraction and thiosulfate consumption as a function of the leaching parameters. The models predicted a gold extraction of 67 pct and reagent consumption of 2 kg [S2032/mt ore at 0.25 M S2032-, 0.0014 M Cu2+, 0.27 M NH,OH, 0.00625 M SO;-,] and leaching for 16 h. Actual tests resulted in 62 pct gold extraction with 0.93 kg S2032- consumed/mt ore. Subsequent column leaching tests have further demonstrated the viability of applying this technology to recover gold from carbonaceous ores without first pretreating the material. Gold extractions in the column tests ranged from 69 to 78 pct with thiosulfate consumption ranging from 0.4 to 5.4 kg/mt ore. These results compare to <5 pct gold extraction using standard cyanide leaching conditions.

Jan 1, 1996

By W. M. Ma, Daniel W. H. Su, K. Centofanti, Yi Luo, W. L. Zhong, Syd S. Peng

7.1 INTRODUCTION Subsidence measurements include surveys of surface and sub- surface movements and measurements and monitoring of surface structural damages. In this chapter the most commonly employed methods are discussed. 7.2 MEASUREMENT OF SURFACE MOVEMENT Surface movements involve two basic components, subsidence and displacement. The other five components (i.e., slope, curvature, strain, twisting, and shearing) are derived from the two basic components. Since all measurements are geometrical, they can be measured by common surveying techniques. 7.2.1 MONUMENTS The first step is to select the types of monuments or surveying stations. Various types of monuments have been employed. The simplest one is a paint mark on the pavement or concrete slab, although this should be discouraged because it is easily affected by artificial or environmental factors. Others use steel or wooden rods, 2 to 3 in. in diameter or square by 2 to 5 ft long, driven all the way down, flush with the ground. Both types of-monuments have no provision for frozen ground heave and both are tampered with easily. A more elaborate type is shown in Fig. 7.1 (O&apos;Rourke et al., 1982). A rebar or iron pipe, 2 in. in diameter by 6 ft long is driven down to nearly flush with ground surface. The top 4-ft section of the hole around the pipe is enlarged to 1 ft in diameter and grouted with concrete. The most sophisticated type of monument is shown in Fig. 7.2 (Conroy and Gyannaty, 1983a). It consists of two hollow steel pipes. The inner I-in. pipe, 10 ft. long is enclosed by a 2-in. pipe at the upper 5-ft. interval. The gap between pipes is filled with foam to isolate the inner pipe from external environmental effects. The bottom of the inner pipe can either remain open or be sealed with a cap, depending on whether the ground is dry or wet. 7.2.2 MONUMENT ARRANGEMENT AND SURVEY LINES The monuments are installed strategically to form survey lines. Three basic types of monument arrangements are shown in Fig. 7.3. Figs. 7.3a and 7.3b are for single and multiple panels respectively; Fig. 7.3~ is mainly for research purposes with multiple survey lines both in longitudinal and transverse directions. This is extremely useful for defining the distributions of ground deformation, as shown in Figs. 2.10 and 2.11. Basically there are two types of survey lines: the whole basin survey line which extends across the panel width or length (e.g., lines R, R, in Fig. 7.3 a&b), and the half basin survey line which covers approximately half of the panel width or length (e.g., lines R, F in Fig. 7.3 &b). Survey lines are generally straight and linear. They should be located on the major crosssections of the subsidence basin. Survey lines must extend beyond the edge of the opening for a sufficient distance so that the edges of the subsidence basin can be determined accurately. The minimum distance from the edge of the opening must be [ ] where h = mining depth, [ ] = angle of draw, and [ ] = 5 to 7 times monument spacing for whole basin surveys, or 8 to 10 times the monument spacing for half basin surveys. There must be at least two controlling monuments at each end of each survey line. Controlling monuments must be located beyond the influence of underground mining. The spacing of the monuments ranges from 15 to 200 ft. The UK National Coal Board (NCB, 1975) recommended a spacing equivalent to 0.20 of the mining depth. Peng and Geng (1982) recommended that the maximum monument spacing be dependent on mining depths as follows:

Jan 1, 1992

By T. Qiu

"The purpose of this study is to investigate the effect of the dosage of sodium hypochlorite as activator on the flotations of depressed marmatite and depressed chalcopyrite, with a focus on activation-flotation kinetics. Four flotation kinetic models were applied to test data using 1stOpt statistical analysis software to estimate the relationships between the maximum flotation recovery rates for the depressed marmatite and depressed chalcopyrite, the flotation rate constants and the sodium hypochlorite dosages. Within the range investigated, the highest flotation performances of depressed marmatite and depressed chalcopyrite were obtained at 2.5 mL/L sodium hypochlorite with zinc recovery rate of 93.8 percent and 3 mL/L sodium hypochlorite with copper recovery rate of 94.6 percent, respectively, after four minutes of flotation. A second-order model with rectangular distribution of flotabilities gave the best fit to test data collected at various sodium hypochlorite dosages. For the highest flotation performances of depressed marmatite and depressed chalcopyrite, the respective equations of their flotation models were derived and presented.IntroductionCyanidation tailings are the solid residues generated by gold plants that use cyanide to extract gold (Lv, Ding and Qian, 2015; Zhang, Li and Yu, 2013). Because of increasing demand for gold, the Chinese gold industry has developed rapidly, with production amounting to 451.799 tons in 2014, an increase of 5.5 percent from 2013. Chinese gold production has been the highest in the world for eight consecutive years. As a result, more than 2.45 million tons of cyanidation tailings are estimated to be discharged into tailings ponds every year (Li et al., 2010; Lv, Ding and Qian et al., 2015; Wang et al., 2015; Zhang, Li and Yu, 2013; Zhang, Li and Yu, 2012), and approximately 300 million tons of cyanide tailings are stockpiled in China, with the potential to cause serious environmental pollution as well as death to wildlife (Adams and Lloyd, 2008; Donato et al., 2007; Hewitt, Breuer and Jeffery, 2012; Velasquez-Lopez et al., 2011; Stephen et al., 2009; Zagury, Oudjehani and Deschenes, 2004). Concerns over cyanidation tailings are not exclusively environmental but also economic, as tailings occupy considerable land area, and tailings storage facilities increase the production costs of gold enterprises (Donato et al., 2007). Tailings often contain other valuable metals such as zinc, lead and copper. For example, the cyanidation tailings of Gaoyao Hetai Gold Plant in Guangdong Province contain 2.5 percent copper (Cu), 0.31 percent lead (Pb), 0.23 percent zinc (Zn) and 15.36 percent iron (Fe) (Shi, 2008), and the tailings of Tianshui Gold Plant in Gansu Province contain 1.94 percent Cu, 5.96 percent Pb, 0.27 percent Zn and 24.62 percent Fe. Cyanidation tailings have therefore been increasingly viewed as a secondary resource rather than waste."

Jan 1, 2016

By I. Longson

As a longwall coalface advances a caved goaf or waste region is left behind. Air flow takes place through this permeable goaf due to the pressure differentials existing across it and en route this leakage air picks up both heat and moisture. A marked deterioration in climatic conditions occurs in the face area at all points downstream of where this leakage air rejoins the main air-stream. This goaf heat source can make a very significant contribution, typically 30-40% to the rate of total heat pickup on an advancing UK longwall coalface with a VST of 40°C and hence on the climatic conditions that prevail at the return end and in the return gate of the face. The magnitude of the rate of heat collection from the goaf depends on a number of factors but it has been established that it is particularly influenced by the prevailing virgin rock temperature and the total flow rate of the leakage air. This paper proposes a model for the goaf based on a packed bed analogy and other assumptions required in order to evaluate the rate of heat pickup are identified. The outlet condition of the leakage air predicted by the model have been shown to correlate with underground measurements taken for a range of different production patterns with the face cutter at various locations on the face. The sensitivity of these predictions to variations in the input data has been tested and is commented on. At this stage of the development the capabilities and predictive limitations of the model are discussed. Further areas of investigation are suggested in order to improve the predictive ability and to extend the versatility of the model.

Jan 1, 1989

By V. Claremboux

The transformation of raw iron ore into high quality steel can take place via several processes. A general consistent theme involves the upgrading of the iron ores via methods such as flotation and magnetic separation, the preparation of an agglomerate such as via pelletization or sintering, the smelting of the agglomerate into a high grade iron product, and the further refining of iron into specific steel alloys. Each of these steps admit potential for optimizations and alternatives, and the process overall is critical to meeting the world’s continuing iron demands.

Feb 1, 2025

By John C. Cook

In reasonably dry rock, long-wave radar can theoretically explore to distances approaching 75 meters (250 ft). High-resolution radar reflections have already been demonstrated through 13 m of hard limestone, through 9 to 18 m of coal in place and through 225 m of rock salt, using only low-power experimental radar equipment. Radar reflections have been received through the rock from rough pillar walls, from faults, and from a slim, uncased, vertical drill hole. In three years of intermittent experimentation, the feasibility of rapid radar exploration of large volumes of rock, with portable equipment, in deep, wet workings has been demonstrated. With future, improved equipment the theoretical working range, of the order of 75m, is expected to be attained in most hard rocks. THE TECHNIQUE Fig. 1 illustrates an early "monocycle" radar system (1) set up in a coal mine. This radar equipment is entirely different from that employed for detecting distant objects through the atmosphere. However, the basic principle is the same: a pulse of electromagnetic energy is radiated by the transmitter, a portion is reflected by some "target" object embedded in the surrounding medium and some of this energy is collected by the receiving antenna. In the receiver, the pulse is amplified, is "stretched out in time" by a sampling process, and is displayed on the screen of a cathode-ray oscilloscope. It may also be recorded on paper or magnetic tape. Fig. 2 illustrates a

Jan 1, 1997

By G. Davis

Mineral properties and mineral firms often trade at a market value that is significantly greater than the value indicated by discounted cash flow (DCF) techniques. A possible explanation is that DCF analysis does not consider the value derived from managerial flexibility. Presumably, then, at least some of the difference between DCF value and market value is due to managerial flexibility. This paper surveys the recent attempts to empirically quantify the value of managerial flexibility using option pricing theory. The results indicate that managerial flexibility, at least as measured by the option pricing methodology, falls well short of explaining the gap between DCF value and market value.

Jan 1, 1995