Search Documents

By Wayne Trudel, Eric Saderhold, Lloyd McEvers, Lori Clarke, Charles Lynn Bolin, Leroy Schutz

Editor’s note: This is the second part of a two-part series on how mine geologists added about 141t (4.53 million oz) at Newmont Mining’s gold operations in Nevada during 2003. Part one (ME, July2004, pp. 19-26) showed how cross-functional teamwork among mine geologists, engineers, metallurgists and operators added $65 million in revenues at Newmont’s Gold Quarry Mine. Part two deals with how this same cross-functional team added about 25.8 t (830,000 oz) of gold reserves and two years of life at the company’s LoneTree Mine. This was done through improved reconciliation methods, pit optimization designs and updated geotechnical parameters. Part two also discusses how Newmont’s Nevada mine personnel added about 62.2 t (2 million oz) of gold reserves at its Twin Creeks Mine, extending the mine’s life by several years. The Lone Tree Mine is a sediment-hosted, micron gold deposit. It is dominantly situated in the Golconda thrust footwall. The north-south trending Wayne Zone fault controls the highest-grade ores and

Jan 1, 2004

By Baki Özüm

Early evaluations of Pasquia Hills kerogen shale deposits by Geological Survey of Canada, Saskatchewan Geological Survey, Manitoba Energy and Mines and Sun Oil Company, using modified Fischer Assay, Rock-Eval and other techniques, estimated recoverable reserves of about 2.6x109 barrels of oil in areas favorable for strip-mining; each metric ton of ore was determined to yield about 30 L to 50 L of shale oil remarkably high in aromatic compounds. Western Petrochemical Corp. (WPC) is holding two Oil Shale Exploration Permits covering about 76,635 hectares in the Pasquia Hills Region of eastern Saskatchewan and conducting a 15-corehole drilling program to determine stratigraphic correlation on both first and second white specks kerogen shale. In this program, correlation will be established between oil yield and oil quality, using different retort techniques, including modified Fischer Assay, steam retort and Rock-Eval. Results will lead to further resource evaluation and to a preliminary engineering design for a shale processing plant, including selection of retort process, upgrading of shale oil to petrochemical feedstock, hydrogen management, energy balance and evaluation of environmental impact.

May 1, 2002

Jan 1, 1929

By Yufeng Guo

Mineralogy and physico-chemical characteristics of a nickel hydrometallurgical residue and recovery of iron-bearing minerals by flocculation-magnetic separation were studied. The results show that the nickel residue is super-fine and fraction less than 0.045mm reaches 85.4%. Ferrous minerals are chiefly magnetite and ferruginous glass. Magnetite accounts for 31.7% and exists as free magnetite. Ferruginous glass is of multicomponent amorphous substances with low-iron grade but strong magnetism, and accounts for 39.9% of total iron minerals. Addition of flocculants increases granularity and magnetic force of fine iron-bearing particles and improves iron grade and recovery. The tests with flocculation separation show that a concentrate assaying 56.68% Fe with 81.72% recovery was obtained in a magnetic tube. A concentrate with 56.92% iron grade and 67.96% recovery was obtained by flocculation-magnetic separation with a magnetic cylinder.

Jan 1, 2006

By Wilson O. A

TABLE OF CONTENTS1. Introductiona. Process Changes since 1939.b. Current Practice.2. Ore Characteristicsa. Copper Minerals.b. Gold Occurrence.3. Treatment of High Grade Acid Orea. The Ore Treatment Planti. Coarse Crushing SectionDust Controlii. The Concentrating MillDesliming SectionGranular GrindingGranular FlotationGranular Flotation ReagentsFlotation MachinesSlime FlotationConcentrate CleaningConcentrate Handlingiii. Scavanging No.1. Mill Granular Tailings at No. 2 MillRegrinding UnitScavenger Flotationb. Pyrite Productioni. Pyrite Flotationii. Pumping of Pyriteiii. Storage of Pyriteiv. Pyrite Loading

Jan 1, 1952

By Z Chang, S A. Mrozek

"An EXTENDED ABSTRACT is available for download. A full-length paper was not prepared for this presentation. Antamina, Peru is the largest Cu-Zn skarn deposit in the world. Skarn mineralisation is focused around a multiphase Miocene intrusive complex comprising at least eight distinct phases identified by cross-cutting relationships, including truncated veins, xenoliths and chilled margins. Skarn alteration and mineralisation, as observed in drill core, remain open at depths exceeding 2.2 vertical kilometres.Porphyry intrusions occur as four major phases with subphases (from oldest to youngest): P1 (a, b), P2 (a, b), P3 (a, b) and two dykes of uncertain timing named Oscarina-1 and Oscarina-2. P1a is a hornblende-biotite quartz diorite porphyry with pervasive K-alteration, local endoskarn and 30–40 per cent sheeted quartz veins, all of which obscure original igneous textures. P1b dacite porphyry is a minor unit with <10 per cent phenocrysts and <3 per cent quartz veins. P1b cuts P1a; P2 dykes cut both units. P2a porphyritic biotite quartz monzonite contains K-feldspar megacrysts up to 4 cm long, local K-alteration and 2–80 per cent quartz stockwork veins. P2b biotite monzonite porphyry contains approximately 50 per cent phenocrysts and typically <10 per cent quartz veins. P3a (brown groundmass porphyry) and P3b (coarse phenocryst porphyry) are minor in volume and extent, and both cut P2 bodies. Oscarina dykes comprise two separate but parallel bodies. Oscarina-1 is a feldspar-phyric rhyolite porphyry, while Oscarina-2 is an intensely chloritised andesite porphyry. Oscarina-1 has a U-Pb (laser ablation inductively coupled mass spectrometry (LA-ICP-MS)) age of 10.1 ± 0.1 Ma, whereas P2 U-Pb zircon ages (LA-ICP-MS) range from 10.0 ± 0.2 Ma to 9.9 ± 0.3 Ma.All the intrusive phases contain quartz veins, with P1a and P2a having the most intensive K-alteration and most abundant quartz veins ± endoskarns. Each phase may have contributed to mineralisation at the right depths and within favourable wall rocks (ie marble) during uplift of the Antamina structural block. Therefore, a model of multiple intrusions during continuous uplift explains the vertically extensive (>2.2 km) skarn and mineralisation at Antamina.CITATION:Mrozek, S A, Chang, Z and Meinert, L D, 2015. A model for the intrusive sequence and Cu-Zn skarn formation at the Antamina deposit, Peru , in Proceedings PACRIM 2015 Congress, pp 423–430 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 18, 2015

By H. Rozovsky

"AbstractThis paper discusses the methods of handling air in a large asbestos mill presently being completed at the Jeffrey mine of the Canadian Johns-Manville Company in Asbestos, Quebec.The mill, being the largest single asbestos producer in the world and capable of handling over 14,000 tons of ore per day, requires vast quantities of air. A minimum of 2,500.000 c.f.m. is required or about 10 tons of air for each ton of ore milled.Short descriptions of the process and systems requiring this air are given, followed by details of the fans and filters which make up the heart of the mill.This 'draw through' system, located on the top or 12th floor, is an automatically .controlled volume-pressure system creating the required suction to draw .air throughout the mill building and its numerous air systems.The dry mechanical method of milling develops enormous quantities of airborne dust and fibre. A section of this paper is devoted to a description of the multiplicity of dust systems within a system to control, filter, and remove this dust.Finally, the paper describes the method of returning the filtered air to the• working floors or to the outside, with some notes on heat, humidity and dust counts.IntroductionGeneralTHE discussions in this paper deal only with operations where air movement is involved. No attempt is made to delve into production methods.The Jeffrey mine of the Canadian Johns-Manville Company, located about 100 miles east of Montreal, is the largest single asbestos producer in the world, being responsible for over half of Canadian asbestos fibre production."

Jan 1, 1955

By A. B. Cecala

A few years ago, the National Institute for Occupational Safety and Health and Unimin Corporation developed a clothes cleaning system that is able to quickly, effectively, and safely remove dust from a worker?s clothing without dust exposure to the worker, the work environment, or co-workers during the cleaning process. To perform the process, a worker enters a cleaning booth and activates an air spray manifold which blows the dust from the worker?s clothing. Since the cleaning booth is under negative pressure, all the dust and product removed are contained. In the original design, this dust-laden air was exhausted to a dust collector system. However, since most operations do not have excess dust collector capacity, it was decided to determine an alternative method to provide for a stand-alone cleaning system. This was achieved by ducting the exhaust outside the plant and into the atmosphere. This technique was recently tested and shown to be a viable method to provide for a stand-alone clothes cleaning system.

Jan 1, 2009

By P. den Hoed, R. I. Rambiyana

"Four sulphide minerals - pyrite (FeS2), pyrrhotite (Fe1-xS), pentlandite ([Ni,Fe]9S8), and chalcopyrite (CuFeS2) - contain the base metals and most of the iron in concentrates of platinum group metals (PGMs). In the pyrometallurgical processing of PGM concentrates these sulphides form a matte during smelting, and iron and sulphur are removed from the matte during the converting process. This paper discusses the roasting of Merensky concentrate in air before smelting, with the purpose of reducing the matte load to the converter.Roasting tests were conducted in a bench-scale rotary kiln at temperatures from 350°C to 700°C. The concentrate tested contained 17.4% sulphur and consisted of 23% pyrrhotite, 16% pentlandite, 11% chalcopyrite, and 2% pyrite. The particles were fine (d50 = 22 µm), and all the sulphide particles were liberated. Roasting in air at 550°C and 650°C for 20 minutes removed respectively 60% and 70% of the sulphur. The iron in the sulphides was oxidized to Fe3O4 (magnetite) at temperatures below 500°C and to Fe2O3 (haematite) at temperatures above 550°C. At 700°C the bed sintered and copper oxides formed. At temperatures below 450°C oxidation was incomplete: pyrrhotite remained and only 30% of the sulphur was removed. Smelting tests were conducted to assess matte fall and the deportment of copper and nickel to matte. It was evident that roasting resulted in lower matte falls (a drop of approximately 60%) compared with matte falls from unroasted concentrate. The iron and sulphur levels in the matte were reduced to below 3.5% and 22% respectively.This paper also briefly describes the mechanisms by which pyrrhotite, chalcopyrite, and pentlandite are oxidized during roasting. For chalcopyrite, the mechanism proceeds through an intermediate solid solution phase, which extends from Cu1.02Fe1.04S2 to Cu2.04Fe0.72S2 to a copper-rich solid solution of bornite (Cu4Fe1.4S4-Cu2S). The oxidation of pentlandite proceeds through a monosulphide solid solution (Ni0.39Fe0.53S-Ni0.74Fe0.15S) to a solid solution of heazlewoodite ([Ni,Fe]3}xS2). These mechanisms are explored in relation to chemical thermodynamics and microstructures."

Jan 1, 2015

By Roger A. Archabal, Omar A. Conte, Gustavo Langoni

This international case study focuses on the rigorous geotechnical interaction and results of a soil improvement program utilized to mitigate consolidation settlements of over 1.5 m [5.0 ft]. The extreme settlement results from very deep, nearly normally consolidated clay and the required high floor loading of a new Logistics Park near Bogota, Colombia. The general subsurface conditions consist of very soft clay extending to depths beyond the 50 m [164.0 ft] explored. A required 1.2 m [3.9 ft] thick fill combined with high floor loads resulted in an applied areal load of approximately 7 ton/m2 [1300 psf] (equivalent to about 4.5m [15.0 ft] of fill). Langan recommended performing a test section to validate the initial consolidation settlement calculations and evaluate possible optimization of the prefabricated vertical drain (PVD) spacing and length. The test section sizing was designed to accurately represent the stresses at depth of the future structures. Extreme settlements of over 1.5 m [5.0 ft] in the center and large differential settlements of over 0.6 m [2.0 ft] were measured between the center and corners of the test section over a relatively short test time. Discussion on the methodology, instrumentation, measured results and future optimization are presented. The recommended soil improvement varied from the standard approaches typically utilized in the area. PROJECT LOCATION AND DESCRIPTION The project site is immediately north-northwest of the city of Bogota in the Bogota Valley. The site is bordered with, and has historically been, farming land bordered to the south by the El Rosal-Bogotá highway. The overall site encompasses about 570,000 m2 [141.0 acres] of gross area and about 484,000 m2 [119.6 acres] of net buildable area. The warehouse complex will consist of 10 very large warehouses with footprints ranging from about 15,000 m2 [3.7 acres] to 30,000 m2 [7.4 acres]. The total building area is about 210,000 m2 [51.9 acres] with most of the remaining areas being paved principal drives, truck parking or administrative parking. The topography of the site is relatively flat and close to final grade in roadway areas. However, the warehouse floors will be raised about 1.2 m [3.9 ft] (equivalent to about 2 t/m2 [370 psf] considering engineered fill) to allow for truck docking. In addition, the design floor loads are heavy and estimated to be up to 5 t/m2 [930 psf] and equivalent to about 2.5m [8.2 ft] of fill. Geotechnical conditions at the site are very weak at depths of 50 meters [165 ft] or more, with soft compressible clays comprising the majority of the soil profile. The Bogota Valley is composed in some areas of very deep alluvial deposits. These deposits have been classified as an important challenge and limitation to the development of high/heavy structures such as the project in question for many years (Orozco, 2006). Soft clay deposits have been encountered even beyond depths of 100 meters [328 ft] in some regions of the Bogota Valley (Sanz, 1994). Extreme settlements can be expected if extensive and high permanent loads (above preconsolidation stress levels) are supported in these thick alluvial deposits.

Jan 1, 2018

By Juan Kobashicawa, Bernardo Falcón

En este trabajo se explican los controles automáticos desarrollados (In-House) e implementados en el circuito de Molienda de Compañía Minera Antamina, el cual abarca Molinos SAG, de Bolas y los Hidrociclones respectivos. Los controles implementados son basados en el Control por Lógica Fuzzy y las Bandas de Bollinger; así mismo se indican los criterios en el diseño de los controladores y las variables del proceso que se han tomado para la implementación donde se controla un indicador de distancia del centro de masa de la carga respecto al centro del molino de Bolas. Asimismo, se muestra el impacto positivo logrado con la estabilización del circuito.

Sep 1, 2017

By David Lin

"Modal data from Red Dog Main Pit ores were collected and analysed on a size-by-size basis. The Main Pit data were compared to data from composite samples of Red Dog Aqqaluk ores. The data revealed that a large fraction of the sphalerite in the Aqqaluk baritic ore was tied up in sphalerite/galena binaries. This provided an explanation for its poor leadlzinc selectivity compared to Main Pit ores. The Aqqaluk vein ore exhibited levels of sphalerite/galena binaries comparable to that of Main Pit ores resulting in comparable lead/zinc selectivity.An attempt was made to correlate the modal and metallurgical data for Main Pit stockpiles. It was found that there was moderate correlation between the percentage of sphalerite locked in binaries with galena in the <C5>C6 size fi-action and sphalerite deportment to the leadconcentrate.INTRODUCTIONTeck Cominco’s Red Dog Mine in northern Alaska is one of the richest zinc districts in the world. Red Dog Mine has been in operation for over ten years and produces nearly 1 million tonnes of zinc concentrate per mum. Red Dog Mine is an open pit operation and current mining is conducted in the area known as the Main Pit. The Main Pit contains proven reserves of about 41 900 000 tonnes of ore grading 19.2% Zn and 5.2% Pb (Cominco 2000). To the north of the Main Pit is the Aqqaluk deposit. It contains probable reserves of 56 100 000 tonnes of ore grading 16.6% Zn and 4.1 % Pb. After the Main Pit has been exhausted, the Aqqaluk deposit will be exploited.The Aqqaluk deposit consists of three main geologic ore types: baritic, siliceous and vein. The siliceous ore type is dominant, representing 64% of the mineralisation. Composite samples of these ore types were created from drill core and batch flotation tests were performed on them. The flotation tests indicated that there were significant metallurgical differences between Main Pit ore and the Aqqaluk siliceous and baritic ore. The siliceous and baritic ores were found to suffer from poor lead/zinc selectivity (Lin 1999, G&T 1999). It was suspected that there were problems with the original Aqqaluk composite samples, thus a new set of composite samples were created and batch flotation tests were conducted again. In this set of tests, the new baritic ore still suffered from leadlzinc selectivity problems, but the new siliceous ore provided excellent metallurgical results. A summary of the flotation results is given in Table 1. Stockpile 132, which is typical of Main Pit ore, is given for comparison purposes. The mineral suite at Red Dog is relatively simple. The ore consists of galena, sphalerite and pyrite in a silicate matrix. The low zinc recoveries of the baritic ore were largely due to sphalerite losses to the lead concentrate."

Jan 1, 2002

By Thomas Varley

During the past few years, since flotation has become the paramount treatment method for most all kinds of ores, the Bureau has gathered the data on consumption of reagents used in the flotation treatment. The first report was issued in 1916. A brief review of such reports snows the progress made in the art of flotation, and each year brings forth the development of new reagent a or combinations of reagents that seem sure to survive, but research and progress spell their defeat, if not by entire elimination, at least subjects them to considerable modification.

Jan 1, 1928

Calculations of the temperatures of metal, coke, and gas at any level in the cupola furn~ce can be carried out by means of heat balances, using data obtained from experiments with an 18 in. experimental cupola. The results can, to a certain extent, be verified by means of heat transfer calculations.The curves thus obtained, showing the variation of temperature with height in the cupola, provide a valuable picture of the heat transfer processes in a shaft &apos;furnace.INTRODUCTIONThe Brown Coal Research Laboratory, of the University of Melbourne, has been engaged in recent years on a programme of iron-melting tests in an experimental cupola furnace.Although the ultimate aim of this work is to develop brown coal char as a cupola fuel, most of the experimental work so far has been with conventional coke. The testing programme was designed to provide information on the effect of variables such as blast rate, metal-coke ratio, and coke size on the overall melting process, e.g. melting rate, temperature of metal tapped, and stack gas composition.However, in many cases data were obtained on conditions inside the furnace by measuring temperatures and gas compositions. The aim of the work described in this paper was to qevelop a method for using this data to obtain information on the processes taking place in the cupola.Very little research has been done on the combustion of fuels in shaft furnaces. Early work on this subject, as well as the initial stages of the Brown Coal Research Laboratory&apos;s programme, has been discussed by Evans (1959). The use of probes for obtaining information on conditions in the interior of a shaft furnace was pioneered by Belden (1913)...

Jan 1, 1963

Copper waste dump leaching is growing in importance because of the.large tonnages (up to 250,000 ton/day) of low grade waste rock available from open cut mining of copper deposits and proof that controlled leaching of copper from such dumps can be profitable.Overburden or waste rock, ranging in size from large boulders to fines, is dumped as cheaply as possible on sloping sites. Copper is leached from the dumps by applying up to 12,000 gal/min of leach solution (a combination of spent solution from cementation and make-up water) to the top of the dumps by various techniques.Efliuent from the dumps is sent to a cementation plant for copper recovery.Factors which may be controlled, either directly or indirectly, to give a controlled copper content in the dump efliuent (usually 1-2 g/l.) are the cycle of operations (i.e. the alternate wetting and drying periods), thevolume of solution applied to the dump, pH, Fe2+ and Fe3+ content or redox potential, oxygen content, bacteria and their necessary nutrients, and temperature.Dissolution of oxide copper minerals appears to be mainly a function of acid concentration. Copper sulphide minerals need oxidation for dissolution to occur and this is accomplished by a combination of oxygen,ferric ion, and bacteria. Oxidation of pyrite, oxidation of Fe2+ to Fe3 +, and hydrolysis of Fe3+ are of some importance in leaching practice. The presence of gangue carbonate minerals is detrimental.Physical factors connected with penetration of solution into large rocks are important and the treatment of an individual dump usually extends over a period of many years. Recovery of copper from solution is usually achieved by cementation with iron (usually in the form of crumpled cans) but the use of sponge iron is becoming more important. Iron consumption varies from 1 to 4 lbiron per pound of copper. Preconcentration of the copper in the efliuent solution by solvent extraction followed by electrolysis may become a useful method.Application of dump leaching techniques to metals other than copper depends on finding an economic method of recovering the metal from solution...

Jan 1, 1967

By W. G. Willson, D. E. Walsh, B. Irwin

Low-rank coal (LRC) drying processes are generally categorized by operating temperature, drying environment and type of feed (either sized or ground coal). Within these broad categories, drying processes differ according to the type of drying equipment and methods of quenching and stabilizing the dried products. This paper focuses on the produce quality of various LRC drying processes including conventional low and high temperature evaporative drying and non-evaporative, hydrothermal drying. The former may be preferred if the dried product can be utilized immediately, but moisture reabsorption, spontaneous heating and fines production during handling are problems associated with longer term storage, transportation and utilization. Methods for reducing these problems are discussed. Hydrothermal processing is an advanced technology featuring high pressure, non-evaporative drying, which solves stability problems by producing a liquid feel.

Feb 24, 1997

By E. Fernandez

HIGH SPEED RAILWAY NETWORK Spain is a very adequate country to develop the high speed railway network thank to its geographical feature which has a 600km long radius, from Madrid- the capital that covers mostly the whole country. Therefore, the railway is a major competitor of the airline. In Spain, the new access to the north and northwest is nowadays the most important railway project which will allow a significant saving of time in the near future to the central plateau and the northern territories. Time savings as well as strict environmental considerations have been the main objective of various studies during the last decade leading to Guadarrama and Pajares tunnels as ones of the optimum solutions. Cordoba-Malaga high speed railway, the extension of the present Madrid—Sevilleline, through the Abdalajis range and the rail project to cross oriental Pyrenees between Spain and France are another two samples of large tunnels currently underway. In these four projects, the ground already encountered and to be soon encountered is highly variable, from very hard granite and gneiss in Guadarrama and Pertus to very poor argillite in Abdalajis, shale in Pajares and schist in Pertus. A number of faults are also expected. Hence, double shield hard rock TBM has been chosen. Figure 1 shows a general scheme in four projects. These four projects represent a total of 2 × 68 km of which 87 km are under DRAGADOS contracts. PROJECTS UNDERTAKEN BY DRAGADOS Guadarrama Tunnels This project is the longest twin tunnel with 28.377km, in Spain and considered one of the longest in Europe. The operating speed will be 300 km/h. This tunnel will link Madrid and the north territories through Guadarrama range. (Figure 2). The south portal is placed at el. 997.8m above the sea level. The tunnel starts with an inclination of 3‰, increasing until 15‰. After 6,620m length, the tunnel passes under the Morcuera ridge with an overburden of 960m. After 13,400m length, the elevation is 1,024m which is the highest point, and then the tunnel declines with a slope of 9.5‰, 2‰ and 19‰ until the north portal in Segovia province. At the border of Madrid and Segovia that is Penalara peak, the maximum

Jan 1, 2005

By David E. Kaslow

In sampling dust laden air by drawing the medium into an inlet, some larger particles fail to follow the air and a true sample is not obtained. Inertia prevents particles from accelerating with the air as well as from turning sharp bends; also the particles&apos; weight causes them to fall relative to the air. An analytic solution to the sampling efficiency calculation by Levin gives particle paths and sampling efficiencies for various particle sizes when the inlet can be treated as a point sink. However, the flow field in the neighborhood of an aspirating tube is quite different from a point sink flow. Employing Levin&apos;s solution in the outer field, trajectories in actual flow fields have been calculated by computer to locate the critical trajectories separating the entering particles I paths from those paths where the particles hit the tube wall or escape. Sampling efficiencies are presented in terms of 3 variables--a dimensionless particle size coefficient, a dimensionless orifice size coefficient and the tube orientation--for the no-wind case. Over most of the range of sampling conditions, the Stokes drag law can be used and dependence on the variable--particle Reynolds number--can be ignored. A procedure for achieving maximum efficiency in design of a sampler is proposed. Whether these results apply when typical room-sized eddies constitute the ?calm air? environment is not known.

Jan 1, 1974

Despite the recovery of approximately six million ounces of alluvial gold from the West Coast of the South Island, New Zealand during the last 140 years, a great deal of this having been obtained via sluice boxes and riffle tables, there has been little advance in riffle table technology during this period. In this paper contemporary riffle table design and current operational practices are examined. Studies of gold loss to undersize tailings are described. In addition recommendations derived from recent research carried out in North America are contrasted with gold saving strategies adopted by West Coast miners.

Jan 1, 1992

By Bruce Cavender

Historically, the processing function has been regarded as efficiently managed as long as production costs were kept low, recovery was adequate and sufficient plant capacity was avail-able. In this paradigm, processing is viewed as capable of making only a limited contribution to a company?s competitive advantage. However, the processing function can provide a primary vehicle for building critical competitive capabilities. Processing organizations should be encouraged to become so accomplished they generate new opportunities for other functional groups and thereby influence a company?s overall strategy. This requires a deep shift in processing?s role, in its self-image and in the expectations of it held by managers in other functions. Specific plant improvement techniques ? total productive maintenance (TPM), loss control, etc. ? should be viewed primarily as means for building strategically valuable processing capabilities. Different improvement strategies create different kinds of capabilities and present new strategic options. Broadly speaking, a mineral-producing company seeks competitive advantage through two principal activities: the development of new mineral production and reserves and the optimization of existing operations. These lead to increases in ore reserves, production levels and cash flows that are manifested in increased profitability and, hopefully, increases in the price of the firm?s stock. The profitability of a minerals company is a function of the overall profitability of the industry sector in which the company participates and the firm?s competitive position within that sector relative to those of its competitors. Competitive advantage within the industry comes from two sources: the ability to maintain lower prices than competitors for the same product (cost leadership), or from the sale of products with unique properties that justify higher prices (product differentiation; Porter, 1980). Most mineral companies produce fungible commodities that are sold to anonymous customers, and sustainable cost advantage is the only long-run strategy available to these companies to enhance profitability.

Jan 1, 2008