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By Trevor R. Ellis

Minerals appraisers/valuers often find great difficulty in attempting to employ the sales comparison approach to the market value appraisal of development and operating stage mineral properties. An important factor generally overlooked is a comparison of net operating income (NOI) margins on a per-unit-of-production basis between mineral properties, whether these be demonstrated or forecast margins. NOI margins can vary greatly between mines or quarries that are producing similar products. Ultimately, the expected NOI margin determines what a buyer is willing to pay for an income-producing property. Here, common criticisms of the sales comparison approach by mineral appraisers are introduced. These are counterbalanced by raising some issues in the way the inputs for the income approach are usually derived by minerals appraisers and by review of some conspicuous examples of the much-too-common misuse or abuse of the income approach in market value mineral appraisals. Example transaction analyses and sales comparison analyses are used to demonstrate the author?s methodology for adjusting units of resource in his transaction adjustment tables. The examples are used as the basis for a discussion of ways to employ adjustments for operating economics and many other factors, while warning against the potential for double counting. The conclusions include a recommendation that minerals appraisers attempt to apply at least two of the three valuation approaches when appraising the market or fair value of development and operating stage mineral properties, the two being the sales comparison and income approaches.

Jan 1, 2011

Worldwide minerals exploration slipped in 1992 from 1991 levels. Although industrial production figures showed the US economy emerging from recession in early 1992, it was not until February 1993 that the lagging indicator of unemployment dropped to 7%. Most other industrialized countries are still in recession. Preliminary data for 1992 showed industrial production dropping in Japan (5%), Germany (1.4%), the United Kingdom (0.5%) and France (1.4%). The slowdown in industrial production led to reduced mineral demand. This resulted in lean cash flows from mining operations, which squeezed exploration funding. Although mineral prices were steady during most of 1992, some mineral commodity prices began falling in late 1992 and early this year. Exploration 1991-1992 According to Metals Economics Group (MEG), planned 1992 exploration expenditures were down by about 5%. Geographically, the leading exploration target was the United States with 21 % of the expenditures, followed by Australia (19%), Canada (18%), Latin America (15%), South Africa (9%) and the western Pacific (7.5%). The remaining 10% was split between Europe and Africa. There were absolute increases in exploration expenditures in the United States and Latin America. Latin America showed the largest increase. The change in the Mexican mining law allowing foreign ownership of mines should result in the inflow of direct foreign investment in Mexico's mining industry.

Jan 1, 1993

By Gennaro G. Marino

During the preliminary design stages of the Illinois Division of Natural Resources(DNR) building, it was discovered that an old coal mine was present some 70 m (220 ft) beneath the building site. The new DNR building to be constructed is 36 m (120 ft)wide and 134 m (440 ft) long. It has three stories above grade and abasement level. The building is oriented north-south and has east and west ponds next to it (Fig. 1). The building is located on the State Fairgrounds in Springfield, IL. Given the history of surface subsidence of these underground coal mines in the Springfield area, there was concern about the potential for future subsidence at the building site. Mine subsidence events in the area have resulted in more than 0.9 m (3 ft) of settlement and have caused significant structural damage.

Jan 1, 2000

By John E. Tilton

The ability of companies and countries to mine copper and other mineral commodities competitively and in the process to generate new wealth depends on their mineral endowment. Chile, for example, produces and exports copper because it is well endowed with high-quality, low-cost deposits. This production creates wealth that benefits mining companies and their stockholders, the government, local communities, as well as copper consumers around the world. The widespread perception that mineral endowment must largely determine competitiveness, or what economists call comparative advantage, must be true at any particularly moment. Countries with abundant reserves must be competitive. This follows from the definition of reserves — the quantity of a mineral commodity found in discovered deposits that are profitable to exploit under current conditions. As a result, it is a tautology and not particularly interesting. The important question is what causes reserves to change over time, producing in the process new wealth and shifts in competitiveness?

Jan 1, 2003

By S. Ersayin

In 1998, the Concentrator Modeling Center was established within the Coleraine Minerals Research Lab, Coleraine, Minnesota, to develop models for simulation of iron ore processing plants, and to assist plant operators in improving performance of their aging plants. The short-term objective was to develop necessary models for reliable simulation using conventional techniques, while the long-term objective was set as liberation-based modeling and simulation of these plants. The short-term objective was achieved in 2002 after the development of models for magnetic separators, hydro-separators and fine screens. A project funded by the U.S. Department of Energy was carried out to demonstrate the capability in improving iron ore processing at the Minorca plant. As a result of this study, a 10% improvement in throughput at the plant was obtained, and simulation became a desired tool for plant operators. A significant step in the long-term objective was reached in 2005 with the development of a liberation model. This was followed by incorporation of models capable of processing liberation data into the software. By early 2007, the Concentrator Modeling Center had the capability of performing liberation-based simulation of entire plants.

Jan 1, 2009

By R. Hipsley, D. Arbonies, P. J. Dobak, M. Visher

The Storm deposit is a high grade breccia hosted “Carlin-type” gold deposit located at the north end of the Carlin Trend. Storm consists of 3 smaller deposits: 1) 49er Zone, 2) End Zone, 3) Discovery Zone. Structural intersections and favorable stratigraphy at the Paleozoic Popovich/Rodeo Creek formation and Bootstrap limestone formation contact are the primary known controls to gold mineralization at Storm. High grade silica-sulfide breccia occurs in the footwall of the north-south trending, dike filled, Dee fault. This mineralization cross-cuts silicified heterolithic breccia zones localized above the Bootstrap limestone where northwest, dike filled, reverse faults cut this structural-stratigraphic horizon. 40Ar/39Ar dates of 37.57+ 0.34 Ma (basalt dike) and 162 Ma (lamprophyre dike) have been obtained from dikes in the Dee pit which are locally mineralized by the same event as Storm. This paper will focus on the descriptive aspects of the Storm deposits.

Jan 1, 2001

By Eduardo M. Sacris

The performance of the grinding circuit, from the initial stages of operation to the present, is discussed. The mill efficiency as measured by the Bond grindability data and the operating work index is presented. The objective has been to produce a sand cyclone overflow containing not more than 6% +65 mesh. However, this has never been attained even at low milling rates. On the other hand, significant improvements in throughput were achieved by instituting some equipment changes and process modifications within the grinding circuit. The latest approach to solving the coarse grind problem is also discussed.

Jan 1, 1983

The safety of personnel is the most important matter during a mine fire. However, there is not enough research on a case when a fire occurs near a shaft and the behavior of the fire gas is not well understood. Therefore, a series of experimental study using a scaled ventilation circuit model was carried out. The behavior of ventilation air during a mine fire near a shaft was investigated. The model consists of two vertical shafts, three horizontal ducts connecting the shafts and an exhaust fan from the shaft bottom. The cross section of the shaft and duct is a square of 200×200mm. The height of the shafts is 3400mm. The length of the ducts is 1540mm. The lower duct is set at the same level as the shaft bottom. The middle and upper duct are set at 750mm and 1760mm above the shaft bottom respectively. The airflow rates through the ducts can be adjusted by regulators installed in each duct. The behavior of the fire gas was measured by anemometer, thermometer, and visualized using laser light .The air was ventilated downward in both shafts before the initiation of the fire. Some amount of fire gas of high temperature rose upward gradually along the shaft wall regardless of the downward ventilation after the initiation of the fire. Then the direction of main ventilation air suddenly reversed upward in the shaft. The direction of ventilation reversed in many places in the model and the fire gas reached even the part not anticipated.

Jan 1, 2009

By F. G. Crack, R. V. Ramani, R. L. Frantz

Management for mine construction and development differs from that needed for routine mine production and maintenance. An integrated approach to managing mine development projects must consider contract documents; management organization of a project; the project manager's role and the field supervisor's responsibility; and the use of scientific techniques for planning, scheduling, executing, and controlling projects. Professional project management encompasses the following: • Preparing contract documents that establish technical and financial schedules, and detail the responsibility for the physical work commitment. • Developing a project's organizational structure, to clearly define the roles of the project manager and the field supervisors. • Establishing project management and field supervisor relationships, to avoid ambiguity in assigning responsibility and to ensure desired project progress. • Using management science techniques, particularly networking techniques such as the critical path method for planning scheduling, executing, and controlling projects. Project Versus Production Management Project management differs from routine production management in the following ways: • Uniqueness: A project is unique. Production operations tend to be repetitive. The magnitude of one-time capital expenditures for many facets of mine development warrant special skills and attention. These professional project development skills must already be available by prior experience in the management team. • Personnel: In projects, personnel are usually assigned on a specialty basis and frequently change with the project activity. On the other hand, production personnel work together, more or less permanently. • Management Structure: In a project there may be several staff-line relationships that are not clearly defined and change with changing project activities. In a production situation, the lines of communication and authority are usually well defined. • Time Frame: A difference between project and routine production management is that project activities have comparatively less well defined durations and often tend to be relatively short-term. Production usually has both long-term and short-term plans and well defined long-term and shor-term goals. In project management, formal, critical, short-term reviews are frequently required. In production management, five year plans can be formally adjusted quarterly and annually. Short-term weekly or daily reviews can be informal. • Response to Delays: Delays in a development project may occur without anyone being immediately aware of their existence or suspecting the magnitude of consequence. In contrast, any delays in the production process can be easily identified from prior results comparison. Additionally, the response is quick, usually in a set routine. This can be traced back to the management structure and personnel. • Control Techniques: Measurements of project progress for control are not easily made due to the variety of activities that are carried on at the same time by different work groups. The yard-sticks of performance measurement for individual activities, let alone for the total project, are not easily established. However, due to the difficulty in detecting project delays, a workable control system is vitally important to a project manager. To apply a scientific project control technique such as "management by exception" requires specific planning and monitoring from the project manager for each activity in the project. Production and productivity are quick and effective yard-sticks of measuring performance in a routine operation. Control techniques required in production management usually revolve around these measures. Construction Contracts The construction contract is an important document that establishes contract scope, technical and financial details of the work, and achievement deadlines. It may also serve as the contract document to pay for work done and to verify field progress with planned progress. In practice, it is a good idea to develop a job-specific contract. This whole area is replete with legal precedence and procedures, and it is not the intent here to deal with the intricacies of establishing a contract document. But it is necessary to have an understanding of major contract types. Construction contracts are extremely important legal documents. They may vary in work specifications and enforcement of the provisions. Due to their nature, they must be composed with legal help and will take some time to compile. Even with all the precautions and provisions, it is not uncommon to find owner and contractor disagreeing. Therefore, it is important to include a way to resolve any difference quickly and to incorporate aspects of the contract as part of an overall management control tool for efficient project management.

Jan 7, 1982

By Michael Kukay, Paul Conrad, Cosmas Opoku-Ware

This project is exploring the potential for developing trees tolerable to degraded un-reclaimed mine site soils and tailings as a solution to re-establishing long-term tree growth on those sites. The project incorporates growing tree seedlings in an underground greenhouse grown from seeds planted in the degraded mine soils in which they will eventually be planted. The outcome of the project is expected to lead to a successful solution for re-establishing tree growth in soils and tailings containing high metal concentrations with minimal post-planting human intervention. The research is being conducted in an underground greenhouse located 100 ft below the surface in the old Orphan Boy Mine Underground Mine Education Center (UMEC) located on Montana Tech’s campus in Butte, Montana.

By Geoffrey Berry

Exposure?response relationships between the relative risk of lung cancer and quantitative measures of exposure to asbestos are available from a number of epidemiological studies. Meta-analyses of these relationships have been published by Lash et al. (1997) [Lash, T.L., Crouch, E.A.C., Green, L.C., 1997. A meta-analysis of the relation between cumulative exposure to asbestos and relative risk of lung cancer. Occup. Environ. Med. 54, 254?263] and Hodgson and Darnton (2000) [Hodgson, J.T., Darnton, A., 2000. The quantitative risks of mesothelioma and lung cancer in relation to asbestos exposure. Ann. Occup. Hyg. 44, 565?601]. In this paper, the risks derived in these meta-analyses have been compared. Lash et al., concentrated on process and found that the risk of lung cancer increased as the asbestos is refined by processing. Hodgson and Darnton concentrated on fibre type and found that the risk was highest for exposure to amphibole asbestos (crocidolite and amosite), lowest for chrysotile and intermediate for mixed exposure. Some of the differences between the conclusions from the two meta-analyses are a consequence of the choice of studies included. The range of asbestos types included in the studies in the analysis of Hodgson and Darnton was wider than that in Lash et al., enabling differences between fibre types to be analyzed more readily. There are situations where occupational exposure to chrysotile asbestos has shown no detectable increase in risk of lung cancer. Taconite miners have shown no increased risk of mortality due to lung cancer. © 2007 Elsevier Inc. All rights reserved. Keywords: Mesothelioma; Amosite; Grunerite; Taconite; Crocidolite; Tremolite; Anthophyllite; Winchite; Risk assessment; Etiology

Jan 1, 2007

By E. R. Bauer

In response to the mandates in the MINER Act of 2006, NIOSH conducted refuge alternatives research that included characterizing the utility, practicality and survivability of refuge chambers and outby safe havens. NIOSH also prepared and delivered a report to Congress in late December 2007 that summarized the findings of the research, included recommendations concerning the design and performance specifications for refuge alternatives, and focused on specific information that could inform the regulatory process on refuge alternatives. This document highlights NIOSH's research and recommendations concerning refuge alternatives, survivability evaluations of refuge chambers, and presents a brief review of the current deployment of refuge chambers in underground coal mines in the U.S. The research has lead to the conclusion that refuge alternatives have the potential for saving the lives of mine workers if they are part of a comprehensive escape and rescue plan, and if appropriate training is provided. DISCLAIMER: ?The findings and conclusions in this report have not been formally disseminated by the National Institute for Occupational Safety and Health and should not be construed to represent any agency determination or policy.?

Jan 1, 2009

By W. W. Edgerton

Construction projects may be delivered under one contract package or multiple packages divided by discipline, geographic location, or other characteristics. Dividing the construction into contract bid packages is called contract packaging, and is a vital and strategic aspect of effectively delivering tunneling projects. The process of contract packaging considers many factors, including the type of project, location, and owner?s priorities. This paper describes the key facets of the contract packaging process used recently on several tunnel projects, reports, where possible, on the success of the process, and concludes with recommendations for applying this process to achieve the right contract package.

Jan 1, 2008

By John E. Newby

The Brightwater Conveyance System consists of four tunnel segments in three tunnel con-tracts, comprising over 21,760 m (71,400 ft) of pressurized face tunneling in complex glacial and non-glacial soft ground conditions with a large proportion 60 m (197 ft) or more below the ground surface with up to 7 bars groundwater head. This resulted in unique technical challenges for establishing geotechnical baseline values. The process used to develop these baseline values and specifications with regard to the level of risk that the owner, King County, was willing to accept is described in this paper.

Jan 1, 2008

This international symposium was convened to assess the current state of knowledge concerning the health hazards that might be associated with the ingestion and inhalation of fibrous particles produced from the processing of taconite ore. Concern about fibrous particles in taconite arose from their similarities to amphibole asbestos minerals that are known to be human carcinogens. The mineralogical characteristics of asbestos fibers are reviewed and compared with the fibrous particles known to be present in taconite ore from the eastern end of the Iron Range. The epidemiological and experimental animal studies for asbestos-related disease (including gastrointestinal cancer from asbestos in dinking water)were critically evaluated andcompared to those of the fibrous minerals in the taconite. The focus was on the amphiboles in the cummingtonite?grunerite and tremolite?ferroactinolite series and other fibrous particles in both the Iron Range and the Duluth Complex. This included examination of the reported occurrence of any asbestiform ferroactinolite, crocidolite asbestos, chrysotile asbestos, etc. In addition, an effort was made to provide a scientific framework to address fibrous minerals, which may be associated with nonferrous mineral deposits in the Duluth Complex. State-of-the-art risk assessment models for asbestos were presented. Risk assessment scenarios were developed for taconite-derived fibers at environmental exposure levels related to the operation of the Silver Bay taconite processing facility. These calculated risks were found to be trivial even after it was assumed that all mineral fibers were as carcinogenic as amphibole asbestos.

Jan 1, 2008

By Kira Mizell, James R. Hein, Tracy Conrad

"The Ninetyeast Ridge (NER) extends roughly N-S as a topographic feature for 5000 km, from 31° south to 10° north (Fig. 1) where it becomes buried beneath the Bengal Fan at its northern end. These two geographic characteristics make the NER an ideal natural laboratory for determining the influence of latitude and terrestrial input to ferromanganese (Fe-Mn) crust formation and composition. In addition to study of geographic controls on crust composition, the NER is the largest feature in the Indian Ocean that may host crusts of economic interest.Crusts were collected from 9 of 33 dredge sites from 1.4° north to 26° south latitudes during the 2007 R.V. Roger Revelle Knox06 cruise. Nineteen samples were analyzed for 69 elements each. Nine bulk crusts and 10 layers from four crusts were analyzed. Three of the crusts sub-sampled for layers did not have the bulk crust analyzed and the weighted means for those layers were calculated to obtain bulk compositions. One sample was left out of the statistical analyses because it is phosphatized and chemically quite different from the other samples (Table 1).In order to determine changes in composition with latitude, Pearson product-moment correlation coefficients were calculated for the chemical dataset and latitude of dredge sites, as well as water depth. At the 95-99% confidence level, the following elements increase in crusts moving north along the NER: Mg, Ti, S, Cd, Ni, Tl, Mn, Ba, Co, Cu, In, Li, and Zn; and the following elements decrease northward: Fe, Fe/Mn, P, As, Sc, the rare earth elements plus yttrium (REY), Bi, Ge, and Pb. These correlations indicate that the iron oxyhydroxide component and its associated elements are more prevalent to the south, and the manganese-oxide phase and associated elements increase toward the north end of the NER. This change occurs between dredges D20 and D14 (Fig. 1), with crusts from D20 and south having Fe/Mn !1.0 and those north of D20 ""1.2, with the exception of the phosphatized crust. Crust composition also changes with water depth: Th, Ge, Pb, and the middle rare earth elements (REEs) increase with increasing water depth. Thorium commonly increases in deeper water crusts, which explains the higher Th concentrations in Atlantic and Indian ocean crusts in general compared with Pacific crusts (Fig. 2 and Hein et al., 2012), including the samples analyzed here with a mean water depth of 3584 m. However, water depth does not explain the latitudinal changes because the mean water depths of samples along the northern and southern segments of the NER are roughly comparable. Surprisingly, Si and Al, representing the aluminosilicate/detrital phase, do not correlate with latitude; that is as the ridge approaches and is buried by the Bengal Fan the Si and Al contents do not increase. However, overall, Si and Al have higher concentrations in NER crusts than in central Pacific crusts. Ba can be used as a proxy for primary productivity and statistically does increase to the north along the ridge in the direction of the equatorial zone of high biological productivity. Correlations of Mg, Li, and Zn with latitude may also reflect increased primary productivity at lower latitudes."

Sep 1, 2014

By D. Blackwell, W. R. Reed, G. Ross, S. Peters, M. Shahan

Dust collectors for roof bolting machines generally use a dry box to collect the roof bolting material. Recently, an underground mining operation converted a dry box dust collector to a wet box dust collector with a unique exception from MSHA for testing purposes.Water is routed to the roof bolter fromthe main water line of the continuous miner. The wet box utilizes a water spray to wet the incoming material. Testing was conducted comparing the two different collector types. Respirable dust concentrations surrounding the roof bolter with the different collection boxes were similar. The main difference in respirable dust concentrations occurred when cleaning the dust boxes. The average respirable dust concentration during cleaning of the wet box was 0.475 mg/ m3, and during the cleaning of the dry box, the average respirable dust concentration was 1.188 mg/m3, a 60% reduction in respirable dust concentration. The quartz content of the roofmaterialwas high, ranging from 28.9 to 52.7%during this study. The results from this study indicate that using the wet box as a collector reduced exposure to respirable dust up to 60% when cleaning the collector boxes.

Aug 26, 2020

The central question concerning the health risks associated with mining and processing of taconite ores in the Eastern Mesabi Range is ??does asbestos, of any variety, occur within the gangue mineral population?? Free silica in the form of quartz does exist in the taconite, but silicosis has been relegated to a secondary issue. The focus has shifted to the asbestos minerals and the malignancies that might occur following low-level exposure to dust. Although mineral fibers do exist in the Mesabi taconite ores, Ross, Nolan and Nord conclude ??no asbestos?, as explained in their contribution ??The Search for Asbestos within the Peter Mitchell Taconite Iron Ore Mine, near Babbitt, Minnesota?. Their area of study is located in the eastern Mesabi Range. It is here that the tectonic and metamorphic effects associated with the intrusion of the Duluth Gabbro have been profound. A variety of amphibole minerals have developed as a result of these geological events, some with names recognized within the US Asbestos Standard. The issue tackled by the authors is whether or not these amphiboles are present in the mine and if so whether or not they are asbestiform in habit.

Jan 1, 2008

By Graham W. Gibbs

The current state of knowledge concerning mesothelioma risk estimates is reviewed. Estimates of the risk of mesothelioma exist for the commercial asbestos fiber types chrysotile, amosite and crocidolite. Data also exist on which to assess risks for winchite (sodic tremolite) and anthophyllite asbestos. Uncertainty in estimates is primarily related to limitations in measurements of exposure. Differences in the dimensions of the various fiber types and of the same fiber types at different stages of processing add a further complication. Nevertheless, in practical terms, crocidolite presents the highest asbestos related mesothelioma risk. The risk associated with sodic tremolite (winchite) appears to be similar. In chrysotile miners and millers, the mesothelioma risk has been linked with exposure to asbestiform tremolite. Exposure to chrysotile in a pure form seems likely to present a very low if any risk of mesothelioma. While the majority of mesothelial tumors result from exposure to the asbestos minerals, there are other well established and suspected etiological agents. While a practical threshold seems to exist for exposure to chrysotile, it is unlikely to exist for the amphibole asbestos minerals, especially for crocidolite. To date there is no indication of an increased risk of mesothelioma resulting from non-commercial fiber exposure in the taconite industry. © 2007 Elsevier Inc. All rights reserved. Keywords: Mesothelioma; Amosite; Grunerite; Taconite; Crocidolite; Tremolite; Anthophyllite; Winchite; Risk estimation; Etiology

Jan 1, 2007

By J. M. Manka

American mining companies operate many drum hoists that hoist from various depths with varying payloads. This paper will review the procedure of selecting optimum wire rope constructions for these existing hoisting installations. Selection for proposed installations along with recommended hoisting parameters will also be presented. To achieve this optimum rope performance, preventative and corrective maintenance procedures will be reviewed along with examples of rope problems and their causes.

Jan 1, 1992