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By Derek du Preez, Andrew Hall, Timothy M. Pelech

Net Present Value (NPV) derived from Discounted Cash Flow (DCF) analysis remains the dominant metric for evaluating mining projects despite its well-documented inability to capture managerial flexibility under uncertainty. DCF assumes that all risks are perfectly priced by financial markets. This is an unlikely assumption for volatile commodity prices, geological variability, or the array of mining technical and operational risks present on all mine sites. Real Options Analysis (ROA) was developed to remedy this limitation by explicitly valuing the ability of managers to defer, expand, scale, switch, or abandon investments as new information emerges, and to capture upside and mitigate downside risks. While ROA is philosophically correct and routinely shows an uplift in project value compared with DCF, its practical application at industrial scale is severely constrained, ROA faces the reality of a combinatorial explosion in complexity of decision trees, Monte Carlo simulations and other models required when multiple interdependent or sequential options exist across numerous mining zones and time periods. The AMC Hill of Value® (HoV) process adopts the same intellectual foundation as ROA, that flexibility has economic value, but operationalizes it through a far more robust and scalable architecture. It is built on parametric relationships, rapid scheduling, and multi-objective evolutionary optimisation. HoV can evaluate millions of compound, interdependent real options in a single optimisation run, delivering resilient, adaptive strategies that preserve managerial flexibility while simultaneously optimising NPV, mine life, risk exposure, and other corporate objectives. This paper demonstrates that HoV is the practical, industrial-scale embodiment of real options thinking in mining: it discovers, ranks, and translates the most valuable real options into strategic mine plans, overcoming the scalability barriers that have prevented widespread adoption of classical ROA.

Feb 22, 2026

By David De Lemos Pires

Mining is essentially a materials management process where materials are classified, excavated, moved to a desired location, processed at a cost and sold for a price hopefully to generate a profit. ?How much is that cost and can it be reduced?? is the age-old question. The requirement for a paradigm shift with regard to materials movement in search of low-cost production has not just happened by chance but, rather, has been driven by agents of change that include mining companies, consultants, governments and equipment suppliers. During the past 100 years of mining, surface mining technology has involved humans with hand tools, humans with machinery and unmanned automated equipment. In the past 50 years, surface mining technology has evolved and now takes the form of trucks and loaders (TL), in-pit-crushing conveying (IPCC) and autonomous haulage equipment (AHS).

Dec 1, 2013

By T. P. Meloy

A methodology is presented for finding feasible or locally optimal designs in the class of homogeneous, countercurrent, processing networks performing two-component non-sharp separations. The advantage of the methodology developed here is that given a set of independent performance criteria (specifications such as network separation factor, beneficiation ratio or recovery), a feasible or locally optimal countercurrent network design meeting those criteria can be found in one step. In the methodology, graph-theory was used to explicitly obtain the exact network responses of specific countercurrent networks. These responses were used to formulate the linear recursion equations whose solution gives the expressions for the countercurrent network responses which are a function of the stage transfer functions for two-component, non-sharp separations. These expressions are also functions of the network variables n and c. These expressions, together with the set of independent design criteria, were solved simultaneously for n and c using the Levenberg-Marquardt algorithm for systems of constrained, non-linear equations. The network variables n and c embody the coded network design information which is used to find the feasible network design which satisfies the set of independent performance criteria.

Jan 1, 1994

By W. W. Wen

Approximately 3 percent of the raw coal processed in U. S. Steel coal-preparation plants ultimately reports to slurry- tailing disposal. The usual disposal method is to pump the refuse slurry containing the minus-48 mesh (300 µm) refuse into dams or impoundments that are constructed of the coarse refuse. The failure of an impoundment at Buffalo Creek, Saunders, West Virginia and the sliding failure of a coarse refuse pile at Aberfan, Wales, England, resulted in an evaluation of refuse disposal methods by various regulatory agencies as well as coal producers. The result of this evaluation was the promulgation of Federal regulations dealing with the construction, operation, and final abandonment of coal refuse disposal areas. As a consequence of these regulations the use of the landfill/impoundment method of disposal became in some cases economically urlfeasible or technically impossible. U, S. Steel has studied a number of alternative methods of refuse disposal. During an investigation of mechanical dewatering with a pressure filter, Portland cement was added to the slurry to solidify the filter cake. Because of the success of the cement addition it was decided to study the stabilization of fine-coal-refuse slurry through use of cement-type additives.

Jan 1, 1979

By S. N. Gurulaxmi, Veerendra Singh

The abstract discusses the increasing consumption of manganese ores and the need to utilize low-grade ores and rejects. The study focuses on developing a low-cost process using a cupola furnace to recover manganese values from these resources. The process involves smelting ore blends to produce high MnO slag and pig iron. The study investigates various factors to improve iron reduction and separation from MnO-bearing slag. The results show that the process can produce slag with MnO > 35% and Fe(t) < 5% using low-grade Mn ores. The process also achieves Fe reduction between 50 and 70%. The cupola furnace offers advantages like low cost and ease of operation, making it suitable for processing low-grade ores and rejects to produce synthetic MnO-enriched products for various industries.

Apr 1, 2022

By Brendan Demich, Brendan Macdonald, Timothy J. Orr, Jonathan K. Hrica, CASSANDRA L. HOEBBEL, Jason Navoyski, Jennica L. Bellanca

Haul truck fatal accidents and injuries continue to be a significant concern for the mining industry. However, the availability of high-quality training materials continues to be limited. Near-miss incident accounts, if packaged well, could help fill this gap, because for every fatality, there are hundreds of reportable accidents and thousands of undocumented near misses. Researchers from the National Institute for Occupational Safety and Health (NIOSH) collected detailed accounts of 21 near-miss incidents in virtual interviews with mineworkers at surface mining operations across the country. From these interviews, researchers created four simulation videos using the Unity game engine. The simulation videos bring these events to life through first-person retelling and various visual perspectives of actual events. Each video exemplifies a critical safety message and a common haul truck hazard. This paper describes the process of taking narratives and turning them into impactful visual stories using graphic simulation. NIOSH plans to co-release these simulation videos with the Mine Safety and Health Administration (MSHA) to the mining industry to raise awareness and ultimately help reduce haul truck-related accidents and fatalities in mining.

Jun 1, 2023

By Donald O. Rausch, William E. Hawkes, Odin Jr. Strandberg

INTRODUCTION Kennecott Copper Corp.&apos;s Tintic Div. Burgin mine is a 725 t/d (800 stpd) lead-zinc producer, located in the east Tintic mining district, 5.6 km (3.5 miles) east of Eureka, and 130 km (80 miles) south of Salt Lake City, UT. The Burgin mining complex includes three shafts, shop, dry, and office facilities, and a 454 t/d (500 stpd) flotation concentrator. Production and ser¬vice entry to the mine is through a 4.26-m (14-ft) diam concrete-lined production shaft, and a three-compart¬ment rectangular shaft. A connection with the Apex No. 2 shaft and the Burgin mine provides a second exhaust airway. Bear Creek Mining Co., Kennecott&apos;s exploration sub¬sidiary, began exploration of the Burgin mine area in 1957 with the sinking of the 335 m (1100 ft) deep No. 1 shaft. A station was cut at the 320-m (1050-ft) level of the shaft and extensive drifting, diamond drilling, and some winzing and raising confirmed the presence of a major lead-zinc ore body, the main portion of which oc¬curred below a hot saline water table. Surface facilities and the 4.26-m (14-ft) diam concrete-lined production shaft were completed in 1966. Ore production has been steadily increased to 725 t/ d (800 stpd) since 1966. The collar elevation of the No. 2 production shaft is 1731 m (5678 ft) above sea level. The mine&apos;s three levels, the 1050, 1200, and 1300 are at elevations of 1414.6, 1356.4, and 1338.1 m (4587, 4450, and 4390 ft), respectively. The approximate elevation of the hot saline water table is 1382.6 m (4536 ft). The earliest production on the east Tintic mining district was from the Eureka Lilly mine in 1909. Later, in 1916, the Tintic Standard mine was discovered, and pro¬duced ores with a gross value of $80,000,000 through 1956. The Eureka Standard mine located 1.6 km (1 mile) southwest of the Burgin mine produced ore worth $12,000,000 from fissures in the Tintic quartzite along the Eureka Standard fault. Ores produced from the east Tintic mining district through 1971 are valued at $151.3 million. The production from the entire Tintic district is approximately $500 million. GEOLOGY The Burgin ore deposit occurs as replacement bodies in limestone, dolomite, and shale. Numerous fault struc¬tures and rock formations make the mine geology com¬plex. The mineralization is strongly associated with sev¬eral major geological features, which include the Ophir formation, consisting of limestone, dolomite, and shale as the favorable host rock, and the structural influence of the east Tintic thrust, the Eureka Standard and sev¬eral other significant faults. Fig. 1 depicts the Burgin 1300 level workings, a generalized configuration of the ore body, and the main geological features. Covering the quartzite, limestone, dolomite, and shale facies enclosing the Burgin ore deposit are 183 to 274 m (600 to 900 ft) of andesite. The Burgin ore consists of massive sulfide and oxide lead-zinc ores with significant silver and cadmium val¬ues. The main ore minerals are galena, cerrusite, and spalerite. Extensive manganese oxide deposits are associated with the lead-zinc ore occurrence. A limited

Jan 1, 1982

By Ronald Ludchak

Since coal has been designated as the short-term answer to the threatening world energy crisis, improved surface mining techniques, along with improved extraction and handling equipment, are needed to increase the amounts that can economically be mined by open pit methods. A dwindling supply of low cost oil and gas have dictated a major rethinking of our energy sources and their use. New methods for open pit coal mining have to be found to increase coal production and to meet more stringent reclamation laws. Modern twin-engine elevating scrapers can play a vital role in meeting these needs. They are readily available, with short delivery times, from several experienced manufacturers of earthmoving equipment. Recent developments of the elevator system have extended its working range to include many of the materials commonly encountered in open pit mining. The paper deals with the advantages of using twin-engine elevating scrapers in the performance of various mining tasks. These tasks range from utility work to the major task of using the scrapers as a primary stripping toot and, of even more importance, a stripping- reclamation tool for, with scrapers, the overburden can be moved and redeposited in the same strata sequence or soil horizon as in its natural state. A recap of current applications of the elevating scraper will be presented, along with proposed uses.

Jan 1, 1975

By Cary Hirner, Sarah Lothman, Chris Mueller, Savita Schlesinger, Mike Hanna, Ian Fitz-James

Loudoun Water is currently implementing a quarry to reservoir conversion that will improve water supply reliability in periods of drought and flexibility in water supply operations when turbidity in its Potomac River supplies are high. The Milestone Reservoir Project consists of an inter-tie to the existing Potomac River Pipeline; new pipeline and tunnel; and a pumped intake and outlet works. Planned construction involves significant risks due to underground conditions which includes hard, igneous rock and high groundwater at the creek crossing. In addition, the site is constrained by Goose Creek, an adjacent residence, active mining in a quarry next to the new reservoir, public use of adjacent park space, and the Washington and Old Dominion Trail. Working with these constraints will require close coordination with active mining operations and public and private property owners. Safety of personnel involved with construction also represents a concern with quarry high walls over 30 meters in height near the planned construction. In consideration of key projects risks, Loudoun Water determined that an innovative CMAR delivery approach provided the best opportunity to achieve its goals in quality, innovation, front-end cost and schedule certainty, and operational flexibility and reliability. What matters most to Loudoun Water is the value in having a builder participate in the design process where key decisions can be made based on consideration of risks, cost, schedule, quality, and operability and maintainability of the system. While a progressive design-build delivery model may have produced similar outcomes, Loudoun Water had already invested in substantial development of the design for the work, and ultimately, CMAR provided Loudoun Water the opportunity to retain the partnership with the design team while gaining valuable input from a contractor. Among the challenges with CMAR in the Commonwealth of Virginia is a substantial limitation on self-performance corresponding to 10 percent of the construction value of the work. A significant industry outreach program was initiated by Loudoun Water to encourage participation with incentives in contract terms that allowed for the CMAR Contractor to make a reasonable profit. This paper reviews the CMAR procurement process and discusses contract incentives that were adopted to promote the work within the constraints of contract law in Virginia.

Jun 13, 2021

By L. Kulik

Sustainability of lignite mining in the Rhenish lignite mining area is ensured by a preceding study of the overall project, with the involvement of all those affected. The supporting holistic consideration of the various sustainability elements is essential for a later balancing of the several ecological, economic and social concerns. In what follows, a brief overview of the Rhenish lignite mining area is given as introduction to the focus of this report, which is on sustainability, starting with the approval procedure under regional planning law incl. opencast mine planning, and extending to concrete on-the-spot implementation, taking the Garzweiler II follow-up mine as example. To illustrate the issues involved, an account is given of some selected sustainability elements.

Jan 1, 2005

By Shenghua Yin, Xun Chen, Rongfu Yan, Zepeng Yan, Wei Chen

The application of cemented paste backfill (CPB) with alkali-activated slag and phosphogypsum (ASP) can contribute to the sustainable development of the mining industry. The effects of PG content, NaOH content, solid content, and waste rock-rod milling sand (W/R) ratio on workability, unconfined compressive strength (UCS), and setting time of ASP-CPB were investigated in this paper. The results showed that the workability of ASP-CPB decreased with PG content and NaOH content. Compared to OPC-CPB, ASP-CPB exhibited better workability and higher long-term (7 days and 28 days) strength at predetermined backfill formulations and curing times. The mid-term strength of ASP-CPB first increased and then decreased with PG content, while the short-term strength (3 days) decreased gradually due to the influence of soluble acidic impurities. Excessive NaOH will harm the strength of ASP-CPB, possibly due to the swelling effect of the reaction products (ettringite and sulfate). Strength and setting time increased and decreased with solid contents, respectively. Moreover, the compactness of the mixture has an important effect on strength and workability. The workability and strength of ASP-CPB reached the minimum and maximum values at a W/R ratio of 5:5, respectively. Pollutant index detection indicated that most of the pollutants in ASP-CPB leachate met the discharge standard, which proved that ASP-CPB is an effective method to recover PG. The results of the research will provide theoretical guidance for the efficient recovery of PG resources and support the achievement of safe, clean, and efficient mining.

Nov 17, 2023

By Adabala Raja Venkata Sai Naresh, Radhakanta Koner

Particle size distribution (PSD) is an essential parameter in assessing the overall efficiency of blasting operations in mines and the subsequent mine-to-mill process in the mining industry. Despite some drawbacks of 2D image analysis techniques in accurately estimating particle sizes in PSD, the mining industry has relied on them for the last three decades. This study proposes the 3D rock fragmentation measurement (3DFM) technique for deducting the accurate dimensions of 3D rock particles for the PSD. 3DFM has utilized different processing algorithms. Images of different views of the non-touching rock particles of varying sizes have been acquired as a data acquisition step of structure from motion technology for generating sparse point cloud. Dense point cloud reconstruction is used to avail finer details of the point cloud using clustering views for the multi-view stereo algorithm. Random sample consensus (RANSAC) algorithm coupled with an unsupervised classification using the density-based spatial clustering of applications with noise (DBSCAN) classifier is employed to extract the rock clusters from the 3D point cloud. Finally, the accurate rock sizes are derived using the hybrid bounding box rotation identification (HYBBRID) algorithm with a root mean square error (RMSE) of 0.10 cm for length, 0.10 cm for breadth, and 0.32 cm for depth. The PSD of rock fragments obtained from the proposed 3DFM technique is found to be matching with the results of mechanical sieving and manual gauging with an R2 values of 0.98 and 0.99, respectively. The 3DFM method can be considered cheaper, more accurate, and computationally faster in determining the rock dimensions for the PSD determination method to enhance the productivity of the mining industry.

Dec 29, 2023

By Arthur Miller

Most of the production of copper in the United States comes from a few large companies. Often overlooked, however, are the more numerous small mining operations, which collectively produce a significant portion of the nation&apos;s copper. The objective of this paper is to describe the operations of a small mining company - Ranchers Exploration and Development Corporation - how it views its place in this industry of giants, how it exploits the advantages offered by its relatively small size, and how it protects itself from the hazards being small introduces. Environment is, of course, a critical factor for such a company because it does not have the resources which help large companies weather periods of financial stress. Ideally, this environment is characterized by a heal thy economy, strong product demand, relatively stable prices , adequate grades and tonnages of ore commensurate with depth and over-burden, ready access to utilities, a dependable labor pool, and suitable technical "know how". When the environment is right, properties which were previously uneconomical to operate attract the attention of companies whose primary interest is a return on investment commensurate with risk over a reasonable period of time. Naturally, the amount of the investment and the duration of operation determines the size of the company which would be interested in such a venture. Such is the case with Ranchers Bluebird Mine at Miami, Arizona - a small property operated by a small company in a favorable economic environment.

Jan 1, 1967

By D. J. M. Grodzian

Polymorphic transformations taking place in grinding processes, of massicot to litharge in PbO system, and of y to a in Fe203 system, were re-investigated. Grinding was carried-on in a steeel rotation mill charged with WC balls, under inert atmosphere. The kinetics of transformation in PbO was established by means of quantitative X-ray diffraction analysis. The resulting data fit a modified logistic growth function up to about 75% of transformed volume fraction, when a mixture at steady-state equilibrium is formed. The reasoning for the use of a modified logistic function is discussed. A sigmoidal growth function can be used if resulting data fit also an empirical power relationship between transformed volume fraction and time. However, it lacks the significance expressed by a modified logistic function. Assuming, the loss in magnetism is directly related to the amount of transformation in Fe 203, a quantitative analysis was performed using a magnetic balance method. The results fit only the modified logistic growth function, and transformation proceeds almost to completion. A wide literature survey of the subject is given. Available data from literature is compared with the results of the present study, and is shown also to fit a modified logistic grown function, with surprisingly similar slpes in a linear plot, independently of the material. The instrumentation effect on kinetics parameters, and the establishment of equilibrium mixture values, are discussed.

Jan 1, 1975

By J. Hart, P. W. Conrad, S. Rosenthal, R. A. Hogan

The Mining Engineering Department at Montana Technological University (Montana Tech) has a new Mine Safety and Health Administration (MSHA) approved program for Part 46 and Part 48 mine health and safety training. The training program will utilize the facilities and faculty from Montana Tech’s Mining Engineering and Safety, Health, and Industrial Hygiene departments to provide superior mine health and safety training to the mining industry. The faculty of each department includes professionals with experience in safety training and the mining industry. The training program incorporates adult learning techniques and extensive hands-on activities in all training modules. The instruction will exceed MSHA requirements. The resources available on Montana Tech’s campus will be utilized to strengthen the training program providing the mining industry with a world class mine health and safety training program.

Feb 1, 2023

By G. P. Salas

I.- In order to keep pace feeding its fast growing population, Mexico with only about 20% of its surface suitable for intensive agriculture, will need the application of modern foodgrowing techniques. To assure greater crop yields it will be necessary to apply more fertilizers than used at present (yearly average of 29 Kgs/hectare)** For its fertilizers production Mexico still depends mostly on imports of phosphate concentrates from Florida, U.S.A., Morocco and Spain. To reduce or eliminate this dependence on foreign providers, the Consejo de Recursos Minerales -a Federal Government exploration Institute- started in 1974 an exhaustive exploration program for phosphate deposits more amenable to commercial exploitation than the phosphatic limestones contained within the La Caja Formation of Upper Jurassic, found along the Sierra Madre Oriental. After studying literature on the origin and deposition of marine phosphate and visits to deposits in Florida, U.S.A., the Baja California peninsula was selected as most favorable for starting this program because of its geologic and sedimentary history and also for its geographic location, where the cold California and warm Counterequatorial currents meet. Exploration activities executed by FORNOS, S. A. (1956) led to the disco very of low grade phosphate (3 to 5% P2O5) in the recent beach sands along the Bahia de Magdalena (Fig. # 1). In his doctoral thesis Bruno D&apos;Anglejan Chatillon (1965) reports the presence of nodular phosphate on the continental shelf, between Isla Margarita and the Vizcaino peninsula. He estimated reserves of up to 1.5 million tons. A Mexican-American marine exploration company attempted in 1966 the evaluation of this deposit with negative results.

Jan 1, 1978

By Martin H. Stanczyk

The Organic Act of 1910 established the Bureau of Mines and gave it authority and responsibility for conducting research on separation, recovery, and recycling of waste products and scrap generated by the mineral and metals industries and the consuming public.(1)1 It was apparent to our Nation&apos;s leaders even then that mineral resources, once mined, are irreplaceable and that the development of methods for recycling the values contained in wastes would be required to solve the problem of even¬tual scarcity, Estimates of the increase in per capita consumption of mineral resources in this country indicate that the consumption of metals, minerals, and fossil fuels by 1980 will be double that consumed in 1970 (2). The United States can expect to meet its future mineral needs in three basic ways: the first is through increased production of primary raw minerals; second by increasing imports from foreign sources; and third by recycling secondary materials and metals that were formerly discarded as waste. Rather than consider these

Jan 1, 1972

By J. K. Hrica, T. J. Orr, J. Navoyski, B. Macdonald, C. L. Hoebbel, J. L. Bellanca, B. Demich

Haul truck fatal accidents and injuries continue to be a significant concern for the mining industry. However, the availability of high-quality training materials continues to be limited. Near-miss incident accounts, if packaged well, could help fill this gap, because for every fatality, there are hundreds of reportable accidents and thousands of undocumented near misses. Researchers from the National Institute for Occupational Safety and Health (NIOSH) collected detailed accounts of 21 near-miss incidents in virtual interviews with mineworkers at surface mining operations across the country. From these interviews, researchers created four simulation videos. The videos bring these events to life through first-person retelling and various visual perspectives of actual events. Each video exemplifies a critical safety message and a common haul truck hazard. This paper describes the process of taking narratives and turning them into impactful visual stories. NIOSH plans to co-release these simulation videos with the Mine Safety and Health Administration (MSHA) to the mining industry to raise awareness and ultimately help reduce haul truck-related accidents and fatalities in mining.

Feb 1, 2023

By W. H. Pomroy

Spontaneous combustion fires in deep metal mines, through relatively infrequent, are nonetheless cause for considerable concern because they pose a direct threat to the safety of miners and are quite disruptive to mine operations. They often occur in remote, inactive, or abandoned sectors of a mine where access for firefighting is difficult or impossible. Over half of all noncoal mine fires that last more than 24 hours are caused by spontaneous combustion. The most common means of fire control for spontaneous combustion fires is sealing and/or Flooding the affected zone. This process is never easy, but it is made especially difficult (and hazardous) if the fire grows in size and intensity to the point where underground fire- fighting crews must wear self-contained breathing apparatus owing to mine air contamination. The Bureau of Mines has developed and in-mine tested a mineworthy fire detection system capable of sensing the earliest traces of spontaneous combustion, thus enabling mine personnel to initiate fire control operations before hazardous atmospheres are created. This paper discusses system design within the context of the harsh mine environment, and describes laboratory and in-mine performance tests of prototype equipment.

Jan 1, 1985

By Howard N. Egan

The importance of coal as the major energy source has led to wider interest in the recovery of waste coal fines as a usable product. An additional incentive for fine coal recovery has been the increased emphasis on environ- mental pollution control and conservation of the nation&apos;s natural resources, Accordingly, a series of studies and tests were performed to investigate the feasibility of the recovery, concentration, balling and pelletizing of coal fines as a marketable adjunct to existing mining and beneficiation operations. These studies were conducted at the existing operations of the Eastern Coal Corporation at Stone, Kentucky, and the Metallurgical Laboratory of Arthur G. McKee & Company in Cleveland, Ohio. The purpose of the investigations was to recover the fines from the effluent waste waters of an existing preparation plant and transform them into a high carbon, low sulfur and ash product capable of being handled with a minimum of degradation and dusting problems. The fines were relatively high in ash content prior to processing, and flotation pretreatment served a combined function of beneficiation, recovery and water clarification, The minus 28 mesh coal concentrate containing 40 to 45 percent minus 325 mesh size material had an ash content varying between 5 and 7 percent and a sulfur content of less than 0.5 percent. Chemical and size analyses of the effluent and concentrated fines are presented in Table I for comparison.

Jan 1, 1967