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By S. Yannacopoulos, L. Bichler, P. Wanjara, J. Gholipour

Characterization of a virgin and in-service Inconel 718 alloy was undertaken to study the changes caused by the service conditions on the grain size, ?? phase, MN-type nitrides and MC-type carbides. The size, distribution and volume fraction of these phases and grain size were studied using scanning electron microscopy (SEM), energy dispersive spectroscopy (EDS) and electron backscattered diffraction (EBSD) analyses. A considerable difference in the grain size, as well as distribution and volume fraction of the precipitates was observed in the in-service material as compared to the virgin Inconel 718. As a result of these microstructural changes, a notable dissimilarity in hardness between the materials investigated was observed. The results presented in this study are important for proper development of repair parameters and heat treatment of in-service Inconel 718 material.

Jan 1, 2014

By C. J. Rockingham

"A comparative study of sulphide textures has been carried out on samples from four Archean copper-zinc massive base metal sulphide deposits: Kidd Creek, Ontario; Lake Dufault -Norbec, Quebec; Hood River-41, N. W. T.; and Geco, Ontario. These deposits have undergone metamorphic recrystallization under a range of conditions, and results of this study indicate that certain sulphide textures may be used as qualitative indicators of metamorphic grade, whereas other cannot.The sulphide textures of most value in this regard are sulphide grain sizes, which increase with increasing metamorphic grade, and the presence or absence of sedimentary/diagenetic textures, which are destroyed at the lower amphibolite facies of metamorphism. Chalcopyrite and pyrrhotite intergrowths in sphalerite increase in size, in degree of coalescence and in the ratio of unmixed pyrrhotite to chalcopyrite inclusions with increasing metamorphic rank. With increased metamorphic grade, the pyrrhotite intergrowths change from rounded inclusions on grain boundaries to rod-like shapes along sphalerite twin planes. There is also a general increase in the relative proportion of pyrrhotite in the deposits. Textures that appear to have little value as indicators of metamorphic grade are sulphide deformation textures, and triple junction point angles and their standard deviations, which show little variation from the lower greenschist to the upper amphibolite facies of metamorphism. The presence or absence of myrmekite-like magnetite also has little value in determining the relative metamorphic history of these deposits, as it is a product of local contact metamorphism."

Jan 1, 1980

By Nick Vagenas

"Loading and transportation are important activities of the mining process. Automation of these activities in underground hard rock mining has been discussed for a long time. This paper deals with the performance evaluation of a prototype automatic Load-Haul-Dump (LHD) vehicle (a 7-ton GHH LF LHD model) operating in Zinkgruvan mine, Sweden. The purpose of the data analysis is to evaluate the operational and maintenance characteristics of the automatic LHD system in the mine. Graphical and numerical methods have been used for the statistical analysis of the data. IntroductionDuring the past years, the idea of integrated automation and tele-operation on Load-Haul-Dump (LHD) machines (Fig. 1) has attracted considerable interest in the Swedish mining industry. This is mainly due to the demand for improvement in the working environment and due to the rapid development of economic and reliable microprocessors for mining vehicles. Several advantages can be foreseen with the application of a Remote-controlled/Automatic LHD (RAL) system in underground mining. Some of them are (1)':• better utilization of working hours;• less interruption in production at shift changes;• better operational control of a fleet of vehicles;• improved safety; and• one operator may be able to operate more than one vehicle simultaneously."

Jan 1, 1993

By C. R. Kerr

"This paper describes the revisions to the heating and ventilating system at the Frood-Stobie mill, which resulted in substantial savings in energy costs.IntroductionInco Metals Company, a unit of Inco Limited, is involved in the mining and processing of nickel-copper ores. The Ontario Division of Inco Metals consists of 10 operating mines, with 5 mines and open pits on a standby basis, and 10 pro- cessing facilities, located in Sudbury, Port Colborne and Shebandowan. In 1980, the Ontario Division's energy expenditures amounted to $87,000,000.Due to the accelerating cost of energy, the Division established an Energy Management Program in 1975 to define, evaluate and implement measures to reduce energy cost and consumption per unit of output by 10% by 1980. This falls in line with the goals set by the mining and metallurgical task force on voluntary energy conservation.To effectively implement the program, Plant Committees were established at each plant and mine area, with an energy management coordinator appointed to coordinate the activities. The Plant Committee's responsibilities include identifying the major areas of energy consumption, isolating areas with large potential losses and determining what action should be taken to improve energy efficiency.Within a five-year period from 1975 to 1980, the Ontario Division has been able to cut its energy consumption by 8.9 trillion BTUs, the equivalent of 1.5 million barrels of oil."

Jan 1, 1981

By R. P. Taylor

"This paper covers the development of the property to its present production level of20,000 tonnes per day from the Valley Mine. It will also review the analysis of various case studies for the expansion of the project to its full potential, and discuss the impact of the recent structural change in the copper market on the development of a large low-grade deposit such as Valley.IntroductionIn 1964 Cominco participated, along with a number of other companies and individuals, in the formation of Valley Copper Mines Ltd. This company was formed in order to facilitate exploration on a large number of mineral claims held by these parties in British Columbia's Highland Valley, approximately 400 km northeast of Vancouver (Fig. I). Cominco 's ownership of Valley Copper was gradually increased over the years bot h through shares gained for exploration expenditures and through shares purchased on the open market. By the mid- 1970sCominco' s interest in Valley Copper exceeded 80%.ExplorationExploration from 1964 to 1969 led to the discovery of a massive porphyry copper depo sit now known as the Valley orebody. A claim boundary divided the deposit with 80% of it on Valley Copper claims and 20070 on claims held by Bethlehem Copper which was already mining adjacent copper orebodies. During the period when the Valley ore body was discovered, exploration by other companies resulted in the discovery of the large Lornex and Highrnont deposits nearby. The stage was now set for the Highland Valley to become an important copper-producing area (Fig. 2)."

Jan 1, 1986

By Douglas W. Reeve, Hoc Nghia Tran, David Barham

"In kraft pulp mills, the spent pulping liquor is concentrated and used as fuel in the recovery boiler. Extensive deposits are formed in the upper section of the boiler due to the very high ash content of the fuel and the volatite nature of the ash. Deposits are composed of Na2S04, Na2C03 NaCI, some potassium salts and reduced sulphur compounds. Chloride and potassium salts are enriched in the deposits compared to the smelt due to their greater volatility.Severe corrosion of the superheater tubes in a recovery boiler has been traced to three factors: a non-uniform temperature profile in the flue gas, relatively high operating steam temperatures and high chIoride and potassium concentrations in the fireside deposits.The role of chIoride and potassium in superheater corrosion has been explained by increased Iiquid phase in deposits. Together with corrosion studies, this information has shown that kraft recovery boiler superheater corrosion due to the chloride and potassium enriched deposits can be avoided by proper boiler operation and by judicious superheater and furnace design.IntroductionThis investigation of recovery boiler superheater corrosion was initiated by the discovery of severe corrosion of the final stage superheater in a Canadian closed cycle kraft pulp mill(1,2). Metal wastage leading to tube failure was believed to be due to three major causes : the relatively high operating steam temperatures, the uneven distribution of flue gas temperature across the boiler which created a "" hot spot"" and the high chloride and potassium concentrations in the superheater fire side deposit. The mill responded to the problem by i) lowering the superheater steam temperature from 475°C to 380°C, ii) minimizing the chloride content in the spent pulping liquor, by controlling the NaCI input with recovered bleach plant effluent, and iii) changing metallurgy of a portion of the bottom section of the final stage superheater platens from ferritic steel T-22 (2.25% Cr, 1% Mo) to austenitic steel Incoloy 800H (21% Cr, 32% Ni, 46% Fe, 1.5% Mn, 1% Si, 0.6% Al) (Fig. 1). Details of the superheater corrosion experienced in the closed cycle mil! have been reported in previous papers(l ·2,) ."

Jan 1, 1984

By H. E. Lake

VERY EARLY in the initial stages of underground development work at Eldorado's Beaverlodge operation, the decision was made to use mill tailings as a backfill product. Mining and milling commenced in June, 1953, using locally available sand as backfill, while test work and installation of a plant was carried out to prepare ?and deliver the tailings to the mining areas. The first use of tailings was made in February, 1954, a sandslime separation being carried out with hydraulic cyclones. To date (January. 1956), approximately l 40,000 tons of fill have been used in the stoping areas, providing very effective support in a 50 deg. Vein system of cut-and-fill mining. The recoverable portion of the mill tailings amounts to 40 to 45 per cent, which has resulted in a product giving a percolation rate of 6 to 10 inches per hour. Owing to the fact that Eldorado has milled from 15 to 2 5 per cent more ore than it has mined, through the purchase of custom ore, the degree of control on the sand-slime separation has not been as critical as it might normally be when the filling operation must depend only on the tailings from ore mined. A description of the conditions involved and of the plant as finally installed is given below. It might be mentioned here that, with the impending increase in milling capacity from 700 tons to 2,000 tons p.er day, the present plant will be considerably altered within the ensuing year to handle the increased tonnage and distribution.

Jan 1, 1956

By A. G. Pronk, D. M. Burton

"A regional till sampling program in the Upsalquitch Forks-Tetagouche Lakes area, centred some 70km west of the city of Bathurst, has proven an effective method for gold exploration in the heavily glaciated interior of northern New Brunswick. Prospecting activities within this area over the past three years, have led to the discovery of several gold occurences associated with quartz-carbonate alteration in a variety of intrusive rock types emplaced along major fault zonesQuaternary mapping shows that the glacial history is complex. However, the displacement of material is uniform in distance and direction, and the till is generally thin (0.5 m to 2.0 m) and locally derived, making the interpretation of till geochemical patterns relatively simple for the explorationist. Previous studies have shown the the fin e-grained gold is best detected in the -250 mesh (-0.063 mm) till fraction (clay plus silt) and that the C-horizon is the preferred medium for analyses.Samples were collected on a 2 km grid and analyzed f or Cu, Pb, Zn, Au, Ag, As, Sb, Mn, Fe, Ni, Co, and Cd. Results indicate that concentrations of 10 to 20 ppb Au can effectively delineate areas of anomalous gold in bedrock associated with fault structures, and that a good potential for discoveries exists to the west of the known occurrences, where up to 678 ppb A u has been detected in tills. IntroductionThis paper reports on the result s of surficial geological investigations conducted over the past two field seasons in north-central New Brunswick. The stud y area is located in the Upsalquitch Forks-Tetagouche Lakes map area s (N.T.S. 21 0 19 and 21 0 (10) 70 km west of the city of Bathurst (Fig. I). The area is situated on the margin of the New Brunswick Highlands and has a maximum elevation of 640 m (for a detailed description of the physiography, see Rampton et al. 1984).Historically, exploration in northern New Brunswick has concentrated on base metals within the Cambro-Ordovician Tetagouche Group, resulting in the discovery of man y significant massive sulphide deposits (Brunswick No.6 and No. 12, Heath Steele, Caribou, Armstrong Brook, Orvan Brook, McMaster, Murray Brook, and Restigouche). Auriferous base metal occurrences along the Rocky Brook-Millstream Fault have also been previously investigated."

Jan 1, 1988

By John E. Udd

"In this paper the author presents the results of the 1992 CIM survey of graduates in minerals and technology programs in Canadian post-secondary institutions. As usual, the trends are out-of phase with the economic state of the industry. People who chose a minerals career in the prosperous days of the late 1980sare now entering a labour market in recession.The cyclical nature of enrollments is illustrated in a series of figures showing the trends since the CIM survey Wa5 begun in 1956 (and even earlier for mining engineering).In the survey, the respondents were asked to provide comments on their perceptions of the problems specific to minerals education in Canada. The large number of responses have led the author to the conclusions and recommendations given in the final part of the paper."

Jan 1, 1993

By Bruce J. Barker

"Environmental concerns have recently been growing over the disposal of reactive desulphurizing slag. Consequently, increased pressure has been placed on the foundry industry to reduce the reactivity of this slag.To address this problem, Cyanamid has developed a new product which significantly reduces the calcium carbide content of the desulphurizing slag. Testing equipment and procedures have also been developed to evaluate both the existing levels of carbide in the slag and the decreased levels which are achieved with this new material.The development and use of this engineered carbide desulphurizer has made possible significant environmental and efficiency improvements in the field of calcium carbide desulphurizing. Consequently, the lifespan of calcium carbide in ductile iron desulphurization has been increased, as have the benefits of its use in the foundry industry. IntroductionIn the production of ductile iron, calcium carbide has long been used for hot metal desulphurization external to the cupola. Its cost effectiveness, reliability and ease of use have traditionally made it the desulphurizer of choice for a great majority of ductile operations. Recently however, environmental concerns have been raised regarding the quantity of calcium carbide remaining in the slag after desulphurizing. Analysis has shown that as much as 25070 of the weight of the slag may contain active carbide. This has caused disposal concerns as calcium carbide when in contact with water, produces acetylene via the following reactionr:"

Jan 1, 1992

By Robert B. Parsons

"It is generally felt that flow-through shares face a bleak future under the set of tax rules proposed in the federal government's tax reform white paper. Industry and government circles are beginning to give thought to alternatives to flow through as a mechanism for facilitating equity financing in the exploration industry. Despite suggestions that grants and tax credits may someday be on the table, industry is sticking to its position that there is no substitute for flow-through. Alternatives toFlow-throughProposals in the federal government's tax reform white paper have cast significant doubt on the ability of the mining industry to raise risk capital after 1989by way of flow-through shares. There is serious concern that introduction of the ""cumulative net investment loss"" (CNIL) rules, the phase-out of the mining explorati0! 1 depletion allowance (MEDA), and the Increased capital gains inclusion (750/0 versus 50%, at present) will make the economics of flow-through so unattractive after 1989 that these shares will hold little appeal to most investors. The question might be raised, then, as to what alternatives exist by way of tax or other government assistance that could help the exploration sector.The purpose of this paper is to survey the types of government incentives that could be of some value to explorationists and to the mining industry in general. For the past several years, flow-through has been in the spotlight insofar as incentives to the exploration industry are concerned. Other potentially useful and attractive incentives have been partially hidden in the shadow of flow-through. These incentives, in certain circumstances, can be of considerable benefit, and should not be ignored."

Jan 1, 1988

By D. G. Champion

"A comparison of diesel engine power ratings with in-service capability, and the selection of unit size and total number of units are discussed in the paper. Engine specific fuel consumption and its evaluation in relation to manufacturers' tolerances and equipment load factors is reviewed along with the suitable plant layout. The potential for heat recovery is discussed in connection with simple and operable recovery systems f or exhaust and cooling circuits. Maintenance standards as related to improved reliability and reduced fuel and operating costs are also outlined. IntroductionDiesel generators are used in Canadian mining operations to provide electrical power for "" base- load"" requirements in some instances and for ""stand-by"" or ""emergency"" power in almost every producing mine in the country . There are over 300 mines in Canada of which only a handful have to generate their own electricity. Only one or two mine s enjoy access to a hydroelectric site. Consequently, the diesel engine is the principal prime mover because of its high efficiency relative to other prime movers in the size range in question.The author has been associated with several “base-load” plants in addition to participation in numerous projects requiring emergency diesel generators. Records indicate that engine performance in term s of reliability and efficiency lags behind other industries where the diesel engine is used more extensively, such as the shipping industry which is able to make a more prudent selection of original equipment and enjoy easy access to highly skilled operating and maintenance personnel. It is hoped that the contents of this paper will be of value to Canadian operators of diesel generators, in the generation of prime power or applications for back-up power."

Jan 1, 1986

By P. S. Daly

"The purpose of this paper is to describe the types of instrumentation used at Sherritt Gordon's Ruttan Mine to monitor the"" effects of mining. The aim of the monitoring program is to establish parameters to achieve a maximum ore recovery with minimum dilut ion in a safe environment.The copper-zinc Ruttan Mine is in northwestern Manitoba, approximately 760 km from Winnipeg (Fig . I) . Production commenced in 1973 from the open pit at the rate of 10,000 tons per day. Pit bottom lies 58 metres above the first mine level. Underground development has overlapped with open-pit mining throughout. The open pit was phased out in the latter part of 1980.Underground production began in early 1979. The mining method employed in the first lift is sub-level blasthole open stoping with delayed hydraulic filling. Large-diameter (6.5-in.) holes are being drilled in the crop stope area and are also planned for some other areas for vertical retreat mining into a slot. GeologyThe orebody consists of numerous sulphide lenses of variable size, geometry and geology . The lenses occur within volcanoclastic host rocks which exhibit a strong variability in intensity and type of alteration and structural characteristics. Stope design and sequencing were based on these complex geological factors."

Jan 1, 1981

By Bertrand Wolfman, William E. Stanley

"This paper reviews the traditional mine accounting systems, including ""custodial accounting"" and unit costing, and then suggests that the use of flexible budgets represents a more suitable method of reporting costs in order to assist the mine manager in improving productivity. Examples of various applications are given to show that the result is a clear reporting structure.Custodial Accounting is Emphasized in Traditional SystemsTraditional mine accounting has been mainly concerned with the accuracy of financial reporting to ""head office"" for the use of the directors and the company's bankers and shareholders. This is often called custodial accounting and it represented the main purpose of accounting when first developed in Europe hundreds of years ago. This important development permitted the establishment of enterprises which were separated from their owners because they could rely on accurate financial reports of management's stewardship.As custodial accounting is fairly broad and historical in nature, it is often not very useful to the mine manager for ongoing monitoring of performance of mining, milling, maintenance, and other support and staff groups. In spite of the considerable investment in accounting staff and computer support, many accounting systems have not been upgraded so that they accurately reflect workplace performance on a weekly or monthly basis.Budgets are Often FixedMany mines today also still emphasize fixed budgets. Thus, the mine plan which is set in the fall of one year is converted to a monthly tonnage and detailed dollar budget for periods of up to sixteen months in the future. The only certainty in this plan is that actual events will differ; timing, mix of mining methods and production volumes will differ on a monthly basis.Unfortunately, the fixed budget has no capability to reflect these operational changes. It is frozen for the full year. The result is that actual results will inevitably be compared to an outdated target."

Jan 1, 1982

By M. Hall

"SomarioEl circuito de molienda a Selbaie consta de molino semiaut6geno en un circuito cerrado y molino de balas en un circuito cerrado. El amperaje del motor de se usa controlar el tonelaje el molino. Este sistema estabiliza el circuito pero no mejora activamente el rendirniento del circuito. Se desarroll6 auxiliar el rendimiento del circuito un sistema experto en manipular las objetivos de existir control proporcional-integral. Se ejecut6 el sistema con el Comdale /C conjunto del sistema experto y ha side funcional hace tiempo el mayo de 1992. El sistema experto ha resultado en un aumento en tonelaje de 7tph y una disminuci6n de $210,000 en el caste anual de media de molienda. Se describe el desarrollo del sistema y los provechos derivar se presenta.AbstractThe grinding circuit at Selbaie consists of SAG mill and ball mill closed circuit grinding. The SAG mill motor current is used to control throughput. This system stabilizes the circuit but does not actively optimize circuit performance. An expert system was developed to aid the optimization of the circuit by manipulating the set-points of existing PI control loops. The system was implemented with the Comdale /C expert system package and has been on line since May 1992. The expert system has resulted in a net increase in tonnage of 7tph and a decrease in annual grinding media costs of $210,000. The system development is described and the benefits derived are presented."

Jan 1, 1994

By W. G. Jeffery

"The mining and mineral industries have been, and remain, a major component of the Canadian economy. There are approximately 560 producing mining establishments of which there are some 130 metal mines and an equal number of non-metal mines, the balance being quarries for stone, sand and gravel. For 17 metals and minerals, Canada ranks within the top five as a world producer. There are 29 metallurgical plants. Employment in mining, smelting and refining was about 150000 in 1990. Mineral production, including coal, is about $20 billion. Exports up to the metal stage amount to $15 billion providing a positive trade balance of some $10 billion.The producing industry has a wide diversity of products. The companies range from small single mining operations to large multinationals. In terms of technology the industry has always been in the forefront of cost-effective practice, either using home-grown innovation or freely importing technology from around the world,The Mining Industry Technology Council (MITEC) makes an annual survey of the exploration and R&D expenditures of the senior mining industry that is the mining companies that are involved in mineral production from their existing mines. It does not include those companies solely involved in exploration using funds raised through equity sales.Table 1 shows the actual R&D and exploration expenditures as a per cent of sales. R&D shows a rising trend since 1988although the drop in value of output due to lower prices must be recognized as contributing to the increase. The point about this compilation is that the mining industry re-invests some 4070 of its sales in both exploration and R&D in order to sustain itself. Exploration for the renewal of metal inventories for future mining is a process unique to mining. It is not classified as R&D, and the necessity for this investment goes unrecognized by those who state that the industry does not do enough R&D."

Jan 1, 1993

By Q. Han, W. Dai

Al-Ti-B type master alloys have been widely used in the grain refinement of aluminum since 1940s. The introduction of Al3Ti and TiB2(AlB2) particles reduces the grain sizes down to about 200 micrometer level and makes cold work possible. However, the mechanism for the grain refinement is still not clear, though it is believed that TiB2 in the presence of Al3Ti nucleate a-Al grains in solidification. This paper presents our finding on the formation of (Ti,Al)B2 solid solution, which leads to a proposed theory on grain refinement by Al-Ti-B type master alloys that upon addition into aluminum melt stable TiB2 particles react with aluminum slowly and release titanium into the melt. The titanium thus released in combination with titanium in the melt through dissolution of Al3Ti maintains a transient titanium-rich layer on the surface of (Ti,Al)B2. This layer offers a low crystal mismatch with a- Al and promotes the nucleation of aluminum grains.

Jan 1, 2014

By Andrew Neale, Len Anderson, Rob Perry

"P.T Freeport Indonesia's new SAG mill commenced operation in February 1995. The reclaim system consists of four apron feeders and a series of three conveyors. The feeders are used in various combinations and relative speeds to blend SAG mill feed. It was recognized during design of the control system that effective automatic control would require dead-time and gain compensation. The successful implementation of the Dahlin algorithm to provide variable dead-time and gain compensation is described and compared to Pl control.RésumeL'opération du nouveau SAG de P.T. Freeport Indonésie a commencé en Février 1995. Le système de réclamation du minerai comprend 4 alimentateurs à tablier et une série de 3 convoyeurs. Les alimentateurs sont utilisés dans une combinaison variée et à des vitesses relatives différentes pour mélanger l'alimentation du SAG. II a été reconnu pendant la conception du système du contrôle que le contrôle automatique demandera une compensation pour le temps de délai et le gain. L'implantation de l'algorithme de Dahlin a été un succès et ii est comparé avec le contrôle Pl.ResumenP.T. Freeport Indonesia inició la operación de un molino semi autogeno (SAG) en febrero de 1995. El mineral es alimentado desde cuatro alimentadores tipo apron feeders y una serie de correas transportadoras. Los alimentadores se utilizan en variadas combinaciones y velocidades para mezclar apropiadamente el mineral que alimenta al molino SAG. Durante el diseño del sistema de control se detectó que el control automático requería de un tiempo muerto y compensaci6n de ganancia. En este documento se describe la implementación del algoritmo de Dahlin, que ha sido exitosa y ha permitido proveer tiempos muertos variables y compensaci6n de ganancia. Ademas se hace una comparaci6n con el Pl de control."

Jan 1, 1996

By M. H. Moys, C. Bhondayi, Eric Tshibwabwa

"The relationship between froth bubble size as represented by intra-bubble impact distances (IID) and flotation performance is investigated. Experiments using an artificial ore comprising of limestone as the floatable component and silica as the gangue material were carried out in pseudo-steady-state circuit. A method to measure IIDs developed by Bhondayi and Moys (2014) was then used to measure froth bubble sizes as a function of froth height, superficial gas velocity and feed rate (pulp residence time). Samples for flotation performance evaluation were also taken. Results indicate that as froth height increases, the average IID values increase resulting in a decrease in limestone recovery while the grade increases. Increasing gas rate results in lower IID values that are accompanied by high recovery and low limestone grade. The effect of feed rate on both flotation performance and average IID values depended on froth depth and gas rate. Average IIDs largely remained the same at the two feed rates investigated.INTRODUCTIONIt is regarded as obvious that froth bubble size distribution (FBSD) will have an effect on plant grade and recovery. As the average FBSD decreases, the bubble surface area flux will increase making possible an increase in recovery and a decrease in grade. The opposite trend will be involved if average FBSD is increased. However: no method for measuring FBSD has been available, so these trends have not been studied in any detail. Bhondayi and Moys (2014) developed a novel technique to measure or estimate froth bubble sizes. Although they established a potential to use this method in understanding froth performance, no data have been presented to assess the correlation between the estimates of bubble sizes and actual flotation performance. In this work experiments are done to establish how the change in froth phase bubble sizes affect flotation performance. Flotation performance will be evaluated using recovery and grade. How water recovery to the concentrate changes with changes in bubble sizes will also be evaluated. It is known that water recovery is approximately inversely proportional to the square of the overflowing bubbles sizes. It will be interesting to establish how the rate of change of bubble sizes changes with water recovery."

Jan 1, 2016

By Brian Hall

For some years, the mining industry has been consistently delivering returns below the market average. One of the causes is a disconnect between what is perceived to drive value creation by many industry analysts and senior corporate executives, and what actually drives the intrinsic value of mining operations. The perverse effect is that strategies that should increase value are perceived to have the potential to drive share prices down, and vice versa. This paper challenges common perceptions of what drives a mining company?s value. Anecdotal evidence suggests that the key drivers of value in the market, and hence in many boardrooms, are such things as increasing the reserves and production rate, and reducing unit operating cost. However, while the quoted reserves may satisfy ore reserves reporting code requirements to be economic, this does not imply that they are optimal. Often, a proportion of the quoted reserve reduces the potential value of the operation. Metal price increases, increased production rates, and operating cost reductions are all seen as conditions or actions that can improve value, and lead to cutoff grade reductions, thereby increasing ore reserves. However, modern cutoff theory and studies conducted by the author and his colleagues show clearly that, while breakeven cutoff grades will fall in these circumstances, optimum cutoffs may be much less volatile, and may even increase. Results from case studies indicate that value is maximised by right-sizing, not maximising, the production capacities, and by optimising the cutoff strategy. Values of many existing underground mining operations can be increased significantly by a substantial cutoff grade increase. Also, an increase in downside risk, and hence reduced returns, can occur using typical life-of-mine planning strategies if prices received are lower than predicted. Since this is often the case, low industry returns may be a direct result of typical strategic mine planning processes. Relatively simple cost-effective techniques are available to provide senior decision makers with information needed to assess the tradeoffs between their many conflicting corporate goals, and the balance between risk and reward. Often this information is not being generated at all. If it is, decisions affecting the value of the company are occurring by default at relatively low levels within the hierarchy, with senior executives apparently unaware of them or their potential impact. The paper concludes that without a re-evaluation of the way mining projects are valued, to demand proven value optimisation from mining plans by boards and mining analysts, the industry will continue to deliver below average returns.

May 1, 2003