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By Lawrence Devon Smith

"The concept of risk is well established in the mining industry. It is acknowledged when estimates of reserves are expressed as proven or probable, when mining and metallurgical recoveries are applied to the ore, and when contingencies are added to costs. However, it is difficult to provide a quantitative assessment of risk. The significant sources of risk in a mineral project and how these are addressed in project evaluations are discussed. The discount rate is examined as a fundamental means of reflecting risk in discounted cash flow evaluations. Current industry practice is discussed, and a methodology for the analysis of risk levels is proposed that assesses the constituent components of the discount rate: real interest, mineral project risks, and country risk.IntroductionThis paper examines the components of the discounted cash flow discount rate and proposes a method of estimating project-specific discount rates. The motivation for this work comes from experience of project evaluations in which owners and purchasers had agreed on virtually every aspect of the evaluation except how much the project was worth. Agreement was reached on reserves, grad~, recovery, capital costs, operating costs, taxes, and, by combining these components, even on the fmal cash flow values. The only difference in opinion concerned the discount rate to be used in the calculation of the net present value. Depending on the life of the project, such differences of opinion can cause a variation of more than 50% in the value placed on a project! This is illustrated in Figure 1."

Jan 1, 2003

By J Webster-Brown

The Tui Mine is an abandoned Pb-Zn mine giving rise to water quality problems in the Te Aroha region of Coromandel, New Zealand. When sampled in September 2002, for example, both the Tui and Tunakohoia Streams draining the mine site exceeded ANZECC (2000) water quality guidelines for aquatic life protection (Cu, Cd and Zn) and recreational quality (Cd). Based on trace metal mass flux (kg/yr) from parts of the mine site, the principal pathways by which Cu, Zn and Cd contamination reach these streams have been identified as:the tailings dam leachate,the diverted stream water from above the dam,the drainage from Adit 5 (which accounts for 95 % of Zn and Cd contamination in Tunakohoia Stream), andto a lesser extent, run-off from waste rock piles below Adit 4 level. Of the various remediation options, which have been proposed for the site, the following are identified as providing the best protection for the Tui and Tunakohoia streams:stabilising the tailings dam embankment and capping the embankment and tailings,constructing and/or cleaning out engineered diversion drains around the perimeter of the tailings dam to divert surface water away from the tailings dam, andinstalling bulkheads within Adit 5. A formal postal survey of the people of Te Aroha (66 respondents from 230 surveys) indicated that their priority was that the site be made safe for the public to visit, and used for recreation. As soil samples in potential recreational areas of the mine site, significantly exceeded guideline values for Cu, Pb, Zn, Cd and As, soil removal or capping clearly also needs to be part of a remediation plan. Development of the site as a historical/ecotourism area was viewed favourably, as this may encourage more visitors to the Te Aroha area as well as educate local residents.

Jan 1, 2003

By J. A. H. Church

The report is too voluminous to be considered in detail within the scope of a single paper, so I will confine my consideration of it to the broader aspects, leaving other members to deal with points of particular interest. The method of presentation leaves one with an uneasy sense of prolixity and confusion of thought; the foreword by the Chairman may well be accepted as a true index of the whole. His argument amounts to this: Recognizing at the outset the futility of divided counsels, it was deemed advisable to arrive at unanimity. To this end, some members subscribed to views to which they do not whole-heartedly assent, thus giving weight to conclusions with which they were at variance. Unanimity cannot be qualified-either it exists or is absent-and, moreover, in the text of the Com-mission I can find no word that unanimity is required. Surely it would have been preferable to have a unanimous report covering such aspects as were acceptable to all members, with minority reports by individual members on such other aspects as were controversial, leaving it to the Government to give such weight to the divergent views as the personality of their sponsors might warrant. In the final analysis the value of an opinion varies directly as the personality of its exponent.

Jan 1, 1926

Coal research and related activities in 1964 by the Bureau of Mines resulted in many advances in the production, preparation, and utilization of this valuable natural resource. Mining research during the year was marked by work on hydraulic mining, coalbed degasification, mine drainage control, mine sealing, strip-mine rehabilitation, and quenching of mine-refuse fires. Bureau research continued to produce information leading to increased safety in underground mining. Such research included roof and rib control via bolting and bonding, pressure monitoring of coal and mine rock during mining operations, and development of safety devices for detecting conditions leading to roof falls. Other safety work was continued on methane detectors, coal-dust suppression, and mine ventilation equipment and techniques. Mine explosion and explosives research, mine equipment and materials, safety rule modernization, and safety education and training of mine workmen were continued. Coal storage and preparation work in 1964 ranged from freezeproofing of lignite for rail shipment, through washability studies of coals and washing equipment, to research on new ways to remove ash and sulfur from coal. Electric power production, which accounts for a major portion of the market for coal, received further study. Unique power generation systems, including coal-burning gas turbine and megnetohydrodynamic generators, were intensively investigated. Conventional power systems were improved through continuation of work on furnace performance, powerplant stack gas purification, and engineering and boiler water service.

Jan 1, 1965

During the second quarter of 1983, the economic recovery showed further strength abetted by the performances of consumer spending, residential investment, and the slowing down of inventory reductions. Real gross national product (GNP) increased from the first to second quarter at an annual rate of 9.2 percent, compared with 2.6 percent from the fourth quarter of 1982 to the first quarter of 1983 and an overall 1.9- percent decrease in 1982. Total industrial production increased 1.8 percent in July, and productivity as measured by output per man-hour increased 1.3 percent between 1982 and the first quarter of 1983 (table 1). Especially noteworthy .was the performance of real consumer durable goods expenditures, which increased at an annual rate of 32.0 percent from the first to the second quarter (about half of the increase consisted of automobile sales) and real consumer spending, which increased between these periods at an annual rate of 9.7 percent. Residential investment increased at an annual rate of 76.1 percent between the first and the second quarters,1/ and private housing starts by about 38,000 units in both March and May.

Jan 1, 1983

The Iron Ore Company of Canada (IOC) is the largest manufacturer of iron ore pellets in Canada and its customer base covers North American, European and Asian steel producers. The company operates a mine, concentrator and a pelletizing plant in Labrador City, Newfoundland and Labrador, as well as port facilities located in Sept-Iles, Quebec. It also operates a 418-km (260-mile) railroad that links the mine to the port. IOC has approximately 1,900 employees. Its shareholders are Mitsubishi Corp. (26.18 percent), Labrador Iron Ore Royalty Income Fund (15.1 percent) and the international mining group Rio Tinto, which is its major shareholder (58.72 percent) and operator, with activities in more than 40 countries throughout the world. The IOC was incorporated in 1949 and by 1954 it had completed the Quebec North Shore and Labrador (QNS&L) rail line. IOC began mining in Schefferville, Quebec by 1954 and closed those operations down in 1982. In 1962, IOC commissioned the present day Carol Project consisting of mining, concentration and pelletizing facilities in Labrador City, Newfoundland. In 2004, IOC shipped its one-billionth tonne of ore on the QNS&L Railway. In 2005, IOC celebrated 50 years of mining history. The company expressed an interest in reducing the amount of oversize material (>1 m x 1 m x 1 m or 3.2 ft x 3.2 ft x 3.2 ft) being produced and its subsequent downstream effects, including in-pit sorting and reduction, damage to mobile equipment and significant delays in the loading pockets and the primary crushers. To achieve this goal, an oversize reduction project was undertaken by the mine that, to date, has significantly improved upon baseline measures. One key approach used to reduce the amount of oversize was the implementation of thicker emulsion. The introduction of a thicker emulsion provided more resistance to the forces created by dynamic water and reduced the infiltration of the emulsion into the cracks and fissures of the rockmass, resulting in reduced amounts of oversize and more consistent fragmentation throughout the muckpiles. Additionally, a significant reduction in nitrates leached into the mine water discharge has been realized. To determine the effectiveness of the oversize reduction project, IOC used a first-of-kind technology to assess fragmentation presented to the shovel at the digging face. A digital vision system (DVS) was installed on one of the shovels to capture images that were stamped with GPS locations. A large population of digital images were analyzed to produce a robust fragmentation distribution baseline that was used as one of the mine key performance indicators (KPI). Changes to blasting practice were subsequently measured against the baseline KPI to assess effectiveness.

Jan 1, 2011

The recent boom in the mining industry has lead to some unique challenges in successfully operating processing plants. With high turn-over rates of both operators and technical staff, and many experienced personnel leaving regional sites for city based jobs there is often an onsite knowledge vacuum and this in turn puts pressure on both site training departments and senior metallurgists to provide the relevant skills to the continuous stream of new staff. Frequently both operators and new metallurgists are instructed on a æhow-toÆ basis rather than giving them the understanding as to why tasks are performed and decisions are made. This paper has been written with the plant operator and metallurgist in mind and aims to provide suitable material to be incorporated into a site training manual. Topics have been broadly divided into the following categories: factors that operational staff can control; including pulp density, air addition rate, froth depth, particle size and reagent type and use; factors that operational staff cannot control; providing general information on bubble size, froth stability, pulp chemistry and the mechanical effects of the rotor/stator system; and process improvements. Each topic is discussed with a view to clarifying the key process variables that need to be understood and optimised in an industrial operating plant.

Jan 1, 2009

By Michael D. Balen

During the years 1987 through 1989, the Bureau of Mines Alaska Field Operations Center (Bureau) in cooperation with the Western Field Operations Center and the Alaska Division of Geological and Geophysical Surveys (ADGGS), conducted mining, geological, and geochemical investigations in the 5.7 million-acre Valdez Creek Mining District (VCMD). This investigation was conducted as part of the Bureau's continuing Mineral Land Assessment (MLA) mining district studies program. The Bureau's MLA program is designed to provide reliable and comprehensive mineral resource information that supports mineral resource policy and land use decisions made by Congress and Federal land management agencies. The information also provides the basis for decisions that would expand the domestic supply of important mineral resources, primarily strategic and critical minerals. Much of the MLA work is done jointly with cooperating State or U.S. geological surveys.

Jan 1, 1992

By Michel Lefebvre, André Piché

Every organization performing R&D is faced with the challenge of introducing new technologies to its operations. Difficulties must be overcome if companies are to realize the benefits anticipated from such developments. This paper outlines the difficulties encountered in transferring to operations various technologies developed at the Mining and Exploration Division of the Noranda Technology Centre. The approach used in the selection of a privileged partner for the technology transfer, the criteria motivating the choice and the process followed to establish the partnership are presented.

Jan 1, 1997

By Joseph M. Pugliese

This work was done by the Bureau of Mines to provide quarry operators with an uncomplicated, first-approximation method for designing blast patterns, considering geologic structure, and to show the valid use of the technique by comparing drill and blast pattern dimensions used in the quarry with those determined by the presented method. The author visited 12 limestone and dolomite quarries in Ohio (Adam, Crawford, and Highland Counties), Wisconsin (Milwaukee, Racine, and Waukesha Counties), and Minnesota (Fillmore, Olmsted, and Wabasha Counties); observed the blasting practices; studied the major geologic features; and after discussion with the quarry managers, foremen, and blasters, compared the quarry blasting patterns with those as calculated by the empirical formulas (after R. L. Ash), with geologic structural considerations. When geologic structure such as bedding, jointing, folding, and caves, as well as explosive properties and field performance characteristics are accounted for in a manner suggested by the research, the presented empirical formulas may be used as a good first approximation. The included steps in planning a blast design and generalized blast patterns should be of help to the quarry operator. Design changes are recommended for those quarries where problems are occurring.

Jan 1, 1972

By R. R. Klimpel

"SYNOPSISA discussion of the importance of flotation rate in the analysis of mineral flotation is presented. In particular, the highly interactive nature of the flotation ""system"" is emphasized where there are components of chemistry, equipment, and operating conditions simultaneously involved. It is further shown that: 1) flotation rate must be measured in order to economically optimize the performance of an industrial flotation circuit, 2) that consistent patterns exist in both flotation rate and equilibrium recovery when changing various settings of the system components, 3) that knowledge of these patterns is necessary in order to avoid making system changes that are either self-compensating or dramatically re-enforcing in some particular aspect of performance, and 4) the rate related role of the chemistry component (e.g.frothers and collectors) is often much bigger than is sometimes realized (especially in a negative sense involving overdosing of reagents). INTRODUCTIONFroth flotation is widely usedl-6 in mineral beneficiation processes as a method for separating different types of finely divided solids present in a liquid (usually aqueous) suspension. The approach is based on the contacting of solids with upward moving air bubbles in an agitated vessel where the solids are exposed to chemicals (collectors) which create a condition favoring the attachment of a certain portion of the solids to the air bubbles. This selected portion is then removed in a froth stabilized by chemicals (frothers) and subsequently recovered from the flotation vessel. Depending on the settings of the various components of the flotation ""system"" (see Figure 1) it is possible to achieve a wide range of flotation performance."

Jan 1, 1984

By Edward H. Robie

Jan 1, 1971

By J. Girard-Dwyer, T. Camm

Direct costs such as medical, legal, administrative, and worker’s compensation costs, property damage, lost earnings, and lost benefits are typically used to compute the economic impacts of occupational injuries. However, there are also a number of less obvious, indirect costs that substantially contribute to the overall loss costs. In fact, for every $1 of direct costs an estimated $3 to $5 of indirect costs are also incurred. This paper presents a systems approach that incorporates engineering, economics, psychology, and sociology in order to evaluate the total value of investments in safety. By studying the interrelated system comprised of the injured worker, their family and coworkers, as well as the organizational structure that was the setting for the incident, a methodology can be developed that will more accurately capture the true costs of mine injuries.

By W. W. Roepke

The Bureau of Mines has developed an interactive computer program that enables mine operators and others to identify the effect of cut-ting system changes on relative dustiness at the face. The program, which simultaneously evaluates machine parameters, coal seam parame-ters, and operator-controllable parameters, was developed for use on any microcomputer using BASIC programming language. The program allows the user to change one or more of the cutting system parameters at a time to see how these changes affect relative dustiness. A complete program listing and flowchart are included along with operating in-structions and sample outputs. An example showing how to use the program is also included.

Jan 1, 1985

By B. J. Moore

This publication contains analyses and related source data for 352 natural gas samples from wells and pipelines in 18 States and 5 foreign countries. All of the samples were obtained and analyzed during calendar year 1974 as a part of Bureau of Mines investigations of the occurrences of helium in natural gases of countries with free market economics. This survey has been conducted in the United States by the Bureau of Mines since 1917. In late 1965, the survey was expanded to include foreign gasfields. The analyses published herein were made by mass spectrometer and a special helium analysis apparatus, which are described in Bureau of Mines Bulletins 4862 and 576.3 The results of the investigation of the occurrences of helium are published annually to make the information available as soon as possible to the gas industry and the public in general. Sixteen previous publications have presented the results of 10,479 gas analyses prior to 1974. The first three, Bulletins 486,4 576,5 and 617,6 contain analyses and related source data on

Jan 1, 1975

By R. Shimpo

Equilibrium calculations by a computer may sometimes fail in giving solutions when the system includes a large number of components and more than three phases, and especially when no definite information about stable phases is given. An improved method of calculation is presented in which the number of phases need not to be initially fixed, phases can appear or disappear in the course of' calculation and a new method is combined with the Newton-Raphson method to obtain solutions easily. The improved method is applied to the copper smelting operation and all the successive stages of the operation are successfully simulated.

Jan 1, 1983

By Frederick A. Mumpton

Recent findings by medical workers on the association of certain zeolite minerals with the high incidence of pleural mesothelioma in two small Turkish villages have caused considerable excitement both in medical circles and in the synthetic and natural zeolite businesses. The 42 cases diagnosed between 1970 and 1977 in one community of 600 population in a region of altered volcanic tuff represent a virtual epidemic of this rare malignancy which normally strikes only about one person in a million. Cancer workers around the world expect that detailed environmental and epidemiological studies of the disease in these areas will shed considerable light on the cause of this particularly lethal form of lung cancer. Scientists and engineers developing uses for zeolite materials in industry and agriculture, however, are justly concerned that the preliminary results available on this situation will be used by environmental and regulatory organizations to label an entire group of miner- als as carcinogens on the basis of what is little more than circumstantial evidence. Although there is no question as to the large number of cases of mesothelioma in these areas of central Anatolia, the work to date has suffered from a lack of sound geological and mineralogical input. Ataman (1) stated that a "correlation" exists between mesothelioma and zeolites in this region; however, the geological data needed to document a direct relationship between the presence of zeolites in the volcanic tuffs surrounding the villages in question and the rate of malignant lung disease in the inhabitants have g been obtained, nor has evidence that suggests a cause-effect relationship between zeolites and cancer been reported. To provide fundamental information on the distribution of zeolite minerals in areas of central Turkey where high incidences of pleural mesothelioma have been reported and to evaluate from first-hand knowledge the published reports and news releases of medical workers engaged in assessing the problem, the following investigation was made.

Jan 1, 1979

By Dennis Nottingham

Spin-fin pipe piles can develop large loads in tension, thus have evolved as a foundation product of great potential. Currently, over 500 spin-fin piles have been used successfully in dolphins, docks, buildings and bulkheads. Spin-fin piles are pipe piles with plates welded near the tip at a batter-in-screw fashion. Thus, as the pile is driven, the pile screws into position. Tests show this pile type to have highly unusual stress/strain relationships, wherein plunging failure is usually never reached either at normal or large deformations. Tension capacity can approach pile capacity in bearing; thus, large reserves are usually available for tension. Tests have been performed on 8-5/8-inch to 24-inch-diameter piles in silt, sand, and gravelly soil, to provide a broad spectrum of data.

Jan 1, 1990

By F. C. Lendrum

"This paper had its origin in a panel discussion organized by the Canadian Uranium Producers Metallurgical Committee (CUPMC) at their Annual Meeting in Blind River in May, 1964. The reason for the panel was the formation of the National Uranium Tailings Research Program funded in the amount of ten million dollars by the Federal government. According to the bureaucrats in charge the program would seek to solve the perceived problems as well as any actual problems they believed existed with uranium tailings. Dr. Allan Ashbrook of Eldorado Nuclear chaired this panel and his summation of the panel's purpose was set out as ""Regulation and the Regulatory Process in the Nuclear Industry, Where Have We Been, Where Are We Now and Where Are We Going""?"" This paper will try to relate these questions to the whole mineral industry.The Canadian Mining Association has been telling us our natural resources are today required only if they are competitively priced with those produced in so called ""third world"" countries where labour rates are lower, environmental restrictions may be less and every effort is made by the local government to sell their product. It is in this hostile economic climate that the Canadian mining industry now finds itself. Before going further I want to stress these comments apply only to: a) Mines financed by private capital in a free enterprise society.b) Mining companies want to operate in an environmentally safe manner. However, they must earn a profit because no company financed with private capital can borrow money ad infinitum.WHERE HAVE WE BEENNone of us today would want to return to the days when the mill waste management system consisted of pumping the tailing to the nearest slope and letting nature's law of gravity do the rest. This was the way it was in early gold mines in Nova Scotia, tin mines in Cornwall, England or silver mines in Cobalt, Ontario and survives today in countries where climate, customs and methods of doing business are far different from Canada. As mill tonnage rates increased, more sophisticated systems evolved often designed for mining areas with different climates. Systems imported from arid climates such as south-west United States retained the solids but allowed bacterial oxidation of the sulphides promoting acid drainage. Environmental regulations were introduced and Canadian mines learned to handle tailings in our climates."

Jan 1, 1986

By José R. Parga

In some parts of the Comarca Lagunera with population of about 2.5 million people, situated in the central part of northern México, chronic arsenic poisoning is endemic and severe adverse effects attributed to As exposure have been reported. Lifetime exposure to arsenic will develop classical symptoms of arsenic poisoning such as skin pigmentation changes, gastrointestinal disturbances and neurological changes. There are several methods available for removal of arsenic from well water in large conventional treatment plants, however a very promising electrochemical treatment technique that does not require the addition of chemicals or regeneration is Electrocoagulation (EC). The EC operating conditions are highly dependent on the chemistry of the aqueous medium, especially conductivity and pH. In this study, Powder X-ray Diffraction (XRD), Scanning Electron Microscope (SEM), and Transmission Mössbauer Spectroscopy (TMS) were used to characterize the solid products formed at iron electrodes during the EC process. This study will provide an introduction to the fundamental concepts of the EC method. Finally the results of this study suggest that the presence of maghemite and magnetite particles can be used to remove arsenic (III) and arsenic (V). In the field pilot plant scale study more than 99% removal of As species from groundwater is achieved.

Jan 1, 2005