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By R. J. C. MacDonald

"The first recorded discovery of placer gold in Canada was on the Chaudiere River in Quebec's eastern townships in 1832 and the first major production came from placer deposits in British Columbia in 1858 (Verity 1974). Placer deposits were the major source of gold until the late 1890's, although lode deposits were found in Nova Scotia in 1862. In 1896 the Klondike Gold Rush commenced with the discovery of gold by Henderson and Carmack in the Yukon. The peak was reached in 1900 when over one million ounces of gold valued at approximately $22.3 million were recovered. With the exhaustion of the easily accessible deposits, more capital intensive operations were necessary such as those initiated in 1906 by the Yukon Gold Corporation. This giant dredging operation continued to produce until 1966. Today only a few small operations remain.The development of Canadian lode gold mining began in earnest around 1900 when the railroads were opening up the interior and western part of the country. At this time many discoveries occurred, particularly where mineral outcroppings were near surface. Tremendous impetus for exploration and the reopening of former producers followed the elimination of the gold standard by Great Britain around 1931, and more importantly the United States in 1933, with subsequent stabilization of the price of gold at $35 per ounce in 1934. Prior to this the price of gold was basically unchanged since 1717, approximately, $20 per ounce (Verity, 1974; Green, 1973).The depression of the 1930s adversely affected most industries, however for the gold producers it was a very profitable time. Prices of materials and equipment declined and labour was cheap and plentiful. Interest in gold mining was further stimulated in 1936 when a three year tax exemption was declared for all new metal mines. In 1938 a decline in the value of the Canadian dollar relative to the U.S. dollar benefitted the industry. The second world war provided yet again further incentive for gold production and in 1941 Canadian gold production reached a high of approximately 5.4 million ounces. This figure was not surpassed until 1991 when approximately 5.6 million ounces were produced (Natural Resources Canada, 1996 )."

Jan 1, 1998

By Anna M. Ferrero

Stability condition of underground excavations have to be assessed to guarantee safe operations within the quarrying working areas. This objective requires a reliable assessment of the rock mass natural state of stress and of the stress redistribution induced by the excavations. This goal is often complicated by difficult geological conditions induced by tectonic stresses, complex topographies and large and irregular excavation geometries. Consequently, the acting state of stress needs to be measured by specific in situ measurement devices. This work refers on an in situ measurements campaign carried out by CSIRO tests in an underground quarry located in the Carrara marble basin. The difficult path carried out for interpretation of the measurements is described in this paper. In particular, the numerical modeling performed using the Boundary Element Method (BEM) first, to study the influence of both surface topography and excavation geometry and then the Distinct Element Method (DEM) to evaluate the influence of rock discontinuities in the measurement zone are illustrated in this work. Parametrical analysis of the rock mass mechanical features is also described in order to calibrate the numerical models and analyze the experimental results. The work has been carried out trough several phases, which are: characterization of the rock mass through geostructural surveys: this allowed us to classify the rock mass and determine the mechanical and physical parameters necessary for modeling; on-site measurement of stress levels through the application of over coring techniques; numerical analyses for the simulation of excavation phases, using the Examine3D (BEM) engineering analysis code. comparison between the measured stress levels and those numerically calculated and subsequent calibration of the BEM model; Numerical model of the forecasted excavation based on the calibrated (BEM) model.

May 1, 2009

By David Humphreys

It is difficult to overstate the importance of China to the future of the world mining and metals industries. In a remarkably short time, China has risen to become the world?s largest producer and consumer of steel and its second largest consumer of non-ferrous metals such as copper and aluminium. It is currently the world?s largest buyer of copper on international markets, the second largest buyer of iron ore, and the third largest buyer of alumina. At the same time, it is the world?s largest or second largest producer and exporter of tin, lead, zinc, magnesium and a host of minor metals and industrial minerals, as well as a fast-growing exporter of coal.

May 1, 2002

By David M. R. Stone

Underground mining in the gold industry is gaining popularity in Nevada, and with it the use of cemented rockfill is becoming mainstream. Even with today?s high metal prices, however, mining companies are very sensitive to the margins they realize, and are constantly looking for ways to reduce costs or improve efficiencies. Given that the backfill is one of the largest cost centers in underground mining, mines are constantly under pressure to reduce backfill costs. This paper will present an overview of the factors that impact cemented rockfill quality in Nevada mines based on the authors many years of consulting experience. Cemented rockfill quality can be linked directly to binder consumption, hence programs aimed at improving quality generally result in lower binder costs, better performance in the fill (hence less dilution), and improved safety. The paper will conclude with the key elements of a comprehensive program of backfill quality assessments and backfill QA programs. Comparative laboratory and minesite data from a number of operating and proposed mines will be presented.

May 1, 2007

By Gregg Hodges, Fred Schoenbrunn, Steve Slottee, Chad McCleary

"In December, 1999 Stillwater Mining Company (SMC) commissioned a new paste /cement backfill plant to supplement the existing sand backfill system for the cut and fill mining operation at it’s Nye, Montana mine. The new plant uses the Baker Process Deep Cone TM Paste Thickener to thicken the total concentrator tailings from 30% solids slurry to a 71% solids paste. This paper describes both general paste formation concepts and the evolution of the SMC paste plant operation from original design criteria, through problem solving and plant modifications, to the operation of the existing plant.Although the original process design was not effective for consistently producing and delivering acceptable paste to the stopes for backfill, SMC was able to make the mechanical and process modifications which allow the plant to now produce and deliver an acceptable product to the stopes. Ongoing test work is targeted at increasing the pumping range of the system, increasing the paste solids concentration from the Deep Cone Paste Thickener and reducing the operating and maintenance costs of the system.INTRODUCTIONThe authors would like to thank both Stillwater Mining Company (SMC) and Baker Process for their assistance in the preparation of this paper. Stillwater Mining Company chose not to participate directly in this paper due to time constraints, but was very helpful in answering questions concerning their approach to problem solving and specific details with regard to engineering criteria.This paper will begin with a general review of the technical and mechanical concepts in paste formation and then focus on the overall design, start-up and problem solving process for the paste backfill operation at SMC’s mine and concentrator near Nye, Montana."

Jan 1, 2001

By Joe Zhou

"Mineralogical characterization and metallurgical extraction of silver is challenging due to its complex mineralogy and chemistry. Over 200 Ag-bearing minerals have been identified and a silver-rich ore body would typically contain 5 to 10 different silver minerals. Silver can occur not only as discrete microscopic (visible) silver minerals but also as submicroscopic (invisible) silver in other minerals. During processing, silver may form passivation compounds such as silver hydroxide, silver sulphide, jarosite-like silver sulphate, silver halide or silver cyanide precipitate, all of which may negatively impact on silver extraction. Knowing the deportment of silver in the ore and its metallurgical products is important in flowsheet design and plant optimization. This paper begins with the classification of silver ores and minerals and a review of processing techniques, and focuses on the major mineralogical factors to explain why and how these factors affect silver extraction. Case studies are provided to demonstrate the application of silver process mineralogy in flowsheet design and plant optimization.INTRODUCTIONSilver was known to and utilized by mankind since ancient time. Actually, it was one of the earliest metals discovered and utilized by mankind after gold and copper.Silver is the whitest metallic element. It is rare, strong, corrosion resistant, and unaffected by moisture, vegetable acids, or alkalis. Silver is also resonant, moldable, malleable, and possesses the highest thermal and electric conductivity of any substance. The chemical symbol for silver is Ag, from the Latin argentum, which means white and shining. Although silver does not react with many chemicals, it does react with sulfur, which is always present in air at trace amounts. The reaction causes silver to tarnish, and consequently it must be polished periodically to retain its luster.Silver possesses many special physical characteristics and qualities that make it useful to a variety of industries. The photography industry is the biggest user of silver compounds. Silver forms the most light-sensitive halide salts, which are essential to developing highquality photographic prints. Silver also has the highest electrical conductivity per unit volume of any metal, including copper, so it is used extensively in electronics."

Jan 1, 2010

By Joe Pease

"The demand for minerals and metals is increasing. Head grades of ore bodies are dropping. Remaining ores are becoming finer grained, more complex, and more logistically challenging. Mineral processing – in particular comminution – already consumes a huge amount of energy. But in 20 years’ time, it will require about six times as much energy as today to meet the world’s mineral demand.Unless we do something different.As minerals professionals, it is our job to find that “something different”. The world is relying on us. Of course, we must look for new breakthrough technologies and techniques. We must find them, and we will find them – most likely in surprising areas.But what if we also already know how to make 30-50% improvements to efficiency? Just by using existing technologies, by applying modern analytical techniques, by custom designing our plants, by applying manufacturing principles, by breaking down our management silos between disciplines.The thing is, industry professionals already know this. Yet – in spite of a lot of intelligent people trying very hard – we just can’t seem to make it happen.This discussion considers why, despite our best efforts, we don’t get the best out of what we already have. Why we are wasting energy and money. Once we understand why, we can set about unlocking that value and improving industry productivity and energy efficiency. We will discuss the role that professionals and volunteer professional organisations like CMP and CEEC can play in catalysing the changes."

Jan 1, 2015

By J. R. Goode

Rare earth elements (REE) and their compounds are critical ingredients in numerous necessities of modern life including: the permanent magnets used in electric motors, generators, speaker and hard drives; high performance automobile tires; catalysts; phosphors; optical glass; etc. World production of REE in 2014 was about 110,000 t with about 98,000 t/a being “Light” (LREE) and the balance “Heavy” (HREE). Unlike other mined commodities, the majority of the LREE produced in the world is a by-product and that from a single iron ore mine in China. The balance of the LREE production comes from four REE-only mines, two in China, one in Australia and one in the USA (now on Care and Maintenance basis). The LREE operations comprise very unusual flotation processes and complex hydrometallurgical plants. In contrast, most of the HREE come from a multitude of small in-situ leach operations exploiting a single, dispersed deposit in China using hydrometallurgy alone. All of the current REE operations produce an intermediate mixed REE product that must be separated to yield the high purity, individual, REE required by the market. This paper describes the processes being used to produce LREE and HREE intermediate products and the separation plants used to make the high purity REE compounds that are key ingredients in the magnets in earbuds, turbines, and automobiles; catalysts used in the production of gasoline, and so on.

Jan 1, 2016

By K. D. Hester

"1.0 INTRODUCTIONThe uranium industry started in Canada with the reopening of the gravity concentrator at Eldorado's Port Radium mine in the North West Territories in 1942. In 1948, uranium exploration and processing was opened to the private sector, and the Federal government offered special pricing incentives to the industry. Eldorado explored the Lake Athabaska deposits in northern Saskatchewan, and in 1953 opened the Beaverlodge mine. Other mines in the area soon followed. In 1953 also, the deposits in the Blind River - Elliot Lake area and in the Bancroft area of Ontario were discovered. Mines and mills were quickly developed in these areas.Canadian uranium production peaked at 15,900 short tons of U3O8 in 1959. In that year, uranium exports at $300,000,000 exceeded those of all other minerals in value. On October 1, 1959, Canadian uranium operations employed 13,900 people.Up to 1956, it was a seller's market. By 1958, world production of uranium was far ahead of requirements. Accordingly, in November of 1959, the USAEC announced it would not renew it's options for continued delivery of uranium from Canadian mines. This led to the ""stretchout"" of existing uranium contracts, and many mines were shut down (see Table 1) .In the early 1970's, a commercial uranium market seemed to be developing. In Ontario, at Elliot Lake and Bancroft, mines reopened. But competition was coming from the Athabaska basin of Saskatchewan. Currently it is these high grade, open pit deposits of northern Saskatchewan which are in the forefront of Canadian uranium developments. Canadian developments since 1942 reflect the political and market forces, as well as metallurgical progress and changes in environmental standards. This paper attempts to show these process changes in broad perspective."

Jan 1, 1987

By W. D. Sinclair

"Between 1934 and 1956, nearly 31 million grams of gold were produced in the Matachewan area from deposits on properties belonging to Young-Davidson Mines Limited and Matachewan Consolidated Mines Limited. In 1979, production from these properties was renewed by Pamour Porcupine Mines Limited.Most of the gold produced has come from relatively lowgrade deposits (3.4 gl t or less) that occur in an east-trending belt of dykes and irregular bodies of trachytic syenite. Although small by comparison, these deposits have some of the characteristics of porphyry copper-molybdenum deposits. The mineralized syenite contains up to 5 per cent disseminated pyrite and is highly fractured and cut by quartz and quartzcarbonate veinlets. Gold occurs as native gold along fractures, in quartz veinlets and as minute inclusions in pyrite. Minor chalcopyrite and trace amounts of scheelite, molybdenite and galena are also present. Mineralization was accompanied by potassic alteration, consisting mainly of potassium feldspar.Some gold was also produced from small, but higher-grade, deposits in volcanic rocks. These deposits occur near the syenite-hosted deposits and consist of quartz veins and stringers mineralized .with pyrite and gold. Minor gold is present in some low-grade, porphyry-type copper-molybdenum occurrences and, locally, in large, isolated quartz veins.Lead isotope analyses suggest that the gold deposits were formed at about 2700 Ma and were locally remobilized at approximately 2400 Ma, following the Kenoran orogeny. The deposits appear to be genetically related to felsic magmas emplaced in an epizonal environment and deposited from hydrothermal solutions relatively concentrated in S and K20."

Jan 1, 1982

By D. Ouellet, G. Gagnon, B. Simser, V. Falmagne

The mining sequence at Noranda’s Bell- Allard mine calls for two mining fronts retreating toward a central pillar known as the Retreat Zone between pyramids A and C. It is clear from numerical modelling and rock mass characterization that the induced stress level in the pillar will exceed the rock mass capacity. A mining plan was developed including the redimensioning of stopes in the Retreat Zone, additional ground support and instrumentation in order to ensure the safety of the workforce and to maximize ore recovery while minimizing production delays. The mining strategy consists in allowing the rock mass to fracture and fail progressively while maintaining control of the existing openings with the appropriate support. A systematic analysis of rockbursting and caving hazards was conducted for all accesses and stopes in order to plan ground support and instrumentation needs.

Jan 1, 2004

By Wei Sun, Jaewon Choung, Zhenghe Xu, Zhangming Cui

"High intensity conditioning has been demonstrated in a number of cases to enhance fine particle flotation. The improvement could be attributed to the enhanced formation of particle aggregates. However, the understanding of aggregation mechanisms remains rather limited. Recently, an enhanced particle aggregation was observed by the formation of small air bubbles resulting from high intensity agitations (HIA). In this study, a novel visualization system is designed and constructed for characterizing the fine bubbles formed in an HIA cell. The new design allows determination of gas evolution and bubble size distribution. With this system, the effect of dissolved air on fine bubble generation by HIA is investigated. The results show that HIA creates a favorable environment for the formation of gas nuclei and small size bubbles due to hydrodynamic cavitation.INTRODUCTIONFlotation is a dominant separation technique employed by mineral industry to recover the valuable mineral particles. However, in general, particles finer than approximately 10 µm are not effectively recovered by conventional froth flotation technique due to their low inertia and high specific surface area (Fuerstenau, 1988). Therefore, the fine particle flotation has been considered as the central challenge of flotation research. Substantial advances have been made for fine particle flotation from both a theoretical and technological point of view (Fuerstenau et al., 1979; Song and Lu, 1990; Subrahmanyam and Forssberg, 1990; Sivamohan, 1990; Sedat and Barry, 1991; Matis, 1995). High intensity agitation (HIA), for example, has found some success to improve fine particle flotation kinetics in laboratory tests (Chen et al., 1999a and 1999b; Valderrama and Rubio, 1998; Rubio and De Brum, 1994).The effect of mechanical agitation on flotation kinetics has been recognized for many years. In mid-1970s, Warren (1975) reported that increasing the shear rate of the pulp could improve the efficiency of ultra fine particle flotation. He attributed this improvement in flotation to the formation of aggregates. This concept of aggregation has been extended by Rubio (1978), and Bulatovic and Salter (1989), who employed high intensity agitation (HIA) method to promote aggregation. They found that HIA with the addition of collectors, frothers and suitable modifiers significantly improved both the flotation recovery and selectivity of ultra fine sulphide minerals. The improvement was explained by warren’s shear flocculation theory. Till now, many studies (Chen et al., 1999a and 1999b; Valderrama and Rubio, 1998) have been undertaken to improve fine particle flotation by HIA. However, most of these studies were focused on the relation between energy input and flotation efficiency. Less information was available for describing how the aggregate formed during HIA process."

Jan 1, 2006

By Euler De Souza

This paper presents a study conducted to assess sillmat behaviour during undercut mining and to provide a comprehensive understanding of the effects of arching and sillmat thickness on stability. The design study investigated the effects of such parameters as stope width and height, closure strains, orebody geometry and inclination, wall roughness, fill properties and cure time on the stability of cemented sillmat during undercut mining. Arching effects have been quantified based on centrifuge modeling studies for the different mining conditions. Observations have indicated that the degree of arching is a function of stope geometry, wall roughness, fill cohesion, and wall closure. Arching effects increased with decreasing stope width, increasing backfill cohesion and frictional resistance, increasing wall roughness and with wall closure.

May 1, 2002

By David R. Macedon

"Through the years, a wide variety of dust control methods have been utilized at mineral processing operations. While some have been successful, many have been highly ineffective. Dust Control systems currently in use include baghouse systems, fog systems, surfactant spray systems, and foam dust suppression. While baghouse systems can be effective, they are capitalintensive and costly to operate and maintain. Chemical dust control programs can be very effective. However, if applied incorrectly, they can have detrimental effect on mineral recovery. Thus, many operations utilize a combination of baghouses and water, often with limited success.Recent advancements in surfactant and polymer chemistry have resulted in substantially improved chemical dust suppression programs. These products range from non-corrosive surfactant/humectant combinations for road dust control to foam-based systems for crushers and transfer points, to advanced polymers for pile binding and soil stabilization. These advances are discussed in detail, citing results from fieldwork in the precious and base metals industries.INTRODUCTIONThe global nature of the mineral processing industry presents a unique set of challenges. Traditional thinking would tell us what works in one place should work in another. This could not be further from the truth in the area of dust control. We learn very quickly that there are a number of factors that can affect the efficiency and success of a dust control program and that these factors are not all chemical or equipment related. Some of these factors include facility maintenance, product selection, water quality and characteristics, and economic considerations.What has been learned from past experience is that each mineral processing plant presents a unique set of factors that will affect the ability to create an optimal dust control program. This paper presents a myriad of treatment options that will highlight the advancements in chemical dust suppression products and equipment."

Jan 1, 2004

By W. W. Culver

The paper explores the substance, circumstances and significance of the Whelpley and Storer Copper Process. The 1866 Whelpley and Storer patent specified a process combining mechanical and chemical engineering. The process called for a down-drafting shaft furnace with a horizontal flue connected at the bottom of the shaft. Powdered sulphide ore was roasted in the shaft and then sent forward fully oxidized to a bath of sulphuric acid and/or calcium chloride. The “water furnace” was developed in Boston, at a time when the city was home to most Michigan copper mining companies. The process was field-tested at Quebec’s Harvey Hill copper mine. In 1865 James Douglas, Jr. took over management of the Harvey Hill mine with the challenge of saving the family investment. He needed a way to make money from low-grade sulphides. Through his relationship with chemist T. Sterry Hunt, Douglas learned of a possible way ahead using the process developed by Whelpley and Storer. The paper confirms the centrality of publications, meetings, and networking in the advancement of metallurgy. The process is of interest historically, as much as anything, because it is one of the pillars of James Douglas’ distinguished career in copper. INTRODUCTION At the 1866 meeting of the American Association for the Advancement of Science (AAAS) in Buffalo, New York, T. Sterry Hunt (1826–1892) read a paper “On the Metallurgical System of Messrs. Whelpley and Storer.” The paper is part of a chain of events that constitute the foundation of James Douglas’ (1837–1918) success in the copper mining industry. To understand the career of Douglas over the early years of modern copper mining, we must necessarily start with Whelpley and Storer. Going back to Hunt’s paper, he concluded his remarks by asserting that the Whelpley and Storer Process was “capable of such wide and varied application, that it is probably destined to have a very important influence on the industry of the world” (Hunt, 1867a). He reached this conclusion reasoning that the process had overcome a critical metallurgical hurdle (Hunt, 1867a). Hunt, a geo-chemist in modern terms, recalled that the chemist of those years easily separated copper from “sulphuretted” ores by converting it to a soluble salt from which pure metal was precipitated by “an equivalent of iron.” The problem was to “…apply this principle in the working of copper ores on a great scale...” (Hunt, 1867a). Hunt noted that this very problem had “…engaged the attention of many metallurgists, and has given rise to various processes for obtaining copper by the moist way, many of which are nearly or quite perfect in their operation, but are lacking in practicability and cheapness” (Hunt, 1867a). Hunt thought Whelpley and Storer had overcome the low-grade sulphide hurdle with a commercially viable engineering breakthrough. Yet in the history of copper metallurgy, the process is missing. What happened?

Jan 1, 2019

By H. Ewaschuk

"INTRODUCTIONRio Algom's Stanleigh Mill in Elliot Lake began production in June of 1983. The highly instrumented mill treats uranium ore at an average rate of 3900 metric tons per day. To help ensure a good start-up and low operating costs, an extensive training program was undertaken prior to and during start-up. This presentation describes how an unconventional operating crew were combined to form an operating unit with a high efficiency in terms of production and labour utilization. I would like to point out at the outset that the operating philosophy, and the role of the supervisors and the operators as set up at Stanleigh is not unique. Indeed, I have seen the same results at a couple of small plants where efficiency meant survival. However, these situations appeared to be the exception, and it was not readily apparent how similar results could be obtained in a larger plant. A factor that existed at the time was low labour turnover. As in most parts of Canada, jobs were easy to get in the Elliot Lake camp in the late 1970's. This, and other factors, contributed to an unusually high labour turnover. This changed dramatically in the early 1980's. Indeed, Rio's two other operating mills, Quirke and Panel reduced crew sizes at this time to reduce operating costs. As a result all of Stanleigh's operators came from Quirke and Panel with experience varying from 4 to 7 years. The experience that operators had was obviously of benefit and served to reduce the scope of the training program from what would have been required with inexperienced personnel."

Jan 1, 1985

Conventional waste management practices produce two waste streams for the construction of separate disposal facilities. The design of tailings impoundments is usually controlled by physical stability. Waste rock materials offer high shear strength characteristics for waste dump construction, however the hydraulic properties promote oxidation. The problem of oxidation is significantly reduced for tailings due to a fine texture that augments water saturation. Co-mixing of tailings and waste rock involves the intimate blending of tailings and waste rock to create a new material with superior physical and hydraulic properties. The new material has a low hydraulic conductivity, low compressibility, high water retention capacity and high shear strength. Co-mixed tailings and waste rock restrict oxygen entry and water seepage to minimize acid generation and metal leaching. Co-mixed tailings and waste rock may be used to construct cover systems, internal barriers and seals, confinement structures and full depth waste repository. The results of a laboratory program to characterize the physical and hydraulic properties of Comix tailings and waste rock are presented here. Various ratios of tailings were blended with three distinct waste rock materials. The saturated hydraulic conductivity for the Co-mixed materials was found to vary between 2 x 10-7 m/s and 5 x 10-8 m/s depending on blend ratio, waste rock type and compaction. This paper introduces concepts for the co-disposal of tailings with waste rock and evaluates the hydraulic behaviour of a Co-Mix waste system. The potential benefits of Co-Mix are shown for a typical mine.

Nov 1, 2002

By R. N. Chakravorty

Early detection of spontaneous combustion is of utmost importance in underground coal mining to prevent major disruptions of production and to ensure a safer working environment. This paper presents the work done in developing a suitable system for the early detection of heating in a hydraulic coal mine. Laboratory studies on the products of oxidation for Balmer 10 seam coal showed that a significant amount of carbon monoxide is produced during the early stages of heating and that detection methods based on the analysis of other gases, such as hydrogen, ethane or ethylene, are not a better alternative for this coal. The four-point carbon monoxide monitoring system recently installed at the hydraulic mine is discussed in this paper. It is believed that by studying the trend of carbon monoxide concentration in the mine air, it will be possible to detect heating at an early stage. Field tests carried out so far have indicated that infra-red technology will prove to be a powerful tool in the hydraulic mine, particularly for locating hidden oxidation or fire in cracks, fissures, underground workings and coal outcrop areas before it spreads extensively. The project is jointly sponsored by EMR, CANMET, Mining Research Laboratories and Kaiser Resources Ltd.

Jan 1, 1978

By S. Dessureault, J. Porter, M. Woodhall

Information and communication technology (ICT) is seen as a key source of future productivity improvements in mines. The information technology infrastructure (ITI) necessary to achieve these productivity improvements will come in the form of data integrated from multiple source systems throughout the mining value chain. Two pure approaches are available: supplier-controlled or operations controlled data structures; each strategy has its own advantages and disadvantages. Case studies involving the South African mining industry are used to demonstrate the advantages of using hybrid-controlled data structures. Depending on the level of operational control, new skills are also necessary to be learnt by mining professionals including: information engineering; creating consistent and quality data; and process improvement techniques that use the integrated data for improving the operation.

Jan 1, 2004

By Emmanuel Henry

Few industries are more challenged by technical, political and market uncertainty than the mineral industry. Technical uncertainty in mining projects concerns the volume and quality of the resource, the processing and metallurgical parameters, the production efficiency, etc. Political uncertainty can take diverse forms and includes possibilities of change in the taxation system, risk of expropriation and risk of social instability or war. Market uncertainty depends on the market structure of the commodity; price and demand volatilities are the most common sources of market uncertainty. Intensive feasibility studies including these uncertainties and risks are required before investing up to billions of dollars in the development of a new mine. Current feasibility studies are often based on a single (or very few) mean geological scenario and simplified price profiles along the life of the project. Yet, strategic decisions, for example, the level of investment in exploration and metallurgical studies, adoption of a flexible, but more costly, mine design and risk-sharing strategies are made at an early stage. Over the last twenty years, Real Option theory has emerged as a unifying framework enabling strategic planning under uncertainty (technical, political and market). Geological and market variances (second order statistics) are pivotal for proper uncertainty quantification. The present study explores the possible benefits of combining modern geostatistical tools and financial techniques for project management. More precisely, the following questions are examined: Is geological uncertainty really an issue? Can we combine geological and price uncertainties in a unifying Real Option framework? A simple example aimed at illustrating the concepts involved is presented.

May 1, 2003