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By A. J. Richardson

Before the development of the underground stoping and mining costs can be considered, certain facts about the ore body, the proposed mine, markets, etc., must be known or determined. In the case to be studied, the zinc-lead mineralization occurred with a narrow vertically dipping structure of undetermined length and vertical extent. Exploration completed to date has revealed 6.5 mil¬lion st t of proven reserves. A further 820,000 st of in¬dicated reserves has been outlined and this tonnage is considered capable of being expanded by a factor of approximately four after more detailed drilling. After studying the market conditions and completing a very preliminary feasibility study, it was decided that production would be 730,000 stpy (or 2000 stpd) of ore. First year production would be at the rate of 1500 stpd. The main design criteria for the selection of the min¬ing methods are minimizing surface subsidence, maxi¬mum recovery of the ore body, maximum degree of grade control, maximum productivity, and safe working conditions. Two basic extraction systems are considered capable of meeting these requirements: mechanized cut¬and-fill stoping and sublevel long-hole stoping with filling. The primary development system of the mine has been designed to give maximum flexibility in stoping systems and layout and to permit changes if considered necessary as a consequence of actual production ex¬perience. At the present time, access to the mine is by a circu¬lar concrete lined vertical shaft, 16 ft diam, sunk to a depth of 1380 ft. Two exploration levels have been driven within the ore zone at depths of 165 and 1246 ft below the surface outcrop. The development to date had the objective of sampling the mineralization and produc¬ing detailed information on the outline of the ore body and the distribution and controls of zinc and lead values. In an attempt to satisfy the basic design criteria for the mine, it was decided that production would be best achieved by a combination of 40% sublevel long-hole stoping and 60% cut-and-fill mining. Costs of exploration and capital development of per¬manent underground facilities are normally written off over the life of a mine. Production expenditures, on the other hand, are of a temporary nature and are normally charged as and when incurred as an operating expense. Reasonably accurate predictions of mine production costs can be built up from engineering design and estimates of individual mine activities for ultimate inclusion in the comprehen¬sive data required for financial decision making. The simulated operations can be costed on a detailed basis in the form of a monthly operating budget. The budget format can be generalized or detailed, depending upon the scope of the project. However, ex¬perience suggests that a fairly detailed format has the advantage of assuring that all significant cost items are included. For underground costing it is suggested that the budget structure include five major cost centers (i.e. development, diamond drilling, ore extraction, hoisting/ transportation, and general mine expense). These in turn are detailed under numerous subheadings. The mechanism for compiling an operating budget will be illustrated. Because of its relative simplicity, ore extraction under sublevel long-hole stoping has been chosen for illustration. All other activities, simple or complex, can be estimated in similar fashion. BLOCK AND STOPE DEVELOPMENT Long-hole blocks, used where advantageous, will be up to 250 ft in height, depending upon the vertical con¬tinuity of the mineralization, and approximately 300 ft long. Drawpoints will be at 36-ft intervals and serviced by loading crosscuts driven from a footwall drift parallel to and close to the ore zone. Pillars between the stopes will be 50 ft wide. Stopes will be drilled off with vertical rings of blastholes drilled from sublevels approximately 60 ft apart vertically. This drilling will be done by percussion drilling machines (31/2 in.) mounted on a trackless drilling rig. Load¬haul-dump (LHD) equipment will be used to move broken ore from the drawpoints to the orepass connecting to rail haulage systems. On completion, long-hole stopes will be backfilled to prevent caving and to facili¬tate later pillar removal. From a planned stope layout, a forecast of produc¬tion and development is made in Table 1. Table 1. Block Tonnage and Stope Development Quantity Ore Waste Total ore block 375,000 st 2 stopes 310,000 st 1 pillar 65,000 st Access crosscuts, 4 at 100 ft 400 ft Drill sublevel drifts, 6 at 300 ft 1800 ft Stope raises, 3 at 250 ft 750 ft Undercut sublevel drifts, 2 at 300 ft 600 ft Loadout crosscuts at 35-ft intervals 550 ft 100 ft 3300 ft 500 ft Total development footage 3800 ft Tons per ft of development 987 st

Jan 1, 1982

By James E. Breland

Society's growing concern over the number of deaths and serious injuries occurring in coal mines, coupled with a growing sentiment to develop and promulgate improved mandatory health or safety standards, was no doubt the basis for passage by Congress of the Federal Coal Mine Health and Safety Act of 1969, being Public Law 91-173 approved December 30, 1969. Even prior to passage of the Act, strong reaction was quick to arise concerning the effect of such legislation upon the coal mining industry. Initial response varied from mild forms of criticism to' the expressed fear of complete suspension of operations and mine closings. Primarily responsible for these early forms of skepticism were speculative or fanciful cost estimates which led operators to contemplate a less than prosperous existence. However, in spite of this unfavorable outlook, the majority of the operators have faced up to the situation and have been striving to comply with the Act and the regulations issued thereunder. While encouraging strides have been made toward implementation of the Act, it must be recognized that noticeable results have been attained only through many months of determined effort and, as anticipated, at quite heavy expense to the operator.

Jan 1, 1973

By Bruno C. Boik

INTRODUCTION Cost Management is the evaluation and control of project scope, budgets, and costs with the objective to minimize costs and maximize the benefits to be derived from the use of project resources in conformance with Criteria stipulated or approved by the Owner. In order of importance, Cost Management is one of the most prominent Project Management functions because of its impact on the financial success of the venture. Cost Control and Cost Accounting are essential parts of Cost Management. The principal objectives of Cost Control are to monitor project commitments and expenditures, and measure performance for the detection of variances from acceptable standards and from control budgets so that timely action can be initiated to minimize costs. Cost Control is evaluation of current costs and projection of future costs, rather than the reporting of actual costs. Cost Control is not Cost Accounting. The primary objectives of Cost Accounting are the determination, classification, analysis and reporting in useful detail of actual costs. Following are some considerations on Cost Management and Cost Control as practiced by Owners and Contractors of industrial projects, Mining and Metallurgical projects in particular. COST MANAGEMENT Functions Conforming with the requirements of Owner's Criteria, the principal Cost Management functions are to • evaluate estimates of project costs and establish budgets for a scope of work and schedule; conversely, evaluate the scope of work that can be executed most effectively within a budget and schedule. • promote investigations and comparative evaluations of alternate designs and plans to find the most cost effective way to execute a project and minimize its operating costs. • based on Cost Control and Cost Accounting input, evaluate and initiate appropriate actions to correct deviations from approved budgets. assess project economics, the effect of changes on project economics and, if necessary, revise Project Criteria to modify their impact on costs.

Jan 1, 1986

By V. O. Tenorio, A. M. Sanzana

"INTRODUCTION This report summarizes a research about mines which are transitioning from surface to underground mines. It is a guide to make strategic decision in these increasing amount of mines. Capital and operating costs are linked with major strategic decisions in the exploitation of an ore body. This is the reason to analyze costs related to this transitioning world trend. There are multiple reasons for transitioning from Open-Pit (OP) to Underground (UG) mining. The primary economic incentive for going UG is that the cost per unit of ore from OP mining eventually exceeds that from UG extraction. This is due to the excessive amount of waste that must be extracted when the depth of the pit increases. In addition, the reduced footprint of UG operations contributes to diminish the environmental impact on the surface. Furthermore, it becomes more difficult to find new, easily accessible ore deposits. Then, a cost model helps to guide strategic decisions in the transition from OP-to-UG mines. Objectives • Propose a methodology to guide strategic decisions in the transition from OP to UG mining. • Create an integrated cost model based on existing OP and UG individual cases. • Identify and characterize a group of mines transitioning from OP to UG. • Analyze operating and capital costs of a particular transitioning from OP to UG mine. MAIN CONCEPTS Open Pit Mining (OP) The main decisions in OP mines are: Cut-off grade, Stripping Ratio (SR), equipment size, stockpiling, pushback sequencing and processing capacity. The stripping ratio is measured as the tonnage of waste required to be removed to reach and extract one tonne of ore. The material extracted from an OP exploitation can be classified as waste and ore. This classification depends on the cut-off grade. The cut-off grade indicates the minimum amount of material with economic value in a block. The waste from the mine is going to the waste dump and the ore is going to stockpiles where will be store and then going to the processing plant (leaching or concentrator). The waste of this process is going to the tailing pond big pools. And the product is sell in the market. Another important issue is the mining capacity which is going to define the investment in mining equipment. Underground Mining (UG) The first decision to be made in order to open an underground mine is selecting the mining method. Caving methods are the more productive and have lower operating costs. There are three caving methods: Block Caving (BC), Panel Caving (BC) and Sublevel Caving (BC). The access development could be an horizontal adit or a straight or downspiral decline. A shaft could be used for inclined or vertical access. Other key issues are: equipment capacity, cut-off grade and production sequencing."

Jan 1, 2016

By D. W. Alexander

Mine fires, explosions, spontaneous heating and inundations are among the leading causes of catastrophes (unplanned, temporary sealing and recovery of major mines). Many reports are available that detail company efforts to re-establish mining operations and agency efforts to regulate away the causes, but the associated costs are rarely included. The increasing scale of coal operations concentrates earning potential and the financial risk of business interruption in fewer locations. Underground coal mine catastrophes are low probability, high loss events that happen nearly every year. This paper will present an evaluation of coal mine catastrophes from case studies.

Jan 1, 2003

By L. B. Rothfeld, R. L. Dolzani

This paper presents preliminary results of a US Bureau of Mines (USBM) study of potential costs of compliance with possible federal regulations for copper heap and dump leaching. The regulations could arise under amendments to the Resource Conservation and Recovery Act (RCRA) and/or the General Mining Law. Estimates are given for the cost of compliance with possible technology standards that would require the use of liners and closure caps regardless of terrain and underlying geology and hydrology. This cost is compared to the cost of compliance with 1992 state requirements for terrains typical of those found at existing copper leach sites in the southwestern United States. Incremental compliance costs are found to widely exceed screening criteria used by the US Environmental Protection Agency (EPA) to denote significant economic impact.

Jan 1, 1995

By L. B. Rothfeld

This paper presents preliminary results of a Bureau of Mines study of potential costs of compliance with the federal Resource Conservation and Recovery Act for copper heap and dump leaching. Specifically, estimates are given for the cost of compliance with possible technology standards that would require the use of liners and closure caps regardless of terrain and underlying geology and hydrology. This cost is compared to the co lit of compliance with present state requirements for terrain a typical of those found at existing copper leach sites in the Southwestern U.S.A. Incremental compliance costs are found to widely exceed screening criteria used by the Environmental Protection Agency to denote significant economic impact.

Jan 1, 1993

By L. B. Rothfeld

In anticipation of RCRA reauthorization and subsequent rulemakings, the Bureau of Mines is studying potential economic impacts of RCRA on mining. For U.S. copper heap and dump leaching operations in a variety of terrains, the cost of liners and closure caps to comply with RCRA Subtitle D ranges from $55 million to $158 million per site, or about $500,000 per hectare ($200,000 per acre). If RCRA technology requirements and financial assurance had been required on current operations, 27 to 100% of production from heap and dump leaching would have been non-competitive at market prices between $2,310 and $1,650 per metric ton ($1.047 and $0.75 per pound) copper. This result is based on an analysis that considers return on capital, corporate overhead, marketing, and freight costs as well as operating and maintenance costs at the mine. Over the same price range, economic analysis using the IMPLAN input-output model on one-or two-county regions indicates potential net job losses of about 570 to 2,700 jobs. Total economic output of those counties could be reduced by about $180 million to $360 million.

Jan 1, 1994

By Jr. Lownie

Estimates of the cost of producing any commodity generally fall into several classes depending upon the motives and needs of the estimator. There are estimates intended to show how low costs might be with favorable conditions if everything goes well. At the other extreme, there are estimates which show how high costs might be if troubles develop. The estimates in this paper for the cost of producing direct reduced iron (DRI) are accompanied by discussion to point out how the final figures may be adjusted in either a promotional or a conservative direction. Because we do not have a specific process and a particular set of conditions in mind when discussing this subject today, this paper deals with the general situation, with considerable attention to how the estimates can be made more specific once one knows the particulars of a given situation.

Jan 1, 1978

By P. E. Sperry, J. M. Duncan

INTRODUCTION The purpose of the report on which this paper is based is (1) to evaluate the potential for cost reduction of urban mass transit tunnels by use of alternative materials transport systems during the tunneling process, and (2) to identify research and development program elements to assure that the materials transport system will not become the limiting factor for the rate of excavation. The approach taken was: Review the state of the art of urban tunneling by extensive interviews with representatives of tunnel contractors, equipment manufacturers, government agencies and consultants, and by review of recent literature.

Jan 1, 1979

By Robert B. Scott

Acid mine drainage, discharging from coal beds, has polluted our streams and rivers since early time. These pollutants affect water quality by lowering the pH, reducing natural alkalinity, increasing total hardness, and adding undesirable amounts of iron, manganese, aluminum and sulfates, The tangible damages are the costs involved in replacing equipment corroded by the acid water, additional treatment costs at municipal and industrial water treatment plants, and damages resulting from corrosion of steel culverts, bridge piers, locks, boat hulls, steel barges, pumps, and condensers. Intangible damages, which are real and important, include destruction of biological life of the stream, reduced property values, and streams rendered undesirable for recreational uses.1 The major problems of mine drainage occur in the anthracite and bituminous coal regions in Appalachia. However, many of the western mining states have significant mine drainage problems in specific areas, but the overall problem is not as great as in the eastern states.

Jan 1, 1970

By J. A. Herbst, A. E. Oblad, Y. C. Lo

The major cost in comminution is energy consumption, which can be as high as 50% of the operating cost. Improvements in plant operations have resulted in up to a 15% reduction in energy usage (kw-hr/t). These improvements have been made through the optimization of grinding efficiency and the use of expert model-based control systems. Optimization involves the determination of the levels of the critical-operating conditions that result in the most efficient breakage of ore in the mill. These optimal levels are identified through plant/laboratory test work and through computer simulation using advanced process models. Model-based expert control achieves the maximum performance from the grinding circuit by identifying the characteristics of the ore in the mill with an optimal on-line estimator. Using this information, the control system dynamically determines the operating point that will yield the optimal performance. Two industrial applications of grinding-circuit optimization and model-based control are presented to demonstrate the power of this new technology.

Jan 1, 1997

By V. C. Lo

The major cost in comminution is energy consumption, which can be as high as 50 percent of the operating cost. Improvements in plant operations have resulted in up to a 15-percent reduction in energy usage (kwh/t). These improvements have been made through optimization of grinding efficiency and use of expert model-based control systems. Optimization involves the determination of the levels of the critical operating conditions that result in the most efficient breakage of ore in the mill. These optimal levels are identified through plant/laboratory testwork and computer simulation using advanced process models. Model-based expert control achieves the maximum performance from the grinding circuit by identifying the characteristics of the ore in the mill with an optimal on-line estimator. Using this information, the control system dynamically determines the operating point that will yield the optimal performance. Two industrial applications of grinding circuit optimization and model-based control are presented to demonstrate the power of this new technology.

Jan 1, 1995

By A. Anani

The goal of hot mix asphalt (HMA) design is optimal material blending to meet Superpave specifications. HMA cost minimization has being modeled as linear programing (LP) (Awuah-Offei et al 2011) and mixed integer LP problems (Brown et al, 2012) and solved with commercial software such as LINDO and CPLEX. Often these software, which are designed to solve general optimization problems, have licenses that cost thousands of dollars. The objective of this study is to develop a novel solution algorithm to the HMA optimization problem presented by Brown et al. (2012), which will negate the need for expensive commercial packages and is specific to this problem. This novel algorithm is based on the branch and bound algorithm for solving mixed integer problems. The algorithm is incorporated into a software package with an easy-to-use graphical user interface. The developed algorithm is validated using a real-life HMA problem. Using this solution algorithm will save companies thousands of dollars, otherwise used to purchase software licenses.

Feb 23, 2014

By Malcolm Wills

Boddington Gold Mine commenced operation in 1987 with an initial production of 3.0 Mt/y at a grade of 3.5 git. Head grade has reduced over the life of the mine and the major response to the drop in grade has been to increase mining rates and increase plant throughput. A capital expansion was carried out in 1996 increasing the throughput to 6.0 Mt/y and since that date tonnage has been increased without major capital expenditure. BGM's current mill throughput is 8.77 Mt/y ( 1999). In 1999 the combined basement plant and direct leach plant processed 8,770,055 tonnes to produce 233,507 ozs or 7.262882 tonnes of gold at an average head grade of 0.83 git. With grades of 0.83 git, and gold price at record lows, $US251.95loz in August 1999 or $A393.67loz it has been necessary to make and maintain major cost savings to remain profitable. Boddington Gold Mine has achieved this by a number of steps including a productivity study by outside consultants.

Jan 1, 2000

By Michael Drozd

The operation of an activated charcoal system has five separate unit operations. These unit operations have common points for CIP, CIL and CIS system, which vary widely in application. a. Absorption b. Desorption (Stripping) c. Acid Washing d. Reactivation e. Carbon Handling ( carbon transportation, sizing, de­watering, etc.) Cost optimization starts with the basic operating parameters (design philosophy) set down at the time of engineering design. This parameters undergo almost immediate change due to site specific ore requirements, throughput changes, operator requirements or reagent availability. Activated charcoal is sometimes viewed as simple, uncomplicated reagent that requires not optimization. To some extent, this statement is true, but under most circumstances, if the time necessary to optimize the use of activated charcoal is available, the effort is rewarded with significant savings. CPL-Carbon Link has embarked upon a program of supplying technical support with its activated charcoal. Several operation in the United States have under taken to have CPL-Carbon Link do an operational survey to determine if potential savings are possible. CPL-Carbon Link has offered to do these surveys for projects that are clients or simply would like to have CPL-Carbon Link review their operation. The information accumulated by CPL-Carbon Link is being used to attempt to fashion industry standards so that a common reference point came be establish for activated charcoal usage.

Jan 1, 2000

By C. Milne, T. M. Dyhr, T. E. Wilson

As time progresses, new concerns regarding long-term post-mining effects are identified, increasing mine closure costs. Regulators responding to public interest must take a “worst case” view and require post-closure monitoring or remediation processes. Although closure costs depend on the size and type of operation, general cost categories are defined, and median values (per acre, or per unit of production) are identified. Closure cost categories, as well as amounts, have increased with time. Except for increased efficiency in earth-moving and water management (surface or subsurface), there are no apparent offsets to a steady rise in closure costs. When the historical trend of closure costs is considered, it is probable that additional cost categories will come into being. For mine operators, the challenge will be to anticipate them and devise cost-effective remedies.

Jan 1, 2003

By T. M. Dyhr, T. E. Wilson

Although environmental management costs during mine operation depend on the size, type, climatic and geochemical conditions of operation, general cost categories are identified and mean values, as a percentage of total operating cost, are determined for coal and non-coal surface and underground mines (medium-size) with on-site beneficiation and tailings disposal facilities. Cost trends are charted from 1963 through the present.

Jan 1, 2004

By Joseph A. Dos Santos

"The subject of this writing was first published in 1998 with the emphasis on the hardware cost comparison. Other costs, such as the required land area and spatial volume, were mentioned but not emphasized, as these were not deemed as important for new projects where the space was appropriated as required. During the last decade, these other costs have proven to be more than equal in importance. These costs are emphasized here through specific accounts of actual highangle conveyor installations that demonstrate the importance and the high-angle advantage An update on the progress in sandwich belt highangleconveyor technology is also provided.Origin and progress in sandwich belt conveyorsCover belts of the 1950s. Large volume, highangle conveying by “conveyors with cover belt, dates back to the early 1950s, when such systems were employed at the bucket wheel excavator boom conveyor in German lignite mines to increase the depth of cut without increasing the boom length. Various systems were developed, patented and built. These systems were not a lasting success for various reasons, which are noted by Rasper[1]. In his 1958 “Review of Cover Belt Systems,” Rasper summarizes the characteristics which are worth pursing and those that should be abandoned. The former are akin to good conveyor engineering. The sandwich belt conveyor model. The first sandwich belt conveyor model allowed calculation of the required hugging pressure to develop the bulk material’s internal friction and preclude material slideback. A modern, accurate version of the sandwich belt conveyor model is presented in Fig. 1. This model depicts accurately a derating of the material cross-section allowing an ample belt edge distance that can tolerate normal belt misalignment without material spillage. The calculations must thus recognize that only part of the hugging pressure is imparted onto the material with the remainder transferred belt edge to belt edge affecting a material seal. Mathematical development of the sandwich belt model is covered by Dos Santos and Frizzell in their 1983 article, “Evolution of Sandwich Belt High Angle Conveyors.”"

Sep 1, 2016

By Suresh K. Bhatt

A mathematically simulated modeling technique is used in this U.S. Bureau of Mines paper to represent a hypothetical mining operation with existing mining technology and prevalent mining costs. Mining scenarios are prepared and evaluated for potential benefits and costs available through computer-assisted mining. Base criteria, parameters, and methodology are described.

Jan 1, 1991