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By M McCarthy

Over the last six years Mandalay Resources has increased production rates and improved safety outcomes at its Costerfield mine in Victoria, Australia. This mine is an underground operation utilising narrow mining techniques to extract vertical veins, and produces up to 80 000 equivalent ounces of gold per annum, in both gold and antimony value.The operational challenges of narrow vein mining include controlling overbreak when veins being mined are only 300 mm wide. The mine has developed methods and modified equipment to suit extraction of these veins. Productivity improvements over the period have involved development of a stoping method and equipment to suit 1.8 m wide development drives. Over the last five years and during a skills shortage, recruitment, training and retention of personnel has been key to keeping corporate knowledge and skills to execute a careful efficient mining technique to minimise overbreak.Managing an underground operation close to nearby residents has unique challenges. Historically Victorian residents had family members work as underground miners; however, in the current day with few underground operations in this jurisdiction, community knowledge of mining has decreased. The Costerfield Operations are only 100 m from the nearest residence and the company values community engagement, partnership and investment with local Heathcote organisations.The mine has invested substantially in executive coaching of its leadership team early, which has paid dividends in problem solving potential of that team and ensuring the operation delivers on its promises to all stakeholders. The operation has become safer and employees are now more aware of their individual contribution in producing safe, efficient gold and antimony that benefit the whole operation, community and the region.CITATION:McCarthy, M, 2016. Costerfield – a narrow vein case study, in Proceedings International Mine Management Conference, pp 331-338 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jun 22, 2016

Many mining operations are uncertain of what costs they should be achieving. The majority of cost estimates are based on historical costs that have added contingency factors. Historical costs are a valuable source of information but a more precise costing method is necessary. There are several alternative methods for predicting costs. A methodology which provides the best indication of the achievable costs is one using a standard inventory list and a bill of quantities. The model is termed a Basic Principles model and addresses basic design principles and engineering constraints.

Jan 1, 1990

By Luis Vargas

A diferencia de lo que ocurre con los precios de la mayoría de los productos, los precios de las materias primas en general no se corresponden a corto plazo con sus costos de producción. En ese sentido, el presente texto señala la influencia de los costos de producción sobre el nivel de los precios a largo plazo a través de dos formas: en el caso de las minas de producción, cuando los precios son muy bajos y no guardan relación con los costos, las menos competitivas se ven obligadas a cerrar y en las de costo medio a postergar sus proyectos de exploración y desarrollo, ocasionándose muchas veces una disminución en la vida de las minas.

Sep 1, 1977

Table XXXIII itemizes the cost associated with the installation of an irrigation system and the application of latex and water in the three experimental areas at Lanse. There were no external labor charges (non- Research Center) except for the installation of the water meter. Cost of pipe and fitting are high because long lines were required at each of the three different locations; these costs were minimized by using plastic instead of metal pipe. Fifteen of the seventeen drums of latex received were used, five drums for each area. [ ] In tank-car lots latex would cost about $0.25/lb so that raw material cost for a 4000 lb/acre application would be in the range of $1,000 per acre. Equipment costs for setting up and irrigation are sensitive to size of area to be irrigated, design of system, and availability and cost of water. A realistic range is estimated to be between $200-500/acre.

Jan 1, 1972

By T. Bruce, R. C. A. Minnitt

Mining operations are generally reluctant to install high-cost sampling systems at operations that have been functioning for many years. The principal objection to installing appropriate equipment to extract correct and representative samples in process flows is the time and costs involved. The Theory of Sampling (TOS) provides a structured framework for identifying and quantifying the errors and bias associated with any sampling event, but this may be insufficient to initiate substantial investment in correctly designed sampling equipment. Financial losses arising from substandard sampling installations are usually disregarded because the value-add from a good quality sampling solution is invisible, but the cost is quite obvious. Depending on the needs, a less-than-perfect or fit-for-purpose sampling solution may be acceptable, provided the magnitude of sampling errors is understood and the assay results are interpreted accordingly. Categorical levels of acceptable accuracy and precision can be established depending on the sampling position in the mining value chain and the nature of the decisions to be made. The objective benefits of proposed fit-for-purpose sampling solutions should be presented to relevant decision-makers in such a way that adverse subjective decisions are countered so that appropriate solutions are implemented. Practical examples of the benefits from motivating the implementation of fit for purpose sampling solutions at sampling facilities around the world are provided.

Jul 2, 2022

By S. M. Bishoff

The disturbance of surface land to support the underground mining of coal requires several hundred acres to produce easily in excess of $1 billion in sales at a moderately sized mine over 20-30 years. Due to the recent influx of environmental legislation, these surface operations must now undergo complete reclamation upon permanent cessation of production. This reclamation procedure has become so complex that the cost of reclamation must be a major consideration in the design of a new mine. This presentation will discuss these costs as they may be methodically evaluated and surcharged as a percentage of the product price. When placed in the proper, logical perspective, it is anticipated that the obstacles involved in this process may be minimized.

Jan 1, 1985

By Steven M. Bishoff

The reclamation of surface land areas disturbed during the course of coal recovery became a major, universal consideration upon the implementation of the Surface Mining Control and Reclamation Act of 1977. This legislation not only established reclamation as an absolute requirement, but also presented guidelines for reclamation standards and required bond-posting procedures to assure completion of the reclamation process. The Office of Surface Mining was established to enforce the provisions of the Congressional mandate by promulgating specifically detailed regulations and supervising the State participation in this regulatory process. The major operational consequences of the reclamation-related provisions of the Act and the OSM regulations are the increased costs and complex procedures necessary to accommodate the regulatory authorities. It is anticipated that many of these costs and procedures have not been adequately evaluated by either the coal operators or the regulatory bodies. It is, therefore, necessary to proceed with an examination of the general reclamation processes, the effect of these processes on product costs, and the methods, if any, which may be utilized to minimize their impact on the overall operation.

Jan 1, 1981

By Michael J. Howes

The nature of business in a free enterprise system is to maximise the return on an investment i.e. to maximise the wealth of the shareholders. This is normally achieved within constraints dictated by many agencies, one of which is the health and welfare of the employees. In the mining industry considerable effort has been expended in improvements in this field, however, the major problem still confronting the practicing ventilation or environmental engineer is the determination of what standards he should design for, which satisfy both the economic and health requirement s. Normally the basic health requirements are satisfied by the minimum standards defined in regulations and codes of practice. These are, however, based on an acceptance of a certain risk or lower production potential. A prime function of the ventilation engineer is therefore to financially justify and implement improvements to both standards and systems. The main purpose of this paper is to examine the basis and techniques of providing this financial justification. Changes in existing methods to achieve the same standards but at lower costs are also covered.

Jan 1, 1980

By Charles H. Thurman

THE data given herein were first included in a paper read before San Francisco Section, A.I.M.E., in October 1940, and are applicable to conditions existing until the gold-dredging industry was temporarily suspended by Order L-208 of the War Production Board in the fall of 1942. There is no doubt that gold dredging will be resumed at some future time, and on a scale equivalent to that of the recent past, but the cost data given herein will be affected to some extent by conditions existing at that time, and by labor rates and prices for materials then prevailing. DRAGLINE VS. BUCKET-LINE Dragline dredges should not be considered for mining large areas of low-grade placer gravel. In such deposits a dragline operator with a 5-cu. yd. dragline would be doing well to maintain an operating cost of 6¢ per cu. yd., while a bucket-line dredge with buckets no smaller than 7 cu. ft. each could be operated for less than 4¢ per cu. yd. By operating costs, I mean only field charges such as direct operating and overhead, which includes pay roll, power or fuel, repairs and maintenance, insurance, land clearing and general expenses, but not including such items as prospecting, depletion, depreciation of equipment, State Franchise Tax, or Federal Income Tax. It is not to be inferred that a dragline dredge cannot make a profit in small low-grade deposits, where the extent of a given property is too small to justify the use of the more costly bucket-line dredge. Consider small deposits of 10¢ gravel. It is obvious that a deposit of 5,000,000 cu. yd. of such gravel could not be mined profitably with a new, 7-cu. ft. bucket-line dredge, costing upward of $250,000, and with operation costs at 4¢ per cu. yd., paying for land or royalties out of earnings; nor could a new combination 5-cu. yd. dragline and washing plant, worth upward of $125,000 and working at 6¢ per cu. yd., make a profit. These comparisons are made because the hourly capacity of both types of dredges is nearly the same. The bucket-line dredge averages 93 per cent operating time in 24 hr., as against about 80 per cent or less for the dragline dredge. These percentages of operating time are important factors in making a comparison of this kind. The bucket-line dredge has greater efficiency in cleaning soft bedrock, usually characteristic of dredging deposits, and a 7-cu. ft. bucket-line dredge can be efficient to a total digging depth of 80 ft. (65 ft. below water, 15 ft. above). A 5-cu. yd. dragline dredge is limited to about 30 ft. of efficient digging depth, 5 ft. of which could be above water. In small areas of gravel not over 30 ft. deep, a 5-cu. yd. dragline dredge could make a profit where a bucket-line dredge could not do so. As an example: compare the dredging of 3,000,000 cu. yd. of 10¢ gravel 28 ft. deep with bucket line, costing 4¢ per cu. yd., and with a 5-cu. yd. dragline dredge operating at 6¢ per cu. yd. Because of small yardage, new equipment is not warranted, therefore we can assume that the dredges of both types are used equipment, fully depreciated. Dismantling, mov-

Jan 1, 1945

By Calvert D. Iles

Open-pit mines in the US and throughout the world are typically characterized by increasing operating costs and decreasing ore grades. Thus, companies must continue to improve their use of human and technological resources to remain competitive in the marketplace. Duval Corp. has historically been very sensitive to mining costs, in part because of relatively low grade copper-molybdenum ore bodies. These concerns have resulted in three haulage system generations at the 218 kt/d (240,000 stpd) Sierrita-Esperanza open-pit mine south of Tucson, AZ. Each generation has exceeded the performance of the one replaced. The latest system of portable crushers and conveyors reduces hauling costs by combining both hardware and technique. Savings are achieved not only bysubstituting conveyors for haul trucks, but also by permitting the crusher-convey or system to closely follow mining as the pit deepens and/or mining areas change location. The Duval system is capable of easy and inexpensive relocation in varying site configurations in relatively short time periods. Its implementation in active mining areas results in minimum disruption to both the mine operation and mine design. This haulage concept allows the mining engineer maximum freedom to design an open pit for profit rather than for equipment. Maximum savings with a portable system are achieved by minimizing truck haulage costs. At Sierrita, for example, the yearly estimated operating cost savings for each thousand feet of +10% truck ramp replaced by conveyors is about $1 million per portable crusher. A savings of $30 million could be achieved fora three-portable system overa 10 year period simply by reducing the average truck Iiftto the crusher by 30 m (100 ft), There is also the added capital expense of buying trucks to cover the additional 30 m (100 ft) of lift. Relocation costs are an important consideration in a portable system. Direct costs can become a significant operating expense if frequent relocations are necessary to take full advantage of potential haulage cost savings. A site preparation cost of $375,000, for example, would add an additional operating cost of 2.8¢/t(2.5¢/st) for a system handling 13.6 Mt/a (15 million stpy), assuming one move a year, In addition to the direct cost of site preparation, such as installation of retaining walls, apron feeder slots, and equipment pads, there is the cost of site renovation after abandonment. Indirect relocation costs, while less tangible and more dependent on specific mine design and scheduling, can be of significance. A slowdown in the mining rate or a less efficient mining plan can result from a site not being immediately available for mining after abandonment. Conversely, mining in narrow areas can be adversely affected if two or three month lead times are required for site preparation.

Jan 4, 1983

By A. S. Baillie

THE subject of taxes appears to engage our attention altogether too lightly. At least it would seem that, notwithstanding the increase in the cost of government, and its concomitant increased taxation, little constructive work is being done with a view to solving the problem of increased taxes. I believe that the inattention of the public generally to the subject of increased taxation is due largely to the fact that shareholders are not advised of the amount of taxes paid by industry. Were companies to advise their shareholders the amount of monies paid or payable out of each year's earnings for taxes in one form or another, and were such amounts compared with the amounts available for distribution to shareholders, the effect would be a general demand for more equitable taxation methods. While I am not unmindful of the burdens and inequities in taxation confronting industry generally, I believe that the mining industry in this Province does not fully appreciate the burden represented by the costs of taxation. My reason for this belief is based partly upon1the fact that no serious effort has so far been made to devise some means By which the mining industry in British Columbia might protect itself against the ever-increasing burden of taxation. In addition to this fact the widely diverse nature of mining in British Columbia makes the accumulation of comparable data a problem which, so far as I can ascertain, has never been attempted in a manner which would be authoritative. It should not be necessary to cite the effects of this burden upon any one mining company or upon any branch of the mining industry, such as coal mining, placer mining, base-metal mining, or the precious-metal mines. In my opinion, the operation of our mines by large corporations is conducive to the payment of taxes with much less protest than would be the case were the taxes being taken out of the earnings of just a few partners or a very few shareholders. We appear to be too unmindful of the taxes, paid by mining companies, of a kind that are not so prominently brought to our attention as are the taxes which are calculated upon the taxable income of the company at the end of its fiscal year. British Columbian mining companies pay many other taxes besides those which are calculated upon taxable income. Among these are school taxes, property taxes, gasoline taxes, mineral taxes, coal royalty, to say nothing of fuel-oil tax, sales tax, and excise taxes.

Jan 1, 1935

By Vincente M. Jr. Lim, Brain W. Lawrence

Underground mining operating costs consist pri¬marily of direct costs such as labor, supervision, ma¬terials, and supplies, plus indirect costs. The material and supply costs vary substantially between mines but commonly range from 35 to 60% of the total direct costs. As part of the preparation of accurate operating cost estimates for a project, information must be as¬sembled to select the material and supply items and to determine the quantities of these items that will be required. Cost data then can be incorporated with the estimated material and supply requirements to determine the total material and supply costs for the project. Estimated quantities will vary considerably between mining projects depending upon factors such as the type of material being mined, the mining method, the equip¬ment selected, drilling and blasting techniques, mucking and haulage methods, ground support requirements, number of men employed, etc. Valuable information often can be obtained from suppliers and manufacturers, including data on current operating practices for similar projects, recommenda¬tions for the specific project, and preliminary cost quota¬tions. However, quotations obtained for estimates are generally higher than the prices paid at the time of purchase. Mines operating in the area, or those mining under similar conditions, also can provide essential design information, but it often is difficult to obtain cost information from the operators. Estimated costs for the most common major items of underground materials and supplies are presented in the accompanying tables. They represent current costs or cost ranges and are intended to be used only as a guide when preparing budgetary estimates for materials and supplies. Cost data were obtained mainly from suppliers and manufacturers, with up to three quotations being ob¬tained for each item whenever possible. In most cases, as noted in the table footnotes, prices were based on quantities representing normal requirements for me¬dium-size mine operations. Every attempt was made to assure accuracy. However, the cost for most items, especially those with multiple sources, can deviate sig¬nificantly for various reasons such as geographical loca¬tion, current market conditions, quantities ordered, size of the customer (which could influence the ultimate quantities purchased), and the ability of the purchasing department. It is also for these reasons that the actual amount individual mines are now paying for specific items may vary from the estimated cost in the tables. The cost for specific sizes of items that do not appear in the tables often can be factored from the data pre¬sented. Costs for many items can be converted easily to a unit that sometimes is more basic, but not as com¬monly used, such as from a length to a weight unit. Other items not listed, such as repair parts for equip¬ment, will involve contact with suppliers to determine specific recommended requirements and to obtain costs for these items as related to each individual project. Costs are expressed in terms of US dollars as of 1978 unless otherwise specified. All measurements, sizes, and weights are expressed in conventional units (i.e. feet, inches, pounds) ; applicable metric conversion fac¬tors follow each table. Costs are represented for drill steel and bits; mining explosives; blasting caps; blasting supplies; ground sup¬port items; ventilation equipment; utility pipe, utility hose, and accessories; mine track and accessories; tires for underground equipment; lubricants and fuels; and miscellaneous supplies.

Jan 1, 1982

By Luis Vela Arellano

El presente texto describe la importancia de dos proyectos de exploración (Cotabambas y Antillas) en la producción de oro y cobre. Dichos proyectos se ubican en la franja del Balolito Andahuaylas-Yauri. La franja de edad Eoceno-Oligoceno representa el evento tectónico más importante que emplazó los más grandes depósitos de cobre en el planeta y se extiende desde el norte de Chile (Copiapó, Antofagasta, Iquique) hasta el sur del Perú (Apurímac y Cusco). En el lado de Chile, la exploración es antigua y los proyectos descubiertos ya se encuentran en explotación avanzada, mientras que del lado peruano, la exploración continúa y los yacimientos se encuentran en descubrimiento. Asimismo, se busca Mostrar el potencial de exploración y oportunidades de expansión en la región de Apurímac y Abancay.

Feb 1, 2015

By Luis Vela

El presente trabajo señala a Cotabambas y Antillas como dos grandes proyectos de exploración del cobre, que en un mediano plazo podrían ser parte de la producción mundial de Cobre y Oro. Dichos proyectos se encuentra ubicados en la franja del Batolito Andahuaylas-Yauri. En el lado de Chile, la exploración es antigua y los proyectos descubiertos ya se encuentran en explotación avanzada, aportando más del 70% de la producción de cobre de este país (aprox. 26% de la producción mundial). Mientras que del lado peruano la exploración aún continua y los yacimientos se encuentran en descubrimiento; de aquí que la mayor inversión minera en el Perú para los próximos años está sdestinada a la construcción y exploración de proyectos en Apurímac y Cusco. En ese sentido, el proyecto Antilla es un depósito de escala moderada y con fácil acceso a infraestructura y Cotabambas es un depósito de cobre y oro de gran escala. De otro lado, Panoro ha demostrado ser exitoso en el levantamiento de capital para el financiamiento de sus exploraciones puesto que posee una base de datos confiable y robusta, regulada por estándares internacionales.

Oct 21, 2015

By A. Pagliero

The coulombimetric reduction method has been used as an evaluation technique for Pb-Ca-Sn anode corrosion in the LIX-SX-EW process. The proposed methodology involves three consecutive steps, i.e., cleaning, oxidation and reduction. They are carried out in the same experimental unit, in solutions containing 180 g/L H2S04 with and without the addition of cobalt. The authors have worked in a wide range of oxidation current densities, from 150 to 500 A/m2 for in a period from 0.5 to 120 hours. It can be concluded from the results that there would be a linear relationship between the applied electrical charge I*T (Coulomb) and the anode corrosion expressed as transformed Pb mass (mg), for solutions with or without the addition of cobalt. The exception is that for the last one the corrosion rate is 5 times faster, which was observed for every layer. From the evaluation of different corrosion layers, one can point out that its composition is mainly in the form of sulphate. In the presence of cobalt, about 67% of Pb would be as sulphate (PbSO4), about 27% as a basic oxide (PbO) and only 6% as oxide PbO2 on the surface. From this result, it appears that great transformations occurred in the metal/sulphate interface. Without the addition of cobalt, the proportion of oxide Pb02 on the surface increased up to 11.5%. According to the previous statement and considering that Pb was found mainly as sulphate, the authors recommend its determination be used as quality selection criterion. Its evaluation should be performed in the acid solutions with 200 ppm cobalt addition at an oxidation current density of 300 A/m2 for a period of 24 hours.

Jan 1, 1999

By L. C. Noakes

In 1947, only a year after its own establishment, the Australian Bureau of Mineral Resources, Geology and Geophysics formed a Mineral Economics Section. Originally, this Section consisted of a mineral economist, four geologists and three auxiliary employees. Then, in 1954, it was reorganized into a professional body of six members, all mineral economists, one of whom was the chief mineral economist. At this time, a mining statistical officer from the Bureau of Census and Statistics was attached to the Section to bring about a closer liaison between these two agencies. The addition of another mineral economist in 1961 brought the Section's professional staff to its present strength of seven. In recent years, the Mineral Economics Section has gained considerable support by becoming part of the Mineral Resources Branch of the Bureau of Mineral Resources. This Branch, which has the general role of monitoring the performance of the mineral industry in Australia, has two other specialized sections- Mining Engineering and Petroleum Technology-which bolster and complement the Mineral Economics Section.

Jan 1, 1970

By Brian W. Mackenzie

Since mineral economics is often coupled with mining engineering in the solution of mineral industry problems, it is important that the principles of this science be a part of the mining engineer's education. Essentially, mineral economics is the application of economic principles to analysis of the multistage process by which minerals are converted from geologic resources to marketable products. In some instances, it may require only the analysis of case studies from a well- developed economics core. In others, however, it requires special skills, because some aspects of the mineral conversion process--such as mineral occurrence, exploration investment and depletion-have no complete parallel in general economics. The mining engineer has been an important contributor to the analysis of mineral economics problems because of his special knowledge of the mineral industry.

Jan 1, 1971

By L. C. Noakes

Despite a long history of mining. Australia had no Commonwealth organization dealing specifically with the mineral industry until 1946, when the Australian Bureau of Mineral Resources, Geology and Geophysics was established. Once formed, this new organization quickly expanded to include a Mineral Economics Section, which was established in 1947. Australia's slowness to develop a Federal bureau for the mineral industry can best be explained in the light of her political history. From a group of British crown colonies, Australia evolved into six sovereign states which had no unified federal government until they formed the present Commonwealth in 1901.

Jan 1, 1970

COUNCIL OF EDUCATION OF AIME (Formerly Mineral Industry Education Division) Established as a Division January 15, 1932 Established as a Council February 26, 1957 John C Calhoun, Jr, Chairman 0 Cutler Shepard, Vice-Chairman Thomas A Read, Secretary-Treasurer Dept of Mining & Metallurgical Engrg University of Illinois Urbana, Illinois COUNCIL OF ECONOMICS OF AIME (Formerly Mineral Economics Division) Established as a Division December 15, 1948 Established as a Council February 26, 1957 Louis C Raymond, Chairman Lorin A Cranson, Vice-Chairman Henry T Mudd, Vice-Chairman Adam K Stricker, Jr, Vice-Chairman Paul F Yopes, Secretary-Treasurer U S Bureau of Mines Albany, Oregon

Jan 1, 1957

COUNCIL OF ECONOMICS OF AIME Formerly Mineral Economics Division Established as a Division December 15, 1948 Established as a Council February 26, 1957 Douglas Donald, Chairman Sheldon Wimpfen, Vice-Chairman (Mining) A J Phillips, Vice-Chairman (Metals) E Connaughton, Vice-Chairman (Petroleum) J S Vanick, Contact AIME Director A H Lindley, Jr Secretary-Treasurer Lehman Brothers 1 William Street New York 4, N Y COUNCIL OF EDUCATION Formerly Mineral Industry Education Division Established as a Division January 15, 1932 Established as a Council February 26, 1957 L E Shaffer, Chairman J D Forrester, Vice-Chairman O Cutler Shepard, Past Chairman , Contact AIME Director

Jan 1, 1959