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By Brian W. Mackenzie

The mine development decision is made on completion of exploration to determine whether or not a mineral deposit should be developed to production and, if so, how. This involves the selection of an optimum mine development alternative from a number of technically feasible alternatives and the comparison of this optimum with those of other available investment opportunities. If the optimum is sufficiently attractive, the deposit is developed to production. The selection process is carried out within a framework of corporate objectives and resources. The mine development decision is based on the balancing of two parameters - - rate of production as reflected in plant capacity and cut-off grade. On the basis of available information and experience, detailed revenue and cost 'estimates are made for each feasible combination of plant capacity and cut-off grade. What economic evaluation techniques should be applied to these estimates to reduce each alternative to economic indicators that will enable meaningful comparisons and an informed investment decision? This is the essence of the paper. The determination of optimum plant capacity and cut-off grade has been the subject of intensive research efforts by economists and mining engineers (1-7). Their studies are based on marginal analysis and assume that, at the time of decision, certainty conditions prevail with respect to ore reserves, mining costs and mineral markets. The optimum mine development alternative is defined as that which maximizes profitability.

Jan 1, 1969

By J. R. Evans

Mining claims must have a discovery of a valuable mineral deposit to be valid. When required, a Federal government mineral examiner makes a determination of validity and recommendations thereof to authorized management officials. The examiner should show whether or not an existing mining operation, or a proposed operation have economic viability. This is accomplished through an analysis of legal entities, land status and use, geologic and mineralogic relationships, and mining, milling and processing techniques considered in an appropriate economic evaluation framework. A framework involves market and market entry studies, reserve analyses, all costs analysis, royalty buyouts, tax structure, discount rate of return, and escalation and risk factors. An income approach to value is then used by means of a simple or complex discounted cash flow (DCF) analysis to certify validity. Whether one claim is owned by a single miner, or hundreds of claims are owned by a large corporation, thorough, fair, consistent, and appropriate economic concepts should be applied by the mineral examiner.

Jan 1, 1993

By Brown N. R

This paper attempts to highlight some of the problems encountered in the economic exploitation of the deeper coal seams by opencast mining methods. The major cost elements of three methods of overburden removal are examined in relation to the overall cost of winning coal from deeper-lying coal seams. The three overburden removal methods examined are dragline stripping and two systems combining dragline stripping with shovels and trucks at varying depths of overburden. A dragline is, undoubtedly, the most cost effective system of overburden removal for depths of up to 30 metres but it is suggested that, when dealing with incremental overburden depths in excess of 30 metres, engineers should consider carefully the possibility of using a shovel and truck operation, or other system, to augment the use of a dragline.

Jan 1, 1986

A minimum target of economic growth in Australia has been set at 5% per annum growth in G.N.P. at constant prices (Vernon Committee). 2. The core of the problem of sustaining steady growth at this or a similar rate is to ensure regular flows of investment. This sustains productivity, helps to control balance of payments pressures, and to check inflation. 3. The regular intake of human and physical resources, in conjunction with intensive capital development involving finance, technology and management, is basic to sustaining the growth rate and ensuring rising standards of living.

Jan 1, 1971

By C. N. Bailey

Let's review the economic factors in mill design. Talking about engineering economics in mill design reminds me of an old' saying "There are several ways to handle women but nobody knows what they are." I'm sure that the same economic factors do not apply to each of our mill designs, but for the sake of emphasis, it is well to review a few of them. They are so simple that we are apt to feel they are not important. Other speakers today are talking about the engineering factors of mill design, but I'm asking the question "Have we checked the economic factors involved in these designs? Have we checked the obvious? Many great discoveries have resulted from analysis of the things that appeared to be obvious all the time. What are some of these economic factors? Perhaps the most basic one is simply the value of minerals in place if minerals have value in the ground, they have value only because many important and different considerations add up to the probability that the minerals can be mined, beneficiated and disposed of profitably. The size formation and quality of the ore body, the distance from market, and the transportation available to the market area, depreciation rates, taxes, and the ownership interests involved are but some of the factors that must dovetail into the answer of profit, an answer prerequisite to hoped-for financing.

Jan 1, 1961

By E. B. Spice

Although much may be learned about the economics of cold weather operations by studying successful mining ventures in southern and central Canada, it is the purpose of this article to extend the study by considering only permafrost areas. Geographically this means most of the country north of the 60th parallel. In this area, at the present time, only five Canadian companies are carrying on routine and successful mining operations on a year-round basis. However, there have been some score of unsuccessful ventures, and a number of properties in the development stage show promise of being producers. Problems of cold weather are worthy of study. It may be pointed out that successful mines in this area face problems of isolation and costly transportation as well as cold weather. To reach valid conclusions, consider the development of a mythical mineral deposit located on the 65th parallel in the heart of the barren lands; problems of isolation and transportation will be ignored.

Jul 1, 1956

By L. E. Garner

Aggregate resources should be considered primary factors in urban development. Resource planning is essential because land values, previous construction, or zoning restrictions often preempt exploitation of aggregate deposits within an urban area. Sequential land use practices allow development of area prior to urban development population and aggregate consumption trends in Austin, TX, indicate that substantial quantities of reserves will be lost to future development. Aggregate materials are present in nearby areas. However, a comparison of transportation and reclamation costs indicates that reclaiming land after mineral extraction can be significantly cheaper than transporting materials longer distances.

Jan 1, 1982

By L. E. Garner

Aggregate resources should be considered primary factors in urban development. Resource planning is essential because land values, previous construction, or zoning restrictions often preempt exploitation of aggregate deposits within an urban area. Sequential land use practices allow development of areas prior to urban development. Population and aggregate consumption trends in Austin, Texas, indicate that substantial quantities of reserves will be lost to future development. Aggregate materials are present in nearby seas. However, a comparison of transportation and reclamation costs indicates that reclaiming land after mineral extraction can be significantly cheaper than transporting materials longer distances.

Jan 1, 1979

By Roscoe Bell

An economic appraisal of the western phosphate industrial potentials made between 1945 and 1948 revealed possibilities for a considerable expansion in the production of high analysis phosphate fertilizer. The most significant facts are: (1) a rapidly increasing and a much larger potential market which might be reached from the western deposits, (2) the existence of large undeveloped deposits of phosphate rock, (3) potential energy from sulphuric acid, coal, or hydroelectric power in the general vicinity of the deposits. The challenge to the mining and metallurgical engineering profession is in the economical development of phosphate mines and in improving processes for utilization of the western ores and the recovery of byproducts to make the expanded western industry satisfactorily compete with the industry in the East and South in meeting the fertilizer needs of the Midwest and Far West.

Jan 4, 1950

By R. G. Bradbury

The paper uses two hypothetical, but typical, situations to show that hydraulic rock drilling equipment has very significant economic advantages over pneumatic equipment both in drifting applications (even in the situation where advantage is not taken of the high productive capacity of the hydraulic drill) and production drilling applications. Other factors, including the non-economic advantages and the disadvantages of hydraulic drilling, are discussed. The paper concludes with a brief analysis of why the Canadian mining industry has been slow to take advantage of this apparent broadly advantageous advance in rock drilling technology.

Jan 1, 1979

By H. S. Kibler, A. E. J. Gallagher, J. J. Sebesta

A review will be made of the nature, value, costs, and factors associated with industrial minerals production in general. Comparisons will also be made between some of these data and similar criteria for metallic mineral production.

Jan 1, 1987

By A. E. J. Gallagher

There are many influences which have a bearing on the economics of industrial minerals production. The purpose of this paper is to discuss briefly three factors which have economic significance in the production of these mineral commodities. The three items of discussion include 1) the nature and relative value of the industrial minerals group, 2) project planning, and 3) market analyses. General aspects of these factors are familiar to most of us. However, an attempt will be made to give some current details regarding each. Also, in reality, project planning and market studies are usually so closely associated that they will be discussed jointly, rather than separately. This will be done by way of examples which show how these two activities actually evolved for two industrial minerals projects.

Jan 1, 1984

By N. E. Norman, R. Stier

The mining industry is continually seeking out new and better underground mining techniques. One of the most recent-also, perhaps, the most significant-of the new concepts in underground mining is the use of mechanical rock-boring machines. And one of the problems that concerns us all in this matter is the cost of mechanical rock tunneling. To help answer the oft-quoted question "What will it cost me?" the following pages deal with the operating costs of so-called "medium to medium hard rock" boring machines-i.e., those designed to meet the drilling requirements in 8000 psi to 25,000 psi rock. A few machines are capable of drilling hard rock above 25,000 psi, but the economics of mechanical tunneling in rock that hard is limited at the present time. [ ] For mechanical rock tunneling, there are five main cost factors influencing the expense: Capital Investment, Cutters, Labor, Power Requirements, and Maintenance. These factors give us a good basic picture of the cost of excavation, although muck handling, erecting supports, and other costs directly related to conventional tunneling and mechanical boring enter into the final picture.

Jan 6, 1967

By Frances Badelow

This paper describes a design process for piled raft foundations supporting high-rise buildings. The design process comprises an initial stage of geotechnical site characterization using the results of investigation boreholes to prepare a subsurface model and derive geotechnical parameters for raft and pile design from empirical correlations. Following this a preliminary analysis is undertaken using a combination of elastic theory and allowances for non linear behaviour of the piled raft system to assess the viability of such a foundation system and any potential advantages of a piled raft over conventional fully piled foundation systems. Finally, a detailed analysis is undertaken using the GARP8 computer program. Case studies where this design process has been successfully used to design a more efficient piled raft system that has resulted in significant cost and time savings compared to conventional bored pile foundation options are also described.

Jan 1, 2006

By R. L. Neman

Southern Oklahoma (including the Arbuckle Mountains) has outcrops of rocks representing Precambrian, Paleozoic, and Cretaceous ages. Thus, rocks of every geologic age in the Paleozoic and Mesozoic Eras, except the Jurassic and Triassic Periods, are present in south-central Oklahoma. With rocks of such an enormous age range present in a relatively small geographic area, it is little wonder that a wide variety of economic rock and mineral resources are locally present. This report will describe the occurrence, mining, processing, and end-uses (dictated by chemical and physical properties) of the Precambrian Troy Granite, the Cambrian Royer Dolomite and Fort Sill Limestone, Ordovician silica sands of the Simpson Group, Ordovician limestones of the Viola Springs and Welling Formations, and Ordovician Sylvan Shale. In general, the more the end-use depends upon chemical composition and purity, the greater the price that can be demanded for such-minerals. The not-so-successful attempts to mine zinc, manganese, copper, and iron from the Arbuckle Mountains also will be discussed briefly, and I will provide a sermonette on analytical chemistry and its usefulness to corporate CEOs. I may be one of the few persons at this Forum on the Geology of Industrial Minerals who is not a professional geologist. I am an analytical chemist specializing in geochemistry. In particular, I investigate trace elements in rocks and their consequences in industrial processes. As such, I have consulted to the mining industry (and their clients) for two decades, always with the intent of improving service and product quality.

Jan 1, 1999

By V. F. Hollister

The Ivanhoe district, Elko Co., Nevada, is located in the northern part of the Carlin trend of epithermal gold-deposits, but it differs from most mines in the belt in that Ivanhoe epithermal gold ores are found in 14 m.y. old Tertiary volcanic rocks as well as in the better known Paleozoic sediments. Within the Ivanhoe district U.S. Steel (USX Corp.) discovered and partly developed an epithermal gold deposit largely hosted by Tertiary rocks that, with a 167-hole program, was found to contain an open ended probable reserve of 4.0 million tons of heap leachable open pit oxide ore averaging .042 opt Au. An additional 4.0 m.t. of open pit sulfide ore averaging .048 opt Au were also developed. The U.S. Steel orebody was a blind discovery in that it just barely outcropped, and it was found by drilling through a premineral but barren cover of altered Tertiary volcanic rocks.

Jan 1, 1988

By M. Vallée, J. -P. Charette, D. P. Gold

"The Oka Carbonatite and Alkaline Complex is a Lower Cretaceous intrusive body of the Monteregian petrographic province. Carbonate rocks of various types, and associated alkaline rocks of the ijolite and okaite suites, are distributed in a double ring-dyke structure 4 Yi miles long by 1 1/2 miles across. Alnoite and alrioite breccia pipes intrude all rocks of the Complex and indicate, from inclusions, that a cover of Palaeozoic rocks existed at the time of emplacement.The results of radiometric, magnetic and gravity surveys of the Complex are compiled and discussed both with respect to the regional pattern and, locally, the bed-rock geology. The Complex is characterized by high-intensity anomalies.Exploration activities started during 1953, and mining operations began in 1961 on the property of St. Lawrence Columbium and Metals Corporation, at one time the world's largest producer of niobium concentrates. Because of the boudinaged and fractured nature of many of the rocks and the variability in grade of the ore minerals, the role of the mining geologist is both demanding and exacting. Rock types are varied and their mutual relation-ships ambiguous, the minerals are rare and complex, and close geological control of the ore is needed in the mine and in the mill. Closely spaced diamond drill holes are needed for mining control, and the ore-waste contact is defined mainly by assay results.In the exploration for 'carbonatites' in Eastern Canada, aeromagnetic surveys are judged to be the best exploration tool, followed in decreasing order by the search for circular structures on aerial photographs, regional gravity surveys and radiometric surveys."

Jan 1, 1967

By ed. comp., S. H. White, A. J. Naldrett, P. R. Simpson

Peter Simpson's introduction, Tony Naldrett's concluding remarks and discussion by Prof. White of D.M.A. Flight's report of the proceedings are presented from the conference held in Keyworth, UK, in April 1992

Apr 1, 1995

By T. E. Garnar

Heavy mineral mining has been a small, but important Florida industry over the past sixty years. Early geologic history of each deposit is similar up to point of deposition in alluvium, deltaic sediments, or along shorelines. Later geological development through reworking and concentration is different for each deposit. The Trail Ridge deposit was formed by reworking Citronelle sediments of the Lake Wales ridge. Post depositional leaching of iron from ilmenite makes Trail Ridge an important source of titanium minerals for TiO2 pigment manufacture. Research leading to the separation and sale of by-product heavy minerals from Florida deposits has been important in maximizing profitability. Advances in mineral dressing technology will lead to future mining of lower grade reserves. Future needs for heavy minerals seem certain to expand, with increased activity in exploration and development of mining operations.

Jan 1, 1972

By Jerome F. Machamer

Ninety percent of manganese is used as an alloying element in steel. Smaller amounts are used in dry-cell batteries, in aluminum and bronze alloys, and many other uses. The element has several oxidation states, and oxidation-reduction reactions control its chemical behavior. Manganese, in primary minerals such as rhodochrosite, rhodonite, and braunite, is in a divalent oxidation state, and manganese in secondary minerals, such as pyrolusite and cryptomelane, is in a quadrivalent state. Virtually all manganese ore production comes from three types of sedimentary manganese deposits. First, lenticular beds of manganese carbonate or carbonate-silicate rock in Early Precambrian volcano-sedimentary complexes in South America and Africa have been major sources of manganese ore. Second, laterally extensive beds of mangano-silicate and manganiferous carbonate minerals in certain banded iron formations are major sources of commercial ore and constitute the largest resource of manganese. Finally, manganese accumulations deposited in marginal to epicontinental basins are the largest source of current manganese ore production. Residual deposits resulting from the destructive weathering of rocks with a low manganese content have been, but are no longer, important sources of manganese ore. Most deposits have been altered to some extent by super- gene oxidative processes, and are economic because of that alteration. Outcrops of manganese ores are invariably oxidized and can be very deceiving as to the character of the underlying material. Nearshore facies of epicontinental basins, and nearshore age-equivalents of metalliferous black shales are among the targets for new manganese exploration. Very high-grade manganese occurs in sedimentary deposits altered by metamorphic and metasomatic processes.

Jan 1, 2001