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By M. R. Samis

The great variability of mineral and energy prices has motivated some governments to incorporate a windfall profits tax into their mineral taxation regimes. Windfall profits taxes are a means for governments to capture additional mineral revenue when mineral prices are considered higher than some historic level. Governments need to be aware of the effects of such contingent taxes on the exploration, development and operating decisions of mining companies. Mining companies need to be able to calculate the full impact of windfall profits taxes on the economics of their projects. This paper examines the valuation of a multi-phase copper-gold project in the presence of a windfall profits tax. Real options Monte Carlo simulation is used to characterise the different exposures of the mine owner and of the government to the risky cash flow streams that they receive from the project. The results highlight that Monte Carlo simulation paired with the real option valuation method is able to account appropriately for the differing risk exposures, while the traditional discounted cash flow valuation model is not. Our key conclusion for governments and mining companies is that the impact of contingent tax and royalty terms can and should be assessed using advanced valuation techniques, and the results used to improve contract designs under the constraint of actual and perceived fiscal system stability.

Jan 1, 2007

By K. Wyper

"Gulf Minerals (Canada) Limited' s Rabbit Lake Uranium Operation is located in the northern portion of Saskatchewan, 198 miles southeast of Uranium City and 134 miles northwest of Lynn Lake Manitoba.This paper describes flow sheet changes to solve operating problems and briefly describes future changes to accommodate the new ""B"" Zone ore.The Rabbit Lake mill was designed to process 1600 dry tons per day of uranium ore, with an average grade of 0.370 percent u3o8. In 1981, the mill processed 2040 tons per day at a grade of 0.231 percent u3o8 . The process modifications and flow sheet changes that allowed this increase in tonnage will be discussed in relative chronological order. Mill feed was introduced on June 10, 1975, the original equipment consisted of an Ingersoll Rand hydraulic breaker mounted over a 24"" square grizzly. The - 24"" ore was fed to a 2011 X 6"" seflli autogenous grate discharge mill close circuited with 20"" cyclones, the mill discharge was screened on a tyler double deck screen with the undersize (8 rnesh) reporting to the cyclones, the screen oversize was returned by conveyor belt to the mill feed chute.The cyclone overflow (28 mesh) was thickened in a 100' diameter thickener to obtain 55 percent solids for the leach circuit.The leach circuit consisted of two slurry holding tanks and five leach tanks."

Jan 1, 1982

THE ore treated is almost pure copper pyrites (chalcopyrite) in a gangue of quartz and quartz-felsite. Very little free iron sulphide (pyrite) occurs, and at the time of the erection of the flotation plant the stopes in the oxidized zone had been almostentirely depleted. This zone only extends to a shallow depth, and, below the l00-ft. level, the sulphide for the most part is clean and bright but in the crushed and brecciated parts of the ore channel, where surface water has circulated freely, the gangue is decomposed and kaolinized, and the copper sulphide badly tarnished. This class of ore gave considerable trouble at the mill, but unfortunately, was very limited in quantity. A sample of rich ore assayed-Copper, 21.2 %; iron, 24:.3 %; silica, 28.9 %; sulphur, 25.1%.The concentration in the original mill was effected by handpicking, jigging, and tabling. A considerable portion of the copper mineral arrives at the surface in the form of large lumps of very pure quality, eminently suitable for sorting out by hand.The rich ore is tipped over a grizzly at the shaft bins; the oversize hand-picked, and the undersize bagged direct.

Jan 1, 1912

By Flavio Begazo Mamani

Recientemente Southern Perú desarrolló un nuevo proyecto donde se modernizaba la planta de Fundicion y se reemplazaba el convencional horno reverbero por la tecnología del ISASMELT, capturando más del 92% de los gases generados durante el proceso de fusión de los concentrados de cobre. En ese sentido, el presente texto describo los efectos de la modernización de la Fundición sobre la calidad anódica. Antes de la modernización de la Fundición, los ánodos fueron producidos en la planta de ánodos ubicada en la Refinería de Cobre de Ilo. Ahora los ánodos son producidos directamente en la Fundición y como resultado, la composición química de los ánodos ha cambiado, principalmente en el contenido de bismuto, antimonio, plomo y zinc, siendo diferentes a los parámetros de diseño original de la Refinería. Asimismo, este factor impulsó a revisar el proceso de remoción de impurezas y los parámetros de la refinación electrolítica en la Refinería para evitar la contaminación del cobre refinado, logrando mantener la continuidad de la producción de cátodos de cobre de alta calidad superando los estándares interna-cionales de la norma ASTM-B115.

Sep 12, 2011

By Creelman C. A

The removal of a horizontal piIlar between Nos. 9 and 11 levels (1,116 feet from the collar of main shaft) was successfully carried out by blast hole drilling, and, to the best of the authors' knowledge, this mass blast of 40,000 tons of ore (requiring the use of 7,150 Ibs. of explosive and 5,385 feet of primacord) was the first occasion on which a task of this magnitude has been carried out underground in an Australian mine.Blast hole drilling was introduced by this company approximately fifteen months ago at New Cobar Mine in sub-level stoping.This experimental drilling and blasting gave very valuable information as to the correct technique to be adopted when the final plans were being prepared for the removal of the horizontal pillar at New Occidental Mine.The dimensions of this pillar were approximately 15 feet long, and from 40 to 60 feet wide, and 65 feet in depth.The block of ore extended to 35 feet above the level and 30 feet below, the upper section being partially excavated to form the bell-hole floor and grizzly chambers used for drawing off the broken ore in the shrink stope above the No. 10 level.Description of Ore-bodyThe main ore-body is situated almost vertically in a well-defined shear zone at the junction of sandstone and slate, the sandstone forming the eastern and the slate the western wall.The ore-body consists of highly silicified slate (chert) sparsely impregnated with sulphides, containing a small percentage of copper and bismuth.The total length of the ore-body is approximately 450 feet, with a maximum width of 60 feet in the main section, which is about 200 feet long.This is the section shown in longitudinal and cross-section (Fig. 1).The ore-body is divided by a horse of mullock in the northern end into two legs, the eastern and western, which are approximately 250 feet long and averaging 25 feet in width.This ore-body is strong, hard and abrasive with extremely strong walls, an ideal proposition for open stoping and mass blasting.MiningIn all levels above No. 9 the cut and fill method of ore extraction was adopted. On Nos. 10 and 11 levels the shrinkage method was introduced with economical results, and no difficulty had ever been experienced with shabby or bad walls.Shrink stoping had been carried upwards from No. 11 level to within 10 feet of No. 10 level, when mining hazards developed, and instead of...

Jan 1, 1944

By Gorzalczynski. Stan

The recent trend in underground mine developments is ?big is better?. This is most certainly evident in the mine shaft and the conveyances that operate within its compartments. Today, there are several new installations requiring mine cages that can transport up to 170 passengers. The technology in mine hoisting is advancing to address a combination of higher capacity requirements, deeper hoisting depths and faster winding rates, however, some areas of the hoist plant have not changed for the past fifty years. The most notable of these areas is the shaft compartment guide string and the conveyance mounted safety arrest mechanism. The technology in use today for the protection of passengers in a shaft conveyance from a hoist rope severance incident, remains conceptually unchanged from Elisha Otis? design of 1850. The actual retardation components, the safety dogs, have taken on several forms since Elisha?s invention with the last major design change occurring in the late 1940?s. The arrest of a free falling shaft conveyance requires that the shaft guides withstand the energy imparted on them by the safety dogs. There are some very real limitations presented by the use of wood for this application. The new hoisting era will most certainly continue to demand larger capacity equipment but also, an increased awareness toward safety.

May 1, 2002

By Hasan Nizamoğlu, Z. Abidin Sarı, Aslıhan Demiraslan, M. Deniz Turan, Tolga Depci

In this study, recovery of copper from solid material (obtained by leaching of chalcopyrite with oxalic acid in the presence of hydrogen peroxide) with a copper oxalate structure was carried out selectively using HCl. The chemical composition of the solid was as 29.3%, 9.7%, and 13.3% for Cu, Fe, and S, respectively. Selective recovery of copper by degrading the copper oxalate structure with a low-solubility product (Ksp = 4.43 × 10−10) was performed by conventional leaching in the presence of HCl. The optimum leaching conditions were determined as 5 M of HCl concentration, 318 K of leaching temperature, 120 min of leaching time, 25 ml/g of liquid–solid ratio and 400 rpm of stirring speed. Under these conditions, approximately 77% of copper and 3% of iron were taken into the solution. According to the characterization of the leach residue that was obtained, the oxalate structure was degraded. Moreover, the results of XRD analysis showed that the sulfur (S) and cubanite (CuFe2S3) phases were mostly observed in leaching residues, and this was supported by the SEM-EDX data. Based on the results, it may be stated that selective copper extraction can be obtained from a chalcopyrite concentrate by a two-step leaching method using a conventional hydrometallurgical technique.

PolyMet Mining is developing the NorthMet property near Duluth, MN. Laboratory investigations have led to the development of the Platsol process to dissolve in one step the base metals (copper and nickel) as well as the gold and platinum group metals (PGM). To complete the prefeasibility study, a fully integrated, 10-day pilot plant trial was undertaken. The trial consisted of high-temperature (>220ºC or >428ºF) pressure oxidation in the presence of 5 to 10 g/L chloride (the Platsol process). This was followed by solid/liquid separation, gold plus PGM recovery from solution, conventional copper solvent extractions/electrowinning (SX/EW) and recycling of the copper raffinate to the autoclave. The concentrate tested during the trial period was a NorthMet bulk flotation concentrate. It assayed 14.7% Cu, 3.05% Ni, 0.14% Co, 26.7% S, 1.4 g/t (0.041 oz/st) Au, 2.2 g/t (0.064 oz/st) Pt and 9.9 g/t (0.289 oz/st) Pd Laboratory results were confirmed and, with minor adjustments of the laboratory Platsol conditions, the following leach extractions were obtained during the pilot plant trial: 99.6% Cu, 98.9% Ni, 96% Co, 94.6% Pd, 96 % Pt and 89.4 % Au.

Jan 1, 2003

The phosphorus content of the banded iron formation (BIF) and of the associated iron ore deposits in the north west of Western Australia is known to vary widely, a fact which has considerable econ~mic significance. Trendall and Blockley (1970) have described the variety of textural appearances of apatite in the Hamersley Group BlF, and suggest that apatite may account for the entire phosphorus content of the unaltered BIF.A preliminary investigation using an M.A.C. electron microprobe analyser has shown that, at least in some iron ores and in partially enriched BIF and associated shales, the phosphorus occurrence is more complicated than this. A suite of samples was examined from one location which covered the entire Dales Gorge Member and some adjoining macrobands in the Mt. McRae shale, together with samples selected for their high phosphorus content, degree of ore enrichment, and position relative to the enrichment zone. Calcium apatite was not observed in any sample of ore from this sequence, despite its ubiquitous occurrence in the BIF. Silicate mineralogy in the enriched regions also differs from that in the BIF, but this change has not yet been studied in detail.The phosphorus content of goethite in one orebody is often high and appears to be in solid solution in the goethite structure. It shows little or no variability on a micro-scale within a grain, except where theremay be a zoned enrichment near boundaries and solution channels. There is also a limited solubility of phosphorus in hematite (the maximum observed by the author is 0·1 per cent P); but where the hematite is martitic (after magnetite) its phosphorus content is always low or zero. In some bands, martitic hematite has been hydrated to goethite, and this also has a very low phosphorus content. Phosphorus was not found in the silica or silicates in the ore, and even when iron enrichment is just beginning, a limited suite of samples from the BIF suggests that the phosphorus content of the chert microbands is almost entirely in the microscopic goethite nuclei (after riebeckite) scattered throughout the chert. The ability of goethite and hematite to accept phosphorus...

Jan 1, 1973

Lead isotope measurements indicate that lead from the A.B.H. Consols mine and two transgressive veins in Browne's shaft is "Thackaringa" type and not "Broken Hill" type.

Jan 1, 1970

Resonance re-emission from nickel vapour affords a convenient method for isolating the resonance lines at 3415A, 3515A, and 3524A. The vapour is generated by cathodic sputtering and is illuminated by light from a nickel atomic spectral lamp. The resonance lines thus isolated can be usefully employed for absorption measurements on mineral samples where the nickel concentration is too high for measurements with the more sensitive line at 2320A. A spectrophotometer employing a resonance lamp as monochromator possesses several advantages where a great number of determinations are made under routine conditions. The wavelength setting is stable under even the most rigorous conditions and with the provision for automatic setting of full scale deflection the instrument requires virtually no adjustment. The instrument has been used under routine conditions for the determination of nickel (in the range O· 05-2 per cent) in mineral samples.

Jan 1, 1968

Some design and feasibility studies have been made into possible methods of economic recovery of sulphur from smelter gases emitted at Western Mining Corporation's Nickel smelter at KalgoorIie in Western Australia. The smelter discharges some 330 000 tonne/yr of sulphur dioxide in a stream of approximately 6 per cent by volume of S02.Three possible recovery methods have been considered:1. The manufacture of sulphuric acid using the contact process.2. The concentration of sulphur dioxide to a pure form using dimethyl aniline as an absorbing medium.3. The reduction to elemental sulphur using natural gas as the reducing agent.Design studies were carried out by final year chemical engineering undergraduate students at Royal Melbourne Institute of Technology (RMIT) in 1981 under the supervision of the author and other teaching staff of the chemical engineering department. These studies indicate that sulphuric acid manufacture is the economically preferred recovery route.Markets for sulphuric acid include several potential mineral processing applications and the established fertiliser industry.Sulphuric acid is currently manufactured in a number of plants located at coastal regions of Western Australia using imported sulphur. The sulphuric acid is then used for superphosphate or titanium dioxide pigment manufacture at adjacent plants.The possibility is considered of manufacturing superphosphate at Kalgoorlie from locally produced acid obtained from the smelter gases and from phosphate rock railed to the site from the coast. The advantages of such a scheme include improved scale and technology of operation compared with some existing coastal operations, use of a waste material to replace imported sulphur, and avoidance of costs and hazards associated with railing large quantities of sulphuric acid.

Jan 1, 1983

By Peter Cain

The paper presents previously unpublished results derived from an unique interaction moitoring program conducted in the Sydney Coalfield of Nova Scotia. An abandoned, sealed longwall gateroad was re-entered and instrumented prior to extracting a longwall face 140 m below it. Instrumentation included piezometers connected to a constant head tank to monitor subsidence, and horizontally mounted extensometers to measure strains associated with subsidence. Survey levelling data was also collected. The monitoring results have allowed a number of significant conclusions to be drawn, all of which were either unanticipated or contradict current mainstream thinking. Firstly, interaction subsidence was less than anticipated. Secondly, the effects of rate of face advance on the development of the subsidence profile are evident. Thirdly, compressive strains are shown to remain in the subsided strata. Finally, strata response to undermining was almost immediate. The impact of these findings on the extraction of longwall panels beneath flooded workings in the Sydney Coalfield are discussed.

Jan 1, 1996

By Ying Lu, Jeffrey C. Johnson, Chen-Luh Lin, Jan D. Miller, Sindhoora Puvvada

Energy dissipation and fragmentation of rock is of interest for mine-to-mill operations in order to understand breakage and to minimize energy consumption during blasting at the mine site, and comminution at the processing plant. In this regard, high velocity impact breakage of long granite cores, called bars, has been studied with instrumented strain gages to follow the energy dissipation gradient along the bar length resulting from the strain waves generated by impact. As a result of high velocity impact, three zones have been identified (fragmentation, fracture, and elastic) and these three zones have been characterized in 3D using X-ray tomography. The fragmentation zones of the granite bars were studied in detail to describe the particle size distribution and the particle shape characteristics. Finally, the experimental energy dissipation for the fragmentation zone was found to be in close agreement with the expected energy calculated from the Bond work equation, if the anisotropic granite particles are defined by length rather than by sieve size.

By Ying Lu, Jeffrey C. Johnson, Chen-Luh Lin, Jan D. Miller, Sindhoora Puvvada

Energy dissipation and fragmentation of rock is of interest for mine-to-mill operations in order to understand breakage and to minimize energy consumption during blasting at the mine site, and comminution at the processing plant. In this regard, high velocity impact breakage of long granite cores, called bars, has been studied with instrumented strain gages to follow the energy dissipation gradient along the bar length resulting from the strain waves generated by impact. As a result of high velocity impact, three zones have been identified (fragmentation, fracture, and elastic) and these three zones have been characterized in 3D using X-ray tomography. The fragmentation zones of the granite bars were studied in detail to describe the particle size distribution and the particle shape characteristics. Finally, the experimental energy dissipation for the fragmentation zone was found to be in close agreement with the expected energy calculated from the Bond work equation, if the anisotropic granite particles are defined by length rather than by sieve size.

By G. Lipsett, S. Dessureault

Information technology (IT) initiatives in the past have tended to be sold on their ability to maximize resource output and return on capital by allowing assets to be used more effectively and efficiently. Many IT projects fail, not delivering return on their investment. This is known in the IT industry as the “productivity paradox,” where increasing investments in IT do not result in comparable increases in productivity. Experiences and studies of most business sectors reveal that this paradox is rooted in the false assumption that more IT spending automatically results in financial benefit, whereas the benefits are in how effectively IT is used. Most business sectors have accepted that re-engineering of processes is required to gain the full benefits promised of IT. A mining operation has organizational processes similar to most business sectors, but unique operational processes. The lessons of changing business practice in more common business processes, such as inventory control and customer-supplier relationships, can be adequately transposed into a mine setting. The unique operational processes in mines, in turn, require unique redesign efforts. Several enabling information technology opportunities have recently become available, such as more integrated mine production management systems and tactical manager training simulators. This paper reviews some of the latest IT products and outlines the processes and kinds of change that will be required in order to benefit from these new investment options.

Jan 1, 2009

Several glacial episodes have been distinguished in the Shotover Valley. These produced fluvioglacial aggradational deposits downvalley from the terminii, commonly with well-preserved terrace treads, as exemplified near Skippers. Chronological links can be determined between the Shotover tills and sediments and assessed equivalent deposits in the Wakatipu Basin/Kawarau Valley region through axial valley profiling. Constructed relationships suggest older Shotover events were probably large and left little detrital deposits within the valley. In contrast, the younger advances were smaller and valley-constrained. They are modelled as being wholly of Waimea or Otira Glaciation age, advances from the latter period producing the visually distinctive flights of terraceremnants. Both the terraces and the inner gorge, now occupied by the Shotover River, have been extensively worked for alluvial gold. Enrichments in the former environment have predominantly been as bottom or intermediate lags produced during degradation phases of catchment erosion. Surface lags have been locally targeted. Placer mining in terrace areas involved both tunnelling and sluicing techniques. In the modem river the greatest concentrations were on the schist or false bottoms, although flood gold has always contributed to the returns. Placer mining techniques here were highly variable.

Jan 1, 1998

By F. Ziaie

Line electrical resistivity method using physically infinite distance between current line electrodes is proposed to determine the location of mine workings. In this method at least three line electrodes are used. One of the current electrodes is used as a sinkhole electrode while the other two are used for different activiations of line electrodes when the survey area is between one of the line electrodes and outside the other one. The resistivity profiles perpendicular to the current line electrodes for different activation of electrodes is plotted versus the distance of the midpoint of the measuring potential electrodes. The anomaly due to presence of any locally lateral resistivity variation (e.g. mining cavity) will represent itself as peak or trough depending on resistivity contrast between the source of the anomaly and surrounding medium. Physical simulation of the proposed model was conducted by using a tank model in the laboratory. The results of experiments appear to be consistent with the theoretical model. Experiments for different depths and different spacial locations of the simulated cavities appeared to be successful for locating the depth and size of the cavity.

Jan 1, 1989

By C. C. Pretorius

3D seismic surveys have become a well-accepted method of imaging sub-surface geology in the Bushveld Basin. Because both the seismic sources and receivers are placed at surface, most surveys are limited to imaging faults with >=7 m throw. However, some areas such as shaft infrastructure can benefit from the ability to detect smaller structures prior to shaft sinking. Borehole radar and logs such as the acoustic televiewer can identify these structures in the shaft barrel, but not within -200 m from the shaft. Therefore, Anglo Platinum has developed the method of high-resolution 3D vertical seismic profiles (VSPs) for structural sterilization of shaft sites prior to shaft sinking. VSPs utilize a surface source and sub-surface receivers deployed down a borehole. This means that seismic energy goes through the near surface only once, and therefore suffers less frequency loss than when both source and receivers are on surface. Furthermore, VSPs can record 3 component (3C) data which comprises P wave, Sh (horizontal) and Sv (vertical) wavemodes. Because S waves travel at about 0.6 of the velocity of a P wave, shorter wavelengths and therefore higher resolutions are possible using S wave data. VSPs were first used in their one dimensional, zero offset, mode to correlate borehole geology with seismic stratigraphy within seismic surveys. This showed that VSPs record -30% higher frequencies than surface seismic surveys. The program then applied two dimensional VSPs to the problem of imaging geological structure close to a borehole. 2D VSPs confirmed that high frequency results could be achieved, and that this enabled a more accurate image of the Merensky Reef than could be achieved by surface seismic data. Finally, the program has achieved the successful recording and processing of 3D VSP data, with both compressional and shear wavemodes giving a high resolution structural result. Although P wave data gives -30% frequency improvement over surface seismic surveys, S wave data can give as much as 80% improvement, further improving the structural image achieved. The high fixed costs of VSP surveys mean that they should ideally be run in multi-client batches, which can reduce the per borehole cost by up to 50%. Their application is anticipated to be on high value capital infrastructure with a geological risk from faults which are not imaged by surface seismics-generally in the sub-7 m range. Keywords VSP, 3D seismic, bushveld, platinum, resolution, imaging, shear waves, shaft sinking.

Jan 1, 2011

By D. Harrington

This circular is part II of a series of papers reviewing the literature on air conditioning in mines with particular reference to the health, safety, and efficiency of employees. It deals with the physiological aspects of the principal physical qualities of mine air; part I (Information Circular 7001), chapters 1 to 3, discussed the physiological aspects of the chemical qualities of mine air, especially when contaminated with organic matter and noxious and toxic gases; part III will describe theoretical and practical methods of air-conditioning mines to try to correct or alleviate the conditions mentioned and will discuss the results attained by some of the systems now in use in various parts of tae world. With the present emphasis on the necessity for preserving the health of the Nation's defenders, industrial as well as military, attention should be called to the various conditions that may affect adversely their health and efficiency. One of the most important of these is exposure to abnormal air conditions, especially high temperatures and humidities. Therefore, it is believed that although the data presented here on the physiological effects of exposure to high temperatures cue intended mainly for the mining and allied industries, they are applicable to many other defense industries as well as to conditions present in some activities of the Army and Navy.

Jan 1, 1941