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By R. R. Sacrison

The Barrick Mercur Gold Mine lies in the Oquirrh Mountains of northern Utah. Limestone, sandstone, shale, and chert are the predominant rock types being mined. Recent expansion has encountered rhyolite. Lithology and structural attitudes control most mechanical behavior. Slope steepening, mine planning, and site selection are presented as means by which geological engineering has contributed to the economics of the operation. Geomechanics investments of approximately $700,000 have resulted in cost savings or additional production worth over $16,000,000.

Jan 1, 1990

By R. B. Elver

The level of steel consumption per capita is one of the principal indicators of a country's standard of living. It is no coincidence that the materially advanced nations possess viable iron and steel industries to provide a reliable and economic source of steal for the manufacturing industries. No other metal is as dominantly important in manufacturing as steel. The blast furnace - steel furnace complex based on coking coal, ferrous scrap and iron ore - continues to be the principal steel-producing method. Less important is the electric furnace method based on scrap, In recent years, there has been considerable interest in the many direct reduction processes that are not dependent on coking coal but usually produce a product for further refining in steel furnaces. No matter which series of processes are used, iron ore is essentially the only source of virgin iron units. Thus, to such a vital and capital-intense industry as steel, access to a relatively inexpensive, long- term supply of iron ore is essential.

Jan 1, 1964

By Dirk van Zyl

Pad construction costs can impact the overall economics of heap leach projects. Pad construction costs for single-and double-lined pads, using various designs, are listed for a typical small and large project. Double-lined pads are now more often required by regulatory agencies. Unless such designs reduce the risk of site specific contamination significantly, the extra costs cannot be justified from an economical viewpoint. Specific attention is given to the short project life (typically five years) of heap leach projects. A few numerical examples are presented to demonstrate the overall economic impacts of these costs on economic parameters.

Jan 1, 1990

By R. J. Sweigard, R. V. Ramani

The effects of postmining land use planning are addressed in this paper. These effects may include savings in reclamation costs and increased value of reclaimed land. However, this may result in greater planning costs and possible delays in production. Therefore, an economic analysis was undertaken in an effort to determine the importance of each potential result and to quantify the overall economic impact of postmining land use planning. A discounted cash flow analysis was performed using a surface mine cost model to analyze the sensitivity of selling price to changes in various postmining land use planning parameters. As a result of this analysis, it was determined that the profitability of a project is most sensitive to delays in production, particularly if the delay occurs after major investments have been made. Many methods have been proposed for evaluating postmining land use alternatives (Sweigard and Ramani, 1981). Both quantitative methods, such as benefit-cost analysis (Brock and Brooks, 1968), and nonquantitative methods have been proposed. The application of one specific analytical method is pursued in this paper.

Jan 1, 1988

By R. J. Sweigard

The effects of postmining land use planning are addressed in this paper. These effects may include savings in reclamation costs and increased value of reclaimed land. However, this may result in greater planning costs and possible delays in production. Therefore, an economic analysis was undertaken in an effort to determine the importance of each potential result and to quantify the overall economic impact of postmining land use planning. A discounted cash flow analysis was performed using a surface mine cost model to analyze the sensitivity of selling price to changes in various postmining land use planning parameters. As a result of this analysis it was determined that the profitability of a project is most sensitive to delays in production, particularly, if the delay occurs after major investments have been made. Many methods have been proposed for evaluating postmining land use alternatives (Sweigard and Ramani, 1981). Both quantitative methods, such as benefit-cost analysis (Brock and Brooks, 1968), and nonquantitative methods have been proposed. The application of one specific analytical method is pursued in this paper.

Jan 1, 1985

By B. P. Sullivan

This paper describes how the author projected the economic benefits of a proposed coal liquefaction project based in Pennsylvania. These benefits were assessed in a successful effort to garner government support for the project. The projections considered such issues as increases in employment, wages, and tax receipts to state and local government, plus other less-obvious benefits, such as site remediation. The paper explains how sponsors of similar projects can use economic projections in making meaningful and compelling presentations to federal, state and local authorities.

Jan 1, 2000

By J. F. T. Agapito

Significant economic benefits can result when rock mechanics is applied within a practical framework and integrated within the other engineering functions of the mine organization. This requires management support and understanding of rock mechanics as a practical tool to help attain high standards of safety, productivity and resource recovery. For such an approach, a long-term geotechnical program is needed in most operations to build an adequate data base and to ensure that design and ground control issues are handled in a cost-effective manner. This paper presents a summary of four case studies where significant economic benefits were realized with the help of rock mechanics. Although cost savings were not computed, the economic benefits are obvious and clearly impacted the mine operations favorably.

Jan 1, 1990

By J. F. T. Agapito

Significant economic benefits can result when rock mechanics is applied within a practical framework and integrated within the other engineering functions of the mine organization. Such application and integration requires management support and understanding of rock mechanics as a practical tool to help attain high standards of safety, productivity and resource recovery. For such an approach, a long-term geotechnical program is needed in most operations to build an adequate data base and to ensure that design and ground control issues are handled in a cost-effective manner. Best usage of rock mechanics in mining occurs when management recognizes the application as a long-term investment, where time is needed to realize good returns. The need for this approach is due to the difficulty in accurately predicting ground conditions ahead of mining. The practical application of rock mechanics must follow an iterative process of design and verification based on site-specific experience to account for geologic and mining impacts. Ground conditions experienced during mining must be used to check the initial mine design and, if necessary, to provide a basis for design modification. Such a practical rock mechanics program includes comparative experience, in situ instrumentation and numerical modeling. The program begins with the geologic site investigation and continues throughout the life of the mine. It is an integral part of mine planning and operation.

Jan 1, 1991

By F. M. Benavides

The mining complex being analyzed consists of four mines and two processing plants located in an area where there are several existing modes of transportation. Figure 1 shows a map of the general layout of the four proposed mines and the two existing processing plants. The mines are identified by the numerals "I" through "IV" and the plants by the letters "A" and "B". A proposed overland conveyor would collect the product from all four mines and convey it to Processing Plant A. Alternate transportation systems are as follows: Railroad transport from Mines I and II to Plant B; Highway trucking from Mines I and II to Plant A; Off-the-road truck haulage from Mine III to Plant B and from Mine IV to Plant A. River transportation from the mines to the processing plants was not considered in this study under the assumption that the high capital investments for the loading and unloading facilities, in addition to difficult traffic problems, would make this mode of transportation unattractive.

Jan 1, 1980

By Helmut Goehring

Surface mining has been used primarily where deposits of minerals were exposed or close to the surface. Surface mining can, therefore, be considered the oldest branch of mining. As the most accessible deposits became uneconomical because of the lack of suitable high capacity conveying systems, deep mining took its place. Only in the twentieth century was this trend reversed as high capacity production and conveying systems were developed. This rapid development was triggered by the steadily increasing demand for raw materials and fossil fuels, as well as by the ever increasing ratio between overburden and deposits.

Jan 1, 1982

By Ernst Raphael

Mechanical drives of belt conveyor drives have experienced a huge amount of improvements concerning technology, manufacture and product structure that reduced investment and maintenance cost significantly. Most of these improvements were of technological nature in the'70s and '80s of this century; whereas, the present decade requires products that meet technical excellence as well as commercial advantages such as quick delivery, low cost and reliable spare parts supply. The best approach to meet these requirements is a highly modular and standardized system of reliable components that cover all demands a conveyor drive might require.

Jan 1, 1998

By William R. Yernberg

What a difference a year makes. One year ago, the iron mining industry and the steelmaking industry in the United States were in trouble. Many companies were in bankruptcy, and talk of plant and mine shutdowns was rampant. At that time, it seemed difficult, if not impossible, to remain competitive with imported steel. In addition, the World Trade Organization declared as illegal the tariffs placed on imported steel. And many questioned the viability of the ironmining and steel industry in the United States. At that time, global economic conditions were the main contributors to the industry’s problems. However, since last year’s meeting, changes in global economics have actually helped the steel industry in the United States. Heavy global demand for steel has caused raw-material shortages worldwide. Much of the increased demand is a result of the economic boom in China. In addition, because of a weak U.S. dollar and higher international freight rates, steel imports into the United States have been reduced to about 50 percent of recent levels. These factors have contributed to a rebirth of the U.S. iron mining and steel industries.

Jan 1, 2004

By J. Girard-Dwyer, T. Camm

Direct costs such as medical, legal, administrative, and worker’s compensation costs, property damage, lost earnings, and lost benefits are typically used to compute the economic impacts of occupational injuries. However, there are also a number of less obvious, indirect costs that substantially contribute to the overall loss costs. In fact, for every $1 of direct costs an estimated $3 to $5 of indirect costs are also incurred. This paper presents a systems approach that incorporates engineering, economics, psychology, and sociology in order to evaluate the total value of investments in safety. By studying the interrelated system comprised of the injured worker, their family and coworkers, as well as the organizational structure that was the setting for the incident, a methodology can be developed that will more accurately capture the true costs of mine injuries.

Jan 1, 2004

By Wendi H. Cooksey

This paper examines two comminution circuits on a hypo­thetical gold ore deposit with both small-scale (1,000 short tons per day) and large-scale (35,000 short tons per day) production rates. The most appropriate circuit is dependent on the highest economic performance with a combination of crushing and grinding equipment to achieve the desired product size. The selected circuit is dependent on costs associated with project cri­teria, equipment selection and ore characteristics. Factors influ­encing the selection of the comminution circuit require system­atic evaluation to optimize plant performance and maximize eco­nomic return. The small-scale circuit economics responded best to three-stage crushing followed by a single-stage ball mill. The large-scale plant favors a primary crusher followed by SAG milling and ball milling. The conclusions from this paper indi­cate that each project must be evaluated separately to determine the most economic means of reducing the size of the ore.

Jan 1, 1998

By Alfred Jr. Petrick

Modelling of cash flows and calculation of net present value of rate of return over the expected life of a mine/processing unit continues to be the accepted basis for mineral investment decision-making. The computer and spreadsheet programs have greatly improved ability to perform sensitivity and risk analysis, hence our ability to deal with key analytical problems. These problems of cash flow analysis result from the necessity of forecasting an uncertain and risky future. Cash flow models begin with the critical assumption of a "design basis", then integrate all of the variables relevant to the investment decision including forecasts of price, cost, taxation, financial conditions, and company strategy. Alternate "scenarios" portray possible future outcome of the investment decision. The potential for straying from reality is enormous. The computer has eliminated the time consuming hand calculations from the cash flow analysis, but the analyst still struggles with the risk of trying to predict "how the project will really turn out".

Jan 1, 1991

By J. C. Agarwal

Major scientific discoveries cannot be programmed. New or frontier technology, however, can and should be planned. It is the vital force underlying the business strategy of a vigorous and profitable mining and metals company. Generally, a radical departure from existing technology is required to 1) Enhance the competitive value of ore reserves, i.e., to turn low grade or marginal reserves into competitive reserves. 2) To increase yield and decrease costs. 3) To decrease investment. 4) To increase mine life. 5) To improve product quality to meet market demands. The very definition of frontier technology implies that it is so different that the old plant, if already in use, will not be directly suitable to use the new technology. Therefore, a priori, we know that the commercialization of frontier technology would very likely involve new investment. The recommended technique of economic and technical analyses, I propose to call "Success Analysis.'' Simply stated, it forces us, by step- by-step procedure, to ask "what is needed to succeed in this particular project." Therefore, the first step is to identify what is meant by "success." The definition of "success" requires an agreement with top management or sponsors of the project as to what constitutes "success" in their minds as contrast to the technical people perception of "success." In general, top management would define success as meeting: 1) The technical objectives, i.e., technology being developed would produce the desired product at the acceptable quality. 2) Financial objectives, i.e., when commercialized, the project's capital cost, operating costs and return on investment are better than the projects they would normally fund. The return has to be better because new technology is inherently riskier. 3) Marketing objectives in that the project will produce product of acceptable quality in timely manner, i.e., scale-up to commercial plant would not cause undue delays in start-up and that large fix-up expenditure would not be required to protect the projected return on the investment. Many projects are started in the laboratory to develop "Frontier Technology" in mineral processing. Most of these efforts are never commercialized. There are many causes of these failures. The major causes are listed below: 1) Inadequate communication with the sponsors of the project so that project objectives are defined and agreed to by all. 2) Ill-defined technical problems. 3) Incomplete development of technology. This has two major components: a. Incorrect scale-up and engineering. b. Inadequate start-up and maintenance planning. 4) Incomplete and over-optimistic process economics. 5) Lack of understanding of the future behavior of the marketplace. 6) Failure to complete R&D effort by the time it is needed. 7) Incorrect projections of human resources required; that is, technical, managerial and operating. 8) Lack of realistic forecast of the expenditures required for commercialization of the R&D effort. These pitfalls can be avoided by comprehensive planning and the use of success analysis technique. The major elements in "Success Analysis" are: 1) Identification of the "need" for new technology. 2) Unbiased and complete scale-up engineering. 3) Acceptable economic feasibility with enough margin of error in the sale prices and operating costs to justify the inherent risks in frontier technology. 4) Timing for availability of investment capital and markets. Many failures in the development of frontier technology are preordained because the initial selection of the research project has been without adequate attention to the needs of the industry. Many very innovative hydrometallurgical processes for recovery of copper from concentrates were developed in the past twenty years. They have not adapted except to a very minor extent because they did not satisfy the success analysis criteria. The copper industry in North America needed a process to compete against high grade ores and to avoid

Jan 1, 1985

By J. M. Mutmansky, A. Wang

This paper defines the elements of a basic economic model for decision making when considering a methane drainage system for an underground coal mine. A drainage system entails significant capital and operating expense; hence the decision to utilize drainage must be made carefully. The model outlines the basic structure of decision making and considers the costs and benefits when the methane is marketed and when the methane is vented to the atmosphere. The effects on mine safety and the dust levels in the mine are also considered, both in a general format and as economic variables. Sources of information for executing this decision making are provided for an actual mine decision.

Jan 1, 1999

By A. Wang

This paper defines the elements of a basic economic model for decision-making when considering a methane drainage system for an underground coal mine. A drainage system will require significant capital and operating expenses; hence the decision to utilize drainage must be made carefully. The model outlines the basic structure of decision-making and considers the costs and benefits when the methane is marketed and when the methane is vented to the atmosphere. The effects on mine safety and the dust levels in the mine are also considered, both in a general format and as economic variables. Sources of information for executing this decision-making are provided for an actual mine decision.

Jan 1, 1997

By J. M. Mutmansky, A. Wang

This paper defines the elements of a basic economic model for decision-making when considering a methane drainage system for an underground coal mine. A drainage system will require significant capital and operating expenses; hence the decision to utilize drainage must be made carefully. The model outlines the basic structure of decision-making and considers the costs and benefits when the methane is marketed and when the methane is vented to the atmosphere. The effects on mine safety and the dust levels in the mine are also considered, both in a general format and as economic variables. Sources of information for executing this decision-making are provided for an actual mine decision.

Feb 24, 1997

By R. Brantley Sudderth

There are three broad categories in which most solvent extraction technology can be distributed?: 1) reagents, 2) equipment, and 3) systems. Reagents which are now used in commercial solvent extraction plants are of many chemical types, and each possesses certain properties which make it more economically desirable than another alternative. The equipment which is' used in solvent extraction plants for contacting the organic and aqueous phases and separating the same is varied. Most common to the industry is the mixer-settler unit which in itself, can be of varied design; but many new innovations in contacting and separating equipment have been recently introduced or are :now being studied. Each specific solvent extraction application will often dictate the type of contacting and separating equipment used. Obviously, the trend is toward smaller less expensive equipment which reduces the often expensive organic inventories necessary for most solvent extraction plants. The current thrust of .investigations in ancillary equipment is usually aimed at recovering organic from solvent extraction sludges or from aqueous streams exiting the process.6 This type of equipment helps to reduce the total organic losses from solvent extraction plants and thus reduce the operating costs. The term "systems" in solvent extraction applies to the manner in which a solvent extraction process is carried out. This manner is usually dictated by the properties of the reagent which is used, and it involves a tailoring of the equipment or the process flowsheet. Some of the things which can be tailored are: 1) The aqueous media -whether acidic or basic and what type of acid or base 2) Counter-current or single stage (co-current) contacting 3) EMF or pH control 4) Organic "crowding" alternative 5) Heating or cooling process streams Regardless of the type or extent of tailoring, efforts to do this are usually a result of the low cost of solvent extraction as a unit process.

Jan 1, 1977