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By R. Dewey

WHAT IS AI? It's very hard to say. Most researchers and practitioners disagree with nearly any attempted definition, but most would agree that A1 does deal with the development of computer-related methods o f problem-solving. Artificial intelligence is a discipline which seeks to emulate human anatomy and/or thought processes by applying computer science, electronics, and mechanical engineering to the development of natural language processing, machine vision, robotics, and knowledge-based expert systems. Integration of these four fields will someday produce the robots of today's science fiction. A1 addresses problems of structuring large amounts of knowledge and representing relationships with rules and semantic frameworks rather than with mathematical equations. A1 is convergent rather than divergent - - conventional conputer applications use relatively small quantities of input to generate large output, but A1 generally reduces large amounts of information to establish a few major conclusions. The development of A1 has prompted greatly increased efforts on the part of scientists and engineers to understand just how humans think, organize information, approach problem-solving, and form conclusions. Some of the more exciting and possibly far-reaching advances in A1 are coming in this more-or-less soft-science area. Thirty years of A1 research (dating from a 1956 conference at Dartmouth College at which the term A1 was coined) has already spawned many widespread, almost ordinary, products: window graphics, hand-held controllers (mouse). function menus, etc., all in an attempt to make computers and people more compatible. WHAT IS AN ES? A1 can be used to develop EXPERT SYSTEMS, which are computer programs or systems which contain knowledge and rules by which problems can be solved. or at least by which possible solutions can be suggested for very complex problems. A1 can be used to better define problems so that solutions can be found. An ES is designed not to process numbers, but to process information according to rules and logic derived from actual practice and experience. WHY AI? WHY ES? Companies are increasingly aware of the value of accumulated knowledge and experience in designing, building, operating, and maintaining the increasingly complex or expensive physical plants in any business. As knowledge branches out and becomes more specialized, the accumulated learning of a veteran operator or manager or engineer becomes a scarce resource well worth preserving. EXPERT SYSTEMS offer a means of doing that, reinforcing, not replacing, human capabilities.

Jan 1, 1987

By T. Braun

In 1911, a young mining engineer named Bartlett Thane assembled a large claim block, 4 miles southeast of Juneau, Alaska. Across the Gastineau Channel on Douglas Island, the Alaska Treadwell Gold Mining Company had, by 1904, produced gold valued at more than three times the purchase price of Alaska in 1867 (Kelly, 2010). Thane knew his deposit was lower grade than other mines or prospects in the area; however, if the deposit was developed on a large-scale, the trend and size of the deposit made the project potentially economic. In 1911, Thane developed a business plan for the project and successfully attracted investor interest. In 1912, Daniel C Jackling visited the property at the request of an east coast investment group. Upon inspection of 5 years of production records for the Perseverance Mine, Jackling saw an opportunity to apply the low-grade/high volume milling technology which was widely adopted to the copper porphyry deposits of the southwestern U.S. With a design capacity of 6,000 tons per day (5,454 tonnes/day), Jackling’s innovative mill design would require high volume underground mining methods and the power of two new hydroelectric projects. By 1915, the Alaska Gastineau Mining Company was in full production. Between 1915 and 1919, the mine and mill set production records for haulage and throughput. The hydroelectric projects proved to be successful engineering marvels. Operational difficulties related to ore grade, refractory elements and labor shortages interrupted production on an increasing basis. In 1921, the mining company permanently shut down operations. INTRODUCTION The Juneau Gold Belt begins at Windham Bay near the southern end of Stephens Passage and extends approximately 100 miles north to Berners Bay (Figure 1). The first large-scale and sustained underground mine, operated by the Alaska Treadwell Gold Mining Company in the late 1880’s, established the Juneau-Douglas area as the regional hub for transportation and development. In the mid-1890’s, the combined population of Juneau and Douglas reached approximately 3,000 residents, largely driven by employment and support demands of several small to mid-size underground gold mines in the region. By 1904, the value of the cumulative gold production of the Alaska Treadwell was five times greater than the purchase price of Alaska in 1867 (Kelly, 2010). By the turn of the 20th century, economic growth in the Juneau-Douglas area relied on supplies delivered from the lower 48. Passenger and freight shipping lines required 3 to 4 days to make the one-way trip from Seattle to Juneau. Established shipping routes required experienced crews due to navigation hazards and adverse weather conditions. Even with precautions at the time, steam ships and freighter vessels experienced breakdowns or encounters with natural hazards that resulted in damage or in some cases, sinking. Interestingly, with no roads or railroads connecting Juneau to other communities in southeast Alaska, Juneau still relies on seaborn shipping in the 21st century.

Jan 1, 2019

When defining a ?megaproject,? one need only to look at Seattle, WA?s State Route 99 Alaskan Way Viaduct replacement project. This $3.1-billion project is one of the largest of its kind in the world, and includes the use of the world?s largest tunnel boring machine (TBM). However, for as large as the Alaskan Way project is ? especially given the size of the TBM being used ? there are several other megaprojects underway around the world. Each has its own challenges that require innovative design techniques and financing arrangements, as well as variations on established tunneling technologies. So it was that 266 tunneling and underground construction professionals ? owners, contractors and engineers ? convened in Seattle in November for the Cutting Edge Conference on Megaprojects. This was the second joint meeting between the Underground Construction Association of SME and the North American Tunneling Journal. The first joint conference took place in April 2012 in Miami, FL and attracted 238 attendees. A third joint conference, to be held in 2014, is in the planning stage. The key reason Seattle was chosen as the site of the megaprojects conference is the Alaskan Way Viaduct project. Before the conference began, many of the attendees were able to visit the project and get a close look at Bertha, the Hitachi Zosen earth pressure balance TBM that is boring the tunnel. In addition, the conference included an exhibit that attracted 20 industry suppliers, up from 10 the previous year in Miami. The 25 presentations during the two-day conference covered all aspects of the tunneling and underground construction of megaprojects. Topics included the Alaskan Way Viaduct project; considerations for procurement and contracting; political risk, financing and insurance; international megaprojects; risk and risk sharing and project delivery. Each session concluded with panel discussions.

Dec 1, 2013

By James C. Barker

Alaska?s known mineral endowment includes some of the largest and highest grade deposits of various metals, including gold, copper and zinc. Recently, Alaska has also been active in the worldwide search for sources of rare earth elements (REE) to replace exports now being limitedby China. Driven by limited supply of the rare earths, combined with their increasing use in new ?green? energy, lighting, transportation, and many other technological applications, the rare earth metals neodymium, europium and, in particular, the heavy rare earth elements terbium, dysprosium and yttrium are forecast to soon be in critical short supply (U.S. Department of Energy, 2010). The REE, accompanied by other high field strength metals (such as Nb, Zr, Ti, Th, W), are associated with alkaline complexes of the Hogatza Belt in northwest Alaska; peraluminous tin-granites of the Ruby batholith in central Alaska and the Porcupine plateau in the northeast; and peralkaline intrusive complexes in the southwest Alaska Range west of Anchorage, and on Prince of Wales Island in southeastern Alaska. Limited evidence suggests that the heavy REE are associated with deposits that became more highly evolved by late hydrothermal processes.

Jan 1, 2012

By Cleland N. Conwell

Intermittent coal mining has been conducted in Alaska for over a century. The first report of coal in Alaska was by the Veechy expedition of 1826 and 1827. Whaling ships used coal from Corwin Bluff near Cape Beaufort during the early and latter parts of the 19th century. The first coal mine in Alaska -- and probably the oldest in the Pacific coast of North America -- was opened by the Russians at Port Graham on the southwest tip of the Kenai Peninsula. The mine was operated from 1855 until 1867 when the United States took possession of Alaska. From 1880 to 1915 coal mining was carried on intermittently at several localities including Unga Island, Herendeen Bay, Chignik Bay, Kachemak Bay, and several points along the Yukon River. Small coal mines along the Yukon River provided fuel for the river steamers traveling from St. Michaels to Whitehorse. The area of sustained coal production began with the completion of the Alaskan Railroad from Anchorage to the Matanuska coal field in 1916 and to the Nenana field in 1918. Coal production continued to increase until 1953, at which time the oil and gas fields in Cook Inlet were developed. Oil and gas eventually replaced- the Matanuska coal as a means of providing heat and power. The military in the Anchorage area shifted from coal to oil in 1967 causing a decrease in production. The increased demand for electric power in the Fairbanks area offset the decline and coal production started to increase. In 1969-1970 the Golden Valley Electric Association constructed a mine-mouth power plant 70 miles southwest of Fairbanks near Healy and a power line to Fairbanks. LOCATION OF COALS IN ALASKA Coals are found in all geographical subdivisions of Alaska. Coal in Alaska ranges in age from Carboniferous to Tertiary, and grade from lignite through anthracite. Figure 1 shows the locations of Alaskan coal fields. The only fields that have been developed extensively are the Matanuska and Nenana. Figure 2

Jan 1, 1972

By Sukru Sumer

East Pit Lake is an artificially created lake that resulted from the remediation and reclamation of surface coal mining operations at TransAlta Utilities' Whitewood Mine in the Wabamun area west of Edmonton, Alberta. The original excavation resulted from the creation of a mine end cut at the northern extent of the mining operation. The area of the surficial drainage basin that feeds East Pit Lake was relatively small. Therefore, most of the inflow and outflow from the lake would result from regional ground water flow. There was a concern about the lake's ability to provide a suitable habitat for a sportfish population. To determine the final recovered water level and rates of recovery, a two-dimensional ground water flow model was used. Data supplied by nested piezometers in and around the mine were used to calibrate the computer simulation and assess predicted recovery.

Jan 1, 1995

By Murat Budakoglu

Albite (NaA1Si308) is one of the important raw materials for the rapidly developing Turkish ceramic and glass industry. Prior to 1980, development of the ceramic industry in terms of raw material was dependent upon small-scale mining operations; in the last decade, these efforts have increased substantially. The aim of this study is to investigate the geochemical properties and distribution of albite occurrences in the Kocayayla district, which is about 12 km northeast of the town of Milas, about 50 km west of the city of Mugla in southwestern Anatolia. Kocayayla is also well known for its famous ancient city, Labranda. The field area is located in the Menderes Massif, which was formed by major tectonic events during the Late Proterozoic and subsequent periods. The target area was studied to prepare a detailed geological map (scale, 1:10,000), and to determine the formation of albite-mica-schist-quartzite borders in the host rock gneiss. To do this, systematic sampling of albite was done in the two main areas, the Sarikaya and Yumruta? regions. In the study area, albite zones are scattered within an area of about 20 km2, and they extend in a northeast-southwest direction; mica-schists and quartzite veins accompany these units. Mineralogical observations show that quartz is the main mineral associated with albite. In the ceramic industry, the albite + quartz assemblage is well known and is classified as "standard" or "super type," depending upon the content of TiO2 and Fe203. In this study, the Sarikaya albites (profile I) exhibit remarkably lower TiO2 (0.15% on the average) values contrasted to that of Yumruta? (profile 11; 0.24% on the average), whereas Fe203 values vary slightly from 0.076% to 0.085% in both regions.

Jan 1, 1999

By Y. J. Wang

The Hardy Cross iterative method is the most popular technique for solving a ventilation network problem with natural air splitting. This method traditionally solves each mesh equation by an approximation during each iteration. Thus, it is interesting from both a theoretical and a computational viewpoint to be able to solve for an exact solution to the mesh equation. Presented in this paper is an algorithm for computing the exact solution to the mesh equation with a variable fan pressure. The algorithm uses signum functions for air quantities to generate an alternative mesh equation in the form of a quadratic equation that has two solutions defined by the well-known quadratic formula. The condition that the derivatives of the alternative and the original equations must be the same provides a basis for the correct choice between the solutions.

Jan 1, 1998

The technical parametrization of reserves is a technique which has made an important contribution to the definition and the calculation of optimal mining projects. Its applications to a new open-pit optimization program have already been presented in various papers (François-Bongarçon and Maréchal (1976); François-Bongarçon and Guibal (1981)). The present paper gives a brief description of the general problem of parametrizing reserves before going into the details of the practical algorithms used in two typical cases, i.e. open-pit mining and mining between hanging wall and foot wall.

Jan 1, 1982

By Elliot Gillerman

The title of this paper implies the presence of silver, nickel, and cobalt minerals at, the Alhambra mine. Perhaps this should be amplified to include uranium, as pitchblende also occurs, possibly in mineable quantifies. A brief history of the Alhambra mine is of interest, both from a historical angle and as pointing up the importance of geology in the-present development. The Alhambra is one of several mines in the Bullards Peak or Black Hawk dis¬trict, ass it is more familiarly known, in southwestern. New Mexico, which was mined for silver in the 1880?s and 18901s, Silver valued between $500,000 and $1,000,000 was extracted from the mine in the 10 years prior to 1893, when operations ceased. Almost all the silver mined was native silver, although a small quantity of argentite was produced. Nickel and cobalt were recognized in the ores, but they were thought to be of no consequence.

Jan 1, 1959

The fundamental objective of mine plans are usually to maximize the mine profit by extracting ore at the lowest possible cost over the mine life while some technical constraints are satisfied. Since the costs associated with the operation of trucks and shovels as resources are significant, determining the optimum number and allocation of these resources is an essential issue. This paper presents a Mixed Integer Linear Programming (MILP) model to determine the optimum number of shovels and trucks required to meet the short-term plan?s goals. Also, the model takes into account the allocation of trucks and shovels to mining faces. This model minimizes operational costs, while attempting to meet the production demand and to satisfy technological constraints. This paper also analyzes the operations of trucks and shovels in an open pit mine using ARENA simulation software.

Jan 1, 2012

By Bee R. Waples

The Alimak Raise Method, using the Alimak Climber, has proven to be a new, fast, economical method of driving raises at the Iron King Branch of Shat-tuck Denn Mining Corporation, Humboldt, Arizona. In order to fully understand the advantages of the Alimak Raise Climber, it is necessary first to describe the basic machine; second, a complete cycle of a raise round; and third, the comparative speed and economy afforded the Iron King operation by using this new method of raise driving: The raise climber consists of a drilling platform that is raised and lowered by two 6.2 HP compressed air motors that drive, through roller chains and sprockets, three worm gears connected in series. These worm gears drive pinions which grip the guide rail rack. The worm gems are fitted with spring-loaded couplings so that a small rock or grit in the rack is passed over without disturbing the mesh between the rack and the other pinions.

Jan 1, 1961

By M. L. Leming

Introduction In the decades since silica gel was first identified in material exuding from cracked concrete, a great deal of research has been conducted regarding the chemical reactions between the alkalies found in portland cement and silica found in aggregates. The reaction is complex and one that is not yet completely predictable, especially from the point of view of developing specifications that are appropriate to all situations. This paper is not intended to be a rigorous review of the research findings but is an attempt to provide a simplified review of the mechanisms of the alkali-silica reaction (ASR), so that one can better understand the implications of the specifications, test results and effects on structures. In addition, the contractual relationships between the aggregate supplier and one of their major clients, the concrete supplier, will be examined with regard to the ASR. ASR basics Silica. Silica (silicon oxide) may exist in naturally occurring aggregates in various forms and in combination with a number of other elements. When the silica is completely crystalline, such as in quartz, it is chemically and mechanically stable. Quartz silica is impermeable and reacts only on the surface of the crystal, where the silicon and oxygen bonds are broken. Because the surface area per unit volume of most quartz is low, the reactivity is also low. Completely amorphous (noncrystalline) silica is, on the other hand, more porous and very reactive. The less "crystalline" the silica is in the aggregate, the more reactive. Silica that has melted and cooled quickly without recrystallizing, creating a glassy material (such as in certain volcanic aggregates), has a very low state of crystallization and will be much more reactive in an alkaline solution. Crystalline silica that has been transformed by heat and pressure may have a large quantity of strain energy stored in the crystal lattice. The presence of this higher energy will make the silica more likely to react. The "strained quartz" found in many metamorphic aggregates means that these aggregates are potentially susceptible to deleterious alkali silica reactivity, although the rate of reaction is typically much slower than with aggregates composed of or containing glassy or amorphous silicas. Another problem may exist with aggregates in which the silica is primarily crystalline. In aggregates such as chert, in which the silica exists as very fine crystals (i.e., crypto- or microcrystalline), the very high surface energies between the crystals contribute to alkali sensitivity. Therefore, the potential reactivity of an aggregate is seen to be a function of both the degree of crystallization of the silica in the aggregate and the amount of energy stored in the crystal structure, whether due to a large quantity of microcrystalline silica, a high strain energy stored in the crystals or some combination of these factors. The surface area per unit volume of the reactive silica will also affect the rate of reaction, because a larger surface area of reactive silica will have more opportunity to react. Obviously, the reactivity of the aggregate is also affected by the silica content. However, in this case, the results are not quite so obvious. A discussion of the effect of silica content will be postponed until after a discussion of the contribution of the cement paste. Paste characteristics. Hydrated portland cement is a very alkaline material with a pore solution pH typically in excess of 12. The alkaline environment of moist concrete provides an ideal place for noncrystalline or cryptocrystalline silica to react. However, not all alkalies are equal in their effects. Calcium compounds react with glassy silica to form calcium silicate hydrate, commonly abbreviated C-S-H a poorly crystalline material that can occur in several forms and chemical compositions. C-S-H was at one time called tobermorite gel, because it was chemically similar to the naturally occurring crystalline mineral tobermorite and because it had a gel-like (noncrystalline) structure when viewed under an optical microscope. The formation of C-S-H is the basis for both portland cement hydration and reaction with, for example, fly ash. C-S-H is relatively stable. Although drying will cause some shrinkage and rewetting will cause some expansion, the volume stability of the C-S-H is very good compared to the volume stability of most alkali silica gels. Alkali silica gels with high sodium contents, for example, are nonstable compared to C-S-H.

Jan 1, 1997

By M. L. Leming

The mechanisms of Alkali-Silica Reactivity (ASR) are briefly reviewed, test methods are examined, and typical specifications are discussed. In addition, views on responsibility of the aggregate supplier regarding specifications are presented.

Jan 1, 1995

By Xiaolong Bi, Shaohua Luo, Longjiao Chang, Shiyuan Cao, Jianan Liu

iliary agent was proposed. The mineralogical transformation and silicon extraction kinetics of laterite nickel ore in alkaline hydrothermal treatment were studied. The effects of reaction temperature (175 ~ 250℃), molar ratios of sodium hydroxide to ore (1.05 ~ 1.2:1), and laterite nickel ore particle size (44 ~ 178 μm) on the extraction ratio of silica were investigated by using the shrinking core model. The results show that the extraction ratio of silica increases with the increase of reaction temperature, sodium hydroxide to ore molar ratio, reaction time, and the decrease of raw ore particle size. The kinetic analysis shows that the separation of silica in laterite ore can be described by internal diffusion model. The apparent activation energy (Ea) of the reaction was 8.87 kJ mol− 1, and the kinetic modeling was established.

Dec 2, 2021

By P. N. H. Bhakta, X. P. V. Lei

The U.S. Bureau of Mines developed an alkaline oxidative pretreatment to increase the recovery of gold from refractory sulfide ores containing arsenopyrite (FeAsS) and/or pyrite (FeS2). Pretreatment of a low grade ore containing 0.4% FeAsS, 3.5% FeS2, and 2.74g/mt Au with 1.2m NaOH, 40 psig o2, 100° C, and 4 hr in a 2-L autoclave resulted in 94 to 96% sulfide oxidation. cyanidation of the pretreated residue resulted in 88% Au extraction compared to <20% Au extraction for untreated ore. Cyanide consumption was 0.25 kg NaCN per metric ton of ore. A flowsheet for treating sulfidic low-grade gold ore is proposed.

Jan 1, 1990

By Stanley Lefond

The health of the industrial minerals industry appears to be improving year by year. In fact, preliminary information suggests that only three commodities (asbestos, bromine, and sulfur-other) failed to show a production gain in 1984 over 1983. In 1983, 10 commodities failed to post gains and six remained constant. The total value of industrial mineral production in 1984 was $16.7 billion, up $1.4 billion from 1983. Cement, clays, gypsum, and crushed stone production increased. Since these are used in housing and construction, this suggests these industries are moving out of their recent doldrums. Barite and clay production also improved in 1984. Local US barite production, however, still has a long way to go to attain the 1981 high of 2.6 Mt (2.9 million st). Barite imports remain high. But they are not as high as the 1982 importation of 2 Mt (2.3 million st). Bentonite production in 1984 increased 20% in volume and 25% in value over the previous year. This suggests improvement in the drilling industry and an increase in demand for iron ore pelletizing grades. All in all, the industrial mineral industry is alive and well. And it shows signs of great improvement in the next few years. Many thanks to those industrial mineral technical committee members for their assistance in assembling this industrial minerals review: M. F. Dibble, H. W. Allen, G. H. Gallup, S. G. Ampian, D. W. L. Spry, H. G. Fleshman, and L. J. Czel.

Jan 5, 1985

By J. Humphrey

Introduction The weight of a Mining Truck can be affected by field modifications, the selection of items like tires, rims or even the conditions in which it operates. Truck performance and the compliance with a number of ISO standards, e.g. braking, steering and ROPS are dependent on truck weight. It is critical that truck owners understand the impact of changes in weight1. What makes this even more difficult for owners to evaluate is that there is no standard terminology or definitions for Mining Truck weights. This paper discusses and defines weight terminology, how it applies to performance and standards and the impact on the application of Mining Trucks.

Jan 1, 2007

By A. G. Yapo, T. W. Camm

"All-in sustaining cost is a metric used by mining companies to reflect the cost of gold mining in a consistent format useful to both investors and mining professionals. Cost reporting focused on the direct cost of mining and processing ore was summarized in the non-GAAP cash cost developed by the Gold Institute in 1996. In 2013, a group of mining companies, working with the World Gold Council, developed a more inclusive approach to reporting costs designed to solve the dilemma of showing a more comprehensive reflection of recurring costs involved in producing gold, without discouraging investors. INTRODUCTION Mining today plays a key role in the development of our civilization as a source of essential raw material and provider of essential fuels, producer of jobs, and a factor in support of the international balance of monetary payment (Camm, 2014). Professionals in mining locate, develop, design and manage ore deposits in an environmentally safe and profitable manner. As mineral deposits become increasingly scarce, new challenges face the industry. A current trend is to an increased emphasis on underground mining techniques for deeper deposits. Operations are safer today than before as companies understand better their work environment and the importance of mining responsibly. A continual challenge for the industry is accurately reflecting the costs and selling price of ore. An enduring characteristic of mining is the situation where the market typically determines the price of a commodity; the main control a company has on the bottom line is to control the cost of production. An attempt to bring light and clarity on the cost of their business will give a better idea to investors on the true profitability of the mining business. Gold producers face this struggle to accurately reflect the cost of production while also seeking to attract the interest of the investment community (Hill, 2013). In order to have a consistent format to report on their production costs, leading gold producers through their alliance inside the World Gold Council (WGC), worked on the adoption of a new cost framework: the All-in Sustaining Cost (AISC) and All-in Cost (AIC). Since 1996, the traditional cash cost reporting has focused only on the mining and processing costs incurred in mining an ounce of gold, which included the costs of goods sold (labor, energy, and consumables costs) and royalties (Table 1). But cash cost reporting ignores many important aspects, like sustaining capital, general and administrative expenses, and site rehabilitation at the end of the mine life (Whelan, 2013). The cash cost was used to attract many investors into the business. In fact the high gross margin (sales minus cash costs) has been promoted the past decades by the industry instead of the net or operating margin. As a result, even when the gold price was high, nearly $1900 per ounce in August 2011, gold producers were not reporting excessive profits in their cash flow / income statements, to the disappointment and incomprehension of investors (Milstead, 2014). The truth was simply that the other costs omitted in the traditional cash cost were reducing the apparent profits."

Jan 1, 2017

By A. G. Yapo, T. W. Camm

"Mining plays a key role in the development of modern civilization as a source of essential raw materials and provider of essential fuels, producer of jobs and a factor in support of the international balance of monetary payment (Camm, 2014). Professionals in mining locate, develop, design and manage ore deposits in an environmentally safe and profitable manner. As mineral deposits become increasingly scarce, new challenges face the industry. A current trend is to an increased emphasis on underground mining techniques for deeper deposits. Operations are safer now than before as companies understand better their work environment and the importance of mining responsibly.A continual challenge for the industry is accurately reflecting the costs and selling price of ore. An enduring characteristic of mining is the situation where the market typically determines the price of a commodity; the main control a company has on the bottom line is to control the cost of production.An attempt to bring light and clarity to the cost of their business will give a better idea to investors on the true profitability of the mining business. Gold producers face this struggle to accurately reflect the cost of production while also seeking to attract the interest of the investment community (Hill, 2013). In order to have a consistent format to report on their production costs, leading gold producers, through their alliance inside the World Gold Council (WGC), worked on the adoption of a new cost framework: the all-in sustaining cost (AISC) and all-in cost (AIC).Since 1996, the traditional cash cost reporting has focused only on the mining and processing costs incurred in mining an ounce of gold, which included the costs of goods sold (labor, energy, and consumables costs) and royalties (Table 1). But cash cost reporting ignores many important aspects, like sustaining capital, general and administrative expenses and site rehabilitation at the end of the mine life (Whelan, 2013). The cash cost was used to attract many investors into the business. In fact, the high gross margin (sales minus cash costs) has been promoted in past decades by the industry instead of the net or operating margin. As a result, even when the gold price was high, nearly $61/g ($1,900/oz) in August 2011, gold producers were not reporting excessive profits in their cash flow/income statements, to the disappointment and incomprehension of investors (Milstead, 2014). The truth was simply that the other costs omitted in the traditional cash cost were reducing the apparent profits.The disconnect led to a need for more accurate cost reporting in order to win back investor confidence and provide better understanding of gold mining economics. In 2012, the senior gold mining companies, including Gold Fields, Barrick Gold Corp. and Newmont Mining Corp., worked with the WGC to develop a new measure. This resulted in the June 2013 publication of the new framework AISC and AIC, which has been widely embraced by the sector since Jan. 1, 2014 (WGC, 2013).The adoption of the new cost template would have the dilemma of showing the real profitability of gold mine properties, which might alleviate taxes from governments and legislators, but it might also scare off investors toward more lucrative industries if not winning back their confidence."

Jan 9, 2017