MODELS FOR OPERATIONAL CONTINUITY OF A PRECIOUS METAL MINE UNDER FLUCTUATING COMMODITY MARKET

• Ajaka, E. O

  Federal University of Technology, Akure, Nigeria

• Omotehinse, A. O

  Federal University of Technology, Akure, Nigeria

• Kaunda L

  University of Namibia, JEDS Campus, Ongwediva, Namibia

Most precious metal (gold, copper) exploitations around the world normally operate mine and processing plant together because the economy of the metal production depends largely on the cost of mining and processing. Thus, mine and plant operations must be well integrated because the failure of one will affect the other and impede the success of the downstream metal extraction and refining processes. Many mines have been observed to suspend operations when the commodity (metal) price does not bring enough returns on investment as projected which is usually because of the low nature of the in-situ or natural grades of these resources and fluctuations in metal prices. This implies that to a good limit; the commodity price dictates the continuity of mine and plant operations. This article therefore intends to provide models that ensure continuity of operation even with fluctuating commodity price. The dependency of plant feed grade or resource cut-off grade on the commodity price was reviewed and mathematical models were developed from mine and plant variables such as ratio of concentration, enrichment ratio, plant feed grade, excavation plan, product weight and grade, commodity price, mining, processing and sundry costs, feed weight and value loss to integrate mine, plant and market. Data obtained from a gold mine was used to test and validate the models. The result is that using the models, material of constant grade is prepared as feed for the processing plant from different ore grades through blending, dilution and upgrading such that mine and plant operations will continue economically regardless of commodity price variation. The concept of this article was derived from observation of the unstable operations of some precious metal mines as a result of market fluctuations. Applying the models as recommended will ensure that mine and plant operations continue economically regardless of commodity price variation.   

1. Ajaka, E. O, Federal University of Technology, Akure, Nigeria

   Department of Mining Engineering, School of Engineering and Engineering 

    

2. Omotehinse, A. O, Federal University of Technology, Akure, Nigeria

   Department of Mining Engineering, School of Engineering and Engineering Technology

    

    

3. Kaunda L, University of Namibia, JEDS Campus, Ongwediva, Namibia

   University of Namibia, JEDS Campus, Ongwediva, Namibia

    

Copyright (c) 2023 FUTA JOURNAL OF ENGINEERING AND ENGINEERING TECHNOLOGY

This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Copyright

With the submission of a manuscript, the corresponding author confirms that the manuscript is not under consideration by another journal. With the acceptance of a manuscript, the Journal reserves the exclusive right of publication and dissemination of the information contained in the article. The veracity of the paper and all the claims therein is solely the opinion of the authors not the journal.