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By Y. P. Chugh, R. F. Roethe

Surface coal mining productivity in the US and Illinois has declined since 1969. The US Department of Energy conducted an analysis in 1980 of the causes of declining productivity in different states. This paper presents a detailed analysis of changes in overall productivity and productivity in different functions, such as overburden preparation and stripping, reclamation, and coal handling, from 1970 to 1982. Statisical analysis techniques, including multiple regression were used in the study.

Jan 1, 1985

By T. S. Maio, J. G. Mansanti

In 1978, Ozark Lead Co. made the decision to expand the capacity of its mine/mill complex by 33%. The objectives of the expansion were to increase mine production capacity by 1.8 kt/d (2000 stpd), increase lead metal production by 21.8 kt/a (24,000 stpy), and to construct new facilities and modify existing equipment to accommodate increased production. This paper gives a brief explanation of the equipment installed and the overall production and metallurgical benefits realized from this expansion. The expansion was completed in the second half of 1980 with all equipment debugging and fine tuning completed by the first quarter of 1981. Concentrator modifications and improvements were basically restricted to four areas: materials handling, automation of the mill grinding circuit, increased flotation capacity, and concentrate dewatering.

Jan 1, 1985

By J. H. Canterford

The adsorption of uranium onto Wyoming bentonite was measured in carbonate media over the pH range 8 to 11. Uranium was removed from solution onto the solids by a rapid reaction, proposed to be adsorption of the anionic uranyl tricarbonato complex onto edges of the clay platelets, and a slow reaction that may be precipitation of a hydroxide. The changes in uranium content of the aqueous and solid phases of a uranium ore carbonate leach slurry were also measured as the slurry was progressively diluted. There was an increase in the uranium content of the solids as the pH of the suspension was lowered, as observed with the Wyoming bentonite. Results indicate the conditions that should be met with respect to pH control to prevent the problem of excessive uranium adsorption in the counter-current decantation washing circuit of a conventional leaching process, as well as in the leaching and restoration phases of carbonate solution mining.

Jan 1, 1985

By T. A. Ring

The bed filtration of colloidal particles has been modeled by performing a differential particle balance. The balance considered the localized particle deposition rate to be the sum of three rate resistances: mass transfer to a region near the surface, adhesion onto a partially filled surface, and resuspension from a partially filled surface. The differential particle balance equations, one for the free particles and one for the adhered particles, were solved by a finite difference algorithm. Results of this model are compared to experimental filter breakthrough curves.

Jan 1, 1985

By H. A. Burgman

During in situ uranium mining using ammonium bicarbonate lixiviant, the ammonium exchanges with cations on the ore's clay. After mining is complete, the ammonium may desorb into post-leach ground water. For the particular ore studied, other elements (uranium and selenium) that are mobilized during the leaching process, have also been found in post-leach ground water. Laboratory column tests, used to simulate the leaching process, have shown that aluminum chloride can rapidly remove ammonium from the ore and, thus, greatly reduce the subsequent ammonium leakage level into ground water. The aluminum chloride has also been found to reduce the leakage levels of uranium and selenium. In addition, the aluminum chloride treatment produces a rapid increase in permeability.

Jan 1, 1985

By J. B. Goddard

Crystallization of ammonium paratungstate (APT) is frequently the last effective purification step in producing high-purity tungsten. However, crystallizer mother liquors are often several times higher in tungsten than predicted by the solubility of APT. The formation of heteropoly anions, particularly those containing phosphorus and silicon, is largely responsible. Solubility of tungsten in APT mother liquor can be linearly correlated with the concentration of these and other impurities. The problem can be overcome by direct treatment of the crystallizer feed solution with aluminum sulfate. By appropriate treatment, the aluminum hydroxide flocculates and is easily filtered, resulting in a purified low-aluminum crystallizer feed from which high APT yields can be attained.

Jan 1, 1985

A method has been developed to remove calcite from the leaching circuit in the uranium in situ leaching system. The process involves injecting the leachate and a pH control agent tangentially into an inverted cone reactor containing calcite seed catalyst. The leachate can be treated at high throughput to obtain clear effluent containing 5 ppm or lower Ca. Both lime and ammonia are effective pH control agents and consumed according to stoichiometry.

Jan 1, 1985

By D. M. Deason, G. Y. Onoda

Phosphate clay wastes, as currently produced, leave montmorillonite clay in a highly dispersed and disintegrated form. Alternative processing, where the extent of swelling and self-disintegration of such clays is controlled or limited, may result in improved settling and consolidation behavior. In this study, a method to control montmorillonite dispersion, through preservation of clay tactoids, was examined. Through this process, significant improvements in settling rates and sediment solids concentrations were achieved in both pure clay systems and on simulated phosphate clay wastes.

Jan 1, 1985

By K. J. McGrew, J. W. Murphy

Introduction Maximization of profit consistent with environmental protection is the principal goal of new applications development for any conventional or in situ mining technique. Efficient evaluation of all the parameters that contribute to mining costs and production hinges on proper design and evaluation of testing programs and data. The program discussed uses several field and laboratory procedures to estimate ore deposit characteristics and optimize lixiviant compositions. Ore characteristics and lixiviant compositions are then used in a long path leaching test (stream tube test). Stream tube test data are analyzed by mathematical models with computer assistance to predict such wellfield rate parameters as target metal production, lixiviant consumption, and restoration. When these predicted rates are combined with market values for target metals, capital expenditures, prices of lixiviant chemicals, and other economic variables (labor costs, power rates, and licensing fees), an assessment of the relative feasibility of various proposed mining plans is possible. The flowsheet in Fig. 1 illustrates this process. [ ] Field and Laboratory Procedures In general terms, the procedures followed in the evaluation of an in situ leaching application aim at accomplishing: •rapid leaching and maximum recovery of the target metal in a marketable form, •low consumption of lixiviant chemicals, •unquestionably satisfactory restoration of the mined aquifer, and •minimization of capital and operating costs for the above through development of an optimum mine plan. Keeping these goals in mind, the following minimum test program is generally recommended. Geology •Estimate of ore reserves and their variability. •Average disequilibrium value for uranium deposits. •Ore thickness, depth to ore, water level, degree of confinement, and consolidation. •Characterization of quality and quantity of other ore deposit constituents (e.g. sulfide minerals, ion exchange parameters). Hydrology •Single well pump and injectivity test. •Downhole vertical permeability test to compare flow rates of barren and mineralized formations. •Groundwater quality as it may affect licensing, hydro metallurgy, and restoration. Hydrometallurgy • Flask or autoclave tests for optimization of lixiviant parameters and determination of specific reaction rate constants. • Flask or autoclave tests for assessing amenability of lixiviant solutions with ore, consumption of lixiviant, stability of metal in solution contacting ore, and environmentally important species mobilized. • A long-path leach test for modeling the behavior of the lixiviant solution flowing through a long mineralized streamline (stream tube testing). •Metal recovery tests from lixiviant solutions (ion exchange, electrowinning, etc.). •Lixiviant regeneration tests. •Environmental restoration tests.

Jan 1, 1985

By T. W. Turk, S. A. Sass

The engineering design features of the Mercur Gold Project crushing, grinding, carbon-in-leach, bullion, reagent, and tailings disposal areas will be discussed in this paper. It presents a project overview and flowsheet along with selected design alternatives. During the engineering phase, major equipment and other features were selected to optimize design within site location and environmental constraints. The project team organization and procedures were adopted to accommodate multiple optimization studies while maintaining a tight engineering schedule.

Jan 1, 1985

By K. A. Natarajan, S. C. Riemer, I. Iwasaki

The relative significance of corrosive and erosive wear in magnetic taconite grinding is examined. The influence of different types of aeration (nitrogen, air, and oxygen) on ball wear was established for mild steel and high carbon low alloy steel balls. Ball wear data from dry and wet grinding tests are compared with those obtained in the presence of an organic solvent that does not promote electrochemical corrosion. Marked ball grinding tests and electrochemical measurements involving ball material and magnetite electrodes indicate that contribution from oxygen toward wear (corrosive wear) is relatively small, and abrasive wear appears to be significant. Rheological properties of the slurry appear to have an important bearing on the abrasive wear of grinding balls.

Jan 1, 1985

By D. N. Hedges

This paper discusses the actual recovery and installation of a longwall in a bituminous coal mine in western Pennsylvania. The coal bed mined is in the Lower Freeport seam, which averaged 1.07 m (42 in.) in height locally. Drainage from the mine is about 13.25 ML/day (3.5 million gal per day) of water. This water deteriorates the mine's predominately fire clay bottom making it extremely difficult to move equipment. Support removal is accomplilshed by pulling the 5.44 t (6 st) shields out under their own hydraulic power and transporting them by track 8.05 km (5 miles) to the next longwall panel. This paper also discusses the changes that will be made to aid in the succeeding longwall recoveries and installations.

Jan 1, 1985

By J. W. Mills

This paper's aim is to demonstrate, by reviewing findings and conclusions of earlier authors and through recording and interpreting the outcome of recent laboratory study of the ores, that the ores around the Gem stocks are metamorphosed equivalents of common siderite-sulfide ores far from the stocks, as was first proposed by Hershey (1912, 1913). That is, all the ores probably have the Precambrian age of 1250 million years reported by Long et al. (1960). Those near the Gem stocks, however, were extensively metamorphosed in Cretaceous time during the emplacement of stocks so their resemblance and relation to other veins in the district are camouflaged.

Jan 1, 1985

By N. R. MacMillan

INTRODUCTION The Bullmoose Coal Project is part of a major development in northeastern British Columbia which comprises a new rail line, a new townsite, powerline, highway, the upgrading of the Canadian National Railway's main line, a new coal port at Prince Rupert and two new coal mines, the Bullmoose mine and the Quintette mine. The total investment by all parties is estimated to be in excess of $2.6 billion and made up approximately as follows : [Table No. 1 $ Millions - Quintette Coal Limited 950 Teck-Bullmoose Coal Inc. 275 Canadian National Railway Company 800 6 British Columbia Railway Company Port at Prince Rupert 280 Townsite, Roads 6- Power ] The new infrastructure is intended to serve not only the Bullmoose and Quintette coal projects but also eventually a number of other coal properties in northeastern British Columbia. The Bullmoose project is structured on a joint venture basis as follows : [Table No. 2 Teck Corporation 51% Lornex Mining Corporation Ltd. 39% Nissho Iwai Coal Development 1 0% (Canada) Ltd. -- 100% ] The mine has a capacity of 2.3 million tonnes of clean coal per year. In the initial years 1.7 million tonnes will be metallurgical coal and 0.6 million tonnes thermal coal. After the first three years of operations the annual production of metallurgical coal will increase to an average of approximately 2.1 million tonnes and the production of thermal coal will decrease to an average of approximately 0.2 million tonnes. At this level of 2.3 million tonnes annual production, the Bullmoose mine has sufficient reserves for at least 26 years of production. History Brameda Resources Ltd. commenced coal exploration in the Bullmoose-Sukunka area in 1969. Teck obtained an option on the Bullmoose coal licences in 1970 and started surface exploration and diamond drilling in 1971. Teck earned a 50% interest in the property, and thereafter expenses were jointly financed by Teck and Brameda. In 1981 Brameda merged with Teck making Teck the sole owner. The initial phase of the exploration program, which was completed in 1975, included 7,200 meters of diamond drilling in 35 holes. During 1976 and 1977, detailed exploration and test work were carried out on the South Fork and West Fork areas where multiple seams close to surfaces indicated the potential for large tonnages of strippable coal. In those two years, work included road construction, detailed mapping and trenching to outline the coal seam traces at the surface, 6,300 meters of diamond drilling in 80 holes, and 300 meters of underground bulk sampling from seven adits. Washability tests and analysis work were carried out on the drill cores and adit samples, and pilot plant washability studies were undertaken. In 1978 and 1979 Teck engineers prepared open pit mining plans and production schedules and Kaiser Engineering was retained to prepare a layout of the plant preparation facility. A feasibility study prepared by Teck's engineering group in January 1982 was the base document used by the Lenders in assessing the technical and economic viability of the project. Property Location The property lies some 650 kilometers northeast of Vancouver, and 87 kilometers south by road from the village of Chetwynd. The Sukunka property (British Petroleum) adjoins to the north, the Mount Spieker property (Ranger Oil Option) adjoins to the east, and the Quintette property is located to the southeast.

Jan 1, 1985

By Leo J. Miller

It is both an honor and a pleasure for me to be the keynote speaker for the Paul F. Kerr's Symposium on Applied Mineralogy. Professor Kerr was a man for all seasons to his students, and he treated all students as distinct individuals. Philip Bethke in his memorial to Dr. Kerr summed up our remembrance best by stating that "We have lost our most successful educator-administrator-scholar, who was our steadfast teacher-counselor-mentor-friend." His unique trait was the ability to bring out the best in a variety of individuals In order that their performance was at the peak of quality.

Jan 1, 1985

By Christie A. Callender, Harry M. Dahl

The Hobson uranium deposit is located in Karnes County, Texas, along the prominent south Texas uranium trend. The uranium mineralization occurs in the Deweesville Sandstone of the Whitsett Formation of the Eocene Jackson Group. The host rock is a friable, fine-grained, well-sorted, highly porous and permeable sandstone interpreted to be an ancient beach deposit. The sandstone contains significant volcanic constituents and ranges in composition from arkosic to tuffaceous. Locally, the host sandstone contains hard, dense opal cement. Bentonitic shales underlie and overlie the mineralized sandstone unit. Geometrically, the Hobson uranium-bearing zone resembles an elongated roll front type deposit. Chemical uranium values compared with gamma ray equivalent uranium values indicate that the uranium has been dissolved from the updip side and precipitated on the down- dip side of the roll front. Details of the uranium mineralization were studied using thin section microscopy, autoradiography, x-ray diffraction (XRD), scanning electron microscopy (SEM) and energy dispersive spectroscopy (EDS) techniques. The uranium mineralization occurs in the pores of the sandstone, as grain coatings and as replacement of sand-size and smaller grains. It is commonly associated with pyrite and other opaque minerals. Other favored hosts for uranium (other than pore openings) appear to be clay aggregates, altered rock and glass fragments, and carbonaceous plant debris. Aggregates of coffinite were identified by XRD and SEM/EDS analyses. Some uranium mineralization also appears to be dispersed and is postulated to be adsorbed on the clay and carbonaceous matter.

Jan 1, 1985

By Fred H. Brooks

INTRODUCTION The toughest job for any mining company, large or small, is to locate and identify a property which it feels has the potential for development and which can be tied up through location, lease or option under terms within their means. In the case of a small company, this precludes grass-roots exploration with its attendant high costs and the extended time required to develop a prospect to the point of being a project. The small mining company, therefore must limit its search to known properties which, for various reasons, have been shut down or were never thoroughly developed at the time of discovery. These types of prospects are located either through literature search, familiarity with many mining areas in general, or through contacts and submittals from a variety of sources. In order to develop a marketable presentation to any investor, the basic requirements are the same: - the property must demonstrate the potential to provide a satisfactory return on investment - the evaluation study must be thorough and professionally developed. In order to promote any mining property, it is first necessary to know what you have. INFORMATION DEVELOPMENT We normally begin with a detailed literature search of the district, assembling all available data on the basic geology, production records, and old reports of this or neighboring properties and any other information which can be found. This will aid in the general understanding of the basic geology and hopefully allow a fairly detailed knowledge of the specific occurrence. With this information one can begin to speculate on the reserve potential and develop some high and low figures for estimating purposes as to mining method, production rate, metallurgy and begin developing estimated capital and operating costs. Cashflow runs are developed for varying tonnages (high and low), estimated high and low grades of metal and at differing market prices for the product. FINANCE CONTACTS Brooks Minerals, from its inception, has been an operating company and we have been able to assemble a small but experienced operating staff. For this reason we try to put together projects and joint ventures where we can be the operator and maintain a certain degree of control. Whether due to familiarity with many colleagues in the mining industry or due to unfamiliarity with the banking houses and securities markets, the approach to raising finance has generally been to contact the established mining companies. This requires a familiarity with the corporate philosophies of these companies with respect to their development goals and financial capabilities. A common mistake is to shotgun the proposal to many companies of different sizes and goals in hopes that one might be interested. It is more beneficial, when possible, to tailor a proposal to each company, stressing the positive points where the specific proposal best meets their interests. One company may be more interested in a development program with fairly certain and conservative return potential. The property may well contain both possibilities but a lack of understanding of the individual company's method of operation could spoil the deal. In another instance, one company may look at a property as a moderate income producer over an extended life, yet a second may elect to high-grade the deposit over a shorter period in order to provide early cash flow or take advantage of a favorable market situation. MAKING THE DEAL There are as many types of deals as there

Jan 1, 1985

By Willard C. Lacy

Survival of the mining industry as a viable economic entity in the United States is being seriously threatened by declining grades of ore reserves, rising operational and capital costs, and increased governmental taxes, restrictions, and subsidizing of third world competition. Discovery of major high-grade deposits is becoming increasingly unlikely. International competitiveness of the U.S. deposits will depend upon 'Yankee Ingenuity, ' innovations in mining methods, metallurgical treatment, and financial arrangements, and a viable national strategy. This will require not only effective management for control of operations, but management that encourages breakthroughs in technology, financing, labor relations, and in public and governmental understanding. The mine geologist and the exploration geologist both have important roles to play in all aspects of this fight for survival of the industry.

Jan 1, 1985

By Kyle Wightman

INTRODUCTION CRA Limited is the largest mining group in Australia by value of sales and the second largest company in Australia in terms of share market capitalisation. In the past 25 years, CRA, its predecessors and affiliates have been involved in a number of mining and further processing developments in Australia and elsewhere. Many of these have been financed using project financing techniques. These include Comalco's development of the Weipa bauxite deposits in Northern Queensland in the late 1950's, the Hamersley iron ore developments in the Pilbara region of Western Australia in the mid 1960's, the Queensland Alumina Limited alumina refinery in Gladstone, Queensland, at about the same time, and the Bougainville copper project in 1969/70. In the past three years CRA has again utilised project financing techniques to fund its Tarong steaming coal project in Queensland, the Blair Athol steaming coal project also in that State and CRA's interest in the Argyle diamond project in the Kimberley region of Western Austrlia. PROJECT FINANCE DEFINED Nevitt Definition Nevitt's is the most frequently quoted definition - "A financing of a particular economic unit in which a lender is satisfied to look initially to the cash flows and earnings of the economic unit as the source of funds from which a loan will be repaid and to the assets of the economic unit as collateral for the loan." Risk and Balance Sheet Treatment It is important to focus in more detail on two aspects of project financing, risk and balance sheet treatment. The assessment of the various elements of risk in a project and the sharing of that risk between sponsors and lenders is the most critical feature. At one end of the spectrum is full absorption of risk by the sponsor(s). This can be described as "on risk" or "on credit" or "full recourse" to the sponsor(s) and is effectively a corporate financing. At the other end of the spectrum the lenders absorb the whole risk in a non-recourse financing which is "off risk" or "off credit" for the sponsor. The other aspect is the sponsor's balance sheet treatment. If the balance sheet of the economic unit undertaking the project and the financing need not be consolidated into the balance sheet of the sponsor (because ownership does not exceed 50%) then the financing may be described as off-¬balance sheet. If consolidation is required then the financing is described as on-balance sheet. Most project financings involve some recourse to the sponsor, i.e. they are limited recourse. Very few are non-recourse or off credit to the sponsor. Limited recourse financings may be on-balance sheet although many may also be off-balance sheet insofar as consolidation is concerned. However, sponsor support may very well be a contingent liability to the sponsor and require disclosure by way of note to the balance sheet should consolidation not be required. CORPORATE FINANCE CONTRASTED A financing which is on credit or full recourse to the sponsor, whether it is directly borrowed or guaranteed by that sponsor, is a corporate financing. Lenders will tend to base their credit assessment on a historical assessment of the sponsor's activities and its financial results rather than an assessment of the project or a detailed assessment of the future activities and prospects of the sponsor. PROJECT FINANCE - A BORROWER'S PERCEPTION Although CRA could choose to arrange all finance on a corporate basis (except perhaps for the very largest projects or acquisitions), project financing techniques provide a number of specific advantages which CRA has noted and which should be carefully considered by a project sponsor. Advantages

Jan 1, 1985

By Robert T. DeGavre

INTRODUCTION The $645 million financing for Inco Ltd's Soroako nickel project in Indonesia not only represents a significant human achievement but also there are certain important lessons that can be derived from Inco's experience in financing the project. The paper will not present a technical assessment of the project since Inco Ltd. submitted a series of papers on this subject at the international Laterite Symposium as part of the 108th Annual Meeting of the AIME in February 1979. BRIEF HISTORY OF THE SOROAKO PROJECT Table 1 summarizes the milestones achieved in the Soroako project and its financing. Exploration Phase A contract of Work was signed on July 27, 1968 by the Republic of Indonesia and F.T. International Nickel Indonesia (P.T. Inco) covering an extensive area of over 25,000 square miles on the two southeastern arms of the island of Sulawesi. The Contract provides that P.T. Inco has the sole responsibility for financing the project and determining the terms on which the financing should be obtained, that P.T. Inco has the right to receive and hold outside of Indonesia foreign exchange revenues and to freely dispose of such revenues, and that Indonesians have the right to purchase up to 20% of the equity of P.T. Inco over a period following start of production. P.T. Inco began field investigations in the Contract Area in August 1968. Preliminary reconnaissance sampling with portable drills broadly outlined areas of favorable laterite terrain which were then systematically sampled on surveyed grids. By early 1971 sufficient exploration work had been completed to indicate that the laterite deposits near Soroako could sustain a major nickel-producing plant (figure 1). Pilot plant studies in 1970 and 1971 at Inco's research station in Port Colborne, Ontario, using two bulk samples of Soroako ore material, also confirmed that the ore could be upgraded and treated for the recovery of its metal values. Feasibility Phase Encouraged by the results of its exploration program and pilot-plant work, Inco Ltd. commissioned Toyo Engineering Company of Japan in August 1971 to prepare a capital cost estimate for a relatively small nickel project called "Stage I". Stage I was to be a single-line pyrometallurqical process plant with an annual capacity of approximately 15,000 metric tons of nickel contained in 75% nickel sulphide matte (see Figure 2). Electric power was to be supplied by a thermal power station. It is important to recognize that Inco's strategy was to develop the Soroako ore deposits in several stages: first, construct a small project to gain experience and to reduce the initial capital outlay and then later expand in one or more steps to a much larger project to achieve maximum economies. The strategy reflected both Inco's financial position in 1971 as its sales and earning dropped sharply and the difficulties previously experienced by Inco in trying to launch in the late 1960's very large "greenfield" nickel projects in New Caledonia and Guatemala. Toyo's Project Development Study was completed. in January 1972. Based upon Toyo's cost estimate for physical facilities, Inco estimated the total capital cost of Stage I to be $115 million. For the next several months, Inco ran numerous in-house financial feasibility studies, using as inputs Toyo's cost estimate and the results of its exploration and pilot plant programs. In September 1972, Inco completed a project feasibility study which was based upon a capital cost estimate of $135 million. The feasibility study was immediately made available to potential partners and lenders. Partner Negotiations The Japanese nickel market had from the outset been central to Inco's planning for the Soroako project. That market had been growing dramatically at rates in excess of 20% per annum during the 1950's and 1960's. Japan had established, for rational security and other reasons, a domestic

Jan 1, 1985