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By Robert T. DeGavre

I have been asked by the Society of Mining Engineers to present a paper on Inco Limited's Indonesian nickel project as a case study in the financing of large overseas mining projects. I welcome this opportunity It is a story worth telling not only because the project itself represents a significant human achievement but also because there are certain important lessons that can be derived from our experience in financing the project. The paper will be divided into four sections: (i) a brief history of the project, (ii) a critical appraisal of the project's financing plan in terms of the goals that we sought to achieve, (iii) some comments on certain factors underlying the relative success of the financing plan, and (iv) the contributions that the engineering staffs must make to a successful financing plan. The paper will not present a technical assessment of the project since Inco Limited has been asked to submit 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.

Jan 1, 1978

By H. Lyn Bourne

This is the fifth annual tabulation of mineral royalty information. This tabulation, like the previous editions, includes all of the earlier data. There are also 60 new entries. In addition to royalty information, some entries show the cost of purchased reserves. Two articles relative to the evaluation of minerals reserves appeared in December, 1986. R.H. Paschall (In the Aggregate, ME, p 1139) wrote a good article, although it lacked specific royalty data. However, this author takes exception to two ideas in Paschall's column. Paschall contends that the royalty rate does not affect the mineral appraisal. This present author could not disagree more. Paschall also claims the location of an industrial mineral deposit is the only serious or practical caveat in comparing royalties. Comments received here from readers helped make the list of caveats that are cited each year. The readers will decide which factors influence the mineral value for their commodities of interest. Paschall's point about the relationship of the parties who are negotiating a royalty agreement is important and very well taken. The other article, written by William Vernon (Pit and Quarry, December 1986), gives a step-by-step process on how to conduct a mineral appraisal. The article cites three reasons for an appraisal: transfer rights; collateral for a loan; and taxation. A fourth reason is to establish adequate compensation for reserves lost through condemnation. This author has appeared in several court cases where compensation for loss of mineral reserves through condemnation required a mineral appraisal. Royalty rate becomes an important factor in the appraisal process, although the Pit and Quarry article refers to that part of the valuation equation as "profitability." Both articles were well written and are recommended reading for those interested in mineral valuations. The same caveats that have appeared in previous columns relative to factors that influence the value of reserves are restated. The data in the table serve as a general reference and are not intended to present an absolute scale of reserves costs. Several factors influence the value of any mineral commodity. The factors include: • location/transportation - especially significant for most industrial minerals; • market conditions both for the commodity and the company acquiring the right to mine; • quality or grade of the deposit as it reflects the amount of processing/beneficiation necessary to produce the finished product; and • legislative restrictions and conditions for mining a given material at a given site. These and other factors will significantly influence the cost of reserves. The table shows the range of royalties and the variations in the basis of computing the fees. In a few instances, it gives the cost of acquired reserves based on purchase price and quantitative estimates of the material in place. The table lists the commodity in column 1, and the subsequent columns give: • the location by state, US geographic area, or Canadian province ; • the cost - R for royalty and P for purchased cost; • the year in which the lease or purchase agreement occurred; and • comments or footnotes for more information. The cost column requires more explanation. The units may refer to cubic yards (/cu yd), cubic feet (/cu ft), short tons (/T), or acres (/A). 1 cu yd = 0.76 M2 1cuft = 0.28m3 1 st = 0.9072 t 1 acre - 0.4047 ha or m2

Jan 7, 1987

By John Parianos

"Seafloor mining provides significant potential economic benefits for many Pacific nations that may be "land poor" but "coastline rich," meaning they have the potential to utilize and profit from the mineral wealth within their Exclusive Economic Zones that extend 200 nautical miles (360 km) out from their coastlines. The Independent State of Papua New Guinea (the State) recognizes this tremendous opportunity and is taking a leadership role in this emerging industry by becoming a 15% partner in Solwara 1 (with an option to increase their investment to 30%).The Solwara 1 Project has been gaining momentum since Nautilus Minerals and the State signed an Agreement on April 24. This new agreement with the State in which they have staked a minimum 15% interest as a meaningful partner, underscores the State’s continued and widespread support for the Project. Signing of this Agreement was a historical occasion and a milestone achievement for Nautilus Minerals and the people of PNG.The machinery being built for the Solwara 1 Project is taking shape. The Seafloor Production Tools are now over 90 percent complete. Assembly of the biggest tool, the Bulk Cutter, was completed in April this year and assembly work on the Collecting Machine and the Auxiliary Cutter commenced in May and June this year respectively. The Riser and Lifting system, which will be used to transfer the mined material from the seafloor to the surface within an enclosed system, is over 50 percent complete. The critical path for the Solwara Project is to secure a suitable vessel arrangement. Nautilus aims to have this completed by the end of this year."

Sep 1, 2014

By W. C. Meyer

Surface tension and its control are important in the concentration of ores by froth flotation, both in terms of producing the proper bubble size distribution and to render the ore surface of interest hydrophobic such that adhesion to a bubble will take place. The influence a substance has on surface tension has traditionally been measured using static, equilibrium techniques. Yet many applications such as flotation involve rate-related effects of surface tension where equilibrium values are not reached. In the time frame of 1 - 300 seconds, aging effects have been noted for bubbles formed in dodecylamine acetate solutions; a slow decrease in surface tension occurs until an equilibrium value is reached, as studied by Finch and Smith (1972). Since stationary bubbles do not exist in flotation cells because of the turbulence generated by agitation and aeration, it is more likely that the chemical composition of the bubble is determined during its formation, under dynamic conditions. The chemical composition is extremely important because the induction time required for a particle-bubble entity to collide and adhere to each other is augmented by favorable surface tension (wetting) proper- ties between the surface of the particle and the bubble air-water interface or envelope, as considered by Mackenzie and Matheson (1963). Finch and Lyman (1976) have established that the probability of a "permanent" attachment taking place during this contact time is aided by the ability of an oil droplet (viz. bubble) to relieve non- equilibrium surface tension effects which are involved in the water-thinning process. This Maragoni effect, or surface elasticity, can be considered in the context of particle agglomeration addressed by Kao and coworkers (1975). Water drainage leads to the formation of a collector-frother meniscus appearing between the colliding entities, arising from their combined partial immiscibility in the water phase and promoted by hydrophobic bonding within the interface. Together they constitute a liquid bridge whose force of attraction drawing the particles together is proportional to the interfacial tension existing between the water phase and liquid bridge. This adhesive force shows an approximate linear decrease with separation distance until rupture occurs, that is, FX = Fmax (1 ? X/Xr) (1) for a distance of separation X and rupture distance G. The greater the surface elasticity of the bubble, the greater will be the rupture distance and the better will be the force of adhesion. Since van den Tempel (1965) has related surface dilational properties of bubbles to the elasticity, E, of the film as

Jan 1, 1983

By Hyung-woo Kim, Kiyoung Sung, Sup Hong, Jung-Yeul Jung

Many concepts for the commercial production of deep-seabed manganese nodules have been studied since the 1970s. However, the bearing capacity of the deep seabed is not strong because it is composed of fine particles with high moisture content. So it is impossible to carry manganese nodules in the collection system. Therefore, the validity of continuous mining by riser pipe from the seabed to the vessel is highly appreciated. A continuous mining system is composed of mining vessel, lifting pipe, buffer system, transport tube (flexible pipe), and self-propelled mining robot. A conceptual diagram of this system is shown in Fig. 1(a). Korea Research Institute of Ships and Ocean Engineering (KRISO) developed a deep-seabed self-propelled mining robot called "MineRo" to collect manganese nodules in 2012 (as shown in Fig. 1(b)). In 2013, real sea experiments at around 1380 m depth were carried out to evaluate the collecting and driving performance of MineRo. However, we found that the roller in MineRo did not work well at times. To elucidate the problem, we analyzed the rheological characteristics between the bushing and drive shaft under deep-water conditions.

Sep 1, 2014

By Rambabu Pothina, Rajive Ganguli

The economics of a mineral processing circuit is dependent on the numerous sensors that are critical to optimization and control systems. The sheer volume of sensors results in mines not being able to keep the sensors calibrated. When a sensor goes off calibration, it results in errors which can severely impact plant economics. Normally, these errors are not detected until the error grows and becomes a large (“gross”) error. Undetected errors are not remedied until the next calibration, which on average are a year apart Beamex (2019) [1] across all industries. Classical statistical methods that depend on linear relationships between input and response variables are typically used to find gross errors, but are not effective for highly non-linear and non-stationary operations in mining and mineral processing industries. Calibration of sensors is time-consuming and generally requires physical intervention that results in equipment downtimes causing production losses. Therefore, in situ detection methods are warranted that do not require physical removal of sensors to compare with standard measurements or well-calibrated sensors. Data-mining based techniques and algorithms have high success rate in tackling such problems. This paper presents results from a groundbreaking multi-year big data research project whose goal was to develop data-mining-based original techniques in a multi-sensor environment to identify when sensors start to stray, rather than wait for errors to grow. The carbon stripping (gold) circuit in the Pogo Mine of Alaska was selected for this project. Maintaining strip vessel temperatures at optimum levels is crucial for maximizing gold recoveries at Pogo, and hence the focus was on the temperature sensors of the two strip vessels. An automated algorithm to detect errors in strip vessel temperature sensors was developed that exploited data from multiple sensors in the strip circuit. This algorithm was able to detect with a high success rate when bias errors of magnitude as low as ± 2% were artificially induced into strip vessel temperature data streams. The detection times of about 1 month were much less than the industry average calibration frequency of 1 year. Thus, the algorithm helps detect errors early, without stopping the circuit. The algorithm alarms can serve as triggers when calibrations are done. Experimental methodology along with results, limitations of algorithms, and future research are also presented in this paper.

By J. A. Botín

Traditional risk quantification methods provide little information on the sources of risk, and tend to produce static over-conservative evaluations, which do not account for changes in the performance of the project. Capital investment decisions for large mining projects require of more complex risk evaluation models, that include the value of flexibility and the different risk levels associated with uncertainty on project variables (price, grade, dilution, production rates, among many other). In this context, Real Option Valuation (ROV) methods have proven potential to quantify the risk associated with such variables and integrate alternative scenarios and management strategies into the evaluation process. In this paper, a risk quantification model is developed, which successfully quantifies the risk associated to dilution, as a function of production rate. This model is then validated in a case study on the Chuquicamata Underground Mining Project.

Feb 27, 2013

By Micheal Mitariten

The recovery of natural gas (primarily methane) from coalbed deposits is an established and growing source for the U.S and accounts for over 7% of its total production. The gas from on-purpose degassing is often pipeline quality and requires only compression and dehydration before being admitted to the pipeline grid. However, the raw gas is sometimes contaminated with nitrogen (N2) and/or carbon dioxide (CO2) that can make the gas inadmissible to the transportation pipeline. In general, the N2 must be 4% or less and the CO2 should be 2% or less. In treating gas produced from virgin coal bed or from degassing operations where CO2 is present, amine systems are traditionally used for its removal. Engelhard’s Molecular Gate® adsorption system offers an attractive alternative due to its skid-mounted equipment, low pressure and unattended operation, cost and high on-stream reliability. Natural gas can also be sourced from the residual coal, after the coal has been mined. This source can be the GOB or gas remaining in abandoned coal mines. This source is almost universally contaminated, often with a combination of CO2 and N2. If the source is from air intrusion, the source can also be contaminated with O2. In treating CO2 / N2 contaminated feeds, the Molecular Gate adsorption system removes both of the impurities along with a level of O2 within a single processing step. To date, ten Molecular Gate units are underway with three systems having been installed for upgrading gas from abandoned coal mines. The technology consists of specialty adsorbents and advanced PSA processes that are jointly offered as fabricated packaged equipment by Engelhard Corporation and Guild Associates, Inc. Upgrading requirements, project challenges and project arrangements are discussed in this paper.

Jan 1, 2005

By Rameshwar Sah, Somasekhar Pitchika, Akhil Singh, Seenivasan Rajiah, C. B. Dayanand, G. Balachandran

In the sintering of iron ores, the partial substitution of anthracite coal for coke breeze has been considered to be an effective way of reducing emissions and improvement in sintering properties. In the present study, the combustion characteristics of the anthracite coal and coke breeze were investigated and its influence on product sinter quality and sinter flue gases is being monitored. Pot trials are carried out with different coke breeze ratios, 0%, 40%, 50%, 60%, and 100%. It is found that as the percentage of anthracite coal is increased from 0 to 100%, the sintering time decreased from 24 to 20 min, and the productivity increased from 2.25 to 2.60 t/h/m2. Up to 60% anthracite coal substitution Tumbler index (+ 6.3 mm%), Product yield (+ 5 mm%), and fines generation (− 5 mm%) is found 62.29%, 85.17%, and 15.33%; moreover, hematite ( Fe2O3), magnetite ( Fe3O4), calcium ferrite phases ( CaFe2O4, CaFe3O5), and Silico ferrite of calcium and aluminum (SFCA) are major mineral phases found during microstructural analysis of product sinter. Keywords Sintering · Anthracite coal · Combustion rate · Productivity

Jun 2, 2022

By C. Bazin

The separation of rare earth elements is a complex process that is industrially carried out using liquid/liquid extraction. Detailed flow sheets of solvent extraction plants for the separation of rare earth elements are rarely available in the literature which limits the opportunity to teach and test the application of data reconciliation, process optimization and control to these types of plants. The basis of a simulator for a rare earth elements separation plant is described in this paper. The simulator is used to adjust the organic phase and stripping acid flow rate in a separation circuit of heavy rare earth elements from light one?s.

Feb 27, 2013

By David Shatwell

Recent epithermal gold discoveries in Chile and Bolivia provide increasing evidence of a belt of intermittent, epithermal, precious metal mineralization east of the main Andean porphyry copper belt. This relationship may be the result of an easterly decrease in the age of magmatism and erosional levels, in¬crease in depth above the underlying Benioff zone and consequent changes in magma chemistry, or some other unrecognized factor. Examples are: • The Choquelimpie gold-silver mine in Chile and numerous other epithermal prospects (such as La Riviera, Bolivia) in late Tertiary volcanics along the Chile-Bolivia border. These lie east of the belt that contains the Toquepala, Quellaveco and Cuajone porphyries in southern Peru and the Cerro Colorado, Copaquire and Quebrada Blanca porphyries in northern rhila

Jan 1, 1990

By P. Christmann

"In June or July 2005, the European Commission will present its Thematic Strategy on the Sustainable Use of Natural Resources proposal to the Council and European Parliament, one of the seven Thematic Strategies to be developed and implemented under the 6th European Environment Action Programme in support of the European Union’s Sustainable Development Strategy defined by the European Union’s Head of State at the Göteborg European Council, in June 2001. The time scale for this Thematic Strategy is 25 years (2005-2030). This paper discusses some of the key issues related to the EU minerals and metals industry that needs to be addressed by the Strategy. These are: - the need for access to mineral reserves in the EU and abroad; - the need to strenghten the capacity of developing countries to sustainably promote and regulate the use of their mineral potential; - the need for an EU mineral resources intelligence capacity. There are additional important needs, which are not discussed in this paper, such as: - the need to foster further innovation in mining, ore beneficiation and metallurgical technologies; - the need to integrate and simplify the exisitng complex regulatory framework applicable to the EU mining industry and to effectively implement existing legislation."

Jan 1, 2005

By Roger Best

In the mining industry, where some of the vehicles are larger than a one-story house, tire maintenance cannot be accomplished by the tire shop alone. It takes an army of people to maintain a fleet of 100 trucks that may be transporting gold, iron ore, oil sand, copper or coal from an openpit to a refinery and eventually delivering the product to a customer. Everyone working in and around these mammoth machines has a duty to help with the maintenance of the tires, whether they know it or not. These responsibilities comprise observation and reporting hazards up to and including changing out a tire and recording the information in a tire-tracking program such as TreadStat.

Jan 2, 2010

By D. S. Choi

Coal is expected to become an increasingly important source of energy in the future. Coal production has already increased from about 650 million tons in 2975 to about 875 million tons in 1984 (Wilkinson, 1985). The declining trend of labor productivity in the early seventies was a source of concern for Consolidation Coal Company (Consol). To improve productivity, a gradual change from room-and-pillar mining to longwall mining has been taking place within Consol. Consol produces 45 million tons of coal annually with about 70 percent of the production coming from underground mines. Consol introduced longwall mining in the early seventies and currently operates about 20 longwall faces. The longwall faces are in mines in the Appalachian region in the States of West Virginia, Pennsylvania, and Ohio. The successful operation of longwall faces has contributed to a recovery of productivity and to an improvement of mine safety.

Jan 1, 1985

By Bruce Gellar

In March, the Prospectors and Developers Association of Canada (PDAC) held its annual conference in Toronto, Ontario. This is the third PDAC meeting the author has attended. The following are some impressions of the meeting. And the author looks forward to the joint meeting of the PDAC and the Canadian Institute of Mining, Metallurgy and Petroleum to be held March 5-10, 2000, entitled Mining Millennium 2000. One of the features of next year’s gathering is a proposed forum of world mining ministers, the first ever to be held anywhere.

Jan 1, 1999

By J. H. Gwynne

[ ]

Jan 1, 1962

By K. Perry, R. Eades

"Highwall miners continue to be implemented by operations to increase recovery, improve margins, and justify higher stripping ratios as high quality surface reserves become increasingly rare. Many times, operations facilitate projected underground operations by leaving an intact highwall for development purposes. These facts result in larger highwalls that are left standing for increased periods of time prior to reclamation. As a consequence, worker exposure and risk is also elevated, resulting in higher potential for accidents or fatalities relating to surface highwalls. Highwall stability is a complex issue, dependent on both geologic and mining factors. Dynamic numerical modeling offers the capability to assess possible stability issues related to blasting-induced ground vibrations. Research has been conducted to evaluate the effect of highwall stability due to ground vibrations from blasting events. Additionally, the relationship of amplitude and frequency, and their impact on highwall stability is investigated. The results of this modeling indicate that amplitude has little impact on stability. However, frequency has a significant impact on highwall stability. INTRODUCTION The number of mining fatalities has declined since 2010, and 2016 is currently on pace to continue this trend (MSHA 2016). This decline can be directly correlated to the decline in surface mining activity and the overall decline of the coal industry. However, since 2002 the percentage of surface coal mine fatalities associated with highwall activities remains relatively high, constituting approximately 15% of all surface mine fatalities. 2014 was the first year with a highwall failure fatality since 2011. Most recent surface coal mining fatalities are associated with machinery and haulage. Table 1 provides a summary of the total surface coal mining fatalities, and the number of highwall failure fatalities dating back to 2010.Highwall stability is a complex issue, dependent upon geology and geologic discontinuities within the rock mass, along with highwall geometry, standing time, and applied stresses. Another possible concern that has not been previously investigated is the effect of blasting-induced stresses on highwall stability and the stability of web/barrier pillar systems as a result of ground vibrations from blasting events. Many modern surface coal mines employ numerous extraction fronts that rely on blasting for primary rock breakage. This results in highwall and highwall pillar systems experiencing blasting-induced stresses of many different types and magnitudes."

Jan 1, 2017

By Frank H. Buchella

Principal factors influencing equipment selection can be grouped into five basic categories. Tonnage Requirements, Ore and Waste Loading, transporting, and ground preparation equipment are largely determined by tonnage requirements. Generally, the greater the tonnage requirements, the larger the equipment size selected. Large size equipment is appropriate for a production of about six million tons (total) per month, medium size for three mil- lion tons, and small size for one million tons or less.

Jan 1, 1973

By M. J. Virnig, B. D. Boley, G. A. Wolfe, J. M. W. Mackenzie

A flowsheet for the recovery of nickel and cobalt from laterite ores has been developed which involves acid leaching followed by hydroxide precipitation of the metal values and then releaching of the hydroxide cake with ammonia. Investigations of the chemistry of extraction of nickel by LIX® 84-I and a developmental reagent, XI-84-IT, along with the physical properties of the organic phases are described. Based on these investigations, suggestions with regard to design of a solvent extraction plant and operating conditions are made.

Jan 1, 1999

By M. K. McCarter

Surface mining applies to extraction of mineral resources from water and sediments of rivers, lakes, seas, and oceans; from solutions circulating through broken rock and soil; and from rock and soil excavated from the earth. Surface mining is responsible for the majority of mineral production in the United States and a substantial portion of the world?s total production. This section deals specifically with extraction methods which employ mechanical processes in a relatively dry environment to free minerals from the earth. The following section, Section 15, deals exclusively with aqueous methods. With recognition of the importance of reclamation in all activities which temporarily disturb the earth?s ecosystems, it is appropriate to classify mechanical extraction methods as either deferred reclamation or concurrent reclamation. Deferred reclamation is necessary when the shape and logistics of the excavation require that it remain open throughout the productive life of he project. Upon exhaustion of economic reserves, the opening is then reclaimed in a manner consistent with public safety, environmental acceptability, and land use policy. Methods employing deferred reclamation are commonly referred to as open pit or quarry mining. Metallic ores, industrial minerals, and coal are all extracted using open pit methods. Typical examples are provided in Chapter 14.1.

Jan 1, 2008