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By Barry S. Epstein

Financing the acquisition of a going coal mine operation has not had the exposure other finance-oriented projects have had. Therefore, C.I.T. feels that coal mining people and financial people should improve their understanding of the factors involved in this important type of acquisition. The discussion consists of two major subjects: analysis of the acquisition of the property, and sources and terms of funding the acquisition. Source and Terms of Funding There is a need to keep the competent medium-sized independent operator in the coal business, especially in these times of energy shortage. The creation of a resale market for coal mines encourages new investment in the coal mining business by medium-sized operators and their financial backers. Who provides debt and equity financing to acquire going coal mine operations and on what terms?

Jan 9, 1975

By Parker JB

The Channar Iron Ore Mining Project (the Project) is a joint venture involving the Hamersley Holdings group (Hamersley) and the China Metallurgical Import and Export Corporation (CMIEC). The Project represents the first new iron ore mine development in Australia since 1971/72 and is the first major overseas mining investment by the People's Republic of China (PRC). The Channar mine is being constructed in the Pilbara region of Western Australia and will operate for more than 20 years supplying the PRC with 200 M tonne of high grade iron ore. The Project is configured to take advantage of Hamersley's existing production and support facilities. The Joint Venturers will invest A$280 million to achieve an initial production rate of 3 M tonne/yr and an additional A$120 million over the next 8 years to achieve full capacity of 10 M tonne/yr. Financing the Project to meet the requirements of both Hamersley and CMIEC, with the dependance of the Project on Hamersley's infrastructure, and in a depressed iron ore market, required an innovative financial structure to be arranged in a limited period. This paper describes both the financial structure and its implementation, and draws a number of conclusions regarding the financing of resource projects.

Jan 1, 1989

By Christian F. Baiz

Industrial minerals can have similar financing requirements to those needs of metaliferrous and coal mining projects. Although, one may see many similarities in the fundamentals of the various risks that must be evaluated in lending to any specific project, one of the outstanding differences is the understanding of the many different markets that these industrial minerals represent. There are in excess of 30 principal industrial minerals ranging in terms of annual production from the largest quantity such as sand and gravel, to possibly the smallest quantity of production of a legitimate industrial mineral which may be defined as industrial and rough gem diamond. If we assume that it is necessary to finance independent projects of ore bodies of industrial minerals for development, the financing techniques are similar to the fundamentals that we would use for financing coal projects or metaliferrous deposits. Therefore, let's begin by redefining project financing in the traditional banking or private sector area, and then in the later development of this paper, we will apply these techniques to industrial minerals in general and cite it with several specific examples.

Jan 1, 1982

By William L. Young

I think I should let you in on one of Canada's best-kept secrets, if you will promise not to tell it all over the place. Believe it or not, good, honest, enterprising capitalism is still alive and flourishing north of our common border, and I am living proof that capitalism is still working for the little guy. My personal story of mining development in Canada isn't all that rare -- you've probably heard something like it from other areas and other days several times -- but my case brings it up-to-date. I would like to Tell you briefly the history of Northumberland Mines Limited, a contemporary case of individual enterprise getting a mining operation underway. And if I can do it you probably can too.

Jan 1, 1981

By Stuart McGill

This case-study of the financing of the Ok Tedi project illustrates the nature of project financing and outlines the arrangements made in the case of this project; it also demonstrates that the limitation of financial exposure is an important goal for Governments involved in developing the resources sector. The account includes a chronological description of the process by which the sponsors prepared for the financing of the project and the lenders became involved in it. The type of security arid loan documentation required for such financing is described, together with a broad analysis of their content and the manner in which the various risks involved in development are apportioned among the sponsors and lenders. The ability to apportion and limit financial liability is an important development for the owners of capital and resources.

Jan 1, 1985

The smaller mining company with full ownership of, or participation in, a mining project is generally unable to obtain funding as easily as the major mining house. While the equity market remains the main funding source for small projects, debt fund- ing options are becoming more available. Many international banks possess in-house mine fin- ancing expertise which can assist the smaller company in financing its share of project development. A clear understanding is necessary of both the benefits and limitations of bank funding, to ensure that all potential sources of funds are properly considered and integ- rated into the financial plans of the smaller mining companies.

Jan 1, 1984

By Barrie A. Wigmore

There are two aspects of financing western coal development -- whether there is going to be enough money to finance the prospective large development of the industry, and the specific techniques of raising money for that development. To take the first question of whether there is going to be enough money around to finance your industry, I think it is quite clear that the restrictions on the development of western coal are going to be non- financial. Environmental impact problems are creating the greatest delay in coal mine development, at the moment; but getting enough personnel, mining equipment, railroad equipment, and failure of the Department of Interior to act on leasing federal coal lands all appear likely to create significant bottle- necks in the development of western coal -- larger bottlenecks than financing. Financing appears straightforward for the industry. There are many projections of the financing required to meet Project Independence goals. The National Academy of Engineers estimated that development of 500 million tons per annum of western coal would be necessary by 1985 to meet the Project Independence goals which might require $20 billion of capital spending. It is generally agreed that 500 million tons a year is not a realistic possibility. Carl Bagge?s estimate of production of 250 million tons a year by 1983 appears a more reasonable projection. Development

Jan 1, 1976

By M D. Rosengren, G Gregor, M F. Young

Over the last 15 years the silver/lead/zinc ore treated at Mount Isa became increasingly complex and lower grade. Metal recoveries dropped dramatically, causing a serious decline in profitability. The ætraditionalÆ response of increasing tonnage to reduce unit cost was unsuccessful, since the additional tonnage was even lower quality ore. A major technical and capital program in the 1990s restored metallurgical performance, but business return was still too low and ore quality continued to decline. In 1996 a new, holistic approach integrated the steps of geology, mining, concentrating, smelting, and refining. Previous assumptions about æfixedÆ and æmarginalÆ costs in mining and processing were shown to be wrong. Detailed analysis showed that some ore sources were reducing profit. This led to a fundamental redesign and downsizing of both Mount Isa and Hilton mines. The result was dramatic increases in head grades, metallurgical performance and plant stability without any capital expenditure. The business is now smaller, but more profitable.

Jan 1, 1998

By L. Clark

Despite near-record commodity prices, the mining industry continues to search for ways to maintain profits in these times of steadily increasing energy prices and steadily decreasing grades. The pressure is still on today’s miners to continuously improve their operations because they know that one day prices too will drop. Some, however, have seized the opportunity to employ systematic methods to reduce costs and increase the efficiency of their workforce and equipment. As a result, closer attention is being paid to scheduling and the value that could be added by defining the extraction sequence that maximizes the net present value [NPV] of a project. This paper will discuss the challenges faced by Newmont Mining Corporation [Newmont] at its operations and the application of sophisticated software tools and methods in its search of solutions to this problem.

Jan 1, 2007

By Julian Malnic

Various natural, commercial, engineering and operational factors govern the evolution of approaches taken in the exploration for Seafloor Massive Sulphides (SMS) and in delineating the resource. These stages are prerequisites to the proposed mining of SMS deposits. This paper presents and analyses these factors from the view of an SMS exploration company that is pioneering the exploration of this rich alternative source of zinc, copper and gold. Current exploration practices developed by Marine Scientific Research (MSR) workers for SMS deposits are expected to give way to industry-generated methods as the SMS exploration industry gathers momentum. The exploration process falls into three phases that are described below: Prospecting (locating targets), Indicating Resources, and Measuring Mineral Resources Considerable streamlining of the SMS exploration process will accelerate the rate of discovery. The economics of SMS mining are projected to be superior to comparable terrestrial mining operations in both operating cash cost and capital terms.

Jan 1, 2001

By Karen Munro

Importance of Aquatic Studies for Mining ?Aquatic habitat is usually the first area where a mine interacts with the ?real world? outside the mine footprint ?Water management is a key consideration for a mine?Effects on the aquatic environment often extend to wildlife and human uses ?There is a lot of regulatory focus on issues of water quality, fish and fish habitat

May 1, 2011

By Mark Vardy, Kate Dobson, Isobel Yeo, Paul Lusty, Bramley Murton

In response to anthropogenic climate change, the way in which we use and generate energy is changing. To facilitate these developments, it is essential that we increase and diversify the supply of ‘E-Tech’ elements essential for cleaner energy generation and more efficient usage. The vast majority of these materials (e.g. cobalt, lithium, niobium, platinum group metals, rare earth elements and indium) come almost exclusively from mining and new resources must be found and developed in order to secure supply and meet the demands of the future. Ferromanganese (FeMn) crusts are rich in cobalt, tellurium and rare earth metals, and are common on seafloor hard grounds at water depths over 1000 m. The mining of both FeMn crusts and nodules is potentially viable dependent of the balance of cobalt and nickle prices (Martino & Parson, 2012), however, crusts need to be at least 4 cm thick with cobalt contents of at least 0.8% (International Seabed Authority, 2008). The difficulty for those wishing to exploit these resources is firstly finding them, and secondly assessing their potential remotely. Such capability would not only save time and money, but also allow mining operations to be more focused, reducing needless destruction of seafloor habitats from exploratory mining or mining of noneconomically worthwhile deposits. In this contribution, we examine the distribution of crusts on a single Atlantic Gyot (Tropic Seamount), the morphology of FeMn crusts, their variable growth patterns and the characteristic geophysical response from crusts in various datasets, including ship based 60 m resolution multibeam and high resolution bathymetry, backscatter and sub-bottom profiler data acquired using an Autonomous Underwater Vehicle (AUV).

Jan 1, 2017

The population and the per capila consumption of mineral resources have both grown dramatically during the century past. It is argued that growth will continue through the century ahead but that the magnitudes of undiscovered resources are probably adequate to meet demands. The challenge that the mineral explorer of the future will face is finding deposits beneath several kilometres of barren rock.It is further argued that the principal challenge that society will face in the century ahead is the amelioration of environmental stress.

Jan 1, 1993

By R Lewis

Drill hole magnetometric resistivity (DHMMR) is a relatively recent addition to the explorationistsÆ suite of techniques for finding further resources in the vicinity of a drill hole. The method relies on gathering of an applied current into zones which are less resistive than the country rocks and it was first applied to exploration programs looking for weakly conductive sulphides, such as, for example, carbonate-hosted zinc deposits. More recently, it has been applied to a wider range of deposit styles, including highly conductive nickel sulphides. It has been found that the technique is capable of not only detecting mineralisation not seen by conventional electromagnetic (EM) techniques, but it can detect at a greater distance. Also, whilst EM is superior at defining tabular-shaped conductors, DHMMR may be more effective at finding cigar shaped sulphides. This paper presents a number of examples illustrating these findings.

Jan 1, 2000

By S Arnold

Properties of the soil profile fundamentally control water-limited ecosystems. Soil water availability affects vegetation dynamics of plant communities, but is also affected by these communities in return. Understanding this eco-hydrological interplay and the role of physical soil restoration is crucial for successful rehabilitation and management of post-mining landscapes in semi-arid areas. However, uncertainties exist in both the mathematical description of plant communities within ecological submodels and the predictability of future rainfall events. This study uses information gap decision theory combined with an ecohydrological system model to investigate how both uncertainties impact decision-making in the context of ecosystem rehabilitation. A range of management strategies are investigated to identify the optimal soil thickness for successful rehabilitation of native plant communities in Central Queensland. The results emphasise that thicker soils can counterbalance uncertainty in mathematical description of plant communities by increasing the simulated survival probability of plant communities. However, the influence of thicker soils on the robustness of plant communities against a change in future rainfall amount is rather marginal. By allocating an economic value for restoring a particular thickness of soil layer, these results can be used to evaluate the costs of ecosystem re-establishment with regard to two target measures - the survival probability of the plant community and their robustness against climate change.CITATION:Arnold, S, 2012. Finding optimal soil restoration strategies in the face of uncertain future rainfall amount, in Proceedings Life-of-Mine 2012 , pp 91-96 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 10, 2012

Patterns of successful metallic mineral discoveries in Australia are analysed for the last three decades. A trend towards more discoveries of poorly expressed and blind ore- bodies is evident and can be expected to continue. Discoveries using traditional and conceptual geological techniques have proportionally declined but are expected to continue at a significant level for a decade or so. Improvements in the quality and numbers of geological exploration models and in the quality of available basic geoscience data have aided successful discovery in recent years. Although some orebodies for the Year 2001 have already been found maintenance of a strong mineral inventory demands that more and better geological models are applied. Empirical models need to be improved by critical multi- disciplinary integrated studies of mineral occurrence at all scales. New models can and will be developed by various means. If application of these models is made with all the innovation, initiative and unorthodoxy that can be mustered then new discoveries will result. Greater attention to the surface expression of orebodies will also lead to new discoveries. Review and follow-up of old data in the light of new concepts will provide yet another discovery route.

Jan 1, 1981

Clearly visible in geophysics is a trend away from simply finding and drilling anomalies obtained with off-the-shelf equipment, condes- cendingly sold by travelling salesmen. Instead, technical tools are becoming available which allow us to choose or design equipment and sur- vey procedures for the specific problem at hand. The advent of micro- and smaller computers enable us to collect more and better measure- ments and to rapidly process them so as to emphasize the features which are being sought. These new capabilities have important consequ- ences both to the extent to which geophysical tools will be applied in the industry, and to the skills which will be demanded of those using them. Because of its uniquely difficult exploration problems, Australia must expect to amplify its new prominence in the development of mining geophysical technology.

Jan 1, 1981

By F. Seymour

A dynamic programming algorithm is presented that takes a series of nested phases, a fixed mining-rate schedule and a fixed plant-production-capacity schedule, and, from these, finds the mining and cutoff grade sequence that maximizes the net present value. This tool allows the mining engineer to quickly look at project sensitivity to various production capacities, commodity prices and costs. A description of the algorithm is given along with examples of how it has been used at Newmont Gold.

Jan 1, 1996

By Joe W. Cotton, Thomas A. Wheeler

This paper briefly covers theories behind caking of crystalline salt particles, and methods of its prevention. The main factors that influence the extent of caking are humidity, storage pressure, temperature variations, and length of storage time. Careful adherence to control- ling these variables are more critical than the addition of even the most efficient anticaking reagent. The principle characteristics that a successful anticaking reagent must possess are: high retention at the temperature of application, good coating of reagent on the particle surface, capability of in- creasing the hydrophobicity of the particle, reducing the surface tension of liquids, and/or creating of a barrier between particles that prevent contact between particles, and modifying the crystal structure of the salt between the particles. Methods to evaluate the reduction of caking tenacity with the application of various anticaking reagents, reagent volatility and reagent degradation in plant and laboratory scales are discussed. Various types of anticake reagents used today in industry are organic active and inactive reagents, inorganic inert and inorganic salt crystal modifying re- agents.

Jan 1, 1986

By Douglas B. Silver

The key to unlocking value is to find opportunity where others have missed it. How does a company find value in a thoroughly explored asset? This article explores the approach taken by one company and the results it achieved from working this problem. The town of Shafter is located on a small bend in the road in west Texas' Big Bend Country. Its past emulates the glory days of so many other mining camps. A discovery was made, fortunes were built and World War II shut down the operation. The Shafter deposit continues to be one of the larg¬est undeveloped primary silver deposits in North America. Gold Fields Mining Co. recognized the area's potential in 1977 and embarked on studies to reopen and develop the district. Gold Fields spent $16 million on the Shafter project. It drilled more than 86,240 m (282,940 ft) in 475 holes, sunk two shafts and developed 1,550 m (5,100 ft) of underground workings. Today, the mothballed 447-kW (600-hp), single-drum Nordberg hoist and permanent production-type, single-compartment headframe continue to crown the shaft. Other buildings onsite house compressors, mine pumps, spare parts, drill core and other supplies. All these items look as though they arrived yesterday. By 1982, Gold Fields had completed an extensive feasibility study with ambitions to. construct a 1.36-kt/d (1,500-stpd) agitated cyanidation mill and base metal gravity circuit. Reserves at Shafter stand at 4.23 Mt (4.67 million st) grading 193.5 g/t (5.65 oz/st) silver. Gold Fields planned to produce 71.5 t/a (2.3 million oz/year) of silver at a head grade of 196.2 g/t (5.73 oz/st) silver with a 77% recovery rate. Cash costs were projected to be $5.54/oz with an anticipated initial and total capital cost of $46.2 million and $51.3 million (1984 dollars), respectively. The study assumed a silver price of $8.60/oz that has not been seen since the Hunt brothers quit buying silver. When silver prices declined, Gold Fields put the property up for sale.

Jan 1, 1999