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By Eric Low

Raising capital by issuing debt or equity is necessary in almost every corporation. In the field of corporate finance, the raising of capital is a heavily-studied topic. However, some of what is studied on this topic in corporate finance is not applicable in the mining industry. There are also many financing options that were created for the mining industry such as flow-through shares, prepaid forwards, and royalty sales. The cyclical nature of the industry makes the risk-return profile of financings more difficult to estimate than in other industries. Additionally, the methods used to assess firm value are different than other industries, as the values of orebodies are not included on balance sheets. For precious metals companies, which are a hedge against most other securities, there are additional complications with determining investor expectations and cost of equity. This thesis puts forth a decision-making framework to explain mine financing choices from the perspective of mining companies. The approach is threefold. First, all of the major equity and debt financing instruments available to mining companies are presented and analyzed. Each financing method is assessed on a wide range of criteria. Next, these concepts are applied in case studies of four companies: BHP Billiton, Barrick Gold, Teck Resources, and Noront Resources. For each company, the overall choice of financing methods is shown and analyzed. The effect of financing choices on the weighted average cost of capital (WACC) is calculated. The final section deals with case studies of individual mine finance decisions during the past two years.

May 1, 2011

By D Fergusson, J D. St George

Highwall stability is a major consideration in optimising opencast mine geometry. It involves assessing the risk of those slope failures that are large enough to have significant cost, safety and/or operational implications. These risks are then balanced against the value of the resource to arrive at an acceptable slope design. Load-deformation models (commonly referred to as ænumericalÆ models) of slopes provide a powerful tool in this decision-making process since they can be verified well before slope failure occurs. This gives the slope designer increased confidence in reviewing designs during excavation, potentially allowing early revision of pit geometry to either increase or decrease safety margins as appropriate. However, these models are not always adopted as they depend heavily on an appropriate choice of constitutive model and material parameters.   A preliminary load-deformation model of a 170m highwall in Solid Energy North (SEN) OperationsÆ Awaroa 4 opencast coal mine in the Rotowaro Coalfield has been prepared. This uses a strain-dependent constitutive model based on laboratory test results, strength parameters developed by SEN and excavation monitoring data. The laboratory testing has included triaxial compression tests on large-diameter fractured samples to characterise the stress-strain response of the closely-jointed soft rock masses that exist in many parts of the mine. Data from the monitoring of a 25m cut made during excavation of a haul road has been used to refine and verify the constitutive model. The resulting highwall model has predicted highwall crest movements corresponding to the excavation of each bench, for comparison with monitored values. Key model outputs are total horizontal movements of about 0.5m near the highwall crest and shear strains of 0.5-0.7% at the locations of potential bedding-parallel shear planes underlying the highwall. Most of the movement is expected to occur as creep rather than as an immediate response to excavation.

Jan 1, 2006

By Richard C. Moore

The U.S. Bureau of Mines contracted a study to review the air and water monitoring requirements of five Federal environmental acts (the Federal Water Pollution Control Act, the Safe Drinking Water Act, the Clean Air Act, the Surface Mining Control and Reclamation Act, and the Resource Conservation and Recovery Act) and to compile information on the currently available monitoring instruments. A literature review of the acts and their associated regulations was conducted to determine applicability to the mining industry as well as any air and water monitoring requirements. In addition, an industry search and literature review was performed to assess the instrumentation available to comply with the monitoring regulations. Based on this research, the instruments are classified by general applicability to air, surface water, or ground water monitoring, then catalogued by monitoring parameters. A discussion is provided on recommended and innovative monitoring techniques.

Jan 1, 1981

By Steven D. Botts

The paper point out the Antamina's social policies with Huascarán National Park. The project had required the mine engage with the communities most affected by the mine development, its operation, and closure. In this sense, operating within this social context has required Antamina to first be effective in understanding who the affected people are –at the local, regional, national and international levels. This understanding is also a process that requires time. Through the HWG, the company has achieved engagement, as well as an understanding an appreciation of viewpoints and perspective that has resulted in the protection of HNP, as well as the timely development of the project, with support of stakeholders. Therefore, the experience of the HWG was become for other natural resource projects in complex settings, involving national and international stakeholders and protected or sensitive areas.

Sep 13, 2001

By R. Lasmanis, W. C. Utterback

"The Mount Tolman porphyry Mo-Cu deposit is 64 km south of Republic, Ferry County, Washington. It occurs in the composite Keller Butte pluton, which consists of the Keller Butte porphyritic biotite granite and granodiorite, the Mount Tolman quartz porphyry granite, and the Meadow Creek biotite granite phases. The three phases range in age from 61.3 Ma ± 2.3 Ma to 55.7 Ma ±2.0 Ma. The stockwork deposit occurs in the Keller Butte phase above the contact with the Mount Tolman quartz porphyry granite.Mount Tolman is a hybrid calc-alkaline deposit that has features of both a Climax-type and a plutonic type. Prior to post-ore faulting, the deposit had a flattened hood like shape. In plan it is elongated- 1.6 km wide, 3.2 km long, and up to 609 m thick. The orebody has a 292 o strike. It contains a geologic reserve exceeding 2.18 billion tonnes of ore averaging 0.093% MoS2 and 0.09o/o Cu using a 0.048% MoS2 cutoff. Of this total, 816 million tonnes of measured and indicated ore averaging 0.097% MoS2 and 0.09o/o Cu could be mined by open pit with an overall waste-to-ore ratio of 0.91 to 1.The deposit is a stockwork of quartz and quartz-sericite-pyrite veins and fracture fillings that contain molybdenite, chalcopyrite, sphalerite, and magnetite. Five separate episodes of fracturing and mineralization produced the orebody and were followed by four additional episodes of fracturing with sulrgrade mineralization. The Mount Tolman deposit contains propylitic, argillic, phyllic, topaz greisen, and potassic alteration zones. Extensive silicification overlaps the K-feldspathized, quartz-topaz, and phyllic alteration zones."

Jan 1, 1995

By S. Stefanizzi

In the present paper, numerical simulations based on a finite/discrete element approach are used to study deformation and failure process during standard rock mechanics. FEM/DEM modeling has been used as available with the ELFEN code, which explicitly model the transition from continuum to discontinuum. The transition is simulated through a crack nucleation and propagation that obeys to the Griffith?s failure criterion. If the fracture criterion within the intact rock (represented by FEM) is met, a new crack (represented by DEM) is initiated. Remeshing allows the fracture process through the FEM mesh to be tracked and visualized, thus contact properties can be assigned to pre-existing fractures and newly generated fractures. In this study, compressive tests of rock samples are simulated. The applicability of ELFEN to properly and efficiently simulate typical laboratory rock mechanics tests, with reference to the rock fracture process, is described in detail. In addition, an indirect validation of the extensional strain criterion proposed by Stacey (1981) is given.

May 1, 2009

By Andrew Jones

This paper discusses the worldwide market and cost environments for the bulk ferroalloys namely manganese alloys (ferromanganese, silicomanganese), ferrosilicon and ferrochrome (high-carbon ferrochrome, charge chrome). Annual average market prices since 1993 are presented graphically and analysed, and the main supply and demand trends for manganese, ferrosilicon and ferrochrome are summarized. The paper shows carbon and stainless steel output data for 1995, 2000 and 2005, mainly to demonstrate the rising importance of China as a ferroalloys market. Developments in ferroalloys capacity worldwide from 1991 to 2007 are discussed (plant start-ups and closures, ownership changes). Finally, the paper examines developments in the main cost factors for the bulk ferroalloys, i.e., chrome and manganese ore, electricity, carbon reductants and labour. Note that data for 2006 are estimated based on information available in November 2006.

Jan 1, 2007

By Lynn M. Gould

Syncrude Canada operates the largest oil sands crude oil production facility in the world and produces over 13 percent of Canada?s total oil requirements. To do this, Syncrude mines the oil sand in open pits, extracts the raw oil known as bitumen from the sand using water-based processes and upgrades it into sweet light crude oil by fluid coking, hydroprocessing, hydrotreating and reblending. The final product, Syncrude Sweet Blend (SSB) is sent by pipeline to three Edmonton area refineries and then to pipeline terminals which ship the SSB to refineries in Canada and the United States. As parts of the Mildred Lake Base Mine reached their economic life, they were replaced with new facilities at the Aurora satellite mine. Aurora is situated on Oilsand Leases 10, 12, and 34, 35 kilometres northeast of the Mildred Lake facility. (Figure 1) In 2000 the first hydrotransport low energy extraction production train started up at Aurora. A second production train is scheduled for start up in 2003. Open pit mining at Aurora occurs using two hydraulic shovels, two cable shovels, and trucks ranging from 320 ton to 380 ton payload capacities.

May 1, 2002

By Rick Moignard

Relationships between Information Technology providers and their clients are often segmented according to job specific tasks. As a consequence, technology providers tend to focus on automating repetition and complexity, resulting in software that improves individual productivity while failing to address the interdependency of mining functions. For this reason, technology vendors like Gemcom are following partnership approaches with their clients, engaging corporate and operational stakeholders to better understand mining business objectives. This presentation examines some of the approaches that help foster the development of solutions that leverage the information produced during mine operations to improve downstream process control and tactical decision support.

May 1, 2006

By C M. Evans, D Thomas

Solid EnergyÆs Wangaloa open cast coal mine was operated between 1945 - 1989, and remained closed and disused until 2001 when SENZ initiated a mine rehabilitation programme. It is nearing the final stages of physical and environmental rehabilitation, aimed at creating an aesthetically pleasing and useful landscape. The final goals of these efforts are to produce an area, which has recreational and educational value. SENZÆs holistic approach to rehabilitation has been undertaken, treating the entire historical mine footprint instead of focusing only on those disturbed areas and the minimum range of issues just to meet with legal compliance. Rehabilitation at the site has included overburden modification with an emphasis on stability, removal and replacement of unhealthy and invasive plant species, and an AgLime amendment to alter soil pH conditions, which would support native plant species. To date, most ongoing activities relate to final planting and plant upkeep, and maintenance of the landform including ongoing erosion control, pest control, environmental monitoring, and research. Environmental quality concerns at the site may be treated by using a combination of methods, including regrading and capping of acid-generating pyrites, soil treatment with AgLime, and passive wetland treatment within existing water courses. Following major works, the mine site area may be opened to the public for recreational activities, interpretive displays on historical mining activities, and observation and appreciation for otherwise unseen geological features. SENZÆs holistic approach to reclamation, rather than treating minor issues, will result in the former mine site being transformed into an asset and the environmental and financial liability associated with the closed mine being discharged. Former mine sites can be turned from environmental liabilities with no recreational or public value (and potentially dangerous to life) into sites that can be safely used by the public for recreational and educational purposes.

Jan 1, 2006

Research on the Differential Flotation of Iso-Floatable Lead-Zinc Sulfide Ore

Sep 13, 2010

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 Russell Frith

For many years, underground rock mechanics and in particular, roadway/tunnel roof stability has been underpinned by the often unchallenged assumption that roof strength (as defined by the UCS) and stiffness (E) are key stability controls. This has logically led to the proliferation of laboratory testing of rock specimens and the development of indirect geophysical methods to gain estimates of these two rock parameters. Furthermore, many design methods are significantly focussed on replicating rock mass behaviour through either intact or failed constitutive models. Demonstrably the strength and stiffness of the host rock material is commonly used as one of the key indicators of excavation roof stability and it finds either direct or indirect use in just about every rock mass rating system in use today. In more recent times there has been a common move to consider and apply (even if only conceptually at the current time) structural engineering type principles (e.g. buckling) to coal mine roadway roof (and rib) stability. Similarly our knowledge of the in situ stress environment and its likely origins has improved significantly, largely through stress measurements and subsequent analysis. This paper combines knowledge in both of these fundamental areas through a deterministic model for roadway roof stability and in combination with field examples, reaches the almost certainly controversial conclusion that UCS and E are commonly irrelevant, albeit that the former may provide an indication of other relevant geotechnical parameters (e.g. bedding cohesion). As with all hypotheses or rules, there are naturally exceptions and in this case, the most obvious is the tailgate of the longwall panel (with adjacent goaf). Due to the significant change in the strata loading environment of a longwall tailgate as compared to first workings for example, the stability equation materially changes so that UCS and E become critical controls. The point of the paper is to present a different perspective on a traditional mining problem and to challenge geotechnical professionals to keep thinking ?outside of the square? in the never-ending endeavour to improve our understanding of the engineering problems we regularly face. Such an understanding impacts upon such issues as geotechnical data collection from borecore, support hardware requirements and design capabilities. Therefore making the assumption that our understanding is always fundamentally correct could in fact be limiting the development of new and improved engineering in the future.

Jan 1, 2006

By George H. Hope, Steve Ciccone

"The Red Dog Mine is both the largest known zinc reserve and the largest zinc producer in the world. The mine started in 1989, and by 1999 had increased production from approximately 300,000 tonnes per year (t/yr) of zinc concentrate to in excess of 900,000 t/yr. The VIP Mill Optimization Project further increased zinc concentrate production to 1.1M t/yr while improving both product quality and zinc recovery. The Mill Optimization project also addressed a number of issues related to risk reduction: power generation capacity, water treatment capacity and concentrate thickening. The project was faced with numerous challenges, the most daunting of which was the schedule. This US$105M project was executed, from conception to completion, inside of two years. Less than nine months elapsed from concept to delivery of materials and equipment to site. The project also faced a 100-day ice-free shipping window, the challenges of construction in an Arctic environment, and an extremely tight labour market for qualified craft personnel. These challenges were successfully addressed with several innovative approaches to project execution, including an Alliance contracting arrangement between the owner, engineer and contractor; full integration of the team; construction of modules in Anchorage; and fast-track engineering, procurement and construction.INTRODUCTIONThe Red Dog Mine, which began operations in 1989, is located above the Arctic Circle in Northwest Alaska, approximately 145 km north of Kotzebue (Figure 1). An 80-km road connects the mine site to the DeLong Mountain Transportation System (DMTS) port site. Red Dog is the largest known zinc deposit in the world, with known reserves totalling 94.5M tonnes, and is the largest zinc producer with a concentrate production rate of more than 1.1M t/yr.Open-pit mining is by typical drill, blast and load operation using moderately sized mining equipment. Ore is processed through conventional crushing, grinding, and flotation to produce separate lead and zinc concentrates. Filtered zinc and lead concentrates are trucked year-round to the DMTS port site, where they are stored in two A-frame buildings, 330 and 440 m long. A lightering barge system is used to transfer concentrate from the shallow water load-out to deep-sea vessels anchored approximately two miles offshore. Shipping is limited to a 100-day, ice-free window beginning in early July."

Jan 1, 2003

ThePike River coal field is located between 700 and 1000 m above sea level on the West Coast of the South Island. The area contains a resource of some 60 million tonnes of coal in a single coal seam and is part of the Paparoa mountain range that receives between 6.0 and 6.5 m of rainfall per annum. The area has been isolated and has received no on the coal plateau but has been extensively logged in the lower 3.5 km of Pike Stream. The PRCC development proposal recognises this and calls for an environmentally benign development that includes underground development of this resource. The coalfield abuts and is partly overlain by the Paparoa National Park. The underground development will enable a number of environmental goals to be readily achieved: it will be out of sight of the public,it will not impact the national park,noise will be mostly absent,there will be absolute minimal disturbance to the land surface,coal will be transported from the mine to a dewatering complex on PRCC land in a slurry pipeline thus obviating the need for trucks and noise in Pike Stream valley,all water draining from the mine will be collected, treated if required to consent standards and discharged from a single point,the road into the area will allow for an effective predator control programme to be undertaken enhancing native bird life,an environment suitable for the reintroduction of Whio (Blue Duck) will be created, andthe net effect of the mine development on the environment will be positive.

Jan 1, 2003

Reason Analysis of Impurity Containing and Technology Discussion of Quality Improvement for Low-Quality Iron Concentrate

Sep 13, 2010

By Raymond Derzay

This publication is intended to be of value to the mineral industry in establishing and maintaining effective programs for preventing noise-induced hearing loss. Factors involved in this loss and the need for and the requirements of an effective hearing conservation program are discussed. The legal and legislative history of compensation for hearing loss is briefly reviewed. A review of statutes is not attempted since several States have recently modified) or are in the process of modifying their laws regarding permissible noise exposures) required hearing protection) and/or compensation for hearing loss. A review of other aspects of the problem of industrial noise in terms of medical, physiological) and psychological frames of reference is included. A hearing conservation program is described in detail. Appendixes detailing the names and addresses of a few equipment suppliers are included. References are provided for those who may wish to delve more deeply into the medical, technical, and scientific considerations of noise and its effect on man.

Jan 1, 1972

By Russell R. McLellan

Under the Heavy Metals Program, investigations were conducted at the old Badger dill placer mini in Nevada County California to collect data and information regarding drilling and sampling methods and deposit characteristics. The studies contributed to a team effort by five Bureau of Mines research groups to develop new or improved placer mining technology in the Tertiary gold-bearing channel gravel of northern California. This report describes the techniques used and the results obtained in the sampling and drilling stage of deposit delineation studies that were conducted by the Denver Mine Systems Engineering Group. Sampling included the collection and processing of 400 tons of largo and small volume samples from drill holes, underground workings, surface pits, and blast hole rounds. A total of 355 samples averaging 2,296 pounds per sample provided reasonably accurate data for analysis of the gold distribution. These studies indicate that the bulk of the gold is within 40 foot of bedrock in stacked, lenticular zones of cemented gravel that are largely confined to the relatively narrow, meandering course of the deepest portion of the bedrock channel. Drilling studies involved the testing of three types of truck-mounted drills including rotary, bucket and vibratory, none of which proved to be a completely versatile tool for sampling quickly and reliably both consolidated and unconsolidated gravel.

Jan 1, 2012

By Ray Walton, Ron Colquhoun, Ken Thomas, Dwayne Fentie, Barney Burke

"The new Roasting Facility at Barrick’s Goldstrike Mine in Nevada, U.S.A. was developed to process 12,000 tons per day of refractory gold ore. The process consists of crushing, dry grinding, roasting, extensive gas purification, calcine quenching and leaching in the presence of activated carbon. The new plant is integrated into the existing Goldstrike facility, treating ore from both open pit and underground sources.The process design, procurement, construction and commissioning of the Roaster facility was performed successfully over a 3% year period with peaks of 400 engineering personnel and 950 construction personnel supporting the project. The US$330,000,000 project was completed ahead of schedule and under budget. The commissioning was well planned and proceeded smoothly through a rapid start-up to achieve all primary goals within three months of the start of processing of ore.BACKGROUNDAs early as 1992, Barrick’s Goldstrike Mine, located north of Carlin, Nevada had indications of the ore becoming ever increasingly carbonaceous in nature. As the open pit and underground exploration programs proceeded to step out over the years that followed, the accumulative amount of carbonaceous refractory ore and tons had become significant. By 1997, 29 million tons of double refractory carbonaceous ore containing an estimated 11.6 million ounces of gold had been identified. By 2000 the resource had increased to 14.3 million ounces."

Jan 1, 2001

This volume constitutes the Survival Subsystem portion of the final report for the Coal Mine Rescue and Survival System (CMR&SS) program, which was conducted by the Westinghouse Electric Corporation under contract to the United States Bureau of Mines (Contract Number H0101262 dated June 17, 1970). The program was directed by the Special Systems Department of the Westinghouse Baltimore, Maryland, facility. The basic objectives of the CMR&SS program were to develop and test hardware to determine the efficacy of a variety of coal mine rescue and survival concepts and techniques. These concepts were drawn from two major sources: the Request for Proposal from the Bureau of Mines1 and the final report on the Mine Rescue and Survival Study conducted by the National Academy of Engineering2 (NAE).

Jan 1, 1971