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By T. W. Beck

Roof bolter occupations in underground coal mines continue to experience overexposure to respirable dust. One potential source of dust in roof bolting operations is the exhaust from the roof bolter dust collection system. A wet exhaust conditioner (water box) has been developed to reduce dust emissions from the exhaust of the vacuum dust collection system on roof bolting machines. The exhaust conditioner consists of a muffler chamber and a water chamber with four internal partitions to direct airflow over the surface of the water. The National Institute for Occupational Safety and Health conducted a series of laboratory tests to assess the respirable dust capture ability of this device as compared to the standard exhaust muffler. To determine the dust collection efficiency, both devices were placed in the exhaust stream of a simulated roof bolter dust collection system. Gravimetric samplers were operated upstream and downstream of the exhaust conditioner and muffler to evaluate the ability to capture both respirable coal and limestone dust. Researchers observed a 41 % reduction in dust concentrations for the water exhaust conditioner in the laboratory configuration. Significant levels of dust deposition in the sampling chambers may have contributed to this effective capture rate.

Jan 1, 2012

By Carl L. Renzoni

INTRODUCTION This paper defines equity as the issuance of a permanent interest in the business on a broadly distributed basis. As such, it excludes the issuance of equity to either a merchant bank or to another corporation. Nearly twenty years ago the equity markets were very simple: The instruments used were primarily common shares, convertible debentures or convertible preferred shares. Another equity-type option often used, especially by junior companies, was the sale of joint venture interests. Issue sizes were generally in the order of $25 - $100 million and issues were syndicated primarily in North America and Europe by one or two investment dealers. Mining corporations today benefit from a market with much more depth. Issues are syndicated by dealers on a truly international basis, and issue sizes now often range up to $300 million. Moreover, dealers are now willing to take significant risk in buying the issues for redistribution. This discussion of trends in equity markets will encompass: 1) common shares 2) warrants to buy common shares 3) convertible debentures 4) commodity backed instruments A review follows of events that affect the mining industry and investment dealers as they have a bearing on the equity markets for the metal producers. FACTORS AFFECTING THE MINING INDUSTRY The current business cycle, up to October 1987, had been characterised by a buoyant stock market and depressed base metal prices. Mining companies entered this period with weak balance sheets and little prospect of cash flows meeting capital needs. The issuance of equity and the sale of assets were used extensively to reduce debt to manageable levels. During this period, the relative high price for gold, and more important, the very high earnings and cash flow multiples afforded to gold producers, caused companies to target gold as the only game in town. The need for capital to acquire and develop gold properties prompted an unprecedented volume of equity issues. (Burns Fry led or co-managed over $1 billion of mining equity issues per year during this period). This high demand for equity capital by the industry prompted an increase in the use of equity instruments, such as commodity backed instruments. In addition, government tax incentive programs in Canada, such as flow-through shares, allowed smaller companies to raise significantly more equity than would otherwise have been possible. Over $1 billion in flow-through equity was raised in 1987 alone. The abundance of flow-through capital in Canada made it easy to form a new company. One flow-through share fund developed a system of providing the working capital required for a company to be eligible to receive flow-through share capital so that an entrepreneur required only a mining property to get started. Many new companies were formed and several flourished in a buoyant stock market environment to the point that market capitalizations grew to $100 million or more. The current period is in stark contrast to that before October 1987. The equity markets are generally available to the resource industry only on a window basis and only for senior companies and for special situations. The industry is benefitting from buoyant metal prices, and bankers are anxious to provide debt capital. Investment dealers previously processing several equity issues

Jan 1, 1990

By Craig E. Saporito

INTRODUCTION Freeport-McMoRan Inc. has been very active recently with two major discoveries and its restructuring activities. This paper describes Freeport-McMoRan's businesses, the two major mineral discoveries, and exciting opportunities within the oil and gas operations. BUSINESS ACTIVITIES Freeport-McMoRan is the largest and one of the lowest cost fully integrated U.S. phosphate fertilizer producers. It is the second largest domestic Frasch sulphur producer. Freeport- McMoRan will become the largest domestic producer of Frasch sulphur when its Main Pass Block 299 sulphur deposit reaches full production in 1993. Furthermore, it is the largest transporter of sulphur produced by others. Its oil and gas activities rank among the largest U.S. independents in terms of production and proved reserves. The copper/gold operations in Indonesia are among the world's lowest cost. When expansion operations reach full capacity levels in 1992, the Indonesian copper/gold complex will be the fifth largest copper operation in the world. Operations are divided into three business segments that include: 1. Agricultural minerals, incorporating sulphur, phosphate rock and phosphate fertilizer activities; 2. Energy, including oil and gas activities; and 3. Metals, incorporating copper, gold and silver operations in Indonesia. In early 1989, Freeport-McMoRan announced the discovery of two world-class ore bodies; a sulphur deposit off the coast of Louisiana on Main Pass Block 299, and a copper/gold deposit -- the Grasberg in Indonesia -- approximately two miles away from the existing Ertsberg East operations. As a result of these major discoveries, Freeport- McMoRan decided to carry out a restructuring program. Its purpose was to sell $1.2 to $1.5 billion of non-strategic assets. Debt levels and associated interest expenses will be significantly reduced, and general and administrative expenses will be reduced, which will place Freeport- McMoRan in an excellent position to fund the development of the Main Pass Block 299 sulphur discovery, the Grasberg discovery, and oil and gas discoveries. This restructuring program also will allow Freeport-McMoRan to achieve the greatest future value for shareholders by focusing on its principal businesses (Figure 1). Strategic Restructuring • Sell $1.2 - $1.5 Billion Of Non-Strategic Assets • Significantly Reduce Debt • Significantly Reduce G&A • Fund Development Of Main Pass & Grasberg • Stronger Company; Positioned For Future Growth • Focus Is On Principal Businesses: - Sulphur/Phosphate Fertilizers - Indonesian Copper/Gold - Oil And Natural Gas Figure 1 - Strategic Restructuring AGRICULTURAL MINERALS Main Pass Block 299 Discovery The Main Pass Block 299 discovery has a proven reserve of 67 million long tons of recoverable sulphur. This is the largest known Frasch sulphur deposit in North America. The discovery increased Freeport-McMoRan's sulphur reserves more than five-fold, and is synergistic with the company's phosphate fertilizer assets. The

Jan 1, 1990

By William Cruger

OUTLINE SUMMARY A. Brief Description B. Characteristics 1. Can be highly cost effective 2. Restricted in usage 3. Political Controversy 4. Volume of Transactions 5. Users C. Mechanism 1. Five steps D. Investor issues 1. Application 2. Restricted usage 3. Discount 4. Formal or informal process 5. Restricted benefits 6. Recompense 7. Window of opportunity THE VARIOUS PROGRAMS1 A. Brazil B. Chile C. Venezuela D. Argentina E. Mexico USAGE IN THE MINING, METALLURGICAL, AND PETROLEUM INDUSTRIES

Jan 1, 1990

By Jan H. Hommen

TRENDS IN MINE FINANCE Reviewing historical trends may help in dealing with future funding strategies. The first trend is the increase in the use of debt to fund corporate America. Surprisingly, when comparing that with other corporates in the global marketplace, the U.S. does not look too poorly. Japanese, in particular, but also German companies, are much more leveraged than their U.S. counterparts. Note that in Japan and Germany the government and the consumer have shown substantial restraints when it comes to credit. Not so in the U.S. where the savings rate (4%) is much lower than that in Japan (20%) and in Germany (14%). As a result, the cost of leverage is substantially lower in Japan and in Germany than in the U.S. Lower debt costs in these countries allows one to obtain more of it for the same price. The close relationships between financial institutions, corporations and governments in Japan and Germany also make the risk of leverage more bearable and understandable. Also note that interest rate volatility in these countries is more subdued. The investor base in common stock is also changing. Private pension funds have been net sellers of equities during the last few years while public pension funds have been net buyers. Individuals are basically out of the market. It is estimated that over $330 billion of equity was retired in the U.S. through 1986-1988. The reasons are well known: restructurings, buy-backs, takeovers, mergers, and buy-outs. This de-equitization is likely to continue as the cost of equity capital is higher than the cost of debt capital, even on a before-tax basis. Because there has been no market for equity since October 19, 1987, junk bonds have replaced equity capital in the corporate finance structure. The non-investor-grade borrower has access to the public markets through high-yielding debt securities that often look like senior equity. Deregulation has also provided 24-hour markets; securitization can now liquify assets that before were rusting on balance sheets; information processing and communication tools give facts that are instantaneously available, creating the need for products to cover risk and exposures unknown before the start of the information and technology explosion. Thus we now have swaps, options, futures, options on futures, caps, as well as program trading, portfolio insurance, index funds, etc. Globalization will be unstoppable. Today's environment demands it. Corporations are now global competitors, even though they may have never shipped a product off-shore. Boundaries are disappearing and impediments have been removed. Stocks can be issued in a global offering with distribution in all major financial centers of the world. The high leverage of Japanese companies has made common stocks very scarce, which with the high savings rate, makes equity capital inexpensive in Japan. If markets were perfect everyone would issue stock in Tokyo and buy it back in New York. This would certainly stop the bleeding on the balance of payments. With the deficit balance of payments in America, it is no surprise that the cost of money is expensive here. The risk-return relationship on U.S. equity is not favorable enough to appeal to Japanese equity investors. The Tokyo-market, helped by a stronger yen, surpassed New York as the most important equity market in the world. The question is, will the Tokyo market hold up when Japanese domestic consumption increases at the expense of savings? In the U.S. debt markets, the plain vanilla debenture is making a comeback after a period of absence. Commercial paper has replaced short term bank borrowings for working capital funding by larger corporations. The banks have made an interesting comeback with loan sale programs that will continue to attract borrowers. There will be a continuing

Jan 1, 1990

By Nicholas S. Young

The one million ounce Newrnont Gold loan has focussed attention on gold's new role as a financing vehicle. This paper explains the background of the new role for gold, and details various gold denominated products now available to the mining industry. The discussion highlights the importance of gold-based products, and how they should be used in developing business strategy for gold mining companies. [ ]

Jan 1, 1990

By Klaus M. Zeitler

INTRODUCTION One cannot discuss the subject of "Raising Capital in the 1990s" without having a crystal ball and a reliable fortune teller. This discusses "Raising Capital for the 1990sW, which is what Metal1 Mining Corporation did in 1987. We raised (3166 million in an IPO (initial public offering) that was originally planned for only some (375 million. Why did we raise this money? How did we do it, and why was this IPO so successful? The answer to the first question requires a description of the promoter and principal shareholder of Metal1 Mining Corporation, Metallgesellschaft AG. This West Germany company was founded over 100 years ago in Frankfurt as a trading house for non-ferrous metals. It has developed into one of the world's leading firms in the non-ferrous metals industry. The company's worldwide activities in all areas of that business include mining, smelting and refining, the trading of ore, base and precious metals, the production of semi-fabricated and finished metal products, and the provision of engineering, construction and transportation services. Metallgesellschaft AG has also diversified into many other areas, the most significant of which are manufacturing, the production of chemicals, the development and application of technical and chemical processes, the planning and construction of industrial plants, and activities associated with finance, insurance, shipping and freight forwarding, and the provision of barter and countertrade services. The company maintains a network of more than 100 offices around the world; it employs some 25,000 people in its worldwide activities. [Selected financial data, as of September 30, 1987: (MetaUgesellschafl AG) Working Capital DM 8%.6 million CDNS 672.8 million Long Term Debt DM 568.0 million CDNS 426.2 million Sales DM 14.9 billion CDNS 11.2 billion Net Income DM 87.7 million CDN$ 65.8 million Market Capitalization at April 27, 1987: (Metallgesellschafi AG) Outstanding Shares ~,6oo,o0o DM 1,875 million CDNS 1,407 million] For the fiscal year ended September 30, 1987, Metallgesellschaft AG had, on a consolidated basis, net sales of DM13.3 billion, net income of DM100 million and total assets of about DM7.0 billion. Metallgesellschaft AG established the American Metal Company, a predecessor of AMAX Inc. one of the largest ventures undertaken by Metallgesellschaft AG then was the acquisition, through the American Metal Company, of a majority share in the Mexican Penoles mine, a large lead and silver deposit. METALLGESELLSCHAFT AG Figure 1 depicts an overview of Metallgesellschaft AG before and at the time the initial public offering of Metall Mining Corporation's shares took place. It shows that mining was far from the centre of Metallgesellschaft's activities. Therefore, it could not expect to receive an extraordinary amount of board attention. Thus, mining investments not only had to compare well with other mining opportunities, but were in fierce competition with projects from other divisions. In addition, mining was sub-divided into two separate departments -- domestic and international. These two departments had different management styles and diverging interests which resulted in a minimum co-operation between them. The domestic mining department was primarily interested in the survival of the local mines. These mines were characterized by rising operating costs and declining ore grades. It took a special commitment and continued ingenuity to develop and adjust to local conditions, and modern mining and processing technology, in order to remain competitive, or at least survive within the international mining industry. Local management

Jan 1, 1990

By Alistair Frame

INTRODUCTION In April 1988 discussions were about to start with BP on the possibility of buying their- mineral interests, and it took a long time to arrange a deal. I will talk about RTZ without BP Minerals, look at the new RTZ with BP Minerals, discuss the outlook for metal prices, and review the problems in South Africa and develop the case against sanctions on that country. RTZAT THE END OF 1988 Late in 1987, after completing a worldwide review of our strategic thrust, we decided: 1. That the business focus would be to remain a major diversified natural resource group with interests in related industries. 2. To divest non-core and low growth businesses. 3. To develop a logical acquisition plan. 4. To emphasise organic growth and, most importantly, to enhance shareholders' wealth by capital increase and a progressive dividend policy. Subsequently, we concluded that we should sell our oil and gas business and dispose of several assets for which we saw little growth potential. The disposal programme raised some U.S.$ 1,600 million, representing a significant capital gain on our various investments. All transactions were carried out by our small Head Office staff in London, without the help of merchant banks and lawyers, and we were able to safeguard the employment of our staff in all these operations. The most interesting disposal was of our oil and gas interests. Before the 1987 strategic review, we had ambitions to develop our oil and gas interests and to become the leader in the second division of European oil companies. Our interests, which were purely in exploration and production of oil and gas, consisted of the 100% owned RTZ Oil and Gas company, and 29% of LASMO, a publicly quoted U.K. oil and gas company with extensive worldwide interests. LASMO, in turn, owned 25% of Enterprise Oil, one of the more successful of the North Sea oil exploration and production companies. Prior to the end of 1987, our intention was to acquire control of both LASMO and Enterprise. However, when we evaluated the net asset value of these two companies based on our oil price assumptions, which were pessimistic for the next five years or so, we concluded that they were both trading in the market at significant premiums. This, taken with the additional premium required for acquisition and the high cost of exploration, led us to conclude that, since funds could undoubtedly be used to better effect, we should sell our interests. Turning to the other major achievements in 1988, we commissioned, and built up to design levels in a very short period of time, the Morro do Ouro gold mine in Brazil. This mine reached its design output of 100,000 ounces of gold per year within three months of start-up, which was on time and under budget. We are now considering a possible expansion of this property. In South America, Utah International, Mitsubishi and RTZ arranged non-recourse finance, with post completion guarantees, for the giant Escondida Project in Northern Chile. Financing came from a group of banks in Japan, Germany and Finland -- the countries to which most of the concentrates will be sold -- and from the LEC. The average output of the mine for the

Jan 1, 1990

By Sven A. Wehrwein

Leveraged buyouts are a fixture in today's market place. This paper will include comments on how LBO's are analyzed, structured and sold, as well as an overview on the present environment of LBO's.

Jan 1, 1990

By Robert F. Calman

OUTLINE FIVE EXAMPLES OF GOLD-LINKED FINANCINGS 1. Financing the Lupin Mine • Sale of Cdn $40.0 million of 12% preferred shares and Cdn $40.0 million of Gold Purchase Warrants @ $595 per ounce. 2. Financing the Copper Range acquisition • Borrowing 100,000 ounces from a Canadian chartered bank @ US$307 for five years. 3. Financing the Round Mountain expansion • Borrowing up to US $80.0 million in dollars, convertible into gold, repayable over five years from a group of North American banks. 4. Financing the Tenneco Precious Metals Division acquisition •Sale of SFr 110.0 million of ten year 3-718% bonds with warrants to buy 132,000 ounces of gold at US $560. 5. On Forward Sales, Puts and Calls • Gold, Silver, Canadian Dollars, Swiss Francs THE FINANCIAL RULES AT ECHO BAY 1. Never bet the company 2. Equity is the primary form of capital for a gold mining company 3. On debt 4. The Yardsticks for Corporate Decisions 5. Financial Community Relationships 6. Dividend Policy No Text Available Tables Follow

Jan 1, 1990

By D. Gignac, P. A. Studemeister, H. Koza

Two epiclastic horizons in an Archean volcanic sequence host the gold occurrences on the Dunraine property near Wawa, Ontario, Canada. The Grace horizon of cherty and pelitic tuff strikes northnorthwest and dips east. Native gold occurs with arsenopyrite in bedlike and podlike bodies of quartz lenses and stringers set in a pelitic matrix. The Parkhill horizon of lithic graywacke with associated flow-breccia strikes southwest and dips south, Native gold occurs with minor sulfides in similar bodies of quartz erratic within the Parkhill horizon. The auriferous bodies occupy paleotopographic channels and troughs within the two horizons. The former producers are the Parkhill mine with 1689 kg (54,300 oz) Au, Darwin mine with 473 kg (15,200 oz) Au, and Van Sickle mine with 48 kg (1536 oz) Au between 1902 and 1944. The gold occurrences are syndepositional with the host volcanic sediments laid during a pause in explosive volcanism. Fumaroles along steep gullies on the flank of a subaqueous volcanic center precipitated aprons of auriferous silica-sulfide mud. Downslope slumping resulted in exhalative debris flows; gold concentrated in flexures and depressions along slumpage channels. Renewed explosive volcanism covered the auriferous sediments with pyroclastic tuffs, arresting the slumping of in situ fumarolic deposits.

Jan 1, 1986

By W. V. Bluck, W. L. McMorris

Higher coal quality is being recognized in potentially lowering the cost of power as measured at the bus bar. Assessment of potential coal supplies for most power plants is now going beyond buying at the lowest delivered fuel cost. It is now taking into consideration other factors, such as handling, storage, pulverization cost, boiler fouling, post combustion cleanup, and waste disposal costs. New measurements of quality are being considered now by those producing and those consuming the fuel by assessing numerous variables in the total fuel cycle to achieve the lowest possible power costs.

Jan 1, 1986

By W. C. McBee, B. W. Jong, T. A. Sullivan

A sulfur concrete technology has been developed by the US Bureau of Mines, where chemically modified sulfur is used with suitable mineral aggregates to produce construction materials that are resistant to corrosion by acids and salts. This report presents a summary of the basic technology and results of testing the materials under actual operating conditions in 50 corrosive environments in 40 commercial plants. After four years of testing, there was essentially no evidence of material degradation or loss of strength. Regular concrete materials were attacked and, in some cases, completely destroyed under the same conditions. Testing is continuing to establish ultimate longevity and durability of the sulfur concretes. The materials are finding widespread applications in metallurgical, chemical, and fertilizer processing plants.

Jan 1, 1986

By G. W. Land, A. F. Duzy

There have been some problems associated with hot coal, defined as oxidizing coal heating toward ignition temperature, in shipments from the US to overseas markets. This paper will provide, first, a brief review, together with a selective bibliography. Second, a thorough discussion of coal oxidation is covered. Third, potential effects of storage are presented and, lastly, methods are suggested for the safe storage and bulk transfer of coal. The scope includes coal storage for power plants.

Jan 1, 1986

By D. B. Crouch, D. A. Poulter

The engineering and metallurgical assessment of the McLaughlin Project ore body concluded that an open-pit mine and cyanide leach mill process would be feasible, producing both waste rock and residual mill tailings. As a part of the planning and permitting process, site selection studies were conducted for the tailings and waste rock disposal. The site selection process began with a regional identification of potential disposal sites and proceeded through 1) regional screening, 2) elimination of sites with obvious fatal flaws, 3) qualitative ranking of site evaluation criteria, 4) quantitative ranking of sites, 5) field investigation, 6) evaluations of field data, and 7) selection of preferred sites. Based on this approach of site rankings and field evaluations, tailings and waste rock disposal sites were selected and recommended for the preliminary design phase of the permitting and project development process. The site selection study provided the documentation necessary to justify the use of these sites for waste disposal and enabled Homestake Mining Co. to anticipate and integrate environmental concerns with agency requirements into the planning process.

Jan 1, 1986

By A. S. Malicsi, I. Iwasaki

Differential flotation of bulk sulfide concentrates from Duluth gabbro into copper and nickel concentrates could be implemented by first destroying the hydrophobic coating with ozone and then by recovering the copper concentrate with a copper-selective collector. A number of parameters involved in the use of ozone, such as the sequence and the conditioning time of ozone treatment, the pulp pH, and the level of xanthate addition, were investigated.

Jan 1, 1986

By D. L. Passmore, J. D. Bennett

The degree of injury and days lost from work due to an injury are examined for selected electrical sources, occurring in conjunction with falls of the injured miner or with selected machinery, that could have been eliminated by use of diesel equipment. Although the number of preventable electrical source injuries is small relative to the total number of injuries during the period examined, many lost-time injuries could have been precluded and thousands of days lost from work could have been avoided.

Jan 1, 1986

By K. Hanumantha Rao, A. Nayak, . K. S. Narasimhan, S. N. Mahapatra

Selective flocculation studies carried out with iron ore tailings generated at Kudremukh iron ore plant indicate that a concentrate containing 63% iron can be obtained from the tailings containing 34% iron with around 60% recovery. This opens up the possibility of recovering most of the iron lost in the tailings generated at 2 kt/h (2200 stph) while processing 22 Mt (24 million st) ore per year. This would mean that the productivity could increase by around 50%. In these studies, it has been established that caustic degraded tapioca starch is a most effective agent for selective flocculation. While potato starch after caustic degradation can also be used, neither the parent starch nor the amylopectin compound is as effective.

Jan 1, 1986

By R. W. Smith, Z. Sadowski

The stabilities of finely divided mineral suspensions were determined as functions of pH and concentrations of polyethylene oxide, sodium ligninsulfonate, sodium dodecybulfate, and sodium oleate. In addition, the electrokinetic potentials of the minerals were determined under identical pH and additive concentration conditions. Flocculation or dispersion of the suspensions is discussed in terms of both the amount and manner of adsorption at the appropriate solid-liquid interface as it is influenced by additive concentration and pH.

Jan 1, 1986

By A. D. Fernie

Growing interest in pit crushing and conveying is evident from the recent many articles, technical papers, and new equipment development. Application of a pit crushing and conveying system is complex. Many factors, such as mine design, production scheduling, as well as initial and ongoing capital and operating costs must be thoroughly and realistically examined. This paper will address the fundamentals to be considered and review several approaches to developing a total system for a new and existing mine situation. The planning function will be outlined and operating and design criteria defined to interface the mining operation and the pit crushing conveying system.

Jan 1, 1986