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By J. E. Nesset, W. Zhang, J. A. Finch

Frother influences water recovery through control of bubble size and a chemical effect. De-coupling the two is necessary to establish the extent of the chemistry effect. A setup is described to give steady state water overflow rate (Jwo) along with measurements of bubble size into and on top of the froth. Arguing neither bubble size correlates directly with water overflow, a frother mass balance is solved to estimate the bubble surface area flux in the overflow (Sb0 ). The solution required measurement of frother concentration using TOC analysis and frother adsorption density using surface tension data. The relationship between Jwo and Sbo reveals the frother chemistry effect, quantified for discussion purposes by an equivalent water layer thickness.

Jan 1, 2009

By Edward Martinez

Due to its unique properties, chrysotile asbestos is used in many diversified applications. In recent years, a better understanding of the structure and properties of chrysotile has evolved due to the research efforts of many investigators. A summary of the results of some of these investigations is given. An attempt is made to show the relationships between the properties of chrysotile and its crystal structure. Examples taken from the literature are cited in which methods have been developed for modifying the properties to improve the performance of asbestos in some applications. These include the effect of pH on the positive zeta potential and the addition of sodium silicate to improve filtration characteristics. The dehydroxylation and formation of forsterite when chrysotile is heated are also discussed.

Jan 1, 1966

By D. C. Treilhard

After a brief history of the mining and smelting operations of Kilembe Mines Limited, this paper outlines the smelter layout and describes . the. daily operations at the Jinja plant. Particular attention 1s paid to the details of the furnace and converter operation. A subsequent section of the paper deals with the significant developments in plant metallurgical practice, covering both smelting and converting.

Jan 1, 1966

By A. D. Yell

"Recovery of water is always a major factor in the Beneficiation process. As Preparation Plants become larger the recovery of water for reuse, is a critical cost consideration. Tema Isenmann Inc in conjunction with our sister Company Multotec Manufacturing, has over the years, developed numerous different Screen Panels, Sieve Bends and Static Screens for dewatering. This paper will focus on a new innovation, the TeePee™ Panel which has double the open area of conventional Screen Panels. This results in efficient dewatering (reduced filter cake moistures) which allows for the use of smaller Vibrating Screens or increased capacity on existing Vibrating Screens. A major factor in the efficiency of any Screen Panel, including TeePee™ Panels, is the performance of the Vibrating Screen. If the Vibrating Screen does not have the required gravitational force or screen area to drain it will not dewater efficiently. Therefore a holistic approach has to be taken where the Vibrating Screen needs to operate at an optimal level, in conjunction with the correct Screen Panels, to achieve efficient dewatering. Key performance areas for Vibrating Screens are therefore detailed in this paper with an emphasis on important dewatering criteria. Case studies of different dewatering applications are included, where the use of TeePee™ Panels, has shown a marked improvement over conventional flat Screen Panels in reduction of filter cake moisture content.INTRODUCTION Dewatering can be done in a number of different ways and is largely dependent on the ore type, the particle size distribution and to what extent one needs to dewater will determine the method used. There are a number of different dewatering methods that can be used for particles above 200 micron, including Screen Bowl Centrifuges, Filter Presses, Static Screens, Static Sieve Bends and Vibrating Screens. This paper will focus primarily on Vibrating Dewatering Screens showing improved drainage and a reduction in the filter cake moisture content. KEY PERFORMANCE CRITERIAL FOR VIBRATING DEWATERING SCREENS For clarification the critical key performance criteria for Vibrating Dewatering Screens are set out in this paper. Dewatering Screens Vibrating Dewatering Screens are normally linear motion, either horizontal or inclined at 5 to 7° upwards with a vertical or back sloped plate at 45° to the rest of the screen deck. The back plate will often have screen panels in them to increase the dewatering capability, as shown in Figure 2 below."

Jan 1, 2017

By L. Jiang

This report investigated the dynamic recrystallization (DRX) phenomenon in magnesium alloy AZ31 billets to understand the deformation mechanisms and microstructure evolution during extrusion and other metal forming processes, Compression tests of coarse-grained as-cast magnesium alloy billets containing lamellar Mg17Al12 eutectic phase and (Al, Mn) particles suggest that temperatures higher than 300°C, strains greater than 0,25 and strain rates above 0,l/s lead to the formation of fine DRX grains in the deformed samples. Microstructural observations also indicate particle-stimulated DRX nucleation (PSN) during hot deformation of the AZ31 alloy, facilitated by the presence of Mg17Al12 and (Al, Mn) particles, While the Mg17Al12 is dissolved into the matrix at about 350°C, (Al, Mn) particles may remain effective for PSN at temperatures up to at least 400°C, This study suggests that alloy design with a proper distribution of second-phase particles can provide the desired microstructure for improved properties and formability in wrought magnesium alloys.

Jan 1, 2004

By N. S. Spence

INTRODUCTION WHILE TITANIUM, the element, has been known for over 150 years, titanium, the metal, is a relative newcomer to the metallurgical and industrial scene. The reasons for this chiefly lie in the refract1Hy nature of titanium compounds; the high melting point of the metal; the great activity of elemental titanium, particularly at temperatures close to .and above the melting point; and the pronounced deleterious influence of certain impurities on its mechanical proper-ties. Early efforts at production of the metal were, consequently, either unsuccessful or resulted in products having sub-metallic properties. With the considerable improvement in equipment, materials, and skills that have developed within the past twenty-five years, later investigators have had a better opportunity to overcome some of the inherent practical obstacles and to come to grips with the essential technical problems. NATURAL ABUNDANCE OF TITANIUM Titanium is one of the most abundant metallic elements. It has been estimated (1) that titanium comp-rises about 0.65 per cent of the earth's crust, and therefore ranks fourth among the structurally useful metals in the order: aluminum, iron, magnesium, titanium. It must be appreciated that the relative abundance of the element is only a crude indication of its potential availability, since a very substantial proportion is present as a minor constituent in practically all igneous rocks. By comparison, present-day ores of titanium are relatively few and are but a minor fraction of the estimated total titanium contained in the earth' s crust.

Jan 1, 1951

By J. Fellowes, V. Landais, J. Robson, J. Carr

"Aerospace Al-Zn-Mg-Cu (7xxx) alloys are known to be susceptible to environmentally assisted cracking (EAC). This phenomenon has been studied intensively for many decades, leading to empirically adopted methods to mitigate this problem through overaging and composition design. In parallel, many theories have been developed to explain EAC in 7xxx, but none is yet universally accepted. Today, a number of emerging techniques offer potential to shed new light on EAC in 7xxx. The purpose of the present paper is to demonstrate how X-ray tomography (XCT) combined with electron microscopy can be used to identify the true crack path in 3-dimensions, and hence identify material for site specific electron microscopy analysis. Composition mapping over large areas to high accuracy has been performed using a modern electron microprobe analysis system. This has been combined with transmission electron microscopy to investigate local composition in matrix and precipitates at high resolution. This combination of techniques across length scales offers the potential to provide new insights into the links between local composition, microstructure, and EAC resistance.INTRODUCTION Environmentally-assisted cracking (EAC) is a phenomenon which dramatically decreases the performance of metals and can cause premature failure of large structures. Observed in situations where components were not subjected to critical loads and no widespread corrosion was involved, this type of brittle failure is extremely difficult to predict. The EAC designation covers a number of phenomena, e.g. stress corrosion cracking (SCC), hydrogen embrittlement (HE), corrosion fatigue (CF), etc. Initially identified in steels, EAC can also affect other metals such as high-performance aerospace aluminium alloys, and this phenomenon has been a concern for industries for decades. Extensive research has been conducted on the effects of various environments (moist air, saline water, dry hydrogen gas, etc.) on microstructures and crack propagation, however no consensus has been reached and the exact nature of the mechanisms that control EAC is still being debated (Birnbaum & Sofronis, 1994; Gangloff, 2007; Holroyd & Scamans, 2013; Lynch, 2012; Oriani, 1972; Scamans, Alani & Swann, 1976, Young & Scully, 2002)."

Jan 1, 2018

By Gordon A. Gross

During the last half century major steel industries of the world have become dependent on iron and manganese resources derived from siliceous ironformation sediments. More than two billion years ago vast amounts of iron and manganese were deposited in ironformation sediments on all continents and until recent years their genesis was considered to be a uniquely Precambrian phenomenon. Research work has demonstrated that the origin of the banded ironformations was related to major tectonic features and associated volcanogenic processes that were active throughout geological history. Similar sedimentary-tectonic environments are being explored on the seafloor where metalliferous sediments are forming today. Ironformations are now considered to be a major part of the stratafer group of stratiform metalliferous deposits. They developed in sedimentary basins in areas where deep tectonic fracturing intersected high thermal gradients in the earth?s crust and gave rise to profuse volcanism and the hydrothermal effusive discharge of metals in the vicinity of the volcanic centres. Concepts for the genesis and metamorphism of stratafer deposits as revised in the last half century have had a profound impact in the development of iron ore resources and have had a dramatic impact in the use of metallogenetic concepts for guiding exploration for other mineral resources. They are based on the tectonic history and stratigraphy in the sedimentary basins, the role of hydrothermal volcanogenic processes , as well as environmental and sedimentation factors which influence the deposition of silica, iron , and other metals that were emphasized in the past. Topics of special interest in the genesis of ironformation and stratafer deposits and for guiding mineral exploration are: biomediation in their sedimentation and genesis, the significance of metamorphism in the processing and beneficiation of iron ore and in the genesis of iron ore by natural enrichment processes, syngenetic concentrations of Mn, Ti, Cu. Zn, Pb, Ni, Co, REE, F, Ba, B, As, Hg, W and Au in ironformations and stratafer lithofacies, and the mobilization of gold and other elements by alkaline solutions during diagenesis of ironformation and other stratafer metalliferous sediments.

May 1, 2003

By H. Staton, XPS Consulting & Testwork Services, T. Deng, M. Kelvin

"Lundin Mining’s Eagle Operation, located in Marquette County, northern Michigan consists of a mine and concentrator that processes a Ni-Cu-(PGE) ore. Mine production began in 2014 and is expected to achieve production of approximately 23,000 tonnes of Ni and 20,000 tonnes of Cu per year. The ore is trucked to the Humboldt Mill, where both a Ni and Cu concentrate is produced.XPS Consulting & Testwork Services (XPS) has assisted the team at Eagle since 2013. Prior to start up, the ore was piloted at the XPS lab in Sudbury, Ontario to demonstrate the concentrator flowsheet and establish flotation operating strategy. XPS consulting metallurgists worked closely with the Eagle team during the commissioning of the plant providing troubleshooting, sampling, metal balancing expertise and support. Finally, a series of monthly composites over a 6 month period was submitted for mineralogical characterization to assess plant performance, identify opportunities for improvement and to provide a baseline for the future operation.Lundin’s investment to test the ores ahead of mining and to team with XPS’s experienced mineral processing engineers to help commission the plant has led to the plant achieving concentrator production targets shortly after startup. The commitment to training and implementation of best practices, and a culture where ongoing testing is the norm, puts the Eagle Operation on sound footing for future operation.INTRODUCTIONLundin’s Eagle Mine is a subsidiary of Lundin Mining located in the upper peninsula of Michigan. The mine itself is an underground operation and the ore is trucked from the Eagle mine site 2 hours to the Humboldt mill.The ore is an ultramafic hosted high grade Cu Ni deposit and exists as either massive or semi massive sulphides. The high resource grade of Cu (2.49%) and Ni (2.93%) make this a valuable ore source. (Owen & Meyer, 2013) A metallurgical team was put together by Lundin to ensure the mill was designed and commissioned to optimize metallurgy in the shortest time from this valuable deposit. The commissioning plan targeted commercial production by Q1 2015."

Jan 1, 2016

By G. R. Webber

CHEMICAL AN AL YSIS by x-ray emission spectrometry has become increasingly important during the past few years. The method is analogous to optical spectrography ?with x-rays being used instead of light and should not be confused with methods of x-ray diffraction used? for identification of minerals and chemical compounds. X-ray emission spectrometry has many advantages for both qualitative and quantitative analysis. Its optimum concentration range is higher than that of the optical spectrograph, and the group of elements which can be detected is not identical to that which can be detected by the optical spectrograph. Elements which can be detected by the x-ray spectrometer are those elements from magnesium (atomic number 12) to uranium (atomic number 92) in the periodic table. The lightest elements in this range have low sensitivities and more specialized equipment is necessary for their detection than for the heavier elements. A large number of applications of x-ray analysis have been directed toward the analysis of ores, metallurgical products, and related materials (see References at end of paper). A more complete bibliography is presented in the Norelco Reporter, Vol. 3, 1956, pp. 37-39. The periodicals Analytical Chemistry and Applied Spectroscopy are a good source of current articles and references.

Jan 1, 1957

By A. A. el-Geassy, A. A. el-Tawil, Hesham M. Ahmed, Bo Bjorkman

The Iron and steel industry is one of the most intensive energy consuming processes. The majority of iron making processes is now directed towards the uses of fossil-based energy sources like coke, coal and oil. Recently, emphasis has been paid to replace part of fossil- based energy sources with renewable biomass-derived reducing agents. In the present work, the possibility of the effective use of woody biomass in carbon-iron oxide composites was investigated. Wood powder was carbonized in N2 atmosphere at 300 up to 450oC. The carbon content in the produced bio-char increased with temperature. The porosity of the char arises from maintaining the cellular structure inherent in wood biomass increases with temperature. The reduction behavior of four iron oxide-bio char composites having different fixed carbon content were carried out non-isothermally up to 1200oC in Ar atmosphere using thermogravimetric anlyser (TGA). Quadruple mass spectroscopy (QMS) was also adopted to measure the CO, CO2 concentrations in the off gases resulted during reduction process. The effect of volatile matter on the reduction of iron oxide was intensively studied. The different phases developed in the reduced product were identified by X-ray diffraction (XRD). The reduction of composites was found to proceed in a stepwise manner (Fe2O3?Fe3O4?FexO?Fe).

Jan 1, 2015

By Roger K. M. Bellows

The last coal-fired power plant to be built in Canada came into operation in 1994. Since then, Canada?s electricity requirements have grown substantially but no new coal-burning plants have been built. This country has abundant resources of coal from coast to coast, but in recent years, this has not affected our choice of fuel. In many other countries this is not the case, and the use of coal is growing rapidly. Although this presentation covers the topic from an Alberta perspective, some of the conclusions can be extrapolated to the rest of the country, and perhaps even to other countries. The coal found in the Alberta plains is particularly attractive because of its low cost and low sulphur content. Yet coal is no longer the fuel of choice, and a long-standing provincial government policy to favour coal for electricity generation has been ignored for more than a decade. Considering the lack of good alternatives, it seems obvious that we should look to coal as our primary energy source in the generation of electricity and for other industrial applications. This paper discusses some of the reasons that coal has fallen out of favour, particularly with respect to electricity generation. The significance of the deregulation of the electricity industry will not be ignored. In addition, the author will offer his opinion on the question of what it will take in order for coal to once again become the favoured fuel.

May 1, 2001

By D. J. Houlahan

ABSTRACT Sorting has the potential to massively improve the pro?tability of mining base metal, hard-rock ores. However, several barriers to the increased application of sorting have been identi?ed, including a lack of mineral-speci?c sensors available to the industry. This paper presents the outcomes of acollaborative project to develop an induction-balance sensor speci?cally for low-grade copper and nickelores. A review of the basic principles of induction-balance sensing and of the sensor-rock interaction is presented. Early development and testing of the sensor on ores from the Thompson nickel belt in northern Manitoba is discussed. Shortcomings of the prototype identi?ed in early testing have now been over-come, leading to improvements in design and construction, as well as sensor accuracy. The improve dsensor has now been tested on additional ores from the Sudbury Basin, with good results. A discussion of potential applications is presented and recommendations for future development are made.

Jan 1, 2010

By G. M. Swinkels

Sherritt Gordon and Cominco, with financial assistance from the Canadian Government through PAIT, have developed a hydrometallurgical process for refining copper from sulphide concentrates. The main objective of the project was to develop a process applicable to a wide range of concentrates with respect to copper content, other metals content and impurities, within the economic parameters set by present smelting and refining practice. Other important objectives were to recover sulphur in its elemental form and not as sulphur dioxide to assure improved hygienic conditions and a negligible impact on the environment. For the most abundant and relatively refractory chalcopyrite concentrates, the first step of the process is thermal activation with hydrogen to decompose chalcopyrite and pyrite, commonly associated with it, into more reactive sulphides more amenable to leaching. The iron is then selectively extracted by sulphuric acid leaching and subsequently rejected as jarosite. High-bornite concentrates do not require thermal activation and acid leaching; they are subjected to another hydrometallurgical iron removal step. The high-grade copper sulphide resulting from iron removal, and containing all of the initial precious metals, is then leached under oxygen pressure to produce elemental sulphur and copper sulphate solution . After suitable solution purification, the copper is recovered by high-current-density electrowinning as wire-grade product. Precious metals remain in the leach residue and are recovered after separation of the gangue materials and elemental sulphur. The laboratory and pre-piloting test work had indicated copper and precious metals recoveries comparable to those achieved in current practice. The process was shown to be suitable for handling relatively low-grade concentrates and, in addition, it was capable of high recoveries of associated zinc, molybdenum, nickel and cobalt in saleable form.

Jan 1, 1978

By M. Razavi

This investigation is part an overall investigation on the effect of sodium silicate on the properties of the mine backfill. The results presented will highlight the effects of binder dosage, sodium silicate concentration, and pulp density on the performance of stabilized sodium silicate-fortified sand pastefill samples. Binders implemented for these experiments consisted of cement, slag, and sodium silicate in various proportions. The binder content varied from 3 to 9 wt% (total dry weight) and sodium silicate concentrations was adjusted at 2 and 4% (total binder weight). Moreover, pulp density was adjusted to values between 80 and 83 wt%. For completion of the aforementioned phase of the study, series of sand pastefill test samples were prepared and cured for 28, 56, or 120 days, in a humidity and temperature controlled room. The specimens were tested for uniaxial compressive strength (UCS). In order to study the effect of sodium silicate on microstructures of stabilized sand pastefill, some MIP tests were conducted on selected samples. The results of this investigation evaluate the use of sodium silicate as a partial replacement of cement in stabilized backfill. The analyses of the results demonstrates that, with an increase in binder content and a decrease in pulp density, the UCS values of sand pastefill samples increase. Further more, the results indicate that increase in addition of sodium silicate does not necessarily result in higher strength minefill.

May 1, 2007

By Denis Blackburn

La Direction générale du développement de l?Industrie minérale (DGDIM) du ministère des Ressources naturelles et de la Faune (MRNF) du Québec tient un inventaire de toute l?activité minière sur le territoire. Cet inventaire s?est enrichi, au cours des dernières années, d?un grand nombre de projets dédiés au fer ou à des substances qui y sont associées (titane, vanadium, phosphate). Actuellement, cinq régions du Québec sont principalement touchées par la recrudescence de projets dédiés au fer : Fermont, Schefferville, Baie d?Ungava, Baie-James et Chibougamau. Fermont et Schefferville sont les régions les plus actives. Les infrastructures en place, telles que les routes, les chemins de fer, les ports, les lignes électriques et les municipalités, ont atteint, dans certains cas, leur capacité et de nouvelles infrastructures devront être construites pour satisfaire les besoins. À la Baie-James et sur le flanc ouest de la Baie d?Ungava, des projets d?exploration sont aussi en cours. Le manque d?infrastructure pourrait peser lourd sur le développement de projets miniers dans ces régions. Enfin, dans le secteur Chibougamau/Matagami et à quelques sites ailleurs au Québec, des projets d?exploration qui visent le vanadium, le titane ou le phosphate pourraient aussi fournir comme produit secondaire des concentrés de fer. Tous les projets, décrits dans cet article, sont situés sur le territoire du Plan Nord du gouvernement du Québec.

May 1, 2011

By B. Galy, L. Giraud

"This paper compares Canadian provincial mining safety regulations regarding the use and testing of cage safety catches, including a brief history and evolution. Regulations are similar across provinces, with only slight variations. Currently, the “Ontario-type” safety dog is the most commonly used safety catch in Canada. Performance estimation of the compensation mechanism for different safety-dog shapes and tooth angles show this shape works well and has consistent braking results, but the best efficiency is obtained for initial tooth angles greater than 10°. Miner safety is questionable for lightly loaded cages, an issue that should be addressed technically and legislatively.RÉSUMÉ Le présent article compare les diverses réglementations de sécurité minière concernant les parachutes des cages dans les provinces canadiennes ainsi que les essais qu’ils doivent subir. Il semble que les réglementations soient semblables à travers les provinces avec quelques légères différences ou divergences. Un bref historique des parachutes et de leur évolution est présenté. De nos jours, le parachute de « type Ontario » est le plus fréquemment employé à travers le Canada et il présente des résultats de freinage uniformes. Une estimation de la performance du mécanisme de compensation pour les diverses formes de taquets de sécurité et les divers angles des dents montre que cette géométrie fonctionne bien; cependant, la meilleure efficacité est obtenue pour des angles de dents supérieurs à 10°. La sécurité des mineurs est mise en jeu pour des cages faiblement chargées et ce point devrait être traité du point de vue technique et du point de vue législatif."

Jan 1, 2016

By G. Reuben Yourt

This paper consists of two main parts. The first, under the heading Preparations, deals with suggested preparations to be carried out in advance so that loss of life might be prevented should a fire occur. The second part, under the heading Fire Procedure, deals with actual organized procedure to be followed for the preservation of life if and when a fire occurs. The writer realizes that these preparations and procedures may be to some extent applicable to only a few mines with a relatively simple vein system and that each mine would need to formulate a procedure to conform to its own particular conditions, scope, and degree of complexity. Preparations 1. - Ventilation Control The objective in ventilation control in the event of a tire underground is to keep the travelways, through which men must pass to reach surface, supplied with air not deficient in oxygen and free from gases and smoke. Without some control of the volume and direction of the main air currents flowing through the mine, the success of removing men to surface might be seriously hampered. ? This control is achieved by means of mechanical ventilation forcing air through desired airways and workings with the assistance of doors to regulate the volume and direction of the air flow. In connection with fans and doors, the possibility of short-circuiting should always be taken into consideration, as it can often nullify the value of a fan and possibly trap men in dangerous atmosphere if the short-circuiting involves the fire area. Main fans are often installed so that they can be reversed in a short time. However, fans should not be reversed unless this is found absolutely essential by those in authority. Misjudgment in this respect could cause the loss of life to men who might naturally take refuge in what they believe by experience to be a fresh air stream. Another precaution to be taken is to see that doors in airways are fastened in a fixed position so that they cannot be sucked or blown open when the fan is reversed, otherwise short-circuiting could possibly render the fan useless.

Jan 1, 1947

By H. M. Kim, J. Rutqvist, D. W. Ryu

"Demand of high pressurized gas storage in underground rock caverns is increasing. Compressed natural gas (CNG) and compressed air energy storage (CAES) are one of the promising examples after since lined rock cavern (LRC) concept has been verified through in-situ pilot tests. Two key essential concerns of high pressured gas storage in underground rock caverns are mechanical stability of the cavern against high inner storage pressure and the risk of gas leakage from the caverns.In this study, we introduce our results of numerical simulations so as to investigate the potential of monitoring for gas leakage at a pilot facility for CAES in underground LRCs. The pilot facility was constructed at a comparatively shallow depth of 100 m, compared to the previous cases with several hundreds of meters, aiming at validating the feasibility of the LRC storage concept in which inner sealing liners, consisting of steel plate and concrete linings, are installed inside the excavated rock caverns (KIGAM, 2011). Compressed air may leak through either initial defects of inner containment liners such as imperfect welding regions and in-situ construction joints of the liners, or through structurally damaged points of the liners during the CAES operation where compression and decompression of the caverns are necessarily repeated and their structural robustness can be deteriorated.For this perspective, we carried out a coupled thermodynamic and geomechanical deformation analysis using TOUGH-FLAC simulator, and investigated the effectiveness of strain monitoring method in detecting mechanical failure of liners which may provide major pathways of air leakage. We therefore used an equivalent continuum model to relate the localized tangential strain to fracture permeability changes, which was developed in our early work (Rutqvist et al, 2012). In detecting and characterizing the leakage location, we tested a cross correlation technique using the synthetic pressure responses monitored in case of the failure of the inner liners. From the investigations, we showed that tangential strain, rather than radial, monitoring especially at the inner face of the sealing liners can be more effective in detecting the mechanical failure of the liners.In localizing the leakage point, we noted that the interface between the inner liners and surrounding rock may not be perfectly bonded so as to increase permeability through which any leaking air pressure may migrate more dominantly. We also demonstrated that the cross correlation of the time histories of pressure measurement especially at these interfaces can be useful in identifying the leakage point. These results may provide useful information in overall design of monitoring and alarming system of our upcoming CAES pilot facilities."

Jan 1, 2015

By Herbert D. Drechsler, James B. Stephenson

"AbstractThe paper identifies the major components of price change which affect the determination of the internal rate of return of a mining project. It illustrates several price indexes which may be used to measure general price increases, identifying techniques which might incorporate them into mine valuation procedures. The ""hurdle rate"" for new investment is discussed.IntroductionDECISIONS regarding the value of an orebody and whether or when to mine an orebody are based on an estimate of the cash flows which would be associated with its exploitation. These pro-forma cash flows represent cash in or out of a possible mineable deposit and include exploration and construction costs, sales revenues, operating expenses, taxes, debt borrowings, interest and debt repayment. It has long been recognized that when combining the cash flows occurring over the life of the mine, dollars received or paid out early have greater value than those received or paid out later. This time value of money has been incorporated into mine evaluation calculations through the use of present-value or discounting techniques. Another factor affecting mine valuation, inflation, is not accounted for by valuation techniques now in use. In recent years, price changes have become more volatile. In the past, price change could easily be ignored when evaluating potential mines. Today, the combination of larger investments and greater price volatility leads to great concern about the effects of price change on mine valuation."

Jan 1, 1977