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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 Stewart Murray, Philip Klapwijk

INTRODUCTION Forecasting commodity markets is like predicting winners in a horse race: to get the answers right, one needs both luck and judgement. Commodity analysts bear some resemblance to racing tipsters as they try to convince interested parties that they have an inside track on which metal is going to win the great minerals race of the 1990s. Commodity analysts share some features with the gentlemen of the turf: • They influence other people in how to spend risk capital, • They don't put their own money at risk, and • If their tips consistently fail to deliver, then they end up looking elsewhere for employment. In order to find winners we need to know about the kind of race we are in and the strengths and weaknesses of all the runners. Miners are not interested in a five furlong sprint: their race is a long distance affair -- after all, the lead-times between discovery and start-up generally approach a decade for mines that will provide the staying power which leaders require in this industry. We need to look at the environment in which our commodities will be competing: in racing parlance, the going. Our equivalent is the economic background: just as some horses are at a relative advantage when the going is soft, so some commodities will do better than others if economic growth is sluggish. If we are going to pick the winners for the late 1990s, and as an industry, make the right investment decisions, nothing is more important than being able to forecast (with at least a semblance of accuracy) how and where the world's economy is going to develop in the next decade. In addressing the question of whether minerals are going to be leaders in the 1990s, this paper considers the idea that it will increasingly be the world outside the industrialised OECD that will provide the incremental growth in demand for mineral products. Economic growth in the Developing World is fundamentally different from that in the OECD, and the pattern of demand for materials in relation to economic output is much more favourable than in the OECD. If we are to forecast the future, we need to be able to understand the past, both in the boom times of the so called Golden Sixties and in the lean years that followed them. This should help us to decide whether the future is going to be like one or other of these extremes or, on the other hand, a return to normality. Having forecast the going, we can look at individual competitors. • Which are best placed to take advantage of the economic, social and industrial trends that we can now dimly foresee? • Which can resist the continued onslaught of the new materials and technologies? • Which of them will best weather the economic storms (assuming that recessions have not yet been abolished)? If we can provide answers to these questions, we will be well on our way to picking winners, i.e., the metals and minerals that will reward their owners with growing demand, steady (and high) prices leading to profits beyond the dreams of avarice.

Jan 1, 1990

By Ian MacGregor

INTRODUCTION I retired in 1977 and have been enjoying myself ever since doing odd jobs for various people - on occasions, politicians. I commend it to you as post retirement - get involved in situations that nobody else will take on. It produces all sorts of excitement, it is a lot of fun and, courtesy of the media, you provide great raw material for their current Punch and Judy shows. The example of the adventures in the Escondida financing made me think about the history of the minerals industry in the United States. In order to see more clearly what is going to happen in the future, we have to look at the past and what we have learned, and try to extrapolate from that a scenario for the future. This paper is about global material cycles and the financial needs of the extractive industries. Since about 2,000 years B.C. we have been living in the Iron Age. Since about 4,000 B.C. we have been living in the Copper Age. These have been the two foundations of modern industrial society. Understanding the use of metals and materials helps us understand the civilization in which we live today. Let me focus more closely on the United States, particularly in this century. In the first two-thirds of this century the United States was growing and expanding and developing. It was providing for its inhabitants a society which was enjoying the benefits of a rising standard of living, improved opportunities and the ability to support a population growing at quite a dramatic rate. It is still growing. In the Department of Commerce, there is a clock that shows how many people there are in the United States. It turns all the time; the numbers are going up. On January 21,1980, when Ronald Reagan was sworn in as President, the number on that clock was a little over 220 million, and in the last week before he left, it was travelling towards 245 million. During his period in Washington, we have added , the equivalent of one total state such as California. That gives the dimensions of the U.S. appetite for raw material inputs. The inputs are of critical importance. COMPARATIVE ADVANTAGE During the first two-thirds of this century, the minerals sector enjoyed comparative advantages. There was a clear understanding of the importance of minerals enshrined in the tax legislation of the country from the early decades of this century - the depletion allowance. No other country identified as clearly that the supplies of minerals were finite. As they are used up, just as with a wearing-out machine, one must get capital back to replace the resource when the time comes. Within the last decade, that idea has been questioned and criticised. It is now seen as giving money away to a preferred part of the economy, instead of recognizing what depletion is all about. In previous times it insured that the U.S. always was able to regenerate the capital in its minerals industry, so that it could remain competitive. The U.S. had plenty of everything, including energy. We had a growing population. Equally important, we had an agriculture that led the world in productivity, even as far back as the turn of the century. It continues to do so. We still retain that comparative advantage, an ability to produce our foodstuffs in quantity and quality at excellent cost. Look at another ingredient of our comparative advantage, the energy position. We ran through the first two-thirds of the century with ever- decreasing energy costs. In the 1940s and 1950s the coal industry went into a decline. Why? Because the $3.00 - $5.00 a ton cost of mining coal in the U.S. represented relatively expensive energy. A ton of good grade bituminous coal contains 25 million BTU's. $0.20 a million BTU's represents $5.00 a ton at the pithead. That price was undermined by the increasing ability to find petroleum at even lower costs. At the apex of the growth of development of the American dominated

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 J. A. Herbst, O. A. Bascur

Fine coal cleaning by froth flotation has become common practice in the US with more than 73 kt/d (80,000 stpd) treated in this way. In spite of this large tonnage, developments in the automated control of coal flotation circuits have lagged significantly behind those for mineral systems. The primary reason is that instruments have not been available for the online measurement of carbon ash content or other critical variables in coal slurries. A second reason is that the influence operating variables have on coal flotation are not completely understood. During the last few years, some of the needed instrumentation has been developed, while an improved knowledge of the flotation process itself has occurred through mathematical modeling. As a result, certain control strategies for coal flotation are beginning to emerge. This paper attempts to evaluate several control strategies using a detailed flotation dynamic simulator, Dynafloat. After construction of a process matrix for the system of interest, promising alternatives for linking manipulated and controlled variables were analyzed. To develop combined grade and recovery control strategies, it was necessary to construct a grade/recovery map with the aid of the simulator to drive the system to known, final, feasible grade/recovery operating conditions. Finally, an advanced strategy that uses an on-line model to identify disturbances and take control actions is proposed.

Jan 1, 1986

By M. J. Shulman

With the spiraling cost of exploration, all stages of exploration must be optimized. Search theory calculates the optimal distribution of effort by maximizing the probability of discovery under the constraint that the total exploration budget is not exceeded. It may help formulate strategies during the reconnaissance phase of exploration. An incremental optimization analogous to the exact solution of the search problem is introduced. In conjunction with the optimization, various stopping criteria can be defined. The stopping criteria terminate exploration in an area during a particular stage. It does not refer to abandoning exploration. The following stopping criteria were considered: the exploration effort in an area should not exceed a maximum value; the posterior target location probabilities should not be less than a percentage of the initial probabilities; the change in the posterior target location probabilities should not be less than a given value; and the change in the marginal rate of return should not be less than a given value. The incremental optimization and the stopping criteria are used to allocate reconnaissance mapping and sampling effort for phosphorite in the Sinai Peninsula, Egypt.

Jan 1, 1986

By M. S. Azun

I do not at all agree with the basic points of the author's conclusion. The use of lognormal or normal model to respond to the attribute distribution function should be carefully questioned. If fitting a distribution function of regionalized variables is the main purpose, one may employ one of certain well-known families of distributions, such as Tukey's lambda functions. For instance, the distribution function of gold assay values studied by Krige (Krige, 1978) may fit the lognormal model well, but one should not exclude that the basic idea of using the distribution function of observed data is to have insight of the physical mechanism that gives rise to the regionalized variables. In Applied Geostatistics, there are many examples considering only lognormal or normal model for the distribution function of geostatistical data even if the observed distribution function has more than one mode. Of course, using lognormal or normal model always brings easy computation for the statistical properties of attribute under investigation. Still, I object to adopting any of those models without having any "statistical inference." As seen from the author's paper, lognormal and normal model produce the same average grade (0.746% copper) and almost the same sample variance. Therefore, which model explains the probabilistic behavior of ore deposit is always an important question that should be replied by the geostatistician using not the common sense but the statistical and probabilistic methods. For kriging procedures, such as linear kriging, one should describe either second order stationary properties or bivariate properties of regionalized variables. Second order properties, such as correlogram function or semivariogram function, are the inputs of the so-called kriging equations. Selecting one of any useable models for the observed second order properties, such as spherical model, is not easy since the models are not based on the correlations structure of the regionalized variables. How those models being used in Applied Geostatistics can be distinguished is another important problem. One may develop many fitting models to respond to the observed second order properties of regionalized variables. However, I suggest that the model should be based on the probabilistic behavior of geologic process. The author used spherical model for copper, wolfram, and silver grades from isotropic sector (Fig. 2, 4, 3b) and exponential model for silver grades obtained along raises in isotropic sector (Fig. 3a). It seems that those semivariograms given in Fig. 3b for isotropic sector and Fig. 4 may be described by the random model implying that regionalized variables do belong to renewal process (Azun, 1983). If I knew the total number of data points used in estimation, may prove that my conclusion is correct. Recalling the test for the first order sample correlogram value, the test procedure is introduced such that the independence is rejected if [Ir(1) I > Za/2 N1/2] where Za/2 is the a/2 percentile of standard normal random variable and N is the total number of samples used in estimation (Azun, 1983). For the other observed semivariogram functions I suggest the author might try to use the so-called "Markovian model" describing not only the correlation structure of regionalized variables, but also the physical mechanism that produces the regionalized variables. The Markovian model for correlogram function is, [p (h) = T 1ih , h>1 ,] The Markovian model for the other second order properties of ReV are also derived. [T veß], in the above equation, show, for example, structural change and mineralizational variation in a considered deposit, respectively (Azun, 1983). In selecting any model, it is not easy to search for the "best" response to the observed second order properties of ReV's. The Markovian model, based on a theoretical understanding of underlying mechanism, gives more information about the occurrence of regionalized variables and respond to all properties. Random model and the so-called hole effect structure can be easily defined as a special form of the Markovian model (Azun, 1983). An estimation of any second order properties of regionalized variables may be computed through (N-1) lag. However, the dependency between the regionalized variables may be deemed to have "died out" after the so-called stationarity width (range). In practice, the estimation is carried out through 25% of the total number samples available. Therefore, the large fluctuations around the zero level and variance for correlogram or covariogram function and semivariogram function, respectively, cannot be observed. Since the number of pairs involved in the estimation of higher second order properties is small, the estimation variance at those lags is large. There is no need to show higher order estimated second order properties. After using one of any kriging procedure for block estimation, the distribution function of average grades has the same mean as the drilling sample grades but

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. Abata

This paper discusses recent technology dealing with the use of computer graphics in the mining industry. It presents a newly developed computer software package specifically designed for use in underground mining operations. This software package, developed under a US Bureau of Mines contract, 1) displays mine ventilation schematics and other representative illustrations for a real time data acquisition system and 2) uses the Bureau-owned Minefire and Ventilation Code for display of ventilation and contamination predictions on the microprocessor system. The package uses a unique system of display indexing that provides a simple yet efficient method of recalling a series of mine schematics detailing an underground operation and an alarm acknowledgment scheme that provides an effective method of identifying problem areas that may exist in the mine network. The package was written in Fortran for a 64-kilobyte, Z80-based microprocessor computer.

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 R. C. Rastogi, F. F. Aplan

The goal of this study is to evaluate the coal flotation process and the interaction of the chemical (reagent) and hydrodynamic (machine, operational) variables as they affect yield, flotation of various sized particles, and sulfur and ash rejection. Coal flotation is found to follow a first order process with the coal floating much faster than either pyrite or ash. This circumstance may be used to achieve gangue rejection during flotation. When floated with MZBC, cresol, or pine oil frothers, coal floats in the size sequence: 108 pm ( - 65 mesh), 589 x 808 pm (88 x 65 mesh), and 1.17 mm x: 589 pm (14 x 18 mesh). However with a substantial amount of fuel oil collector, all particles tend to float roughly in proportion to their content in the feed. An increasing aeration rate was found to be the most important variable in increasing the coal flotation rate. This increase in flotation rate, unfortunately, is also accompanied by an increase in the flotation rate of the pyrite. The rejection of pyrite during coal flotation is best accomplished at low aeration rates, low frother concentrations, and low impeller speeds.

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 J. B. Gwiazda

This work contains a description of a new design of lemniscate-guided powered roof support units, with a discussion of currently designed supports and their interaction with the roof. Conventional roof supports of this type present a serious reaction with the roof because of the horizontal displacement of the canopy in the course of decreasing support height as the support takes weight. The new design presented eliminates previous disadvantages of lemniscate supports and ensures proper performance of the latter in relation to the roof of a mine working.

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

By J. W. Harshbarger, E. L. Montgomery

The region of metallic ore deposits in northern Chile, southern Peru, western Bolivia, and northwestern Argentina occurs in arid zones at altitudes as high as 6 km (19,700 ft). Because surface water supplies are meager, new mines require unexploited sources of water. Prolific ground water aquifers occur in salar basins in this region of the Andean Highlands. Exploration water wells have been constructed and aquifer characteristics have been tested in eight salar basins. Results indicate ground water quality is good. Aquifer transmissivity and storage computed from results of pumping tests indicate maximum capacities of more than 170 L/sec (2700 gpm) for individual production water wells. Results of investigations conducted by the authors demonstrate that ground water reservoirs in the Andean Highlands comprise a source of large quantities of water for the mineral industry.

Jan 1, 1986

By R. E. Ray, J. W. Stevenson, J. A. Berry

Conventional concrete block plastered with a cementitious coating is the most common material used in the construction of permanent stoppings to direct airflow in underground mines in the US. All mines experience various degrees of strata convergence depending on depth of overburden, geological conditions, and type of roof support employed. Strata convergence will cause cracks and joint openings in masonry stoppings, resulting insignificant air leakage losses. Where strata convergence is severe, complete structural failure of the stopping can ultimately occur. Reconstruction of damaged or destroyed stoppings adds expensive overhead to mining operations, and even greater expenses are incurred from the additional fan horsepower required to overcome leakage losses. Ideally, a stopping should maintain high resistance to airflow while yielding to strata convergence. By properly incorporating a polyisocyanurate rigid foam material within the masonry block structure, stopping service life can be increased in mines experiencing strata convergence problems such as floor heave, roof loading, and lateral rib movement.

Jan 1, 1986

By J. L. Wilson, D. L. Emmons

The Tucker Hill perlite deposit is located in the northwestern portion of the Devils Garden lava field in Lake County, south-central Oregon. The perlite occurs in the chill margin of a late Miocene composite rhyolite lava dome that exhibits distinct cooling zonation. The chill margin is composed of an outer glass envelope, which contains commercial-grade granular and vesicular perlite, and an inner glass envelope, which contains onionskin perlite of local commercial quality. Glassy rhyolite and rhyolite compose the lava dome core. The entire dome complex encompasses at least 5 km2 (2 sq miles). Expansion tests in commercial-scale furnaces indicate that the perlites are suitable for a wide range of applications and compare favorably with commercial perlite ores. The large tonnage deposit appears competitive for markets in the midwestern and upper northeastern states, and the Pacific Northwest of the US.

Jan 1, 1986