Search Documents

By D. W. Alexander

In 1993, CONSOL began investigating new methods of permanently filling coal mine shafts, which after ventilation is stopped, may contain a potentially hazardous atmosphere. Fill materials such as fly ash/cement can be pumped, are non-combustible and non-incendiary but tend to flow into the mine entries. A non-flowable mixture has been developed that minimizes the volume of fill used. The paper presents our recent shaft filling experience including fly ash material properties, mix designs, field problems, placement success, and gas testing techniques.

Jan 1, 1996

By S. T. Hall

The authors have previously described a method of enhancing the magnetic susceptibility of pyrite by a mild alkaline oxidative pressure leach (Hall et al, 1985). This finding was successfully applied to enhance the magnetic desulfurization of an Eastern Canadian coal (Hall and Finch, 1984). This paper reports on enhancement of the magnetic susceptibilities of iron-containing sulfides (arsenopyrite, chalcopyrite and marcasite) upon similar treatment. It also explores the application of this pretreatment in the magnetic separation of fine sulfides from oxides and other sulfide minerals. In the latter case galvanic interference effects have a serious impact on the potential use of this method.

Jan 1, 1985

By T. Gupta, T. Ghosh

"In recent years, the demand for Rare Earth Elements (REE) have grown rapidly due to increasing demand and global supply shortage. The supply deficit of these critical elements has encouraged the search for new sources of REEs, possibly Coal and Coal byproducts. Coals from certain parts of the world can be rich in REEs, and can approach a total concentration of 1000 ppm. Two Alaskan coal samples were investigated for the effect of size and density on the concentration of REEs on three selected size fractions. Flotation tests were conducted for finer fractions. Additionally Bottom ash and Fly Ash samples from a power plant have been examined for REE concentration. The results show that the upgrade potential for REEs on ash basis from whole coal basis ranges from 2:1 to 4:1 for Wishbone Hill and Healy coal samples respectively. Flotation of the finer fraction for both coal samples, conducted under similar conditions, reveal higher concentration of REE’s in the tailings. Both coal samples have a comparatively higher LREE content than HREE. Trends of REE content of the power plant products on ash basis revealed that Fly Ash has a slightly higher concentration of both LREE and HREE than Bottom Ash. Keywords: Rare Earth Elements, Coal, Coal Ash INTRODUCTION Rare Earth Elements (REEs) and their compounds are vital components in industrial, automotive, petrochemical, defense and medical applications. Dysprosium in combination with other elements is used in laser materials and nuclear control applications. Neodymium is present in magnets that are used in green power generation such as the manufacture of wind turbines and also in hybrid cars. Europium, Terbium and Yttrium are used for devices that have visual displays such as computer screens and laptops [1, 2]. REEs pose fewer environmental problems of disposal and recycling than conventional heavy metal counterparts [1]. Rare-earth metals are key ingredients for radar systems, avionics, modern national defense and satellites [2-8]. In the last 25 years China has been mining, processing and refining Rare Earth elements at affordable prices thus gaining a virtual monopoly in the market. The many fold rise of the prices of REE elements over the last few years and frequent disruptions in supply has forced various nations to invest in indigenous extraction of REEs by increasing production from previously productive sites and to expand the production from new alternate sources including coal and coal byproducts [9]. Coal and Coal beds have been found to be significantly enriched with certain critical metals and can be a potential source for both Light Rare Earth Elements (LREE) and Heavy Rare Earth Elements (HREE) [10]. Moreover, coals with high REE concentrations have been discovered in Pavlovka and Rakovka coal deposits in Russia, Appalachian deposits in USA, Sichuan Basin deposits in China and others across the globe [10-13]. A recent study from China looked at how different trace elements (including numerous REEs) partition in various size fractions of Antaibao coal from China. The finding indicates that the REEs, phosphorous, and thorium all have their high concentrations in the particle sizes 0.5 to 3 mm, and 6 to 25 mm. REEs are also often present in the form of phosphates such as monazite in coal [13, 14]. The objective of the study is to identify the concentration of REEs in Alaskan coals and to investigate the effect of density and size in the distribution of REEs in coal and coal byproducts."

Jan 1, 2016

Refractory gold concentrates often contain submicroscopic gold that is encapsulated within the crystal matrix of iron sulfide minerals, such as pyrite, pyrrhotite and arsenopyrite. To recover the gold, the host mineral must generally be broken down chemically by oxidative processes, such as roasting, pressure oxidation or bacterial leaching, which expose the gold for subsequent recovery by leaching in cyanide solution. The focus of attention in these pretreatment processes is usually the oxidation of the sulfides to elemental sulfur, sulfur dioxide gas or sulfate ions. Less attention is paid to the deportment of iron and the changes in its oxidation state, although this can have a profound effect on gold and silver liberation, as well as downstream operating costs. Iron sulfide minerals break down completely during pressure oxidation, and dissolve in the sulfuric acid solution that is gener-ated from oxidation of the sulfides. This dissolution liberates the tiny gold particles that were originally trapped in the sulfide crystals, and gold recovery during subsequent cyanidation is usually very high (>95%). Iron goes into solution in the oxidation process, initially as ferrous sulfate, but this compound is rapidly oxidized to ferric sulfate, which then hydrolyzes and reprecipitates. The form of the precipitate varies depending on the operating conditions in the autoclave and the presence of certain metal cations. When the acidity in the autoclave is quite low (<20 g/L H2SO4) and the temperature is high (>200°C), the formation of hematite is favored. When the acidity is high (>20 g/L H2SO4) and the temperature is relatively low (160 to 200°C), the formation of basic iron sulfate is favored. If the ore or the leach solution contains significant levels of certain cations (such as Na+, K+, NH4+, Ag+ or Pb2+) and the acidity is high (>20 g/L H2SO4), jarosite compounds are favored. Hematite is the desired iron product in the autoclave discharge, for both metallurgical and environmental reasons, but it is difficult to operate an autoclave under the conditions required for effective liberation of gold without converting some of the iron to basic iron sulfate and/or jarosite. These compounds fall into a category of iron compounds known generically as iron hydroxy sulfates, all of which can cause significant processing and environmental problems in the downstream gold process. This paper deals specifically with basic iron sulfate: the conditions under which it is formed in an autoclave, the problems that are caused by its presence in the feed to a cyanidation plant and possible remedial strategies that can be adopted, both in the autoclave and downstream.

Jan 1, 2010

By R. M. Quinlan

The coal industry in the United States has undergone significant economic changes during the past six years. The price of coal remained relatively constant from 1950 to 1969 (See Figures 1 and 2). Steam coal prices tripled and metallurgical coal prices doubled from 1969 to 1974. This price structure has created a new economic environment for coal preparation. Contributing factors to these price trends include: ? Coal Mine Health and Safety Act of 1969 ? Mid-East oil embargo of 1973 ? United Mine Workers of America contract agreements ? Productivity decrease (tons per man-day basis) ? Environmental Protection Agency regulations The increased value of coal justifies additional capital investment in cleaning facilities to optimize yield. Current trends include recovery of existing slurry ponds and recleaning of refuse. Coal preparation plant product yield and quality must be evaluated in terms of the amount of capital expended and cost of operation. Therefore, it is advantageous to optimize the plant product based on clean coal selling price and rate of return on investment.

Jan 1, 1976

By D. G. Kotlyar

Oxidized sulfide minerals, commonly formed by weathering, increasingly are becoming important resources as primary sulfide deposits are depleted. Oxidation, in general, reduces selectivity and recovery in flotation. The objective of this research was to determine the mechanisms of oxidation and collector adsorption in sulfide systems as a step towards developing improved technologies for beneficiation of oxidized sulfides. Data from microcell flotation tests are combined with electrochemical and spectrophotometric measurements. The adsorption of ethyl xanthate (EX) on oxidized sulfides was characterized using AC impedance techniques and correlated to flotation response. The floatability of chalcocite, chalcopyrite and pyrite was dependent on the extent of oxidation. Oxidation for 1?) d at 65? C inhibited flotation of chalcocite, and chalcopyrite even after the addition of a large amount (1 x 10&apos;) M) of collector. Heavily oxidized (27 d) chalcocite remained unfloatable. However, longer oxidation of pyrite and chalcopyrite restored the floatability. Oxidation resulted in an electrically resistive, nonporous surface layer.

Jan 1, 1993

By H. Akgun

Design of plugs for abandonment of boreholes and shafts may be governed by the bond strength between the plug and host rock. This paper presents the results of push-out tests on cement grout plugs in salt. Two expandable cement grouts have been tested. The average interface shear strengths ranged from 2 to 12 MPa. Peak shear stresses at failure, assuming an elastic stress distribution along the interface, were up to eight times higher. Standard deviations commonly reached 20%. Dissolution along the interface was observed, and may have been enhanced by clay inclusions in the salt. This dissolution appears to have reduced bond strengths. Application of the results to the design of plugs for larger openings (e.g. shafts, drifts, or boreholes) is discussed.

Jan 1, 1991

By Gregory Rumbaugh, Christopher Mark

Recent pillar collapses have caused five large airblasts in underground U.S. limestone mines. One of these events injured three miners, but all of them put many other miners at risk. To better understand the hazards, Mine Safety and Health Administration (MSHA) conducted a comprehensive review of the international literature on airblasts. More than 40 airblast cases have been documented, in a wide variety of minerals. Experience shows that miners that are in the direct path of the air as it moves towards the mine exits are at the greatest risk. The paper describes a risk management methodology that can be used to evaluate the level of hazard throughout the mine and aid in the selection of controls to reduce the risk. The paper concludes with a detailed case history of an actual pillar collapse and airblast.

By D. A. Norrgran, J. A. Wernham

Introduction In view of the continuing depletion of natural resources, requirements for energy conservation, plant optimization and hazardous waste management, and environmental consciousness, recycling and secondary recovery of materials are being developed with increasing interest Many secondary recovery processes are being developed that apply mineral processing technology. Gravity separation, magnetic separation and flotation have all emerged as explicit methods for recovering residual values from various process streams and hazardous constituents from waste streams. Recently, a technique for concentrating metallics has been successfully reintroduced. The concept of the alternating magnetic field eddy-current separator was developed over a century ago using rudimentary electromagnets (Patent 400317 issued to Thomas Edison on March 26, 1889). Widespread acceptance was, however, hindered by high costs, marginal results and poor economic incentives for secondary recovery. With the recent increased interest in secondary recovery and the development of high-energy rare earth permanent magnets, the eddy-current separator has now gained prominent acceptance. The separation forces imparted by an eddy current separator are the function of the magnetic field intensity and the alternating frequency of the magnetic field. The evolution of permanent magnets has provided a cost effective alternative for the generation of high-intensity magnetic fields. High-energy rare earth permanent magnets have substantially reduced the capital and operating costs over the electromagnetic circuits employed in antecedent eddy-current separators. Specifically, in recent years, the strength of permanent magnets has increased several fold with neodymium-boron-iron rare earth magnets now providing an energy product of 35 million gauss-oersted. Figure 1 shows the evolution in the strength of permanent magnets. The development of these rare earth magnets has led to the design of circuits possessing a magnetic force an order of magnitude greater than that of conventional permanent magnetic circuits. The eddy-current separator has been successfully applied in several metal sorting and recovery operations. Most common is the sorting of metal from shredded automobile scrap and municipal waste. With the advent of high-frequency, high-intensity magnetic fields, the separator has advanced to the point where it has direct application in the beneficiation of fine sized metals. Relatively fine sized (-1/4 in.) metal bearing slags and spent foundry casting sands as well as precious metal hearing electronic scrap demonstrate excellent metallurgical response to the eddy-current separator, and applications have progressed to finer materials and more selective separations. Theory Electrical currents are induced in all conductors when exposed to an alternating magnetic field. The induced current generates a magnetic field in the conductor that opposes that of the alternating magnetic field. Figure 2, is a schematic illustration of generated eddy currents. In this particular example, the alternating magnetic field is produced by a series of permanent magnets mounted on the circumference of a rotor. The permanent magnets have alternating polarity. As the rotor revolves, an alternating magnetic field is produced, and the rate of revolution determines the frequency of the alternating magnetic field. When a conductor, such as a metallic disc in the illustration, is placed in the alternating magnetic field, a closed loop current flow occurs. The current loop in the conductor produces a magnetic field that is a mirror image of the alternating magnetic field. At any point in time, the induced magnetic field in the conductor directly opposes the alternating magnetic field. This opposition of magnetic fields produces an instantaneous repulsion in the conductor. The conductor is consequently repelled from the rotor. The alternating magnetic field has no effect on nonmetallic materials as they pass through the magnetic field and discharge the rotor in a natural trajectory. [ ]

Jan 1, 1992

By J. G. Groppo

Eastern U.S. oil shale contains approximately 10 to 12 gallons of oil per ton and 7 to 10 percent pyritic sulfur. Physical beneficiation of these low grade shales using froth flotation provides a high grade material which will make extraction of oil more economically attractive. The Alabama oil shale used in the present study contained 16.46 percent organic carbon and 14.5 gallons of oil per ton as determined by Fischer assay. Liberation size of the kerogen was estimated at 10 /-Lm. &apos;Ken-Flote&apos; column flotation technology provided a high grade concentrate containing as much as 60 percent organic carbon, however, carbon recovery was about 60 percent. Carbon recovery was improved to 75-85 percent while maintaining concentrate grades in excess of 40 percent carbon by providing longer retention time in the column which facilitated effective bubble-particle collision and attachment.

Jan 1, 1993

By J. B. Offei, K. Awuah-Offei

Mining companies registered with the SEC were required to comply with Regulation S-K 1300 for their annual report covering the first fiscal year ending on or after January 1, 2021. Consequently, most mining registrants filed their first S-K 1300 compliant disclosures in 2022. The US Securities & Exchange Commission (SEC), as part of its disclosure review program, has been issuing comment letters in response to these filings. This paper presents an overview of the trends in these comment letters. The authors reviewed comment letters retrieved from the SEC’s EDGAR database based on Standard Industrial Classification (SIC) Codes that cover mining, the content of the comment letter (whether it references S-K 1300 or not), the names of SEC staff listed in the comment letters, and other criteria. The analysis shows the SEC staff's reviews have been comprehensive covering the breadth of S-K 1300 and eliciting compliance with the rule. The staff through their comments are eliciting all the disclosures required by S-K 1300 and are not allowing registrants to substitute disclosures based on other standards for S-K 1300 disclosures. It is important, however, not to over generalize as the comments are based on the particular context.

Feb 1, 2023

By P. O. Ripley

Into this tumultuous twentieth century, every second, two new babies are born. This is 5,412 per hour, and 130,000 per day. Relentlessly, consistently, alarmingly, they add to the more than three billion human beings who already inhabit the earth. Every tick of tier clock brings with it a problem child, the problem of another mouth to feed, another body to clothe, another human being for whom to provide. On the other hand, medical science has achieved a postponement of death, considerably past the period of a few years ago. Thus, life expectancy has been increased and world population has increased accordingly. Darwin (4) writing in 1962, suggests "It is curious how long the world is taking to perceive that we are living in what is a fantastically abnormal period of history, and one which must inevitably end soon, The first warning note of a possible population explosion was given by Malthus in 1799". He suggested that population increases geometrical while production increases only arithmetically and that soon we would not be able to feed the rapidly increasing population.

Jan 1, 1966

By Irina Melekestseva, Beltenev. Victor, Victor Ivanov

"One of the major problems discussed over the last years is a possibility of mining of seafloor massive sulfide deposits. In spite of the pessimistic points of view on their commercial development, they are still of great interest and continue to be studied (Hannington et al., 2011). Recently, Barriga (2012) paid special attention to the underestimated amount of massive sulfide hydrothermal fields and pointed to the importance of the buried fields and subseafloor mineralization.This study examines the geochemistry of seafloor and subseafloor precipitates collected at the Peterburgskoe (19°52´ N) and Irinovskoe (13°20´ N) hydrothermal fields (MAR) during the 34th cruise of the R/V Professor Logatchev in 2011. These fields were discovered by the Polar Marine Geosurvey Expedition in 2010 and 2011, respectively (Shilov et al., 2011; Beltenev et al., 2012). The Peterburgskoe field, associated with basalts, is located 16 km west of the main rift valley at the depth of 2800-3100 m at the junction of a large non-transform discontinuity with the second rift ridge parallel to the rift valley. The Irinovskoe field occurs at depths of 2700-2850 m and has a northwestern satellite sulfide site, both confined to an oceanic core complex (MacLeod et al., 2009), which includes mafic and ultramafic rocks. The details of geological structure of the fields may be found in the relevant papers.Diverse samples were collected from the hydrothermal fields: seafloor massive sulfides, Fe-hydroxide crusts, SiO2-rich sulfide-bearing precipitates, and subseafloor mineralized rocks (Melekestseva et al., 2014a). Massive sulfides may be subdivided on the Fe-rich and Cu-rich types. The marcasite-pyrite, pyrite, hydroxide-marcasite, and chalcopyrite-pyrite (Fe-rich) mineral types are dominant in the Peterburgskoe field at lesser amounts of sphalerite-hydroxide-chalcopyrite and pyrite-covellite-chalcopyrite (Cu-rich) massive sulfides. The mineralized sulfide-talc-carbonate-chlorite, chlorite-sulfide-quartz, and hematite-sulfide-quartz rocks host stringer-disseminated sulfides including chalcopyrite, covellite, and pyrite."

Sep 1, 2014

By Q. Xiao, R. Naidu, W. Li, S. Song

Acid mine drainage (AMD) derives from the oxidation of sulfide minerals, primarily pyrite (FeS2), and is the most severe environmental issue facing the minerals industry. The most common short-term approach to AMD treatment is migration control, such as acid neutralization and metal/metalloid and sulfate removal, through the addition of alkaline materials, including lime (Ca (OH)2), limestone (Ca CO3), gangue minerals and industrial wastes. This requires the continuous input of materials and may result in the production of a vast amount of secondary sludge requiring further treatment and disposal. Addition of chemicals is usually more important in metal/metalloid removal than in sulfate removal unless the sulfate is present in very high concentrations. A more promising long-term strategy for AMD prevention is source control through the complete removal of pyritic minerals and encapsulation of potential risk minerals by coating with impermeable surface layers. This is regarded as the most cost-effective approach, although the mechanisms underpinning this and the implementation procedures are yet to be fully elucidated. It is likely that long- and short-term practices can be combined to optimize the remediation of contaminated mining sites. Some factors such as differing geological and mineralogical characteristics and transportation costs must also be considered for the successful implementation of AMD prevention and remediation strategies. This review also considers some implications for AMD remediation, but the promising bioremediation of AMD is not discussed as it has been extensively reviewed.

By C. A. Rowland

With the rapidly rising cost for electrical energy and the long range pre¬dictions for continued rising costs and even possible energy shortages, operation of rod, ball, autogenous and partial autogenous grinding circuits to efficiently utilize the power delivered to the mills will be demanded. This calls for a method to evaluate grinding circuit performance that is accurate, reliable and readily usable as an operating tool by supervisory, technical and operating personnel. Neither the Rittinger and Kick theories of comminution,(1) which preceded the Bond Theory by more than 50 years, had a mathematical means that could be used to predict and evaluate the performance of crushers and grinding mills used to comminute ores and rocks. This severly limited the practical use of these two theories, which were contradictory to each other. They have been superseded by the Bond Third Theory of Commnution.(1)

Jan 1, 1976

By SME SME

List of 43rd ICGCM 2024 ORGANIZING COMMITTEE

Jun 25, 2024

By L. Wilfley, G. A. Calboreanu

"Wear resistant 25% Cr hard cast iron is a heterogeneous material containing 1,600 HV hard chromium carbides embedded into martensitic matrix. It is the most used cast alloy in wear operations of mining industry, chemical industry, fracking, etc. During the last decade the hard iron manufacturers increased wear resistance in the following ways: • Reduce / eliminate harmful retained austenite and chromium + carbon depleted areas especially within eutectic carbide cells. In Max5A the improved 25% Cr alloy brittle carbide eutectic cells are removed which increases toughness. • Delay delamination between chromium carbides and matrix particularly during sliding abrasion wear. Delamination commences at the weakest chromium carbide – matrix contact lines exposing chromium carbide to localized bending stresses which gradually chip carbides away. Once the chromium carbide base is removed accelerated wear degradation occurs. • Evenly randomize and avoid discontinuities in the chromium carbide network. When chromium carbides are perpendicularly positioned to the wear surface wear rate is minimized. On the contrary the highest wear rate takes place when 3D oriented chromium carbides are parallel with the wear surface. In this case chromium carbides cover top network discontinuities being just matrix supported which leads to rapid carbide cracking. The new hard iron discussed in this paper fulfils and exceeds the above requirements increasing the casting service life around 250% in various wear operations. Physical and mechanical properties of Max5A are compared with well manufactured Industry Standard 25% Cr hard iron. The paper presents practical accomplishments obtained in the USA, South America and India. INTRODUCTION The chemical composition of Max5A and Industry Standard 25% Cr are identical like specified by ASTM A532 Class III Type A requesting C = 2.0-3.3% and Cr = 23.0-30.0%. Manganese, silicon, nickel, molybdenum and copper contents are limited by maximum accepted quantities.[1] According to published data the eutectic chromium carbides chemical composition of 25% Cr hard iron is Cr = 54% and C = 8% which indicates strong depletion of chromium and carbon along chromium carbide - matrix interfaces. [2] The optimized Max5A microstructure has minimized retained austenite, is devoid of harmful carbide eutectic cells and has the most advantageous chromium carbide and secondary chromium carbide morphology. This favorable microstructure increases wear resistance, mechanical properties and corrosion resistance. The paper compares the Max5A microscopic features and mechanical – physical properties with similar properties of high quality Industry Standard 25% Cr."

Jan 1, 2017

By Swan. J. D.

Repairing and replacing equipment damaged by corrosion and abrasion is a major cost throughout industry, especially in the coal mining industry. Careful study of corrosion and abrasion, and their causes and effects, often leads to the selection of alternative materials which can provide economies. What, actually, are corrosion and abrasion and how do they contribute to the cost of operating a coal-preparation plant? Furthermore, what can be done to alleviate corrosion and abrasion problems and thereby reduce operating costs? These questions will be answered in the following discussion, which will describe the destructive action of corrosion and abrasion and give several methods for controlling corrosion and abrasion losses, These methods include the substitution of stainless steel for carbon steel, the use of corrosion inhibitors, and the use of design to eliminate corrosion and abrasion. Examples will be given illustrating the benefits that have resulted in plant tests when these methods of controlling corrosion and abrasion were used.

Jan 1, 1970

By R. J. Roman

The "mass balance" is unquestionably the most common class of problems for the process engineer&apos;. Closely related, mathematically, is the "heat balance". Every laboratory test requires a mass balance to describe the results. Mass balance calculations can be subdivided into several sub-categories based on whether the results are time dependant or not and depending on whether the input data are measurements that contain errors or are hypothetical values with no errors. Time dependent mass balances are dynamic process simulations and in addition to the conservation of mass constraints require kinetic data input. They are one step beyond simple mass balances.

Jan 1, 1992

By Don S. McCoy, W. Joseoph Schlitt, Donald B. Swanson

Introduction Contract miners have long played an important role in the minerals industry. Historically, these were individuals who worked as underground miners and were paid by the ton or the day. These hardy types still ply their trade in the industry. However, today the term "contract miner" generally refers to an independent contractor who supplies the people and equipment needed to conduct surface mining operations for an owner or lease holder. At one time or another, contract miners have probably handled virtually every mineral commodity from sand, gravel, and stone quarrying to mining uranium and precious metal ores. In today&apos;s market, though, contract mining appears to be concentrated in just a few areas. These include precious metal mines, various types of solid fuel operations, and reclamation of abandoned mines. This article covers market areas, contract mining organizations and services, and their advantages and disadvantages. Gold and silver mines Although exact figures are not available, contract mining represents a significant element in the precious metals segment of US mining. For gold and silver, the growth in contract mining appears to be paralleling the overall growth in mining activity itself. Nevada is the largest gold producer in the US. The latest available data (1985) on open pit gold/ silver mines is summarized in Table 1 (Nevada Division of Mine Inspection, 1986). These figures show that contractors mined nearly half of the ore in 1985. Total tonnage mined, of course, was much higher for both owners and contractors. Assuming an average stripping ratio of 2.5 to 1, the total daily mining rate for the contractors was more than 145 kt (160,000 st). This translates into a contract mining rate of about 36 Mt/a (40 million stpy) based on 250 operating days a year. This approximate 50-50 split between owner and contractor also appears to hold for the future. Metals Economics Group (1987) published a survey of 51 short-range and 54 long-range precious metal projects being considered throughout the US. Contacts with owners, requests for proposals, and past corporate philosophies all suggest that about 55% of the open pit operations scheduled for the near-term will be contract mined. This represents an estimated 26 kt/d (28.5 stpd) of ore. A similar assessment of the long-term projects indicates that about 12 kt/d (13,000 stpd), or just under 50% of the open pit tonnage will be contract mined. There are several reasons why gold and silver represent such an attractive opportunity for contract miners. One is that many properties are owned or leased by individuals or partnerships that are essentially entrepreneurial. Many of these owners or lease holders have minimal mining experience. They must therefore either rely on contract mining organizations, sell an interest in the project to another mining company that will become the operator, or hire an experienced management team. For about the same reason, junior mining companies also represent good prospects for contracting. This is because most junior companies focus on exploration. They would prefer to spend their generally limited funds on drilling programs. Thus, they tend to minimize additional capital requirements by using contract miners or farming out the property to another mining company. Another good reason for using contract miners is the size of the deposit. Many properties are so small that their reserves will not support the capital expenditures

Jan 12, 1987