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By Karl J. C. Harries

"11.1. INTRODUCTIONA royalty is the most common form of interest retained by an owner who is disposing of his property or by a joint venturer who ceases, voluntarily or otherwise, to participate in the joint venture.1 Rarely does a non-participating party have a direct interest in the property and/or assets of a project, except during the period when a non-participating joint venturer may be having his interest diluted.2 In fact, it is most unwise to permit a non-participating party to have such an interest. It may give rise to significant problems that could prevent or substantially delay the development of an orebody and require a considerable amount of time, effort, and money to correct.3In negotiating a royalty, it is important to be aware that there is no law or convention that says, “You just don’t do that in a royalty agreement.” As with any agreement, inventiveness and flexibility on the part of the negotiator are not just assets, but virtual necessities. It is also for this reason that it is essential to read the royalty provisions, particularly the definitions, fully and carefully, especially if you are the recipient. On the other hand, if your inventiveness and flexibility cause your accountant to question the advisability of one of your ideas, pay close attention to him.4 He will, no doubt, have had experience with many royalties, and no competent professional adviser disparages a client’s ideas without good reason. Besides, he will probably be the person who will be determining the royalty or certifying the determination of it. At the very least, he will be auditing your general financial statements, which must, of course, reflect the royalty determination. Heeding his advice not only may make the determination easier but also will probably save you money in professional fees later on. Nevertheless, do not simply accept his comments or recommendations without understanding what they mean, why they have been made with respect to your royalty agreement (sometimes professionals have comments that they make as a matter of course and, even though they may be valid, you should require them to be justified to you), and how they will affect your royalty determination.It is surprising how many corporate payors insist that their standard royalty provisions5 be used as a matter of policy, thereby effectively tying the negotiator’s hands. It is even more surprising, and to professional advisers frightening, how many of the senior employees who insist that such a policy be adhered to, virtually without variation, do not know what is in the standard provisions and would be hard-pressed to explain them to a property owner. If standard provisions are appropriate, by all means use them, but do allow experienced and sensible negotiators some flexibility and make sure that everyone within the corporation who may have to use such provisions – negotiator and supervisor alike – knows what they contain and why they are as they are. For example, there are often good and convincing reasons to describe a deduction in a certain way or to include a certain specific type of deduction. On the other hand, quite often the answer to the question “why?” is that “it has always been there”; this is, or should be, an unacceptable answer. In any event, if you, as the negotiator, appear to know what you are talking about, are familiar and comfortable with your royalty provisions, and are backed up by your boss with the same words or reasoning, a property owner cannot help but be satisfied that you are knowledgeable, even if he still does not agree with your provisions. Finally, if you do use standard provisions, make sure that they are reviewed and updated regularly."

Jan 1, 2003

By Francis W. Gray

Introduction Extensive undersea coal-mining has developed on both the east and west coasts of Canada, and at this time some four million tons, or 25 per cent of the total output of Canadian coal, representing a pit-mouth value of $14,000,000 per annum, is coming from coal seams lying under the sea. Of the coal now being mined in Nova Scotia, 55 per cent comes from under the sea, and this proportion is likely to increase. The Province of Nova Scotia is at this date receiving in royalties paid upon coal ?removed from undersea areas a sum exceeding $400,000 per annum. The subject is, therefore, one of special interest to the Mining Society of Nova Scotia and the Canadian Institute of Mining & Metallurgy, and while this paper will deal chiefly with undersea coal-mining in Nova Scotia, an attempt has been made to summarize the development of mining practice in the winning of undersea coal in other parts of the world, with the hope that such a recital may assist in the assessment of local problems. The connection between the mining of coal under the sea and an insular or maritime geography is obvious in regard to Great Britain, Japan, Vancouver Island, Australia, and Cape Breton Island, and also in regard to the curious conformation of Chile; the tendency towards growth of a mercantile marine and naval eminence is equally obvious where coal is mined at tidewater. But, there is the further and less favourable significance that the mining of coal under the sea is associated with poverty rather than with abundance of coal reserves.

Jan 1, 1927

By E. H. Smith

"The El Indio mine treats a complex mixture of copper and gold/silver ores at its plant located in the high Andes in Chile. The plant utilizes conventional crushing, grinding and flotation to produce a copper/gold/silver concentrate. Due to high levels of arsenic and antimony, the flotation concentrate must be roasted prior to custom smelting. The flotation tailings is leached and additional gold recovered from a CIP circuit. Present and future metallurgical developments are discussed in this paper. INTRODUCTIONIn late 1989, LAC Minerals purchased 65 % of Bond International Gold and as a result became controlling shareholder of the El Indio Mine through Bond and San Jose.El Indio is a world class, complex sulphide gold deposit located in the hydrothermal alteration belt of the Andes mountains in the 4th Region of Chile. The mine is located in the high Andes about 185 km east of La Serena at an elevation of 4000 meters. The 1450 workers at El Indio live in the mine camp at 3200 m and on days off are bussed to La Serena.The El Indio mine was started in 1979 by St. Joe Minerals Corp., bought by Bond in 1987 and subsequently by LAC in 1989. The mine has produced 2.7 million oz. of gold, 9.5 million oz. of silver and 170,000 t of copper since start of operation. The mill is currently operating at a rate of 2850 t/d and producing a copper/gold concentrate which is roasted to produce a copper/gold calcine and high quality, saleable crude AS2O3 . A small proportion of the precious metals are also produced as bullion from the leach circuit.Total production during 1989 was 224,197 ounces of gold, 1,309,342 ounces of silver and 26,968 tonnes of copper. The average cash cost of production for the period was U.S. $96 per ounce of gold, net of by-product credits. The average realized price was $5. 30 per ounce of silver and $1.14 per pound of copper."

Jan 1, 1991

By R. P. D. Graham

It is almost exactly two hundred years since the foundations of the mining and metallurgical industries in Canada were laid. There '."'as nothing spectacular about this early start. It had to do with the most basic phases of these industries-the mining of coal and iron ore, and the manufacture of cast and wrought iron. At several points along the coast of Cape Breton island, coal seams may be seen outcropping quite conspicuously, and it is probable that they had been observed, and possibly worked in a small way, in very early times. However that may be, these coal seams have the distinction of being the first in North America of which there is any printed record, reference to them appearing in a volume by Nicolas Denys which was published in Paris in 1672. Regular coal mining in the district did not commence until about fifty years later, however. The metallurgists started their operations along the north shore of the St. Lawrence river. Here, at many points between Montreal and Quebec, are to be found deposits of bog iron ore, and in 1 730 a furnace for smelting such ore was established on the St. Maurice river. The St. Maurice forges continued in operation until 1880, and throughout that long period they were famed for the fine quality of castings produced, and also for a-superior wrought iron.

Jan 1, 1924

By B. Wasmund, M. Y. Solar, I. Candy

The nickel laterite industry is divided into two camps when it comes to the grade of the ferronickels produced. One group, led by Falcondo and Cerro Matoso, markets high-grade ferronickels in the range of 35 to 40% nickel, while another group, led by SLN and the Japanese smelters, favour lower grades in the range of 20 to 25%. Because the ores processed by these smelters vary widely in terms of nickel content and iron to nickel ratios, it is probably more accurate to classify these smelters in terms of their iron recovery: Falcondo and Cerro Matoso smelt at lower reduction potentials and thus recover only 15 to 30% of the iron in their ores, while SLN and the Japanese smelters are very reducing and recover 45 to 65% of their iron. Low reductions generally imply higher slag losses and lower nickel recoveries, but also lower power and reductant requirements; higher reductions, the reverse. The question is, therefore, whether an economically optimum ferronickel grade exists for processing any given ore. This paper proposes a methodology for determining this optimum grade and concludes that nickel laterite smelters should favour low reductions and production of high-grade ferronickels.

Jan 1, 2008

By André Laplante, Robert C. Dunne

"The role of flash flotation in precious metal recovery is reviewed. Interacting flash flotation and gravity recovery is discussed. The GRG test can be used, when linked to the behaviour of gold in grinding and classification units, to predict the recovery of GRG by flash flotation. The Cadia mill in New South Wales is used as a case study of circuit design, performance and simulation. It is shown that high throughput coarse grind applications such as Cadia require very effective fine GRG recovery systems in the primary grinding loop, which are more consistent with flash flotation than batch centrifuge concentrators (BCCs). BCCs can effectively recover a significant fraction of the GRG from flash concentrates, as predicted by laboratory testing and confirmed at a growing number of mill sites.INTRODUCTIONThe GRG test was designed to characterize Gravity Recoverable Gold (GRG) ten years ago (Woodcock and Laplante, 1993; Laplante et al, 2000), in response to the need to predict how much gold could be recovered from the main circulating load of grinding circuits using centrifuge concentration. The amount of GRG is not itself a prediction of gravity recovery: the performance of a gravity circuit nested in a circulating load also depends on the type and size of unit used, how much of the circulating load is treated, and how many times GRG is recycled and presented to the recovery circuit. The GRG test was first used in a simulator to predict gravity recovery (Laplante et al, 1995), and indeed most of the early tests targeted ores or prospective ores for which gravity recovery was an obvious match. As the test became more accepted, more and more samples returned a verdict that precluded the use of gravity recovery, or made it marginal. Typically, such ores are either copper-gold or base metal ores in which the GRG content is often fine (largely below 105 um) and ranges from 8 to 33%. Extensive simulation and plant sampling tests, either published (Laplante et al, 1997) or proprietary, show that full scale gravity recovery for these applications is generally below lo%, and can be as low as 2%. Not in all cases are such low recoveries economically unjustifiable, since there is documented evidence (Darnton et al, 1992) that a significant proportion of the gold recovered, at least in the case of base metal ores, would not have reported to the copper or zinc concentrate and received NSR credits."

Jan 1, 2002

By K. B. Hodgins, P. Ouellette

"The North American mining industry faces challenging emissions regulations in the coming years with the introduction of new standards for off-road diesel engines. In order to remain competitive, industry stakeholders must invest in new technologies that are economically and environmentally sustainable.Westport Innovations Inc., Vancouver,British Columbia, has developed high-pressure direct injection (HPDI) technology that allows diesel engines to run primarily on natural gas with no intrusive engine modifications while reducing emissions of nitrous oxides (NOx), particulate matter (PM), and CO2 with no loss in performance. This is accomplished through late-cycle, high-pressure direct injection of natural gas into a diesel engine combustion chamber at the end of the compression stroke. A small amount of diesel fuel is injected first to initiate combustion, followed by the natural gas fuel main injection. The diesel cycle and its operating characteristics are fully retained including high combustion efficiency, lowspeed torque, high-power output, no engine knock, and fast response to load changes. Natural gas has not been an attractive fuel alternative in mining operations due to the reduced performance associated with spark ignition engines and the added weight and space required for compressed natural gas tanks. However, liquefied natural gas (LNG) can be stored with less impact on weight and space than compressed natural gas (CNG) by virtue of its increased energy density over CNG.Westport has applied HPDI technology to the Cummins QSK series engines for high horsepower applications such as power generation and mine haul trucking. HPDI can also be applied to other engine manufacturer platforms and market applications. Westport is interested in demonstrating the unique characteristics of HPDI in mine haul trucks to show diesel performance with low emissions levels using low-cost LNG fuel.Retrofitting a Tier 1 engine with HPDI would provide emissions reductions below the EPA 2006 Tier 2 standards while maintaining the performance and efficiency of the Tier 1 platform. The longer-term target is the Blue Sky voluntary standards of 3.8 g/kW-hr (2.8 g/bhphr) of NOx + non-methane hydrocarbons (NMHC), and 0.12 g/kW-hr (0.09 g/bhp-hr) of particulate matter (PM) and future standards. Typically, an HPDI engine is capable of reducing NOx emissions by 40% over diesel operation at the same efficiency. On a mining truck meeting Tier 2 standards, this NOx reduction would translate into NOx emissions approximately 14 t per year lower than under diesel operation. PM emissions are typically reduced by some 60% with HPDI fueling, which would translate into a yearly reduction of 650 kg. Similarly, engine-out greenhouse gas (GHG) emissions are reduced by 21%, resulting in a yearly reduction of approximately 950 t per vehicle.Above those of emissions reduction, efficient natural gas usage in mine haul operations would offer significant benefits in terms of fuel cost savings, which may be further combined with monetary emission credits. HPDI technology would enable operators to exercise environmental stewardship while gaining a competitive advantage in advance of new Tier 2 and Tier 3 emissions regulations. The advantages of natural gas use among mine haul truck operations can be replicated across a broad range of engines and applications."

Jan 1, 2005

By Don Thompson

It isn?t a lie if you don?t tell the whole truth The pictures National Geographic didn?t print Other photos National Geographic didn?t print?

May 1, 2009