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By P. Klaus

"KfW IPEX-Bank is the commercial arm of KfW Bankengruppe, responsible for international project and export finance.KfW was one of the first banks in Germany to promulgate environmental guidelines for its commercial business activities. These guidelines were first made public in 2000 and updated for the second time in 2004. They now include specific reference not only to environmental but also to social concerns. The guidelines specify the procedures to be followed in assessing credit risks related to environmental or social hazards.The bank considers sustainability as an interdependent framework of economic, ecological and social factors. In its efforts to contribute to sustainable development worldwide the bank uses its influence as far as possible to improve a project’s performance if such improvement is deemed necessary."

Jan 1, 2005

By Raymond F. Mikesell

This paper evaluates the contributions of "third parties" to surplus capacity in the world metals industries in the 1980s. Special attention is given to the role of international development agencies, such as the World Bank, that have made project loans to state mining enterprises. The paper also reviews the contributions to surplus capacity of the International Monetary Fund and evaluates the large volume of credits from commercial banks to developing countries. Although the credits to Third World countries during the 1970s facilitated the expansion of mining capacity in those countries, no one source of financing can be held responsible for a significant portion of the expansion.

Jan 1, 1989

By G. R. Erdman

The industrial mineral filler plant of the Gouverneur Tale Company is equipped with a good dust collection system installed long before the recent popularization of environmental pollution. Credit for this fact is due to the foresight of Mr. R. S. McClellan, Project Manager and subsequent Vice President and General Manager of Gouverneur Talc, who recently retired as Vice President Engineering of the parent organization, the R. T. Vanderbilt Company. Also instrumental in the early stages of plant operation and the solution of start-up problems was J. A. Gustin who is now an engineering consultant located in Martinsville, Va. Credit is most certainly due to the late R. T. Vanderbilt, the company's founder, who favored and approved the investment in the necessary facilities that were far ahead of all competitors in the industry at that time.

Jan 1, 1972

By Robert T. DeGavre

I have been asked by the Society of Mining Engineers to present a paper on Inco Limited's Indonesian nickel project as a case study in the financing of large overseas mining projects. I welcome this opportunity It is a story worth telling not only because the project itself represents a significant human achievement but also because there are certain important lessons that can be derived from our experience in financing the project. The paper will be divided into four sections: (i) a brief history of the project, (ii) a critical appraisal of the project's financing plan in terms of the goals that we sought to achieve, (iii) some comments on certain factors underlying the relative success of the financing plan, and (iv) the contributions that the engineering staffs must make to a successful financing plan. The paper will not present a technical assessment of the project since Inco Limited has been asked to submit a series of papers on this subject at the International Laterite Symposium as part of the 108th Annual Meeting of the AIME in February 1979.

Jan 1, 1978

By Nate Ober, Heath Rushing

"Mining companies want to be in a position to move quickly and seize a favorable market or to keep their key staff productively busy. One of the problems for these companies is the time required to compensate for unavoidable impacts that the mine will have on the natural environment and to gain environmental permits. All too often, circumstances that were favorable when the project was proposed have become less favorable by the time all the hurdles have been cleared.Accordingly, many mining companies are interested in ways they can inject more predictability into their timelines for gaining environmental permits, shorten those timelines, and be more certain of getting the permits they need to carry out their next project.One increasingly popular way to do this is through a relatively new kind of service — the mitigation bank.Mitigation banks purchase property or easements through property that has been impacted by agricultural, industrial or resource activity. They then turn it around from an environmental point of view. This might include restoring streams and wetlands so that fish and aquatic organisms can survive, and animals have habitat and food to flourish.Appropriate native species of plants including trees and shrubs are planted, and steps may be taken to introduce wildlife to the new habitat. In some cases, a special focus is placed on creating habitat for rare and endangered species of plants or animals.The property is inspected by regulatory authorities, coordinated through an interagency review team (IRT). If the property is determined to be effective as natural habitat, the mitigation bank is then issued credits that it can then sell to development projects that are creating an unavoidable permitted environmental impact elsewhere. A mining company, for example, would buy credits to offset the aquatic impacts due to construction of a mine, access roads and other infrastructure — as required by the Section 404 Clean Water Act permit that governs those unavoidable aquatic impacts. The mitigation bank used for offset must have an IRT-approved service area that includes the location of the impacts."

Jan 11, 2017

By D. Symonds, A. J. Richins, M. G. Nelson

Mining activities at Kennecott and Park City are similar in that both districts began operation in the last half of the 18th century, and both operated on a large scale for many years. However, they are different for two important reasons. First, the mines in the Park City district were always underground. The city of Park City was above many of those mine workings. It remained in place after mining activity stopped, and as the town became an up-scale ski resort, property values increased and the tailings dumps became desirable building sites. In contrast, Kennecott eventually became an open pit mine, and the growing pit effectively consumed many of the small towns that had grown up around the underground workings. Even towns on the periphery of the open pit were razed to allow for the disposal of mine overburden. Second, almost all mining activity stopped in Park City in the early 1970s, just as the first rigorous environmental legislation in the United States was enacted. (The Ontario mine operated sporadically until 1982.) Many mine structures, waste dumps, tailings ponds and piles, and tunnels were simply abandoned as the mining companies ceased business or were bought out. Kennecott, on the other hand, has been in continuous operation for more than 120 years, so a closure plan hasn’t been finalized. Nonetheless, environmental and social problems have arisen, and the company has had to address them.

Mar 2, 2022

By Kelly Sands

"Mitigation may be considered a hurdle when it comes to environmental permitting. For complex projects with site specific mitigation plans, the time to devise those plans and get them approved can be a long and costly endeavor. However, mitigation options are expanding and the mitigation banking industry has grown tremendously over the last two decades, helping projects move forward with less debate. Mining companies are recognizing the value that mitigation banks provide in helping to shore up project timelines and costs. Where possible, companies are taking advantage of the opportunities to buy credits from thirdparty providers offering mitigation bank credits. In some instances, mining companies are taking matters into their own hands by establishing mitigation banks to realize their own mitigation freedom. That can have its advantages and disadvantages, as discussed below. All in all, the expansion of mitigation options has streamlined the permitting process, introduced flexibility, improved project permitting timelines and loosened the permitting girdle.Compensatory mitigationCompensatory mitigation involves actions taken to offset unavoidable adverse impacts to wetlands, streams and other aquatic resources and authorized by Clean Water Act section 404 permits and other permits. As such, compensatory mitigation is a critical tool in helping the federal government meet the longstanding national goal of ‘‘no net loss’’ of Waters of the U.S., both in acreage and function.Section 314 of the National Defense Authorization Act for Fiscal Year 2004 required the Secretary of the Army, acting through the Chief of Engineers, to issue regulations “establishing performance standards and criteria for the use, consistent with Section 404 of the Clean Water Act, of on-site, offsite, and in-lieu fee mitigation and mitigation banking.” The provision also required that those regulations ‘‘maximize available credits and opportunities for mitigation, provide flexibility for regional variations in wetland conditions, functions and values, and apply equivalent standards and criteria to each type of compensatory mitigation’’ (73 FR 19595). The result was the Final Rule on Compensatory Mitigation for Losses of Aquatic Resources issued in 2008 (33 CFR Parts 325 and 332).”"

Jan 6, 2017

By Barrie A. Wigmore

There are two aspects of financing western coal development -- whether there is going to be enough money to finance the prospective large development of the industry, and the specific techniques of raising money for that development. To take the first question of whether there is going to be enough money around to finance your industry, I think it is quite clear that the restrictions on the development of western coal are going to be non- financial. Environmental impact problems are creating the greatest delay in coal mine development, at the moment; but getting enough personnel, mining equipment, railroad equipment, and failure of the Department of Interior to act on leasing federal coal lands all appear likely to create significant bottle- necks in the development of western coal -- larger bottlenecks than financing. Financing appears straightforward for the industry. There are many projections of the financing required to meet Project Independence goals. The National Academy of Engineers estimated that development of 500 million tons per annum of western coal would be necessary by 1985 to meet the Project Independence goals which might require $20 billion of capital spending. It is generally agreed that 500 million tons a year is not a realistic possibility. Carl Bagge?s estimate of production of 250 million tons a year by 1983 appears a more reasonable projection. Development

Jan 1, 1976

By George H. Willis

In the second half of the nineteenth century, bimetallism progressively replaced by gold standard. After World War I and 1931-33 depression, gold mainly reserved for official international transactions and internal use restricted. Changes since 1971 have shrunk official international use of gold. International payments deficits and surpluses now financed by private and official credit, rarely by gold. Historical review covers evolution of: (1) internal and external private use, (2) internal official use, (3) external official use, (4) role in IMF and (5) use as unit of account.

Jan 1, 1978

By Kumara S. Rachamalla

Long-term stability, appropriate taxation and incentive policies are essential to attract and stimulate investment in the mineral sector. An outline of Ontario's $4.6 billion industry and associated tax incentives is presented. Producers are offered incentives under The Mining Tax Act, federal and provincial income tax acts for exploration and development by reducing Me after tax cost to 13-25¢ for each dollar spent. The Mining Tax Act provides generous processing incentives which have positive effects in enhancing investment and economic advantages of building processing facilities. Non-mining companies and entrepreneurial individuals can receive 25% of eligible exploration expenditures in grants/tax credits under the Ontario Mineral Exploration Program.

Jan 1, 1982

By Christopher Nelsen, Daniel Dobbels, R. Zachary Hollenbeck

Recent major floods have inundated Historic Ellicott City, Maryland, resulting in loss of life and property damage. Howard County, Maryland, has developed the Ellicott City Safe and Sound Plan to mitigate the risk of flash flooding in the Historic District, including a proposed stormwater conveyance tunnel. Challenges to overcome include thick zones of saprolite along the alignment, multiple near-surface structures, and minimal rock cover under an active railroad, while minimizing impacts to the public and historic structures. The project will also pursue recognition through the ISI Envision verification process.

Dec 1, 2022

By H. Sevim

Mining engineering curriculum has been discussed and debated in meetings and conferences, and opinions and recommendations have been published in the literature since the inception of the official degree-granting mining engineering program at the Columbia School of Mines in 1864. The deliberations have usually been heightened during the periods of boom-and-bust cycles experienced by the mining industry since the 1920s. Currently, the global natural resource industry is undergoing another cycle, called ?super cycle,? characterized by elevated prices for metals and other natural resources. The super cycle is occurring as a result of the large deficit between the global supply and demand for natural resources, due, in large part, to economic expansion and development in countries such as China, India and Brazil. Because of this cycle, there is a shortage of mining engineers in the U.S., Canada and Australia.

Jan 1, 2012

By Armando M. Lago

This paper reviews the postwar changes that have occurred in the expenditure and financial behavior of mineral corporations, and in particular the relative importance of factors that affect the industry's supply and demand for funds. This quantitative statistical investigation of factors affecting sources and uses of funds of mineral corporations is achieved through the formulation of a simultaneous equation model of sources and uses of funds. After a description of the study sample in Section I, the postwar cyclical and secular financial behavior of mineral corporations is analyzed in detail in Section II. Section III formulates an econometric model of mineral corporate financial behavior which is then estimated and reviewed in Section IV. Section V discusses policy issues regarding depletion allowances, investment tax credits, and industrial organization of the mineral sector. Finally, the optimum financial structure of mining firms is discussed in Section VI, which analyzes the effect of corporate financial structure on the mining corporations' average Cost of capital.

Jan 1, 1969

By M. J. Farrell

Mining is a significant emitter of greenhouse gases and is the focus of increasing attention from green groups and regulators. Miners need to know their own carbon emissions and how they compare with the rest of the industry. Miners and mining companies need to know where they fit in the emissions curve. Who is in the bottom quartile? This article updates data from minecost.com which detail the specific carbon dioxide emissions for over 200 mines producing 90% or more of western world copper, zinc, lead and nickel in 2009. This data shows the potential impact on mine economics of proposed carbon taxation regimes and emissions trading schemes proposed at COP 15 in Copenhagen during December.

Jan 1, 2010

By J. O. Marsden, C. Green

In 2003, a high-temperature pressure leaching circuit to treat copper sulfide concentrates was commissioned at the copper/molybdenum operation at Bagdad, AZ. In late 2007, a medium-temperature pressure leaching circuit was commissioned at the Morenci mine in Arizona. The Morenci circuit was shut down in mid-2008, following a fire in the autoclave circuit. The onset of the global financial crisis in late 2008 resulted in significant changes to the operating profile in the Southwestern United States with respect to concentrates production, concentrates treatment, acid production and acid consumption. As a result of these changes, the Morenci concentrator was shut down, and the pressure leaching circuit remained offline. In late 2014, the increasing acid requirements in the Southwestern United States prompted a reevaluation of the Morenci concentrate leaching facilities. As a result, the pressure leaching circuit was restarted in high-temperature (200 °C) mode in May 2015 and has operated successfully for three years since recommissioning. This paper describes the current pressure leaching circuit configuration and the factors leading to the successful application of copper sulfide concentrate leaching at this location.

By Ross Goodman, Jean-Luc des Rivières

The Ohio River Tunnel Project encountered multiple unexpected geotechnical challenges which, continuing to develop over time, hampered excavation completion and impacted the cast-in-place final lining technique and work execution sequence for the entire project. The continued degradation of the excavated hard rock tunnel conditions led to a unique, dynamic, geologic setting that forced the project to innovate new and adaptable measures allowing for a conventional cast-in-place liner to be completed in a safe and timely manner and minimize delay.

Jun 13, 2023

By R. B. Massy-Greene

Project engineering and development is a process of optimisation of capital, operating and financial costs, and extraction rates in the light of current and forecast economic conditions for the sale of the product. The aim of the process is to maximize financial returns to the sponsors (project owners) within many often conflicting constraints. Thus, the sponsor's engineering and financial staff have a common goal, with performance measured in financial terms. Consequently, each group must be aware of, and responsive to, the constraints imposed upon the other. For financial staff, the increasing size and complexity, and escalating capital costs of new ventures have required them to seek finance in larger amounts, and by non-traditional methods. In addition, senior management are requiring indications of the availability of finance as a pre-requisite to a decision to commence project development activities.

Jan 1, 1982

By R. R. Bhappu

The metallurgical processing industry is in the midst of a hydrometallurgical revolution with mining companies looking for low cost, energy efficient and environmentally friendly technologies for processing sulfide ores and concentrates. The Intec Copper Process is one of the most advanced of these technologies and has the potential to greatly change the way copper concentrates are treated in the future. Specifically, the Intec process has the ability to be built on a small scale and at mine sites while being much more economic than conventional smelting. Intec Copper has constructed a I tonne of copper per day demonstration plant in Sydney, Australia designed to verify metallurgical and operational performance. This paper will describe the process in more detail and provide preliminary results of the process based on the plant's performance. It will also compare the Intec Copper Process with a few of the competing technologies and evaluate the relative economic merits of Intec.

Jan 1, 1999

By James Douglas

For the past several years, inflation has placed increasing pressure on our economic system. The total effect of inflation is complex when combined with other factors which affect the economics of equipment. A mathematical model is described herein which can be programmed on a computer to determine the effect of inflation on economic life and profits after taxes. The computer output results in graphic plots which clearly show the relation of various percentages of inflation to life and profits. Inflation has become a common topic of conversation in the recent past. What is it and how can it be measured? What effect does increased inflation have on equipment policy? Research now in progress at the Construction Institute at Stanford University is beginning to unravel some of the mystery of inflation. As a start, let us answer the first question by defining the word inflation. The dictionary says that inflation is "an increase in the volume of money and credit relative to available goods resulting in a substantial and continuing rise in the general price level. It appears, in fact, that we are in an inflationary spiral which is "a continuous rise in prices that is sustained by the tendency of wage increases and cost increases to act on each other." 3 Inflation behaves just like compound interest. It takes more dollars of future years to buy an equal amount of a given commodity, be it a material or a service. Let us assume an annual inflation rate of 5 percent. Assume that 1Associate Professor of Civil Engineering, Stanford University, Stanford, California. 2Webster's Seventh New Collegiate Dictionary, Springfield, Mass., G. and C. Merriam Co., 1969. 3Ibid.

Jan 1, 1972

By W. J. McDonough

Rapid growth and acceptance of engineered materials have changed the way we live. We have come to expect improved performance at less cost. At the same time, our awareness of societal and environmental issues created by these materials during and after their lifetime has been heightened. As a result, material lifecycle analysis is receiving considerable attention. Material lifecycle analysis evaluates the cost/effective tradeoffs at each stage of a material's life: feedstock, fabrication, performance, recycle, and disposal. The U.S. Bureau of Mines investigates a material's lifecycle using technical cost models augmented with decision and impact analyses. Results of these studies are useful in gaining a better understanding of current material selections and illustrating the multifaceted issues associated with engineered materials in today's society.

Jan 1, 1992