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By Hyung Jeek Kim, Jongmin Joo, Jonguk Kim, Jai-Woon Moon, Kyeong-Yong Lee

"Co-rich ferromanganese crusts (Fe-Mn crusts) distributed on seamounts in the western Pacific are potential economic resources for cobalt, nickel, platinum, and other rare metals in the future. Evaluation and selection of a mining site can be established based on abundance and grade of Fe-Mn crusts in the site as well as topography that should be smooth enough for mining operations. Therefore, acquisition of shipboard echo-sounding and acoustic backscatter data are prerequisite to the selection of potential mine sites in addition to visual and sampling operations. Acoustic backscatter data can be used to locate crust-covered areas on a regional scale with the understanding of acoustic properties of crust through its correlation with visual and sampling data.During an expedition that took place from January to March 2014, KIOST collected geophysical and geologic data to assess the resource potential for Fe-Mn crusts on three seamounts (guyots) in the Western Pacific. In OSM11, one of the three surveyed seamounts, three camera tows were performed to observe the distribution of Fe-Mn crusts on the summit and slopes of the seamount. Although sediments of various thicknesses generally cover most of summit region of OSM11, several regions with high backscatter signals occur on the periphery of the summit. The occurrence of Fe-Mn crusts, observed during the camera tows, on those high backscattered regions suggests that the backscatter signals of shipboard multi-beam sonar can reflect changes in the geology of the seafloor from sediment layer to Fe-Mn crust deposits. The Fe-Mn crust deposited around the summit region is worthy of notice because of its topographic characteristics, including shallow depth, flat or gentle inclined surface, and smooth relief, which are more suitable for mining operation compared to the flanks of seamount."

Sep 1, 2014

By P. R. Segopolo

"The purpose of the project is to convert current shuttle car utilization on an underground coal mine to best practice by focusing on change-out points and tramming routes, which have a major influence on shuttle car away times. Time studies were an integral part of the project as these enabled the determination of shuttle car away times. An indirect proportional relationship between shuttle car away times and productivity is established. Through the time studies, it is deduced that a third shuttle car will make an insignificant contribution to production when there is only one split open. During this time, maintenance on the third car can be optimized. In order to satisfy the mine’s key performance indicator of keeping shuttle car away times less than 75 seconds, a belt extension must be scheduled after the third split is open. It is established that at any given time, a minimum of two shuttle cars should be used. When cutting on the left-hand-side of the belt road with only two shuttle cars available, the centre and left (left of the feeder breaker) shuttle cars should be used for coal hauling. When cutting on the right-hand-side, the centre and the right-hand-side cars should be used. If only one shuttle car is available, the centre car is the most efficient to use. Alternative anchoring configurations can be employed so as to enable cars (left or right, especially) to reach the opposite extremities of the panel and hence minimize cable length restrictions. Paper written on project work carried out in partial fulfilment of BSc. Eng. (MiningEngineering)"

Jan 1, 2015

By Rambabu Pothina, Rajive Ganguli

The economics of a mineral processing circuit is dependent on the numerous sensors that are critical to optimization and control systems. The sheer volume of sensors results in mines not being able to keep the sensors calibrated. When a sensor goes off calibration, it results in errors which can severely impact plant economics. Normally, these errors are not detected until the error grows and becomes a large (“gross”) error. Undetected errors are not remedied until the next calibration, which on average are a year apart Beamex (2019) [1] across all industries. Classical statistical methods that depend on linear relationships between input and response variables are typically used to find gross errors, but are not effective for highly non-linear and non-stationary operations in mining and mineral processing industries. Calibration of sensors is time-consuming and generally requires physical intervention that results in equipment downtimes causing production losses. Therefore, in situ detection methods are warranted that do not require physical removal of sensors to compare with standard measurements or well-calibrated sensors. Data-mining based techniques and algorithms have high success rate in tackling such problems. This paper presents results from a groundbreaking multi-year big data research project whose goal was to develop data-mining-based original techniques in a multi-sensor environment to identify when sensors start to stray, rather than wait for errors to grow. The carbon stripping (gold) circuit in the Pogo Mine of Alaska was selected for this project. Maintaining strip vessel temperatures at optimum levels is crucial for maximizing gold recoveries at Pogo, and hence the focus was on the temperature sensors of the two strip vessels. An automated algorithm to detect errors in strip vessel temperature sensors was developed that exploited data from multiple sensors in the strip circuit. This algorithm was able to detect with a high success rate when bias errors of magnitude as low as ± 2% were artificially induced into strip vessel temperature data streams. The detection times of about 1 month were much less than the industry average calibration frequency of 1 year. Thus, the algorithm helps detect errors early, without stopping the circuit. The algorithm alarms can serve as triggers when calibrations are done. Experimental methodology along with results, limitations of algorithms, and future research are also presented in this paper.

By Rambabu Pothina, Rajive Ganguli

The economics of a mineral processing circuit is dependent on the numerous sensors that are critical to optimization and control systems. The sheer volume of sensors results in mines not being able to keep the sensors calibrated. When a sensor goes off calibration, it results in errors which can severely impact plant economics. Normally, these errors are not detected until the error grows and becomes a large (“gross”) error. Undetected errors are not remedied until the next calibration, which on average are a year apart Beamex (2019) [1] across all industries. Classical statistical methods that depend on linear relationships between input and response variables are typically used to find gross errors, but are not effective for highly non-linear and non-stationary operations in mining and mineral processing industries. Calibration of sensors is time-consuming and generally requires physical intervention that results in equipment downtimes causing production losses. Therefore, in situ detection methods are warranted that do not require physical removal of sensors to compare with standard measurements or well-calibrated sensors. Data-mining based techniques and algorithms have high success rate in tackling such problems. This paper presents results from a groundbreaking multi-year big data research project whose goal was to develop data-mining-based original techniques in a multi-sensor environment to identify when sensors start to stray, rather than wait for errors to grow. The carbon stripping (gold) circuit in the Pogo Mine of Alaska was selected for this project. Maintaining strip vessel temperatures at optimum levels is crucial for maximizing gold recoveries at Pogo, and hence the focus was on the temperature sensors of the two strip vessels. An automated algorithm to detect errors in strip vessel temperature sensors was developed that exploited data from multiple sensors in the strip circuit. This algorithm was able to detect with a high success rate when bias errors of magnitude as low as ± 2% were artificially induced into strip vessel temperature data streams. The detection times of about 1 month were much less than the industry average calibration frequency of 1 year. Thus, the algorithm helps detect errors early, without stopping the circuit. The algorithm alarms can serve as triggers when calibrations are done. Experimental methodology along with results, limitations of algorithms, and future research are also presented in this paper.

By Helmut Westermayr, Michael Tergl

DESCRIPTION OF PROJECT Geographic Setting The Kops II plant is a pumped storage scheme of the hydroelectric power producer ‘Vorarlberger Illwerke AG’ which is currently under construction in the Austrian Province of Vorarlberg. The plant is located at the end of the Montafon valley and will be fed with water coming from the Silvretta mountain range (Figure 1) Description of Plant The Kops II plant shall be operated as a pumped storage plant with three highly flexible and quickly controllable power generating units. Each unit shall have a capacity of 150 MW and shall be equipped for both turbine operation and pump operation. The Kops II plant uses the existing Kops Lake as upper storage reservoir and the existing Rifa balancing reservoir as lower storage reservoir. All major plant components of the Kops II scheme are located below ground. Total investment costs areapprox. 360 million Euro. Construction Lots The construction works for the Kops II plant, which were subdivided into three lots, were launched in September 2004. It is planned that the first power generating unit shall go on line in the year 2007. The completion of the overall project and the operation start-up of the second and third unit are envisaged for the year 2008. Lot 1—Pressure Tunnel. The 5.5-km-long pressure tunnel forms the connection between the Kops Lake and the beginning of the pressure shaft. The tunnel was excavated by the use of a double-shield TBM. Lot 2—Pressure Shaft and Surge Chamber. The approx. 1.1-km-long pressure shaft was excavated by TBM, advancing from bottom to top. Featuring an inclination of80%, the pressure shaft overcomes a difference in height of approx. 700 m. Lot 3—Power House Cavern and Tailrace Structure. The power house cavern, which is being built approx. 150 m inside the mountain, forms the core of this plant. The power house is designed to accommodate three power generating units, and the transformer cavern is forseen to accommodate three transformer units. The tailrace structure serves the purpose of conveying the water to the lower storage reservoir during turbine operation and as water intake during pump operation (Figure 2).

Jan 1, 2007

By Fernando Bermejo

El presente texto describe la implementación del método Flash - Flotation para el proceso de optimización de plantas concentradoras polimetálicas en la Compañía minera Raura donde se tienen diferentes gravedades especificas por cada especie mineralógica. Su aplicación comprende la fase de investigación (año 89), modificaciones (año 2002) durante la etapa de escalamiento industrial y la optimización (año 2004) de estos equipos en la empresa, los cuales no han requerido de una gran inversión. Asimismo, los beneficios de operar con la celda SK-80 y SK-240 directamente a la descarga de los molinos primarios, permite optimizar el control metalúrgico. En este sentido, la idea de separar el plomo tan pronto lo permita el sistema, es la forma correcta de optimizar la metalurgia de este en la Compañía minera Raura.

Sep 12, 2005

By M Hourn, D Turner, P Voigt, D Mallah

The GPM Gold Project is located in Armenia, and consists of an open cut mine at Zod, near the Azerbaijan border, and a CIL processing plant at Ararat near the Turkish border. Mining at Zod commenced in 1976, and focused on near surface oxide ores, which overlay deeper refractory sulphides. Historical mining has now almost depleted the oxide ores, and the sulphide content of ore delivered to the processing plant at Ararat is increasing. Gold and silver recoveries through the Ararat plant were declining steadily.GeoProMining, the owners of the project, have expanded the Ararat facility to deal with the increasing sulphide content in the ore. In 2014, GeoProMining refurbished an existing concentrator on site to recover a sulphide concentrate from the ore, and have constructed an Albion ProcessTM plant to oxidize the refractory concentrate. Glencore Technology (GT) provided the Albion ProcessTM plant as a technology package.In July 2014, the progress of the GPM Gold Project Albion ProcessTM Plant was reported (Hourn, Voigt and Turner, 2014). At the time of writing, the construction of the plant was nearly complete. This paper presents an update of project progress, covering commissioning and ramp up of the GPM Gold Project.The commissioning phase occurred over June to August 2014, which included an M3,000 IsaMillTM fine grinding plant, a 6 tph limestone milling plant, a 60 tpd vacuum pressure swing adsorption oxygen plant, a 10 m residue thickener and a 12 tph Albion ProcessTM oxidative leach plant. Since commissioning was completed, ramp up occurred over the following three months with downstream gold recoveries from cyanide leaching reaching over 98%.CITATION:Voigt, P, Hourn, M, Mallah, D and Turner, D, 2015. Commissioning and ramp-up of the Albion Process at the GPM Gold Project, in Proceedings MetPlant 2015, pp 207–219 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 7, 2015

By Joel Lööw, Jan Johansson, Lena Abrahamsson

Industry 4.0 offers new possibilities to combine increased productivity with stimulating workplaces in a good work environment. Used correctly, digitalization can create attractive jobs in safe control room environments, which provide space for the employee’s full expertise and creativity. This is true also for the mining industry. But, to succeed, it is important to analyze the development from a worker’s perspective. What will happen to their work? What skills will be needed in the mine of tomorrow? We must also consider the risks, such as privacy issues, increased stress, and work-life boundaries. These questions must be understood if we are to create workplaces that can attract a young and diverse workforce to tomorrow’s mining industry. In this article, we try to illustrate what the new technology can mean for the individual miners. We formulate the notion of Mining 4.0 (Industry 4.0 in the mining industry), where we try to create an image of how the future might look from a miner’s perspective and how mining companies may navigate their way to a future that works for all miners. To illustrate the range of possible outcomes, we formulate two scenarios: one utopian and one dystopic. At the end of our article, we bring forward six recommendations that can be considered a beginning of a road map for the human side of Mining 4.0.

By Joel Lööw, Jan Johansson, Lena Abrahamsson

Industry 4.0 offers new possibilities to combine increased productivity with stimulating workplaces in a good work environment. Used correctly, digitalization can create attractive jobs in safe control room environments, which provide space for the employee’s full expertise and creativity. This is true also for the mining industry. But, to succeed, it is important to analyze the development from a worker’s perspective. What will happen to their work? What skills will be needed in the mine of tomorrow? We must also consider the risks, such as privacy issues, increased stress, and work-life boundaries. These questions must be understood if we are to create workplaces that can attract a young and diverse workforce to tomorrow’s mining industry. In this article, we try to illustrate what the new technology can mean for the individual miners. We formulate the notion of Mining 4.0 (Industry 4.0 in the mining industry), where we try to create an image of how the future might look from a miner’s perspective and how mining companies may navigate their way to a future that works for all miners. To illustrate the range of possible outcomes, we formulate two scenarios: one utopian and one dystopic. At the end of our article, we bring forward six recommendations that can be considered a beginning of a road map for the human side of Mining 4.0.

By James J. Meadows, Jason D. Pampena, Emanuele G. Cauda, Lauren G. Chubb

Exposure to respirable crystalline silica (RCS) can cause serious and irreparable negative health effects, including silicosis and lung cancer. Workers in coal mines have the potential of being exposed to RCS found in dust generated by various mining processes. The silica content of respirable dust in one single mine can vary substantially over both time and location. The current monitoring approach for RCS relies on the use of traditional air sampling followed by laboratory analysis. Results generated using this approach are generally not available for several days to several weeks after sampling, and this delay prevents timely and effective intervention if needed. An alternate analytical method is needed to reduce the time required to quantify the RCS exposure of mine workers. The National Institute for Occupational Safety and Health (NIOSH) has developed a new method using commercially available portable infrared spectrometers for measuring RCS at the end of the sampling shift. This paper will describe the application of the new field-based RCS analytical process for coal mines, including the use of the new method with the existing Coal Mine Dust Personal Sampler Unit. In a case study conducted by NIOSH with a coal mine operator in West Virginia, field-based RCS analysis was completed at a mine site to evaluate the new technique. The RCS analysis results obtained by the field-based method in this case study showed sufficiently strong correlation with results obtained by the MSHA standard laboratory analysis method to allow the mine operator to use the field-based method for evaluating process improvements.

By X. L. Huang

This paper deals with the experimental and theoretic study of the contact pressure beneath the deep foundation of Beijing International Hotel, The experiments have been carried out in project and in model footing 6.6m2. The result of measurements shows the contact pressure at the edge is greater than that at the center. The theoretic analysis on the base of elastic theorey is in good agreement with the test if the proposed assumption used.

Jan 1, 2010

By J. R. Hart, V. C. Smith, V. P. Babarovich-Hansen, J. H. Schubert

"An introduction and case study of Mintek's latest generation of Milling Circuit controller, the MillStarTM with IES (Interpreting Expert System) is presented. This paper also describes as a case study its installation on a Southern African base metals concentrator plant which has demonstrated improved operation, greatly reduced variation in product quality, as well as increased capacity and availability of the circuit.In this case study, the MillStarTMw as installed along with several other enhancements, including hydrocyclone underflow monitoring, product particle size estimation and flotation circuit stabilisation. MillStarTM utilised the particle size measurement to control grind to within 2% of setpoint, all the while ensuring sump level control, density control as well as mill power optimisation. Mintek' s expertise in the modelling of tumbling mills allowed the development of a specialised optimising controller that ensured the mill was kept in the most efficient operating region.MillStarTM augments the automatic control with useful user interface features, such as on-line trends of any logged variables, historic data warehousing and retrieval and production summary reports.A novel feature that distinguishes the MillStarTMi s the IES (Interpreting Expert System). This is a feature of the software that works with the automatic control code to generate explanations for control actions made by the controller. Often complex control systems are mysterious in nature, reducing trust and eventually resulting in them being switched off. The IES method of exposing the heart of the controller has proved popular and is seen to have potential as a training tool. 314"

Jan 1, 2000

By Joseph N. Bakambu

It is currently recognized by mining society that autonomously guided underground mining vehicles may greatly increase the efficiency of mining production and improve human safety. Recent results in mobile robotics, data fusion and sensor development provide a solid basis for solving the problems related to autonomous underground navigation. Recently developed commercial systems mostly rely on the infrastructure that is expensive and difficult to maintain. Guideless navigation in unstructured and harsh environment of underground mines is still a challenging task. In this paper, we describe an autonomous navigation system for an underground mining vehicle equipped with on-board dead reckoning, inertial and optical sensors. This system does not require any artificial infrastructure and is capable to guide the vehicle along the complex environment of interconnected underground drifts; it also ensures the detection of obstacles on the vehicle path. The user interface for monitoring and control is described and the results of laboratory tests and on-site experiments are presented. Work in progress addresses the system integration for real equipment, and the system upgrade, adding map-building and selflocalization capabilities .

May 1, 2002

By S. K. Schwartz

"This paper describes the general layout of the environmental monitoring scheme at Devco 's No. 26 Colliery, including wall face ventilation, fan performance and methane drainage, and then goes on to discuss the sensors, the outstation layout, the surf ace control room and the protection of the system.IntroductionCape Breton coal mines have been pioneers in the use of the latest technology in mining coal on this continent. To mention just one example, continuous methane monitoring at the coal face was started in 1976 and the idea of automatically stopping the face conveyor during high gas levels using the face signalling system was conceived and developed by CBDC engineers.With the introduction of remote environmental monitoring, No. 26 Colliery will be the first underground coal mine in Canada and possibly in North America to have computer-based comprehensive environmental monitoring.Traditionally, surveillance of the mine environment has been based mainly on periodic checks by portable or hand-held monitors. Although this method proved adequate, it has some limitations, namely:1) restricted 'number of observations and samples;2) relatively long time between taking measurements and availability of results for assessment.With remote monitoring, the above limitations are overcome because (a) monitoring is continuous and (b) monitored data are updated quickly (typically 5-7 sec.). Remote monitoring also provides a centralized 'information center' at the surface from where the entire mine environment can be monitored. Details of modes in which data can be displayed and features available at the location will be discussed later in the paper."

Jan 1, 1982

By Erkan Bayrak, Serkan Erkara, Ozkan Duzgun, Ekin Gungor

This paper presents part of the outcomes of the drill and blast optimization project carried out at Kisladag Gold Mine in Turkey. Kisladag Gold Mine is the largest gold mine in Turkey with a low-grade, bulk-tonnage, open pit operation that uses heap leaching for gold recovery. After blasting, the ore is fed to a three-stage crushing circuit which prepares crushed ore approximately -10 mm (0.39 in) for heap leaching. Crusher downtime analysis showed that blocky material and insufficient feed are causing significant downtimes with the primary crusher. This was supported by the fragmentation data collected to date. It was decided to initiate a fragmentation project to understand the variation in the run-of-mine (ROM) size with a view to provide a consistent feed to the crushing circuit. The study includes the analyses of the ore strength and structure, image analysis of the fragmentation pictures acquired from blasts, blast auditing and quality assurance and quality control (QA/QC) analyses. During this project, over 200 fragmentation pictures were acquired from 47 blasts to optimize ore and waste blasts. Ore strength varies between 30 and 120 MPa and rock quality designation (RQD) ranges between 30 and 100. A site-specific fragmentation model was used to calibrate the fragmentation for blast domains formed. In addition, alternative cases were simulated to achieve blasts designs with consistent ROM fragmentation size distribution. Alternative blast designs that include stemming length and powder factor changes were suggested. Long stemming length, drill cuttings use, free faced blasts, small shot sizes and poor stemming length control were some of the key issues causing coarse fragmentation.

Jan 1, 2015

By H. S. Auvil, L. D. Schmidt, H. G. Graham

"Several studies on the bulk density of coals prepared for byproduct-oven use were undertaken during the war by the Bureau of lanes in cooperation with the Office of the Solid Fuels Administrator and with the advice of the Coke Production Committee. The primary purpose of these studies was either to produce more uniform coke or to increase the throughput of existing facilities or both; the goal was increased Production of steel for war. As these studies were made, detailed reports were sent to the individual companies with whom the Bureau cooperated; also two reports,5/6/on the general subject of bulk-density control were published. In the course of the work, data were gathered that now prove of value in judging the merit of carious methods of testing bulk density and the limits of application of each method in byproduct-oven operations.Since the cessation of hostilities, the .Bureau section (Coke Production Survey Section) that conducted this work has been liquidated, but it was felt advisable to prepare a report on the accumulated experience so that it would be in a form available for the use of the industry and also as a base for any further research on the control of fluctuating bulk densities in coke ovens.It is hoped that the data and experiences recorded herein will be of material assistance to the many who have had difficulty in obtaining reproducible results in bulk-density testing. Since the data were gathered in the course of extending aid to individual plants in minimizing the deleterious effects of fluctuations in bulk density of oven charges on the quality and quantity of coke produced, certain desirable phases of an over-all investigation were not covered. However, on certain of these phases qualitative indications are available and the policy followed herein is that suggested by the American Society for Testing Materials Manual on Presentation of Data7/ that lacking quantitative information, relevant material should be included even though it ""may be qualitative in character, some may even be vague."""

May 1, 1946

By George S. Rice

In response to numerous requests for information as to the status of internal-combustion mine locomotives of the Diesel type that use heavy or non- volatile oil for fuel, with special reference to their safe use in coal mines, the United States Bureau of Mines is issuing this report. Data mere obtained, on application of such locomotives to cod mining only in Belgium, France, Germany, and Great Britain. The locomotives are used in coal mining in other countries, as well as in potash, iron, and other kinds of mining, but their chief development has been in coal mining in Germany, France, and Belgium. Recently popular interest in the Diesel type of engine for motive purposes was aroused in this country by the successful application of Diesel engines to railroad locomotives hauling fast transcontinental trains, and, according to published statements, at a low cost of fuel per mile of run.

Jan 1, 1936

By A Hanna

Quarries around Auckland have reached or are reaching the ends of their lives, which raises issues about rehabilitation. Significant volumes of 'cleanfill' are generated by the City, particularly during phases of urban renewal and development. Emplacement of the fill in quarries removes the problem of fill disposal and provides an opportunity for restoration of the quarry site.There is a compatibility between quarrying and cleanfilling because at quarries:Truck routes are already established Neighbours are accustomed to the effects and appropriate buffer distances have been established Bringing fill into a site attracts aggregate sales and is very efficient. Fill originates from construction sites and ad-hoc excavations and therefore it is not surprising that sampling has shown the quality to be variable. Both Winstone and the Auckland Regional Council have surveyed undisturbed soils in the region to attempt to determine natural background levels of common contaminant substances. Comparison of these levels with delivered fill shows that a high proportion of delivered materials can be regarded as mildly contaminated. Therefore the term 'cleanfill' is, in the Auckland region at least, a misnomer and the term 'managed fill' has been adopted.Historically and presently the only control on quality of 'cleanfill' has been some visual inspection. This leaves the fill operator open to potential liability for creating a contaminated site. Implementation of controls at WinstoneÆs operations has progressed slowly, over some ten years. This is mainly due to the perception that mobility of contaminants within and out of the landfill will be very limited because of the near-neutral pH and abundance of clay minerals in the fill. The methods of control and results of environmental risk assessments at WinstoneÆs Puketutu Island Quarry will be briefly described.

Jan 1, 2002

On the 26th of June 2000 a hydraulic fill retaining barricade failed at the Bronzewing mine in Western Australia. The barricade failure resulted in the release of 19,000 m3 of saturated hydraulic fill into the mine and caused the deaths of three miners. Following this tragic accident, the practices and procedures of mines using hydraulic fills came under intense scrutiny by regulatory bodies and mining companies. At this time, the use of hydraulic fill at Normandy?s zinc/copper Scuddles mine was suspended and waste rock became the sole backfill material in use underground. By 2003, development of the adjacent Gossan Hill mine had progressed to a point where a self supporting fill material was required to enable full recovery of high grade ore. Cemented hydraulic fill (CHF) was identified as the optimal fill type and work began on designing appropriate management procedures and controls to ensure the safe implementation. This work included definition of the fill properties, plant design and construction, reticulation system design, design of stope barricades and drainage systems and fill placement control and monitoring practices. CHF placement began on 16th July 2004 and has continued to date. Significant operational experience has since been gained in areas including plant performance, fill product quality assurance, barricade construction, stope drainage and in-situ performance.

May 1, 2007

By J. Forwood

The Youga gold mine in Burkina Faso, West Africa, is scheduled to produce first gold in the third quarter of calendar 2007. The project is expected to produce 540 000 oz of gold over 6.5 years, from a conventional open pit carbon in leach mine. The direct capital cost of the project is US$47 M. Etruscan Resources Inc, a Canadian based gold exploration and development company, holds 90 per cent of the project company Burkina Mining Company SA (BMC). The state of Burkina Faso is free-carried for the remaining ten per cent of BMC. RMB Resources Limited, of Melbourne Australia, has arranged a US$35 M project finance facility for BMC (the Borrower) as the majority of funding for the Youga project development. The loan facility was provided by RMB Australia Holdings and Macquarie Bank Ltd (the Lenders) each as to 50 per cent in the lending syndicate. The Lenders also provided a gold hedging facility to guarantee a minimum price for the project's gold production. Burkina Faso is a francophone country, part of the Economic and Monetary Union of West Africa (UEMOA). The project financing is the first such facility to be arranged for a mining project in Burkina Faso, with little or no precedent available in other UEMOA countries. Therefore, while the Youga gold project is forecast to be a robust project applying conventional mining and processing methods, a number of legal, technical, commercial and social issues required identification, evaluation and resolution before the loan could be established. This paper describes that evaluation process and the resolution of these issues. In-house experience and expertise in both the Lenders' and Borrower's teams has facilitated a greater understanding and `ownership' of the issues and hence provided comfort with risks which might not normally be taken in conventional project developments and project financings. As a result, blanket external reviews were not required by the Lenders. A long-standing relationship between Etruscan and RMB Resources also facilitated solutions to a number of issues. Nevertheless, a degree of flexibility by the Lenders, the Borrower and Etruscan was required to successfully close the financing.

Jan 1, 2007