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By Eric Low

Raising capital by issuing debt or equity is necessary in almost every corporation. In the field of corporate finance, the raising of capital is a heavily-studied topic. However, some of what is studied on this topic in corporate finance is not applicable in the mining industry. There are also many financing options that were created for the mining industry such as flow-through shares, prepaid forwards, and royalty sales. The cyclical nature of the industry makes the risk-return profile of financings more difficult to estimate than in other industries. Additionally, the methods used to assess firm value are different than other industries, as the values of orebodies are not included on balance sheets. For precious metals companies, which are a hedge against most other securities, there are additional complications with determining investor expectations and cost of equity. This thesis puts forth a decision-making framework to explain mine financing choices from the perspective of mining companies. The approach is threefold. First, all of the major equity and debt financing instruments available to mining companies are presented and analyzed. Each financing method is assessed on a wide range of criteria. Next, these concepts are applied in case studies of four companies: BHP Billiton, Barrick Gold, Teck Resources, and Noront Resources. For each company, the overall choice of financing methods is shown and analyzed. The effect of financing choices on the weighted average cost of capital (WACC) is calculated. The final section deals with case studies of individual mine finance decisions during the past two years.

May 1, 2011

During August, 1926, with the consent of Mr. Schell, mine manager, the writer conducted a mill test on this company's concentrators. Mr. Schell not only gave him his permission, but rendered all possible assistance. Although it was impossible to take all the samples one could have wished to obtain, yet the salient points of the mill flow-sheet were sampled for a continuous period of eight hours, and from these samples and separate data supplied by the manager, valuable information was collected.THE MINEThis is a true vein-type of mine; the lode formations, striking almost due north-south, cut the large porphyritic intrusion at right angles. There are three distinct veins on this property - parallel, persistent, and dipping at an angle varying between 40° - 50° to the horizontal.The country rock is very sound, and timber, save for the small amount required for ore chutes, is entirely absent from all mine workings.The lode varies from a width of 1 in. to 8 in., but the stopes are carried forward with a minimurn width of about 30 in.The mine is particularly dry for a West Coast property, and conditions underground are very favourable. Air drills are used...

Jan 1, 1928

By Robert W. Bruhn

An investigation was male of ground response to pillar retreat mining in a 1.7 meter thick seam at 108 meter depth at a site in northern West Virginia. This paper describes mining-related stress changes and movements at nine level, displacements within the overburden, ground surface subsidence and groundwater level variations. Subsidence approached 40 per cent of the nine height ad continued more than a year after mining. Water levels declined la certain deep-lying strata.

Jan 1, 1984

The Estonia Mine, operated by Eesti Energia Kaevandused AS (EEK), the mining division of the Estonian Government's energy company, Eesti Energia AS, is a large room and pillar mine located in Eastern Estonia. It supplied approximately 4.9 Mt/a of oil shale in financial year ending 2010, which is used for electricity and shale oil generation. Due to the Estonian climate and the power station's need for a dry product, Estonia Mine has developed a planning system where short-term demands of the power stations dictate the schedule. Such an arrangement requires maximising flexibility and consequently the mine only operated for 199 days in 2010.The footprint plays a key role in achieving mass mining rates as the 12 km + 12 km lease area allows the mine to split into mining districts that act independently of each other and maximise the number of work areas available. Coupled with this, the geology of the mine is relatively homogenous over the mining lease, simplifying the mine design and production methods.During the last five years, EEK has commissioned a comprehensive conveyor network. Consequently, material handling only requires loaders to dump oil shale direct from the production face onto a chain conveyor that feeds the conveyor network that ultimately supplies the enrichment plant. Dewatering is also of critical importance, with 90 Mm3 of water discharged annually. EEK uses large trenches up to 3.5 m deep and 1.2 m wide to channel groundwater. Track mounted mechanical saws are used to cut slots in the floor, to control overbreak in blasting these trenches.EEK has introduced Salzgitter Machinenbau GB 280S auger drills that drill three 280 mm diameter holes simultaneously. This has improved void hole drilling times and reduced the drilling required for each face, reducing the overall production cycle time. Blasting activities have also been decoupled from other mining activities negating the need for firing times through the use of small independent firings, required to control vibrations.

Dec 6, 2010

By M. Bennett, L. Twidwell

Montana Tech has embarked on a coordinated series of studies to delineate the characteristics of the Berkeley Pitlake containing over 36 billion gallons of acidic, metal-contaminated water formed after the cessation of open-pit copper mining in Butte, Montana, USA. The objectives of the overall series of studies are to summarize presently available information and to generate new and needed information to formulate a conceptual environmental model for the pitlake and to provide characterization data for the development of advanced treatment technologies. In this presentation, the chemistry of the Berkeley Pitlake water is partially reviewed. It is known that the pitlake consists of two distinct layers of water referred to as surface and deep water. Samples of deep water were collected and placed in a 12-ft high and 6-inch diameter column and exposed to different wavelengths of UV radiation as well as atmospheric conditions. Measurements of pH, redox potential (EH), dissolved O2, turbidity, conductivity, temperature, and elemental composition show that the water reacts differently and indicates that the diurnal effects of sunlight likely play a major non-biological role in its chemistry. Resulting technology could be useful for developing an alternative to treating acid-rock drainage.

Jan 1, 2007

Cobalt mostly occurs as a minor, but valuable, constituent in most nickel and a few copper ores, however it is not generally found alone in commercially viable deposits. Its concentration and extraction are therefore intimately linked to the recovery of the primary metals and the major task for the metallurgist is to extract cobalt of commercial grade from a much larger mass of either nickel or copper and sometimes both. With a particular focus on Vale Inco?s operations, this paper provides a brief overview of the mineralogy of the main deposits being currently exploited that contain cobalt as a co or by-product. The concentration and then extraction to metal are reviewed and some advances released into the public domain are discussed.

May 1, 2009

By P. D. White, J. T. Moss, J. S. McNiel

Results of experimental work on the in situ combustion process were first published in this country in 1953' when Kuhn and Koch described results of a three-well test in Jefferson County, Okla. Shortly there-after Grant and Szasz2 described field studies in Nowata County, Okla., in which several modifications of the basic combustion process were investigated by injection of various oxidizing gas mixtures other than air. In the past five years speculation concerning this method of oil recovery has continued, with a number of interesting papers on various aspects of in situ combustion appearing in the literature3,4,5,6,7. However, only one of these' provided actual engineering information on pattern-type field experiments. The primary objectives of the Oklahoma three-well test were to check operation of specially designed electrical ignition equipment and evaluate problems associated with initiation of combustion in a natural oil sand reservoir. Immediately following successful completion of this test in the Pontotoc sand, plans were activated for a second field experiment to be conducted in the same sand a short distance away. The objective of this second field test1 as to establish a relationship between field observations and information derived from laboratory experimentation and computations. Secondary objectives of the test were to develop operating tech- niques and define operating problems, and to obtain information that would assist in the economic and engineering appraisals of the process. Careful planning was required since this test was designed with the hope of providing basic information on the characteristics and operation of a combustion drive. It was necessary to include test facilities which would not only permit precise control and measurement of the process variables but would also provide sufficient flexibility of control to insure that variables in the combustion process could be studied during the course of the test under a wide range of conditions. In order to accomplish these objectives elaborate instrumentation and several control wells were included in the design of the test installation. This type installation was felt to be well suited for an experimental study, but was in no respect intended as a counterpart of a commercial-scale operation. PRELIMINARY LABORATORY WORK An important objective of the field experiment, as stated previously, has been to obtain reliable data on operating variables which might be compared with similar data obtained in laboratory combustion tests. The value of successful correlations between quantities that can be measured in the laboratory and those obtained in a full-scale commercial venture has been well established for other industrial processes. The difficulty of following a process underground should make such correlations even more essential here. Also. approaching the field test phase of development of in situ combustion, it was considered desirable to precede design of test equipment with laboratory combustion studies under a variety of conditions to establish likely ranges of variables. These included temperature, air injection rate, frontal advance rate and produced gas composition.

By R. K. Collings

"This paper summarizes research that was done at the Mines Branch, Ottawa, to evaluate samples of phosphogypsum for gypsum products manufacture. The samples were from phosphate fertilizer facilities at: Port Maitland, Ontario ; Valleyfield, Quebec; and Fort Saskatchewan and Redwater, Alberta. All samples were wet-screened, washed, filtered and calcined in a laboratory kettle at atmospheric pressure. Tests were also made at higher pressures in a small autoclave. The gypsum and resulting hemi-hydrate, being acidic, were treated before, during and after calcining with various bases. The hemi-hydrate products were checked for time of set, compressive strength and bond to gypsum wallboard paper. The results of this study indicate that phosphogypsum from each of the sources investigated has potential as a substitute for mined gypsum in gypsum products manufacture. Pilot-scale testing is recommended to confirm that the product would be satisfactory for the manufacture of plaster products on a commercial basis."

Jan 1, 1972

Ultrasonic Extinction for High Resolution Particle Size and Concentration Analysis

Sep 13, 2010

By T. Ertekin, X. Dong

This paper identifies the need for the development of specialized inverse solution techniques for the analysis of pressure transient data for the characterization of the transport and sorption properties of coal seams. Central to the proposed inverse solution technique is a specially structured artificial neural network (ANN). The most important transport and sorption characteristics of coal seams are butt and face cleat permeabilities, macropore porosity, Langmuir volume constant, Langmuir pressure constant, and sorption time constant. Conventional methods, such as type curve matching techniques and laboratory-derived measurements are handicapped in terms of being representative over the entire domain of interest. In this paper, we utilize analytical forward solution techniques for various combinations of characteristics of coal seams to generate training and testing patterns. These training patterns are shown to an ANN structured to learn the ubiquitous non-linear relationships that exist between coal seam properties, input conditions and the pressure transients measured. The trained networks are then extensively tested to ensure that they have effectively learned the training patterns. In the final stage of the development, the networks are run in the prediction mode. The responses of the networks are found to be in agreement with the input data. The developed networks are able to generate results generally within 5% error margin for permeability and porosity and 20% error margin for the sorption characteristics of coal seams. A number of examples highlighting the capabilities and degree of effectiveness of the network in characterizing the coal seams areincluded. Keywords: artificial neural networks (ANNs); coal seam characteristics; pressure transient analysis

Jan 1, 2003

By D Syme

In the middle of 2000, BHP Billiton implemented a Six Sigma Plus business improvement program known as Operating Excellence. It was developed based on a business bottom line initiative to deliver 35 - 40c/share and was one of the BHP Billiton strategies to deliver $2 earnings per share and a longer term $40 share price (BHP share price). Cannington is a silver, lead and zinc mine owned and operated by BHP Billiton. Through implementing Six Sigma Plus Cannington wanted to:have in-house capabilities to change and improve; tailor for the needs of each business unit and department; have æSharing of its KnowledgeÆ as a tool for improvement and have a competitive edge across Cannington û to be better than our competitors; learn from and leverage off the successes of improved safety and prior business improvement efforts; and ensure networking and sharing of information have common measurement systems across all assets. As with most business improvement programs û Six Sigma Plus was met with some degree of skepticism, especially given the amount of resources involved. After 18 months, much of this skepticism has been replaced with enthusiasm as peopleÆs understanding and acceptance of its fundamental concepts are being realised. The idea behind Six Sigma Plus is that it combines sound technical solutions with high acceptance by those who need to work with or implement the change. The future vision for Six Sigma Plus is that it become part of what we do at Cannington û just like safety and environment û so that Six Sigma tools and methodologies are used in our every day work.

Jan 1, 2002

By McKenzie P

The techniques of geological control developed by the Coal Geology Sections of the Broken Hill Proprietary Company Limited and Australian Iron and Steel Proprietary Limited in providing geological service in the coilieries operated by these associated companies cover the provision of geological control for both planning and production in each of which the significance of geology has in the past been only poorly appreciated by the coal mining industry.While the adoption of similar techniques is well within the capacity of major companies there is considerable scope for the development of government geological services providing specialized assistance of this nature for smaller scale producers.INTRODUCTIONThe coal mining industry in Australia can instance many notable mistakes caused by failure to obtain sufficient geological information or by incorrect interpretation of available geological evidence both before the commencement of mining and during the progress of operations. Substantial development undertaken in, areas with insufficient or inferior coal reserves, difficult mining conditions caused by failure to adjust operations to geological circumstances, and the irregular development of mine workings caused by unexpected geological features, all bear witness to the lack of geological foresight by the industry.Along with the more widespread general use of applied geology, an increasing acceptance has developed during the past ten years of the valuable contribution which can be made by this science to the exploitation of coalfields. In spite of the advances which have been made, there is still a wide scope for further detailed application of geology throughout the coal mining industry in Australia.

Jan 1, 1963

By G J. Lyman, F S. Bourgeois

As the prices of metals slide, financial control of mineral processing operations becomes more and more important. Control of a mineral processing operation implies measurement of grades, recoveries and losses, with every effort being made to recover more product from the same feed. Shareholders become more concerned with the transparency of the operations and the corporate governance.There is only one way to achieve this and this is by sampling and making good use of the results of that sampling. Sampling systems that provide only 'rough' figures are not good enough. Similarly, a competitive position in the marketplace demands close control of product quality. Maximisation of product output demands that the product just meet the specification so that product yield is maximised. Decisions based on precise sampling results carry less risk that those based on imprecise results.This paper reports some recent advances in sampling theory that permit full quantification of sampling distributions, not just the sampling variance as has been possible in the past. These advances can be used together with simulation methods to tie down sampling precisions and develop calculations that quantify decision making risk when using the sampling results. A number of examples illustrate the use of the new advances and a final example indicates the development of risk analysis curves in the coupling of sampling precision to sale of a commodity.CITATION:Lyman, G J and Bourgeois, F S, 2015. Sampling, corporate governance and risk analysis, in Proceedings MetPlant 2015, pp 27–34 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 7, 2015

By Anthony S. Spearing

The vast majority of the estimated 100 million rock anchors installed in mines in the USA per year use resin cartridges (Tadolini and Mazzoni, 2006). About 4.5 million per annum of these are bolts with a mechanical shell that if properly installed become effective active supports on installation. In addition, cable anchors (mostly passive) are installed with typically 4 ft of effective resin anchorage length sometimes with mechanical shells, which further makes the installation more difficult. This is because the cable (even with a stiffener tube) is not very rigid. When installing bolts with mechanical shells and cable bolts in the holes, the back-pressure can be so high that the installation is unsuccessful often creating a ?spinner? (an un-tensioned bolt) at best or buckling the bolt thus requiring another bolt/cable to be installed, or leaving a poorly functioning unit. The installation problems can create a significant potential safety hazard and waste time and money. Using a purpose designed test rig that physically inserts different rock anchors into pipes with resin and measure the back-pressure developed with time during the insertion/ installation. The test installation procedure is designed to mirror that used underground by rockbolt operators in coal mines. In addition a computer model has been calibrated that can predict the approximate back pressure of new anchor and resin combinations acting as a screen before physical testing. This research has lead to an understanding and quantification of the insertion back-pressures and this already resulted in improved prototype designs that could lead to more reliable mechanical shell and resin bolt installations.

Jan 1, 2009

By Douglas M. Smith, G. A. Maki

"The initial development of the massive potash deposits of the prairie evaporite formation took place over a decade ending in 1970. The potash mining and refining facility near Rocanvi11e, Saskatchewan was the 1ast of ten mines to come into production during that era. This operation, known as Sylvite of Canada Ltd., was designed to produce 1. 2 million short tons per year of KCl product in granular, coarse, standard and special standard grades.In 1977 the parent company, Hudson Bay Mining and Smelting, sold the Sylvite property to the Potash Corporation of Saskatchewan. Shortly thereafter PCS slated its new Rocanville Division for a two phase program of expansion. The first phase, completed in the spring of 1979, was relatively small, involving mill debottlenecking and additional equipment in the compaction circuit and the product and ore storage areas. The second phase was a major undertaking which included additional mining equipment and a new 300 STPH milling circuit. This work was completed during the fall of 1981 and has increased the Rocanville Division's nameplate capacity to two million STPY.Thickening equipment operating in the Saskatchewan potash industry is generally situated within the main refinery building or a separate insulated and heated structure due to the harsh winter climate and the need to closely control plant brine temperatures to ensure good flotation circuit performance. Since these thickeners process large volumes of slurries, conventional basin type designs tend to be large, ranging up to 150 feet in diameter or more. As part of the general effort to minimize capital costs, the potash industry has begun investigating the use of alternate high capacity, compact thickener designs. In this regard, PCS Rocanville undertook a program in 1978 to evaluate a Lamella™ Thickener and one other type of 'High Rate' thickener* as alternatives to a conventional design for the phase two expansion project."

Jan 1, 1983

By P M. Hancock, Associates

Lacustrine sediments, hydrothermal explosion breccias and spring precipitates deposited 5200 - 1800 years BP as a result of geothermal activity at Lake Rotokaua, contain New Zealand's largest known sulphur reserves. Current drill indicated reserves are 2 600 000 tonnes of elemental sulphur, assuming a ten per cent (dry basis) cut-off, contained in some 17 000 000 tonnes of ore with an average grade of 214.0 per cent (dry basis) sulphur. Additional inferred ore containing 500 000 - 900 000 tonnes of sulphur has yet to be prospected by drilling. Geological factors will be important in exploitation of the deposit, particularly the extent and disposition of the orebody, sulphur grades and distribution, physical characteristics of the ore, permeability and stability of the overburden and the nature and extent of geothermal activity in the area. Trials to date indicate that Frasch mining and possibly opencutting are unlikely to be successful mining methods. Further mining feasibility studies will be required to ascertain the most likely mining system for the deposit.

Jan 1, 1984

By Daniel G. DiCanio

This report describes a computer-based model for estimating the tangible costs of injuries and deaths from work-related accidents in underground coal mines. The study undertook to identify and quantify the elements of accident costs, including field visits to coal mines, insurance carriers, and public agencies. The mathematical models developed for each tangible element of accident cost are presented in Volume I of the report. A listing of the computer programs which comprise the model and instructions for using the programs are presented in Volume II. Statistical distributions of mining family characteristics, data on 95 miners killed in underground accidents, and other basic data used to develop the model are presented in Volume III. Application of the model to a data base of 9,286 accidents which occured in underground bituminous coal mines during 1974 yielded a total of $56,900,000 in tangible costs to industry, mining families, and public agencies. Loss of income to the families of miners injured or killed in these accidents accounted for 47 percent of the total.

Jan 1, 1976

By M. Ahrens, J. Gonser

Gearless mill drives are a well established solution for grinding applications in the minerals and mining industries. The paper describes the functionality and technical features of such drive systems as well as their advantages compared to other drive solutions. Due to the variable speed operation the grinding process can be optimized for ores with varying grinding properties. This leads to significant optimization potential for the plant design as well as for its operation. Furthermore, energy and cost savings due to optimized operation, high system efficiency and high system availability are shown.

Jan 1, 2007

By T. Plikas, L. H. Gunnewiek, L. Oshinowo

Electric furnace smelting is one of the principal unit operations for ferroalloy production, and increased process intensity, improved availability, minimal maintenance and a longer campaign life are common objectives for electric furnace operation in order to obtain favourable economics of production. Furnace designers have continued to develop innovative solutions that have allowed these objectives to be realised, e.g., furnace cooling systems, and numerical modelling plays a key role in the design process. Enhanced understanding of the energy transfer process in the furnace and the ability to develop, evaluate and optimise components of the crucible design to match process requirements are the key motivators for modelling. This paper provides an overview of recent applications of numerical modelling to the design of electric furnaces. The aim is to illustrate what can be done, and identify areas where further work is needed in this field. Examples include furnace bath modelling, crucible cooling system design, taphole design, baking of Soderberg electrodes, off-gas systems, and fume control and building ventilation. It is argued that the trend is for numerical models to become more encompassing while at the same time more accessible, and therefore further improvements in furnace design will be realised with continued and well validated modelling efforts.

Jan 1, 2004

The Morley Coal Measures (Upper Cretaceous) at Ohai Coalfield were deposited in an intermontane basin alluvial environment of entirely terrestrial aspect. Within this regional setting, three distinct types of depositional environment are recognised; these are: (i) a sand-dominated (South Saskatchewan type) braided river system characterized by channel-bed dunes and possibly compound bars; (ii) a well-drained floodplain environment frequently subject to crevasse-splay and overbank-flow sedimentation; and (iii) a poorly-drained, commonly peat-accumulating backswamp environment locally traversed by tributary drainage systems and occasionally inundated by crevasse splays and overbank flows. All major coal seams of the Morley Coal Measures originated within forest moors under predominantly telmatic (periodically inundated) conditions. The peat-forming vegetation comprised largely arborescent forms (dominantly conifers), in addition to pteridophytes and bryophytes. In-seam vertical variations in coal type indicate groundwater levels initially decreased and then increased during the lifetime of a particular peat swamp, possibly in response to a change in the migration direction of an adjacent fluvial system. The proposed depositional model for the Morley Coal Measures has the potential to be utilised during exploration programmes and mine development to impart greater objectivity to predictions concerning seam geometry and continuity, trends in coal type and quality, and likely roof and floor conditions.

Jan 1, 1985