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By Roberto Busato Belger

- Fertilizer Business Overview - Supply -Demand Balance in the World - Supply -Demand Balance in Brazil - Brazilian Market Growth Opportunities - Fosfertil Operations - Fosfertil Expansion Plan - Salitre Project - Project Characteristics - Technical Challenges and Solutions - Technical Support Studies Conclusions

May 1, 2010

By M. Vallée, J. -P. Charette, D. P. Gold

"The Oka Carbonatite and Alkaline Complex is a Lower Cretaceous intrusive body of the Monteregian petrographic province. Carbonate rocks of various types, and associated alkaline rocks of the ijolite and okaite suites, are distributed in a double ring-dyke structure 4 Yi miles long by 1 1/2 miles across. Alnoite and alrioite breccia pipes intrude all rocks of the Complex and indicate, from inclusions, that a cover of Palaeozoic rocks existed at the time of emplacement.The results of radiometric, magnetic and gravity surveys of the Complex are compiled and discussed both with respect to the regional pattern and, locally, the bed-rock geology. The Complex is characterized by high-intensity anomalies.Exploration activities started during 1953, and mining operations began in 1961 on the property of St. Lawrence Columbium and Metals Corporation, at one time the world's largest producer of niobium concentrates. Because of the boudinaged and fractured nature of many of the rocks and the variability in grade of the ore minerals, the role of the mining geologist is both demanding and exacting. Rock types are varied and their mutual relation-ships ambiguous, the minerals are rare and complex, and close geological control of the ore is needed in the mine and in the mill. Closely spaced diamond drill holes are needed for mining control, and the ore-waste contact is defined mainly by assay results.In the exploration for 'carbonatites' in Eastern Canada, aeromagnetic surveys are judged to be the best exploration tool, followed in decreasing order by the search for circular structures on aerial photographs, regional gravity surveys and radiometric surveys."

Jan 1, 1967

By Anton Gronningsater

AS we know, Sir Henry Bessemer introduced Bessemer converting in the steel industry about 1855. It was not until twenty years later that the principles were adopted by non-ferrous metallurgists. In 1880, Manés first produced blister copper from matte in a converter, a very important forward step in copper metallurgy. For thirty years, up to about 1910, bessemerizing of copper matte was carried out in the acid-lined converter. It is not necessary here to enumerate all the shortcomings of that operation, one of which was that it strictly limited the grade of matte that could be treated; a 35 per cent matte was low in those days. From the early days of copper converting, many and repeated attempts were made to use a basic converter lining, and the older metallurgists will remember the numerous reports and discussions in connection with such experiments. These make interesting reading. I quote from a book published in 1900: ?'The siliceous lining is as much a part of the process of copper converting as magnesia lining is in the basic bessemer treatment of phosphoric iron, and it is suicidal to attempt any other kind of lining, either water-jacketed or basic.' "Even if the silica could be introduced in this way (through the tuyeres), it would still produce another trouble in the converter. The small particles of silica, being cold, would combine very imperfectly with the iron oxide and produce granulated and pasty slags, which could not be skimmed or poured out of the vessel".

Jan 1, 1942

By Juliana Parreira

The past decade shows record increases in global demand for minerals and metals with an accompanying significant decline in skilled personnel. Mining companies today are examining new technologies to maximize production, reduce costs, and create safer work conditions to deal with this shortfall. Automation of an open-pit mine haulage system is receiving attention as a beneficial option since it provides more consistent and efficient operation of mining equipment, it removes workers from potential danger, it reduces fuel consumption significantly reducing greenhouse gas (GHG) emissions, and it can help optimize vehicle repairs and equipment replacement because of more-predictable and better-controlled maintenance. This paper describes a simulation model under development using the EXTENDSIM software package to examine scale-up issues and constraints of autonomous vehicles in comparison to a manual system. The software can predict and manage Key Performance Indicators (KPIs), such as productivity, safety, cost, equipment failures, fuel consumption, and tire wear under different road and load conditions. By breaking-down the various systems of an autonomous haulage truck and simulating the overall haulage system using a Monte Carlo approach, the model becomes a flexible and powerful tool to use within a mining organization. Direct comparison to a manuallyrun system can be done to show the cost and operational benefits of automation. Project managers can use this tool to guide decision-making about possible application of autonomous haulage trucks at a specific mine site.

May 1, 2010

By George P. Demopoulos

For more than 20 years the author had the privilege of working closely on a number of R&D projects with Lucy Rosato and her team at CEZinc. Several of these projects were driven from the sustainability agenda that Lucy Rosato championed as an innovation leader that supported research collaborations. Highlights from this highly rewarding collaboration are to be presented in this paper. In particular we will deal with the following works-topics: (a) iron control via solvent extraction as alternative to jarosite precipitation; (b) production of high-density gypsum by controlled neutralization of simulated zinc plant process/waste waters; (c) selenium removal from weak acid solutions; (d) electrolyte purification by cementation; and (e) manganese control by oxidative precipitation with SO2/O2.

Jan 1, 2015

By B. Haugrud, E. McConaghy, M. Collins, G. Smith

"Laterite ore processed by the Ambatovy Joint Venture in Madagascar is primarily limonitic in nature, containing about 40 to 45 wt.% Fe and 1.1 wt.% Ni. The process selected for treatment of this ore considered the behavior and deportment of iron in each step of the commercial flowsheet. Such considerations included nickel and cobalt recoveries, reagent consumptions, liquid-solid separation characteristics, and both intermediate and final product purities. In this paper, the results for the first three years of commercial operation at Ambatovy are compared with the design parameters, with emphasis on the behavior of iron.INTRODUCTION The main component of nickeliferous laterite ore is iron, and the Ambatovy deposit in Madagascar is no exception. The Ambatovy ore is primarily limonitic in nature, containing about 40 to 45 wt.% Fe and 1.1 wt.% Ni. Since the nickel content of the ore is roughly one fortieth that of iron, successful recovery of nickel depends on close control of the behavior of iron in the selected process. Exploration of the Ambatovy area, which is located to the east of Antananarivo, the capital of Madagascar, dates back to 1960, when the Malagasy Service Géologique carried out a limited pitting and auger-drilling program. Phelps Dodge Corporation (now Freeport-McMoRan Copper & Gold, Inc.) was granted the mining rights to the property in 1995 and carried out significant resource definition, environmental assessment and engineering studies between 1995 and 2001 (Chou, Rooke, Williams, & Hanks, 2000). In 2003, Dynatec Corporation, which was formed in 1997 by the merger of Dynatec International Ltd. and Sherritt International Consultants Inc., signed a joint venture agreement with subsidiaries of Phelps Dodge to evaluate the Ambatovy Nickel Project. Dynatec then became extensively involved in the development of the project, including process selection and pilot plant testing in Fort Saskatchewan (Collins et al., 2004, 2005, 2009; Collins & Vardill, 2005). Dynatec acquired 100% of the project in 2005 and a joint venture between Dynatec, Sumitomo Corporation, Korea Resources Corporation (KORES), and SNC-Lavalin Inc. (SLI) was formed shortly thereafter to provide funding for further development. SLI was responsible for engineering, procurement and construction management of the commercial facilities. Sherritt International Corporation reacquired Dynatec Corporation, including 40% ownership in the Ambatovy Nickel Project, in 2007. The current Ambatovy Joint Venture consists of an integrated nickel and cobalt mining, processing, refining and marketing enterprise between subsidiaries of Sherritt (40% owner and mine and plant operator), Sumitomo Corporation (32.5% owner) and KORES (27.5% owner)."

Jan 1, 2016

By Costa

The fly-in-fly-out (FIFO) mining model has significant implications for the industry as it plays an important role in fulfilling the economic, social and workforce needs of the contemporary mining industry. It has increasingly been adopted in countries such as Canada and Australia, but is the current nature of the FIFO model challenging the place women have achieved in the mining workforce? Research in the mining and oil and gas industries reveals that major sources of stress for fly-in-fly-out mining workers are the times of parting and of reunion, the challenges in defining roles within the family, parenting, and conflict between spouses over the use of the leave time and money. So how are women in the industry coping with the FIFO schedules and consequent intermittent relationship with families and partners? How is the mining industry adapting to recruit and maintain female employees in FIFO operations? This paper describes an exploratory study conducted in Canada, which intended to provide some initial insights that might help us answer the questions above. There are several inferences made from this exploratory study. It is clear that FIFO poses significant challenges for both female and male workers. It is largely seen as rigid, extremely challenging for employees with young families and workers who are single mothers, and it is generally incompatible with starting a family and caring for small children. FIFO creates severe stress on relationships and on workers psychological well-being. It seems to be indeed harder for women, since they are often in lower paying positions and therefore have less financial reward for the FIFO lifestyle. On the other hand, FIFO creates the opportunity for young women, including Aboriginal women, to jump-start their careers, as well as opportunities for mature women to work while pursuing other personal interests during their time off. This paper concludes with recommendations to improve the FIFO system in order to increase the ability of mining companies to hire and retain women

May 1, 2006

By Jess Harding

Oyu Tolgoi investment agreement now in full, legal effect Successful completion of a series of conditions to 2009 Investment Agreement was announced March 31, 2010. Full-scale construction now set to begin. First copper-gold commercial production from Oyu Tolgoi expected in 2013. 34% of holding company Oyu Tolgoi LL Cacquired by Erdenes MGL, a Mongolian state-owned resources company. Remaining 66% will continue to be owned by Ivanhoe Mines. ?After 9 years of discoveries at Oyu Tolgoi, a big piece of the future of copper and gold in Asia is poised to become a reality.?

May 1, 2010

By Gordon Jackson

"There are two accomplishments of air and gas drilling: a new series of economic and mechanical challenges; and, acceptance as a standard drilling and completion tool.The new challenges are related to the concept of using a gaseous circulating medium in drilling for oil or gas. For purposes of discussion, a two part division has been made: the challenge of fluid invasion control and that of equipment and tools. Great strides have been made in the development of materials and techniques to combat formation fluid invasion. Chemicals and the ""mist drilling"" technique, now in use, have the versatility to cope with a wide range of downhole fluid entry conditions.Equipment and tools have been developed to meet the challenges of better, more economic drilling and completion possible with a gaseous circulating fluid. Economic and operational challenges remain.Acceptance of air and gas drilling as a normal operating tool was reached with difficulty. It is now established as a means of reducing costs in exploratory and develop-mental well drilling, exemplified in a recent study of 226 wells covering 419,407 feet of hole in the United States. Air reached the projected depth in 85 per cent of the operations, although formation water was encountered in 48.7 per cent of the holes. Slim hole bit performance and cost all compared for overall bit averages as part of analysis."

Jan 1, 1961

By P. E. Cavanagh

Introduction A comprehensive study of the economics of processes for smelting iron ores has been made by the Ontario Research Foundation on behalf of the Ontario Research Commission. This survey has included investigations of all processes in commercial use, and proposed processes which are still in the experimental stage. The two main objects of this work were to discover (l) whether any known processes would be particularly suited to present and future Canadian conditions, and (2) whether any new process would be of assistance in solving the present scrap shortage in Canada. The future prospects of the Canadian iron smelting industry have changed radically in the past ten years. For nearly twenty years before 1939 no iron ore was mined in Canada. The ore used was imported, mainly from the United States and Newfoundland. The economics of iron blast-furnace smelting always force the location of blast furnaces near the source of coal for making high-grade metallurgical coke, and near the market for iron and steel, rather than near the iron ore. Blast-furnace installations in Canada are confined to the north shores of the Great Lakes with ready access to United States coal and ore and the major Canadian markets, and to Nova Scotia near the coalfields of that Province. This distribution of primary smelting capacity naturally results in relatively high prices for iron and steel in the West, the North, and in Quebec.

Jan 1, 1948

By Wayne Phillips, Anatalia Silva, Robert Henderson, Tondo. Luis

"Kinross’ Paracatu Mine has 20 years of operational success as one of the lowest grade milloperated gold mines in the world. At year end 2005, Paracatu’s Proven and Probable Reserves were 1.18 billion tonnes at a grade of 0.40 g/t Au, containing a total of 15.2 million ounces of gold.In 2005, the plant processed 17 Mt of ore and produced 180,519 ounces of gold at a cash cost of US$274/oz. An investment of US$470 million has been approved to expand production to 61 Mtpa in 2009 which will extend mine life to 2036. During the period from 2009 to 2013 the project is expected to produce an average annual output of approximately 557,000 ounces of gold at an average cost of sales of approximately $230 per ounce.The soft, friable ore containing readily leachable gold associated with sulphides lends itself to simple processing. The process flowsheet consists of crushing, grinding, gravity recovery, flotation, concentrate leach and carbon adsorption to produce bullion bars. This paper describes the current operation, the deposit’s unique metallurgical features and the future expansion plant that has been designed to optimise recovery of gold.INTRODUCTIONRio Paracatu Mineração (RPM), a wholly owned subsidiary of Kinross Gold Corporation, operates the Paracatu mine. The mine is located in Brazil, 230 km south west of Brasilia in the north west portion of the State of Minas Gerais. The city of Paracatu, which has a population of 83,000 people, is just 2 km south of the mine."

Jan 1, 2007

By M. Y. Levesque

The Australian Government?s Energy Efficiency Opportunities (EEO) program launched in 2006 obliges companies that use more than 0.5 PJ (petajoule) or roughly 139 GWh (gigawatt hour) per year to conduct an energy assessment in order to identify measures to improve energy efficiency. The opportunities identified by the mining sector were assembled in the Mining Significant Opportunities Register that permitted companies not yet embracing and adopting an energy management program to see what those who are, were doing and how much energy was saved, and helps disseminate best practice. The measures can be filtered by company, year, category or equipment type. The creation of a central repository of energy efficiency initiatives is valuable but this existing database could be improved; fields identifying the energy and carbon emission savings associated with a given initiative are a surprising omission. Consequently it does not permit the relative effectiveness of different measures for energy and carbon reductions to be readily assessed. A review of energy management efforts implemented in the mining industry, published in peer reviewed journals, corporate sustainability reports or industry publications during the last 40 years has revealed many examples of best practice. However, the lack of a standardized reporting framework in any of these sources has made it difficult to assess the effectiveness and compare the adopted energy management measures ? just as is the case with the Australian register. In an attempt to address these issues, an improved database structure has been created for energy management measures from the mining industry which identifies energy and financial savings arising from energy management initiatives, classifies applications to specific processes or equipment, and recognizes leaders in the mining industry with respect to energy management. The structure of the register includes the key data relevant to energy management in mining that is absent in the Australian version. The mining industry energy management database has been made available in the public domain where stakeholders can examine the best practice examples. Mining energy champions may also contribute to the register by providing case studies; a standardized entry template affords a quality assurance dimension that is absent in other reporting initiatives. Adoption of this database with its standardized reporting mechanism will enhance transparency of the mining industry in energy matters and help it maintain its social license to operate.

Aug 1, 2013

By Réjean Lévesque

SIDBEC-NORMINES a été incorporée en 1976. Depuis la fin de 1977, ses activités comprennent outre la concentration au lac Jeannine, près de Gagnon, du minerai de fer extrait du gisement du lac Fire, I'exploitation d'un atelier d 'enrichissement secondaire et une usine de bouletage à Port Cartier. L 'objectif principal de SIDBEC-NORMINES est de produire six millions de tonnes de boulettes d'oxyde de fer par année, dont trois millions auront une faible teneur en silice afin de répondre aux exigences de la réduction directe. Les installations de SIDBEC-NORMINES sont adjacentes aux installations portuaires de la Compagnie Minière Québec Cartier, à l'est de la ville de Port-Cartier. L 'ensemble est conçu pour produire les deux types de boulettes avec deux circuits d'agglomération installes en parallèle. La production de concentré enrichi (68% Fe et plus) est obtenue dans une usine d'enrichissement utilisant le precédé de séparation magnétique hum ide ahaute intensite (separateurs Jones). À l'usine de bouletage proprement dite, on effectue Ie broyage du concentré et sa mise en boulettes sur disques; l'in duration des deux types de boulettes est obtenue sur deux chaînes d'agglomération Dravo dont chacune a une capacité annuelle nominale de trois millions de tonnes.

Jan 1, 1979

By R. W. Pugh, D. G. Bellow

"This paper will describe how cultivator shanks are made in one company and how the manufacturing was studied with a view to increasing product consistency and reducing manufacturing cost. The product: which is used extensively in the agriculture industry, was analyzed to determine which geometric parameters optimized its design and whether there was justification for the great variety of styles and shapes that are available in the market. Finally, an extensive series of field trials were undertaken which showed that it is advantageous to the manufacturer to be better aware of the loads and forces that his product is subjected to by another industry.IntroductionStelco maintains a Research Group for its Western Region operations headquartered in Edmonton, Alberta. Because of the small staff, a location that is isolated with respect to its Burlington, Ontario centre and a diverse set of processes and products, a university relationship has developed which may be different from that which would be developed at a larger integrated Steel Works. This paper outlines the type of cooperative studies carried out by Stelco Inc. in Edmonton and the University of Alberta. .To meet the research needs covering a wide variety of steelmaking processes and steel products produced in Edmonton would require more staff and equipment than the sales volume in the West justifies. The gap is filled by cooperation with university personnel. This cooperation has provided these benefits to Stelco Inc.:• access to specialized test equipment and a trained staff to operate it; and• assistance from experts in the areas of product testing and problem solving.Moreover, the close proximity of the university to the plant allows frequent meetings and ensures that practical solutions are developed and implemented. A good example of the ongoing university I industry relationship developed is the joint work on improving cultivator shanks."

Jan 1, 1982

By J. S. Redpath, W. R. Dengler

"A description of the equipment used and the electrical-mechanical problems encountered in sinking a deep shaft is given. This shaft is currently being sunk to a depth of 7,115 feet. Some of the features of the sinking plant are a 6,500-hp double-drum hoist, a Blair stage hoist, special high-capacity mucking gear, a Galloway stage, high-tensile stage suspension ropes and 12-ton sinking buckets.INTRODUCTIONIN THE EARLY FALL OF 1965, a contract was let, by The International Nickel Company of Canada, Limited, to Shaft Sinkers (Canada) Limited -J. S. Redpath Limited -Joint Venture, • to sink and equip the Creighton No. 9 shaft at their Creighton Mine proper-ty in Ontario. This paper describes the electrical and mechanical equipment used by the contractor on this project, and details various problems that were en-countered.The shaft itself is circular in section and is lined with monolithic concrete. Upon completion, it will feature twin skip compartments, a cage compartment, counterweight compartment, manway and pipe compartment. The finished diameter of this opening will be 21 feet and the shaft will bottom 7,115 feet below the collar. The present depth of the shaft (April, 1968) is 5,400 feet. The opening is concrete lined as excavation takes place and the steel will be placed in the shaft upon completion of sinking. Hoisting is done on rope guides which are part of the stage suspension system."

Jan 1, 1968

By K. Lundholm, M. Andersson, L. Nevatalo, Å. Holmström, L. Hedström

"Several copper deposits have the arsenic bearing minerals enargite (Cu3AsS4) and tennantite (Cu12As4S12). Since this mineral contain both arsenic and copper, it is not possible to remove the arsenic by selective flotation. Partial roasting is a method to clean the concentrate from arsenic and thereby produce a suitable raw material for the copper smelter. Also mercury is commonly found in copper bearing minerals. In the partial roasting process both arsenic and mercury are volatilized, while part of the sulphur is used as energy during the roasting. This gives a calcine suitable as feed to a smelter, much like an ordinary copper concentrate. A typical analysis of calcine would be: S content 18–22%, As content below 0.3%, Cu content – not affected, grain size – not affected. However, if the concentrate contains mercury, the mercury will be volatilized during the roasting process. This will lead to very high mercury contents in the subsequent process of sulphuric acid, unless the SO2-rich process gas is pre-treated by the Boliden/Norzink process that recovers mercury as calomel, Hg2Cl2. The volatilized arsenic in the gas phase can be recovered either by dry or wet methods. However, one problem is that arsenic also contaminates the fine grained calcine dust that is captured downstream in the gas cleaning system. The calcine dust contains valuable metals such as copper, gold and silver that needs to be separated from the arsenic. The ultimate aim is to stabilize the recovered arsenic as a compound with minimum impact on the environment and recover the valuable metals. By using wet recovery methods it is possible to selectively precipitate copper, gold and silver as sulphides while arsenic is kept dissolved in the liquid. The precipitated metal sulphides can be mixed with the calcine and sent to the copper smelter. The dissolved arsenic is sent to effluent treatment and is further treated in Outotec ferric arsenate precipitation process, where arsenic is precipitated as the stable compound basic ferric arsenate, formula FeAsO4·xFe(OH)3. All concentrates containing arsenic are unique and the process design of a roaster plant must be based on relevant process data. The process data is collected during tests in lab scale and pilot scale, where the influence of critical process parameters on the quality of calcine is studied. The ability to run tests both in lab scale and pilot scale is crucial to the development of the correct roasting process. Outotec is well equipped for this."

Jan 1, 2014

By A. J. Stapleton

"The Copper Mountain mine of Gaspe Copper Mines, Limited was brought into production in January, 1968.This paper describes the organization, scheduling and control of maintenance of large open-pit equipment, including 8-cu.yd shovels and 85-ton electric-wheel haulage units. The facilities for repair as well as maintenance are also described, including repair shops and field repair equipment. Maintenance costs are discussed and particular reference is made to tire inspection, records and costs."

Jan 1, 1969

By G. Cordingley, A. Mwanza

Lumwana is an open pit Copper mine located in the Northwestern Province of Zambia approximately 80 km west from the provincial capital of Solwezi, approximately 300 km northwest from the Copperbelt and 700 km northwest from the national capital of Lusaka. The mine has two major Copper deposits: Malundwe and Chimiwungo. Copper mineralization includes Chalcopyrite, Bornite and Chalcocite. In addition to Copper, these deposits also contain the undesirable element Uranium contained in vein hosted and disseminated Uranite. The processing plant was designed using conventional technologies: semi-autogenous grinding (SAG) and ball mill for grinding, and mechanical cells for rougher and cleaner flotation. Soon after commissioning in early 2009, it was recognised that two stages of conventional cleaning were unable to produce plant final Copper concentrates with the desired Uranium grades. Studies have shown that a significant quantity of liberated and fine Uranium particles (up to 80-90%) is recovered with the concentrate by entrainment. Lumwana Operations sought the use of the Jameson Cell technology after observing successful implementation at other sites in rectifying similar issues. In late 2009, Jameson Cell pilot-plant test work was conducted at the site and this quickly led to the installation of a full-scale B5400/18 model into the existing cleaner circuit. Inclusion of the Jameson Cell resulted in the plant being able to effectively produce clean and saleable concentrate with Uranium contents consistently below acceptable levels. Initially designed to be used as a cleaner scalper cell at the head of the existing conventional cell circuit, subsequent operational issues with the existing recleaner cells forced reconfiguration of the cleaner circuit and reintroduced the Jameson Cell for the recleaning duty. This paper reports the Lumwana Operation from the first two years of operation where it struggled to produce a saleable concentrate with Uranium grades below 150 ppm, which is the maximum allowable limit set out in the smelting contracts, to steps taken in the subsequent years to implement a satisfactory solution. The plant can now consistently produce a clean Copper concentrate with Uranium grades well below 130 ppm and the overall improvements implemented at site have seen the overall plant recovery improve by 1.3%.

Jan 1, 2014

By G. H. McKay

AT the Eagle mine, near Gilman, Colorado, where the Empire Zinc Company have installed an underground mill, transportation problems were comparatively simple. A railway siding on the Denver and Rio Grande railway is equipped with an unloading dock or platform at the portal of their service incline adit to the mill. This 18-degree incline is approximately 600 feet long from the unloading track to the head of the mill skipway. For the Big Missouri mill, upwards of 2,500 tons of material and equipment had to be trucked from tidewater at Stewart, B.C., a distance of 21 miles to the Big Missouri camp at elevation 2,800. From that point, this freight had to be moved either over or through the Big Missouri ridge, rising to elevation 3,450, to its final location 800 feet from the surface between elevations 2,150 and 2,350. Immediately after leaving the government dock at Stewart, the road crosses the International boundary line into Hyder, Alaska, and then follows a water grade for eleven miles along the lower stretches of the Salmon river. leaving the river, the road climbs for two miles before crossing back into British Columbia territory at Silver Heights, and then continues for another mile and a half to where the Big Missouri road branches off from the main road to the Premier mine. For a distance of four miles from the junction of the roads, the Missouri road is very narrow, with many sharp curves and with irregular up and down pitches and grades up to 25 per cent until it reaches the Summit. From there on, a fairly easy grade leads a mile and a half to the end of the road on Joker Plats. In winter, the last stretch of road is subject to heavy snow drifting, especially through a narrow funnel-shaped gulch, known as 'The Gap', where the snow may pile up to a depth of over twenty feet.

Jan 1, 1938

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