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By Stephen Zorn

INTRODUCTION The process of financing mining projects in developing countries has changed greatly in the past 15 years. New methods of financing, notably the use of syndicated Eurocurrency project loans, have appeared, and direct equity financing by transnational mining corporations has become less significant. These changes are of particular importance to developing countries which have many mineral deposits still awaiting development, or even discovery. If major new mines are to be financed, host governments will need to obtain more sophisticated information than has hitherto been widely available as to the various sources of finance currently available and as to possibilities for innovative approaches to financing, such as the combination of several different kinds of financing in a single package. This paper reviews the major sources of mining finance potentially available to developing countries and highlights those problems in obtaining adequate financing that developing country producers have begun to experience in the last few years and that are likely to persist through the 1980s. Section I surveys the major types of mining finance; section II reviews specific financing problems, including (a) the withdrawal of the transnational corporations from developing countries, (b) inflation and the size of new projects; (c) developing country indebtedness, and (d) competition among projects in different countries. SOURCES OF DEVELOPING COUNTRY MINING CAPITAL1/ There is a wide range of financing mechanisms which are potentially available to developing countries with economically viable mining projects., Moreover, these financing mechanisms have not been fully exploited by developing countries, and more aggressive pursuit of financing by the governments of these countries may well reveal greater possibilities in respect of any particular project than may initially have appeared. However, virtually all the funds available from these sources are available only to projects which meet the standards of viability acceptable to lenders and others in the business community. If a project does not, for example, promise to generate a discounted cash flow rate of return of at least 15 per cent on total funds employed, or if it does not appear likely to generate sufficient cash flow in the early years of production to cover debt service requirements with a comfortable margin in reserve, most of the sources of financing will not be available. Only where a government has its own financial surplus (as in the case, for example, of the industrialization program of the Saudi Arabian government) can it effectively undertake projects which do not satisfy the definition of economic viability that is accepted at any given time by the worldwide financial community. Internal Sources In Developing Countries Internal financing capacity in developing countries is restricted to a relatively small number of countries - typically those large enough to support a well-rounded industrial sector, in which mining is only one of a number of dynamic industries. While there are large mining companies in certain other countries, the ability of such companies to finance new projects (or even, in some cases, to generate the cash necessary to maintain existing levels of production) is highly problematical. Within developing countries, the possible sources of internally-generated mining finance are the following: (1) state-owned enterprises; (2) private capital; (3) the banking system, and in particular those financing agencies that have a special involvement with the mining sector; and (4) direct budgetary appropriations.

Jan 1, 1985

By Leonard Sugin

Recent changes in the field of ore and bulk commodity handling has forced a reevaluation of previously conceived notions. When vessels were small, and sources of raw material were reasonably close to areas of need, the role of the shipping terminal was of secondary importance. Now terminals must be built to take advantage of the economic benefits of the supercarriers. The shipping rates of the 80's will not be determined by the 60,000 DWT or even 150,000 ton capacity bulk carrier, but rather by the supercarriers in the 250,000 DWT class or larger. When the Suez Canal was closed, the shipping industry took a hard look at the economics of the large bulk carrier. Naval architects overcame the problems and successfully designed large supertankers, which today are plying the seas in excess of 350,000 DWT. Orders have been placed for tankers of 480,000 DWT. The shippers of dry bulk materials are now coming to similar conclusions about the economics of supercarriers. As of today, over 40 orders have been placed for vessels in the 250,000 DWT class, representing an investment of over 11/2 billion dollars, and many more are being considered. These vessels are being designed as combination ore/oil (0/0) or ore/bulk/oil (OBO's) carriers. The oil industry has seen the need for terminals which can accommodate these supertankers. The dry bulk shippers, and particularly ore shippers, must now act.

Jan 1, 1972

By E. James Quinn

Solvent extraction technology using EHEHPA (2-ethylhexyl phosphonic acid, 2-ethyhexyl mono ester) is the norm for industrial separations of rare earth elements. This process has some shortcomings, including a large number of stages compared to most SX processes and high acid requirement for stripping of the heavy rare earths. In this work, we examine a number of alternative mixed solvent extraction systems: (i) Mixtures of organophosphonic and phosphinic acids such as EHEHPA/Cyanex 272 or Cyanex 572; (ii) Ionic liquid mixtures of EHEHPA with quaternary ammonium chloride (Aliquat 336); and (iii) Mixtures of carboxylic acids for yttrium/lanthanide separations. We discuss and compare the efficacy of these systems with reference to the Nd/Sm separation, which is of industrial significance. Based on the extraction chemistry and the use of modelling tools to define the counter-current solvent extraction circuit, we present a techno-economic analysis of a separation plant and discuss the impact of various solvent systems on the capital expenditure (CAPEX) and operating costs (OPEX).

Conditional simulation can be used to determine the probabilities of block iron-grades being above selected cut-offs. However, there are much faster alternatives that can produce acceptable results. In this paper blasthole data from a selected area of Joffre Member hosted ore of the Brockman Iron Formation at the Mt Whaleback orebody is used as the basis of a case study to assess alternatives to simulation. Iron grade, in per cent, is interpolated from a blasthole dataset into a block model using ordinary kriging. Samples are then removed from this blasthole dataset to produce data subsets. A complete distribution of iron grades for points or blocks is obtained utilising the data subsets and the following techniques: conditional simulation, median indicator kriging, the probability from conditional expectation and confidence intervals attached to the estimation of blocks in the framework of the discrete Gaussian model. The complete blasthole dataset is considered to represent the true iron grades at sample point support while the ordinary kriging estimate derived from these samples is considered to represent the true block grades. The distributions obtained from point estimates, block estimates and simulations are compared to each other and to the true estimates of iron grades using graphs and statistics. The conditional expectation technique reproduced the results obtained from conditional simulation extremely well and it is a viable alternative to simulation at point support. At block support the confidence intervals technique reproduced the results of the conditional simulation more closely than the median indicator kriging and in the data subsets tested the confidence intervals technique actually reproduced the true grade distribution more closely than the conditional simulation.

Jan 1, 2005

By Francis J. Kiessling

Energy and the conversion of potential energy into alternate forms is becoming a topic of household conversation for a larger segment of the world's population as mankind's desire for products derived from the vast array of technological developments continues to expand. The world's use of steel and the high energy consumption related to the production of steel promotes an awareness of the limitations of existing technology and a search for more economical alternates. Terminology such as (BF) Blast Furnace, (BOP) Basic Oxygen Furnace, (EAF) Electric ARC Furnace, (DR) Direct Reduction, (DRI) Direct Reduced Iron and (FC) form coke is becoming commonplace as alternates are being sought to alleviate the energy crunch. Coke production by various methods was developed as early as the seventeenth century in Europe to replace the disappearing hardwood forests that supplied the initial blast furnace fuel in the form of charcoal. In 1880, the Semet Solvay by-product coke oven design was introduced to the United States at Syracuse, New York, to supply coke for use in the production of soda ash, coke oven gas and its by products as the primary source of many organic processes. Although the Semet Solvay coke oven has not been marketed for decades, these coke oven batteries are in use today producing metallurgical coke, coke oven gas, and related by-products.

Jan 1, 1980

By R. L. Loofbourow

Most wet mines face unquantified water costs as well as the obvious wing costs. Both kinds of cost are multiplied by work at greater depth and by higher unit prices. This intensified challenge merits renewed or perhaps altogether new response. Any practicable way to reduce inflow tackles both obvious and unquantified costs. Ten groups of possible ways to do it are cited. Most have been demonstrated. Two are known from work other than mining. Surely new means can be found. Here are opportunities for operators of wet mines!

Jan 1, 1980

By Richard R. Marston, Scott Herr, Steve Pries, Donald L. Jr Ewart

The purpose of this paper is to identify and examine alternative methods (other than shovel/truck stripping) of effecting the pre-stripping of consolidated overburden, in conjunction with dragline stripping operations, at surface coal mines. The analysis will be case study oriented with practical mining considerations and comparative economics being evaluated. Alternatives that will be examined include blast casting, dozer push, and multiple pass dragline sequences.

Jan 1, 1992

By D. Campos, J. M. Macedo, S. Chadwick

The incorporation of low cost technology transfer to increase the ability of locals to acquire and maintain long term employment are key ingredients for sustainable industrial development. Alcoa’s Alumar plant on the island of Sao Luis is the largest and most modern refinery/smelter complexes in northern Brazil. The plant has one of the most advanced Environmental, Health, and Safety management process in the aluminum industry. Technical assistance, training and financial support were made available to Alumar to address social sustainability issues. Through several programs led by employees on a voluntary basis and applying intensive and extensive training programs, Alumar has enabled local people to develop skills on agriculture and land management, wastes minimization, small business development and administration, all based on sustainable development and social responsibility concepts.

Jan 1, 2004

By W. D. Elston, A. E. McLaughlin, G. B. Hampton, W. L. Barham, J. F. Murphy, W. H. Cundiff, J. W. Mulloy, R. G. Breuer, J. W. Shaffer

Introduction Alumina (aluminum oxide) is the material from which all the world's aluminum is produced. In the Western World, all the alumina is made from bauxite by the Bayer process. In the nearly 150 years since aluminum was first isolated by Oersted, the metal has grown from a laboratory curiosity to a position of major importance in the world's commerce. In terms of annual production rates aluminum is first among nonferrous metals. Oersted's discovery-reduction of aluminum chloride with potas¬sium amalgam-was improved on by Ste. Claire Deville, whose so¬dium amalgam reduction of aluminum chloride led to the commercial production of aluminum in France in 1855. Ste. Claire Deville's method prevailed until 1886 when Charles Martin Hall and Paul T. Heroult each invented a process for the production of aluminum by the electrolysis of alumina dissolved in molten cryolite. The inven¬tion by Karl Josef Bayer in 1888 of an economical process for making very pure aluminum oxide (alumina) from bauxite established the necessary link between known ores and the Hall-Heroult reduction process. Bayer's work completed the scientific base-the ore bauxite refined to alumina by the Bayer process (U.S. Patent No. 515,895), the alumina reduced to aluminum in the Hall-Heroult cell (U.S. Patent No. 400,766--upon which today's aluminum industry is founded. Small-scale production of aluminum in the U.S. began in 1888 utilizing the Hall cell. By 1903, bauxite properties and a Bayer process refining step had been incorporated into the production activities. On this base the aluminum industry in the U.S. has grown at an annual compounded rate of 15%. Since 1946 the annual growth rate has been 10%.1 The rapid growth of the industry is the result of many factors among which are the existence of widespread bauxite ore deposits; a sound and economic production technology; and the properties of the metal-lightness, strength, ductility, good electrical and heat con¬ductivity, and pleasing appearance, which lead to ever greater de¬mands for aluminum in an industrializing society. At the inception of the industry, the only market that could be found for aluminum was in the production of cooking utensils. How¬ ever, the rapidly accelerating industrial and technological development of the Western World soon created new needs for aluminum, and today aluminum is marketed in a broad range of industrial, commer¬cial, and consumer applications. The principal uses for aluminum are:' building and construction, 22%; transportation, 18%; electrical, 13%; packaging, 11%; consumer durables, 10%; machinery and equipment, 7%; other, 19%. The 1974 production of primary alumi¬num in the world was 14.5 million short tons, which at an approximate ingot price of 40¢ per lb puts a value of $11.6 billion on the industry product prior to fabrication. While aluminum is widely distributed in the earth's crust and is a major constituent of many rocks and soils, to date no method of extraction of aluminum from such nonbauxite material has been brought to commercial practice in the Western World. In the USSR alumina is produced by the complex processing of nepheline syenite, but elsewhere all commercial production of alumina is from bauxite. A brief discussion of recent developments and other processes for alumina is included in the subsection "Other Processes for Alumina," page 19-15. In early 1973, a major U.S. aluminum producer announced the successful development of processes for the production of aluminum from aluminum chloride. This achievement promises to exert a major influence on the future of the aluminum industry. In the initial com¬mercial application of this new technology, Bayer alumina will be chlorinated, and the aluminum chloride then reduced by electrolysis. Important claims for the new processes are lower energy requirements (one-third less than obtainable in Hall cells) and reduced labor costs. Capital costs are said to be no greater than for conventional plants. While the announced intention is to produce the aluminum chlo¬ride from Bayer process alumina, the new chloride reduction process will eliminate the other raw materials, carbon and fluorides, required by the conventional Hall cells. The electrodes in the chloride cell will not be consumed on the reduction process and the electrolyte will have, as the name indicates, a chloride rather than a fluoride base. 2. Bauxite Definition and Origin. Bauxite is a naturally occurring raw material composed principally of a mixture of one or more of the hy¬drated aluminum oxide minerals gibbsite (Al2O2 3H2O), boehmite (Al2O3 H2O), and diaspore (Al2O, - H2O), and impurities of silica, iron oxide, titania, and other various elements in trace amounts. It is an end or near-end product of chemical weathering. Depending on the amount of iron impurities, the color of bauxite varies from dark red and brown to pink to white. Some bauxite is finely divided, free digging earthy material, while other forms are dense and rocky, requiring explosives in mining. Many gradational forms exist. It is one of the most variable of mineral raw materials in chemical composition and physical appearance. It is generally believed that bauxite deposits resulted from intense chemical weathering of aluminum-bearing rocks or formations under tropical or subtropical conditions with alternating wet and dry sea¬sons. Topographic conditions were favorable for drainage and the in-situ accumulation of aluminum, iron, and titanium oxides. There was low to moderate topographic relief with a minimum of erosion during long quiet periods in earth history.2 The occurrence of bauxite is widespread and it has been found on all continents except Antarctica. Production was reported from 27 countries in 1974, at which time total world production was over 79 million metric tons. Of this production 76% was from seven coun¬tries-Australia, Jamaica, Surinam, Guinea, USSR, Guyana, and Greece-which ranked in that order of production. In Table 1 are shown typical compositions of bauxite from some

Jan 1, 1985

By Alaelson Vieira Gomes

Amostras de alumina APC-2011 SG com nióbia, sílica e magnésia foram sinterizadas a 1400 °C/3h, a fim de serem avaliadas suas propriedades balísticas. A adição de nióbia foi de 6% e 8% em peso; sílica foi de 0% e 0,8% em peso; e magnésia no teor de 0% e 0,15% em peso. As amostras sinterizadas foram caracterizadas medindo-se dureza, densificação e velocidade após o impacto.Os ensaios balísticos foram efetuados colando discos cerâmicos em chapas de aço e então submetendo o alvo a impacto usando projetil 7,62 mm de um fuzil com uma distância de tiro de 5m. A energia absorvida pela fragmentação dos discos cerâmicos foi estimada pela velocidade residual.As superfícies de fratura das amostras foram observadas por microscopia eletrônica de varredura. Os resultados foram analisados.Verificou-se que a adição de quantidades elevadas de nióbia à alumina com presença menos significativa de sílica e magnésia pode incrementar a presença de fase vítrea nos contornos de grãos da alumina, com efeito nas propriedades do material para uso em proteção balística.

Oct 30, 2017

By Charles W. Bauer

Most of the aluminum produced in the United States today is derived from foreign bauxite deposits. Earth Sciences, Inc. initiated a program to evaluate domestic non-bauxite sources for alumina in the 1960's. In the initial evaluation of alunite, domestic resources were not sufficient to support development. An exploration program led to the discovery of large deposits of alunite in Utah and several other western states. Identification of alunite is difficult as both its physical and chemical characteristics are similar to the minerals with which it is associated. Most of the significant alunite deposits in the western United States are replacement type deposits. These deposits have formed as a result of hydrothermal alteration of volcanic, sub-volcanic, and igneous rocks. Typical alunite deposits contain between 30% and 50% alunite between 50% and 70% quartz with minor amounts of other minerals. Four mineralogical zones are common in these systems. They include a siliceous zone, a quartz-alunite zone, a kaolinite zone and a chlorite-montmorillonite zone. Total U.S. reserves of alunite were estimated at 20 million metric tons (at 30% alunite) by the U.S. Bureau of Mines in 1941. Here recent work by the U.S. Geological Survey estimates reserves of 252 million metric tons and potential resources at 1.4 billion metric tons. Reserves and resources estimated for 23 properties on which field work has been done by ESI are considerably higher. Most of these properties have reserves and potential resources of several hundred million metric tons. The combined demonstrated reserves at these properties are estimated to be about 650 million metric tons. Inferred reserves are estimated at 2.5 billion metric tons and potential resources at 8 billion metric tons. It appears that the U.S. has sufficient reserves and resources for alunite to be considered as a potential non-bauxite source of alumina.

Jan 1, 1980

By Karim El-Ouassiti, Marc Minville, Stéphane Chabot, Claude Bazin, Valérie Ouellet

"Alumina is the main source of aluminium and it is extracted almost exclusively from bauxite ores found in the Southern hemisphere. Clays are abundant minerals that contain from 15 to 40% w/w of alumina from which it can be extracted by various processes. This paper reviews the processes used for the extraction of alumina from clays and discusses results obtained with a clay sample from the Murdochville area in the Quebec Province. The application of a conventional process to this clay did not yield an acceptable recovery although smelter grade alumina was produced. A modification to the process allows increasing alumina recovery from 85% to more than 92%. The application of the improved flow sheet to other alumina carriers failed to yield comparable recovery, showing that an optimum processing path for the recovery of alumina should be found for individual clay materials.INTRODUCTIONMost of the aluminium smelters are fed with alumina extracted from bauxite found in the Southern hemisphere. Bauxite is processed by the Bayer process that uses a caustic leach of the ore. In the middle of the century, the US Bureau of mines, motivated by the fear of an alumina delivery disruption, conducted several research projects aiming at producing alumina from non bauxitic ores. These projects led to the development of various acid leaching processes (Habashi, 1993). The sulphuric and hydrochloric acid leaching processes were brought to pilot plant evaluation (Bengtson, 1979), while nitric and other leach liquors were tested in the laboratory (Phillips and Wills, 1982; Habashi, 1983). Although clays are abundant and inexpensive minerals, the studied processes remained uncompetitive with the alumina extraction from bauxite (Hudson, 1987 page 42; Peters et al., 1962) for which reserves are estimated to support alumina production for the next 50 years (Oye et al., 1999). On the other hand, the local extraction of alumina from clays could significantly reduce the transportation costs of alumina to smelters and provide an alternative source of alumina supply from the Southern hemisphere countries. Also, the extraction of secondary products for some types of clay (Nasyrov et al., 1999) containing significant amounts of potassium and sodium could provide an additional return that may improve the economics of alumina production from clays."

Jan 1, 2005

By H. H. Murray

Abstract. World reserves of bauxite are abundant. Domestic reserves are limited and as a consequence the United States must rely on foreign suppliers for over 90 percent of its bauxite. Nationalization of many bauxite mining operations, levying of higher taxes, increased production and transportation costs, and attempts to create a uniform market price combined to place the United States in a vulnerable position. Alumina from kaolin, alunite, anorthosite, and oil shale have-been-or are being evaluated. World bauxite reserves are increasing and attempts to establish a uniform price have failed; therefore, it may be many years before domestic non-bauxite sources of alumina can compete with imported foreign bauxite.

Jan 1, 1980

By John Ward Smith

Dawsonite bearing oil shale of Colorado's Green River Formation offers a unique and vast (6.5 billion tons of Al2O3) resource of easily extractable alumina. The processing methods required by the thermal reactions dawsonite and its oil shale carrier also require production of shale oil, soda ash, and nahcolite as marketable coproducts. These production methods are presented. The alumina production process is contrasted with the Bayer process to describe technical advantages of extraction of alumina from oil shale which may offset the problems associated with processing a relatively lean ore. While alumina production from oil shale requires development of new technology, the technical problems appear solvable. Only the political problems arising from the now onerous and completely unnecessary Federal oil-shale withdrawal appear less solvable.

Jan 1, 1980

By John Ward Smith

Dawsonite-bearing oil shale of Colorado's Green River formation offers a unique and vast (more than 5.9 Gt of A120 j) resource of easily extractable alumina. The processing methods required by the thermal reactions of dawsonite and its oil-shale carrier also require production of shale oil, soda ash, and nahcolite as marketable coproducts. These production methods are presented. The alumina production process is contrasted with the Bayer process to describe technical advantages of extraction of alumina from oil shale which may offset the problems associated with processing a relatively lean ore. While alumina production from oil shale requires development of new technology, the technical problems appear solvable. Only the political problems arising from the now onerous and completely unnecessary federal oil-shale withdrawal appear less solvable.

Jan 1, 1982

By Errol D. Sehnke

This U.S. Bureau of Mines report provides detailed information on worldwide alumina production capacity by plant and country. The information was compiled from a variety of domestic and international sources and was based on information available to the Bureau through December 31, 1993. Capacity data represent announced installed and planned capacities and do not necessarily reflect a Bureau of Mines judgment of actual plant operating levels or timing of planned expansions, The year-end capacity is the ?nameplate" capacity or estimated production capacity, whichever is larger.

Jan 1, 1993

By N Murthy

Alumina is a major impurity in Australian iron ores and as the higher grade ores become depleted there will be a stronger focus on treating lower grade haematite/goethite ores and developing suitable beneficiation techniques to reduce the alumina content. High alumina in iron ore is deleterious in that it can:• produce slags with lower desulfurising capacity,• reduce sinter/pellet strength and quality, and• produce higher slag volume and increase slag viscosity.Meeting iron ore quality specifications for alumina by blending ore from different sources will eventually be insufficient. Hence, innovative flow sheets based on new and commercially available technologies will be required. Their advantages and disadvantages, the testing methodologies and the challenges and diffi culties involved in reducing the alumina content of iron ores are presented and discussed.

Jul 11, 2011

By Marcos Aurélio S. Costa, Nilton F. Nagem, Andreia B. Henriques, Herman S. Mansur, Alexandra A. P. Mansur, Antonio E. C. Peres, Valeria G. Silva

The superfine material generated in the Bayer process was used in one innovatively way as a precursor to geopolymerization techniques because of the presence of Gibbsite. Gibbsite can play a role in system adjustment because of the SiO2/Al2O3 ratio. Furthermore in the geopolymeric system it was studied the influenceof the additives such as kaolin, metakaolin and sodium trisilicate in an alkaline media. Others conditions to form the geopolymer were also evaluated such as solid/liquid ratio, SiO2/Al2O3 ratio and total alkaline. The raw materials and geopolymeric products were characterized by several techniques e.g. XRD, DSC, FTIR and SEM. Through the FTIR technique it was observed an increase in intensity and bandwidth in the region centered at 1010 cm-1, which is related to the asymmetric vibration Si(Al)-O, this is an indicating of the possible geopolymer formation This broadening of the band promotes a relative disappearance (overlapping) peaks at 965 and 935 cm-1 associated with raw material (ESPDust).

Jan 1, 2015

By T. Kumaresan

The Bayer process used for refining bauxite to smelting grade Alumina serves as the linchpin of the Aluminum production industry worldwide. Even though the process is well established, the presence of impurities in the liquor affects the quality of product and imposes a major economic cost on the industry. This review article focuses on the issues pertaining to Gibbsitic (Al2O3.3H2O) precipitation circuit. The comprehensive review provides a basic understanding of the aluminum trihydrate precipitation and agglomeration phenomena. Crystal growth rate and agglomeration play a significant role in determining the output PSD of agglomerates. Hence, the effect of certain thermodynamic and hydrodynamic parameters along with the impact of impurities (oxalates, aldols, acids etc.) and additives on hydrate growth has been reviewed.

Sep 1, 2012

By I. Lackey

In 2004, Zinifex Budel Zink commenced testing with the objective to increase the precipitation of aluminium in the iron purification stage of its hydrometallurgical zinc circuit, without the use of expensive reagents. Findings from the literature applied to the leach circuit at Zinifex Budel Zink demonstrated that aluminium removal from the leach circuit could be increased by lowering the ferric concentration and acidity in the vessels where jarosite precipitation occurs. An associated increase in copper precipitation was mitigated by limiting the extent to which the ferric concentration was lowered in the vessels where jarosite forms and lowering the ratio of copper to aluminium in the solutions entering these vessels.

Jan 1, 2006