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By A. J. Naldrett

"Sulphurization of peridotite, that is 'to say reaction between sulphur from an external source and iron and nickel in the silicate minerals of the peridotite or in partially consolidated magma, is believed to be the me-chanism by which the small iron-nickel sulphide deposits associated with the ultrabasic rocks of the Porcupine district have formed.The pyrrhotite-pentlandite ore at the Alexo mine, Dundonald township, is localized by a shear that closely follows the lower contact of a peridotite lens. In the past, to account for this orebody, the magmatic segregation hypothesis has been advanced on the basis of textural evidence and the presence of the sulphides at the base of the lens. The nickel sulphide de-posits of the Porcupine, however, are not characteristically found along the basal contacts of bodies of peridotite. Furthermore, this study has shown that textures formerly thought indicative of magmatic segregation have been formed in certain deposits by the selective replacement of silicates by sulphides.At the Alexo mine, very minor amounts of pentlandite and heazle-woodite (Ni3S2) occur in the peridot-ite hanging wall adjacent to the ore. These sulphides are interpreted as having formed by sulphurization, the sulphur involved coming from the pyrrhotite-pentla.ndite ore emplaced along the shear. This reaction aureole raises the question of the role of sulphurization in the formation of the main mass of the sulphide ore. The very localized equilibrium that has been found to exist between sulphides and silicates in deposits throughout the area, the results of nineteen sulphur isotope determinations, and the abundance of pyrite and pyrrhotite in the volcanic country rocks of the Porcupine indicate that these deposits were formed by sulphurization rather than magmatic segregation."

Jan 1, 1966

By Soumitry J. Ray

Poor visibility of powered industrial vehicles, such as forklifts, used in industry is often the cause of accidents that include pedestrians. Current standards allow up to 20 % non-visible regions for forklifts where measurement of these regions is performed by using lamps. A collaboration of research organizations, including National Institute of Standards and Technology, Georgia Institute of Technology (NIST), and Direct Dimensions, has been evaluating advanced methods for measuring a forklift operator?s visibility. These methods can potentially improve visibility standards. They can also help forklift and sensor manufacturers to determine (1) how visibility-assist sensors and algorithms can be designed and (2) where sensors can be mounted on forklifts. This paper includes explanation of visibility measurement experiments performed and results, associated language suggested to standards organizations, and a prototype design for measuring the visibility of forklifts automatically.

Aug 1, 2013

By Colleagues from Process and Operation departments, Guy Chevalier

"QCM's pellet plant, located in Port-Cartier, Quebec, produces up to 8.6 million tons of iron ore pellets annually. Four different types are produced: three for blast furnace operations and one for direct reduction furnaces. The paper presents the scientific approach that led to the installation of new process equipment to improve the reducibility of direct reduction pellets (DR pellet). The findings, the equipment selection and some post start-up modifications are presented.This low silica DR pellet is used in Midrex and HyL shaft furnaces. A good DR pellet has to meet strict chemical, physical and metallurgical specifications. An important metallurgical property is its ability to release oxygen when exposed to reducing gases. Considering that the market for DR pellets is expanding and being aware that reducibility is critical for our clients, a program to improve the latter was undertaken. Test work showed that one factor which has a negative effect on reducibility is the proportion of particles larger than 75 microns. Knowing that the best way to reduce the amount of coarse particles was to close our open grinding circuits, we began evaluating the most suitable classification equipment applicable to our process operations. We settled on hydro-classifiers based on their very sharp cut and their low operating costs. In light of the hydro-classifiers performance it was also decided to replace the hydro-cyclones of an already closed circuit.INTRODUCTIONAt the Québec Cartier Mining pellet plant, continuous improvement programs are aimed at increasing levels of consistency and improved chemical, physical and metallurgical properties. This is being accomplished while still maintaining pellet plant production volumes to satisfy market demands.QCM produces three types of pellets for blast furnace use: acid pellets, designated as ""BHF"", fluxed pellets, designated as ""BAF"", and low silica fluxed pellets, designated as ""BSA"". For direct reduction, a low silica acid pellet or DR pellet, designated as ""BBS"" is produced. This low silica DR pellet is used in Midrex and HyL shaft furnaces.The demand for DR pellets has been increasing during the last few years and is believed to continue so in the future. Wanting to be present in this growing market QCM found that it would be essential to work at improving its DR pellets quality. Efforts have been focused on improvements in three areas: SiO2 reduction, elimination of sticking and increasing reducibility. Improvement programs have begun with laboratory research followed by plant trials and full-scale implementation as a cooperative effort among QCM, COREM, and key customers."

Jan 1, 2002

By W. E. Halle, G. J. S. Govett

"The Institute of Applied Geology, Manila, Philippines, is jointly sponsored by the University of the Philippines, the Philippines Bureau of Mines and the United Nations Development Programme (Special Fund). It provides, in its fourth year of operation, an interesting example of international cooperation in mineral development. Objectives include: (1) the training of mining engineers in modern techniques of mineral exploration; (2) assisting government and industry in discovering new ore deposits; and (3) providing the basis for the establishment of an economically oriented graduate school of geology at the University, the first of its kind in the country. Training of engineers requires roughly one full year, which is divided between academic study and actual field practice. Lecture and laboratory instruction include courses at university level designed specifically to up-grade those aspects of the geological sciences that are required by mining engineers now qualifying as mineral exploration engineers-economic geology, applied geochemistry, geo-physical exploration, petrology and structural geology. The field training involves direct participation in actual mineral exploration projects arranged with the co-operation of the Bureau of Mines and private interests engaged in mineral development and production. The system works well in practice, and the Institute staff and trainees were responsible for outlining new evidence of economic mineralization. It is also apparent from the application of the exploration methods available to the project -geological mapping, air photo interpretation, magnetic, electric, electromagnetic, self potential and gravity surveying as well as geochemical prospecting -that, under the humid, tropical, mountainous conditions in which the practical program was conducted, air-supported geochemical prospecting with attendant reconnaissance geological mapping affords the most economical and effective approach to mineral exploration for at least some of the deposits characteristic of the region."

Jan 1, 1968

By M. Rafieazad, P. Fathi, M. Mohammadi, A. M. Nasiri

This study examines the impact of low-temperature heat-treatment cycles on microstructure and corrosion performance of Direct Metal Laser Sintered (DMLS) AlSi10Mg_200C alloy. It is known that the morphology and the size of eutectic silicon are the two most critical factors affecting mechanical properties of the AlSi10Mg alloy. Although high-temperature heat-treatment cycles are common practice for the strengthening of the cast Al-Si-Mg alloys, in the case of DMLS fabricated AlSi10Mg alloy, high-temperature solutionizing and low temperature annealing cycles result in mechanical properties degradation primarily due to a dramatic decrease in the solubility of Si in the super-saturated a-Al matrix of the as-printed alloy. In this study, low-temperature heat-treatment cycles that only promote precipitation of Mg2Si accompanied by the interruption of the silicon network were investigated. SEM and XRD analysis were utilized to observe the evolution of microstructure after different annealing heat-treatments at 200, 250, 300, and 350°C for 3 h. Increasing the heat-treatment temperature contributed to the Si networks interruption and an increased precipitation of Mg2Si phase. Low-temperature annealing from 200 to 350°C was found to promote the homogeneity of the microstructure characterized by a uniform distribution of eutectic Si in ??-Al matrix. Additionally, in order to investigate the impact of different heat-treatment cycles on corrosion resistivity of DMLS-AlSi10Mg_200C, the potentiodynamic polarization testing and electrochemical impedance spectroscopy were performed in a 3.5 wt.% NaCl solution. The results revealed more uniformly distributed pitting attack on the corroded surface by further increase in the annealing temperature, which was attributed to the uniformity of Si dispersion. In comparison, low temperature annealing at 200°C led to a penetrating selective corrosion attack along the melt pool boundaries, resulting in a higher corrosion rate associated with the lower absolute value of impedance of the protective passive film on the surface.

Jan 1, 2018

By Marc Boyer

Modern civilization, modern industry, and modern standards of living, bring into, sharp relief the present-day essentiality of metals .and minerals, and the wide and diversified use which is made of them. Any attempt, therefore, to appraise the international situation today must take into consideration the metal and mineral resources of the world. If, as some believe, the world is divided into two distinct ideologies of political belief, one unalterably opposed to the other, so that armed conflict is unavoidable, then the question of national strength in mineral resources becomes of paramount importance. If, however, it is possible to avoid war by raising the standard of living in the underdeveloped ?areas of the world, thus ensuring all peoples everywhere against the dread spectres of starvation and disease, then the development of the world's mineral resources assumes even greater importance. Today it is difficult to realize that, prior to the industrial revolution in Great Britain, only a few of the metals and minerals now in common use entered into the everyday life of the people. !iron and steel, copper, lead, tin, and zinc, usually in .their unalloyed forms, along with the more common industrial minerals, were those most widely used, and then only in limited amount. With the advance of technology in metallurgy and in fabricating skills, the list of commercial metals and minerals has expanded until today they number more than eighty.

Jan 1, 1951

By F. Chiesa

Forty aluminium A356 castings were poured on a Low Pressure Permanent Mould industrial machine, 500x700mm in platen size. The 152mm wide casting comprised three steps, 25mm, 13mm, 6mm in thickness and a 2.5mm overflow which allowed to assess the thin wall capability of the process. The casting campaign, which produced 40 parts, allowed to test the influence of various production parameters including the time of application of the pressure in the crucible, artificial cooling of the mould and casting rate. The thermal history in the mould was recorded over the 40 cycles, which allowed to construct a reliable thermal model of the mould/casting assembly. The metallurgical quality of castings representative of the various conditions was assessed in the 25mm, 13mm and 6mm plates. This included measuring the level of microporosity, the dendrite fineness (DAS), along with the tensile properties in the T6 condition. The radiographic quality per ASTM E155 was also determined. Modelling filling and solidification allowed to verify the validity of the predictions based on available relationships relating microporosity, secondary dendrite arm spacing (DAS) and local tensile properties (Quality Index, Q) to the local thermal solidification parameters.

Jan 1, 2007

By Randy McMeekin, Chris Twigge-Molecey, J. Peter Blake

The business objectives of a metallurgical project determine targets and constraints, such as the range of products, production capacities, in-service dates, and capital and operating cost parameters. Permitting is usually left to the project team, as are decisions regarding site location, technology, and construction approach. Success requires an orderly methodology, represented in this book by front end loading (FEL) phases: FEL1 examines several alternative approaches; FEL2 ranks and eliminates less economically or technically attractive options; and FEL3 develops the preferred option to the point of major permit completion, with defined scope, schedule, and cost to submit for approval to proceed with implementation in FEL4. Working through FEL1, FEL2, and FEL3, the project definition improves, estimates become more accurate, and project risks are reduced. The project design basis at the end of FEL3 is the control document for project implementation in FEL4.

Jan 1, 2015

By R. Glenn Madill

Western Canada is defined, for the purposes of this paper, as that part of the Dominion bounded approximately by the 95th and 141st meridians of longitude and the 49th and 80th parallels of latitude. It is comprised of Manitoba, Saskatchewan, Alberta, British Columbia, Yukon, and that portion of the Northwest Territories lying to the west of the 95th. meridian. The first magnetic observations made in Western Canada were in the interests of navigation by sea. Observations were made by Captain Middleton in Hudson bay at Churchill and York Factory in 1725, and along the Pacific coast by Captain Cook in 1778 and Captain Vancouver in 1792. The first systematic magnetic survey in Western Canada was made between 1819 and 1826 by Sir John Franklin in his widely distributed explorations. It is of interest to find that while the first magnetic declination observations made in Hudson bay and along the Pacific coast were purely in the interests of navigation, the next investigations, which were made in the Western Arctic, included measurements of inclination and force with those of declination. There was a valid reason for this more complete research into the magnetic field as the construction of declination charts depended on the position of the north magnetic pole. Halley promulgated a theory 1683 that " the globe of the Earth may be regarded as one great magnet, having four magnetic poles, two of them near each pole of the equator, and that in those parts of the world which lie near any of those magnetic poles the needle is chiefly governed thereby, the nearest pole being always predominate over the more remote" . The position of a magnetic pole may be defined as a point where the inclination is 90 degrees and the horizontal force zero. It is obvious that the position cannot be' defined by declination observations alone since, for some distance from the magnetic pole, .the horizontal force is too weak to give directive force sufficient to effect the pointing of a compass.

Jan 1, 1948

By O. D. Maurice

"This paper will essentially update the information that is already known and published on the limestones of the Province of Quebec. The excellent report by M. F. Goudge (1935)m is difficult to improve upon and the areas of limestone quarrying are generally the same as they were at the time of Goudge's report. Our knowledge of the limestones of Quebec has been improved considerably in recent years by the publications of T. H. Clark, 2 who, since 1938, has been mapping and reporting on these lime-stones and has discussed their stratigraphy, their structural features, their history and their economic value. One economic aspect is the presence of natural gas in these formations and the possible occurrence of oil. A total of 150 test holes had been drilled to a depth of more than 500 feet by the end of 1967 and, in addition, at least 256 more shallow holes had been put down in the St. Lawrence Lowlands. The information from these test holes has greatly improved our knowledge of the thickness and extent. of the various formations of Paleozoic limestone and shale in Quebec.This paper will then review briefly the limestone occurrences in Quebec, using the old as well as the more recent reports as principal references"

Jan 1, 1970

By Jonathan Peck, Jim Gray

"While the mine developer looks for bigger and better orebodies in countries offering lower risks to development capital, the opera-tor of existing mines is looking for bigger and better ways to use his existing resources. Mining operations today utilize a variety of stand-alone systems for planning and managing their operations. In both small and large mines, payroll, accounting, inventory, planning, and engineering requirements are met using a combination of manual and computer-based systems.Technical advances and new enabling technologies are changing how mines are doing business. PC-based systems are allowing small operations to join the larger mines in using advanced computer-based systems. Advanced monitors are being used in maintenance to track, predict and correct the health of production equipment. Production monitoring systems are used to measure the performance of operating equipment and personnel in real time. This detailed information on how much, where, when, and by whom is being used for proactive management and planning. Ultimately, this information can be used to optimize and control the machines’ activities, eventually leading to robotic and autonomous operation of mining equipment.As the use of technology increases in mining, specific information objectives are being met but other problems are being created. The life cycle of technology is small, and as current systems are replaced by newer ones, integration problems and additional end-user training are created. In addition, onboard monitoring systems can create large volumes of data, data which are frequently archived without being analyzed. Mine operators are also duplicating efforts applying new technologies in an effort to be more competitive, but in doing so are creating interfaces which are only compatible with their own facilities. As system development moved from the centralized mainframe computer to the PC environment, the fragmentation of these systems became more pronounced.To efficiently continue in adapting and utilizing advancing technology, the mining industry needs to develop a system architecture that readily integrates as many sub-systems as possible. This will provide a framework for existing system integration and design guide-lines for future development. The Total Mining System (TMS) concept will allow a network of stand-alone functional modules to be readily integrated with minimal effort. This paper will discuss some of the current technologies cur-rently in use in some surface mine operations.In addition, a description of the information system and communications requirements that will be needed to integrate these components in the future, will be discussed."

Jan 1, 1996

By C. C. Walden, D. W. Duncan, P. C. Trussell

Thiobacillus ferrooxidans released copper from -400-mesh chalcopyrite at a rate of 54 mg/I/hr. Any flotation chemicals remaining on the concentrate did not inhibit the leach rate. Zinc rougher tailings were also leachable. With bacteria, 75 per cent of the zinc and 68 per cent of the copper came into solution. In the sterile controls, only 16 per cent of the zinc and 10 per cent of the copper were released; 100 per cent of the copper and 36 per cent of the zinc were leached from pyrite cinders through the action of bacteria, and 17 per cent of the copper and 10 per cent of the zinc were solubilized in the sterile controls. Less than 0.027 per cent of ~he iron came into solution. The majority of the copper in a converter slag was acid-soluble, but a reverberatory slag responded to microbiological leaching. About 62 per cent of the copper came into solution, compared to 12 per cent in the sterile control. The various factors influencing the rate and extent of microbiological leaching are discussed.

Jan 1, 1966

By G. M. Furnival

A PROGRAMME of structure drilling was commenced in the Southern Alberta Plains in June, 1943, for the purpose of determining the geological structure of the underlying sediments. More than 270 holes have been drilled throughout an area of some 1,800 square miles or 1,000,000 acres (see Figure 1). The Southern Plains of Alberta are covered by a mantle of glacial drift,' at places exceeding 200 feet in thickness. Only where this mantle has been dissected by deep drainage channels is bed-rock exposed to any great extent. Along such channels, surface geological mapping can be conducted to ad- vantage. Accordingly, geological mapping was commenced _in 1942 and continued each season to the present. To supplement this information, a survey of the water wells was carried on in conjunction with the mapping. However, to obtain more positive and evenly distributed structural control throughout the area as a whole and to define more adequately structural trends indicated by the preliminary mapping, it was necessary to resort to the use of drills to penetrate the glacial mantle. Various types of light drills are commonly used for this purpose and provide geological information in the form of drill cuttings, cores, drilling time rates, etc. Correlation of information is generally obtained through comparison of cored sections, drill cuttings, micro-fossils, and drilling time rates. However, in this case the holes were electrologged and correlations were made chiefly by comparison of such logs. The data so obtained is plotted and portrayed in the form of structure contour maps on recognizable stratigraphic horizons and in the form of isopach maps of the recognizable stratigraphic intervals penetrated in the holes. This method had not been widely used in Alberta previously and the technique employed was necessarily developed after the project began.

Jan 1, 1945

By G. D. Markland

"The Moose Mountain mine is located in a belt of Precambrian volcanic rocks situated 20 miles north of Sudbury, Ontario. It was the first iron mining operation in the Archean iron-formations of the Canadian Shield.The ore is believed to have been formed in an environment of active volcanism, being part of a pyroclastic and volcanic series where only the iron-formation and chert qualify as chemical sediments. The volcanic environment, subsequent regional tectonics and metamorphism produced orebodies which differ from the main sedimentary iron ranges of the world in such features as continuity, grade, structure and metallurgical characteristics. The orebodies occur as relatively small lenses which have been complexly folded, faulted and intruded by acidic and basic dykesAlthough the basic mining and beneficiation methods are simple, detailed geological control in exploration, planning and operation has been necessary to apply detailed selective techniques to the large-scale open-pit methods necessary in profitable iron mining.The milling and pelletizing processes are sensitive to minor variations in ore grade, grain size, fabric and mineralogy. Although detailed correlations of geological information and mill performance are still not entirely satisfactory, general working relationships have been determined with simple testing procedures. These are of in-creasing use in forecasting production and in ore-blending processes.The application of geology to mining and milling operations at Moose Mountain represents a departure from general practice in iron ore operations."

Jan 1, 1966

By G. Bourque

One of the design criteria for the Mount Wright facilities was to incorporate the latest proven automation techniques and devices for the new crushing, grinding and concentrating plant. The heart of the centralized control system is a Fox 1 process computer, located in the central control room in the administration building. The entire operation, i.e. crushing, conveying, storing, grinding and concentrating, is monitored and controlled, through the process computer , by one operator via a CRT console. In case of computer failure, the control is automatically, and without process interruption, transferred to manual back-up panels. One of the newest management tools, the process computer is programmed to collect and automatically print out shift. daily and monthly reports on tonnage, metallurgy and equipment operating time, for better planning of operations and preventative maintenance.

Jan 1, 1977

By Jianwen Yang, Yucai Zhou, Yanhong Dong, Daixiong Chen

"The study of combined depressants for flotation separation of lead from copper has been carried out to solve the copper-lead separation problem. Test results show that the depressant of CMC (Carboxyl Methyl Cellulose) or sodium sulfite plays an important role on the selective depression of galena flotation. When the two reagents above are combined, the selective depression effect on galena is further enhanced. When the mass ratio of CMC to sodium sulfite is 1:4, galena was best depressed, with the lowest lead content in the copper concentrateClosed-circuit tests indicate that under a certain pH value of the slurry, with the best ratio of CMC to sodium sulfite as depressants, the copper concentrate with the grade of 28.23% copper and 4.12% lead is obtained, and the copper recovery is 84.87%; the lead concentrate with 68.12% lead and 0.86% copper is obtained, and the lead recovery reaches to 92.20%. An efficient separation of copper and lead is achieved with the combined depressants. INTRODUCTIONComplex copper-lead-zinc sulfide ore is abundant in China. With the rapid increase of mineral consumption, it has become one of the important sources to produce copper-lead-zinc metals. However, it is difficult to achieve effective separation of copper and lead, due to the complicated ore properties, such as fine dissemination, low copper grade, complex symbiotic relationship and similar floatability of copper and lead.Poisonous reagents of bichromate and cyanide are often used as depressants for copper lead separation. They have good separation efficiency, but pose serious pollution issues. As the environmental protection is becoming more and more important, it is a trend to replace traditional toxic reagents with new nontoxic efficient chemicals. Organic depressant FCLS studied by Liu has strong selectivity against galena, and does not depress chalcopyrite. A new type of galena depressant of CLS-01 discovered by Jin-lin Yang shows good results in the separation a mixed copper and lead concentrate. In addition, dextrin, chitosan and some other natural organic compounds (Drzymala, 2003; Huang, 2012; Qin, 2013) have also been studied to separate copper and lead."

Jan 1, 2016

By H. McLeod

Introduction In the period from 1939 to the present, Canada has experienced a remarkable industrial expansion, rising to probably seventh in rank amongst world countries. In the early part of this period, the desperate need for military supplies unloosed tremendous amounts of capital for building new factories and for expanding and converting existing facilities. Mines, factories, and other divisions of the industrial economy bent every energy toward greater and greater output. The result was an 80 per cent increase in the volume of the nation's production within a period of four years, a truly remarkable accomplishment and one in which the mining industry had a very vital part. After the critical year, 1944, the tempo of industry eased off a bit, dropping approximately 20 per cent by 1946. At this time the prospects or post-war industry were clouded by monetary and political chaos in overseas countries, by trade restrictions, and by market uncertainties. There was, of course, a pent-up demand, both at home and abroad, for civilian goods that had been curtailed during the war and for capital equipment that had been destroyed. In the midst of this world-wide uncertainty, if anyone had ventured to predict that by the end of 1950 Canada's industrial output would be back to the 1944 level and humming along at nearly twice the best pre-war pace, he would have been considered rash indeed. Yet this has been the case.

Jan 1, 1951

By G M. Thorpe

This paper discusses mine research at Inco, giving specific examples of research projects which illustrate the approach to mining problems. The first example covers the development of a new mining method, "undercut and fill," which was originated for mining badly broken-up pillars, but which is now rapidly replacing the square set method of pillar recovery. In the new method, ore is extracted in a series of successive horizontal cuts, progressing downward, a cut being completely mined and filled before the cut below is started. In the second example, improvements to the "cut and fill" method of mining are discussed. These improvements are the result of improved techniques and improved equipment, etc., with, in many cases, the former being made possible by the latter. The advances made have permitted the use of the "cut and fill" method at much greater depths than before. The third example is presented to illustrate research undertaken to obtain the earliest maximum advantage of the introduction of a new piece of equipment or material. For this purpose, the development of the "Under-ground use of AN /FO Blasting Agent " has been selected. Work on this project started in May, 1960, at a time when there was very little in-formation regarding the potentialities of AN /FO for underground blasting, either primary or secondary. By the end of 1961, AN /FO made up 64 per cent of the explosives used under-ground at Inco mines.

Jan 1, 1963

By V. Concha, M. Hashemzadeh

"The objective of this study was to gain a better insight into the kinetics of chalcocite leaching in an acidic ferric sulfate media. Chalcocite leaching in acidic media is known to occur in two sequential stages, with the first stage being much faster than the second. The leaching residue from the first stage is typically assumed to be a covellite type of material. This study hypothesized that the mineralogy after the first-stage leaching varies in response to different leaching conditions. We investigated the dependency of the mineralogy of the first-stage leaching residue on temperature and initial ferric concentration. The experimental results showed that chalcocite leaching behavior altered upon temperature and initial ferric concentration. A proposed combined reaction model was found to be able to describe the experimental data. The first stage was described very well by the shrinking core diffusion model while the second stage was described very well by the shrinking core chemical reaction model. This finding has important implications for mine operations to manipulate leaching conditions to create the desirable leaching kinetics.INTRODUCTION The kinetics of chalcocite leaching in sulfate media has been extensively studied (Cheng & Lawson, 1991; Fisher, 1994; Fisher, Flores, & Henderson, 1992; Niu, Ruan, Tan, Jia, & Sun, 2015). Sullivan (John D. Sullivan, 1930) proposed a two-stage process for chalcocite leaching in an acidified ferric sulphate solution. The two-stage leaching of chalcocite is presented as the following reactions:"

Jan 1, 2017

By Karl J. C. Harries

"11.1. INTRODUCTIONA royalty is the most common form of interest retained by an owner who is disposing of his property or by a joint venturer who ceases, voluntarily or otherwise, to participate in the joint venture.1 Rarely does a non-participating party have a direct interest in the property and/or assets of a project, except during the period when a non-participating joint venturer may be having his interest diluted.2 In fact, it is most unwise to permit a non-participating party to have such an interest. It may give rise to significant problems that could prevent or substantially delay the development of an orebody and require a considerable amount of time, effort, and money to correct.3In negotiating a royalty, it is important to be aware that there is no law or convention that says, “You just don’t do that in a royalty agreement.” As with any agreement, inventiveness and flexibility on the part of the negotiator are not just assets, but virtual necessities. It is also for this reason that it is essential to read the royalty provisions, particularly the definitions, fully and carefully, especially if you are the recipient. On the other hand, if your inventiveness and flexibility cause your accountant to question the advisability of one of your ideas, pay close attention to him.4 He will, no doubt, have had experience with many royalties, and no competent professional adviser disparages a client’s ideas without good reason. Besides, he will probably be the person who will be determining the royalty or certifying the determination of it. At the very least, he will be auditing your general financial statements, which must, of course, reflect the royalty determination. Heeding his advice not only may make the determination easier but also will probably save you money in professional fees later on. Nevertheless, do not simply accept his comments or recommendations without understanding what they mean, why they have been made with respect to your royalty agreement (sometimes professionals have comments that they make as a matter of course and, even though they may be valid, you should require them to be justified to you), and how they will affect your royalty determination.It is surprising how many corporate payors insist that their standard royalty provisions5 be used as a matter of policy, thereby effectively tying the negotiator’s hands. It is even more surprising, and to professional advisers frightening, how many of the senior employees who insist that such a policy be adhered to, virtually without variation, do not know what is in the standard provisions and would be hard-pressed to explain them to a property owner. If standard provisions are appropriate, by all means use them, but do allow experienced and sensible negotiators some flexibility and make sure that everyone within the corporation who may have to use such provisions – negotiator and supervisor alike – knows what they contain and why they are as they are. For example, there are often good and convincing reasons to describe a deduction in a certain way or to include a certain specific type of deduction. On the other hand, quite often the answer to the question “why?” is that “it has always been there”; this is, or should be, an unacceptable answer. In any event, if you, as the negotiator, appear to know what you are talking about, are familiar and comfortable with your royalty provisions, and are backed up by your boss with the same words or reasoning, a property owner cannot help but be satisfied that you are knowledgeable, even if he still does not agree with your provisions. Finally, if you do use standard provisions, make sure that they are reviewed and updated regularly."

Jan 1, 2003