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By Herbert D. Drechsler, James B. Stephenson

"AbstractThe paper identifies the major components of price change which affect the determination of the internal rate of return of a mining project. It illustrates several price indexes which may be used to measure general price increases, identifying techniques which might incorporate them into mine valuation procedures. The ""hurdle rate"" for new investment is discussed.IntroductionDECISIONS regarding the value of an orebody and whether or when to mine an orebody are based on an estimate of the cash flows which would be associated with its exploitation. These pro-forma cash flows represent cash in or out of a possible mineable deposit and include exploration and construction costs, sales revenues, operating expenses, taxes, debt borrowings, interest and debt repayment. It has long been recognized that when combining the cash flows occurring over the life of the mine, dollars received or paid out early have greater value than those received or paid out later. This time value of money has been incorporated into mine evaluation calculations through the use of present-value or discounting techniques. Another factor affecting mine valuation, inflation, is not accounted for by valuation techniques now in use. In recent years, price changes have become more volatile. In the past, price change could easily be ignored when evaluating potential mines. Today, the combination of larger investments and greater price volatility leads to great concern about the effects of price change on mine valuation."

Jan 1, 1977

By G. E. Wood

THE INSTABILITY of copper prices and their low levels since late 1974 are of great concern to both producers and, to a lesser degree, consumers of copper. The price levels portrayed by the "neutral long-term" price trend are assumed to have been enough to encourage sufficient investment to provide adequate world production capacity and yet not so high as to encourage development of excessive over capacity. The identification of the present level of this trend has taken on special importance for governments and for corporations active in the world copper industry. One approach to the possible determination of such a price is through the use of moving averages. In this way, the effects of relatively short-term price movements can be dampened, as can those related to business cycles. From such averaged price data, long-term trends can be sought over a selected time period. The choice of the past time period for which a price trend is sought may have a major effect on the result'. For example, in the period 1885-1973, the long-term price trend for copper in constant dollars showed a decline, whereas in the period 1919-1973 it was rising. For the purposes of discussion, an appropriate choice of period might be a relatively short and recent one so that the majority of the present cost factors would be present throughout. It should also be long enough to cover a number of full business cycles.

Jan 1, 1977

By A. G. Eccles

Western Mines' milling circuit produces three concentrates (copper, lead and zinc), with the tailings being disposed of at the bottom of Buttle Lake. In view of the mine's location and the method of tailing disposal, a comprehensive pollution control program has been in effect since start-up. Changes -in the ore over the past few years have required the use of increasing quantities of sodium cyanide in order to effect a good copper-lead separation. This led to the use of alkaline chlorination for destruction of ?residual cyanide and precipitation of dissolved copper contained in the tailing effluent. The development of Western Mines' alkaline chlorination plant is discussed in detail, including initial test work and the evolution of procedures leading to the present operation. The current monitoring program is also reviewed.

Jan 1, 1977

By G. M. Behrend

"AbstractMeasurement and control systems in minerals processing plants are usually well thought out and designed. The criteria and design parameters have been interpreted correctly.However, these systems often fail to perform satisfactorily or break down altogether as a result of in-plant conditions which are unpredictable and over which the instrument systems designer has no direct control. The foresight necessary to anticipate the problems and allow for them in the systems design can only be generated by experience.This paper lists the most common of these problems and offers practical methods for their solution. It then follows with an analysis of instrument installation practices and comments on special points that need watching.Finally, instrument maintenance is discussed with a view to achieving good maintenance at the best possible economy.Good MeasurementGeneralTHE MINES and mineral processing plants of the nineteen seventies, after decades of sensible caution, have now committed themselves to extensive automatic control. X-ray analyzers are freely specified. Sample acquisition systems are efficient and automated, computers are reliable and relatively cheap, and computer control systems in conjunction with the new analyzers are operating in a good many plants and are proving to be profitable.The sight of shift foremen and floor operators assembled in front of a TV-tube and taking a computer data display as gospel truth is quite common now, and yet was quite unthinkable only ten years ago."

Jan 1, 1977

By J. E. Udd

A core sample for this study was taken from the sulphide ore of the Geco Mine. The subsequent research was based on the assumption that a part of the scattering of strength-grade data could be correlated with variations in the chemical and/or mineralogical compositions of the samples. The results demonstrate clear relationships between strengths in tension and compression and the zinc-iron contents of the rocks.

Jan 1, 1977

By V. F. Hollister

Four conditions are commonly accepted as being needed for the development of native sulphur deposits in sedimentary rocks : (1) ample sulphate-bearing evaporite, normally anhydritic; (2) proximity to petroleum deposits; (3) a hydrodynamic system of communication between these two; (4) a stratigraphic or structural trap to prevent escape of the sulphur and sulphur -bearing reaction products. When any of these requisites are absent, apparently no significant residual bio-epigenetic sulphur deposit will form. These requirements are, however, satisfied in some areas, which include both the Triassic and Devonian evaporites of northeastern British Columbia.

Jan 1, 1977

By B. H. Good

This paper describes the research that has been conducted -in an effort to understand the nature and causes of sulphide fires -in the Sullivan Mine. Results of the investigation have led to several theories of the origin: of the fires, the nature of the chemistry and a method for assessing: the fire potential. Recommendations and the implications for the mining operation are also discussed.

Jan 1, 1977

By D. B. Haas

THE HYDRAULIC TRANSPORT of solids is becoming increasingly prevalent throughout the world. Major long-distance slurry pipelines currently in operation transport commodities such as coal and various ore concentrates distances of up to hundreds of miles. In the United States, a number of large-diameter, high-tonnage pipelines are under consideration for the transport of Western Plains coal to markets up to 1000 miles away. In these and other applications, the solids are generally quite fine, with 14 mesh being a typical limit of particle size for long-distance (over 100 miles) slurry transport. There are applications where it might be practical to transport solids consisting of larger particles distances of up t o 100 miles. Deposits of high-quality metallurgical coal are found in the inner foothills belt along the eastern edge of the Rocky Mountains on the Alberta-B. C. border. There are few existing railroad s and the possibilities of constructing extensions are limited because of environmental and economic factor s. In these circumstances, the most efficient transportation system might consist of a pipeline to transport the coal from the mine to beneficiation plants located near existing railroads 50 or 100 miles away. Such systems would minimize environmental effects, capital cost s and operating costs. To determine whether such a system would be technically feasible, experimental testing is needed to determine the energy requirements for transporting coarse coal in a pipe line. Currently, run-of-mine metallurgical coal is crushed to less than 1 1/2 inches before going to the beneficiation plant. In the proposed scheme, coal of this size would be transported through a pipeline to the beneficiation plant located at the railroad. The Transportation Development Agency and the Department of Supply and Services have awarded a contract to the Saskatchewan Research Council to study pipelining of coarse coal in pipelines ranging from 4 inches to 12 inches in diameter.

Jan 1, 1977

By R. A. Wyman

A comparison of the amount of minus-28-mesh product produced by a standard grinding test procedure is provided for 45 non-metallic materials. The percentage of product, the weight of product per unit of energy used and the weight of product per mill revolution are shown. The results exhibited excellent reproducibility and demonstrated an accurate comparison of grindability for non-metallic materials.

Jan 1, 1977

By Leonard L. Fischman

It is important to define "adequacy," and the most useful definition is a continuing availability of mineral materials under cost and other conditions which imply no significant burden on the achievement of otherwise attainable levels of consumption and well-being. For current decision making, it is sufficient to consider adequacy just to the end of the century, with some regard being given to then remaining mineral inventory. A comparison of cumulative demand projections to the year 2000 with already identified reserves ( economically recoverable amounts in known deposits) suggests little reason for concern with world adequacy of iron ore, aluminum, manganese, chromium or potash. Conservative estimates of "prospective" reserves (amounts producible at today's prices, but yet to be discovered) suggests that there are ample quantities of virtually all other mineral resources as well. A probable exception is oil and gas, of which there may be scant amounts remaining after the turn of the century. However, there is an evident sufficiency of substitute forms of energy, though it is difficult to see just where developing technology will take us. The critical questions have to do with the increasing dependence of the industrialized countries on external sources of supply , coupled with a new international politic s which complicates the problem of insuring timely development of, and access to, remaining deposits. In this context, Canada, a still mineral-rich nation, is in one of the more favorable positions.

Jan 1, 1977

The major factors limiting the establishing of vegetation on the shale and sandstone wastes at Minto are high exchange acidity and low pH (shale pH 4-5, sandstone pH < 4). In the first revegetation program (1967-74), 3.8 million trees were planted without grading on 4,000 acres (red, jack and scots pine and black locust). White dutch and sweet clover, birds-foot trefoil and red top were established in selected areas, and ponds were stocked with brook trout. In the second phase of reclamation, beginning in 1979, a comprehensive plan will be initiated which will allow for forest production, wildlife development and recreational activities.

Jan 1, 1977

By Willie Manfrey, Richard Klimpel

This paper describes the effects of slurry viscosity on the selection-for-breakage and breakage distribution parameters in the wet grinding of cres. A series of experimental tests were run on laboratory scale ball mills. Slurry viscosities were modified by varying the solids/water ratio with and without the presence of selected chemicals. Very consistent and predictable correlations are shown to exist. The grinding parameters were calculated using a computerized back -calculation technique developed by Klimpel and Austin. Industrial scale circuit calculations and preliminary plant trial data suggest that considerable increases in throughput and/or fineness of grind can he achieved through the judicious use of chemical additives.

Jan 1, 1977

By Jehan Rondot, Raymond Marleau

"Des quartzites trés pars ont été découverts au cours de la cartographie de la region du lac des Martres, étape de l'étude géologique de la region de Charlevoix.On distingue quatre groupes métasédimentaires, tons con tenant des niveaux de quartzite dans an mains deux domaines géologique différents, c'est à l'ouest, clans le do¬maine gneisso-charnockitique que se situent les quartzites du groupe des Martres. Quartzite et gneiss à, grenat et sillimanite, en banes épais, constituent la formation de La Galette. A Pest, dans un environnement gneisso-granitique, les deux groupes métasédimentaires de Saint-Siméon, et de La Malbaie comprennent, par contraste, des bancs pen épais et de compositions variées. Les niveaux de quartzite dépassent rarement 50 m d'épaisseur. L'autre groupe métasédimentaires, celui de Saint-Tite des Caps, recoupé de nombreuses intrusions charnockitiques et granitiques, ne possède que de minces niveaux de quartzite.La pureté et la grande épaisseur des quartzites de La Galette suppose une histoire complexe qui se termine par des depots continentaux de climat aride, par opposition aux depots marins des autres groupes. D'autre part, la presence de ces quartzites an sein de roches Presque anhy¬dres et de haute temperature que sont les charnockites leur confére des caractéristiques de fusion sans decrepitation.Parmi la multitude de depots de quartzite qui existe clans le monde, peu sont de qualité supérieure. Or, de par sa composition chimique, le quartzite de La Galette se compare avantageusement à ceux des meilleurs gisements des Etats-Unis, de l'Europe de l'Ouest et de l'Afrique du Sud. D'accès facile pour l'exploitation, les gisements ne sont qu'à une trentaine de milles de Baie Saint-Paul ou de La Malbaie, sur le Saint-Laurent.L'utilisation en metallurgic prévue pour le quartzite de La Galette comprend la production de silicium, de ferro¬silicium et d'autres alliages de silicium. La composition du quartzite est en outre appropriée pour la production de carbure de silicium et de silicate de sodium. Les fines peuvent être utilisées pour la fabrication du verre et comme matiere de charge"

Jan 1, 1977

By Leon J. Perrier

The paper describes the equipment in use, haulage grades, road conditions, tire sizes, tire performance and related problems. Various types of failures and causes, corrective action taken, tire records and reporting for control are also discussed.

Jan 1, 1977

By F. P. Agterberg

"IntroductionTHE KNOWLEDGE about the mineral resources in a region ranges from relatively precise ore-reserve estimates for known deposits to probabilistic estimates concerning the speculative resources which may be discovered in future at greater depths and in the less-explored parts of the region. Previously developed probabilistic methods for regional resource evaluation (1) are based on the following two assumptions.(1) The probability that a specific block of rock, or part of a region close to the topographic surface, contains undiscovered deposits can be estimate d by weighting selected geological, geophysical or geochemical parameters for that block. The weights are computed by considering similar environments which are known to contain deposits.(2) Some of the characteristics of the undiscovered deposits, such as ore tonnages and average grades of metals contained in the ore, can be evaluated by considering probability distributions f or known deposit data. These methods were initially applied to Precambrian deposits in the Abitibi Volcanic Belt of the Canadian Shield (1).Since 1972, statistical methods for quantitative resource evaluation have been applied to the occurrences of the mainly Paleozoic base metal deposits in t he Canadian Appalachian Region. The objectives of this project (Project Appalachia) have been discussed by Leech (2) in a paper that introduces 8 papers with results of the exploratory data analysis. Project Appalachia represents an effort to develop and apply methods of combining information and concepts from regional geology, metallogeny and geomathematics for computer- aided regional mineral resource evaluation."

Jan 1, 1977

By V. A. Ettel

Current practices in electrolytic winning and refining of copper , nickel and zinc are reviewed from the point of view of their respective energy requirements. The electrical energy requirements of these processes are broken down in to the individual components, which belong to two basic categories: (a) thermodynamic energy requirements (G of the desired reaction) : (b) energy losses (anode and cathode polarizations, ohmic drops in the electrolyte and in the cell hardware, energy losses due to unwanted side reactions and electrical shorts). The individual energy components are separately examined for each electrolytic process and the potential for energy saving in these processes is discussed. It is shown that many potential energy-saving measures are uneconomical at the present time, as they increase over-all operating costs. The discussion is focused on those approaches which hold most promise for the future.

Jan 1, 1977

By R. D. Brown

Ever since British Columbia started the ball rolling in 1974 with the introduction of its now-defunct Mineral Royalties Act, all Canada&apos;s resource-based provinces have significantly altered their mining tax systems. The last resource-based province to abandon its pre -1974 mining tax structure is New Brunswick, which introduced a new mining tax regime in the summer of 1977 to take effect from April 1 1977. The new structure, which represents the outcome of considerable study and discussions with industry representatives, contains some intriguing concepts which make Nero Brunswick&apos;s new mining tax system unique among the Canadian provinces.

Jan 1, 1977

By R. T. Saxon

Prior to November 1975 there were several failures of front -wheel spindles on large haulage truck s in B.C., attributed to fatigue cracks. Since that time, a non-destructive test program has succeeded in detecting the cracks before catastrophic failure, However, the author regards the failures as just one example of a. general unreliability in large high-strength steel castings and urges the industry to look to forgings for sensitive components of heavy equipment.

Jan 1, 1977

By H. W. Wevers

Fatigue failure and accompanying brittle failure occurs frequently in heavy mining equipment. This paper discusses how fracture mechanics can be applied as a tool for crack control and crack management. Information is provided to determine if particular components are prone to brittle failure. By using existing fracture mechanics formulae, an estimation of the critical crack size can then be made. It is explained that for a successful application of fracture mechanics, both the actual engineering stress in the component and the mechanical properties of the applied material must be known. The importance of toughness at low temperatures is quantitatively illustrated by calculating critical crack sizes at room temperature and at below-zero temperatures. Understanding the possibilities of fracture mechanics will also produce a climate in which the purchaser of equipment can more precisely analyze the relative quality of components with respect to crack tolerance and failure prevention. In this manner, communication between the user and manufacturer of equipment may also become more precise and effective, leading to improved design.

Jan 1, 1977

By G. J. S. Govett

World mineral production is dominated by six countries - the U.S., the U.S.S.R , Canada, South Africa, Australia and China - which also hold most of the reserves of the world?s minerals. For the developed and centrally planned countries, there is a strong positive correlation between the mineral production of a country and its land area: there is no correlation between mineral production and land area for the less developed countries. These facts imply that, after taking due account of geological controlling factors, a country may expect to produce minerals in approximate proportion to its land are a provided that political, economic, and historical factors are conducive to mineral exploration and mining. Contrary to popular political belief in many parts of the world, the developed countries are the major source of mineral imports for the industrialized countries. Moreover, exports of ores and minerals account for a relatively small par t of world trade, and are an important factor in the export picture of only a few of the less-developed countries. The looming resource confrontation between the developed and the less-developed countries is based largely on the false premise that the industrialized countries of the world are minerals-poor and owe their wealth to cheap minerals from the less-developed countries. The data presented refute this. Geological controls are relatively minor in the present distribution of world mineral production; political and economic factors are dominant. It is argued that an expansion of world trade in minerals - based on increased exploration and new forms of finance for mining ventures - rather than cartels, price-fixing and trade restrictions is by far the preferable solution to the problem of redressing the legitimate grievances of the poor countries of the world.

Jan 1, 1977