Search Documents

By A. Ignatieff

"THE WORLD'S coal resources represent the largest component of non-renewable energy resources. Coal is now regaining Its position following a temporary decline, particularly in North America during a period of about a quarter of a century. This period provided the opportunity to improve both surface and underground mechanization, thereby increasing the productivity and improving conditions for humans in the mines. Similarly, in preparation, improved cleaning of coal from various impurities including sulphur was achieved, to meet the more demanding requirements for coking coal. Progress was also made in combustion, particularly related to the reduction of pollution. Canada participated in most of these developments, despite the country's strong commitment of the use of hydrocarbons during this period. _Bearing in mind the vastness of this land (3.85 million sq. miles) by comparison with countries like U.S.A., U.S.S.R., and China, Canada's coal resources estimated to date are not large and they are scattered. The original evaluation of 1913 estimated the ""reserves"" from seams over one foot in thickness and a limiting depth of 4,000 ft at 1.2 trillion metric tons. D:. ~.R. MacKay, in his evaluation for the 1946 Royal Commission on the coal industry, known as the Carroll Commission, reduced the ""reserves"" to 99 billion short tons. The increased knowledge now available would indicate that the 1913 estimated was too liberal and the 1946 estimate too conservative but both were closer to a resource than to a reserve designation. Some adjustments of Dr. MacKay's estimates were made in 1970 by B.A. Latour of the Geological Survey of Canada and L.P. Chrismas of Energy, Mines and Resources Canada (EMR). In the last decade the Alberta Energy Resources Conservation Board has developed its own methods of evaluating coal resources and reserves. A methodical approach of exploration and evaluation was carried out by Saskatchewan jointly with the federal government of the lignite resources of Southern Saskatchewan. A similar joint program is in progress in Nova Scotia. Meanwhile, the industry itself carried on an extensive exploration program on the outcrops of promising projects in the Inner Foothills belt of Alberta and British Columbia in preparation for surface mining on a very large scale, with some development of hydraulic mines. All these activities have been reflected in the increase of the country's resources and reserves, which now fortunately are separately defined. In 1979 EMR issued Report E.R. 79/9(1>; the data were developed in 1978 and provided to the World Energy Conference Organization<2>. In 1980 the World Coal Study (Wocol), an international group that included Canada carried out a study which updated the W.E.C. data, indicating some reduction of the 1978 figures; quantities were reported in million metric tons of coal equivalent (C.E.)*(Jl."

Jan 1, 1985

By Roger J. Goodman, Don Riva

"IntroductionCrows Nest Resources Limited (CNRL), a wholly-owned subsidiary of Shell Canada Resources Limited, is nearing completion of its first coal project, located in southeastern British Columbia. CNRL shipped over 700,000 tonnes of thermal coal to foreign markets in 1982. With the completion of the metallurgical coal plant in December, 1982, shipments of both thermal and metallurgical coal will increase substantially in 1983 and will approach the anticipated operating capacity of 3.0 million tonnes in 1985. The Line Creek Mine lies some 25 kilometres north of Sparwood in southeast British Columbia (Fig. 1). The open-pit mine is located on top of Line Creek Ridge, with coal being hauled 16 km to the thermal and metallurgical coal preparation plants, situated adjacent to the already existing Canadian Pacific Railway. Most of the coal is moved by 108 car unit trains by CP Rail to coal ports in Vancouver, where it is loaded onto vessels destined for overseas markets. Some smaller scale car load shipments are moved by rail to contiguous markets in the Pacific Northwest. History The southeastern British Columbia area, known as the East Kootenays, is steeped in a rich coal mining heritage, dating back to the latter part of the nineteenth century. Predecessors of Crows Nest Resources Limited were instrumental in developing the rich coal reserves in the area. In 1887, William Fernie, a pioneer-cum-prospector recognized the potential of coal deposits in the East Kootenays. Spurred by the relentless push west of the Canadian Pacific Railway through the Crows Nest Pass area, Fernie recognized that it was just a matter of time before the steam locomotives provided him with his required market. That time arrived in 1897 when Fernie helped to form the Crows Nest Pass Coal Company and coal mining commenced at Coal Creek, near his namesake town of Fernie. During its almost 70-year history, this company produced over 48 million tonnes of steam coal and 8 million tonnes of coking coal. In 1965, the Crows Nest Pass Coal Company was re-named Crows Nest Industries, to better reflect its expanded interests into forest products, and it is the latter company which Shell Canada Resources Limited acquired in 1978. The extensive coal resources of Shell, in both Alberta and British Columbia, were rationalized into one group with the birth of Crows Nest Resources Limited to manage and develop the coal holdings."

Jan 1, 1985

By W. J. Jenner

"Introduction The Saskatchewan Power Corporation is a provincial crown corporation which operates under a mandate to supply all customers within Saskatchewan with electricity and natural gas. The Saskatchewan Power Corporation operates two coal mines within the province of Saskatchewan. The Souris Valley Mine is located a few miles south of the city of Estevan and produces approximately 300 000 Mg of lignite per year. The lignite is shipped about four kilometres by truck and burned at the 882 MW Boundary Dam Power Station, also owned by the Saskatchewan Power Corporation. The Poplar River Mine is located just south-west of the town of Coronach, Saskatchewan which is some 190 kilo metres west of Estevan. This mine produces approximately 1 675 000 Mg of lignite per year. The lignite is shipped seven miles by rail to the Saskatchewan Power Corporation's Poplar River Power Station. The Poplar River Mine is the sole sup plier of fuel to the Poplar River Power Station, which generates some 300 MW of electrical power. A second 300 MW unit is due to be commissioned at the Poplar River Power Station in mid-1983 and the Poplar River Mine will have doubled its capacity to approximately 3 350 000 Mg per year by that time: Souris Valley Mine Geology The Souris Valley Mine extracts lignite from the Estevan seam of the Ravenscrag Formation. This formation is of Tertiary age and was deposited during the Paleocene Epoch. The Ravenscrag Formation outcrops throughout southern Saskatachewan and all coal mined in the province occurs in this formation. Ravenscrag sediments are deltaic in origin and are composed of a series of fine sands, silts, clay and lignite deposits."

Jan 1, 1985

By Christie A. Callender, Harry M. Dahl

The Hobson uranium deposit is located in Karnes County, Texas, along the prominent south Texas uranium trend. The uranium mineralization occurs in the Deweesville Sandstone of the Whitsett Formation of the Eocene Jackson Group. The host rock is a friable, fine-grained, well-sorted, highly porous and permeable sandstone interpreted to be an ancient beach deposit. The sandstone contains significant volcanic constituents and ranges in composition from arkosic to tuffaceous. Locally, the host sandstone contains hard, dense opal cement. Bentonitic shales underlie and overlie the mineralized sandstone unit. Geometrically, the Hobson uranium-bearing zone resembles an elongated roll front type deposit. Chemical uranium values compared with gamma ray equivalent uranium values indicate that the uranium has been dissolved from the updip side and precipitated on the down- dip side of the roll front. Details of the uranium mineralization were studied using thin section microscopy, autoradiography, x-ray diffraction (XRD), scanning electron microscopy (SEM) and energy dispersive spectroscopy (EDS) techniques. The uranium mineralization occurs in the pores of the sandstone, as grain coatings and as replacement of sand-size and smaller grains. It is commonly associated with pyrite and other opaque minerals. Other favored hosts for uranium (other than pore openings) appear to be clay aggregates, altered rock and glass fragments, and carbonaceous plant debris. Aggregates of coffinite were identified by XRD and SEM/EDS analyses. Some uranium mineralization also appears to be dispersed and is postulated to be adsorbed on the clay and carbonaceous matter.

Jan 1, 1985

By J. M. Stuve

In this Bureau of Mines investigation, the low-temperature heat capacities of polycrystalline phases corresponding to the sulfide compounds CoSO?89&apos; CoS1?33, and CoS2 were measured by adiabatic calorimetry within the nominal temperature range 5 to 300 K. The derived absolute entropies S298 were 10.36±O.02, 12.96±O.03, and 16.31±O.03 cal?mol-1?K-l, respectively, assuming third-law behavior. In addition, the standard enthalpy of formation 8Hf298 of CoSO?89 was determined by bromine solution calorimetry. The derived value of 8Hf298 was -50.63±2.1 kcal?mol-1, based on the 8Hf298 of Co0. This result is considerably more negative than previously published formation values based on high-temperature gas equilibrium studies.

Jan 1, 1985

By I. A. Tinto

Labrador City is located in the southwestern portion of Newfoundland-Labrador, approximately 965 kilometers north-east of Montreal. The mine and beneficiation complex of the Iron Ore Company of Canada, known as the Carol Project, is situated 535 metres above sea level in a climatic region characterized by cold winters and short, cool summers. History The iron Ore Company of Canada commenced work in the area in 1949, however, it was not until 1958 that the decision was made to proceed with mining operations. The ore body consists of Specular Hematite (Fe203) and Magnetite (Fe304) with small quantities of Limonite and Geothite. The average grade of the ore bodies is 39% iron.

Jan 1, 1985

By B M. H Sharp, R P. Hide, S P. Devine

Uncertainty and debate currently pervade the mining industry in New Zealand. The operational uncertainties, whether external (eg gold prices, the exchange rate), or internal (eg coal expansion difficulties), are large. In addition, many wider factors which influence mining are in a state of flux. State Coal Mines, the operating branch of the Mines Division of the Ministry of Energy I may be made a state corporation, with the remaining Mines Division functions being revamped. The agencies administering environmental legislation are to be restructured. Mining legislation amendments have been proposed and then dropped, and the area is now to be reviewed (The Press, 31 July 1985). Some mining licences have been withdrawn, and become the subject of heated debate in the community (The Press, 19 July 1985, and subsequent letters to the editor).

Jan 1, 1985

By J. G. Kelly, C. P. Brown

"In June 1983 a new borehole hoisting system was commissioned at Sherritt Gordon&apos;s Fox Mine. Twelve hundred tons-per-day of ore from the 2600 and 2800 levels are being hoisted to the 2000 level through an 8-jt diameter bored winze. This new method replaces the diesel truck haulage system which had been in operation at the mine since 1975.A study was initiated in 1980to determine the most effective method of achieving the required production. The study examined several hoisting alternatives including: expanding the existing trucking system; converting to electrically -powered truck haulage; and deepening the skip compartments of the existing main shaft. The alternative selected as the hoisting method most suited to the requirements was borehole hoisting.Development of the new system commenced in April 1982. Underground excavations included 700 feet of 8-ft diameter borehole, a hoistroom and headframe, storage bins, and a grizzly and rockbreaker station. Equipment installations included: a 5-ft diameter double-drum Nordberg hoist; a counterweighted Kimberley-type skip; two rockbreakers; and the steel sets in the winze. These installations were completed in June 1983. Some problems were encountered after the initial commissioning but these were solved, and since August 1983, the system has proven that the designed capacity is achievable within expected costs."

Jan 1, 1985

By W. A. Jankola, M. T. Martin

"The world&apos;s first zinc pressure leaching plant at Cominco&apos;s Trail operations started production in 1981. Sullivan zinc concentrate is leached at the rate of 190 tpd in a four-compartment autoclave at elevated temperatures and oxygen pressures to produce a zinc sulphate solution and elemental sulphur. Zinc extraction exceeds 98% and sulphide to elemental sulphur conversion exceeds 95%.The sulphur is recovered from the discharged slurry in the underflow of a hydrocyclone, and is upgraded as a flotation concentrate. The concentrate is dewatered, melted and filtered to produce a polished sulphur product of better than 99% purity. An alternative sulphur recovery process employs an unique sulphur separation method that recovers over 90% of the sulphur in the molten state. The remaining sulphur is recovered by flotation following flash discharge of the slurry. The product slurry containing the zinc sulphate solution and the iron-lead residue joins the existing roast-leach zinc plant for purification and zinc electrowinning.IntroductionIn 1981, Cominco Ltd. commissioned the world&apos;s first commercial zinc pressure leaching plant at their Trail operations in British Columbia. As part of a $700 million modernization and expansion program for lead and zinc started in 1977, the company installed the first o f two autoclave trains.Prior to pressure leaching, zinc production was closely tied to acid and fertilizer production. Sulphur dioxide produced from roasting the concentrates had to be converted to sulphuric acid. Thus, any expansion of zinc operations with the roast-leach technology would have required extensive modifications to the acid and fertilizer plants as well as to the roasters. Zinc pressure leaching, on the other hand, offered a one-step dissolution of zinc from the concentrates with high extraction, and production of elemental sulphur. The associated dust and sulphur dioxide generated in the roasting process are both eliminated from the working environment of the pressure leach facility. The flexibility allowed by producing elemental sulphur, and the opportunity to break the sulphuric acid link for about 25 per cent of the targeted 272,000 tonnes per year zinc production was very appealing. The process was successfully demonstrated at a pilot plant in 1977(1-6)."

Jan 1, 1985

By Fred H. Brooks

INTRODUCTION The toughest job for any mining company, large or small, is to locate and identify a property which it feels has the potential for development and which can be tied up through location, lease or option under terms within their means. In the case of a small company, this precludes grass-roots exploration with its attendant high costs and the extended time required to develop a prospect to the point of being a project. The small mining company, therefore must limit its search to known properties which, for various reasons, have been shut down or were never thoroughly developed at the time of discovery. These types of prospects are located either through literature search, familiarity with many mining areas in general, or through contacts and submittals from a variety of sources. In order to develop a marketable presentation to any investor, the basic requirements are the same: - the property must demonstrate the potential to provide a satisfactory return on investment - the evaluation study must be thorough and professionally developed. In order to promote any mining property, it is first necessary to know what you have. INFORMATION DEVELOPMENT We normally begin with a detailed literature search of the district, assembling all available data on the basic geology, production records, and old reports of this or neighboring properties and any other information which can be found. This will aid in the general understanding of the basic geology and hopefully allow a fairly detailed knowledge of the specific occurrence. With this information one can begin to speculate on the reserve potential and develop some high and low figures for estimating purposes as to mining method, production rate, metallurgy and begin developing estimated capital and operating costs. Cashflow runs are developed for varying tonnages (high and low), estimated high and low grades of metal and at differing market prices for the product. FINANCE CONTACTS Brooks Minerals, from its inception, has been an operating company and we have been able to assemble a small but experienced operating staff. For this reason we try to put together projects and joint ventures where we can be the operator and maintain a certain degree of control. Whether due to familiarity with many colleagues in the mining industry or due to unfamiliarity with the banking houses and securities markets, the approach to raising finance has generally been to contact the established mining companies. This requires a familiarity with the corporate philosophies of these companies with respect to their development goals and financial capabilities. A common mistake is to shotgun the proposal to many companies of different sizes and goals in hopes that one might be interested. It is more beneficial, when possible, to tailor a proposal to each company, stressing the positive points where the specific proposal best meets their interests. One company may be more interested in a development program with fairly certain and conservative return potential. The property may well contain both possibilities but a lack of understanding of the individual company&apos;s method of operation could spoil the deal. In another instance, one company may look at a property as a moderate income producer over an extended life, yet a second may elect to high-grade the deposit over a shorter period in order to provide early cash flow or take advantage of a favorable market situation. MAKING THE DEAL There are as many types of deals as there

Jan 1, 1985

By J. James Eidel

Geological interpretations generally require projections from direct observations at the earth&apos;s surface. Crustal projections include mineral deposits as well as the geochemistry of the crust and its fluids, structure and tectonics. Drilling offers opportunities for verification of the required projections, and is thus a required step in furthering crustal understanding. Like any new science, the direct observations that drilling provides commonly generate major surprises and stimulate totally new ideas. Drilling is costly. There are many critically important scientific problems with societal and potential economic benefits in mineral deposits which have not been drilled because the holes are difficult to justify as economically sound risks for private capital. Such holes, however, are highly justifiable research goals for government because of the significant new opportunity for ore deposit insight and exploration that they afford. The earth science community is prepared with excellent drilling projects for research in mineral deposits.

Jan 1, 1985

By G. E. Agar, W. B. Kipkie, R. A. Tenbergen

"This paper describes the successful pilot plant testing of a flowsheet, developed at Inca Ltd.&apos;s J. Roy Gordon Research Laboratory (JRGRL), for improved separation of the constituent minerals in a bulk copper-nickel concentrate.The flowsheet utilized the fact that xanthate concentration on the mineral surfaces is the most important variable affecting the high lime separation and that reduction of the xanthate concentration could be affected by an oxidative conditioning stage.When the adsorbed xanthate was reduced to a suitably low level, chalcopyrite and pyrrhotite could be floated to leave a high-grade nickel concentrate as the residue. Sodium cyanide was added to the froth product 10 depress pyrrhotite and any remaining pentlandite. The temporary depression of chalcopyrite by the sodium cyanide was overcome by introducing a conditioning step following cyanide addition . The advantages of the flowsheet; improved copper-nickel separation, operation without heating of the pulp, production of both high-grade nickel concentrate (29.5% Ni, .26% Cu) and copper concentrate (<0.5% Ni, 30% Cu) were all realized.IntroductionLaboratory test work undertaken at Inco and described previously(1) has demonstrated the importance of low xanthate concentrations on the mineral surfaces in the copper-nickel separation at the Copper Cliff mill.It was determined that oxidation of the separator feed (a cleaned bulk concentrate, grading about 11% Cu and 11% Ni) to lower the xanthate concentration on the mineral surfaces prior to separation significantly improved the quality of the separation (CI 4)*, particularly when no cyanide is used, but also when cyanide is added. As well, it was found that the oxidation permitted a pentlandite-pyrrhotite separation - the oxidation step brought about a decrease in the flotation-rate of pentlandite leaving pyrrhotite and chalcopyrite largely unaffected. Consequently, it was possible to produce a highgrade pentlandite product (30% Ni, 0.3% Cu) at ~83% Ni recovery , as well as a high-grade copper concentrate (0.5% Ni, 30% Cu at -96% Cu recovery)."

Jan 1, 1985

By A. Ignatow

"A review is made of some of the principal factors and conditions that are, and will be, important to the over-all market climate for asbestos fibre and for the future of Canada&apos;s asbestos industry: - health hazard associated with asbestos exposure;- uncertain international regulatory environment for continued asbestos use;- adverse public reaction to asbestos;- product liability/litigation costs (U.S.A. primarily);- promotion of substitution by governments and asbestos user industries; and- minimal product and market development efforts by asbestos producing and consuming industries.In addition, Canadian producers, who export some 95 per cent of their production, face additional constraints:- dramatically reduced integration with asbestos-consuming industries;- 60 per cent of exports to most rapidly declining markets (U.S.A., Europe);- increased competition from offshore producers favourably located to growth markets in developing countries;- increasing production costs;- a strong dollar;- disadvantageous freight rates; and- loss of price leadership and price erosion.Future market trends, as well as prospects for Canada&apos;s asbestos industry, will be projected in this paper.Economic FactorsTable 1 presents asbestos fibre production in all countries for the period 1980-82. In certain instances, e.g. U.S.S.R. and China, these are capacity estimates as production statistics are not officially published. The U.S.S.R, by far, is the world&apos;s largest producer accounting for some 50 per cent of world production, though most production is consumed internally or by COMECON countries. It is estimated that some 700 plants produce asbestos-containing products within the U.S.S.R.Canada accounts for some 25 per cent of world production though it ranks first in world trade. Other important producers are South Africa Zimbabwe, Brazil and Italy. Since 1979, Canada&apos;s asbestos mining industry has experienced a dramatic drop in production and exports of asbestos fibre, as demonstrated in Table 2."

Jan 1, 1985

By Francis X. McCullough

After OSHA published a Notice of Proposed Rulemaking on August 5, 1983, to revise its standards for Underground Construction, many contractors and their representative associations became concerned by the sweeping changes in the proposed rule. After reviewing all of the evidence and testimony on file with OSHA, the contractors presented extensive written and oral testimony to the Department of Labor in Washington, D. C. to help insure that the final published rule would be effective without jeopardizing the economic viability of the industry. The results of those efforts, the entire OSHA rulemaking process, and the opportunity for the construction industry to participate in that process will be discussed.

Jan 1, 1985

By R. V. Ramani

This volume is the fourth of a four-volume final report on research carried out under a contract from the U.S. Bureau of Mines on the development of a computer simulation model for surface mine reclamation planning. The other volumes are titled as follows: Volume I: Ore Reserve Estimation, Volume II: Dragline Model, and Volume III: Mine Coordinate Generator System. The Open Pit Materials Handling Simulator (OPMHS) was first developed" in 1971 and modified and updated in 1975. The present work is an update of the 1975 version and provides a direct link between the geology and reserves system and the various activities of the mining equipment in a mining system. Also, the modeling techniques in OPMHS/2 have incorporated a flexible method for describing various equipment (shovels, trucks, belts, trains, etc.), locations, their sequence of operations, place changes, and their interactions. These features allow for studying mining equipment selection, mining method analysis and reclamation planning. This report describes the Open Pit Materials Handling Simulator Version 2 (OPMHS/2). The report details the program features, operation, and application. Through an extensive set of appendices, the data input sequence, input variable definitions, sample data listing and program output are presented in detail.

Jan 1, 1985

By C. P. Boddy

One of the most difficult tasks a project manager will have in pre-mine planning is dealing with the mine site&apos;s hydrologic regime. Numerous federal statutes passed by Congress in the last decade have made the coal mining industry more responsive to the environmental impact during all phases of the mining process. Permitting these mines has dictated a cradle to grave approach in dealing with water related issues. This paper will attempt to explore the application of these technology- based laws and their direct application to the unique environment found in Alaska&apos;s interior regions.

Jan 1, 1985

By Theodore S. Jordan

The discovery of a major porphyry-type copper deposit on the Papago Indian Reservation in Pinal County, Arizona was announced by El Paso Natural Gas Company in 1968. The deposit, known as the Lakeshore Property, contained an estimated 470 million tons of sulfides and oxides averaging 0.75 percent copper. History and Geology of the area have been described by Harper and Reynolds (1969). El Paso subsequently&apos; entered into the agreement for joint development of the property with Hecla Mining Company, with Hecla as the operator. The ore body consisted of three types of mineralization: 1) Disseminated Oxide Ore, <1% Cu 2) Disseminated Sulfide Ore, <1% Cu 3) Tactite Ore, >1% Cu

Jan 1, 1985

By Willard C. Lacy

Survival of the mining industry as a viable economic entity in the United States is being seriously threatened by declining grades of ore reserves, rising operational and capital costs, and increased governmental taxes, restrictions, and subsidizing of third world competition. Discovery of major high-grade deposits is becoming increasingly unlikely. International competitiveness of the U.S. deposits will depend upon &apos;Yankee Ingenuity, &apos; innovations in mining methods, metallurgical treatment, and financial arrangements, and a viable national strategy. This will require not only effective management for control of operations, but management that encourages breakthroughs in technology, financing, labor relations, and in public and governmental understanding. The mine geologist and the exploration geologist both have important roles to play in all aspects of this fight for survival of the industry.

Jan 1, 1985

By Kyle Wightman

INTRODUCTION CRA Limited is the largest mining group in Australia by value of sales and the second largest company in Australia in terms of share market capitalisation. In the past 25 years, CRA, its predecessors and affiliates have been involved in a number of mining and further processing developments in Australia and elsewhere. Many of these have been financed using project financing techniques. These include Comalco&apos;s development of the Weipa bauxite deposits in Northern Queensland in the late 1950&apos;s, the Hamersley iron ore developments in the Pilbara region of Western Australia in the mid 1960&apos;s, the Queensland Alumina Limited alumina refinery in Gladstone, Queensland, at about the same time, and the Bougainville copper project in 1969/70. In the past three years CRA has again utilised project financing techniques to fund its Tarong steaming coal project in Queensland, the Blair Athol steaming coal project also in that State and CRA&apos;s interest in the Argyle diamond project in the Kimberley region of Western Austrlia. PROJECT FINANCE DEFINED Nevitt Definition Nevitt&apos;s is the most frequently quoted definition - "A financing of a particular economic unit in which a lender is satisfied to look initially to the cash flows and earnings of the economic unit as the source of funds from which a loan will be repaid and to the assets of the economic unit as collateral for the loan." Risk and Balance Sheet Treatment It is important to focus in more detail on two aspects of project financing, risk and balance sheet treatment. The assessment of the various elements of risk in a project and the sharing of that risk between sponsors and lenders is the most critical feature. At one end of the spectrum is full absorption of risk by the sponsor(s). This can be described as "on risk" or "on credit" or "full recourse" to the sponsor(s) and is effectively a corporate financing. At the other end of the spectrum the lenders absorb the whole risk in a non-recourse financing which is "off risk" or "off credit" for the sponsor. The other aspect is the sponsor&apos;s balance sheet treatment. If the balance sheet of the economic unit undertaking the project and the financing need not be consolidated into the balance sheet of the sponsor (because ownership does not exceed 50%) then the financing may be described as off-¬balance sheet. If consolidation is required then the financing is described as on-balance sheet. Most project financings involve some recourse to the sponsor, i.e. they are limited recourse. Very few are non-recourse or off credit to the sponsor. Limited recourse financings may be on-balance sheet although many may also be off-balance sheet insofar as consolidation is concerned. However, sponsor support may very well be a contingent liability to the sponsor and require disclosure by way of note to the balance sheet should consolidation not be required. CORPORATE FINANCE CONTRASTED A financing which is on credit or full recourse to the sponsor, whether it is directly borrowed or guaranteed by that sponsor, is a corporate financing. Lenders will tend to base their credit assessment on a historical assessment of the sponsor&apos;s activities and its financial results rather than an assessment of the project or a detailed assessment of the future activities and prospects of the sponsor. PROJECT FINANCE - A BORROWER&apos;S PERCEPTION Although CRA could choose to arrange all finance on a corporate basis (except perhaps for the very largest projects or acquisitions), project financing techniques provide a number of specific advantages which CRA has noted and which should be carefully considered by a project sponsor. Advantages

Jan 1, 1985

By D. J. Barratt

The application of autogenous and semi-autogenous grinding circuits in recent years has contributed toward substantial savings in capital and operating costs compared to conventional circuits, particularly for large scale copper and molybdenum operations. Such savings have been realized from the deletion of operating, maintenance, equipment purchase and substantial civil/structural costs associated with secondary-/tertiary crushing and screening, fine ore storage and conveying. In spite of the downturn in the copper- moly industry in North America, there is still an interest in autogenous and semi-autogenous grincting for copper-zinc, gold and silver ores and in the overseas market. Both single-stage and two-stage circuits are in operation. Primary circuits operate autogenously or semi-autogenously in either open or closed-circuit. Critical sizes are extracted and crushed for recycle in some cases (e.g. ABC circuit). Secondary grinding is conducted using ball mills or pebble mills.

Jan 1, 1985