Search Documents

By A. W. White

Introduction To discuss all the technical details of incorporation laws, security laws, underwriting procedures, codes, and ethics-as laid down by varous associations -would be impossible in the time which has been allotted to me. My remarks, therefore, will be made in a very general way and will naturally be coloured with experiences which my firm and I have had. There is a common expression that "money makes the mare go". I hardly have to mention here that the best prospect in the country is of very little value unless its prospects can be developed-and this requires large capital expenditures. The art and problems surrounding the raising of this money is a long and interesting story. Since by its very nature mining is risky, the appraising of its risks in the many phases of its development programme is continuous. Very few men-if any-and very few corporations -if any -can afford to take all the risk of mining. Because of taxation policies-and the very scheme of present-day living -the truth of this statement can be seen throughout the whole industry by a close examination of the records. Since this is so, it is essential that the mechanics of distributing risk on a sound, and equitable basis be known to those engaged in the business and to the investor or spectator who proposes to risk his funds in the industry. Perhaps the greatest stimulant to modern business activities has been the creation of corporate bodies. It is evident, from the number of charters being granted by various jurisdictions, that this method of doing business is becoming more and more important. A limited company -or corporation-can be defined as a fictitious person existing solely in contemplation of the law.

Jan 1, 1951

By M. Götze, P. Eysel

Over the last years, the importance of the assessment of environmental and social aspects as well as of issues of good governance has increased significantly in mining finance. For this, international standards as well as internal guidelines of the banks and other involved institutions have been established and continuously improved. Considering these standards and regulations, the banks can influence the sustainability of mining projects - and they have done so in the past -, mainly by implementing certain provisions and covenants in the loan documentation, binding the financing to the mining company’s adherence to the agreed sustainability standards. However, there are limits to the banks’ influence due to the competitive environment with other available means of financing. Nevertheless, the experience of the last years has shown that the standards and regulations bound to the financing by the banks help to lead the mining industry towards more sustainable projects.

Jan 1, 2011

By G. V. Campbell, O. T. Holdsworth, M. G. Nelson

A senior design project is required by all accredited mining engineering degree programs. Often referred to as the capstone of a student’s education, this project is expected to include all the important components of the preliminary economic assessment of a mineral prospect, including orebody modeling, grade and reserve estimation, selection of mining and processing methods, preliminary mine design, access and utilities, environmental compliance and reclamation, and financial analysis. Two of the authors (Campbell and Holdsworth) completed a senior project in 2021. They analyzed the Akie zinc deposit located in Canada. This paper summarizes the economic analysis portion of that project. The two primary objectives of this economic analysis were risk reduction and integration of economics and engineering. Addressing risk is important as risk is one of the primary concerns in mining investments. Risk reduction was the primary concern through the entirety of this economic analysis. Integration of financial analysis and engineering design was the first component of a risk reduction design. This allowed for financial and engineering design to be optimized in conjunction with one another. This produced benefits from both a financial and an engineering prospective. From a market, economic, and financial risk perspective, risk was reduced by forecasting multiple metal price scenarios, and then addressing the Akie project’s economic viability at each price point. Lastly, risk was address through consideration of nontraditional financing options. The project also sought to minimize financial and human capital risk, by proposing mutually beneficial cooperative social relationships and favorable work, schedules. Description of that work is not included in this paper.

Mar 2, 2022

By Parker JB

The Channar Iron Ore Mining Project (the Project) is a joint venture involving the Hamersley Holdings group (Hamersley) and the China Metallurgical Import and Export Corporation (CMIEC). The Project represents the first new iron ore mine development in Australia since 1971/72 and is the first major overseas mining investment by the People's Republic of China (PRC). The Channar mine is being constructed in the Pilbara region of Western Australia and will operate for more than 20 years supplying the PRC with 200 M tonne of high grade iron ore. The Project is configured to take advantage of Hamersley's existing production and support facilities. The Joint Venturers will invest A$280 million to achieve an initial production rate of 3 M tonne/yr and an additional A$120 million over the next 8 years to achieve full capacity of 10 M tonne/yr. Financing the Project to meet the requirements of both Hamersley and CMIEC, with the dependance of the Project on Hamersley's infrastructure, and in a depressed iron ore market, required an innovative financial structure to be arranged in a limited period. This paper describes both the financial structure and its implementation, and draws a number of conclusions regarding the financing of resource projects.

Jan 1, 1989

By Christian F. Baiz

INTRODUCTION Industrial minerals can have similar financing requirements to those needs of metaliferrous and coal mining projects. One of the outstanding differences is the understanding of the many different markets that these industrial minerals represent. There are in excess of 30 principal industrial minerals ranging in terms of annual production from the largest quantity such as sand and gravel, to possibly the smallest quantity of production of a legitimate industrial mineral which may be defined as industrial and rough gem diamond. (See Tables 1 and 2) Project finance techniques, analytical methods, and information requirements are covered elsewhere in this Chapter and Chapter 10. Some comments on equity finance aspects follow. EQUITY AMOUNT The amount of equity in a financing transaction provides a cushion to the lender in case the project runs into trouble. Generally speaking, the greater the amount of risk in a project, the more equity a lender will require. The amount of cash equity in a project financing transaction is between 25 and 40 percent. The amount of leverage (debt/equity) is negotiable based on such factors as the strength and extent of the sponsor's undertakings, of the project's economics, and the term of a strong sales contract. Naturally, a borrower seeks to obtain d loan with as little equity required as can be negotiated. Zero percent equity is usually associated with a take-or-pay contract (a hell-or-high- water unconditional commitment under which the purchaser must pay for the commodity as though it were shipped regardless of whether it is actually mined or shipped) with a financially strong corporate entity i.e., the parent company or an end user. As a take-or-pay contract is tantamount to a guarantee of payment, the banker views the credit basis of the loan as being other than the borrower's mining operation and therefore will analyze the creditworthiness of the institution purchasing the commodity on the basis of its corporate balance sheet. Do not confuse a take-or-pay contract with a take-if- tendered or take-and-pay contract. Another means in the United States of obtaining zero percent equity is the carved out production payment financing, typical of coal mine financing. This involves the sale, or conveyance, by the owner of the mineral property of a production payment to a nominally capitalized company. The nominally capitalized company is formed solely to buy the production payment and usually borrows 100 percent of the purchase price from a lender. Equity amounts of 10 to 20 percent generally are found in transactions which employ techniques such as an advance sale or a subordinated lease/loan. These agreements are viewed as quasi equity by most banks for several reasons. First, the proceeds represent a cash infusion early in the project's life - usually prior to the bank lending any funds. Thus, the repayment schedule is "behind" that of the bank debt. In the case of an advance sale, repayment is in the form of a long-term supply contract with favorable terms, usually priced close to the mining operation's costs. There is also usually a requirement that all costs of the project be paid for by the loan or equity, often making the sponsors financially responsible for any cost overruns. Cost overruns are a major risk in any project, large or small, and are often due to unforeseen factors such as wildcat strikes, a piece of faulty equipment, or any event which delays completion, e.g., remote location, weather, etc.. . The question of how overruns are covered can be negotiated. For example, in addition to the original debt/equity ratio of the project, there can also be a cost overrun ratio that will

Jan 1, 1985

By Christian F. Baiz

Industrial minerals can have similar financing requirements to those needs of metaliferrous and coal mining projects. Although, one may see many similarities in the fundamentals of the various risks that must be evaluated in lending to any specific project, one of the outstanding differences is the understanding of the many different markets that these industrial minerals represent. There are in excess of 30 principal industrial minerals ranging in terms of annual production from the largest quantity such as sand and gravel, to possibly the smallest quantity of production of a legitimate industrial mineral which may be defined as industrial and rough gem diamond. If we assume that it is necessary to finance independent projects of ore bodies of industrial minerals for development, the financing techniques are similar to the fundamentals that we would use for financing coal projects or metaliferrous deposits. Therefore, let's begin by redefining project financing in the traditional banking or private sector area, and then in the later development of this paper, we will apply these techniques to industrial minerals in general and cite it with several specific examples.

Jan 1, 1982

By William L. Young

I think I should let you in on one of Canada's best-kept secrets, if you will promise not to tell it all over the place. Believe it or not, good, honest, enterprising capitalism is still alive and flourishing north of our common border, and I am living proof that capitalism is still working for the little guy. My personal story of mining development in Canada isn't all that rare -- you've probably heard something like it from other areas and other days several times -- but my case brings it up-to-date. I would like to Tell you briefly the history of Northumberland Mines Limited, a contemporary case of individual enterprise getting a mining operation underway. And if I can do it you probably can too.

Jan 1, 1981

By Barrie A. Wigmore

There are two aspects of financing western coal development -- whether there is going to be enough money to finance the prospective large development of the industry, and the specific techniques of raising money for that development. To take the first question of whether there is going to be enough money around to finance your industry, I think it is quite clear that the restrictions on the development of western coal are going to be non- financial. Environmental impact problems are creating the greatest delay in coal mine development, at the moment; but getting enough personnel, mining equipment, railroad equipment, and failure of the Department of Interior to act on leasing federal coal lands all appear likely to create significant bottle- necks in the development of western coal -- larger bottlenecks than financing. Financing appears straightforward for the industry. There are many projections of the financing required to meet Project Independence goals. The National Academy of Engineers estimated that development of 500 million tons per annum of western coal would be necessary by 1985 to meet the Project Independence goals which might require $20 billion of capital spending. It is generally agreed that 500 million tons a year is not a realistic possibility. Carl Bagge?s estimate of production of 250 million tons a year by 1983 appears a more reasonable projection. Development

Jan 1, 1976

By Douglas B. Silver

The key to unlocking value is to find opportunity where others have missed it. How does a company find value in a thoroughly explored asset? This article explores the approach taken by one company and the results it achieved from working this problem. The town of Shafter is located on a small bend in the road in west Texas' Big Bend Country. Its past emulates the glory days of so many other mining camps. A discovery was made, fortunes were built and World War II shut down the operation. The Shafter deposit continues to be one of the larg¬est undeveloped primary silver deposits in North America. Gold Fields Mining Co. recognized the area's potential in 1977 and embarked on studies to reopen and develop the district. Gold Fields spent $16 million on the Shafter project. It drilled more than 86,240 m (282,940 ft) in 475 holes, sunk two shafts and developed 1,550 m (5,100 ft) of underground workings. Today, the mothballed 447-kW (600-hp), single-drum Nordberg hoist and permanent production-type, single-compartment headframe continue to crown the shaft. Other buildings onsite house compressors, mine pumps, spare parts, drill core and other supplies. All these items look as though they arrived yesterday. By 1982, Gold Fields had completed an extensive feasibility study with ambitions to. construct a 1.36-kt/d (1,500-stpd) agitated cyanidation mill and base metal gravity circuit. Reserves at Shafter stand at 4.23 Mt (4.67 million st) grading 193.5 g/t (5.65 oz/st) silver. Gold Fields planned to produce 71.5 t/a (2.3 million oz/year) of silver at a head grade of 196.2 g/t (5.73 oz/st) silver with a 77% recovery rate. Cash costs were projected to be $5.54/oz with an anticipated initial and total capital cost of $46.2 million and $51.3 million (1984 dollars), respectively. The study assumed a silver price of $8.60/oz that has not been seen since the Hunt brothers quit buying silver. When silver prices declined, Gold Fields put the property up for sale.

Jan 1, 1999

By H J. Stedman

A Transient Electromagnetic (TEM) geophysical survey was trialled in Bowen Basin Permian coal measures overprinted by Cretaceous intrusion. The trial’s intention was to compare whether TEM could assess residual coal more accurately and economically than drilling.TEM results were promising but had limitations. TEM did not compare to drilling for defining coal thickness or relative level definition. However, TEM resolved conductive anomalies laterally; providing a qualitative picture of remnant coal.Three material types and associated conductivities occur within the trial area: overburden (sandstone/siltstone), intrusive sills and heat affected coal.Ground conductivity was analysed by measuring decay of residual current within the TEM loop. Fast decay related to resistive overburden and intrusion, attenuated decay related to conductive coal.Generally speaking, carbon content governs coal resistivity where good quality, low ash, bright coal is more resistive relative to dull, high ash coal. Though in the trial area, relative to intrusion and overburden, coal was found to be the most conductive of the three materials.By modelling conductive anomalies, a general picture emerged of remnant coal regions. Subsequent highwall exposure reconciled with conductive TEM anomalies.CITATION:Stedman, H J, 2017. Findings from a transient electromagnetic trial for heat-affected coal, in Proceedings Tenth International Mining Geology Conference 2017, pp 233–238 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 20, 2017

By Mutombo Nombe, Avimanyu Das, Rick Honaker

Enhanced gravity separators (EGS) provide a more efficient separation than froth flotation when cleaning coal in the 150 x 25 µm particle size range. To improve the performance of an EGS unit, air bubbles were injected into the feed stream in an attempt to decrease the apparent density of the coal particles due to the formation of bubble-coal particle agglomerates. Air injection had a significant impact on operating characteristics and separation performance. Coal recovery was increased by 10 to 20 absolute percentage points while a 2 percentage point drop in the minimum product ash content was also achieved.

Jan 1, 2005

Fine Gravity Separation in the Reflux Classifier, Exploiting a High Shear Rate, Laminar Flow Mechanism The Reflux Classifier is used in the gravity separation of particles over a broad range of particle sizes. The device consists of a fluidised bed zone, with a system of parallel inclined channels above. The inclined channels provide a significant hydraulic advantage over conventional fluidised beds via the so-called Boycott Effect (Boycott, 1920). This paper describes a new advance in fine gravity separation based on the high shear rate and laminar flow profile that arises when closely spaced inclined channels are deployed. As reported recently (Galvin et al, 2009a), a powerful density based separation mechanism develops from this arrangement, suppressing the effects of particle size. In this paper we focus on two areas, firstly the application of the separator in the laboratory for batch fractionation of particles of varying size and density to determine the grade recovery curve and hence the liberation, and secondly the step change in separation performance achieved on a continuous steady state basis when closely spaced inclined channels are used. The variation in the separation density with particle size decreases significantly, and the Ecarte Probable Error (Ep) remains at low levels over a broad size range.

Sep 13, 2010

By Graham Davey

"Low speed stirred milling has been employed for many years in the metalliferous and industrial minerals industries. High speed stirred milling is a relatively new method of grinding in the metalliferous process industries. However it has been it has been in wide spread use in the industrial mineral field for over 30 years for various minerals. Many existing metallurgical operations are looking to maximize economic return from existing deposits, requiring new thinking and technologies. By combining low speed and high-speed milling fine and ultrafine grinding efficiency and operating costs can be improved.The correct selection of different fine grinding technologies is covered, when each mill is applicable and when a combination of the VERTIMILL® Grinding Mill and SMD provides the best economic solution.INTRODUCTIONUltra-fine grinding of minerals has been in wide spread use in the industrial mineral field for over 30 years. Within the last 10 years the metalliferous industry has shown interest in the ability to produce ultrafine particles, as chemical, physio-chemical and physical separation processes have advanced to be able to treat ultrafine metalliferous particles. Also as the primary mineral deposits, around the world are depleted, new more difficult deposits must be mined. Existing operations are also looking to maximize economic return from existing deposits, requiring new thinking and technologies.The traditional approach for gold containing refractory material has been to liberate the locked gold by chemically destroying the pyrite through oxidation. Roasting, pressure oxidation, and bacterial oxidation all employ various degrees of temperature, pressure and catalysis to react the pyrite with oxygen to produce iron oxide and sulfur by-products. However all of these methods are economically impacted due to specific operational added requirements and emissions controls. Pressure and bacterial oxidation have very high capital and operating costs."

Jan 1, 2006

By The Staff

WE were requested to make a digest of our original grinding report, Fine Grinding Investigations at Lake Shore Mines. This digest is much easier to read than the original report, but it lacks the experimental 'evidence' found in the first report which, in many cases, is much more interesting and educational than the conclusions derived from it. In the course of rewriting the paper, we noticed several new angles on the test data which had not occurred to us previously. From the data included in the report and other tests not published, calculations were made which indicated a line of new test work. These tests, among other things, more than suggest a technique for designing the length of mills, the position and number of classifiers, and the total loads a mill should carry.

Jan 1, 1941

By Augustine O. Orumwense, Micheline Boisclair

"The use of stirred mill to complement tumbling mills in grinding fine grained minerals is increasingly becoming an attractive processing option. Parameters such as agitation speed, grinding media type and size, feed pulp density, and grinding time were studied in order to elucidate their impact on stirred milling. Test results showed that the parameters have a profound effect on stirred mill efficiency and operating cost. A comparative test with a tumbling ball mill was also made and the specific energies of both mills in fine grinding were analyzed. A difference of over 40% in energy savings particularly when the product size is smaller than 20 µm was obtained with the stirred mill.INTRODUCTIONIn industrial processes where very fine and ultrafine particles are required such as in chemical, ink, food, paint and lacquer, pulp and paper, plastics, pharmaceutical, metallurgical and ceramic industries, the use of stirred mills for grinding is well established. Mineral processing plants are gradually shifting focus to the use of stirred mills for fine grinding and /or regrinding purposes as the target liberation size gets very small. A number of plants processing finely/sparsely disseminated ores are known to have adopted stirred milling technology for their fine grinding needs (Enderle et al., 1997; Harbort et al., 1999; Gao et al., 2000; Davey, 2003 & 2006; Pease et al., 2006).There are different kinds/designs of stirred mills available on the market but, all can be divided into two sub groups namely fluidized and non-fluidized types. The non-fluidized stirred mills consist of Tower mill, Vertimill, Sala agitated mill (SAM), and ANI-Metprotech (SVM). These mills are characterized by their low-speed and the use of fairly coarse grinding media size, 3 – 20 mm. Hence, they are mostly suitable for relatively coarse grinding application. The fluidized type includes the Isamill, Netzsch mill and Stirred mill detritor (SMD). These mills have a characteristic high agitator speed, use fine grinding media size of 0.5 – 5 mm, and are employed in very fine grinding operations. The superior fine grinding capability of stirred mills is attributable to two main process parameters, which are the use of fine grinding media and a high mill speed."

Jan 1, 2008

By A. G. Doll

"Many power-based grinding models exist, and most operators are familiar with Fred Bond's ""third theory"". Bond's model is most commonly used to describe primary and secondary grinding to product sizes above, for example, 100 µm. Operators sometimes use Bond's equation to describe grinding in situations where it is not appropriate, such as fine grinding below 50 µm. Using an alternative model would be a better choice in this situation.Bond's equation is one in a large family of models. Related equations better suited to fine grinding include the “signature plot”, Von Rittinger's model and Charles' equation. These models have a similar form to Bond's and can be fit to industrial regrind mills and laboratory tests using the simple regression tools in the charts of computer spreadsheets. Operators will find that fine grinding calculations are both easier and more accurate when using the alternative equations to fit their regrind milling surveys or when performing laboratory regrind mill scale-up for plant design.None of these models are new: Charles' equation was published in 1957 and Von Rittinger's model was proposed in 1867. A quick refresh how to apply these equations can turn these oddities from the undergraduate curriculum into useful tools for plant optimization. They can be fit to any type of mill including stirred and tumbling ball mills.IntroductionBuilding a case for fine grind modelling requires reviewing some theory before building a framework for doing fine grinding calculations. The actual calculation procedure recommended is easy and can be applied by plant metallurgists. Don’t be frightened by the theory; the end result is reasonably simple.The observation that mineral breakage is related to the absorption of energy is usually attributed to Von Rittinger (1867). Lynch and Rowland (2005) describe that the ability to empirical test and calibrate energy models of breakage didn’t exist until the widespread adoption of electric motors in the mining industry during the 1930’s and 1949’s. A series of technical papers published by the Allis Chalmers company during the 1940’s demonstrate that they were attempting to do such a calibration using Von Rittinger’s model which is usually stated as: “the energy consumed in the size reduction is proportional to the area of new surface produced.”"

Jan 1, 2017

By K. F. Unrug

In the paper a numerical modeling method is used for evaluation of a roof support system, which is commonly used in the US coal industry. The effectiveness of mechanical roof bolting with or without, header boards and steel straps are compared. This analysis takes into account the response of a shaly roof to changing environmental conditions in mines related to the seasonal changes in temperature and humidity of the intake air. Discussed are principles of roof support in coal mines and based on them a critical evaluation of header boards interaction with bolts and roof itself is carried out. Header boards create a soft inclusion within a much more stiffer system comprising bolt-rock. As an alternative to header boards, steel straps are analysed and corresponding results are presented. It is demonstrated that application of steel strap is beneficial from the stand point of stress distribution and maintaining tension on roof bolts. The laboratory investigations and modeling work previously undertaken by the authors, clearly indicate the detrimental effect of header boards on effectiveness of roof bolting. There are significant practical implications of the research considering that header boards are commonly used in mines. This practice has been probably originated from the wooden support used by mining in "pre-bolting era?, and it has stayed with coal mining based on tradition more than principles of engineering design. It is demonstrated that header board$ are detrimental and actually contribute to development of roof problems.

Jan 1, 1989

By K. C. Viveros, R. R. Ambriz, C. García, F. De Villèle, A. Talha, D. Jaramillo

Cold hole expansion on base metal, weld metal and heat affected zone of 6061-T6 aluminum alloy welds was simulated by means of finite element method. Three dimensional compact test models with a previous fatigue crack length with a relation of ??= a/W = 0.3, were used to analyze the hole expansion process. Considering the local mechanical properties for each zone of the welded joint, the optimal expansion degree (1.64 to 2.46 %) was determined. The residual stress field, through thickness, after the expansion process in all welding zones, were correlated with the crack opening displacement obtained by finite element analysis. It was observed, that compressive residual stress fields for a post-expansion, in different crack lengths, provided a crack closure mechanism for base metal, weld metal and heat affected zone. Contrary, the crack remained open when residual stresses are positive. The results are given as tangential stresses versus distance from the edge of the cold expansion and crack opening displacement as a function of applied load.

Jan 1, 2014

By Youliang He

Twin-roll casting is an integrated casting and rolling process that involves the continuous solidification of a melt and the plastic deformation of the solidified metal between two rotating rolls. Computer modeling is a valuable tool to help engineers understand the metallurgical process during twin-roll casting. However, commercially available software can only model either the fluid flow/heat transfer of the melt or the plastic deformation of the solid, but not both. In this study, an object-oriented finite element program was developed to simulate the steady-state fluid flow, solidification and plastic deformation of an A7,31 magnesium alloy in a horizontal twin-roll caster. The melt, the mush zone and the solid were treated as a generalized Newtonian flow in an Eulerian reference frame and different constitutive equations were employed to describe the material behaviours. The effect of operational parameters on the solidification process was discussed based on the simulation results.

Jan 1, 2010

By I. Mc Dougall

Finite element models were generated of two submerged arc furnaces of different geometries. A 48MW circular furnace and a 68MW 6-in-line rectangular furnace were studied. The electrodes, raw material, slag and molten metal were included in the model. ANSYS/Multiphysics was used to predict the current density distribution in the electrodes, raw material, slag and molten metal as a result of the three phase AC current. The effect of the electrode immersion on the current path was studied. The ?proximity effect? caused a pronounced asymmetry in the electrode currents in the circular furnace, whilst the electrode currents in the rectangular furnace exhibited radial symmetry. The current distribution in the melt in both furnaces indicated that the bulk of the current flows between phases. The current density is greatest between electrodes. Results were compared to qualitatively similar published work, operating experience and results of furnace dig-outs.

Jan 1, 2007