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By D. Caiden, C. S. Covil, P. J. Chamley

The paper describes the background to alternative delivery models, drawing on international experience, and introduces Project Alliancing/Contract Partnering, common risks and risk sharing on tunnel projects. A plea for early contractor involvement in design is made before describing some whole life design implications for tunnels. The paper concludes with four short case studies; Channel Tunnel Rail Link in the UK, Hull Waste Water Tunnel in the UK; Island West Sewage Transfer Station in Hong Kong, and the New Southern Railway in Australia.

Jan 1, 2005

By Michael Feroz

Severe drought in the Colorado River Basin over the past 10 years has caused water levels to drop in Lake Mead by more than 113 feet. The current lake level is at elevation 1,112 feet mean sea level (msl). Lake Mead is the primary source of water supply for greater Las Vegas. Water for Las Vegas from Lake Mead is accessed through two existing submerged intake shaft and tunnel systems. If the water levels continue to drop in the lake, the Intake No. 1 will become inoperable below water level elevation of 1,050 feet msl. To sustain the current levels of water delivery to all member agen-cies in the southern Nevada region, the Southern Nevada Water Authority (SNWA) has decided to construct a third intake at a deeper depth in the lake to ensure better quality water and enhanced reliability.

By L I. Rozman

"There have always been development projects that fall short of expectations. In the last decade, we have seen more than the usual number of mining and oil/gas development projects taking significantly longer to develop and costing materially more than expected. The recent resource-equity market slump proves that investors are now far more cautious about investing new capital in the mineral and petroleum resources sector.What have we learned since 2005? Why have projects missed their targets? Why do investors often feel misled?Valuation of a project and the estimation of value is a more complex process than the evaluation of the merits of project development. The merit of project development can be clear from a prefeasibility evaluation, but this is no reason to skip the rigour of a feasibility study. The valuation of any project that is developed with any added risk should be discounted for this added risk.The development of a project impacts on other stakeholders, and the indirect cost of these impacts can have material implications for the cost structure, time and ultimate valuation of the project for its financial backers. The development of new projects (and thereby supply) can also have an impact on commodity prices, and therefore an impact on returns for financial backers.This paper will provide commentary on the author’s experiences and observations as a project developer and operator for 25 years, before becoming a project financier a decade ago.CITATION:Rozman, L I, 2016. Project evaluation and valuation – an investor’s golden rule, in Proceedings Project Evaluation 2016, pp 31–36 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 8, 2016

By John A. Wells, Leticia Conca, Kenneth G. Thomas

"Since about 2002 there has been significant capital cost escalation, not inflation, in the mining industry causing turmoil for successful project completion. Project capital costs have more than doubled and some cases tripled in this time period. This has rendered many projects to be economically challenged and in some cases not viable. In addition higher than expected operating costs have further adversely affected project metrics such as NPV and IRR. Capital cost increases for projects have been widely reported globally. This current paper reviews three items. Firstly, why such capital increases and the various components that make up capital estimates. Secondly, it looks at reasons why preliminary estimates, for example at scoping and pre-feasibility level, have been lower than the ultimate constructed costs. Such increases and differences in estimates have caused major problems for mine builders and have led to a general nervousness on the part of those providing project finance. Thirdly, what discipline is needed in project execution in an attempt to mitigate such capital increases. The paper will hopefully give a better understanding of the various issues and factors involved for those in the mining industry.INTRODUCTION The years 2012 and 2013 were a turbulent time for the mining industry. The European economic crisis, politics, metal price volatility and a wave of changes of CEO´s in some of the major mining companies all contributed to a challenging couple of years. Two issues stood out. First, the huge increases reported in the capital costs of projects, where increases of 100% - 300% were not uncommon and in some cases exceeded that during the first decade of the 21st century. Second, company write downs related to takeovers during the boom and the stabilization/correction in commodity prices. These have led to great uncertainty, made it difficult (or impossible) to raise project financing costs, contributed to the changes at CEO level and placed many projects either on hold or cancelled altogether. It is commonplace now to read of companies talking of reduced capital expenditure and making a complete review of their projects and operations to contain costs."

Jan 1, 2014

By D Macdougall, J Otto

The financing of large mining projects in developing countries is often achieved, at least in part, by limited-recourse financing methods. Financing agreements are affected by the basic accord that is struck between the host government and the sponsors of the project. It is concluded that governments and project sponsors should take into account the requirements of lenders when structuring such mineral development agreements to maximise the potential for attracting project financing. Lenders are likely to be most interested in aspects such as fiscal arrangements, calculation of taxable income and general accounting rules, royalties, transferability of payments/dividends overseas, corporate structure and control, staged development, financing, loan support and state guarantees/approvals, political risk, provisions for default, product marketing, settlement of disputes and environmental issues

Aug 1, 1994

By C Johnstone

Project management is not a task to be undertaken lightly. Mining projects generally present even more challenges due to ChinaÆs remoteness and complexity. Having experiences in project management in the West is certainly an asset, but China can present the uninitiated with any number of headaches. To undertake a project there can have many problems that are unique to China. For the last 15 years, China has seen an increasing number of foreign capital investment projects in the mining industry. Practices involved in mining project development have experienced/are experiencing an evolution. Since 1996, Sino Gold Mining Ltd has delivered three mines in China, ie Jianchaling Gold Mine, Jinfeng Gold Mine and White Mountain Gold Mine. Through the work, Sino Gold has established a solid knowledge base and a capable and skilful workforce in effectively undertaking mining projects in China. This paper is concerned with the experiences accumulated so far by Sino Gold in project management in China. An overall review is conducted regarding the reform of the mining project development in China. Opportunities and challenges are highlighted within the political, economic and culture context. Brief summaries of the development of the three gold mines are presented.

Jan 1, 2009

Paper written on project work carried out in partial fulfilment of BSc Engineering (Mining) The aim of this project is to determine whether certain pillars occurring within the no. 1 shaft and no. 2 sub-shaft ground are feasible for extraction. The extraction of these pillars is essential in prolonging the life of Kloof Main Shaft as its VCR resource becomes depleted. Extraction of these pillars will require a combination of designs and factors, with rock mechanics and ventilation being the main considerations. Primarily for the pillar extraction, an initial production target of150 kg gold, mine able in one year from commencement of ?opening up? was set. The planned target has been exceeded and the feasible pillars identified are expected to yield an additional 1 390 kg of gold to the shaft?s production profile. However, not all the required ventilation designs have been completed to date, the reason being that at the time of the project, many of the pillar areas were inaccessible and thus ventilation conditions are unknown. This project is therefore an ongoing process and will require further design once all targeted pillar areas have been opened up. A preliminary costing analysis of the pillar mining was performed and it was found that all targeted pillars with the exception of 38?61 pillar are profitable.

Jan 1, 2005

By L Lorenzen, H Muller

"Every year a large number of projects are evaluated by small listed and unlisted mining companies that are hoping to find the ideal project, which will catapult them from a mining junior status to that of a mid-tier mining company. Usually this includes finding the æidealÆ or ærightÆ orebody and then developing a process which will allow cost-effective recovery of the valuable metals and the production of a saleable product. These dreams are seldom realised and there are a number of good and obvious reasons for this. Issues that are generally high up on the agenda for the smaller companies are: cost of developing a project before the feasibility study stage finding a suitable, or optimum processing technology financing of the project dealing with risk.The most expensive part of the development process for the small miner is often the exploration side of the business and finding the æidealÆ orebody. However, finding the right orebody will not be discussed in this paper. The æidealÆ orebody does not necessarily solve the problems of the mining junior, as much of the uncertainty lies in the process required to recover and produce the final metal product. Once a mineralised deposit has been identified and the grade at least reasonably qualified, the development of a suitable process becomes the driver to convert the deposit into an orebody. This paper proposes that a small exploration company has a very limited opportunity to succeed if it does not do sufficient homework before it identifies the æidealÆ orebody. The risk profile for the small mining company, by its very nature, has to be different to that of a major company and as a result the opportunities often lie in managing different and often new process options, which may be the key to bring such projects on line successfully.CITATION:Muller, H and Lorenzen, L, 2012. Project selection and process development for mining juniors, in Proceedings Project Evaluation 2012, pp 149-158 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

May 24, 2012

By Steve Thoman

After the 1989 Loma Prieta Earthquake, the California Department of Transportation (Caltrans) initiated an overview of the Caltrans Bridge Design Specifications (BDS) and bridge seismic design practice in California. This overview is continuing under the direction of the Applied Technologies Council (ATC-32), to review and revise as necessary existing standards, performance criteria, specifications, and practices for design and construction of new bridge structures within California. The ATC-32 project began in August 1991 and is expected to be completed in 1995. Since 1990, Caltrans project-specific seismic criteria have been developed and implemented on the I-280 and I-480 projects in San Francisco. Caltrans and an independent seismic safety review panel continue to develop and implement these criteria on other projects. In 1991 and 1992, project-specific seismic criteria were used on the I-880 reconstruction project in Oakland. The seismic safety review panel considered the I-880 seismic design criteria a state-of-the-art methodology to ensure seismic safety against collapse of bridge structures subjected to a maximum credible seismic event. This paper highlights the 1992 "I-880 Reconstruction Project Seismic Design Criteria Review" report prepared by the Seismic Safety Review Panel and Caltrans Division of Structures and will compare pre-1989 BDS and AASHTO methodologies to the I-880 criteria.

Jan 1, 1996

By G. L. Smith

Central to the success of any mining company is the ability to manage capital investment effectively so as to ensure acceptable stakeholder returns within an overall strategic context. Critical to this process is the effective selection and implementation of a strategically aligned project portfolio that enables optimal resource exploitation while operating within mandated bounds and identified constraints. Consideration is given to the strategic long-term planning process, an investment prioritization methodology and specific tools and techniques based on the discounted cash flow philosophy.

Jan 1, 2007

Project-finance risk assessment is mature and approached systematically. Mining industry due diligence remains fragmented with specialists addressing different aspects of the project such as reserves/JORC, environmental impact, commodity market, even financial analysis/ modelling. Each professional has a natural tendency to believe that the risk factors they have examined are the key ones necessary to be reviewed, as if their review will stand in isolation from others in the way a project materialises. By first laying out the project risk categories and risk matrices, this paper examines the due diligence process with a keen eye to the risk assessment and overlap/interaction. Some cross fertilisation of due diligence techniques from other industry sectors is placed into the mining context. Six case studies are then presented with regards to due diligence features in each projectÆs feasibility review or financial information/ offering memorandum. A power case first shows the differences between the due diligence expectations of banks versus bond financings. Then some Australian and Indonesian mining development cases are analysed to see the due diligence learning points. Some of these were project/due diligence failures. The conclusion focuses on the value of a systematic risk assessment for project evaluation, all from the project-finance perspective.

Jan 1, 2007

By Francis Perron

The Directive 019 on mineral industry, which was officially adopted in 1989, is the main tool used by the Quebec Ministry of Environment for the environmental evaluation and control of mineral exploitation projects presented for approval. This document contain the environmental guidelines which must be met by all the mineral companies during and after exploitation. The Directive 019 also contain all the information required by the Quebec Ministry of Environment in order to fully analyse the environmental impacts caused by the mineral projects proposed to the Ministry for approval. The proposed modifications of the Directive 019 cover many new topics that were not addressed in prior editions, these include : water recirculation, groundwater protection, tailings management and post exploitation environmental controls.

Nov 1, 2002

Geology grads mine heated job market Salaries up 44 per cent in three years ?[Geology student] passed up a $100,000-a-year job at a mining company last December when he finished his degree in geology. The 24-year-old Canadian said he?s confident he?ll get a better offer.? Rob Delaney and Stewart Bailey, Calgary Herald, Published: Saturday, March 15, 2008 Massive shortages across the mining industry > Trades and operators are a large component > Technical people are equally hard to find > Students are in an excellent positions to secure exciting jobs > Experience is at a premium. Why?

May 1, 2008

Promoters for Soap Flotation of Phosphate Minerals

Sep 13, 2010

By C. Anim-Sackey, R. K. Amankwah

Some large-scale mining companies in Ghana have adopted proactive management strategies in dealing with small-scale (galamsey) miners who have encroached on their concessions. This has been mainly achieved by ceding portions of the concessions held by the companies to the Minerals Commission of Ghana for licensing to the small-scale miners. This development has created an amicable relationship between the mining companies concerned and the galamsey miners in their host community. Ghana’s small-scale gold and diamond industry The small-scale gold and diamond mining industry in Ghana has existed for many centuries as an informal sector. Since the regularization of the activities of small-scale mining in 1989, two types of small-scale miners have emerged — legal and illegal.

Jan 1, 2004

By Stephan Großwig, Karolina Nycz, Arne Kindler

"Commonly used anchor monitoring systems are mainly based on the use of anchor force meters. However, experience shows that the reliability of the display of force meters lowers over time. Other measurement and test methods like for example fibre bragg grating method require a comparison with an unloaded optical fibre and give only selective information about the bearing behavior. Moreover the obtained information has to be interpreted. In the following article, first measuring results of an anchor monitoring system based on measurements with optical fibre are presented. The new monitoring system is based on the Rayleigh technology and was used to test the load bearing behavior of the anchor grout body as well as for the evaluation of the grout body condition in concrete-damaging groundwater.INTRODUCTIONThe first fibre optic sensors came onto the market about three decades ago. Initially used as special solutions only in selected cases, now they have found use in almost all areas of technology, especially in areas, where electrical sensor systems reach their limits. The first application examples of spatially resolved fibre-optic sensors in the field of geotechnics have been in existence since the mid-1990s, in projects such as the assessment of the of radioactive repository location sites (Hurtig et al. 1994), for the monitoring of landfill sealing systems (Hurtig et al. 1995) or within the framework of the rehabilitation of mountain farming landscapes (Schreck et al. 1998).The company's first own works in the field of glass fibre measurement technology have been in existence since 1993. The first carried out projects were a monitoring at the Edertalsperre (Dietz et al. 2001), a monitoring with glass fibre tendon at a flood bridge in Carinthia as well as monitoring within the framework of the Storebælt crossing. In all cases, the structure was permanently monitored by means of individual-point measurements. Since 1993 various fibre-optic sensor solutions for geotechnical applications have been introduced to the market (Voet, Glötzl 1996, Hurtig et al. 1994)."

Jan 1, 2017

By Gordon DM

Tyres account for 25-30 per cent of the operating costs of large capacity haul units as used in open-cut mines.Tyre operating costs can be substantially reduced and often contained in real terms by applying knowledge that is now available.This paper describes certain specific advances in tyre management, namely batching, bias adjustment, cumulative plotting and the so-called "pressure-temperature" system of tyre pressure control, originated on the Mt Newman Mining Company's Newman minesite, and discusses the contribution that each has made to improving tyre management and reducing costs.

Jan 1, 1983

By Michael B. Cortie

Mesoporous gold sponge has the unique property of being both metallic and highly resistant to oxidation. It has potential application in catalysis, in bio-sensors, in optical coatings, in analytical chemistry and, as we show here, as the basis for a new kind of ultra-capacitor. Due to the cost of gold, the most probable niche for a gold-based ultra-capacitor would be in the high-power/high-energy regime, a region where gold would compete with devices based on RuO2. A high internal resistance limits the power that can be usefully drawn from existing carbon-based ultra-capacitors, and that this problem can potentially be overcome by gold-based devices. A simple proof-of-concept ultra-capacitor based on mesoporous gold is described and its behaviour during charge and discharge cycles examined. In this work a step change in the input or output voltage of the device was used as the controlling parameter. There was also a residual faradaic current resulting from traces of undissolved aluminium left over from the AuAl2 precursor used to make the sponge, and some charge storage due to polarization of the solution. Deconvolution of these three effects was not entirely accomplished, but an ostensible capacitance of about 7 to 14 mF/g Au was demonstrated. Further improvement from these early results seems likely.

Oct 1, 2003

By J. Gordon Parr, D. A. Whitaker, G. A. Yorko

High purity alloys of zinc with 25 per cent to 50 per cent aluminum, have been prepared. Mechanical properties of the as-cast and heat-treated alloys have been related to constitution, determined by x-ray diffraction and microscopic methods. Investigations include the effects of aging and of small nickel additions on the properties of the alloys.

Jan 1, 1960

In understanding the consequence of existing law, and the likely implications of its reform, it is necessary to comprehend the logic of the situation that the law provides individual decision makers and how that situation would be adjusted by reform. In particular, the way in which natural resources, including minerals, are used and managed is influenced by the definition and structure of property rights that the law provides. Property rights are enforceable claims to use or to benefit from resources. An example is a mining licence that allows its holder to extract minerals in a specified area. Property rights establish the structure of incentives, opportunities and constraints within which resource use decisions are made, ie the logic of the situation, and hence influence the use and management of resources. The extent and type of mining in New Zealand, for example, reflects the rights that miners have to extract minerals, and their rights to benefit from mining as against their duties to compensate landowners and pay royalties. This paper describes the characteristics of minerals that are relevant to the definition of property rights, analyses the implications of alternative property right arrangements and describes the existing situation.

Jan 1, 1988