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By L A. Martinez Tipe, J McKibben, S Barry

"Metal prices are central to a mineral investment decision and have a profound impact on the financial performance of companies in the mining industry. At its most basic level, metal prices are influenced by the disequilibrium between international metal volume supply and demand. That is, the commodity price is a regulator that equates international metal supply and demand where inventories act as a buffer between the emergence of this disequilibrium and its dissolution through a price change.From this viewpoint, mining companies are required to forecast metal and bulk commodity prices when evaluating minerals projects through discounted cash flow (DCF) analysis. While supply-demand models are instructive, many companies use historical prices, spot prices, futures/forward pricing and consensus opinion (or a combination of all of these) to develop price forecasts.This paper discusses the definition, fundamentals and differences between futures/forward and consensus pricing and the appropriateness of each in a DCF model for mine project economic evaluation.Our results demonstrate that great care is required when using either futures/forward or consensus pricing and that the decision to use one rather than the other requires consideration of other important elements in the DCF model (ie the risk-adjusted discount rate).CITATION:Martinez Tipe, L A, McKibben, J and Barry, S, 2016. Metal prices and the differences between forward and consensus pricing – which one is better for use in a discounted cash flow model?, in Proceedings Project Evaluation 2016, pp 149–158 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 8, 2016

By Erwin K. Roesner

The difficulties encountered while sinking deep shafts for Potash Mines in southern Saskatchewan have been the subject of several papers in the past. Geological and hydrological conditions of the strata overlying the potash deposits require special techniques for ground and water control during shaft sinking. The easily soluble potash ore requires the lining of these shafts to be virtually watertight to assure long term and safe operation. This paper describes the construction of the most recently completed potash shaft for the Potash Corporation of Saskatchewan. The shaft was designed and constructed by Thyssen Mining Construction of Canada Ltd. and it is located near Lanigan, approximately 110 km east of Saskatoon.

Jan 1, 1980

By Nathan A. Tiner

Sulfuric acid anodizing process is extensively used in many industrial and consumer products to provide corrosion resistance to aluminum alloys. The anodic coatings produced consist of amorphous alhnum oxide with a pornus structure which is easily sealed and colored with dyes. The coatings may contain defects due to surface flaws, canposition and microstructure of the aluminum alloy, and/or due to the anodizing process conditions. This paper will describe the techniques used in anodizing process, various defects which may be produced in anodic coatings and the methods to control them.

Jan 1, 1992

By D. W. Agers

This paper is an extension of previous work evaluating a new extractant, LIX®-64, for recovery of copper from dilute acidic solutions. Large scale pilot plant operations have confirmed the technical and economic feasibility of the process and, with minor exceptions, scale up parameters obtained by previous laboratory work. Operating problems encountered in the pilot plants are discussed. Design parameters for-scale-up to commercial plants are presented and discussed along with a revised capital cost estimate. The future pilot program is discussed, including minor design changes and the effect of entrained organic on dump leaching efficiency.

Jan 1, 1967

By William Hissem

The topics in the title line of this article are desirable and applicable to entire industries that exist outside the realm of the ISEE’s readership. But the issues I will discuss herein are specific to those who drill, blast, and excavate rock as part of their business. Civil and site construction projects, mines, and quarries specifically comprise the group who will benefit from this discussion.

Jan 1, 2014

By L D. Redden, M G. Nelson

Mechanical flotation machine design is typically based on hydrodynamic analysis, with scale-up calculated by geometric proportionality. End users often specify and purchase machines on the basis of retention time, characterised by the æ$/m3Æ approach; they may also consider the manufacturerÆs installed base. In some applications, end users also consider specific energy and the impact of energy consumption on operational costs. In other cases, a decision may be based on machine type (forced-air versus self-aspirating) and perceived metallurgical or operational advantages of one machine type over the other. With regard to metallurgical performance efficient bubble-particle contact is very important and is primarily influenced by two factors:the concentration and size distribution of bubbles in the machineÆs contact zone (the volume enclosed by the disperser); and the number of times that slurry is pumped through the contact zone. The second factor is a function of the machineÆs pumping rate and its retention time. Field data show that pumping efficiency is independent of aeration rate. In this paper, a new dimensionless number for the characterisation of flotation efficiency is presented. The contact frequency number (CFN) is defined as the number of times a given volume of slurry passes through a machineÆs active contact region, and is given by: CFN Qp/Qf, where:Qpis the pumping rate through the contact regionQfis the volumetric feed rate to the machine

Jan 1, 2005

By J. D. Vincent

The Mission By-Products Plant at the Mission Concentrator of the American Smelting and Refining Company, some 20 miles south of Tucson, Arizona in the Twin Buttes mining area, has been in operation slightly over a year. The plant produces a molybdenite concentrate a copper concentrate and, at times, a zinc concentrate. An intensive test program of over three years was conducted at Mission to make the recovery of molybdenum economic. Briefly it was found necessary to make a scavenger concentrate in the copper mill before it was possible to recover economic quantities of molybdenite. By so doing there were resulting additional recoveries of copper, silver and zinc. This program resulted in the design and construction of the existing plant. A paper by the authors discussing the test work and the design was presented at the, October 1965 meeting of the American Mining Congress in Las Vegas, Nevada, by Mr. Wayne Bossard.

Jan 1, 1966

By Sumantra Bhattacharya

The per capita energy consumption in India is 510kgoe/year, the global average being nearly 1818kgoe/year. Correspondingly low is the per capita CO2 emission at 1.25t against the world average of 4.39t.65-70%, at times more, of India?s power generation from about 190,000 MW installed capacity, is however coal fired.India therefore has to secure diversified sources of energy and solar power is increasingly being looked as the real alternative to the existing over dependence on coal. To ensure sustainable solar power it is essential to secure its raw material base that is ?silica?, hitherto considered as ?minor minerals?. That calls for immediately addressing the issues of land availability, solar power cost, developing a dynamic inventory of silica containing minerals, appropriate processing technology and strong regulatory framework for sustainable mining and processing of all silica rich minerals. Keywords: silica, silicon, Thar, power generation, India, quartz, solar power

Sep 1, 2012

By Ing. Ludwig Schlebusch

The significant growth of the world population and its demand for an increasing standard of living leaves no other choice than continuously augmenting industrial production and making available steadily greater quantities of raw materials at still better qualities. Therefore, any raw material has to be utilized to the greatest possible extent and processed at optimum economy on large mechanical equipment. The layout of processing facilities of large throughput rates can be based on multiple or single lines. The latter enables the application of large machines of optimum size. Proven equipment for homogenizing, classifying, separating superfine material, sorting and dewatering are-now available in optimum sizes. By the use of these large machines operating cost of pit coal preparation plant can be significantly lowered by reducing the specific requirements regarding space, capital investment, energy, operation and maintenance.

Jan 1, 1980

By Charles R. Marek

There is an ever-increasing need for quality construction materials to provide the necessary housing and transportation facilities required for the protection and movement of people and goods. By the year 2000, requirements for housing in the United States will have doubled due to population growth. Requirements for transportation facilities in this same period will also have increased substantially. Further, all existing facilities for both housing and transportation will require substantial maintenance of one form or another. Aggregate is the basic material of the construction industry. There is some occurrence of aggregate source material in virtually every state of the United States, and in every country in the world. United States reserves of commercially useable aggregate have never been systematically estimated and are probably so vast as to be incalculable.1 However, in many areas its existence is largely negated by inaccessibility. Often it is lodged deeply or intricately in the earth or it is too distant from markets to offer a desirable "return on investment" under the present economic structure. Other factors that prevent its utility are the occurrence of small scattered deposits that individually are too small to justify the necessary capital investment for exploitation and collectively are too widely disseminated; also, the aggregate nay be deficient in certain desired chemical or physical qualitites.1

Jan 1, 1974

By P Cochrane

Our ability to generate information and transport it about the planet on super highways of optical fibre is about to change the way in which we communicate, work and live. There is not a single aspect of our future that will go untouched by the communication and computing revolution that Is now upon us. The change we are about to witness will overshadow the impact of the printed word, industrial revolution and physical transport. The next major wave of information technology (TT) development will focus on the delivery of information and experience on demand, in the right form, at the right time, at the right price, to fixed or mobile terminals anywhere, over networks of optical fibre, radio, satellite and optical wireless. Bandwidth, distance and time will no longer be significant cost elements as service and access become dominant.

Jan 7, 1996

By M. E. Lombardi

IN comparison with the mining industry the petroleum industry is new and inexperienced, and until now it might have been called the fortunate industry. Its great good fortune consisted in two things; a bountiful supply hidden by nature in the rocks of the earth, and a steady and large increase, during the past twenty-five years, in the demand for petroleum products. It is a remarkable fact that consumption of gasoline in the United States has shown an increase every year since automobiles first became important, and even in 1930 there was a four per cent increase, in spite of the universal depression; the estimated increase if the times had been normal, was ten per cent. This industry has, therefore, not passed

Jan 1, 1931

By A. Galley, R. Tosdal, F. Robert

The Canada Mining Innovation Council (CMIC) Exploration Innovation Consortium developed a 10-year business case for developing new discovery criteria, exploration techniques, and better data management and analysis to improve exploration success in deep, remote, and covered terrains. Within this context, the CMIC devised a five-year project proposal to create improved multiparameter exploration tools to detect ore systems and more efficient vectoring toward high-grade mineralized cores. The Footprints project was approved March 2013. More than CAD$13 million funding was provided through the CMIC-led joint sponsorship from 30 companies and the Natural Sciences and Engineering Research Council. Consistent industry leadership and integration of dedicated industry and academic expertise has the project on track for reaching its well-defined objectives.

Jan 1, 2014

Diversity; what a wonderful topic. Diversity; the condition or quality of being diverse, different, varied to the point that the very word diversity means different things to different people. As one example of diversity the American Science Magazine (April, 1994) contained a light-hearted interview with Dr Noitall who was pushing his case for diversity.

Jan 1, 1996

More than 400 academic, Government, and industry representatives attended the third symposium on ash utilization and technology held in Pittsburgh, Pa., March 13-14, 1973. Sponsored by the American Public Power Association, Edison Electric Institute, National Coal Association, National Ash Association, and Bureau of Mines, the symposium Featured 26 formal presentations by leading experts from Europe and the United States on all major phases of ash production, utilization, and research. Abstracts of all the papers are grouped right after this introduction, and the full symposium proceedings follow. Sponsoring organizations and their chief representatives were the National Coal Association, James R. Garvey, Bituminous Coal Research, Inc.; Edison Electric Institute, C. E. Brackett, Southern Electric Generating Co.; American Public Power Association, Herbert Blinder, Columbus (Ohio) Electricity Division; National Ash Association, Inc., James N. Covey, Rochester Gas and Electric Corp.; and the United States Department of the Interior, Bureau of Mines, William L. Crentz.

Jan 1, 1974

Determining the environmental consequences of green field projects is becoming an increasingly important component of new projects. Feasibility studies are regarded by potential investors as incomplete if a comprehensive Environmental Impact Assessment (EIA) has not been completed. These EIAÆs need to meet various local and international requirements in order to achieve bankability. Heavy mineral mining projects are often located in ecological sensitive coastal zones, and bring with them a suite of social impacts in the mainly developing countries within which they are usually located. This paper draws on experience gained in undertaking EIAÆs for heavy mineral mining projects in Kenya, Mozambique and South Africa, and uses these case studies to identify potential pitfalls. Important lessons include the need to initiate the EIA process as early as possible in the project, in order to develop management systems to mitigate the environmental impacts of exploration. Close and on-going consultation with affected communities is also seen to be critical to the success of the EIA. Proactive participation on the part of the environmental consultants with the project team and all interested and affected parties (IAPs) is important. An EIA commissioned later in project planning makes it difficult for the EIA to contribute in a positive manner to the project. Early engagement with environmental consultants allows the environmental assessment to develop from a report to an actual process, and to become fully integrated with project planning. The proviso is that an initial æfatal flawÆ assessment is required to identify any potential æshow stoppersÆ, in order to meet one of the important objectives of EIA, namely an assessment of whether or not the proposed project is the preferred development intervention in the study area. For more controversial proposals this may require the commissioning of a Strategic Environmental Assessment (SEA), which circumvents some of the limitations of the project level EIA. Whilst confidentiality is a constraint to full disclosure, an open participatory approach to public consultation is essential to add credibility to the EIA process and to gain, at least, the acceptance of the process from the majority of IAPs. Full disclosure is encouraged by organisations such as the International Finance Corporation, who acknowledge that good public consultation costs a lot of money, but bad public consultation costs a lot more! An open approach to disclosure presents understandable difficulties for proponents, as they are required to give up some of their control over the project, and to trust the social scientists engaged in the process. However, independence in the EIA process is critical to its success. This paper will highlight these and other issues by drawing on five case studies to identify lessons learnt, and explore the above themes in more detail.

Jan 1, 2001

By Regis F. Kopac

With the growing dependence on coal as an energy source, finding a means to prevent or reduce the freezing of coal during winter shipment has become increasingly important. Several chemical companies focused on this problem and applied chemical technology to develop suitable solutions. As a result, a number of freeze conditioning agents have been introduced in the past few years, several of which have been highly effective in controlling frozen coal. The efficacy of these chemicals has been well established, however many users have found that only a well defined program will produce acceptable results at a reasonable cost. Positive program results yielding recognizable benefits have caused many power generating and coking plants to consider freeze conditioning agents. A freeze conditioning agent (or FCA) has been defined as a multi-component organic liquid designed to be sprayed on coal particles at bulk shipping points to assure that receiving locations will be able to unload, store and use the treated coal with minimum delay or inconvenience. The chemicals are generally applied at rates of 1 to 2 pints (0.473 to 0.946 liters) per ton and normally function by changing the crystalline structure of water left on the coal during processing. The bond strength of the ice that may subsequently form is markedly reduced. Instead of freezing into solid, unmanageable masses, the coal can be easily unloaded by rotary dumping or the opening of hopper car doors.

Jan 1, 1980

By William H. Eatock

The Saskatchewan ore zone strikes slightly south of East, from the Alberta border to Manitoba; and dips to the South. The conventional mines are located along a broad strike line from Saskatoon to Esterhazy-Rocanville. Nine conventional mines have developed ore bodies at a nominal depth of 915 metres (3000 ft.). One mine had developed an ore body at 1525 metres (5000 ft.) by solution mining. Mining reserves of 100 years are not unusual in this vast ore body. Most of the mines were brought on stream during the 1960s. All the conventional mines were influenced by practices developed at Carlsbad, N.M. By 1970, the industry was faced with serious over-capacity resulting in the cancellation of some projects and the introduction, by the provincial government, of the Potash Pro-rationing Regulations designed to share the available market amongst all the producers. This resulted in production rates as low as 40% of capacity. As a result, the 1970s were characterized by attempts to reduce cost, rather than improve production or processing techniques. In recent years, the plants have all been brought to full capacity, and are currently involved in a massive program of expansion, which promises a period of advancing technology.

Jan 1, 1980

By Stanley J. LeFond

The Republic of Botswana, one of the newer countries of southern Africa, attained independence on September 30, 1966. It covers an area of about 225,000 square miles (582,000 square kilometers) which makes it slightly larger than France, or slightly smaller than Texas. It is bounded by Zimbabwe, the Republic of South Africa and Namibia, including the Caprivi Strip. Angola and Zambia are close neighbors. (Map 1). Botswana lies at the center of the southern African plateau at a mean elevation of 3,300 feet (1,000 m). It is a natural habitat for most species of African fauna. The rolling sands and extensive grasslands of the Kalahari Desert cover the southwest. The climate is sub- tropical. Summers, although tempered by north- easterly breezes, are hot, but mean maximum temperature seldom rises above 100°F (38°C). Winters are dry with wide temperature variations, which often give rise to frosts.

Jan 1, 1981

By A. Eltringham

Operations downstream of mining and beneficiation are still being subjected to increasing scrutiny as highly capitalized projects have been either slow to achieve their targets or have actually failed to do so. Leaching and smelting projects have fundamentally high calls on capital and technology as reaction rates are increased and the capture and disposal of unwanted products are subjected to greater restrictions. Separating value from waste inherently becomes riskier as the purification of the desired product imposes greater demands on the process to produce benign wastes. When we superimpose on the chemistry of the project severe predictions of throughput rates, that bring in facets of manufacturing, we are introducing complexities that the records show are not handled well. This paper discusses some of the more common challenges that operators face and what methods are available and are likely to be successful in preventing the loss of value as projects are brought on-stream. This thinking needs to start much earlier and at greater intensity than our industry has normally chosen to employ.

Jan 1, 2011