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By Robert T. McKnight

"Traditional techniques for valuing resource projects companies have been primarily based on discounted cashflow methods (DCF) or by comparison to similar projects with an apparent market capitalization. Many resource projects are really forms of options to invest rather than a future cashflow stream. Employing the DCF method to value a resource project which is really an option to invest, can dramatically underestimate the real value of the project. The analytical tools required to evaluate options, while more complicated than the usual spreadsheets used for DCF, are becoming more easily available and usable by managers. This paper will discuss the background of options valuation and some of the tools which will make it easier for managers to estimate the value of projects and companies which have significant real option values.ResumeBob McKnight is a graduate of the University of British Columbia in Geological Engineering, supplemented by an MBA from Simon Fraser University. Following several years in the oil patch with Cities Service and Brascan, Bob returned to Vancouver in 1979 to work for Wright Engineers. He subsequently went on to work for Cassiar Mining, Getty Resources and Endeavour Financial before joining Pincock Allen & Holt Ltd. in 1998. His experience ranges from exploration to feasibility studies, financial evaluations of mining and oil & gas projects, due diligence, project finance, valuations and mergers and acquisitions. He has extensive international mining experience pertaining to such countries as Chile, Mexico, Uruguay, Thailand, Indonesia, Angola, Papua New Guinea, Kazakhstan.What are Options?Options have been around for centuries. They were familiar to Roman and Phoenician traders who were shipping cargoes from Mediterranean seaports. In the financial world, options are types of contracts that generally include the right, but not the obligation, to buy or sell a share, currency or commodity. The underlying commodity price or share price changes are assumed to be lognormally distributed. In this context, options are of two general types, ""call"" options and ""put"" options. Call options have the characteristic of having the right to buy a tradable commodity or currency at a predetermined price for a specified period of time. For the owner of call options, they become more valuable as the price of the underlying commodity increases. For the seller of call options, these options become an increasing liability as commodity prices rise, since there is the obligation to sell the commodity at a predetermined (perhaps lower-than-market) price. This characteristic of call options recently became high profile with the sharp rise in gold prices last year. The value of gold call options sold by certain producers increased their associated liabilities to the point where margin calls were made."

Jan 1, 2003

By Pierre Laliberté

L?utilisation de plusieurs nouvelles technologies et systèmes de contrôle visant des économies d?énergie dans une exploitation minière pourrait laisser croire qu?il suffit d?additionner les économies potentielles de chacune de ces technologies pour en évaluer l?économie totale. Une addition simpliste des pourcentages d?économie pourrait, dans certains cas, dépasser 100%, ce qui est évidemment totalement incohérent. Les LMSM-CANMET sont à réaliser une étude dont les résultats serviront à estimer l?influence de certaines technologies et systèmes de contrôle visant des économies d?énergie et à évaluer l?impact des unes sur les autres. En outre, un modèle de simulation est en cours de création afin d?évaluer les gains incrémentaux liés à l?application d?une série d?innovations dans une exploitation minière. La présentation fera le point sur l'état d'avancement du projet en plus de soumettre quelques exemples.

May 1, 2007

By H. Oterdoom, S. Pilger, T. P. Bui, J. Rotarius

"Most FeNi furnaces used to rely on post-combustion and off-gas cooling inside the furnace to eliminate the produced CO gas, and control the off gas temperature. As furnace load, capacity, and thus gas volumes increased over the years, this led to increased instabilities that can cause problems in controlling the operation. Some of the large capacity furnaces nowadays work with partial or full combustion outside the furnace, more similar to the steel industry. Forced combustion with or without enriched air and other additions can support in controlling post-combustion, stabilizing and even reducing off gas amounts, and affecting composition. This paper presents some of the possibilities and advantages of having a specially designed post-combustion system for the FeNi laterite industry, but that could also be applied to other processes as well.Large Scale Furnaces In the FeNi industry, the Rotary Kiln Electric Furnace (RKEF) process is still going strong in spite of continuous hope that hydrometallurgical processes will one day make the RKEF plant obsolete. Within the pyrometallurgical plants there is a continuous trend for larger scale furnaces. The development for a number of furnaces that were started before 1985 and increased capacity by “natural growth” is given in Figure 1. Natural growth refers to the development of the plants that after having mastered a certain level of operation, were ready for a higher load that could be installed either with a new furnace on the same site, or during a revamp. The advantages of natural growth are numerous, for example: •,Deep knowledge of the ore and its’ behavior, no need for testing, and little risk of surprises. •,Mining, laboratory, equipment, etc. is all proven technology for the conditions on site. •,Starting a furnace with increased capacity is a re-start, not a green-field commissioning. •,Typically, when increasing the production capacity of an existing plant, not the entire plant is commissioned for the first time, but only a part. In the FeNi laterite industry for example, the kilns may already have had the capacity to provide enough material."

Jan 1, 2017

By Jean-Yve Tremblay, Michel Prud'homme

"IntroductionIndustrial minerals include a group of more than fifty minerals which are marketed into almost all the sectors of industry; they are the backbone of many manufacturing industries. Table I shows major end-uses for industrial minerals in manufacturing sectors.At Energy, Mines and Resources, industrial minerals are divided in three major categories: (I) agro chemicals and chemicals, (2) construction mineral s, and (3) ceramics and specialty minerals. A listing of the major groups of minerals is shown in Table 2.Agro-chemicals and chemicals are sold on the basis of their chemical content and purity. Construction minerals or structural minerals are distinguished by their performance as low cost and bulky commodities. Ceramics and specialty minerals are performance-specific and are sold for their property on imparting functions on end-products. Industrial minerals have unique characteristics that are useful in many stages of processing; from crushed size to micronized fillers a single mineral ca n serve a broad range of industries because of its intrinsic properties.The Industrial Minerals Industry in CanadaCanada has a large industrial minerals base and is a world leader in the production of some of them. The total value of product ion of these minerals has grown by 115% over the last 10 years despite the misfortune of asbestos.Industrial minerals have shown remarkable growth in the past 20 years at an average annual rate of 9.2%, compared to 7.8% for metallic minerals. In 1986, the value of industrial minerals rose to $4.9 billion, or 14% share of the Canadian mineral production. Figure I shows the value of production of the mineral industry for the period 1966-1986.The leading segment in industrial minerals segment since 1976 is the chemicals and agro-chemicals sector which has an average annual growth rate of 5.75 % in terms of value of production. During the same period, the growth rate for the whole Canadian mining industry was 1.37% per annum. The chemicals and agro-chemical s sector increased its contribution to the total value of production of 2% to 6070 despite the growing share of fuel minerals with 59%."

Jan 1, 1988

By N. Dufresne

"The evolution of mining methods at Brunswick Mining and Smelting shows that, in the case of a large deposit, technology must adapt itself to changing conditions. As problems are encountered, management must modify their approach if they hope to meet production quotas. This search for new and better ways started with the opening of the No. 12 orebody and is still going on today.From large-scale open stoping, the Brunswick Mining and Smelting operation went to transversal cut-and-fill, then to longitudinal cut-and-fill, which is the main mining method now employed. However, to solve certain problems experimenting with Avoca methods was initiated. Rebar grouting and prepinning have also made significant contributions toward securing relatively poor ground in the hanging wall and holding badly fractured backs in wide stoping areas. Introduction In 1952, M.J. Boylen had incorporated Brunswick Mining and Smelting Corporation Limited to develop his recently found No.6 and No. 12 orebodies near Bathurst, New Brunswick. Between 1953 and 1957, St. Joseph Lead Company was brought in to try and initiate mining . During those years, St. Joseph Lead sunk two shafts at No. 12-No. 1 to 425 feet below surface and No.2 to 982 feet. They also developed the 200 and 350 levels to sample the ore at depth and operated a 100-tpd pilot plant at the No.6 mine. However, due to low recoveries and depressed metal prices. the project was shut down in 1957.A group including M.J. Boylen. K.C. Irving. Maritime Mining Corporation and Patino Corporation reacquired the property from St. Joseph Lead Company in 1961. New financing was arranged involving La Societe Generale des Minerais, S.A . of Belgium and Engineering Consultants Limited of Saint John. New Brunswick. During the years 1962 and 1963, construction of surface and underground facilities progressed rapidly."

Jan 1, 1981

By Jaeheon Lee, Junmo Ahn, Isabel F. Barton

"Newmont’s Mike prospect, currently undeveloped, is a blind Cu-Au(-Zn) deposit on the Carlin Trend, containing >8.5 M oz. Au, 1027 M lbs. Cu, and 809 M lbs. Zn as Carlin-type gold and polymetallic Cu-Zn minerals in Paleozoic lower-plate carbonates and shales. This project was undertaken 1) to examine the effectiveness of different lixiviants for leaching the Mike supergene Cu-Au ores via bottle roll tests, and 2) to determine what ore minerals resist dissolution in each leaching agent by comparing the mineralogy and chemistry of head and tail samples. Sulfuric and sulfurous acids were used to leach copper and cyanide was used to leach gold. Thiourea, glycine, and other lixiviants were used to leach both base metals and precious metal. QEMSCAN and SEM study of six samples of different ore types and grades indicate that the Au occurs as varieties of native gold, including auricupride and electrum. Major Cu minerals are native Cu, cuprite, malachite, chrysocolla, and conichalcite (Ca-Cu arsenate), with locally significant Cu in jarosite and goethite. Gangue mineralogy is dominated by quartz, sericite, chlorite, alunite, smectite and kaolinite, K-feldspar, and iron oxides (sensu lato). Results of bottle roll tests and leach residue mineralogy will be presented and discussed at the conference.INTRODUCTION Resource and Geologic Setting The Mike deposit is a large, blind Cu-Au(-Zn) deposit in the Maggie Creek district of the Carlin Trend of Nevada, USA, near the Gold Quarry mine (Figure 1). The mineral inventory, based on drilling, is 8.568 Moz. Au, 1027 M lbs. Cu, and 809 M lbs. Zn at average grades of 0.72 g/t Au, 0.34 wt% Cu, and 2.13 wt% Zn (inventory for a cone at $400/oz Au and $0.80/lb Cu by Norby and Orobona, 2002)."

Jan 1, 2017

By R. S. Douglas

Introduction During the past few years, a number of changes in the mine operations at Copper Mountain have taken place. The modernization and mechanization were necessitated and given impetus by wartime and other conditions, which were: (1) The urgent need for copper for wartime purposes. (2) The scarcity of skilled labour for underground work. (3) The increase in labour and supplies cost. (4) The necessity of finding ways and means of increasing the output per man-shift, because of the scarcity of skilled labour and the rising cost of labour. (5) The desire to increase safety measures, reduce the silicosis hazard, and aid mine ventilation. (6) The desire to improve the general working conditions in the mine for all workmen. (7) The desire to reduce the amount of dilution in the ore stream by a more selective yet highly productive method of mining. To this end, mining with diamond drills, and transferring broken ore with slusher hoists, appeared to be the answer to the problem. After considerable discussion and estimation of costs for comparison with those of the operation as carried on at that time, the proposed methods were tried out and, in practice, gave very gratifying results. Reference at this point is made to the paper written by C. H. Brehaut, W. N. Taylor, H. A. Shannon, and R. S. Douglas, which was published in the September, 1945, issue of Mining Technology, by the American Institute of Mining and Metallurgical Engineers, Inc., and subsequently in commercial mining journals. Since that time some improvements have been made in undercutting an orebody - the first through experiment and practice, the second through making use of the earth's barodynamic or gravitational forces. It is the purpose of this paper to describe and discuss these later developments.

Jan 1, 1947

By RAYMOND C. HARTVIKSEN

The Drumbo Mine is located near Highway 401 between Woodstock and Kitchener in southwest Ontario. The tabular flat-lying gypsum bed is between 1.5 to 2.4 m thick and is situated near the base of the Salina Formation, about 116 m below surface. The mine is owned and operated by Westroc Industries Limited. The 3.8 m diameter shaft was drilled using a Hughes CSD 820 drilling rig and a liner sinking technique new to the North American continent. The shaft was completed in the fall of 1977, and remaining facilities were finished in the fall of 1978. Gypsum production started in December 1978, employing the conventional room-and-pillar method of mining.

Jan 1, 1984

By Y. Thibault, G. Deschênes

An open-pit mine, located in Mexico, processes an ore a rate of 4000 tpd, using conventional cyanidation and AYR. A laboratory study was conducted to increase silver extraction and to reduce the concentration of cyanide in leaching. The sample contained 0.41 g/t Au, 125 g/t Ag, 99% gangue minerals, 0.7% pyrite, 0.07% sphalerite, 0.03% chalcocite. Silver was present as acanthite, stromeyerite, silver mercury/halogen, silver with copper in solid solution and jalpaite. The plant conditions (2400 ppm NaCN) produced 90.2% gold extraction (residue at 0.04 g/t Au) and 92.7% silver extraction (leach residue at 9.1 g/t Ag). The CELP (CANMET Enhanced Leaching Process) produced 97.0% silver extraction (residue at 3.8 g/t) and 90.2% gold extraction using 500 ppm NaCN. The incremental gross revenue was estimated at $US7.6 million and the reduction of cyanide costs was $2.9 million per year (79%).

Jan 1, 2011

By D. Yuan, M. Sitter, S. St. Jean, M. Collins

The Ambatovy Joint Venture comprises an operating lateritic nickel mine, ore slurry pipeline, pressure acid leach plant and nickel refinery in Madagascar. The hydrometallurgical process selected by Sherritt for treatment of the Ambatovy ore is a long-term, sustainable approach to producing nickel. Sulphur, used to prepare hydrogen sulphide, which is used to produce mixed sulphide intermediate, is recovered in the refinery as ammonium sulphate fertilizer. Additional sulphur is used to generate sulphuric acid for treatment of the ore in the high pressure acid leach (HPAL) step; fossil fuel consumption is minimized by using the heat generated from the exothermic reaction between sulphur and oxygen in the acid plant to produce power and steam. Steam consumption is minimized by design of efficient flashing and preheat systems for HPAL, while the high temperature of the HPAL step serves to minimize acid consumption. Fossil fuel consumption by the operation as a whole is further minimized by locating the leach plant and refinery near the port of Toamasina and utilizing a 220 km slurry pipeline to transport ore from the mine to the leach plant. In addition, Ambatovy has demonstrated a strong commitment to sustainability programs such as the biodiversity management program at the mine and local procurement in Madagascar. In this paper, the hydrometallurgical process for nickel and cobalt recovery from Ambatovy ore is described, along with highlights of Ambatovy’s approach to sustainability in Madagascar.

Jan 1, 2015

By E. M. Cameron

Reconnaissance radiometric and geochemical data have been obtained for an area on the western shore of Wollaston Lake that includes the Rabbit Lake uranium deposit. The study area is extensively drift cover ed. The geochemical data were obtained by analysis of center-lake sediments and surface waters for a variety of elements and other constituents. The airborne radiometric data comprise measurements of eU, eTh and K obtained with a .50,000-cc NaI (Tl) detector at a mean terrain clearance of 120 m and 5-km flight-line spacing. Uranium in lake sediments and uranium in waters are the most effective geochemical indicators of uranium mineralization; the other elements measured are not notably anomalous. A sample site density of one per 1 8 km 2 is more than adequate for identification of the mineralized area. Because many water samples contain close to or below the current analytical detection limit of 0.05 ppb U, the use of sediments is generally favoured. for broad-scale reconnaissance in the region. Uranium in these lake sediments appears to be little influenced by variations in the organic or iron and manganese content. The most effective radiometric indicator of the mineralization is the eU/eTh ratio. This parameter is less influenced by environmental variation on the ground beneath the flight line than eU alone . The eTh/K ratio is anomalous under the Athabasca Formation unconformity where, in places, the uranium mineralization is localized.

Jan 1, 1977

By Karl J. C. Harries

Mineral Agreements and Royalties

Jan 1, 2003

By G. A. Highcock

"Operations started at BCL in December 1973J and the smelter is currently in the seventh year of its fifth campaign. The next major shutdown is scheduled for 1995. During the current campaign, a number of major on-line refurbishments have been carried out without any significant disruption to production. These include the complete rebuild of both drying plant electrostatic precipitators, the installation of a new electrostatic precipitator at the flash furnace, the conversion to a distributed control system throughout the smelter, and the installation of a converter air blowing control system.IntroductionBCL Limited operates a nickel-copper mine in northeastern Botswana approximately 100 km southwest of Francistown. Surface operations for the production of high-grade nickel-copper matte at a design capacity of 42 000 metric tonnes per annum, were commissioned in December 1973. Detailed descriptions of the mine and surface facilities have been presented previously(1-3).Over the years, a number of major engineering modifications and metallurgical projects have been carried out to overcome operating difficulties. improve metal recoveries, increase production rates and provide a better working environment.One of the major results of these projects was an increase in the 19805 in flash furnace feed capacity from 70 t/h to 120 t/h of new concentrate with a nominal feed rate of 105 t/h being achieved.(4)Because of the ore characteristics, i.e. a high mass fraction of ore reporting to concentrate, BCL operates one of the highest capacity spray drying plants and flash smelting furnaces in the world(5).A schematic of the BCL smelter is shown in Figure 1. The smelter is now in the seventh year of its fifth campaign, with the next shutdown scheduled for mid-l99S. In this campaign, the following major projects were completed:"

Jan 1, 1995

By H. O. Seigel, J. C. Gingerich, E. O. Köstlin

"To satisfy their continuing need to replenish or expand their ore reserves, mining companies are faced with the dilemma of arriving at a proper balance between the dual avenues of discovery through in-house exploration and of acquisition of properties that are relatively proven or are even in production. The returns from exploration activities may be spectacular, but are unpredictable. The allure of an acquisition lies in its promise of quick and risk-reduced addition to reserves. However, it is historically clear that quantum increments in shareholders’ values have arisen primarily through major exploration discoveries, rather than through major late-stage acquisitions. Late-stage acquisitions can prove highly profitable, sometimes based upon the planned use of superior mining or metallurgical technology, but more often occur as the result of unexpected windfalls. At the other extreme, they can become expensive failures through inadequate due diligence, or unforeseeable factors.Citing numerous case histories and industry statistics, it is concluded that a judicious combination of both exploration activity and the acquisition of prospects is the most advantageous strategy for adding new ore reserves. A skilled exploration staff is essential for success, be it through exploration discoveries or through opportunistic acquisitions, preferably at their early stages. In the future, it is anticipated that there will be fewer opportunities for acquisition because of reduced funding for junior exploration companies, leading to increased competition and higher costs for fewer properties, both in the advanced exploration and mining stages."

Jan 1, 2002

By G. E. Murray

Introduction The development of the method for recovering zinc from lead blast-furnace slags at Trail is interesting and important in the history of both lead and zinc metallurgy. Many efforts have been made in the past, particularly in Germany, to make economic recovery of zinc from slag. The Pape process on Oker slags was successful and is being worked at the present time. More recently the Waelz process has come to the fore. One effort at Cockle Creek, Australia is of special interest in view of subsequent developments. This was re-ported in detail by Guy Courtney in 1920(1). It deserves mention as it shows how, as in many other instances in the metallurgy of lead and zinc, important pioneering work has been done in Australia. These experiments, started over 25 years ago, comprised reduction with coke, powdered coal, and eletrothermically in carbon-lined furnaces. The so-called slag eye furnace, which volatilised the metals from a blast furnace running with a hot top, was also investigated.

Jan 1, 1933

By Stephen Mullowney

Outline ? Setting the stage ? Deal activity ? Q1 2013 update ? Key deal sectors ? Deals by geography ? Outlook for 2013 Key Observations 2012 ? Major retreat in M&A activity ? Glencore-Xstrata deal dwarfs all other deals ? Gold & copper dominate deal activity

May 1, 2013

By Y. Mudryk, D. Paudyal, K. A. Gschneidner, V. K. Pecharsky, M. Khan

"Rare earth intermetallic compounds are utilized commercially as magnetic and battery materials, electron gun electrodes, etc. Several of these intermetallics will be briefly discussed. There are many other rare earth intermetallic compounds which are not utilized industrially but have unusual properties which are of fundamental interest and may have future technological applications. Several of these materials are discussed as well.INTRODUCTIONTens of thousands of rare earth intermetallic compounds exist, but physical properties (primarily their magnetic behaviors), other than their crystal structures have been measured for only a small percentage of these materials. Among these are the commercially important compounds: Nd2Fe14B, and the SmCo5 – Sm2Co17 family – well known high strength permanent magnets; (Tb0.3Dy0.7)Fe2, Terfenol-D, a giant magnetostrictive material; LaNi5Hx a critical component of the rechargeable Ni metal hydride batteries; and LaB6 an electron emitter. There are, however, many other intermetallic compounds which are not utilized industrially, but none-the-less, exhibit interesting, and sometimes, exotic physical properties which are of fundamental interest and may have some future technological significance. These include: the giant magnetocaloric effect compounds Gd5Si2Ge2 and La(Fe13-xSix)Hy; the RCu and RAg families of ductile intermetallics; the mixed intra-lanthanide (R,R')Al2 compounds in which magnetic transitions disappear and reappear as one R is substituted for by R'; and GdNi which exhibits large dilations along two crystallographic directions and a larger contraction in the third direction at the Curie temperature resulting in zero volume change as GdNi orders magnetically via a second order phase transition.COMMERCIALLY IMPORTANT INTERMETALLICSNdFeB Permanent MagnetsThe Nd2Fe14B permanent magnets were discovered in 1984 independently in the USA and Japan. It is a ferromagnet and with proper heat treatment and processing Nd2Fe14B is the strongest near room temperature permanent magnetic material known today. This intermetallic compound is utilized as a permanent magnet in many applications, such as electric motors (e.g. the modern automobile contains up to 35 electric motors), spindles for computer hard disc drives, microphones and speaker magnets for cell phones and other audio equipment, direct drive wind turbines, actuators, and Magnetic Resonance Imaging (MRI) units. There are two kinds of NdFeB permanent magnets – bonded and sintered. The bonded magnets have a lower magnetic strength than the sintered magnet. The highest strength magnets are obtained by small substitutions of Dy (up to a maximum of 10%) for Nd, because Dy can significantly increase the coercivity and thus the energy product (a measure of the magnetic strength or hardness). The bonded magnets account for about 12% of the NdFeB market (~82 metric kt per year, containing ~20 kt/a of Nd). The NdFeB permanent magnet market is growing at a rate of about 15% per year. (Burzo & Kirchmayr, 1989; Kobayashi & Hirosawa, 2001; Coey, 2011)."

Jan 1, 2012

By Yolaine le Beau

Plan de la présentation Le contexte mauritanien La situation de l?environnement en 1999 L?évolution de 1999 à 2010 Bilan La situation de l?environnement en 2011 Le contexte mauritanien Pays du Maghreb couvert à 75% par le désert du Sahara Un des plus pauvres au monde Index de développement humain : 136esur 169 pays en 2010 46,7% de la population ne peut subvenir à ses besoins quotidiens

May 1, 2011

"One of the workhorses of the minerals industry is the autogenous grinding (AG) mill and its derivative the semi-autogenous (SAG) mill. These are relatively well understood, but not so Scrubbers. Scrubbers are mechanically of the same appearance/function, so what is the difference between an AG mill and a scrubber? When, or under what conditions should a scrubber be used and when should an AG mill be used? Can the processes within be mathematically modelled?In the past decades, the minerals industry has focused most of its attention on the modelling of unit processes such as cone crushers, HPGR’s, AG/SAG mills and ball mills within conventional processing circuits. Less attention has been placed on the modelling of scrubbers. This paper reviews the difference between scrubber and AG mill modelling, highlighting some of the similarities, with a view to confident comminution circuit designs.Engineering practitioners should be comfortable with these circuit designs and not shy away from considering AG mills for both small and large scale plants. AG mills can treat both harder or softer ore and scrubbers are for only softer ores. This paper differentiates scrubber and AG mill modelling in a similar way that overflow ball mills and grate discharge ball mills are analysed. Smaller scrubbers (600 kW) are suited to small scale soft ore (100-300 t/h) operations. Larger scrubbers up to 2,500 kW have the capability of very high throughput, in excess of 1,750 t/h with soft fine feed ore. AG mills are scalable up to 28 MW and are capable of treating harder ores at rates exceeding 2,000 to 4,500 t/h. Observations are that the specific energy requirements for the mill grinding duty is wide and varied. This is to a large degree the crux of the matter in sizing, as well as, differentiating, scrubbers from AG mills.INTRODUCTIONAG milling is a mature technology that has been used in minerals processing applications for more than 100 years. In the last 50 years, harder metalliferous ores have seen the introduction of steel balls to assist in the grinding/milling action. Tumbling mills used in such a configuration are called semiautogenous mills (SAG). The greater minerals industry is no newcomer to the use of fully autogenous (AG) mills. Perhaps scrubbers are. What is the difference? When should a scrubber be used versus an AG mill? How are they mathematically modelled?"

Jan 1, 2016

By Gustavo Angeloci

Artisanal mining is a rudimentary activity that today attracts over 30 million people in virtually all developing countries around the world. As the price of gold has steadily increased over the past decade, 15 million people have become involved in extracting this metal in 55 countries. Individuals have switched to mining from primary industrial sectors such as agriculture to increase their income. These workers generally have little capital, low education levels, and no previous experience in mining. Together with a lack of technical support from governments, these factors lead to disorganized and informal mining activities that generate environmental and social chaos. The absence of technical knowledge and capital has caused a proliferation of Gold Ore Processing Centres (GOPCs) around the world established by local entrepreneurs, who provide a way for miners to process their ores using amalgamation for a fee that is relatively low to non-existent. Gold recovery by the independent miners rarely exceeds 30 % and gold-rich tailings are left at GOPC facilities as a form of payment. GOPCs recover around 90 % of the remaining gold using cyanidation, flotation, and amalgamation, without any compensation paid to the miners. In processing these mercury (Hg)-contaminated tailings, Hg cyanide complexes are produced that are dumped into aquatic environments, leading to rapid bioaccumulation of Hg by fish. In the town of Portovelo, Ecuador, the establishment of partnerships between GOPC entrepreneurs and artisanal miners has proven to be successful in forming legal small-mining companies to create more equity and reduce pollution. About 108 GOPCs operate in Portovelo-Zaruma, with 40 % of these still working illegally without proper regulation and permitting. Over 20 % of these GOPCs continue to use grinding, concentrating and amalgamating of the gold, with 58 % performing cyanidation of tailings and/or gravity concentrates, and 15 % combining flotation with cyanidation. About 94 % of the GOPCs concentrate the ore prior to applying amalgamation, which significantly reduces Hg emissions to the environment. Incorporating flotation has given the operators increased skills in mineral recovery, with the side benefit of producing a copper concentrate as added value. Despite these innovations, mineral recovery is still inefficient, and waste management is a major challenge in creating true sustainability in this sector (technical efficiency together with social and environmental responsibilities). Further organization, training and capacity-building are needed. The principles of Lean Manufacturing Methods ("Just in Time" production and "Automation") are suggested as possible techniques to assist small GOPCs to become sustainable. In this concept, a larger mining company can become associated with artisanal miners in a partnership to provide training and investment for exploitation of small deposits that would be infeasible as a single large operation. As well, an International Training Centre for Artisanal Miners (ITCAM) is being established in Portovelo with collaboration of the Government of Ecuador to further enhance and upgrade mining activities in this region. ITCAM will provide artisanal miners with technical, business and environmental training to become responsible small-scale miners. In building this new capacity, ITCAM intends to create an atmosphere of trust to attract private and corporate investors to become partners with artisanal miners.

Aug 1, 2013