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By Michael A. Gustafson, Fernando B. Sotelino

INTRODUCTION The degree of success of any new project will ultimately depend on two factors: (i) the underlying economic strength of the project; and (ii) how successfully the parties involved can coordinate their interests to establish a financing structure which indeed capitalizes on the project's inherent economic attractiveness. A project's underlying economic attractiveness is determined by its inherent comparative advantage in accessing the factors of production, combining these factors of production to create a product and marketing this product. Initially, the decision regarding whether to go ahead with the project - the go/no go decision - has to be based on its total ability to generate cash flow returns to project participants to compensate them for resources committed and risks undertaken. The extent to which project sponsors will actually benefit from the project's inherent economic attractiveness is fundamentally dependent on their ability to establish the long-term financing arrangement which best meets the objectives and constraints of each project participant and sources the most advantageous funding. The decision regarding the financing of the project, the "how-to-go" decision, is then an attempt to find the capital structure, consistent with market terms and conditions and sound financial management policies which will best: (i) match planned outflows with cash inflows; and (ii) maximize the return for project sponsors. This article makes use of a case study to illustrate the analytical process involved in dealing with the go/no go and the how-to-go decisions on a project. Though most commonly applied to project finance situations, the guideline described herein is equally applicable to other financing situations, such as leveraged buyouts and debt restructurings, where timely repayment of debt depends largely on the future cash flows to be generated by the entity being financed. Our case study is of a hypothetical expansion of an existing copper mining operation in Latin America. The company, Latin American Copper (LAC) currently has 147 million metric tons of proven sulphide ore reserves. The existing mine complex consists of an open pit mining operation and a conventional flotation plant with a processing capacity of 20,000 metric tons of ore per day. LAC sells copper concentrates primarily to Japanese custom smelters. The mine has been in operation for 5 years, fine copper production last year was 108,240 metric tons, and LAC currently has assets of $175 million and net worth of $135 million. Due to a recent increase in proven reserves, LAC is considering doubling the treatment capacity of its flotation plant to 40,000 tons per day, and expanding its mining capacity to meet the additional concentrator capacity (the "Project"). Project capital expenditures and incremental working capital have been estimated at approximately $210 million. The construction period is expected to cover one year, including a three-month start-up phase. The Project is to be funded by a combination of equity, senior debt, including both supplier credits and/or commercial bank term loans, and subordinated debt. LAC's shareholders are willing to commit a maximum of $50 million to the Project. A government development agency, which is also a minority shareholder, might be willing to lend approximately $40 million to LAC in the form of subordinated notes, depending on the ability of the Project to generate foreign exchange reserves. Commercial banks cannot be expected to offer loans with maturities longer than ten years. The Project is expected to increase the value of the firm because: (i) It will solidify the Company's position as a low-cost copper producer by taking advantage of economies of scale. As a result of the expansion, cash production costs are expected to decrease 7.0[c]/lb. and all-in costs 11.0[c]/lb; (ii) The potential earnings stream from the sulphide ore reserves will be realized

Jan 1, 1985

By H. Warlimont

In recent investigations of the microstructure and crystallographic features of martensite by electgon microscopy,', '9 thin films (about 50 to l000A in thickness) have been used as specimens. It was found by W. Pitschl ,2 that the lattice relationships between the supefiaturated fcc matrix and the martensite formed in thin films were different from those observed after transformation in bulk material. Corresponding differences are to be expected in nucleation and in reaction kinetics in the formation of martensite in thin films, but have not yet been reported. In the course of the preparation of thin films of iron-base alloys for investigation by electron microscopy it was observed that films of alloys, whose martensite formation temperature (Ms) was below room temperature, formed martensite during the electrochemical thinning process conducted at or above room temperature. The chemical compositions and approximate bulkM,-temperatures of the three materials on which this observation was made are listed in Table I. The alloys were vacuum-melted from high-purity metals. It can be seen that the effect occurred in alloys that contain only sub-stitutional components as well as in alloys that contain carbon as an interstitial solute. The appearance of martensite formed in this manner is illustrated in Fig. 1, which represents a polished film of alloy No. 1 at XI0 magnification. The martensite plates can be recognized by their surface relief effects. In addition, heavily strained (owrinkledo) austenite can be seen near the edges of the film where it is thinnest and transformation stresses or strains can be accommodated by plastic deformation most easily. The nonuniform distribution of transformed regions is probably due to the varying thickness of the film. These observations were common to all materials listed in Table I. Because effects of supercooling or straining can

Jan 1, 1962

By C. A. Allen

For over three years we have been endeavoring to reduce the number of fatalitics and minor accidents in Utah. The physical condition of the FIG: 1.—Number kiLlEd per million short tons of coal produced in ColoraI)o, New Mexico, utah, Wyoming, and bituminous mines of the United States 1014 to 1920. mines, concentrators, and smelters is good, yet the number of accidents,

Jan 1, 1923

By C. A. Allen

For over three years we have been endeavoring to reduce the number of fatalitics and minor accidents in Utah. The physical condition of the FIG: 1.—Number kiLlEd per million short tons of coal produced in ColoraI)o, New Mexico, utah, Wyoming, and bituminous mines of the United States 1014 to 1920. mines, concentrators, and smelters is good, yet the number of accidents,

Jan 1, 1923

By R. S. Montgomery

Laboratory experiments simulating rock drilling were conducted on a number of commercial grades of tungsten carbide in order to determine their wear rates when they are used as inserts in percussive rock drill bits. The test rock was Barre granite and tests were made at conditions similar to those of the carbide buttons near the periphery of a large, down-hole, button bit. In addition, some wear rate measurements were made at a low blow energy. Wear rates of these carbide buttons were an extremely sensitive function of their cobalt contents and hardnesses and were proportional to e-°.57Hup to a hardness of about 91 RA. The point of minimum wear rate, which occurs at about 92 RA, corresponds to the point of maximum compressive strength. Modern percussive rock drill bits have inserts of cemented tungsten carbide on their wear faces. These inserts have drastically reduced bit wear in comparison to that of earlier all steel bits. The most common cemented carbide grade used in percussive rock drill bits contains about ten weight percent cobalt, although grades containing more or less cobalt are also used. Contrary to the case with carbide in metal-cutting tools, alloying materials are rarely used in mining grades. There are a number of designs of rock bits in current use. The most common form is an X bit which has four chisel-form radial wings. The button bit is another important design and one which has been recently developed. This design uses a flat steel face studded with relatively small hemispherically tipped carbide buttons. These types are illustrated in Fig. 1. Studies have been made of the sliding wear of cemented tungsten carbide on rock 1-4 and multiple-impact fracture', 5-6, b~t there has been comparatively little published on the percussive wear of this material although the wear of the impact face is the most important. There is some available data on the rate of dulling of rock bit inserts in actual drilling 7 but no laboratory studies. Sliding wear studies are useful for understanding the wear of coal and mineral cutting tools and gauge wear of percussive drill bits. but the

Jan 1, 1970

Jan 1, 1963

By Jack G. Gill, Richard A. Dick

Blasting safety is a subject that cannot be overemphasized. Two years ago, a study was published describing g a series of fatal blasting accidents which took the lives of ten metal and nonmetal miners during the period of May 1973 to August 1974.1 Each accident was described, and the direct causes were delineated. In each instance, specific MESA safety regulations were violated. Four of the victims were killed by drilling into explosives; two were killed by lingering too long in the vicinity of fuse rounds; two fatalities resulted from improper guarding of shots; one blaster did not retreat far enough to avoid the blast concussion; and another used an improper tester for checking an electric blasting cap. All of these fatalities could have been avoided by adhering to the MESA blasting regulations contained in 30 CFR Part 55 (Health and Safety Standards-Metal and Nonmetallic Open-Pit Mines), Part 56 (Health and Safety Standards-Sand, Gravel and Crushed Stone Operations), and Part 57 (Health and Safety Standards-Metal and Nonmetallic Underground Mines).

Jan 11, 1977

By Peter F. Weiss, H. Riedler, I. M. Moschitz, A. Olsacher, G. B. Fettweis

CONTENTS : 1. NATURAL FACTORS Geology Petrography and Rock Mechanics Mining System Orientation Rock Bolting System Movability of the Ore Grain Size Distribution Permeability Contamination Value of the Ore Hydrology 2. TECHNICAL FACTORS Height Length and Width Drawing Areas Time Factor Water Predrainage Surf ace Draining Underground Draining Advancing Slitting Sequence of Development Initiation of the Caving Process Drawing Rate 3. SPECIFIC MINING RULES Advancing Development Drawing Rate Interruption of Drawing (Water Distribution, Concentration of Mud, Dilution) Blasting 4. CONTROLS Safety Controls for Operation Computerised Drawing Control Structure of the Computer Program Hard Ware Print Outs 5. SUMMARY 6. ACKNOWLEDGEMENTS 7. REFERENCES Under the heading "Development System for Block Caving under Severe Conditions" a report was presented to this congress regarding a magnesite mine using block caving for several years. On account of the experience gathered in this mine and the results of far reaching exchange of experience, as well as under due consideration of the international literature it is tried to systematically list and briefly discuss the following factors that have to be considered for development and draw control of block caving. 1. NATURAL FACTORS It is self evident that this implies all those circumstances given by nature and which cannot be altered by man. Any mining activity is subjected to those and the success is depending on how far technology can be adjusted to those conditions. Geology Deposits of considerable thickness with rather steeply inclined flat-faced contacts are optimal for block caving. While vertically there is practically no limitation- for the deposit, theoretically, the smallest horizontal basis apt for operating block caving is the minimum area necessary to get the rock to completely cave in by undercutting and drawing. Practically, only consider- ably bigger main dimensions are found, mainly because of technical factors (machinery and equipment) and economic factors (cost ratio of exploration vs. development, danger of contamination).

Jan 1, 1981

By M. K. Seguin

The study described in this paper is first centered on the determination of the physical properties (gravimetric, magnetic, electrical, and electromagnetic) o f metamorphosed iron ores of the Carol Lake-Labrador City District. Different geophysical surveys available in the Carol Lake-Wabush area were interpreted quantitatively and the dimensions, attitude, and tonnage of the ore bodies investigated were determined. A geophysical-statistical study was undertaken which permitted the determination of the grade of iron, magnetite, and, subsequently, specularite in the ore bodies. A discussion of the theory and logical progression of the study and the application of the results to actual geophysical data is presented. The conclusions, which are of real significance from the economic standpoint, may be predicted from the data obtained from geophysical surveys before any diamond drilling is undertaken. An integrated interpretation of this type is useful in planning future exploration work and selecting the most favorable geological structures. It also serves as a guide to minimize and determine tonnage drilling patterns. The general conclusion that a restricted range of residual gravity and magnetic anomalies are a key to exploration is valid. Indeed large depths to the top of deposits are absent since all the ore bodies are overturned synclinal structures with tops located close to the surface. Certain irregular geometries do occur but they are not common and the alignment of the iron ore bodies is sub parallel so that magnetic anomalies are evenly reduced in the earth's magnetic field vector.

Jan 1, 1975

Jan 1, 1969

By M. H. Harris

A solution has been obtained to the problem of calculating flow into a cased and perforated well. Equations describing the idealized system were solved by numerical analysis techniques on a high-speed digital computer. Computer experimentation indicated that the results are within 3 per cent of the exact solution. Computed results are presented as an apparent skin effect, on a series of dimensionless working curves. Productivity ratios can be rapidly calculated from these data for the wide range of wellbore and reservoir properties actually encountered in field practice. Any reasonable vertical unisotropy ratio can be included in the computation. Productivities can be calculated for wells perforated in a regular pattern, a single horizontal plane or a vertical line on one side of the casing. Solutions for asymmetrical perforation patterns can he easily obtained from the working curves. Solutions for flow into sells completed with a horizontal notch are also provided. Results show that productivity can be increased by extending perforation penetration. This is especially true for shallow penetrations. The highest productivity is obtained when perforations are arranged in horizontal planes, as opposed to a vertical line on one side of the casing. Four or five perforations in one plane will approach the maximum productivity. The effect of perforation hole diameter is small, and is rioticeable only in shallow penetrations. INTRODUCTION The perforating method of well completion has been successfully and widely used in most producing areas. In the past, the desired perforation results were achieved by simply shooting numerous large holes in the casing. A perforating scheme for an area, or particular well, was established by evaluating two types of experimental data: the well flow index and the productivity ratio.' 3 The well flow index test is a means of determining the relative flow capacity of perforations in a linear system. This test also gives information on the perforation size, shape and hole damage which can be expected under well-bore conditions. However, relative flow data from this test cannot be accurately tarnsformed into the radial wellbore system. Thus, no true indication of the productive capacity of a perforated well can be obtained from the well flow index test. A well productivity ratio is derived from electrolytic models built to simulate perforated wells. Available productivity ratio data 2,3 are limited in that all important variables are not extensively evaluated. For example, data are limited to well radii of 3 and 6 in., and to maximum perforation penetration of 1 ft. Practically no information is available on the pattern of flow into a perforation. The effect of various perforation patterns on well productivity has not yet been determined and the effect of perforation diameter has not been thoroughly studied. Also, it will be shown that this type of electrolytic model data is probably in error by as much as 10 per cent or more. Modern completion techniques such as limited-entry perforating, single-plane fracturing, steam and hot air injection and chemical consolidation of incompetent formations all rely on injection and/or production from a limited type of completion. These completions may consist of several high-capacity perforations or a horizontal notch which is equivalent to an infinite number of perforations in one plane. Proper design of these new completion techniques requires, in part, accurate estimates of a well's productive capacity. Data on perforated and notched well productivity have been determined in this investigation. Results are presented as a function of the pertinent variables. Equations describing the idealized system were solved by numerical analysis techniques on a high-speed digital computer. DESCRIPTION OF PROBLEM PRACTICAL APPLICATION The computed results can be applied to wells which meet several general specifications. An external drainage radius of the well must be known or assumed, but the well need not be drilled on a regular pattern. The well must be cased and cemented through the entire producing interval. And, the casing must be perforated with one or more horizontal planes of perforations. The perforation pattern itself must conform to three geometrical requirements. 1. The perforations in a plane must divide the plane into equal angular segments (Fig. 1). Four perforations per plane would be 90" apart. 2. Perforations in a plane must be directly above or beneath perforations in adjacent planes. For two shots per plane, perforations would lie in the BB' plane (Fig. 1). 3. Horizontal planes must have equal vertical spacing and be separated from the top and bottom of the formation by one half the spacing interval. Single planes of perforations should be in the middle of the formation. This is shown in Fig. 2 where h is the formation thickness in a single plane conlpletion or the spacnig interval in a multiple plane completion. The spacing interval at the top and bottom of the formation may vary somewhat without causing an appreciable error in the productivity calculation if the formation is reasonably thick and there are many horizontal planes of perforations. A special provision has been made to calculate the productivity ratios of wells with uneven spacing intervals, or for the case where a single plane of perfora-

Jan 1, 1967

Low Zinc Prices Close Alcoa Mine Alcoa Mining Co., announced that it will suspend operations at its Hutson mine, near Salem, Ky., because of low zinc prices, January 15. The Aluminum Co. of America subsidiary announced that the low market has made zinc mining un- profitable. About 70 men were employed at the mine, with a production of about 5000 tons of zinc annually. Alcoa said the shutdown would not affect other company operations, with most of the men at Hutson absorbed in the mining firm's fluorspar operations in the same area.

Jan 2, 1953

By James M. Link

Slurry transport of industrial minerals has proven to be practical, economical, and efficient. Industrial minerals currently being pumped for long distances include cement, clay, phosphate, sand, and various waste product from industrial mineral processing operations. This paper will touch upon the basic theory of hydraulic transport of solids and then consider the economic and engineering considerations upon which construction and operation of such a line would be based. Where possible, actual cost data will be presented.

Jan 1, 1974

By D. G. Westlake

Levine has concluded that prismatic slip in titanium is controlled by two distinct thermally activated processes in the temperature ranges O° to 220°K and 220" to 300°K. We feel that his evidence is not convincing. He has drawn a curve through the plot of activation volume u* vs temperature T with a break at 22WK, Fig. 2. We believe that considering the possible experimental error apd the fact that there are only four points between 4° and 196°K, one could be justified to represent these points by the smooth curve we show as a solid line in Fig. 12. Levine believes that (8rf/aT)+ is discontinuous at 220°K, but he hints that he recognizes the possible doubt. We doubt seriously that the results shown in Fig. 1 indicate a discontinuity at 220°K. Certainly if he were justified in drawing a straight line through only four points on Fig. 2, we are even more justified in drawing straight lines through the seven points between 77" and 297°K on Figs. 1 and 3, because a straight line touches all seven of his circles. If his measurements of t were so precise that his decision to draw two curves in Fig. 3 is valid, then the experimental technique is deserving of further mention. We have drawn a smooth curve through the results in Fig. 3 and used this and the curve in Fig. 12 to obtain the values of shown in Fig. 13. Finding continuous is a contradiction of Fig. 4, which deserves comment itself. Levine obtained the solid circles in Fig. 4 using Fig. 2 and a smooth curve through the points shown in Fig. 3. We have replotted these solid circles in Fig. 14. We submit that there is no basis for his two straight lines (dashed in Fig. 14), and therefore have superimposed the curve that we believe is indicated. Certainly, there is reasonable doubt that a discontinuity in dH/dT exists at 220°K, even when one accepts Fig, 2. Furthermore, if one draws the straight lines indicated by least-squares treatments of the results presented as open circles in Fig. 4, their intersection is at about 196°K, not at 220°K as shown. Thus the alleged agreement between Figs. 3 and 4 with respect to "break" temperatures is not apparent. In Fig. 9, Levine has drawn a straight line very much different from the one indicated by a least-squares treatment. Obviously, he has done this because he recognized that H = 0 when T = 0. He is consistent in drawing the low-temperature curves in

Jan 1, 1968

By Tilden Cummings

The extractive mineral industries share a number of common characteristics and basic problems which are completely different from those associated with manufacturing and mercantile operations. These industries now supply about 95% of the inanimate energy consumed in this country, and share with agriculture in providing virtually all of our basic raw materials. Mineral producers, like farmers, are subject to the economic hazards of fluctuating markets and prices. Unlike farmers, however, they cannot renew the productivity of the earth, but must seek continually for new sources of supply. The necessity for exploration and development of new reserves, to replace those used up by production, introduces additional factors of economic risk. These operations require the expenditure of large amounts of capital, often well in advance of any assurance of profitability. Commercial banks that understand these special problems can provide a variety of constructive financial services to the mineral industries. The history of cooperation between banks and mining enterprises has yet to be written, but there is every indication that it would encompass a period of hundreds of years. Records refer to depository and lending services by the early European private bankers involving precious metals and jewels. Many of the exploratory voyages to the Far East and the New World were organized with the financial backing of wealthy syndicates, some of which also provided banking services, in the hope of finding new sources of gold and other precious minerals. In the United States many large banks are closely identified with the development of some of the larger mineral deposits such as the Mesabi Range and the gold fields of California.

Jan 5, 1965

By F. Keller, E. H. Dix, L. A. Willey

The consideration of alloying elements for aluminum has led to a series of investigations of the equilibrium relations between aluminum and those alloying elements. Therefore, the aluminum end of the aluminum-antimony diagram has been studied. The general form of the aluminum-antimony equilibrium diagram has been worked out by Campbell and Mathewsi and by Tammann.2 Canlpbell and mathews described principally the beginning of solidification. They found the curve of beginning of solidification rising gradually from the melting point of pure alunlinum to a maximum at about 67 per cent. aluminum. After a slight lowering of the curve at a little greater antimony concentration the curve again rises to a maximum at 18.4 per cent. aluminum, which corresponds to the compound AISb. The curve then drops to the melting point of pure antimony. Tamrriarln explained the maximum occurring at about 67 per cent. aluminum as the result of the slow formation of the single compound AISb. The space lattice of the compound AISb, according to Owen and Preaton,³ is face-centered cubic, the antimony atoms being intermeshed with an identical aluminum lattice. Very little, if any, work has been done on aluminum alloys containing small amounts of antimony. The Present Investigation It has been the purpose of this investigation to determine the solid solubility of antimony in aluminum and also to investigate the eutectic temperature and concentration. The experimental work has been carried out in a manner similar to that described in a previous paper4 from this laboratory.

Jan 1, 1931

By T. Sekimoto, T. Kokubo, M. Yamamoto, K. Masuda, T. Moro, H. Sakamoto

The choking-free cyclone was developed primarily to remove solid particles suspended in a slurry containing fibrous materials, such as municipal solid waste. This cyclone is characterized by a screw conveyor at the underflow side of the cyclone. The screw conveyor has a hollow rotational shaft for air supply and is driven by a variable speed motor for discharge control. Even if the underflow discharge is highly concentrated, this type of cyclone can be stably operated without nozzle choking. High classification efficiency similar to that of a conventional cyclone can be obtained as a result of air introduction through the hollow rotational shaft. The recovery of organic matter and the removal efficiency of inorganic matter were actually improved by the application of this cyclone to municipal solid waste. After applying this cyclone to the desliming of fine sand, sand product of low water content was recovered.

Jan 1, 1980

By AIME AIME

FREE competition, long the controlling ideal of domestic trade within the United States, has had the fundamental geographical advantage of functioning in the world's largest area of unrestricted commerce. Goods moved back and forth across state lines, unimpeded by customs, and industrial operations have developed rapidly to meet the expanding needs of a pioneer country richly endowed with natural resources. Fifty years ago, antitrust laws were adopted to protect the competitive private enterprise principle. It became illegal for one person to combine with another to restrain trade or commerce among the several states or with foreign nations. The original legislative measures defining this philosophy were the Sherman Act of 1890 and the Clay- ton Act passed in 1914. The development of Europe and other parts of the world was influenced by different conditions which led to a different theory of trade. Here were many small nations, with limited natural resources and a thin market, and they attempted to protect their national economy by tariff walls. International business arrangements for the purpose of diminishing the ups and downs of the more competitive system --crux of the modern cartel operations-seemed a logical device to stabilize production and guard the interests of both workers and consumers. European governments as well as European industrial interests became convinced that if com- petition could be held in bounds the danger of business depressions and un- employment could be reduced.

Jan 1, 1944

By George C. Coupland

Ecstall Mining Limited, a wholly owned subsidiary of Texas Gulf Sulphur Company, is the owner and operator of the Kidd Creek Mine including the concentrator complex located near Timmins, Ontario. Canada, approximately 450 miles north of Toronto. The mine, concentrator and Timmins form a triangular arrangement with a 17-mile rail link connecting the mine and concentrator and both of these facilities 18 and 14 miles respectively by road from Timmins. A core drilling program in the spring of 1964 established the presence of a large massive sulphide orebody which was to become the Kidd Creek Mine. Texas Gulf Sulphur had been conducting an intensive search for base metal in various parts of Northern Ontario and Quebec since 1957. Of several thousand anomalies detected in airborne electromagnetic surveys, several hundred warranted ground inspection, but only one of more than sixty drilled became a commercial orebody, the Kidd Creek Mine. The geophysical exploration work has been well covered in a paper written and presented by Van Donohoo, presently a Vice-President of T.G.S., at the American Mining Congress in San Francisco in October 1969. GEOLOGY The orebody lies within a series of overturned rhyolitic flows and pyroelastics with a major peridotite intrusive to the east. The hangingwall and footwall are composed chiefly of intermediate volcanics, andesite and dacite. The southern end of the orebody appears to terminate abruptly against greywacke while the north end is bifurcated and the structure obscured.

Jan 1, 1970

By F. A. Olson, S. L. Pohlman

A unique method of measuring weight loss as a function 3 of time, with a sensitivity of 10-5 grams, while leaching copper minerals with a flowing acid leach solution has been developed. Kinetic results obtained coupled with visual and microprobe analyses show topochemical reaction for the leaching of chrysocolla with sulfuric acid. The kinetics follow a shrinking core model and show ion diffusion through a product layer, chemical reaction at the unreacted core interface and mass transfer through the boundary layer as being important.

Jan 1, 1974