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By Jean-Guy L. Gauthier

"With the Ontario Ministry of the Environment stipulating that the cumulative concentration of copper, lead, zinc and nickel in mine mill effluent must be no greater than 1.0 milligram per litre, it has become necessary for the mining industry of find some form of treatment for the removal of heavy metals from effluent waters.To comply with these guidelines, it became necessary for Mattabi Mines Ltd., which is situated 50 miles Northeast of Ignace in Northwestern Ontario, to develop a compact, cost effective and technically sound treatment process to remove heavy metals from their tailings overflow. A design committee consisting of mine metallurgists, environmental engineers, a Dutch research and development team and the equipment supplier engineering staff was set up to accomplish this.Using some new and innovative wastewater treatment equipment, the guidelines established by the Ontario Ministry of the Environment can now be met. The sludge produced from the precipitated heavy metals is sent directly to the concentrator, thus eliminating the danger of re-dissolution of the metals in a landfill site, while recovering some of the valuable metals that would otherwise be wasted in a sludge landfill."

Jan 1, 1980

By R. K. Singhal

"On the mining side the Canadian oil sands industry has become proficient in excavation and disposal of ore and overburden. Nearly twenty years of mining experience is now behind this industry. While local improvements to existing mining systems and practices will continue, it is believed that some further gains in productivity can be achieved by selectively introducing new ideas from other mining and non-mining industries. This type of technology transfer is vital for over-all cost-effective technology enhancement of oil sands mining operations.Discussed in this paper are the issues of mining equipment, equipment sizing, microprocessor and computer based technol¬ogy as applied to mine-wide data management, automation and remote control and a projection of likely mining systems in the year 2000!This paper reviews the ""state-of-the-art"" in selected surface mining systems and attempts to evaluate the forthcoming technology and its application."

Jan 1, 1989

By Bish Chanda

In the minerals business, like any other commodity-based business, management faces the daily challenge of holding down costs while the real prices of products are continually falling on an inflation-adjusted basis. Since the marketplace sets the prices, often without any premium attached for product quality, being one of the lowest-cost producers is the most viable competitive strategy. Continuous improvement is the mantra that can make the difference in terms of long-term survival of a mining company. Yet, this message has not always been followed, especially during periods of prosperity ushered by high commodity prices. More often than not, the need for improvement is only triggered by a crisis. This may be caused by events such as the onset of a severe economic recession, a prolonged oversupply situation due to an optimistic expansion of capacity during the period of prosperity, or simply falling profits alerting management to bring costs under control. At that time, there would be a need to implement a new cost-saving program, bring in a consultant to find ways to reduce costs, or re-activate an old program that had been shelved for some time.

May 1, 2003

By M. Beech-Jones

The increased emphasis on the efficient utilization of capital and mineral resources has led to several new advances in the science of mineral separation. One example of a recent development is the application of high-capacity high-intensity wet magnetic separators to fine hematit e recovery by a leading Canadian iron ore producer. The iron ore recovery feasibilit , flow-sheet development, circuit operation and metallurgical performance are reviewed.

Jan 1, 1979

By H. E. Frimmel

Most of the gold in the Late Archean Witwatersrand Basin is of detrital origin but, in its present form, it is metamorphosed. The only relict detrital features preserved are the morphological characteristics of some placer gold particles. Regional burial metamorphism in the shallower and deeper levels of the Witwatersrand Supergroup reached temperatures around 300°C and 350°C at pressures between 2 kbar and 3 kbar, respectively, estimated from phase relations, chlorite-chloritoid exchange thermometry and chlorite thermometry. Metamorphism of the gold involved compositional homogenization of individual gold particles and partial recrystallization. Various infJ.1tration events caused the partial mobilization of the gold at slightly lower temperatures, between 240°C and 300°C. These infiltrations can be related to crustal extension during the deposition of massive carbonate sequences of the Transvaal Supergroup (around 2.5 Ga), and later to the emplacement of the Bushveld Complex, and to the Vredefort event around 2.0 Ga ago. The mobility of the gold was dependent on the sulfur fugacity prevailing in a particular horizon which, in tum, was determined by the amount of pyrite (and other sulfides) present in that horizon. With the sulfur fugacity being controlled by stratigraphy, low fluid rock ratios in a pyrite-rich horizon were most conducive for the mobilization of the gold. Thus, long-range gold mobilization in the Witwatersrand Basin can be expected to be the exception rather than the rule.

Jan 1, 1994

By J. E. Hawley

"The property of Francoeur Gold Mines, Limited, lies directly west of the Armfield mine in Beauchastel township, Abitibi district, and 12 miles west and slightly south of Noranda. The gold deposits are of particular interest because of their replacement character and close association with fault zones. The property was originally staked in 1923 following the discovery oi a mineralized zone near the eastern boundary. This became No. 1 orebody. Later discoveries in 1936 of No. 2 and No. 3 orebodies led to underground development and actual mining in July, 1938. A fourth orebody, No. 8, was found in 1939.The following is the production record up to December 31st, 1947:Beginning in September, 1944, ore was shipped to Noranda as siliceous flux, but late in 1946 milling of low-silica ore from No. 1 orebody was undertaken until operations were temporarily suspended in 1947.The four main ore deposits, Nos. 1, 2, 3, and 8, consist of siliceous ferrocarbonate and albite replacement bodies mineralized with fine pyrite and specularite in schistose fault zones in Keewatin volcanics. Barren to low grade quartz veins though present in some are uncommon, but small stringers of quartz are usually present wherever here and there visible gold is found. Nos. 1, 2, and 3 deposits lie in a major fault zone that extends completely across the property from west to east (over 7,000 feet) and dips N.40° to 50°, and are separated by intervals of 1,800 to 2,000 feet respectively. The fourth lies in a smaller fault zone striking east and dipping on the average 65°S.No. 1 orebody has been explored by mining to a depth of 500 feet, No. 2 to 400 feet, and No. 3 to slightly less than 300 feet . The greater part of No. 8 lies above a depth of 200 feet, but a raise has recently .been driven through from the west end of the 5th level of No. 1 to the 2nd level on No. 8 zone. Most of the ore of No. 8 zone above the 2nd level and of Nos. 2 and 3 above the 3rd levels has been removed."

Jan 1, 1954

By R. B. Kaunda

One fundamental requirement for surface and underground rock engineering is the ability to characterise the rock mass. An accurate characterisation of the rock mass allows rock engineers to optimize designs safely and economically. A number of classification systems have been developed in the past 50 years to help characterise rock masses such as RMR, Q system, Rmi, and several others. The challenge in developing rock characterisation schemes is often practicality, i.e. creating systems with relatively simple inputs for the everyday practitioner. A second challenge is the degree of subjectivity often inherent in commonly used classification systems. These challenges are especially exacerbated in weak rock or densely jointed rock masses. This paper introduces a new approach to characterise densely jointed rock mass using artificial neural networks and principal component analysis, based on principles commonly used in the geotechnical engineering of rock fills and waste rock dumps. Thirteen input parameters are dimensionally compressed using principal component analysis. Using a global database with more than 100 case histories, an artificial neural network is developed to conduct the rock mass characterisation. The advantage of this approach is less subjectivity as commonly used engineering (quantitative) terms are put to use. A further advantage is that given that the method is site-data dependent, it allows for ‘fine tuning’ of the model for a specific site.

Jan 1, 2015

By Jan E. Nesset, L. Paul Staples

"High Gradient Magnetic Separation (HGMS) technology, although developed over 2 decades ago, has not been widely applied to the separation of sulphide minerals. Under conditions of strong magnetic field gradients, weakly magnetic minerals such as chalcopyrite (CuFeS2) and marmatite (Zn(Fe)S, sphalerite with iron in solid solution) behave paramagnetically and can be effectively separated from diamagnetic minerals such as galena (PbS). The application of this technology to the separation of Cu-Pb and Zn-Pb bearing streams in the treatment of fine grained complex sulphides may in some cases be more effective than separation by flotation. A 2 TPH Sala HGMS pilot plant was operated at Brunswick for a nine month period, ending in March 1995. The testing demonstrated the mechanical reliability of the technology, the consistency of operating results and the scale up from laboratory testing. HGMS is seen as a complimentary technology to flotation, best suited to performing those separations of galena (and other diamagnetics) which flotation does not do as well.IntroductionBackgroundSince the turn of the century, the magnetic character or magnetic susceptibilities of minerals have been determined with increasing precision and accuracy. Figure 1 illustrates specific magnetic susceptibilities of some common minerals. As long as susceptibility ranges do not overlap, separation is possible.In 1937, the principle of using a magnetizable matrix material in a magnetic field to increase both magnetic flux density gradients and number of capture sites for susceptible minerals was first applied (Frantz). It was not until the 1970's, however, that the genuine development of wet high gradient magnetic separation began with the introduction of very fine matrix materials to the magnetized volume of large solenoid magnets. Today, dozens of HGMS units purify, filter and separate minerals, primarily for the removal of iron stained minerals from clays used in the paper coating and china clay industries and for the recovery of fine titanium and iron oxides in the iron ore industry. Only the Garpenburg mill in Sweden is currently applying a continuous HGMS machine to separate complex sulphide minerals; upgrading a lead concentrate since 1988."

Jan 1, 1996

By L Thompson, R C. West, T S. Kho

In 1978, the Outotec direct to blister flash (DBF) smelting process was commercialized with the commissioning of the Glogow 2 smelting facility in Poland. Since then four further DBF facilities have been constructed, two at Olympic Dam, one in Zambia and most recently one at Glogow 1 in Poland. The DBF smelting process differs considerably from conventional smelting process in both chemistry and unit operations, presenting opportunities for flowsheet capital and operating cost savings particularly when the concentrate copper grade is high. WorleyParsons has amassed considerable expertise in the Direct to Blister process and in this paper the process is compared to the modern two stage Double Flash process. The processes are modeled, and the key operating parameters, consumables and production metrics are directly compared. Subsequent flowsheets, key equipment lists and capital costs are also presented for comparison and discussion. The results show the range of concentrates which are most economically treated by the DBF process relative to those best treated in conventional processes along with those concentrates which could be treated by either process. INTRODUCTION The Outotec Direct to Blister (DBF) process was developed and installed at Glogow in 1978 (Czernecki et al., 2006). Currently there are a total of five DBFs built on three sites: Glogow No.2, Olympic Dam No.1, Olympic Dam No.2, KCM Zambia and Glogow No.1, being the most recently constructed. The DBF process was the first flash furnace process to produce blister copper and paved the way for the subsequent development of the flash converter and other continuous converting processes. Today four flash converters are in operation taking the total number of flash furnaces producing blister copper to eight. In all DBF operations it is the unique ore and concentrate composition which made selection of the DBF process the most attractive. In all cases, the concentrate is relatively high in copper but low in iron because chalcopyrite is not the major constituent. When considering smelting options for high copper, low iron concentrates a key question is then often asked, “At what point does it become economic to switch from two stage smelting and converting process to the DBF process?”

Jan 1, 2019

By Kevin S. Borthwick

The subject of this paper is a facility wide Distributed Control System (DCS) upgrade being completed at a large copper and molybdenum mine. This paper will discuss the innovative hardware and software technologies employed in the new control system. This paper will also describe the planning process, migration path and simulation techniques used to ensure the success of such a large and complex DCS upgrade.

May 1, 2008

By F. Weinberg

"The recent development of the continuous casting process for steel has required basic understanding in a number of areas in the metallurgcal sciences. In some areas, information is still lacking. The success of the application of basic knowledge and research to the process is evidenced by the fact that a large percentage of the steel now produced in the world is produced by continuous casting.A number of areas in which metallurgical science has contributed and is currently contributing to better design and control of the continuous casting process and leading to a better quality product will be considered. These include:(a) heat transfer studies of the entire casting process;(b) fluid flow in the tundish, strand and liquid metal stream;(c) solidification structure and segregation;(d) strength and ductility of steel at high temperatures related to bulging and cracking; and(e) problems related to horizontal casting developments.IntroductionThe continuous casting of steel is a relatively new technology in steelmaking. It is now used extensively throughout the industry. In Japan, for example, continuous casting accounts for approximately 40010 of steel production, and this value is expected to increase to over 50% in the near future . New steel plants are now designed to use continuous casting exclusively. This means the process must work well and be completely reliable, because all the steel produced must go through the caster.The development of the continuous casting process in a short period of time has required concerted research and development in many areas . I shall cite a number of examples of these developments and refer to work done in Canada when applicable. No attempt will be made to review all of the research in continuous casting, nor refer to all of the workers in the field.The developments in continuous casting are based in many cases on metallurgical science, as described below. The use of metallurgical science in these developments is qualitative, in that concepts and idea s are used, as opposed to quantitative values calculated from fundamental equations. In general, most metallurgical problems are too complicated to enable fundamental equations to be used without the introduction of uncertain approximations and boundary conditions in the calculations.Starting at the beginning of the steelmaking process, very extensive research and development has been carried out to produce liquid steel of the required composition and temperature. The replacement of open hearth furnaces with BOF furnaces reduced refining time from many hours to roughly 30 minutes for 250 tons of steel. Two BOF furnaces effectively enable a continuous flow of steel to be available in a plant, essential for the introduction of the continuous casting process. This area of research will not be considered here."

Jan 1, 1981

By P. Plante

Contaminated neutral drainage (CND) is characterized by the presence of metal concentrations above regulatory requirements at circumneutral pH in mine drainage. The generation of CND by tailings and waste rocks is a growing concern for the mining industry due to increasingly restrictive regulatory requirements. Difficulties in CND prediction arise from the low oxidation rates of sulfide minerals and from the metal retention potential within the wastes. In fact, sorption phenomena may induce an important delay in the development of CND. For now, it is not possible to adequately consider this delay using the prediction tools developed for acid-mine drainage, such as humidity cells, columns and lysimeters. This work aims to present the new approaches currently under study for CND prediction, particularly the use of a chelating agent in kinetic tests. The main challenge of CND prediction is to quantify the metal retention potential of mine wastes, especially when sorption phenomena are involved in metal retention. Three approaches are currently used to overcome this difficulty. Firstly, the sorption potential is estimated using batch sorption studies. The second approach consists of artificially saturating the sorption potential of the mine waste by contact with a contaminated leachate in sorption-enabling conditions until saturation of the retention potential. These approaches both require that the possible metals involved in CND are known (as well as their chemical speciation) prior to the tests, which require an exhaustive material characterization. Although the two methods enable a qualitative estimation of the retention potential of mine wastes, their results are difficult to scale up from the laboratory to the field since some important parameters are not taken into account. A third proposed approach consists of inhibiting metal sorption at the source using chelating agents. The hypothesis is that chelating the metals immediately upon their release from the oxidation of sulfide minerals will inhibit all geochemical interactions (sorption, complexation, secondary mineral precipitation, ion exchange, etc.) between the metal and its environment. The ideal chelating agent will inhibit geochemical interactions after metal release in the drainage waters without having any impact on the sulfide oxidation and acid neutralisation rates. These approaches were tested over a waste rock sample that is known to naturally generate CND after a few decades of weathering. Results show that kinetic testing (weathering cell, ± 70 g samples) using a chelating agent (EDTA) in the leaching water renders higher metal concentrations in the leachates than a control sample without EDTA, suggesting that sorption (and possibly other geochemical interactions) is inhibited. These results suggest that the combination of these approaches can be efficiently used for more precise CND prediction from mine wastes. Future work will be done using the chelating agent approach over larger scale tests such as columns (± 80 kg samples) and field cells (± 100 tons) in order to propose an integrated approach for CND prediction.

Aug 1, 2013

By V. K. Srivastava1

Coal mine fires burn about 20?21 million tons of coal per year throughout the world, which not only results in loss of valuable coal reserves, but also cause serious environmental hazards over large areas. The famous Jharia Coalfield of Dhanbad, India is no exception; here a coal mine fire originally reported nearly a century ago is still continuing unabated in vast areas of the coalfield. In this paper, an attempt has been made to analyse high resolution multispectral thermal images of ASTER for mapping and delineating surface and subsurface coal mine fire areas of this coalfield. From the generated temperature gradient map, as well as from the surface temperature anomaly map, it has been possible to differentiate shallow and deep coal mine fire regions and other erroneous cultural features. It is observed that the coal fires are distributed mostly in the eastern part of the area, which has branched into two major coal fire zones: one along Lodna- Tisra-Bhulanbarari-Kujama-Jealgora Jharia and the other along the Kusunda-Kendudih area. The western fire zone is restricted in Dumra-Nadkhurkee-Jayramdih area. From ASTER thermal infrared data from 2006, the total affected area is estimated to be about 7 km2, of which the deep subsurface coal mine fire area is around 3 km2 and the shallow surface coal mine fire area is around 4 km2, as compared to 18 km2 coal mine fire area estimated in 1987 using Landsat TM thermal band data. In other words, the fireaffected region has decreased by about 50 % during the last 18 years. However, such decrease in coal fire area is seen in the central portion only, and has in fact increased in the south eastern parts of the Jharia coalfield. Study of Differential Interferometery images, generated from Earth Resources Satellite (ERS) synthetic aperture radar (SAR) tandem data has shown that the active coal mine fires are in general associated with low topography/subsidence areas.

Aug 1, 2013

By K. N. Subramanian, H. Kanduth

"It is well known that chalcopyrite can be dissociated into simple sulphides by heating with elemental sulphur at about 475°C:CuFeS2 + S -> CuS + FeS2Experimental work was undertaken to determine whether this ""activation"" could be used to advantage in the selective leaching of copper from chalcopyrite concentrate.A method of treating copper concentrate with molten sulphur was developed and the activated product was leached in dilute sulphuric acid using oxygen, ferric iron or manganese dioxide as the oxidant. The object was to obtain a solution suitable for electrowinning with minimal purification, but it was impossible to obtain rapid extraction of copper without simultaneously dissolving a large proportion of iron. This was attributed to the fact that some of the copper was present as a low iron-copper sulphide (idaite) and that the pyrite formed during the ""activation"" step was more easily oxidized than natural pyrite."

Jan 1, 1973

By Q. Dong, S. A. Nightingale

An investigation has been carried out to assess the effects of an applied voltage on the dissolution rate of MgO refractory in a steelmaking like slag. In this study corrosion results obtained from dip tests using a dense direct bonded MgO refractory in a CaO-SiO2-Fe2O3-FeO-MgO slag are presented. These results demonstrate that the application of a voltage across a dense MgO refractory-slag interface can change the rate of refractory dissolution. For the slag composition used and the voltage range tested, it was found that a maximum corrosion rate was obtained at a voltage setting of -0.45V. The results of this investigation have been explained in terms of voltage affects on Marangoni (interfacial tension induced) stirring and its effect on the MgO dissolution reaction that is at least partly controlled by mass transfer in the slag.

Jan 1, 2004

By Szilvia Szabo, Jozsef Paulovics, Ljudmilla Bokanyi

"Waste recycling is one of the most important challenges of the XXI century. The recycling of wastes is closely related to and bases on the mineral processing. Many mineral processing techniques and equipment are applied in this field. The principles of the characterisation of wastes and design of technologies is rather similar to the classic mineral processing. Nevertheless, the diversity of the wastes and their complex composition and properties, as well as their environmental impact requires a special approach.Solar elements have sandwich structure of glass substrate and cover, as well as a very thin semiconductor layer. CdTe semi-conductor can be recycled by flotation. Within the RESOLVED (LIFE European Framework) R&D project on the recycling of solar elements the surface properties of pure CdTe semiconductor and pure glass were investigated by the measurements of zeta-potential using Zeta PALS Brookhaven instrument at University of Miskolc. Applied surfactants were: potassium ethyl xanthate; the anionic oxhydryl Aero Promoter 825 or Flotinor SM 35; the cationic Armoflote 43 or Armoflote 64, as well as Hostaflot LET (dithiophosphoric acid diethyl ester) and Hostaflot M91 (mercaptobenothiazole). The tested electrolyte was sodium-silicate. Zeta-measurements were carried out in full pH-range. Interfacial interactions were detected and interpreted. The basic results were verified by the flotation kinetic tests.Finally, the flotation technological experiments were carried out at a semi-technical scale using the real obsolete solar elements. The particle size at the liberation degree of 98% was as fine as below 5 µm. A special flotation cell providing the generation and distribution of very fine air bubbles was built. The pre-concentrate for the manufacturing of the test solar module was performed and transported to the BAM Institute (Berlin), the principal co-ordinator of the Project, and then further to the First Solar (USA) where a new panel was manufactured using recycled semi-conductor."

Jan 1, 2016

By A. Monballiu, J. A. Martens, Y. W. Chiang, A. Van Audenaerde, R. M. Santos, T. Van Gerven, B. Meesschaert

In this work, bioleaching of non-sulphidic materials by applying chemoheterotrophic bacteria and fungi is studied. It was found that the tested fungus, Aspergillus niger, leached substantially more nickel from olivine than the tested bacterium, Bacillus mucilaginosus. A. niger also outperformed fungal species Humicola grisae and Penicillium chrysogenum in the leaching of olivine. Contrary to traditional acid leaching, the microorganisms leached nickel preferentially over magnesium and iron. On average, a selectivity factor of 2.2 was achieved for nickel compared to iron. This can potentially facilitate postprocessing of the leach liquor and reduce the cost. The impact of ultrasonic conditioning on bioleaching was also tested, and substantial increase in nickel extraction with A. niger was observed. This was credited to an increase in the fungal growth rate, the promotion of particle degradation, and the detachment of the stagnant biofilm around the particles. Furthermore, ultrasonic conditioning enhanced the selectivity of A. niger for nickel, resulting in a selectivity ratio for Ni/Fe equal to 3.5. The chemical resistance of the selected microorganisms to several heavy metal and metalloid (As(III,V), Cd, Cr(III,V), Ni, Pb, Zn) was evaluated. It was found that, with the exception of As(v) and Cd, A. niger has high tolerance to these components. Therefore, this biohydrometallurgical route can potentially be applied to non-sulphidic wastederived materials, such as industrial slags, ashes and sludges.

Jan 1, 2014

By Jochen Petersen, Caroline Muzawazi

The technical feasibility of ammonia leaching of PGM bearing Platreef flotation concentrates was investigated as an alternative method for the recovery of base metals prior to precious metal recovery. The composition of the concentrates includes 2.02% Cu and 3.17% Ni, and the major base metal minerals are chalcopyrite and pentlandite. Optimal leaching conditions were initially established in shake flask experiments to be a solution containing 4 M NH4OH, 4 M (NH4)2CO3 and a pH range between 9 and 10. These were used as base case conditions in column and batch stirred tank reactor tests, where the effects of total ammonia concentration and operating temperature were explored further. At optimal conditions nearly 100% Cu and Ni extraction were obtained in the batch stirred tank reactor, and 95% Cu and 60% Ni extraction was obtained in columns. The activation energy for chalcopyrite and pentlandite was 36 kJ/mol and 16 kJ/mol, respectively, in both reactors, indicating different reaction pathways for the two minerals. Gas-liquid mass transfer appears to be the limiting reaction step in columns much more than in tanks, and the degree of ammonia loss to air is significant. This initial test work indicates the feasibility of using ammonia leaching for this and similar materials as an alternative route to conventional smelting and refining prior to PGM recovery, but a number of technical challenges still need to be overcome.

Jan 1, 2014

By L. Bichler, A. Siebert-Timmer

In this research, novel YSZ ceramics doped with 5 mol% Nd2O3 were manufactured via Spark Plasma Sintering (SPS) process. The sintered Nd2O3-YSZ ceramics were subjected to a static supercritical water environment at a temperature and pressure of 400 °C and 31 MPa, respectively. The weight loss and microstructure development of the sintered ceramic before and after exposure to supercritical water was studied. The results suggested that Nd2O3 addition significantly improved the degradation resistance of the YSZ ceramics. This was attributed to the improved phase stability of the 5 mol% Nd2O3-YSZ ceramics, since X-ray Diffraction (XRD) studies showed that the cubic stabilized matrix in these ceramics was retained after exposure to supercritical water. In comparison, pure YSZ ceramics exhibited a rapid degradation behavior as well as a phase change.

Jan 1, 2014

By John Smith

"The RTZ Corporation PLCFrom a company's point-of-view, a good investment decision is one which results in the purchase of an asset that is worth more than it costs. Thus, in order to judge the merit of an investment opportunity, it is necessary to estimate the value of the assets to be acquired.Discounted cash flow (DCF) analysis has become widely adopted by companies in assessing potential new investments. The principle is a simple one: invest in projects which have a positive net present value, and reject those which do not. However, perhaps because of its apparent simplicity, DCF analysis is frequently misused. Good practice in the use of the technique is discussed, together with several common misconceptions.Sound analysis requires sound data; thus, the valuation process relies heavily upon a wide range of specialists to provide the basic input from which cash flow forecasts can be built up. The analyst must maintain close liaison with these specialists from the outset in order to ensure that the data provided is indeed relevant and complete.IntroductionBefore turning to the main subject of this paper ""How Companies Value Properties"", it is of interest to consider first a slightly different question ""Why do Companies value Properties""? In other words, for what purposes are such valuations prepared? Certainly the commonest, and probably the most important circumstance in which a valuation is required is when the company is considering an investment opportunity. This may be the direct purchase of a property or group of properties from a third party, but could also be the opportunity to develop a new operation or expand an existing one.A very simple objective in making any kind of investment is to make our shareholders richer than they would otherwise have been. That is, to make investments whose value to shareholders exceeds the consideration required to acquire them. Thus the investment decision focusses on the difference between an asset's value and its cost.This distinction between ""value"" and ""cost"" is an important one. Study of a company's balance sheet may tell a lot about the cost of this company's assets, but very little about their value. Then again, it is sometimes argued that a business should be bought because this will result in assets being acquired for less than their replacement cost. This merely compares one cost with another, it says nothing about value."

Jan 1, 1991