Search Documents

Obtaining financing for mining and exploration projects has been difficult for the last several years, particularly for junior companies. Today, though, the purse strings of investors appear to be loosening, leaving the industry with many questions about financing in the coming years. How have capital markets and exploration spending changed? Are there signs of improvement? Where has capital been raised in private, public markets, stock exchanges, private equity, etc.? What companies successfully raised capital in the last year? How are they spending it? How are traditional and alternative funding sources investing in mining? What are the issues mining companies need to know about when tapping alternative sources of capital? Those were some of the questions that were answered at the Current Trends in Mining Finance conference, sponsored by SME and the New York Section April 26-28. Held in New York City, the conference attracted 115 professionals who work on the finance and economic side of the mining industry. Three of the conference organizers talked with Mining Engineering about the conference and the state of financing in the industry today. Tim Alch (TA) is managing director with Behre Dolbear & Co. Alan Oshiki (AO) is executive vice president with the Abernathy MacGregor Group. Henry Weingarten (HW) is managing director with the Astrologers Fund Inc. Here is what they had to say.

By H. A. Doerner

"Statistics show3 that in 1927 the United States consumed 60 per cent of the world's production of chromite and produced none. The uses of chromium are rapidly expanding, and a dependable supply is essential to our industries. Since the political and commercial control of our supply of chromite is now in foreign hands it is prudent to determine how this nation can best prepare to supply its need for chromium if the imports were cut off or restricted and whether it is now possible and desirable to stimulate production of chromium from domestic deposits. We have only small amounts of chrome ore of high enough grade to meet present trade requirements. Therefore the Bureau of Mines is making a study of methods for beneficiating our low-grade ores.Chromite (Cr203.Fe0), is the only commercial source of chromium. For refractories, a minimum of 40 per cent Cr203 and a low silica content (5 to 8 per cent) is usually specified. In most instances bricks or lumps having a physical structure that will not crack when heated are required. The only way an inferior ore could be adapted to this use world be to concentrate it and develop a satisfactory binder to make bricks out of the concentrates.For making ferrochrome the requirements are a minimum of 45 per cent Cr203 and an iron content not exceeding one-third of the chromic oxide. On some low-grade ores gravity concentration will give a product meeting these requirements; other ores yield concentrates containing too much iron or other impurities to be saleable."

Jun 1, 1930

By Steve Kral

Competition from foreign coal producers could displace as much as 9 Mt/a (10 million stpy) of US coal bound for power plants located near waterways. But, according to a Maryland-based coal consultant, it could be worse. Theoretically, about 52 Mt (57 million st) of domestic coal could be vulnerable to imports by 1990, said Forrest Hill, of Hill & Associates of Annapolis. Hill was speaking to about 150 coal industry executives and experts at the third annual Coal Marketing Strategies Conference in November. Most were at the Denver, CO conference to pick up tips on how to sell coal in an oversupplied market. Imports threaten domestic markets Of the 200 utilities studied by Hill and his staff, 119 are situated near major waterways, he said. However, most of those waterways are not equipped to handle coal from the shipping lanes. Good news for US coal producers. But don't breathe too easily. Foreign coal still poses a major threat to domestic markets, Hill continued. The strength of the US dollar is an obvious factor. But easy access to US utilities located on waterways combined with low rates for ocean vessels give foreign producers another edge. And foreign mines are typically low cost producers. For example, Hill said Colombia's huge Cerrejon mine can deliver coal to an Illinois power plant for $47.87/t ($43.39 per st). That compares to $52.85/t ($47.95 per st) from a Kentucky coal mine. Also, Colombian coal producers can generate a cash flow even if the coal sells for $27.50/t ($25 per st). The main competition US producers face from abroad, as Hill sees it, comes from Australia, Canada, Colombia, Poland, South Africa, and, perhaps, from Venezuela. Domestic producers, however, do have some things going for them. Most US coal buyers, Hill said, "are not wild about the idea of buying foreign coal." A 10% price advantage or pressure from public utility commissions would be needed to force some of them to buy foreign coal, he said. Some of the utilities contacted said they would not commit to more than one-third of their stockpiles to a foreign source. Another advantage for US producers is that they have room in their long-term contracts to cut prices and still maintain a profit, Hill said. Railroads, too, have high profit margins written into their rate structures. They are also aware of the import threat. Therefore, they may reduce their rates accordingly to keep their markets. Marketing's role The energy price shocks of 1972 and 1976 caused major adjustments in world economics. Coal was no exception. High oil prices caused many utilities to look at less expensive coal. As the market improved, coal prices began to respond, said R. Gale Daniel, of Anaconda Minerals Co. But clean air legislation and the strengthening dollar caused havoc in the coal markets, he said. The price of oil crashed, taking with it predictions of record coal use. The result is an oversupply of coal that has led to price cutting. Now, coal marketing must be recognized in its "true leadership role," Daniel said. Marketing people must know when to use spot sales to balance production objectives and maintain cost-effective-

Jan 1, 1986

By R. W. Baker

"The development of uppers drilling at Brunswick Mining is reviewed. This paper describes design criteria for drilling patterns and the research required for selection of a suitable drill jumbo. The success of the uppers drilling program based on operating procedures is highlighted. IntroductionBrunswick Mining and Smelting Corporation Ltd., operates a 10 500 tonnes per day lead /zinc/copper I silver underground mine some seventeen miles southwest of Bathurst, New Brunswick .The No. 12 orebody, first discovered in 1952 by a group headed by M.J. Boylen, had extensive development, including two shallow shafts (500 ft), and test work carried out on it by St. Joe Lead between 1953-1957. However due to complex metallurgy and depressed metal prices, the operation was suspended.In 1961, a group comprised of M.J . Boylen, K.C . Irving and Patino acquired the rights of St. Joe Lead to the No. 12 property. A concerted development plan was initiated along with construction of the necessary sur face facilities and by July 1964, the property was in production at 4500 tons per day.In 1967 Noranda Mines Ltd. acquired operating control of Brunswick Mining and Smelting Corporation Ltd."

Jan 1, 1988

By M. E. Bell

The term "operational research" was probably first used to describe work started under E. C. Williams, now Director, SHAPE Air Defense Technical Center, late in 1937 or 1938, at the Bawdsey Research Station of the British Air Ministry, a laboratory center concerned with the development of radar equipment. After the practicability of the early techniques had been demonstrated, a large (for those days) program of development and installation was authorized. It was very soon realized, both by the Royal Air Force and by the scientists that almost as important as the gear itself was the way in which it should be used. Accordingly, it was decided that some scientists should cooperate to study the way in which the equipment should be deployed and operated in conjunction with the Royal Air Force. To distinguish this work from the normal work of a research and development establishment, the term "operational research" was coined. It merely meant at this time that this particular section of scientists was to be concerned with the use of the gear rather than with its technical development and it seemed natural to those concerned to adopt the word "operations" which has a specific connotation in the armed forces.' This method was later extended to peacetime business enterprise, government operations and other human activities. Operations research appears to have penetrated the extractive industries more slowly and less completely than other industries, the military, or the government. This may be due (1) to a difference in the attitude of management towards operations research, or towards research of any kind, for that matter; (2) to unsuitability of the extractive industries for application of the operations research method; (3) to inaccessibility of the data; (4) or to a lack of trained personnel who are interested in applying operations research to the mineral industries.

Jan 8, 1963

Jan 1, 1886

By R. C. D. Phillis

The annual mine planning process is one of the most important tactical/operational steps towards achieving strategic goals. These tactical plans are part of a very comprehensive Mineral Resource Management process, with the natural sequel to planning being execution. The execution of an underground hard rock mine plan is a multi-project environment that comprises many development-construction-equipping-stoping single project paths, which are referred to as ?stoping paths?. The uncertainty that typifies execution of projects comes in the form of untimely disruptions to constituent tasks and/or project paths. Annual mining plans also include quantified objectives for occupational health and safety, production, quality, cost, employee morale, environment, and corporate social investment. Such objectives make for a highly complex environment that management must contend with?complex in the sense that all the paths and objectives have interdependent constraints. Furthermore, at the time of this paper, Sections54*and 55**of the MHSA*** put the onus on management to ensure legislative adherence. It stands to reason that planning estimates allow excess capacity?buffers?that cushions the impact of untimely disruptions. This paper concerns the fact that despite all the buffers allowed for, time, scope, and budget creeps impact on mine planning and threaten its successful execution. As a consequence, the paper deals with buffer management, the essence of Critical Chain Project Management (CCPM). Effective buffer management provided strategic (executive level) updates without losing the tactical/operational detail necessary for job card creation, especially where professional skills and experience are in short supply. Indicative bottom-line results showed CCPM to be highly effective.

Jan 1, 2011

By Albert L. Toenges

The introduction of mechanized mining in coal mines, which has speeded loading, has emphasized the importance of efficient underground transportation systems. The purpose of this investigation is to study and analyze various systems now in use, and to derive conclusions therefrom. This report may be helpful to operators who are planning new systems of transportation or who are revising present systems to increase their efficiency. This paper is the first of a series on this subject and des¬cribes some systems of transportation `utilizing rail haulage, ACKNOWLEDGMENT The information used in preparing this report was obtained through the courtesy and cooperation of the officials of the companies whose mines were studied. The descriptions of the transportation systems at the mines included herein have been checked for accuracy, and publication of the data has been approved by the executives of the several operating companies.

Jan 1, 1940

By F. V. Lenel

This discussion is concerned with the method of manufacturing, the design possibilities, and the properties of pole pieces for direct-current electric . motors and generators made from iron powder. In such applications as pole pieces, the electric and magnetic properties of the material are of major importance, therefore they are discussed somewhat more fully. However, the main advantage in making pole pieces from powders lies in the rapid and inexpensive method of manufacturing these pieces, and in the flexibility of design, rather than in their superior electrical properties. As a matter of fact, pole pieces from iron powder have found their principal field of usefulness in small electric motors for controls and similar applications where the highest possible flux density in a given design is not required. Fig. I shows a number of different designs for pole pieces made from iron powder. The steps involved in fabricating them are: (I) briquetting—with each stroke of the briquetting press a complete . pole piece is produced; (2) sintering, and (3) sizing, which is a one-step coining operation in a hand-operated punch press. Conventionally small pole pieces are made from laminated electrical sheet steel stock by punching out the laminations and riveting them together (Fig. 2). The powder method has the advantage of being rapid and inexpensive; also, it makes possible the molding of pole pieces with a round hub, which are better from a design standpoint, as will be shown later. It is difficult to make such round-hubbed pieces from laminated stock. The pole pieces could, of course, be machined from solid stock, but this method is not widely used. The raw material for making pole pieces from powder is straight iron powder without the addition of any alloying ingredients. However, the grade of powder used is of considerable importance, as will be shown later when the influence of the grade of iron powder upon the magnetic properties is discussed. Pole pieces are briquetted in the same way that other iron-powder machine parts are made. Because the pole pieces are flanged—i.e., they have a hub and a wing section—they are made in presses that apply pressure from both ends. For best mechanical and magnetic properties, the density throughout the piece should be even and also should be constant from piece to piece. For that reason a powder of constant compressibility from batch to batch is needed for briquetting pole pieces. One method of obtaining the required magnetic properties is to sinter the pole pieces at temperatures higher than are used for most iron-powder parts. A temperature of 2400°F. and an atmosphere of hydrogen has been found satisfactory. No automatic furnaces of the roller hearth or mesh-belt type have yet been developed for such high temperatures. A box-type furnace heated with Globar heating ele-

Jan 1, 1945

By Elmer W. Pehrson

Minerals have played a prominent role in the affairs of man and nations since time immemorial but with the advent of the industrial revolution, expanding use of the products of the mineral kingdom became synonymous with the material progress of mankind. Individuals and business groups have recognized this fact so have been aggressive in searching for and utilizing mineral resources, with notable success. Indeed, their achievements are primarily responsible for the present Machine Age. On the other hand, until recently the body politic has failed to grasp fully the essentiality of minerals although, at times, access to mineral supplies has been an important factor in the political maneuvers of nations. This chapter is concerned primarily with the broader political and economic relationships of mineral resources to the world economy, and with the internal and external actions of nations in the field of minerals. Many factors that condition the mineral economy of regions and the world as a whole, influence the internal and external affairs of individual nations. The more important of these are: 1. The nature of man's dependence on minerals. 2. The problems resulting from the unique characteristics of mineral occurrence. 3. Geopolitical concepts. 4. Minerals and world power. Actions of individual nations affecting their mineral economy seek two basic objectives : 1. Attainment and maintenance of prosperity. 2. Military security. Other objectives may be cited but on careful analysis they become integral parts or extreme phases of the two points noted above. For example, the twentieth century aggressions of the USSR, Germany, Italy, and Japan might be considered as direct bids for world power but they also can be interpreted as exaggerated or mistaken efforts toward military security and peacetime prosperity. Similarly, trade barriers, nationalization of industries, foreign exchange manipulations, taxation, monopolistic prac-

Jan 1, 1959

By V. B. Dale

This paper is one of a series covering the mineral resources of the Nation. It briefly describes most of the known tungsten deposits of New Mexico. Most of the descriptions are from field examinations by the senior author. Reported tungsten occurrences that were not visited are listed below: Colfax County: Occurrences of ferberite in thin veins in Willow Creek near Elizabethtown.4/ Dona Ana County: Small, low-grade occurrences of scheelite near the summit of the Organ Mountains about 15 miles east of Las Cruces. Hidalgo County: Scheelite reported in the Daisy mine 7 miles southeast of Hachita. Ores are carbonates containing copper, gold, silver, and bismuth.5/

Jan 1, 1959

By T King

This paper reviews the changes in the coal industry over the past 30 years and attempts to predict the trends over the next ten years. The last 30 years have seen a steady concentration of production into fewer, larger mines, which operate on 3: more continuous basis, and a major increase in productivity per employee. Coal exports have increased from zero to almost half the country's total production. As well as major changes in exploration and mining equipment and the increasing use of computer tools, the industry now operates in a relatively new regulatory and commercial environment.   Safety legislation now requires the writing and enforcement of policies and procedures by the mining companies, rather than adherence to inflexible regulations enforced by an Inspector. Accident rates have decreased dramatically. The transition from coal mining licences to permits, requiring landowner consent and resource consents, is well under way. Environmental controls are now an essential aspect of the industry.   Equipment suppliers now offer maintenance services, production guarantees and flexible financing.  Contract miners offer mine design and restoration as part of the contract. In a similar approach, Solid Energy now offer an ash disposal service and assistance with resource consents to their customers as well as investment in technology to ensure a consistent product to demanding specifications. Solid Energy has proposals for energy centres which install and operate the coal burning appliances and simply sell energy to the customers. The next 10 years should see an intensification of these trends of bigger mines, more exports and greater technology and a 'package' approach to customer service.

Jan 1, 1997

By Mark L. Chatman

The U.S. Bureau of Mines studied mineral resources of the Dragoon Mountains Unit, Coronado National Forest (54,264 ac), Cochise County, AZ. This study involves literature and field investigations with a focus on mine and prospect sites, which were inventoried and mapped; maps are contained in this report. Rock-chip samples were taken from mineralized zones and from some mine dumps; assays of the 477 samples are in appendixes. Mineral deposits are genetically and spatially related to Tertiary-age granitic intrusive activity. Most metallic mineral deposits are also strongly fault-controlled. Colored marble resources (270,000 st) are valued at approximately $6.5 million, if all were to be developed and sold as landscaping material in the form of-marble chips. However, with current demand, it is unlikely that regional markets could absorb all this material. Economic modeling of copper-zinc-silver skarns suggests none would be profitable to mine and capitalize at early 1993 commodity prices, mainly due to the small estimated size of the deposits (30,000 st to 40,000 st maximum). In the entire Unit, 140,000 st of inferred subeconomic skarn resources were estimated by USBM on five different skarn trends; measured subeconomic resources are negligible. Exploration by industry, 1992, was small-scale (on 2 skarn trends and 1 auriferous fault zone).

Jan 1, 1993

By James N. Bayne

An examination and analysis of Landsat digital data in the monitoring of surface mines in selected counties of South Carolina.

Jan 1, 1979

By Oliver C. Ralston, and others

"INTRODUCTION Investigations of the Nonmetals Division are now conducted at College Park, Md.; Tuscaloosa. Ala.; Seattle, Wash.; and. Norris, Tenn. The last of these was acquired, this year by arrangement with the Tennessee Valley Authority and is engaged in electrothermel research, using power generated by the T.V.A. and. raw materials from that region. In general, the work of the division is concerned with dressing nonmetallic minerals end utilizing the products there-from. Coal, salts, and waters are investigated, and the suitability of apparatus and equipment is studied.As the Metallurgical. Division of the Bureau of Mines makes routine tests of certain nonmetallic ores under prescribed conditions for the public if they are of general interest, the published reports of that division should be read and thus, with the reports of tile Nonmetals Division, the whole field may be covered."

Oct 1, 1939

By A. M. Cummings

Each mining district presents different problems as to the methods of ore extraction cad underground support, which are dependent upon the type of the ore deposit and the character of the inclosing rock. Mining costs, however, depend largely aeon the efficiency with which the methods employed underground are [applie] as well as upon the selection of the method best adapted to the physical conditions. The purpose of this paper is to present to the operator in other districts a detailed description of ho mining method used ins results obtained in tie exploitation of the bedded magnetite deposits of the Mineville district. The town of Mineville is situated in the Adirondacks, five miles west of Port Henry on Lake Champlain.

Jan 1, 1928

By C. R. Austin

Tan investigation described in this paper deals with the development of high-temperature alloys of the Konel series over a considerable period of time at the Research Laboratories of the Westinghouse Electric and Manufacturing Co. The word "Konel" has been coined to designate a class of alloys which are essentially nickel-cobalt-iron with other elements added, usually in small quantities. Most of these alloys contain titanium, usually about 2.5 per cent. The main consideration related to strength at high temperatures but the thermionic characteristics of the alloys was also of considerable importance. It is, however, with the mechanical properties at elevated temperatures that we are herein concerned. Much attention has also been devoted to their age-hardening characteristics. There is little need to stress the utilitarian aspect of this subject, as it has been discussed frequently. Alloys exhibiting superior properties at normal or elevated temperatures rapidly find many suitable applications. There may be some question, however, as to what constitutes a "superior alloy, " or an alloy that may have good service possibilities at high temperatures. The problem is complex and various means have been employed to predict the useful life that may be expected of a material. In recent years the "creep limit" has been used as the best means of evaluation. Such tests necessarily are prolonged and hence collection of data is very slow. In a general survey of many alloys therefore the creep test is not desirable and recourse must be had to much shorter time tests in order more rapidly to select alloys which appear to show promise. For this reason the present survey has been made using the high-temperature tensile test and a bend test developed by Howard Scott.1 In the tensile test the conditions have been standardized for all tests, so that values obtained are at least comparable, one alloy with another, although the absolute values recorded merely indicate the mechanical properties at the given temperature under a definite rate of loading.

Jan 1, 1931

By C. R. Austin

THE investigation described in this paper deals with the development of high-temperature alloys of the Konel series over a considerable period of time at the Research Laboratories of the Westinghouse Electric and Manufacturing Co. The word "Konel" has been coined to designate a class of alloys which are essentially nickel-cobalt-iron with other elements added, usually in small quantities. Most of these alloys contain titanium, usually about 2.5 percent. The main consideration related to strength at high temperatures but the thermionic characteristics of the alloys was also of considerable importance. It is, however, with the mechanical properties at elevated temperatures that we are herein concerned. Much attention has also been devoted to their age-hardening characteristics. There is little need to stress the utilitarian aspect of this subject, as it has been discussed frequently. Alloys exhibiting superior properties at normal or elevated temperatures rapidly find many suitable applications. There may be some question, however, as to what constitutes a "superior alloy, " or an alloy that may have good service possibilities at high temperatures. The problem is complex and various means have been employed to predict the useful life that may be expected of a material. In recent years the "creep limit" has been used as the best means of evaluation. Such tests necessarily are prolonged and hence collection of data is very slow. In a general survey of many alloys therefore the creep test is not desirable and recourse must be had to much shorter time tests in order more rapidly to select alloys which appear to show promise. For this reason the present survey has been made using the high-temperature tensile test and a bend' test developed by Howard Scott.1 In the tensile test the conditions have been standardized for all tests, so that values obtained are at least comparable, one alloy with another, although the absolute values recorded merely indicate the mechanical properties at the given temperature under a definite rate of loading.

Jan 1, 1931

Discussion of the paper of Robert H. Richards, presented at the Butte meeting, August, 1913, and printed in Bulletin No. 81, September, 1913, pp. 2299 to 2303. C. D. DEMOND, Anaconda, Mont. (communication to the Secretary*) :-Any one who has observed the increased efficiency of the Wilfley tables in a mill when fed from a reasonably good hydraulic classifier, as compared with tables fed from a spitzkasten., which is a very poor classifier, will agree to the advantage of ? better classification." It must be gratifying to Dr. Richards to know that, directly or indirectly, maim mill men are responding to his persistent advocacy of correct principles of ore dressing and are accepting the results of his investigations. As he says, these principles mean much for both the conservation of resources and the profit of operators. When Dr. Richards gives us accurate figures as to the maximum size of free mineral grains in the tailings of the Wilfley table and of the vanner, they will be of a good deal of practical value in delimiting the proper fields for the Wilfley, the vanner, and the round table. He has coined the terms ? free settling" and "hindered settling."' The series may be completed by adding "crowded settling," the main principle of action on both the vanner and the Wilfley table, which is the principle of separation in a mass of grains crowded as closely together as they can be and yet continue free to move between one another; and the occurrence of larger mineral particles in the Wilfley tailing than in that from the vanner is apparently caused by the more violent agitation, due chiefly to the purposely sudden reversal of the stroke. It seems likely that the agitation caused by the wash water dropping directly upon the concentrate on the vanner is more harmful than that due to the shake. For the very finest material that can be concentrated by usual methods, the round table is superior to the vanner because it does not, have even, the gentle agitation of the latter. The action on round tables is, not crowded settling," but "film sizing," 2 but agitation is harmful in the latter action. George Gates proved this harm 20 years ago : in slaking the first successful large-scale application of canvas tables in California gold mills he abandoned all shaking motion, although he had patented canvas tables to which such motion was applied.

Jan 11, 1913

By P Stoker

"An EXTENDED ABSTRACT is available for download. A full-length paper was not prepared for this presentation. Mining and exploration properties have a unique set of technical risks. Privately-owned companies considering investing in the resources sector can optimise their investment decisions by adopting a systematic technical assessment of acquisition assets, similar to the approach commonly adopted by public financial institutions and publicly-listed companies.Technical due diligence provides a process to identify key geological, mining, geotechnical, metallurgical, environmental and social risks and opportunities and determine the most likely business case and valuation of assets. Technical due diligence is commonly carried out in parallel with legal, commercial and financial due diligence, often involving the acquirer, to maximise the understanding of the investment.There are significant advantages in investors conducting a comprehensive technical due diligence, which typically involves site visits and project assessment to international standards by an independent, multidisciplinary team of experts. The outcomes provide the opportunity for the investor to make early, informed decisions and to understand and manage risks.Technical due diligence may be carried out at several stages: when considering and weighing up a number of investment options, prior to and during a transaction or immediately post-transaction. In the first stage, the outcomes will inform the choice of investment and, more particularly, whether there are any fundamental flaws in the projects being considered. In the second stage, due diligence outcomes can inform the level of investment and approach to risk management and planning. In the third stage, risks and opportunities can be investigated in more detail, allowing the investor to consider the best options to reduce risk and maximise the benefit of the investment.This paper presents a summary of the technical due diligence assessment process, its benefits to investors, common risks in mining and exploration projects known to cause mining asset write-downs and principal technical due diligence approaches.CITATION:Keogh, A, Stoker, P and Thomas, M, 2015. Benefits of due diligence in private equity mining investments – maximising value and unearthing common risks , in Proceedings PACRIM 2015 Congress, pp 115–126 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 18, 2015