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By Eric Low

Raising capital by issuing debt or equity is necessary in almost every corporation. In the field of corporate finance, the raising of capital is a heavily-studied topic. However, some of what is studied on this topic in corporate finance is not applicable in the mining industry. There are also many financing options that were created for the mining industry such as flow-through shares, prepaid forwards, and royalty sales. The cyclical nature of the industry makes the risk-return profile of financings more difficult to estimate than in other industries. Additionally, the methods used to assess firm value are different than other industries, as the values of orebodies are not included on balance sheets. For precious metals companies, which are a hedge against most other securities, there are additional complications with determining investor expectations and cost of equity. This thesis puts forth a decision-making framework to explain mine financing choices from the perspective of mining companies. The approach is threefold. First, all of the major equity and debt financing instruments available to mining companies are presented and analyzed. Each financing method is assessed on a wide range of criteria. Next, these concepts are applied in case studies of four companies: BHP Billiton, Barrick Gold, Teck Resources, and Noront Resources. For each company, the overall choice of financing methods is shown and analyzed. The effect of financing choices on the weighted average cost of capital (WACC) is calculated. The final section deals with case studies of individual mine finance decisions during the past two years.

May 1, 2011

By Parker JB

The Channar Iron Ore Mining Project (the Project) is a joint venture involving the Hamersley Holdings group (Hamersley) and the China Metallurgical Import and Export Corporation (CMIEC). The Project represents the first new iron ore mine development in Australia since 1971/72 and is the first major overseas mining investment by the People's Republic of China (PRC). The Channar mine is being constructed in the Pilbara region of Western Australia and will operate for more than 20 years supplying the PRC with 200 M tonne of high grade iron ore. The Project is configured to take advantage of Hamersley's existing production and support facilities. The Joint Venturers will invest A$280 million to achieve an initial production rate of 3 M tonne/yr and an additional A$120 million over the next 8 years to achieve full capacity of 10 M tonne/yr. Financing the Project to meet the requirements of both Hamersley and CMIEC, with the dependance of the Project on Hamersley's infrastructure, and in a depressed iron ore market, required an innovative financial structure to be arranged in a limited period. This paper describes both the financial structure and its implementation, and draws a number of conclusions regarding the financing of resource projects.

Jan 1, 1989

By L. Clark

Despite near-record commodity prices, the mining industry continues to search for ways to maintain profits in these times of steadily increasing energy prices and steadily decreasing grades. The pressure is still on today’s miners to continuously improve their operations because they know that one day prices too will drop. Some, however, have seized the opportunity to employ systematic methods to reduce costs and increase the efficiency of their workforce and equipment. As a result, closer attention is being paid to scheduling and the value that could be added by defining the extraction sequence that maximizes the net present value [NPV] of a project. This paper will discuss the challenges faced by Newmont Mining Corporation [Newmont] at its operations and the application of sophisticated software tools and methods in its search of solutions to this problem.

Jan 1, 2007

By Mutombo Nombe, Avimanyu Das, Rick Honaker

Enhanced gravity separators (EGS) provide a more efficient separation than froth flotation when cleaning coal in the 150 x 25 µm particle size range. To improve the performance of an EGS unit, air bubbles were injected into the feed stream in an attempt to decrease the apparent density of the coal particles due to the formation of bubble-coal particle agglomerates. Air injection had a significant impact on operating characteristics and separation performance. Coal recovery was increased by 10 to 20 absolute percentage points while a 2 percentage point drop in the minimum product ash content was also achieved.

Jan 1, 2005

By Yuemin Zhao, Daniel Tao, Xinxi Zhang, Qingru Chen, Maoming Fan, Zhenfu Luo, Xiuxiang Tao, Guohua Yang

Coal is currently cleaned with the minimum of size reduction, fine particle processing, recovery, and tailings disposal are major problems. Adequate water resources are not always available. For example, two thirds of China's coal is located in arid areas. Hence, dry separation provides an alternative approach. Of the dry coal separation methods available, air dense-medium fluidized beds have been used to separate 50~6mm coal efficiently. However, excessive bubbling and back mixing of the separated solids in the air-dense media fluidized bed causes the high lower size limit of 6mm for the feed material, this affecting the preparation efficiency. Based on prior study on air-fluidized dense media for 6~50mm coal preparation, this paper presents methods and test results on the fine coal dry classification, static electricity beneficiation of 0~0.5mm coal, and magnetically stabilized fluidized beds for separating 0.5~6mm coal.

Jan 1, 2005

Fine Coal Evaluation by Gravity Methods

Sep 13, 2010

By G. Papachristodoulou, O. Trass

"Performance data for both wet and dry grinding of materials have been obtained in this novel, planetary ring-roller mill over wide ranges or operating conditions. The Szego mill consists of a stationary cylindrical shell inside which grooved, radially mobile rollers rotate, driven by a central shaft. The mill has several internal design variables such as number, diameter and length of rollers as well as size, shape and pitch oi helical grooves. It is compact, has a high specific capacity, modest power consumption, and can grind many materials down to ultrafine powders. Illustrative data on product fineness and mill power consumption are given along with results from studies on grinding kinetics.INTRODUCTIONThe extensive use and importance of grinding as a unit operation, coupled with the rather low energy efficiency of conventional equipment provide a challenging incentive to investigate novel methods of comminution. Yet, most current development work is taking place in mill performance modelling and optimization, or with various detailed improvements rather than in the field of new equipment development.This paper is a report on the development of a ring-roller mill invented by the late L.L. Szego which embodies several novel concepts. The mill has a broad range of applications, may be operated wet or dry, and can grind materials down to ultrafine sizes with modest energy consumption. It has been developed by General Comminution Inc. in close cooperation with the University of Toronto."

Jan 1, 1986

By A. G. Doll

"Many power-based grinding models exist, and most operators are familiar with Fred Bond's ""third theory"". Bond's model is most commonly used to describe primary and secondary grinding to product sizes above, for example, 100 µm. Operators sometimes use Bond's equation to describe grinding in situations where it is not appropriate, such as fine grinding below 50 µm. Using an alternative model would be a better choice in this situation.Bond's equation is one in a large family of models. Related equations better suited to fine grinding include the “signature plot”, Von Rittinger's model and Charles' equation. These models have a similar form to Bond's and can be fit to industrial regrind mills and laboratory tests using the simple regression tools in the charts of computer spreadsheets. Operators will find that fine grinding calculations are both easier and more accurate when using the alternative equations to fit their regrind milling surveys or when performing laboratory regrind mill scale-up for plant design.None of these models are new: Charles' equation was published in 1957 and Von Rittinger's model was proposed in 1867. A quick refresh how to apply these equations can turn these oddities from the undergraduate curriculum into useful tools for plant optimization. They can be fit to any type of mill including stirred and tumbling ball mills.IntroductionBuilding a case for fine grind modelling requires reviewing some theory before building a framework for doing fine grinding calculations. The actual calculation procedure recommended is easy and can be applied by plant metallurgists. Don’t be frightened by the theory; the end result is reasonably simple.The observation that mineral breakage is related to the absorption of energy is usually attributed to Von Rittinger (1867). Lynch and Rowland (2005) describe that the ability to empirical test and calibrate energy models of breakage didn’t exist until the widespread adoption of electric motors in the mining industry during the 1930’s and 1949’s. A series of technical papers published by the Allis Chalmers company during the 1940’s demonstrate that they were attempting to do such a calibration using Von Rittinger’s model which is usually stated as: “the energy consumed in the size reduction is proportional to the area of new surface produced.”"

Jan 1, 2017

By K. F. Unrug

In the paper a numerical modeling method is used for evaluation of a roof support system, which is commonly used in the US coal industry. The effectiveness of mechanical roof bolting with or without, header boards and steel straps are compared. This analysis takes into account the response of a shaly roof to changing environmental conditions in mines related to the seasonal changes in temperature and humidity of the intake air. Discussed are principles of roof support in coal mines and based on them a critical evaluation of header boards interaction with bolts and roof itself is carried out. Header boards create a soft inclusion within a much more stiffer system comprising bolt-rock. As an alternative to header boards, steel straps are analysed and corresponding results are presented. It is demonstrated that application of steel strap is beneficial from the stand point of stress distribution and maintaining tension on roof bolts. The laboratory investigations and modeling work previously undertaken by the authors, clearly indicate the detrimental effect of header boards on effectiveness of roof bolting. There are significant practical implications of the research considering that header boards are commonly used in mines. This practice has been probably originated from the wooden support used by mining in "pre-bolting era?, and it has stayed with coal mining based on tradition more than principles of engineering design. It is demonstrated that header board$ are detrimental and actually contribute to development of roof problems.

Jan 1, 1989

By K. C. Viveros, R. R. Ambriz, C. García, F. De Villèle, A. Talha, D. Jaramillo

Cold hole expansion on base metal, weld metal and heat affected zone of 6061-T6 aluminum alloy welds was simulated by means of finite element method. Three dimensional compact test models with a previous fatigue crack length with a relation of ??= a/W = 0.3, were used to analyze the hole expansion process. Considering the local mechanical properties for each zone of the welded joint, the optimal expansion degree (1.64 to 2.46 %) was determined. The residual stress field, through thickness, after the expansion process in all welding zones, were correlated with the crack opening displacement obtained by finite element analysis. It was observed, that compressive residual stress fields for a post-expansion, in different crack lengths, provided a crack closure mechanism for base metal, weld metal and heat affected zone. Contrary, the crack remained open when residual stresses are positive. The results are given as tangential stresses versus distance from the edge of the cold expansion and crack opening displacement as a function of applied load.

Jan 1, 2014

By Youliang He

Twin-roll casting is an integrated casting and rolling process that involves the continuous solidification of a melt and the plastic deformation of the solidified metal between two rotating rolls. Computer modeling is a valuable tool to help engineers understand the metallurgical process during twin-roll casting. However, commercially available software can only model either the fluid flow/heat transfer of the melt or the plastic deformation of the solid, but not both. In this study, an object-oriented finite element program was developed to simulate the steady-state fluid flow, solidification and plastic deformation of an A7,31 magnesium alloy in a horizontal twin-roll caster. The melt, the mush zone and the solid were treated as a generalized Newtonian flow in an Eulerian reference frame and different constitutive equations were employed to describe the material behaviours. The effect of operational parameters on the solidification process was discussed based on the simulation results.

Jan 1, 2010

By I. Mc Dougall

Finite element models were generated of two submerged arc furnaces of different geometries. A 48MW circular furnace and a 68MW 6-in-line rectangular furnace were studied. The electrodes, raw material, slag and molten metal were included in the model. ANSYS/Multiphysics was used to predict the current density distribution in the electrodes, raw material, slag and molten metal as a result of the three phase AC current. The effect of the electrode immersion on the current path was studied. The ?proximity effect? caused a pronounced asymmetry in the electrode currents in the circular furnace, whilst the electrode currents in the rectangular furnace exhibited radial symmetry. The current distribution in the melt in both furnaces indicated that the bulk of the current flows between phases. The current density is greatest between electrodes. Results were compared to qualitatively similar published work, operating experience and results of furnace dig-outs.

Jan 1, 2007

By P. den Hoed, R. I. Rambiyana

"Four sulphide minerals - pyrite (FeS2), pyrrhotite (Fe1-xS), pentlandite ([Ni,Fe]9S8), and chalcopyrite (CuFeS2) - contain the base metals and most of the iron in concentrates of platinum group metals (PGMs). In the pyrometallurgical processing of PGM concentrates these sulphides form a matte during smelting, and iron and sulphur are removed from the matte during the converting process. This paper discusses the roasting of Merensky concentrate in air before smelting, with the purpose of reducing the matte load to the converter.Roasting tests were conducted in a bench-scale rotary kiln at temperatures from 350°C to 700°C. The concentrate tested contained 17.4% sulphur and consisted of 23% pyrrhotite, 16% pentlandite, 11% chalcopyrite, and 2% pyrite. The particles were fine (d50 = 22 µm), and all the sulphide particles were liberated. Roasting in air at 550°C and 650°C for 20 minutes removed respectively 60% and 70% of the sulphur. The iron in the sulphides was oxidized to Fe3O4 (magnetite) at temperatures below 500°C and to Fe2O3 (haematite) at temperatures above 550°C. At 700°C the bed sintered and copper oxides formed. At temperatures below 450°C oxidation was incomplete: pyrrhotite remained and only 30% of the sulphur was removed. Smelting tests were conducted to assess matte fall and the deportment of copper and nickel to matte. It was evident that roasting resulted in lower matte falls (a drop of approximately 60%) compared with matte falls from unroasted concentrate. The iron and sulphur levels in the matte were reduced to below 3.5% and 22% respectively.This paper also briefly describes the mechanisms by which pyrrhotite, chalcopyrite, and pentlandite are oxidized during roasting. For chalcopyrite, the mechanism proceeds through an intermediate solid solution phase, which extends from Cu1.02Fe1.04S2 to Cu2.04Fe0.72S2 to a copper-rich solid solution of bornite (Cu4Fe1.4S4-Cu2S). The oxidation of pentlandite proceeds through a monosulphide solid solution (Ni0.39Fe0.53S-Ni0.74Fe0.15S) to a solid solution of heazlewoodite ([Ni,Fe]3}xS2). These mechanisms are explored in relation to chemical thermodynamics and microstructures."

Jan 1, 2015

By Jose a. Sanchidrian, Ramon G. Eguren, Javier L. Amigo

On December 2013 a MEMU exploded at a blasting site in Norway, after burning for more than two hours. This paper describes the analyses made to determine the actual yield of the explosion, the lessons learned from the event and the actions taken as a consequence. The conclusions of the analysis were the following: - The yield of the explosion was 650-1450 kg TNT. In terms of AN and ANE they correspond to 1300 – 3700 kg AN, or 950 – 2450 kg ANE or ANE/AN blend. These quantities are 8 to 31 % of the explosive precursors in the truck. The burning of the truck and its load for two and a half hours had consumed more than two thirds (perhaps up to 90 %) of the explosive precursor material.

Jan 1, 2016

By C MacDonald

There are many technologies available today in terms of fire and life safety in road tunnels. So many in fact that it is becoming more and more difficult for clients and contractors alike to determine what they want and what they need. From a clientÆs perspective, fire and life safety is about protection to its infrastructure and to the public at large. Conversely, the contractor is looking to meet its æfit for purposeÆ or ædeem to complyÆ requirements in the most economic and practicable way. Practices regarding fire and life safety in road tunnels have undergone a degree of transformation during the last decade or more throughout the world. This transformation has largely been driven by a series of catastrophic accidents such as the major fires in Europe including the Mont Blanc Tunnel, Tauern Tunnel, Saint-Gothard Tunnel, and now most recently in the CityLink Tunnels in Melbourne. International guidelines produced by organisations such as the Permanent International Association of Road Congresses (PIARC), the European Union, the International Tunnelling Association (ITA) and the US National Fire Protection Authority (NFPA) now provide clients, owners and designers with the tools required to define and specify the required fire and life safety systems in road tunnels. The majority of these tools are based on risk assessment and risk management. Recent road tunnel projects within Australia, however, have not referred solely to such guidelines. Clients have opted to prescribe different or additional fire and life safety requirements within the projectÆs technical specification documentation (project requirements), leaving designers and contractors with little room to implement alternatives or substitutions. Further, these project requirements are largely dictated by practice established on previous road tunnel projects within Australia. This paper looks at the current international guidelines and practices and undertakes a comparison with the EastLink tunnels in Melbourne and other road tunnels within Australia and makes assessment on whether Australian methods are the most appropriate for clients and contractors alike. Focus is directed to the key elements of fire and life safety such as:traffic envelope, barrier arrangements and emergency walkway provisions;deluge systems;drainage systems;fire rating requirements;tunnel ventilation systems;cross passage provisions;fire safety assessment;critical intelligence systems including help phones, CCTV, incident detection, tunnel signage, etc; andexternal tunnel control systems.

Jan 1, 2008

By I. J. Duckworth

Due to improved, stringent safety regulations, many modern road tunnels are statistically safer, per kilometer, than above ground roadways. However, the public perception and reaction in the event of a serious tunnel fire is very different to that associated with a surface incident. Vehicle fires in road and rail tunnels are recognized to represent an immediate and extreme danger to the patrons of those systems. Unlike workers in the mining and civil construction industries, the general public are neither trained nor equipped to fight fires or evacuate under deteriorating smoke conditions. Accordingly, for the majority of modern transportation tunnels the ventilation infrastructure is sized on the requirement to control the combustion products from worst-case fire scenarios and to provide a tenable evacuation route for the tunnel users. It is common for these same emergency ventilation systems to be employed, often in a reduced capacity, for other operating modes such as the dilution of pollutants during congested traffic conditions. This is one of the fundamental differences to mine ventilation, where primary ventilation systems are not typically sized based on fire scenarios. This paper presents an overview of the subject of fires in vehicular tunnels. This includes a brief history of major transportation tunnel fires followed by a discussion on the resulting legislation and standards that govern the design and operation of tunnel emergency ventilation systems. A summary is provided on the common criteria, theory, and design techniques that are employed during tunnel emergency ventilation systems design. Information is provided on fire detection and suppression, with a discussion on the growing acceptance of wet suppression as a means to mitigate major fires in road tunnels worldwide.

Jan 1, 2009

By Gordon King

The site of the First Quality Tissue plant is located on a previous paper production facility in Lock Haven, Pennsylvania. The new development, which included the construction of a tissue machine building, baled building, converting building, various storage buildings and an electrical switchgear building, required the use of deep foundation systems to transfer loads below compressible fill and alluvial soils. Loading details provided by Jacobs Engineering, the project structural engineer, detailed braced steel frame buildings with typical column loads ranging from 75 to 150 kips and slab live loads of 250 to 300 psf. As an exception to this, however, the tissue machine and stock preparation building, which had a roof height ranging up to 85 feet, had column loads ranging up to 800 kips in addition to high dynamic loads. The First Tissue plant is located in a river valley in the hills of Western Pennsylvania. To evaluate the proposed site conditions and to formulate recommendations for the structure foundations, a geotechnical study was performed by the owner. Approximately 30 borings were advanced to bedrock, with wire-line coring performed in the tissue machine building. The borings disclosed a soil profile comprising of the following:

Jan 1, 2004

By L. du Plessis

The name FISH (Fully Integrated Sort House) refers to a class of technology deployed at Jwaneng Mine final diamond recovery. The FISH concept is based on three pillars, namely: ?Improved sorting efficiency FISH is based on laser technology, which is more efficient than hand sorting for certain product categories. Laser sorting is based on measuring in-elastically scattered light from molecules and this is referred to as Raman spectroscopy. The Raman scattered light occurs at wavelengths that are shifted from the incident light by the energies of molecular vibrations ?Availability of production information Roller gap diamond size distribution information is generated on line for upstream process optimization ?Improved product security A ?hands-off? philosophy reduces security risk during operation and maintenance of the plant. In addition, a number of lessons were learnt about the application of new technologies in the industry: ?The required human competency profile demanded by new technology should match the available competencies of the operational staff ?An integrated information management system should be fully functional for both production management and diamond control purposes ?Operational feedback must be correctly evaluated to identify design, maintenance, training and operational issues so as to accelerate the maturity of the new technology within the time span of the sustainable operations project ?Project execution and technology maturity risks have to be evaluated and married to ensure risk mitigation by means of suitable project resource and contracting model selection.

Jan 1, 2003

By J L. Mauk

 Broken Hills is an adularia-sericite epithermal Au-Ag deposit, hosted in flow-banded rhyolites and overlying rhyolitic pyroclastic rocks in the eastern Hauraki Goldfield. The 7.1 Ma deposit was the largest producer of gold in the eastern Hauraki Goldfield, and was one of very few economic deposits hosted in Pliocene rhyolites. This paper presents the results of a recent study in the upper levels of the deposit. Maps and cross-sections constrain structural and lithological relationships, and the lateral and vertical extent of a breccia pipe û the major feature of the upper levels.   Previous studies in the upper levels of Broken Hills have shown that gold and silver values are concentrated around and within a large breccia pipe, mined by a series of æcaveÆ stopes and in veins. Contour diagrams of Au-Ag data from channel samples indicate that the breccia pipe was a major fluid channel-way for mineralising solutions.   The breccia pipe deposits are part of the dynamic geothermal system that formed the Broken Hills ore bodies; they developed as a result of hydrothermal brecciation in areas of structural weakness within a rhyolite pyroclastic unit that overlies a massive rhyolite lava-flow unit. The main breccia pipe begins near the rhyolite/pyroclastic contact, having the shape of an inverted, inclined cone, and consists of silicified breccia, stringers of quartz, and irregular patches of clay-altered country rock. Smaller zones or pockets of hydrothermal eruption breccia are silicified and contain low grade gold in the matrix and in the adjacent silicified wall rocks.   Quartz has been classified according to its physical characteristics as seen in situ and hand specimens indicate that vein definition decreases upwards, perhaps as a result of changing lithological conditions and/or increasing proximity to the paleosurface. Hydrothermal quartz is widespread as veins and as a replacement mineral, or lining fractures and cavities and overgrowing rock fragments. Breccias contain vein quartz, but some quartz veins cross-cut breccias, indicating that vein and breccia formation was relatively synchronous and overlapped in time.   Disseminated gold-silver mineralisation is associated with vein quartz and silicic alteration of the wall rock within the breccia pipe. The auriferous zones are highly irregular and erratic, and sampling results show a wide range of gold-silver ratios, suggesting that highly volatile physiochemical conditions prevailed during mineralisation.

Jan 1, 2005

By P. Ulrich, V. Svalbonas

The early to mid 1980s was a period of mining consolidation, and many senior design engineers retired from the mill industry. Similar conditions have existed in the last few years. This creates a loss of a tremendous amount of experience. This paper is a look back by two senior mill designers who survived the dips in both time periods. From a continuous design practice of over 25 years, mill designs and fabrication practices are surveyed with a view of identifying what works, and is necessary, and what doesn’t, or is not necessary, in the creation of a safe, economic, long-lived grinding mill.

Jan 1, 2001