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By J. Wiese

Recently the operating philosophy at concentrators processing platinum bearing ores has started to move from a recovery dominated system to one in which the production of high grade concentrates at the expense of some recovery would provide greater benefits in the further upgrading of the platinum group minerals (PGM). The low grades usually obtained are associated with the presence of naturally floatable talcaceous gangue minerals in all PGM ores. Polysaccharide depressants such as guar gum and carboxymethyl cellulose (CMC) are used to improve the grades of the concentrates. Recent testwork has shown that the use of high depressant concentrations can prevent any naturally floatable gangue from reporting to the concentrate. The only gangue present in the concentrates would be due to its entrainment in the froth. Under these conditions much higher grades can be achieved. The sulphide minerals themselves, however, become susceptible to depression at high depressant concentrations. This work examines how the recovery of sulphide minerals in two Merensky ores was affected by the type and concentration of the collector in the presence of high depressant concentration (500 g/t) and that the response of the sulphide minerals was also dependent on the type of depressant used (guar or CMC).

Jan 1, 2009

By J Lea, P Hatherly, J L. Edwards

Coal exploration has traditionally involved the acquisition of data to enable a resource to be quantified and qualified to the extent that its economic potential can be determined. This process commonly relied on: drilling to determine the depth and thickness of coal seams, broad characterisation of the overburden and interburden, and to provide cores for coal quality analyses; basic wireline logging to cross-check the depth and thickness of coal seams and provide some indication of rock mass strength; and basic surface geophysics and remote sensing to identify major geological structures. In recent years, the adoption of the JORC Code as a basis for the reporting of resources and reserves has placed a greater emphasis on the need for detailed, reproducible data sets that not only satisfy the traditional requirements of mine planners, but also satisfy the governance requirements of corporate and financial institutions. Similarly, the development of sophisticated numerical modelling techniques for use in both open cut and underground mine design, has seen a greater demand for precise geotechnical data, in situ stress characterisation and hydrological information as routine input to the design process. These requirements, coupled with the prevailing trend toward high capital, relatively inflexible mining techniques less tolerant of geological surprises, and the need for consideration of environmental issues such as groundwater impacts and surface subsidence, requires that modern exploration programs be multifaceted, and designed to commence capturing data relevant to ædownstream issuesÆ even during the initial phases of exploration planning.

Jan 1, 2009

By A Tawadrous, P D. Katsabanis, S Kim

A series of small scale tests, have been performed to establish the effect of powder factor and initiation timing on the grindability of rocks. The blasts were performed in high quality granite blocks, which were cut from stone prepared by dimensional stone quarry operations. Three different types of granite, Barre, Stanstead and Laurentian, were tested. The charge consisted of detonating cord placed in five holes with water as a coupling medium, or concentrated charges of equal mass of high exolosive, fully stemmed or air decked. Powder factor was varied from 0.39 to 1.17 kg/m3. Charges were detonated simultaneously or with a small delay and in some experiments, detonation waves collided in the middle of each borehole. All fragments were collected and screened, and drop weight impact tests were performed on selected size fractions, using different levels of impact energy, to calculate the resistance of the rock to impact breakage. The work index of some of the blasted samples was measured using standard Bond mill grindability tests. The experiments generally showed increased softening of the rock with powder factor, manifested by the increasing initial slope of the relationship between t10 and impact energy. The rate of change of the initial slope decreased with increasing powder factor. Changes in the work index were small and consistent in trend with the results of the single fragment impact characterization tests. Charge configuration, timing as well as in-hole collisions of detonation waves affected the initial fragmentation but had little effect on the impact breakage of the samples.

Jan 1, 2009

By A. D. Davis

The former Homestake gold mine at Lead, South Dakota, has been selected by the National Science Foundation as the proposed host site for the Deep Underground Science and Engineering Laboratory. The deep laboratory and associated research campus will be developed at approximately the 7700-ft level. Plans also include the development of the Sanford Underground Science and Engineering Laboratory at the 4850-ft level. After the mine?s pumps were shut off in June, 2003, water levels rose to approximately the 4650-ft level by early 2008. Pumps in the 8150-ft deep mine were turned on again for dewatering in April, 2008. Instrumentation is being installed in the mine to measure water-level declines during pumping, for later analysis of permeability and related hydraulic properties of the formation. Pressure-sensitive transducers and data loggers will provide real-time information on water levels that will be available to interested parties. Quality of the water also will be monitored as it is pumped from the mine. I

Jan 1, 2009

By S. A. Abdel Sabour

Strategic decisions in the mining industry are made under multiple technical and market uncertainties. Therefore, to reach the best possible decision, based on information available, it is necessary to integrate uncertainty about the input variables and model financial risk of the project?s merit measures. However, this provides few useful insights to decision-makers unless accompanied by modelling management responses to uncertainty resolutions. It is widely acknowledged that conventional decision-support methods based on static, no-change, discounted cash flow (DCF) techniques such as net present value (NPV) and internal rate of return (IRR) tend to provide inaccurate value estimates. This could mislead the strategic decision-making process and result in significant value losses. This paper aims to model financial risk related to uncertainty about market variables such as metal prices and foreign exchange rates. Other sources of risk that are related, for example, to geology and production costs are not considered in this work. The article outlines a flexible financial model that integrates uncertainty about market variables and management flexibility to react to uncertainty resolutions into mine project valuation using a real-options valuation technique based on Monte Carlo simulation. Significance of information generated from this simulation-based flexible valuation model to the strategic decision-making process is tested using an illustrative case study of a Canadian mining project. The project is a typical multi-metal, open pit mine that produces copper and gold. In this case, there are three uncertain market variables, which are: copper and gold prices and US$/CAN$ exchange rate. Financial valuations are carried out using both the conventional static DCF method and a flexible real-options model. In the flexible model, management flexibility to decide whether to go ahead with the next expansion or terminate production operations is integrated. Results show how the flexible financial model can enhance the decision-making process.

Jan 1, 2009

By C. M. Rule

Energy efficiency is currently a significant area of interest due to the Eskom power situation, which led to severe power impacts to the PGM, and indeed whole SA primary industries, in early 2008. Anglo Platinum has focused on energy efficiency for a number of years, especially in the concentrator operational area. New comminution technologies have been aggressively developed, which have shown real metallurgical efficiency gains as well as significant energy efficiency and saving potential for Anglo Platinum?s total electrical consumption as the company expands into a growing PGM demand market. This paper illustrates this programme?s activities, potential and considerable achievements to date.

Jan 1, 2009

By M B. McKevitt, W J. Shaw

The main task of grade control on a daily basis is to define the material that should be mined to a destination under various categories. This can be determined by grade, lithology, quality and blending criteria. In the case of multi-element deposits or deposits with various blending or other processing criteria the optimum selection of ore block boundaries can be quite complex. In every case the balance between ore loss and dilution must be considered when designing the ore block boundaries and this becomes a risk-based decision when using the conditional simulation model. The use of such systems allows grade control to meet specific targets, such as budget tonnages and grades and blended product specifications. Two case studies are presented: the Prominent Hill copper/gold mine and the Rapu Rapu zinc/copper mine. Mining is based on a rational grade control strategy involving a number of factors, including strong geological control, advanced geostatistical approaches, such as conditional simulation, and optimisation of the ore blocking to meet production requirements. This provides an objective, transparent and repeatable grade control strategy.

Jan 1, 2009

By M. Zavvari

Flotation, as with most engineering disciplines, involves testwork. Commonly this means going from lab scale to pilot scale to industrial scale. It is important to conduct tests to identify key parameters and to optimize even at the lab scale. To reduce the number of tests while maximizing the information, it is necessary to use Design of Experiment and Statistical Analysis. In this communication Fractional Factorial Design was used to identify the effect of 7 main factors on barite flotation recovery from jig gravity tailings at the Dorrin Kashan operation. The factors include: pH, collector and depressant dosage, impeller speed (RPM), pulp dilution, particle size and flotation time. By analysis of the output with Minitab software all factors were shown to have an effect. Among the factors, pH and flotation time have an interaction effect but the others have wise effect as an interaction effect and main effect. Finally, reliability tests at pH= 9, RPM= 1000, collector 1 000g/ton, depressant l 750g/ton, particle size 90 µm, flotation time 90 s, pulp dilution 23 % solids, the optimum level of each factor, were done. At the optimum level a barite concentrate with average specific gravity 4.308 g/cm3, average grade 93.72% and average recovery 90.04% was produced from the jig tail.

Jan 1, 2009

By M E. Karmis

Traditional coal mining planning seldom considers key æsustainability factorsÆ such as: societal impacts in the area; jobs (both created and lost); dislocation of towns and residences; impact on neighbouring communities and individuals; infrastructure concerns; post-mining land use (except when limited by law or other factors); habitat disruption and reconstruction; long-term economic impacts in the community; and net long-term community benefit. This paper presents a systems engineering approach based on the premise that systems can only be optimised if all factors are considered at one time. In theory, coal mine designs can be optimised for return on investment, environmental protection and sustainability. Using this approach, the permitting process may be quicker and less costly, relationships with neighbours, communities, environmental groups may be improved, the mining industry may be seen as a positive for the short-term and long-term and the mining industry may increase profits. This paper discusses geographic information system (GIS) tools that may be used to incorporate ecological and other sustainable development concerns into models of coal mine sustainability performance. Along with coal production cost and value information obtained from past and present coal mining operations, GIS data are used to develop mathematical cost and equation models. By analysis of on-the-ground data, the parameters to be included in these models are identified, the relationships between these parameters quantified and the models developed. The paper also discusses the next phases of the work to be completed once the data is obtained and the models are adjusted and validated. At that time, site-specific information will be input into the models and the approach to mining a particular property evaluated and optimised for financial rate-of-return and other desired outcomes, such as preservation or enhancement of sustainability values. Finally, the paper will examine how this approach can be combined with traditional mining engineering considerations in order to develop an optimised mine plan for a specific mining property.

Jan 1, 2009

By O. Rielo, P. Katsabanis

Traditionally fine aluminum is not used in dry commercial explosives due to the hazard associated with aluminum dust explosions during mixing. An industrial process has been developed which enables the safe use of paint grade Aluminum with ANFO. The addition of fine aluminum particles resulted in increased velocity of detonation of ANFO compositions. Velocities of detonation, in 52mm (2 1/16 in.) diameter confined charges were 20% higher than velocities of detonation of straight ANFO. The detonation performance of fine grained ANFO was not benefited by Al at the diameter tested. Furthermore use of larger Al flakes resulted in decreased velocities of detonation. The results are compatible with the experience of Al addition to high explosives. Tests were also conducted using bio-diesel, finding no substantial difference in the performance of AN fuel explosive compositions which used bio-diesel.

Jan 1, 2009

By A. A. Rafiei, J. A. Finch

A previous study comparing n-pentanol and the polyglycol Fl50 showed that the two reagents could give the same gas holdup but with different size bubbles. The finding implies that bubble rise velocity depends on the surfactant (frother) type. A study using bubble swarms supported the frother type effect but bubble interactions were a possible confounding factor. This study resolves the question by measuring the rise velocity of single bubbles of 0.8-2.5mm diameter over a distance :::: 300cm in n-pentanol and F 150. It is shown that at typical frother concentrations used in flotation that the rise velocity in n-pentanol remains comparable to that in water alone while in Fl50 the velocity is significantly reduced. The results confirm the suspected impact of frother type. It is illustrated that in n-pentanol the rise velocity does not reached terminal; while in Fl50 it does and this is the source of the velocity difference. Advances

Jan 1, 2009

By G. A. Gamble

Fans used to ventilate subway, passenger rail and vehicular tunnels are similar to the fans used to ventilate underground mines. However, tunnel ventilation fan systems are typically designed to meet NFPA 130 or 502 standards, while mine ventilation fan systems must comply with the appropriate federal mine safety regulations. As a result, fan operation requirements and performance criteria, as well as typical fan and duct configurations differ significantly for tunnel and mine ventilation applications. Variations in environmental conditions in tunnels as compared to mines also result in differences in fan performance and material specifications. The need to enclose tunnel fans within building structures creates space restrictions impacting fan size selection that are not commonly encountered in mine fan installations, resulting in different approaches to selecting fans for the two types of tunnels. This paper discusses the various similarities and differences in design considerations for tunnel and mine ventilation fans.

Jan 1, 2009

By J. Cole

The Morenci concentrate leach plant construction was completed and successfully commissioned in October 2007. The plant was designed to operate at medium temperature, 160ºC and pressure, 2,100 kPa. The concentrate leach plant utilized many innovative design features. This paper examines the first year?s operation, the challenges, the successes and the lessons learned. The future plans for Morenci concentrate leaching will also be presented.

Jan 1, 2009

By O. Bazhko

Regular analysis of different streams is important for the control of hydrometallurgical processes. Various physical and physical-chemical methods are applied for this purpose. Many modern methods require costly equipment and are subject to interferences. Therefore, redoxtitration methods remain of interest. The use of different types of oxidizing and reducing agents as well as redox indicators enables many cations and anions to be rapidly and accurately analysed. Sometimes redox titrations require the prior preparation and addition of masking agents. Selective, sensitive and low-cost methods of redoxtitration of copper and SO2 in plant conditions are described.

Jan 1, 2009

By H. J. Hutson

BRS, Inc. has utilized Carlson's Natural RegradeTM software to design the reclamation and stabilization of abandoned open pit uranium mine spoils, AML Project 16N, located in the Gas Hills Uranium District in central Wyoming. This work was completed for the State of Wyoming's Abandoned Mine Land Program (AML) on preSMCRA (Surface Mining Reclamation and Control Act) sites for which no reclamation obligation existed. The project successfully stabilized an eroding spoil dump, enhanced the local view shed, created habitat diversity and provided a significant source of fill material for open pit highwall hazard mitigation efforts. Additionally, the project served to evaluate innovative reclamation design methods, engineering software and grade control technology. This project was nominated for a National Association of Abandoned Mine Land Programs award by the State of Wyoming. The results of this project will be presented as a case history of the Natural RegradeTM approach to surface mine reclamation. Based on the successful application of this new mine reclamation technology on the AML 16N Project, reclamation designs for spoils associated with planned underground uranium mine operations at the Velvet Mine in the Lisbon Valley Uranium District of Utah for Uranium One USA, Inc have been prepared and will be presented. Critical elements will be the encapsulation of unsuitable materials, long term hydrologic stability, and sequencing and staging of ore and mine waste for final reclamation surface construction. The goal of the Uranium One Velvet Project will be to apply best available technology to reclamation planning and fully integrate the reclamation design with the mine planning. Benefits of the approach should include improved public and regulatory perception of the project, facilitate mine permit approvals and the eventual timely release of reclamation bonds, as it is anticipated the stable landform created through this process will result in more rapid stabilization of the site to pre-mine geomorphic conditions. NATURAL REGRADETM CASE STUDY AML Project 16N, D-9 and K Pit Reclamation Project, is located in an intensely disturbed area of the West Gas Hills Uranium Mining District in Fremont County, Wyoming. The overall design calls for the placement of approximately 7 million cubic yards of backfill materials in the D9 and K Pits, imported from adjacent mine spoils including the Central Spoils, and from local highwall excavation. Figure 1 shows the location of the Central Spoils excavation area, as well as the D9 and K Pits fill area. The entire project is located on public lands administered by the Bureau of Land Management, Lander, Wyoming District Office. No access controls are in place at the abandoned mine sites. The public lands are administered under a multiple use land policy including grazing of range land, public recreation, active mining and exploration, and oil and gas. The project site is located along Fremont County Road No. 5, which is a moderately well traveled road. Reclamation of the numerous and large abandoned open pits in the Gas Hills Uranium District has reduced the risk of death or injury to the public. Site History and Background The Gas Hills Uranium District was mined by multiple companies during the period from 1955 to 1981. The uranium was hosted in the Wind River formation, a sequence of soft sedimentary layers of interbedded sandstone, clayey shales, and conglomerates. Uranium was precipitated out of ground water in classic roll front deposits, which are found from very near surface to depths greater than 400 feet. Prior to the enactment of the Surface Mining Control and Reclamation Act of 1977 (SMCRA), very little reclamation work was performed when mines were abandoned or closed. The State of Wyoming Abandoned Mine Lands Program has worked to mitigate hazards associated with large open pits, control migration of unsuitable materials and restore watershed functionality of lands in the district. Additional reclamation is being performed by mining companies on bonded lands. Figure 2, Gas Hills Uranium District aerial photograph, shows the extent of the mining disturbance in the district. [ ] Project Hazards and Concerns The purpose of AML Project 16N is to mitigate hazardous conditions and risk to the public associated with open pit highwalls and toxic, acid forming, and /or radioactive mine waste materials. The D9 and K Pits are contiguous open pits characterized by an 8,800 foot long hazardous highwall that averages over 200 feet tall. In addition to the physical hazard presented by the highwall, the project addresses

Jan 1, 2009

By S. Hardcastle

Various controlled and ambient tests were undertaken to evaluate the performance of a variety of digital heat stress monitors, psychrometers and simpler temperature/relative humidity data loggers that measure, or determine, such parameters as: dry-bulb, natural wet-bulb, psychrometric wet-bulb and globe temperatures. In this comparison, funded by the Deep Mining Research Consortium, it has been found that all the instruments can competently measure dry-bulb temperature but the accuracy of other sensors could introduce significant uncertainty. For example the quality of relative humidity sensors and failure to correct for the barometric pressure difference in deep mines, directly impacts upon the calculation of psychrometric wet-bulb. The comparison has shown that the response of dry-bulb and globe temperature sensors can vary widely under different radiant heat conditions; however this would be negligible in most mines. Of more concern is the differing performance of the natural-wet bulb sensors especially at low relative humidity and low air velocity. Furthermore, from these tests and the currently available theory it was not possible to determine if any of the natural-wet bulb instruments measured that value correctly or validate any relationship between psychrometric and natural wet-bulb temperature at low air speeds where their difference is greatest. Consequently the uninformed use of some of the commercially available environmental heat stress monitors or derivations from other instruments could provide erroneous results affecting the work load category that can be accommodated or the rest ratio regime required.

Jan 1, 2009

By N. Pradhan, B. K. Mishra, B. D. Nayak, B. K. Mohapatra, R. K. Mohapatra

"Present study is about use of a group of Iron[Fe(III)] Reducing Bacteria (IRB) to convert the goethite (a-FeOOH) present in the original lateritic Nickel ore to magnetite under an anaerobic condition and subsequently release the bound Co(III) and Ni(II) through leaching. The lateritic Nickel ore contains 0.8% Ni, 0.049% Co, 1.92% Cr, 0.32% Mn and 50.2% Fe. An anaerobic dissimilatory Fe(III) reducing bacterial consortium capable of using acetate as carbon source (electron donor) and lateritic ore as terminal electron acceptor, changes the initial light brown color of the ore to dark brown. The change in color is due to the conversion of goethite to magnetite, which was confirmed by XRD. When the IRB treated sample was subjected to both bioleaching and acid leaching, it shows a greater recovery of Nickel and Cobalt values as compared to untreated original lateritic Ni ore. Further a magnetic separation method was used to separate the magnetic part of the treated lateritic ore and subjected to acid- and bio-leaching for better recovery of Nickel and Cobalt.IntroductionIt has been known that micro-organisms have the potential to reduce metals but more recent observations have shown that a diversity of specialist bacteria and archaea can use such activities to conserve energy for growth under anaerobic conditions [12]. Natural Fe(III) oxides are high in surface area and are reactive [1]. Fe (III) oxides adsorb a wide range of metal cations and anions by complexation to surface hydroxyl groups [17], and function as the primary redox buffering solid phase in many sediments and subsurface materials [5].Recently a number of bacteria have been isolated based on their ability to use metal ions, including Fe(III), as electron acceptor under anaerobic conditions. These are capable of producing energy by coupling the oxidation of organic compounds to reduction of Fe(III). Iron[Fe(III)]-Reducing Bacteria (IRB) have been isolated and identified from a wide variety of environments including freshwater and marine aquatic sediments and submerged soil [8]. The biogeochemical cycle of iron is linked to those of the trace metals, as many trace metals coassociate with Fe(III) oxides or reduced iron phases (e.g., magnetite, siderite, or iron sulfide). IRB can utilize Fe(III) oxides as terminal electron acceptors for respiration [18]; thereby reducing all or a fraction of the solid. The reductive portion of the iron biogeochemical cycle in non-phototropic environments (e.g., sediments and subsurface materials) is driven by the direct enzymatic reduction of Fe(III) oxides to Fe(II) by dissimilatory iron reducing bacteria [13,14]."

Jan 1, 2009

By O. Peters, D. Lascelles, R. Caldwell

Ageing tests on a crushed Cu-porphyry ore were conducted to assess the impact of sample oxidation on flotation performance. The objective of the testwork was to simulate ageing of ore that would be blasted through block caving but not milled for possibly several months. Ageing was performed in specially designed columns, using site and deionised water to keep the samples moist over the entire ageing period. Samples from each ageing interval (0, 0.5, 1, 2, 4, and 8 months) were examined for physical and metallurgical changes resulting from the ageing process through chemical analyses, size analyses, and batch flotation tests.

Jan 1, 2009

By Jianping Li, Ernesto Villaescusa, Kelly Fleetwood

During blasting, stress waves propagate through a rock mass, inducing stress and strain changes. This applied deformation affects intact rock, existing discontinuities, mine excavations, and engineered structures in the proximity of the blast. Traditionally in blasting, stress waves are quantified in terms of peak particle velocity (PPV) or peak particle acceleration (PPA), based on the method of measurement and the specified allowable tolerances. During analysis, the peak particle motion is coupled with an explosive source through various scaling laws to develop rock-specific attenuation relationships. Some studies have expanded this practice to the development of damage threshold values based on measured or predicted peak particle velocities. PPV-related thresholds are generally based on empirical models, where observation of overbreak, cracking, or fall-off are used to quantify damage. This method is often paired with the application of elastic plane wave equations to calculate the blast induced strain or the PPV threshold for tensile rock failure. Other factors that must be viewed critically in such models are the methods used to collect and analyse blast vibration data and the application of inappropriate vibration attenuation relationships.

Jan 1, 2009

By M. O?Driscoll

The tide has turned. Developments in China that have continued to unfold over the last four years or so have now reached a point where the supply market dynamics of certain industrial minerals have changed significantly. No more is this sea change better exemplified than by the supply market for magnesite, and in particular, its processed derivative grades of dead burned magnesia (DBM), caustic calcined magnesia (CCM), and fused magnesia (FM). But what has compounded the barrage of influencing factors impacting this sector, which include the widespread effects of energy and freight cost increases, has been rising demand from certain end use markets. Clearly, the magnesia market is experiencing bittersweet conditions. But those western producers which have monitored and responded to this market transformation, stand to taste success in the near and medium future. REVOLUTION IN WORLD SUPPLY STATUS In essence, while China, as host to a wealth of magnesite resources in Liaoning province, remains a huge producer of magnesia, its supply dominance on the global magnesia market has been considerably weakened. In future, it will mainly aim to supply domestic, and to some extent east Asian markets. Magnesia consumers outside China are now scrabbling for alternative, ?western? sources of supply. At the same time, magnesia producers outside China that weathered the storm of low cost Chinese DBM and FM imports flooding their regional markets for the last 20 years (and many did not), are busy investing in production capacity increases to meet not just demand from falling Chinese supply, but also demand from end use markets which is picking up. And it is not just a matter of expanding capacity of existing magnesia product lines. In the face of plentiful lower cost DBM and FM substitutes from China over the last couple of decades, many western magnesia producers started to switch their focus to the non-refractory markets (eg. environmental, specialities) which promised lucrative opportunities (and still do) and crucially, a lessening of sales revenue dependence on the DBM refractories market. Now we have the likes of Baymag (Canada), Bommag (Serbia/Turkey), and Kumas (Turkey) not only expanding capacities but seriously considering diversifying into DBM and FM production. Perhaps DSP (Israel), having ceased its famous high purity DBM activity as recently as 2005, might even reconsider a return to the ?other side?. But it?s not all DBM and FM. The CCM and specialities markets are also demanding a response, and so Baymag, DSP, Martin Marietta (USA), Premier Chemicals (USA), Qmag (Australia), MGR (Spain), and Magnifin (Austria) are also stepping up to the market on the non-refractory side. From most accounts, the situation with regard to Chinese supply has been described as one of turmoil, with prices rising, leading to improving opportunities for western producers. The majors are conducting huge expansion programmes, such as Qmag, Magnezit (Russia), and the new look Magnesita (Brazil). Even smaller players such as Causmag (Australia) and Dalmia (India) are looking to increase production. In short, the western magnesia supply sector is witnessing a landmark event in capacity investment and market share penetration as China?s previously dominant role begins to weaken (for a review of western capacity expansions see Industrial Minerals, September 2008, p.28). MERGER & ACQUISITION ACTIVITY Another response of course has been a raft of mergers and acquisitions in order to secure resources and supply outside China. These have included private equity groups taking over Magnesita and Qmag; Imerys entering the FM business through UCM; Peñoles further consolidating the electrical grade FM market by acquiring Minco; Martin Marietta acquiring Morton Salt?s Specialty Magnesia Group; Bomex entering the market through Calmag (now Bommag); LWB acquiring Magnesita; and Magnezit?s pursuit of Slovakian magnesia, with Slovmag aboard while currently wooing SMZ. Interestingly, RHI has gone ?the other way?, and has invested in a state of the art joint venture operation at Dashiqiao, Liaoning, with which it aims to secure high quality feedstock for its Chinese refractory plants. Tata Refractories Ltd has announced intentions to follow suit, and other majors, such as Qmag are known to be interested in seeking options. Naturally, there is now renewed interest from several parties in the idled 50,000 tpa DBM/10,000 CCM Jormag facility, Jordan, and the commercially undeveloped Zhargat project, Saudi Arabia. Elsewhere, there will no doubt be suitors for stakes in SMZ, in Slovakia, and Magnohrom, in Serbia, whose respective ownerships are on the block. THE ?CHINA FACTOR? The ?China factor? has been key to magnesia?s market change, and has significantly influenced prices and availability of material to global markets. Resources & production China hosts the largest share of the world?s magnesite deposits, accounting for 26% or 3,319m. tonnes of predominantly sparry magnesite (followed by North Korea, 24%, and Russia, 22%; Wilson 2008). China accounts for 44% of total world magnesite mined (19m. tonnes in 2007) and 50% of the total world magnesia produced (8.2m. tonnes CCM, DBM, FM; Wilson 2008). Russia follows China at 13% of magnesia supply, illustrating China?s dominance of magnesia production. Apart from one producer in Shandong province, central eastern China, the country?s magnesite resources and production are concentrated around the cities of Haicheng and Dashiqiao in Liaoning province, north-east China. Although there are also producers in the Xiuyan district of south-east Liaoning, the Haicheng-Dashiqiao Magnesite Belt hosts the majority of producers. In total these may number 200-300 of large,

Jan 1, 2009