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By Stanley Dempsey

INTRODUCTION The mining industry has been under- going a significant restructuring for the past several years. Some firms have been liquidated. Some have been merged with other firms. A number of mining divisions of larger firms have been spun off, in some cases in leveraged buyouts by management. Recently, there have been a number of spin outs of gold subsidiaries. There are also a number of start-up situations where new firms are emerging as significant gold producers through mine development or acquisition. This restructuring has created an attractive market for specialized mining finance firms, and a number of firms have recently entered that field in the United States. These firms provide financial advisory and valuation services to mining firms and project developers, and access to venture capital. In some cases, they invest for clients or for their own account. I have been asked to describe how our firm works, and what kind of information we expect to receive when mine developers seek our assistance in financing a project. HOW WE OPERATE Denver Mining Finance works for both mine developers and investors. We also provide expert advice on mining issues to governments and to firms who are in litigation over mining issues. A lot of our work involves valuing mineral interests for various purposes. Our principal expertise is in the technical, commercial, and financial area. We help put mining deals into shape commercially so that they can be financed, and we help investors get into mining deals that are commercially sound. We work on projects, but we also advise mining firms on the structure of their business and how to make the most out of one or several mines that they might own. In addition to our work for clients, we are also prepared to invest in mining projects for our own account, and to recommend gold properties for acquisition by our parent company, Royal Gold, Inc. We are, to some extent, a venture capital firm, in that we sometimes work with projects that are not "bankablerV1 and are prepared to invest in attractive early-stage situations in mining. However, I want to emphasize that our principal focus is on development of commercially attractive mining projects that can be brought into production in the best possible financial terms. If we can make a project qualify for a project loan from a commercial bank, we will not advise the developer to use high cost venture capital. For the purpose of this paper, I will focus primarily upon our functions with respect to development of precious metal projects. In a typical case, a firm with an advanced-staged project approaches us for help with financing the final feasibility study, and construction and operation of a mine. In some cases, the developer has already developed a financing plan and wants only our access to investors. If we agree that the project is sound and that the financing scheme will be attractive to investors, we will help the developer reach investors on a commission basis. In such cases, we are particularly insistent that the financing plan and our participation meet all regulatory requirements, particularly compliance with state and federal securities laws. In most cases, however, the developer asks us for advise both on how to structure the financing, and how it can be implemented. Here we work for fees based on hourly rates for advisory work,

Jan 1, 1987

By Leonard Harris, Rosa H. Harris

An important part of doing business today in the mining industry, especially overseas, involves community assistance programs for the people who live around the mining areas. The purpose of such a program is to build mutual cooperation and respect that will allow the company and its neighbors to live and work in peace. To do this, it is necessary to form associations or foundations and work in a joint venture fashion. The authors discuss in some detail the outline for setting up such programs and the important role that women, in particular, can play in them.

Jan 1, 2001

By Michael J. Howes

The nature of business in a free enterprise system is to maximise the return on an investment i.e. to maximise the wealth of the shareholders. This is normally achieved within constraints dictated by many agencies, one of which is the health and welfare of the employees. In the mining industry considerable effort has been expended in improvements in this field, however, the major problem still confronting the practicing ventilation or environmental engineer is the determination of what standards he should design for, which satisfy both the economic and health requirement s. Normally the basic health requirements are satisfied by the minimum standards defined in regulations and codes of practice. These are, however, based on an acceptance of a certain risk or lower production potential. A prime function of the ventilation engineer is therefore to financially justify and implement improvements to both standards and systems. The main purpose of this paper is to examine the basis and techniques of providing this financial justification. Changes in existing methods to achieve the same standards but at lower costs are also covered.

Jan 1, 1980

By A. T. Yu

The broken hill proprietary company Ltd., Australia's only steel producer, has come a long way. Since 1885 to reach today's. Capacity of 6.6 million long tons of ingot steel per year.* its Newcastle steel complex in New South Wales, located 100 miles north of Sydney and on-stream since 1915, has likewise shown continued impressive growth (fig. 1). The most recent expansion plans at Newcastle call for sub¬stantially increasing its production, with the help of some added facilities, but principally relying on the increase in efficiency of the furnace operation. Its modern raw materials blending system will playa major role in meeting Newcastle's new targets.

Jan 1, 1969

By L. C. Bartel

Geologic features such as structure (faults, folds, fractures, etc.), water bearing zones, aquifers, pemeability variations, and porosity variations are important for mine planning and in situ energy recovery processes. Features important for planning a mine will be important for planning the recovery of energy by in situ processes. Various geophysical techniques might be used to obtain the necessary geologic information. In this paper, case histories will be discussed of the use of electromagnetic geophysical surveys at a potential underground coal gasification site and a potential tar sand oil recovery site to obtain pertinent geologic information. Results show that the controlled source audio- frequency magnetotelluric technique shows promise for mapping faults and natural fracture systems when there is a sufficient resistivity contrast.

Jan 1, 1982

By Robert A. Metz

During the past decade we have witnessed spectacular improvements in productivity of open pit mining equipment. Thousand-horsepower engines, 200-ton trucks and 15-yard electric shovels, which such a short time ago were just dreams on a drawing board, are now realities. More productive equipment and metal shortages have encouraged increased production at existing mines and the development of new larger tonnage operations. Operators and engineers have been able to employ computers and various other types of automation to "stay on top of things". The mine geologist, however, is merely faced with a bigger and more rapidly changing pit to pick in. Keeping geologic information current in these mines presents entirely new problems to mine geological staffs. To obtain adequate geologic information on the developing orebody requires enlargement of the staff to share the work load or revision of methods in keeping with the times. The former has the disadvantage of loss of the comprehensive knowledge of the pit that a chief geologist likes to have, not to mention management's usual lack of enthusiasm for force increases.

Jan 1, 1970

By William K. Burriss

Computer technology was applied to solve three problems in the selling of certain industrial minerals to the glass and foundry industries. The computer solutions provide for better service to customers and have helped increase sales. II. Summary Electronic data processing techniques were applied: 1. To automatically and continuously "trace" rail car shipments of bentonite. 2. To aid our sales people in recommending to glass plant purchasing agents which of several possible feldspathic materials is the best value at any of about 100 glass plants and to give guidance on the amount of value difference. 3. To help in locating plant sites for three blending or pre-mixing stations to serve the foundry industry at minimum cost and with maximum tonnage and maximum profitability.

Jan 1, 1968

By Y. Luo, S. S. Peng

Based on the concept of slope-stability analysis, a formula for determining an important parameter required in the mathematical model for the prediction of mining subsidence in hilly terrain is proposed. The slope geometry and the physical and mechanical properties of the soil at the surface of the natural slope can all be considered in the formula. Incorporation of this new formula into an existing mathematical model provides an integrated approach for the study of ground movement in hilly regions.

Jan 1, 2000

By O. M. Bishop

Large reserves of copper are contained in waste dumps which have been created by open-pit mining of porphyry-type copper deposits in the Western United States. Nearly 6 billion tons of copper-bearing material exists in the waste dumps at present, and another billion tons will be added each three to four years as additional material is stripped from the present mines and new open-pit mines are developed. The dumps constitute an enormous resource containing some 7 to 10 billion dollars worth of copper. Increased attention is being given to the recovery of copper by leaching from these dumps as attested by the fact that in 1968 approximately $175 million of copper was recovered by leaching operations. During the leaching process, however, numerous problems exist which prevent complete extraction of the copper from the dumps. Probably the most important problem encountered is the incomplete contact of the copper-bearing materials by the leaching solutions. This problem is mainly created by the formation of physically compacted and chemically cemented layers within the dumps which prevent solution flow to many sections of the interior of the dumps.

Jan 1, 1970

By R. Jerez

This paper describes practical applications of lineal" programming techniques to help in the planning of production, transportation and shipments at different coal mines. The models are being used by Cyprus Coal Company in eastern and western operations to plan coal production, economic dispatching and blending over variable time horizons. In addition, where a preparation plant exists, the models establish the amount of washing required to meet specific coal sales qualities. The emphasis on this paper is on model development and implementation together with a system to track coal flow and qualities, either raw from the mines to the loading facilities 01" processed through a preparation plant.

Jan 1, 1991

By J. W. White, J. P. Olson

Computer-based dispatching in open-pit truck haulage operations yields many benefits of current interest to mine management. The key tangible benefit is a substantial productivity increase with a given fleet of equipment or, alternately, a significant reduction in equipment required to meet production quotas. Other tangible benefits in mines with concurrent operating objectives include minimizing rehandle, meeting several blending constraints simultaneously, and ensuring a target plant feed rate. Intangible benefits include production forecasting, performance comparisons of trucks or shovels of different manufacture, and extensive on-line report generation. Recent advances in mini- and micro-computer hardware and software and solid state electronics permit design and implementation of system features not feasible a few years ago. This paper discusses system aspects with emphasis on dispatching algorithms needed to meet concurrent objectives.

Jan 1, 1987

By Manfred G. Raschke

INTRODUCTION In the past decade, the international coal trade has been undergoing a period of gradual change. This change will continue through the remainder of this century until by the year 2000 the international coal industry will look very different from the industry which existed in the early 1970's. The industry which will emerge from the thirty year period of change (1970-2000) will be different in many ways. -The volumes of coal transported will be much larger. - The primary type of coal traded will be steam coal rather than metallurgical coal. - A much broader group of countries will be participating in the trade both as suppliers and as consumers. - The trade will be dominated by a relatively small number of large producing and trading companies. - The coal mined for international shipment will be primarily surface- mined. – The United States will play a decreasingly important role in international coal trade. In the course of this paper I propose to address three questions which are crucial to the formulation of an understanding of the changes outlined above : (1) Which supplier nations will be most successful in the international metallurgical and steam coal trade in the next decade and a half? (2) What emerging trends will shape the international coal trade in the 1980's and 19901s? (3) Where are U.S. producers likely to fit in this scheme of things? As a background to my remarks, I should note that what follows is based on five years of work in a consulting capacity on coal supply and demand issues worldwide. Although in the course of this work I have had occasion to develop mining and transportation cost figures for all of the countries discussed below--both my own and those obtained from coal producers--it is apparent that success in the marketplace can be determined in some instances by considerations other than costs. Nevertheless, my comments today about international competitiveness will be dominated by cost considerations; there are, after all, not many markets that reward the high-cost producer with success. Let us begin by establishing some criteria for success in the international coal market and then compare some of the producer nations to some of these criteria. The criteria are: - Low delivered cost, - Good quality coal, - The producer's partnership in a joint mining venture with an importer or a consumer of coal, - The producer's international business orientation and commitment to penetrating the market, - The producer's reliability as a supplier, and - Political pressure exerted by the producing country on consumers.

Jan 1, 1986

By Richard L. Wedertz

Although the physical appearance of excavating equipment doesn't seem to have radically changed over the past decade, important changes within the products and an innovative attitude on the part of the engineer in his design approach is becoming increasingly evident. The new philosophy is to go beyond simple refinements of existing designs that simply produce a machine which further reduces overall cost per ton or per cubic yard of material moved and to do it more efficiently than ever before. Standard ideas and preconceived notions have been discarded and have given way to providing a design and a machine that is best suited to get the job done. Understanding that the application will not always fit the machine, but, in most cases, the machine should fit or suit the application is a foremost consideration in the engineers' design criteria.

Jan 1, 1973

By Robert A. Jankowski, George E. Niewiadomski

INTRODUCTION The utilization of longwall mining technology in the United States has steadily increased since the first longwall plow system was installed in 1952. At the errs of FY 1992, some 76 coal mines were employing longwall mining systems for coal extraction, and approximately 78 shearer and 3 plow faces are operating nationwide at any given time. Although the number of operating longwalls has remained relatively constant over the last five years, longwall production levels have increased significantly during this period. During the same timeframe, the number of continuous miner sections has decreased by 13 pct., from approximately 1438 in FY 1988 to less than 1250 in FY 1992. According to Mine Safety and Health Administration (MSHA) data, the average production of longwall sections increased from approximately 2400 tons per shift (tps) in FY 1988 to more than 3100 tps FY 1992. In fact, the average production has more than tripled since 1978, when it was only 850 tps. Approximately 25 pct. of operating longwalls are capable of producing in excess of 4000 tps. Longwall production currently accounts for nearly 36 percent of U.S. underground coal production, compared to 4 pct. in 1978. These improvements are attributed to improved longwall equipment and increased availability, larger longwall panels and automation. While longwalls are highly productive and offer other advantages, operations employing this method of mining continue to experience dust compliance problems more frequently than other mining system. Although dust levels have remained relatively unchanged over the past five years, averaging 1.6 mg/m3 and 1.9 mg/m3 based on results of operator and inspector sampling, respectively, during FY 1992, approximately 25 pct. of the operating longwalls were in noncompliance during any given bimonthly sampling cycle. Although modest gains in longwall dust control technology have been made, these have been overshadowed by significant increases in production rates. As more coal is mined, more dust is generated (Figure 1). Therefore, the increase in longwall productivity has meant that far more dust is being produced which must be controlled. [ ] In view of the current compliance record, any efforts to further increase longwall output, as has been forecasted, must be accompanied by: (1) the reduction of dust levels at existing operations through the proper installation and maintenance of suitable engineering dust controls; and (2) the advancement of dust control technology for today's and future longwalls that will enable all face personnel o work in an environment that is free of excessive levels of respirable coal mine dust. MSHA'S RESPIRABLE DUST CONTROL PROGRAM Since 1972, federal regulations have required each coal mine operator to continuously maintain the average concentration of respirable dust in the mine atmosphere during each shift in the active workings at or below 2.0 mg/m3 through the application of environmental dust control methods. The regulations provide for further reduction in the dust standard whenever the

Jan 1, 1993

By Robert H. Poppe

The Regional Copper-Nickel Study examined the potential impacts of copper-nickel sulfide mining, concentrating and smelting operations in northeastern Minnesota and gathered extensive monitoring data on the ecological characteristics of the region's aquatic and terrestrial biota. Because of the many development options possible, the diversity of the region's ecology, and the uncertainty of future environmental regulatory requirements, the Study did not attempt to measure the magnitude of environmental impacts on specific biological communities from a specific development proposal. The Study provides a broad base of environmental resource and impact information that hopefully will assist mining developers and environmental regulators when assessing specific proposals in the future. The following discussion is not a description of what will happen if copper-nickel development occurs in northeastern Minnesota but an exploration of why certain potential aspects of such development should be carefully considered and adequately understood before unnecessary or irreversible decisions are made.

Jan 1, 1980

By J. B. Hiskey, V. P. Atluri

Resin-in-leach (RIL) cyanidation experiments were performed on a refractory carbonaceous gold ore. The objective of this investigation was to determine if strong-base ion exchange resins could adsorb the soluble aurocyanide complex in preference to natural "preg robbing" organic constituents. Direct cyanidation of the carbonaceous gold ore used in this study resulted in less than 2% gold extraction in 24 hr. RIL cyanidation resulted in about 70% gold recovery onto the resin. Kinetic experiments indicated that 50% of the gold is extracted after 1 hr of leaching. Resin breakage was investigated for as-received and preattrited resins. Similar results were obtained with three different strong base resins.

Jan 1, 1990

By Karl H. Gehring

According to the increasing importance of boom type roadheaders in tunnelling essential problems occuring in the application of these machines are dealt with. Based on a chart including the various stages for decicion finding the excavation method of underground cavities, both the technical limits and economic criteria are discussed in order to determine the range of applicability of roadheaders. Giving examples-the numerous developments in the fields of pick and cutting technology, performance data of boom type roadheaders in hard rock, safety technology and increase in the machines' degree of utilization, research and development of VA is illustrated. Two topic operation examples show partial aspects of the various tendencies of development.

Jan 1, 1981

Computerized financial models can be used in all phases of the mineral industry from setting exploration targets to projecting profit plans for producing mines. In this presentation, I will use the example of an exploration company entering a new district to trace the application of financial models through the following intermediate phases. 1. Hypothetical analysis and strategy 2. First encounter of mineralization 3. Preliminary drill results - decision process 4. Feasibility studies 5. Post-feasibility negotiations 6. Producing mine 7. Acquisition of producing mines or mineral properties. I will conclude with a brief discussion of the mechanics of the financial models that we use at Wright Engineers Limited. As we progress through the seven phases, the availability and accuracy of the data will parallel the complexity and application of the financial models. However, the same basic financial models are utilized throughout the seven phases. I will begin by suggesting that the exploration group is somewhat autonomous and has the mandate to explore in Western Canada.

Jan 1, 1979

By Ryne Goodnough

INTRODUCTION The Wyodak Mine is located in the northern Powder River Basin of Wyoming and is thought to be the oldest continuously operating coal mine in the United States, having recorded yearly production since 1923. The mine has expanded over its 80-plus-year history from an underground room and pillar operation to a modem surface snip mine. Currently, the mine feeds four on-site power plants using conveyors, has a filly automated truck load-out, and ships coal by rail to nearby Wyoming power plants. Annual production of 4.8 MTFT is accomplished on a single-shift basis with 53 fill-time production, maintenance and administrative personnel. In 1990 a decision was made to modernize the coal feed system to the power plant complex with modular conveying equipment. The project involved constructing coal storage silos, overland conveyors, feeder breakers and modular conveyors to follow the mining benches. Total project cost in excess of $25 million was used to construe or commission: A 2,150-TPH 48-inch overland conveyor with horizontal curve A 2,150-TPH 48-inch plant feed conveyor 13 shuttle conveyors, each 150 feet in length 2 front-end loaders equipped with large coal buckets 2 crawler-mounted feeder breakers with compatible discharge conveyor 1 high-lift shuttle conveyor with adjustable discharge height 1 high-angle conveyor 2 4,500-ton coal silos with automated truck load- out capabilities. Conceptually, the plan was to develop 33 MTONS of reserve adjacent to the plant complex and use front-end loaders to tram ROM coal to in-pit feeder breakers. The primary crushing would reduce coal to 6-inch minus and feed through a series of shuttle conveyors to an overland supply conveyor. The overland conveyor would feed the secondary crusher, and the crushed product would be moved to any of four storage silos using conveyors. The in-pit crushing and conveying system is a unique fit for the power plants and provided many interesting challenges for the coal mine to overcome. System integration, maintenance windows, equipment availability and the like had a major role in engineering the system to a power plant complex having no emergency coal stock- pile and limited plant storage. In crediting the designers and operators, the in-pit conveying system at the Wyodak Mine has delivered coal to the power generators since 1994 with little or no downtime. ENGINEERING CONSIDERATIONS Yearly production for the mine is based on 3.5 MTPY which requires about 1,550 TPH on an 8 hour, one-shift- per-day, 5-days-per-week basis. Considering efficiencies for starting and stopping, crew transport, loader trams, and operational delays, a nominal conveyor feed rate of 2,150 TPH or 72% system utilization was used in engineering design application. This ton-per-hour basis is used to size and commission the remaining components of the in-pit system. Coal quality requirements also played a role in equipment selection. The mine reserve grades vertically and coal from Upper and Lower benches needed to be mixed in any given proportion. This required equipment to be filly variable and capable of producing all or part of the 2,150-ton-per-hour requirement. Bisecting the 80-foot- high coal face for quality required construction of a high lift module capable of reaching a single overland conveyor 40 to 50 feet above the pit floor. Designers built a high-lift, adjustable and portable module specific for this application Having two bench systems capable of each producing the required feed for the power plants required computerized control processes to control on-line production. RSLinx, RSLogix, and RSView were chosen as the communication and control software, and a Data Highway Plus serves as the communication backbone. Each of the two in-pit benches are controlled with a data center equipped with Allen Bradley 5-40 processors. This

Jan 1, 2004

By K. Y. Haramy, B. T. Brady

A scale-invariant theory of the strength and deformability, of rock masses in static equilibrium and at incipient failure is proposed The theory provides a rationale, for designing structures in rock. This paper presents results of experiments conducted by the US Bureau of Mines and presents theoretical methods to determine and interpret the in situ strength of rock masses using the borehole shear tester.

Jan 1, 1996