Search Documents

By Stanley W. Holmes

"The discovery of extensive uranium mineralization on the Pronto property in April 1953 initiated a program of staking, exploration, and development unparalleled in Canadian mining history. Within twelve months of the discovery hole, sufficient ore had been blocked out to merit a 55-million-dollar contract with Eldorado Mining & Refining Co. On October 15, 1955, two years and four months after discovery, Pronto went into production with a mill rated at 1,000 to 1,500 tons per day. The property is on the southern edge of the Algoma uranium district, 10 miles east of the town of Blind River and close to the Canadian Pacific Railway and Highway 17. Docking facilities for Great Lakes steamers are avail-able at Spragge, 4 miles to the east.The data and conclusions presented in this paper are based on field studies, drill hole information, and underground development. The ideas of ore genesis are those of the writer, and will undoubtedly be modified as more detailed studies and research are carried out. Because of security regulations, information pertaining to grade and tonnage will not be discussed.GeologyThe general geology of the Algoma basin has been outlined in a pre-ceding paper (Joubin and James). The description below is concerned essentially with the rocks most closely associated with the Pronto deposit. They may be grouped in three structural and lithological units: (1) the pre-Huronian basement, (2) the Mississagi formation, the lowest member of the Huronian sediments lying unconformably on the basement, and (3) a series of basic intrusives cutting (I) and (2). Most of the uranium mineralization occurs in a quartz-pebble conglomerate forming the basal member of the Mississagi quartzite."

Jan 1, 1949

By Paul Toor

The operation of SAG mills is variable over time due to their continually changing liner shape, mass and subsequent load motion. However, this tends to be poorly accommodated in liner design and mill control, with only limited compensation made for this influence, usually in the first few weeks after a new liner is installed. With ever-increasing ore competency, increasing energy costs and decreasing ore grades, simplified design and operational approaches that compromise the achievable mill efficiency are no longer adequate. This paper presents a methodology that has been developed to measure and account for the changes in mill performance as the liner wears. This involves monitoring all liner profiles ? in other words the three-dimensional liner shape - over the life of the liner, then conducting controlled surveys at different stages of the liner wear life, and correlating the mill performance to the liner profiles. The measured liner mass is modelled to provide an ongoing meaningful load mass measure that excludes the liner mass.

Jan 1, 2012

By J. P. Morris, J. T. Novak, E. A. Sarver

"A variety of reagents are utilized in coal preparation, but aside from performing their desired function relatively little is known about the behavior of these reagents within the processing circuits. Where exactly do reagents go once dosed? In this paper, we present preliminary results of partitioning studies on frother (i.e., MIBC) and collector (i.e., diesel) chemicals commonly used in coal flotation, and examine implications for water management (e.g., in closed-loop systems). Additionally, we discuss the usefulness of such data in predicting environmental transport and fate of chemicals – which is currently a top priority for industry.INTRODUCTIONThe purpose of coal preparation is to upgrade mined coal into more valuable products. Since coal is primarily used as a fuel source for electricity generation, product specifications are typically contracted to minimize unwanted constituents that detract from the overall heat value (e.g., ash and moisture) or that add to environmental pollution or other problems like corrosion at a power plant (e.g., sulfur) (Pitt & Millward, 1979). Failure to meet specifications results in a financial penalty for the coal producer (Szwilski, 1986), and thus preparation processes have evolved to simultaneously optimize recovery of valuable “clean” coal with rejection of mineral matter and moisture. In addition to advancements in equipment and circuitry, development and application of various chemical reagents has dramatically improved the performance of coal preparation processes.Contemporary preparation plants typically include multiple circuits that can be categorized by the size of particles they process: coarse, intermediate, and fine/ultra-fine (Figure 1). Coarse and intermediate circuits generally rely on size classification and gravity separations (e.g., dense-media cyclones), and do not require significant chemical reagents. However, fine and ultra-fine circuits often use froth flotation to separate coal from impurities, which requires chemical additives (Table 1). The primary additives include collectors, which coat the surface of the coal particles to render them (more) hydrophobic and thus more likely to attach to air bubbles and float; and frothers, which aid in the formation and stability of the froth that will accumulate the floated coal particles. Modifiers are also commonly added to flotation circuits to regulate pH in instances where coal or impurity characteristics may change water chemistries (Laskowski, 2001). Following flotation, coagulants and flocculants are often utilized in solid-liquid separations (i.e., dewatering or clarification) for coal products, and for tailings slurries prior to their disposal in impoundments. Coagulants function via double-layer compression1 to bring colloidal particles together, while flocculants promote bridging between the grouped colloids – and the combined result is enhanced sedimentation (Wills, 2006). Defoaming or anti-foaming agents may also be required to avoid fouling of dewatering operations."

Jan 1, 2012

By J. F. Wright

Gold-bearing quartz veins and replacement chalcopyrite deposits are the two important types of metallic mineral deposits of the east central Manitoba mining district. The gold-bearing veins occur along Manigotagan valley, northwest for 25 miles from Beresford lake, and the copper deposits along Oiseau valley, between Oiseau lake and the east end of Lac du Bonnet. Lithium-bearing minerals of possible commercial value have recently been discovered in pegmatite along Winnipeg river about 10 miles east of Point du Bois. There are also prospect pits with showings of galena, sphalerite, cobaltite, pentlandite, nickeliferous pyrrhotite, arsenopyrite, pyrite, molybdenite, cassiterite, and other minerals, but the various occurrences of these minerals, as exposed, are small. The bedrock and mineral deposits of this mining district are Precambrian and resemble in many respects the formations and mip.eral occurrences of western and northern Ontario. Although prospectors visited eastern Manitoba at intervals during the last fifty years, effective prospecting did not begin until 1913 or 1914, and not until 1923 were skilfully directed, systematic explorations undertaken. It is true, that between 1913 and 1923 considerable sums were expended in a number of attempts at mining and milling the gold-quartz ore, but these enterprises failed partly through poor management or attempts to develop veins that were too small or too low-grade to be worked at a profit under the existing conditions of transportation and power supply.

Jan 1, 1925

By M. J. Marinigh

Increased safety requirements, higher operational costs, greater environmental restrictions, and new competitive processing techniques are the challenges smelter operators must confront in order to remain economically viable. In converting furnaces which have tuyeres such as the Noranda Reactor and the Teniente, Peirce Smith and Hoboken converters, efficient tuyere line management is critical to optimizing blowing rates, increasing refractory life, and improving safety. This paper will describe recent improvements made to equipment used for tuyere punching, tuyere silencing, tuyere pyrometry and refractory drilling of tuyeres and how the proper application of the equipment can lead to operational and safety improvements.

Jan 1, 2007

By S. Kelebek

Efficient separation of minerals is the essence of mineral processing. Separation of hexagonal pyrrhotite in processing of Ni-Cu sulphide ores was investigated together with particle size effects with respect to selective flotation recovery of pentlandite and nickel. The recovery by size response was compared for sodium metabisulphite (SMBS), triethylenetetramine (TETA) and their combinations with amyl xanthate as a collector. The pyrrhotite recovery for all sizes was lower than that of pentlandite for the blank case as well as individual cases with SMBS and TETA. For pyrrhotite, the recovery by size relations in the case of individual uses of reagents were mainly determined by recovery losses at coarser size range (>74 um), which occurs at a coarser size for pentlandite (>212 um). The combined use of SMBS and TETA, and the associated synergistic effect very significantly knocked down the pyrrhotite recovery to less than 7% that was a maximum for the –10 um (attributable to hydraulic entrainment). High recovery of pentlandite in a wide range of intermediate sizes and drastically low recovery of pyrrhotite resulted in a very efficient separation of pentlandite from pyrrhotite in all sizes. Separation of this mineral is discussed in relation to fundamental functionality of the reagents used.

Jan 1, 2017

By F. Channier

The paper provides the most recent information on the construction of the AP60 phase 1 plant of Jonquiere which is due to be commissioned and started up in the first quarter of 2013. HSE management on site by RTA, and cooperation with local equipment manufacturers and contractors of the Saguenay-Lac Saint Jean region are highlighted in this section. The AP60 phase 1 Jonquiere plant aims to demonstrate of the AP60 technology at an industrial scale and allows the further developments of the AP60 cell. The advantages of the AP60 cell technology in terms of productivity, power consumption and environmental footprint are also briefly presented in the paper.

Jan 1, 2011

By V. L. Eardley-Wilmot

Diatomite as prepared for the market is a fluffy, white powder, remarkably light in weight-it weighs only 10 to 15 pounds per cubic foot, or one-tenth as much as sand. Being extremely porous and inert, it is in large and increasing demand for insulation and filtration purposes, as general filler, and for many other uses. Structure Structurally, diatomite is quite different from any other known commercial material. It is composed of myriads of microscopically small, siliceous shells of diatoms which belong to a group of flowerless aquatic plants called algae. When these plants die, the siliceous remains sink to the bottom of the water and form beds of diatomite. Over 8,000 species of diatoms are known, named, and tabulated. The intricate scroll-work and patterns on many of these are one of the marvels of nature, and yet so small are they that from 40 to 70 million separate diatoms may be contained in one cubic inch of material. However, the size and shape of these diatoms, which vary greatly (compare Figures 5 and 6), have an important bearing on the commercial use of the diatomite. The diatoms in the majority of the known deposits are so typical of that deposit that, after a micro-examination, an expert can usually tell not only from what part of the world, but also from what particular deposit, the sample has come.

Jan 1, 1931

By C. J. Preston, R. E. Ström, G. R. Baiden

"On January 1st 1996 Inco Limited, Tamrock OY, Dyno Explosives Group and CANMET formed a consortium for the development of robotic mining equipment. This project is a five year research and development agreement that combines the talents of the above organizations to facilitate the creation of mining equipment and systems for robotic mining.The projects are based on the communication system developed by Inco Mines Research and currently sold and marketed by Automated Mining Systems Limited. Main projects include the development and implementation of a positioning and navigation module (including a software mapping system that will be inherent to each piece of equipment), robotic systems for development and mining, and software systems to support the use of this equipment. Included in the program is the establishment of a test mine, at Inco’s 175 ore- body at Copper Cliff. This facility will allow collaboration of companies and research organizations for the design and testing of techniques and equipment for Robotic mining.This paper discusses the creation of this new research alliance, the Mining Automation Program or MAP."

Jan 1, 1997

By R. L. Bruening, J. B. Dale, N. E. Izatt, S. R. Izatt

IBC Advanced Technologies' Molecular Recognition Technology (MRT) SuperLig® products selectively and rapidly bind with target metal ions to remove them from solution. The MRT process can produce a high purity separation product of maximum added value at low cost. This paper discusses applications for MRT in the gold industry, including recovery of gold and silver as well as metal contaminants from various process and recycle streams.

Jan 1, 2011

By J. Kramer, T. Hartmann

In the Hydrometallurgical processes, the presence of the so-called “crud” is a constant challenge in solvent extraction. Crud is a stable emulsion which forms along the interface between the aqueous and organic phase. The spread is influenced by the following parameters: first, wind blows the dust and impurities into the open sedimentation tanks. Second, the undissolved solids such as sand transported in the PLS causing problems in conjunction with incorrect agitator design. The crud fraction can decisively impact the efficiency of the hydrometallurgical extraction because the phase interface can constitute a large fraction and the sedimentation tanks cannot react flexibly to it. In the downstream process of the seriesconnected sedimentation tanks, they are thus all contaminated with crud. At the same time, the necessary mass transport is significantly impeded at the phase boundary between organic phase and aqueous phase due to the crud formation. The transfer of the organic phase into the electrolysis cell can result in a “burnout” of the cathode. The carry-over of this electrolyte into the extraction can cause problems with the pH regulation. The carry-over of the organic components into the raffinate also leads to contamination of the leaching circuit. The continuous treatment of the crud with a 3-phase decanter centrifuge is extremely effective in combating this problem. This technology splits all three phases from each other and they are consequently continuously separated. All subsequent process steps exhibit a stable, uniform effectiveness. The main advantage for the customer is that fluctuations in the process are eliminated and the organic phase can be recirculated back to the extraction. The recycling of the solvent alone justifies the investment in less than 6 months as examples from South Africa and Chile show. To operate solvent recovery in daily operation fully automated online at the optimum limit, the decanter centrifuge is equipped with a concentration-dependent pond adjustment called DControl®. By this means, we can guarantee our customers the maximum possible solvent recovery and minimise the solvent costs in this process step. This system is presented in detail in this paper.

Jan 1, 2012

By Guocheng Pan

"Although many factors play roles in the estimation of recoverable reserves, smoothing effect and conditional bias are considered major geostatistical issues in the estimation. This paper introduces measures for smoothing effect and conditional bias, and provides insights into their relation to the estimation of recoverable reserves. Both smoothing effect and conditional bias are intrinsic to the information effect and kriging estimators. For a given level of drilling information, however, it is possible to identify the optimal search radius that minimizes conditional bias. Furthermore, it is also feasible to define variance correction factor for reduction of the smoothing effect from exploration block models. Both of these components are key to the accurate estimation of recoverable reserves. IntroductionThe accurate estimation of recoverable reserves is critical to decision making in different phases of feasibility study and mine planning. Much attention for improving the methodology of estimation has been focussed on the effect of the change-of-support (Parker, 1980; Dagdelen, 1996). For example, it is essential to make a volume- variance correction to the estimate of multiple indicator kriging (Hoerger, 1992). When the size of block, b, in the geostatistical model differs from that of selective mining unit (SMU), v, a volume-variance correction is warranted for the prediction of recoverable reserves.Most mining plans and decisions are made prior to the availability of high density blast-hole samples. In most mining operations, the true SMU grade Zv is unknown at the time of selection. Instead, the selection is based on the estimate Z v**derived from high density blast-hole samples within the deposit G. Nevertheless, the estimate Z v * of recoverable reserves in the stage of mine planning is derived from exploration data. At the end, the production result must be reconciled to the estimate Z v * . In other words, the selection is based on Z v** from blast-hole samples, while the final production figures are reconciled to Z v * from exploration drilling. For a given preselected cutoff grade z0, the actual mining panels will consist of the units having the estimated grade Z v** =z0 rather than the true grade Zv =z0. The difference between Z v** and Zv is usually of less concern."

Jan 1, 1998

By Unknown

Diesel locomotives for underground haulage have been used in coal mines in Continental Europe for twenty-five years or more. In Great Britain, it was not until 1935 that permission was granted to use them in gassy coal mines, but since that time they have been employed in increasing numbers both in gassy and non-gassy coal mines and in metal mines. Their use underground in coal mines in the United States is still prohibited and the same was the case in Canada until 1946, when permission was granted to operate a Diesel underground in the Adanac mine of West Canadian Collieries, Limited, at Bellevue, Alberta. The locomotive used here is a 50 h.p. Hunslet Mark II. More recently, a 100 h.p. Diesel was placed in operation for underground haulage at No. 18 Colliery of the Dominion Steel and Coal Corporation, in the Sydney coalfield, N. S. Thus, on this continent, Canada has been a pioneer in the use of these locomotives underground in coal mines and there is no doubt that more and more of them will be employed as time goes on. We feel, therefore, that the following notes concerning their design and performance, which we have received from the High Commissioner for the United Kingdom, will be of interest to our members.

Jan 1, 1949

By Lawrence Devon Smith

The selection of the production rate is one of the most crucial decisions to be made in the development of a mineral property. However, it is not uncommon for the production rate to be decided arbitrarily, before any technical evaluations begin, and it is often not reconsidered when better data becomes available. A number of methods are used in the mineral industry to select the production rate for a project. There is general agreement that the size of the ore reserve has a strong influence on this decision, but what other factors are involved? Is there a way to identify an optimum rate? This paper examines the factors that influence the selection of a production rate from the perspective of project economics. The NPV maximum value should be viewed as a “failure” point. The “two times capital” maximum is proposed as a lower limit. A practical check is suggested to confirm that a selected rate is in an optimum range. Production rate assumptions are much more likely to be reviewed for marginal projects, but they should also be reviewed for viable projects.

Jan 1, 1997

By N. Behnood, W. Pascheto

"Laboratory wear tests are important tools that can be used for the evaluation of materials for wear applications and mitigation of wear problems in the mining industry. However, laboratory test parameters must be fully characterized and test results must be carefully interpreted if a material selection is to be made. Failure to do so may lead to erroneous conclusions. Suitable lab-oratory tests are valid only if they reflect the field conditions to which materials are subjected. Therefore, it is important to know, in detail, the field conditions, as well as the wear test techniques being considered. It is important to recognize the limitations of the various wear tests and the wear test data published in the literature. This work will review present wear testing technology, including the various wear tests avail-able, wear test equipment and test limitations. Several wear test procedures will be related to common equipment used in the mining industry.IntroductionThis paper will concentrate on non-lubricated wear mechanisms, because they are the most costly to the mining industry. Very frequently we are faced with the task of selecting materials for wear applications or improving existing systems that are giving poor performance. There are plenty of examples in the literature of practical wear cases and ranking of materials for wear applications. It is also very common to find materials manufacturers’ data -sheets listing wear tests results by comparing their materials performances against those of competitors. Much of the published wear data lack the description of the type of wear test, test parameters and the type of wear mechanism to which the data should be applied (if any).Before considering wear test data for a specific problem one should ask which type of wear mechanism is involved? What type of test and what test parameters were used to produce the results? Even if the type of wear tests and parameters are known, how accurate and useful are the published wear data? How are the results related to a particular type of wear? It is important to point out that even the standardized wear tests, such as those in ASTM standards, have limitations. Such limitations are recognized and clearly spelled out in the standards themselves. Basically, wear tests may lead to erroneous results if the test is not able to repro-duce the same wear mechanisms encountered in the field. Therefore, the use of published results may be helpful, as a starting point, but may be of little value for a final material selection.This work will discuss the main types of non-lubricated wear mechanisms encountered in the mining industry. In addition, it will discuss the many wear tests available and their correlation with the various types of wear mechanisms. The limitations of several standardized wear tests and the limitation of using published wear data will also be discussed."

Jan 1, 1997

By Kimberly Morrison

Strategically located within the Uravan Mineral Belt District of western Colorado, the Piñon Ridge Project is the first new uranium mill being proposed for construction in the United States in over 25 years. In 1992, dramatic changes to the US regulatory environment for uranium ore processing occurred making regulatory compliance an increased challenge for a new facility. Proposed as a 6.3 million tonne uranium milling operation, the mill will receive ore from a number of mines in the region. The project includes design and permitting of a uranium/vanadium processing facility, tailings cells, evaporation ponds, and ore stockpile pads. The focus of this paper is to provide an overview of the US regulations and how these regulations were applied to design of the mill facilities, as well as provide a status update on the project as the mill license application was submitted to the Colorado Department of Public Health and Environment (CDPHE) in November 2009.

Aug 1, 2010

By P. R. Geoffroy

Extensive and Intensive Prospecting As often pointed out, the search for new ore deposits may be carried on along two widely divergent lines. It may be either extensive or intensive. By extensive prospecting we mean a search for mineralized outcrops conducted over large and more or less virgin tracts of land, followed by a test of the practical value of any discovery made, the test being limited to the immediate vicinity of the outcrop. Extensive prospecting, was, in fact, the only policy known to the early prospectors. of the American continent and is still the rule in the remote sections of the Canadian Shield and in the African wilderness. It can be further characterized by the lack of emphasis placed on geological and other technical means as an aid to the search for ore. However, very little virgin ground is left, nowadays, for a man or a company to test their luck, and whatever is left is so remote from the necessary means of development that any new discovery will require considerable delay and expenditures to be amenable to profitable mining. On the other band, a great many of the favourable and still unexplored areas (and this is particularly true in Canada) are overburdened to such an extent that outcrops of bed-rock are extremely scarce and extensive prospecting is nearly impossible. Intensive prospecting, to the contrary, must be understood as a detailed search for ore carried on over limited areas in districts already known to be mineralized and covering regional structures whose relation to mineral deposits bas been estahlis.hed with a fair degree ot certainty. The search for deep-seated deposits in the vicinity of successful mines is a perfect example of intensive prospecting. As a matter of fact, the majority of the geologists employed by the mining industry are engaged in some kind of intensive prospecting.

Jan 1, 1950

By H. G. Harper, R. C. Hart

"The Mississagi quartzite is the basal formation of the Quirke Lake trough. As it is traced around the rim, a gradual change in dip is observed, as follows:Northwest corner 50 degrees south.Algom Quirke mine 34 degrees south.Quirke Lake 25 degrees south.Whiskey Lake 22 degrees west.Pecors Lake 25 degrees north.Algom Nordic mine 18 degrees north.Elliot Lake 11 degrees north.Pistol Lake 5-7 degrees west.Thus the apparent synclinal axis is a curving east-west line lying closer to the north limb than to the south. The axis appears to plunge west at about 5 degrees.The Huronian sediments lie on a basement of granites, gabbros, and volcanics. Diamond drill evidence indicates that this basement has a surface of peneplanation, and that the areas of soft basic rock have a smoother topography than the granite. For the most part the orebodies at the Quirke and Nordic mines overlie a basement of soft basic rock.The Mississagi formation is the host rock of the deposits, and its primary structures are suggestive of the conditions under which the conglomerate beds were deposited. Cross-bedding is common, although normal bedding varies from thick to thin to essentially lacking. Grain gradation is not common. Where coarse and fine grains occur together, the coarse tend to be more rounded than the fine. These features are characteristic of shallow-water deposits, laid down above the lower limit of wave action. Therefore, the quartz-pebble conglomerates probably represent ancient water courses, bays, beaches, and bars.The causes governing the creation of the trough can only be conjectured, but there is evidence that both subsidence and compressive stresses played active roles. Drag-folds in argillite beds near Whiskey Lake indicate compressive stress. On the other hand, gentle crumpling in thin-bedded limestones on Quirke Lake is probably due to pre-induration slumping and folding. If strong compression had been widespread within the trough, one would expect drag-folding and shearing of the incompetent beds to be more general. Two large-scale, fold-like structures were mapped by Collins, but their axes do not parallel the trough axis, and they are therefore not related to the major structure."

Jan 1, 1949

By Jonathan Peck, Jim Gray

"While the mine developer looks for bigger and better orebodies in countries offering lower risks to development capital, the opera-tor of existing mines is looking for bigger and better ways to use his existing resources. Mining operations today utilize a variety of stand-alone systems for planning and managing their operations. In both small and large mines, payroll, accounting, inventory, planning, and engineering requirements are met using a combination of manual and computer-based systems.Technical advances and new enabling technologies are changing how mines are doing business. PC-based systems are allowing small operations to join the larger mines in using advanced computer-based systems. Advanced monitors are being used in maintenance to track, predict and correct the health of production equipment. Production monitoring systems are used to measure the performance of operating equipment and personnel in real time. This detailed information on how much, where, when, and by whom is being used for proactive management and planning. Ultimately, this information can be used to optimize and control the machines’ activities, eventually leading to robotic and autonomous operation of mining equipment.As the use of technology increases in mining, specific information objectives are being met but other problems are being created. The life cycle of technology is small, and as current systems are replaced by newer ones, integration problems and additional end-user training are created. In addition, onboard monitoring systems can create large volumes of data, data which are frequently archived without being analyzed. Mine operators are also duplicating efforts applying new technologies in an effort to be more competitive, but in doing so are creating interfaces which are only compatible with their own facilities. As system development moved from the centralized mainframe computer to the PC environment, the fragmentation of these systems became more pronounced.To efficiently continue in adapting and utilizing advancing technology, the mining industry needs to develop a system architecture that readily integrates as many sub-systems as possible. This will provide a framework for existing system integration and design guide-lines for future development. The Total Mining System (TMS) concept will allow a network of stand-alone functional modules to be readily integrated with minimal effort. This paper will discuss some of the current technologies cur-rently in use in some surface mine operations.In addition, a description of the information system and communications requirements that will be needed to integrate these components in the future, will be discussed."

Jan 1, 1996

By Dean L. Millar

Measures taken by mining companies around the world to reduce their carbon footprints are becoming increasingly important in the sector securing its social licence to operate. The options for measures reduce to three categories of activity: i) demand reduction by avoiding unnecessary waste of supplied energy, ii) improving the utilization of energy that does have to be consumed and iii) adopting low carbon energy production options?including renewable energy. As well as the environmental imperative, as the prices of electricity, gas and liquid fuels increase, so the economic case for activities i) to iii) gains higher priority, especially in such an energy intensive industry. The specific energy consumption for certain upstream minerals industry operations in Canada is reported to be as follows: underground mining: 99.5 kWh/tonne mined; surface mining: 11.7 kWh/tonne mined; base metal processing: 81.4 kWh/tonne milled; gold processing: 99.6 kWh/tonne milled. Around 508 kWh/tonne (slag) of heat is reported to be available in cooling slag from 1500°C to 25°C; an amount that is simply indicative of the energy intensity of downstream smelting and refining operations. Low carbon, energy saving technology options that are available to mining industry companies lead to projects with return rates that must compete alongside other capital intensive projects considered by mining company boards. Energy projects frequently involve longer payback periods and lower rates of return than those of competing bids for capital, such as those for development of new mineral properties. For energy services companies (ESCOs) that specialize in the financing, construction, and the efficient operation and maintenance of energy projects, the same returns and payback periods may be considered acceptable or even attractive. For the ESCO, the key commercial risk mitigating factor is a securing a long term contract for the supply of energy.

May 1, 2011