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By G. R. Heffernan

"In the early 1970ssteelmakers worldwide were looking forward to many years of expansion and profitability. Huge government investments in Europe, the United Kingdom, Japan, Brazil, and Venezuela were committed in anticipation of growing market s based on long-term OECD forecasts. In 1973 the first OPEC oil shock occurred. Steel demand shrank. Restructuring became the buzz word of the day as billions of dollars in taxpayers' money was poured into eliminating excess capacity and labour. In the United States, where government help was not available, inefficient companies went bankrupt; capacity was cut to 100 million tons from 155 million tons. The industry throughout the industrialized world shrank. By 1979the world economy seemed back on track and a modest degree of optimism could be detected in the international steel fraternity. Then came the second oil shock. By 1982 the industry was in the midst of another shakeout. More bankruptcies, more rationalization, and fewer jobs resulted. In Canada some well-known companies came close to the brink as low prices and high interest rates took their toll. In the light of the turmoil in the steel market over the past 20 years an attempt to forecast the trends through to 2001 is intimidating.However, there are good reasons to be optimistic today about both markets and technology.An economic super power is emerging in western Europe as 1992 draws near. The creation of a single market of 320 million well educated and economically ambitious people has major positive implications for steel demand. The mega projects of the channel tunnel, a European network of high speed railways, and the London docklands are the forerunners of greater things. Still to come is another $200 to $300 billion by the year 2001 in identifiable major projects for highways, railways, airports, water and sewage systems. Add to that the demands of an increasingly affluent population for automobiles, appliances and housing. On top of all that place large increasing demands for electric power and you have a potential beyond anything seen during the 1970s and 1980s. In 1988 the EEC steel industry operated at 90% and in 1989 at 92% of effective capacity. A surge in spot prices indicated that 92% was close to the ceiling. This pace moderated in early 1990 but any slack will probably be taken up rather quickly."

Jan 1, 1990

By A. Montini, M. H. Moys

"A conductivity probe mounted in the shell of the mill has been used to measure the behaviour of the load in the mill as a function of operating variables. It was found that certain properties of the conductivity signal correlate strongly with the per cent solids of the slurry passing through the mill; in particular the angular location ?D of the shoulder of the load is an increasing function of the per cent solids. A method for measuring the viscosity of the pulp discharging from the mill has also been developed. The use of the measurements in mill control is illustrated by simulating various control strategies for open circuit milling. It is shown that the use of ?D allows very tight but imprecise control of the slurry rheology in the mill, while the use of viscosity is subject to severe limitations in speed of response. A cascade control system involving both measurements provides adequate control of slurry rheology within the mill. Applications to closed circuit milling are discussed.IntroductionMultivariable control of milling circuits continues to receive a lot of attention in the literature. Hulbert and co-workers and Niemi, et al. have described the use of Inverse Nyquist Array (INA) techniques while Herbst has recently described the use of Optimal Control. It is significant that in neither of these three projects was any variable associated with the grinding mill itself (e.g. power or properties of the mill discharge) used in the control strategy. Pauw, et al.do, however, use mill power in their multivariable peak-seeking controller for pebble-mill control. Little work has been published on the use of measurements of the properties of the slurry being discharged from grinding mills, in spite of the fact that milling efficiency is known to be strongly affected by slurry rheology».Moys has recently developed a technique for measuring the dynamic behaviour of the load in the grinding mill. This method involves the monitoring of the response of a conductivity probe mounted in the shell of the mill which gives a measurement of the orientation of the load inside the mill. It was found that the load behaviour was strongly influenced by slurry rheology. In this project a technique was also developed for the measurement of the viscosity of the slurry in the mill discharge. It was, thus, decided that it would be worth investigating the use of these measurements in mill control schemes since direct control of the slurry rheology in the mill must inevitably increase the efficiency and productivity of the grinding circuit as a whole.This will be done by using the dynamic responses measured by Moys and Montini to simulate the behaviour of an open circuit ball mill. While the control of open circuit mills is of little interest, this simulation provides a simple but powerful demonstration of the advantage provided by these measurements, advantages which should apply to closed circuit operation of any mill type (including autogenous milling). Investigations into multivariable control of a closed circuit ball mill are currently nearing completion and will be published soon."

Jan 1, 1987

By Robert B. Parsons

"It is generally felt that flow-through shares face a bleak future under the set of tax rules proposed in the federal government's tax reform white paper. Industry and government circles are beginning to give thought to alternatives to flow through as a mechanism for facilitating equity financing in the exploration industry. Despite suggestions that grants and tax credits may someday be on the table, industry is sticking to its position that there is no substitute for flow-through. Alternatives toFlow-throughProposals in the federal government's tax reform white paper have cast significant doubt on the ability of the mining industry to raise risk capital after 1989by way of flow-through shares. There is serious concern that introduction of the ""cumulative net investment loss"" (CNIL) rules, the phase-out of the mining explorati0! 1 depletion allowance (MEDA), and the Increased capital gains inclusion (750/0 versus 50%, at present) will make the economics of flow-through so unattractive after 1989 that these shares will hold little appeal to most investors. The question might be raised, then, as to what alternatives exist by way of tax or other government assistance that could help the exploration sector.The purpose of this paper is to survey the types of government incentives that could be of some value to explorationists and to the mining industry in general. For the past several years, flow-through has been in the spotlight insofar as incentives to the exploration industry are concerned. Other potentially useful and attractive incentives have been partially hidden in the shadow of flow-through. These incentives, in certain circumstances, can be of considerable benefit, and should not be ignored."

Jan 1, 1988

By D. Laguitton

"Mathematics, process theory, process practice and computer applications are the main disciplines that contribute to developing useful techniques for computer simulation of mineral and coal processing plants. As in any multidisciplinary effort, communication or transfer mechanisms must be developed to facilitate the flow of experience between participants of different backgrounds. These mechanisms include written reports, verbal communications, workshops and transfer of computer programs. The SPOC project at CANMET is devoted to computer simulation and as such has addressed, or will address in the near future, problems inherent to methodology transfer. The first major output of the project was the material balance program, MATBAL2, which has been acquired by over 30 organizations. Program documentation, industrial workshops and summer student programs have been used to effect the transfer. This experience is discussed and the future outlined.IntroductionComputer simulation has become a common tool in many different fields of human activity during the past two decades, as illustrated in Figure 1. The total number of articles abstracted in Chemical Abstracts under the general subject entry of “Simulation"" has been following a pseudo-exponential growth since 1972 and was approaching 5000 in 1980, whereas no such entry was even used prior to 1967. This represents over a dozen papers published daily on the subject and should continue to grow to higher figures. Still, progress toward accepting modelling and simulation in mineral and coal processing has been very slow. It will be shown later that this slow acceptance is a cause rather than a consequence of the limited success of the various attempts made so far to draw unambiguous benefits from simulation applications. The real cause of the difficulties in fully accepting the new methodology lies in the multidisciplinary aspect of modelling and simulation, which does not suit the traditionally conservative approach that prevails in designing and operating large and costly processing plants."

Jan 1, 1982

By Douglas G. Jay

"Transfer points on belt conveyors have long been a source of problems for both designers and users. Conveyors are generally given a low priority in new equipment layout, thus designers are often forced to compromise due to space limitations. Consequently, for this reason as well as for reasons of initial economics, many conveyors are supplied with less than adequate transfer points.Although not intended as a cure-all, a number of existing installations have been modified with the result that spillage has been reduced to a minimum and belt life has been extended. The most striking modification consisted of replacing conventional rigid frame idlers with five-roll catenary idlers.Although catenary idlers can be traced back to the early 1900s in North America, with a patent having been issued in Washington, D.C. as early as May 29, 1907, the practical application of this concept has only recently reached North America. Major installations include applications at St. Lawrence Cement in Oakville and Iron Ore Company of Canada in Sept-Iles, as well as belt conveyors at Stelco's Nanticoke plant and yard conveyors at Syncrude in Alberta. These installations were part of major capital expenditures for new facilities and included complete conveyor systems.However, this article will discuss the use of catenary idlers on existing rigid frame conveyors for the purpose of absorbing the energy of falling lumps, protecting conveyor belts and reducing spillage. We will deal specifically with an installation at Inco Metals Company in Sudbury, Ontario, where approximately 40 five-roll catenary idlers were installed on a 42-in.-wide belt conveyor handling ore located under the railroad car dumper at the Clarabelle Mill. Before-and-after photographs clearly show the tremendous improvement in the cleanliness of the location, and the savings in maintenance costs and extended belt life have prompted Inco to consider modifying other conveyors."

Jan 1, 1982

By X. Cao, B. S. Naik, D. L. Chen, P. Wanjara

AZ31B-H24 Mg alloy sheets with a thickness of 2 mm were friction stir lap welded (FSLWed) at two tool rotational rates of 1000 and 1500 rpm and two welding speeds of 10 and 20 mm/s. The tensile behavior of the FSLWed AZ31B-H24 Mg alloy was then evaluated at low (-40°C), room (25°C), and high (180°C) temperatures. It was observed that the failure load increased with decreasing tool rotational rate and increasing welding speed. The maximum failure load occurred at a tool rotational speed of 1000 rpm and a welding speed of 20 mm/s at all temperatures tested. It was also noticed that at the high test temperature, the samples failed along the sheet interface, i.e. shear fracture. At the low and room temperatures, the samples failed on the advancing side (AS) of the top sheet near the interface between thermo-mechanically affected zone (TMAZ) and stir zone (SZ). The different modes of fracture observed are associated with the hooking defect.

Jan 1, 2014

By Q. Han, W. Dai

Al-Ti-B type master alloys have been widely used in the grain refinement of aluminum since 1940s. The introduction of Al3Ti and TiB2(AlB2) particles reduces the grain sizes down to about 200 micrometer level and makes cold work possible. However, the mechanism for the grain refinement is still not clear, though it is believed that TiB2 in the presence of Al3Ti nucleate a-Al grains in solidification. This paper presents our finding on the formation of (Ti,Al)B2 solid solution, which leads to a proposed theory on grain refinement by Al-Ti-B type master alloys that upon addition into aluminum melt stable TiB2 particles react with aluminum slowly and release titanium into the melt. The titanium thus released in combination with titanium in the melt through dissolution of Al3Ti maintains a transient titanium-rich layer on the surface of (Ti,Al)B2. This layer offers a low crystal mismatch with a- Al and promotes the nucleation of aluminum grains.

Jan 1, 2014

By J. Peck, M. J. Scobie, M. D. Pollitt

"IntroductionOne aspect of current research in the Canadian Centre for Automation and Robotics in Mining (CCARM) involves the automatic identification of different rock types based on particular drill performance parameter responses. In this paper, the four drill performance parameters of torque, pulldown pressure, rotary speed and penetration rate, were measured from an instrumented rotary blasthole drill during field investigations undertaken at the Fording River Mine, Elkford, British Columbia. The variations in these parameters were subsequently correlated with the corresponding rock types using the results from gamma, neutron and core logs in the same or adjacent boreholes. Work to date has sought to understand the relationships between drilling performance parameter variation and rock properties. Using the results of these studies, the present research is aimed at developing techniques whereby classical statistical pattern recognition methods are applied to drill data to permit the discrimination of different rock units. A monitoring system incorporating such a capability would greatly enhance the quality and amount of geological information on a per borehole basis while drilling. This data in tum could be used economically and directly towards explosive loading, geological exploration and reserve estimation. Background and PhilosophyThis work is an extension of equipment monitoring studies at the Fording River Mine. At this site over a two-year period, 5180 m of data was acquired on an instrumented Bucyrus-Erie 60R drill during routine production blasthole drilling. Throughout these studies, a 311mm diameter S8M Security tungsten-carbide tricone bit was used. The mine, located in southeast British Columbia, is a large-scale, open pit coal operation. The means of excavation revolves around a drill-blast-muck cycle and employs a standard shovel-truck system of transport. Four main rock types are present: sandstone, siltstone, mudstone and coal, with average compressive strengths ranging from 10 MPa to 150MPa respectively (peck 1989). However, based on the field studies, very few differences in terms of strength and compositional properties were seen between the sandstones and siltstones at the site. Therefore, they are referred to as sandstone/siltstone in all further discussions."

Jan 1, 1991

By W. B. Evans, D. P. Taylor

"ANFO has two major disadvantages as an explosive low density and no water resistance. ANFO can be blended with more dense, water-resistant explosives to form ""Heavy ANFO"". The use of emulsion or slurry explosives as a matrix is an attempt to correct deficiencies on the basic ANFO while maintaining cost effectiveness.This paper will deal with four main topics.1. Product description, general properties, strengths and weaknesses.2. Technology of ""Heavy ANFO"" , the emulsion matrix concept and the range of products.3. Relative performance and economics in various rock types.4: Current status in Canada and worldwide, and the expectations for future use.IntroductionANFO has been in use for roughly three decades and remains the explosive of choice where conditions are suitable. ANFO has not become the universal explosive - despite its undoubted superiority in cost effectiveness - because it has serious flaws as an explosive. The most serious of these flaws are the low density and absence of water resistance in ANFO. Low density implies a low concentration of explosive energy in a borehole. The amount of energy available can be increased by. adding an energetic material, generally aluminum, or by drilling more holes. Both solutions add considerably to the over-all costs. The absence of water resistance in ANFO is inherent and can only be overcome by changing the fundamental nature of the product. The history of research in the explosives industry since the advent of ANFO is mainly the story of the various attempts to overcome one or both of ANFO's shortcomings.Many technologies and products have been developed to compete against ANFO, among them slurries, emulsion s and the so-called Dense ANFOs (ANFO with an extra nitroalkane liquid sensitizer). None of them was cost-competitive with ANFO so their market penetration has been limited to wet holes or specialized applications. The exception to this result is Heavy ANFO. The aim here was to have the best of both worlds, the high density and water resistance of emulsions or slurries plus the low cost of ANFO. The concept is very simple. ANFO is about 50 % air, roughly 30% in the prills and 700,10 between the prills . The air in the prills provides the necessary sensitivity but the air between them is waste volume. If one fills this volume with a high density, waterproof product, the resultant mix will be denser and more water resistant than ANFO and with very little added cost. This basic concept was invented by B. Clay in the 1970s and is covered by Canadian Patent No. 1 115 959. The water resistance and/or density of the mix can be tailored by changing the emulsion level. Because Heavy ANFO is relatively inexpensive while providing good in-hole densities and water resistance, it can compete successfully against all other bulk products. It competes against ANFO and Al / ANFO by allowing pattern expansion and reducing over-all costs while it competes against emulsions and slurries on price."

Jan 1, 1987

By S. Torizuka, I. Mizushima. Kawasakitohri, A. Ohmori, K. Nagai

Strain (work)-hardening in tensile tests were examined for low carbon steels with various ferrite grain sizes ranged from 0.4µm to 16µm. The steels had microstructures composed of ferrite grains and dispersed cementite particles. They were fabricated through warm caliber rolling with an accumulative area reduction of 93%. Strain-hardening rate at a given strain increased with an increase in volume fraction of cementite particles. The balance of yield strength and uniform elongation for ultrafine-grained structures could be improved by the dispersion of cementite particles. Effects of the cementite dispersion and the ferrite grain size on the strain-hardening rate can be roughly explained by the work-hardening model with GN-dislocation density. Strain-hardening design using dispersed cementites was proved to be effective in controlling ductility of the ultrafine-grained steels.

Jan 1, 2004

By John H. Fowler

"Barytes is one of the major components of drilling fluids used in oil and gas well-drilling. This mineral's close association with the petroleum industry bestows it with a commodity status not enjoyed by many other industrial minerals. Approximately 85% of world barytes production is used as a weighting agent in oil and gas well drilling while the remaining 15% is consumed mainly in the manufacture of barium chemicals, glass and as a pigment, filler or extender.Barytes mining began in Nova Scotia around 1865 and has continued until the present. Currently there are three barytes producers in the province one exporting pharmaceutical-grade barium sulphate and the other two supplying drilling mud-grade barytes to the offshore. Several barytes exploration and development programs are underway with excellent possibilities that Nova Scotia deposits will supply a significantly larger share of the drilling mud-grade barytes used in east coast drilling programs.Currently there is renewed interest in barytes activities in Nova Scotia because of its use as a weighting agent in drilling flu ids used in offshore oil and gas drilling programs.This paper reviews the use of barytes by the well drilling industry; outlines the history of barytes mining in the province, progressing to present-day exploration, development and production activities underway in Nova Scotia; and concludes with the market potential for Nova Scotia barytes."

Jan 1, 1986

By S. C. Tadolini

"Roof bolts are the primary means of roof support in underground mines in the United States. Presently, post installation loads are measured on about 10% of the expansion anchor and combination bolts by using standard torque wrenches that Unit the accuracy of the measurements to about ±30%. No system has been available for measuring the loads generated on full-column resin grouted bolts. Mine roof bolts are long, slender, non-uniformly sized, roughly forged, and placed in a corrosive environment, creating obstacles for researchers trying to utilize ultrasonic reflection techniques to measure strain. A complete measurement system has now been developed by the U.S. Bureau of Mines, Denver Research Center. This system is being used successfully in determining loads measured on expansion anchor and combination bolting systems, examining the transfer mechanics of full-column, resin-grouted bolts, and measuring loads generated on bolts in an underground roadway support system.IntroductionMillions of roof bolts are used each year to provide structural support in underground U.S. metal, non-metal, and coal mines. Approximately 45% of the bolts used are expansion anchor, 45% are resin-assisted combination or full-column resin-grouted, and 10% are friction anchored. The effectiveness of these bolting types is dependent on a number of factors including rock density, bolt length, in situ stresses, rock properties, bolt pattern, installation tension, etc. When implementing expansion anchor and resin assisted combination bolts , installation and post-installation tension, or load, is a major determinant of support quality and subsequent behaviour of the reinforced roof. The method by which these systems carry roof loads is well understood and documented(1,2).The importance of these installation and long-term bolt tension measurements is well recognized and are required in the federal government regulations(3). A statistical sample of the bolts, lout of 4 during installation and lout of 10 inby the last open crosscut, is required to be measured using current torque wrench technology. The disadvantages of this system are the disturbance and weakening of the anchorage and limitations of accuracy to approximately ± 30%. The method by which resin-grouted bolting systems carry roof loads is much less understood, mainly because testing procedures used to evaluate point-anchor systems are not effective on resin-grouted bolts.Due to these problems, the U.S. Bureau of Mines designed a measurement technique that provided a highly accurate, low cost-per- bolt system that led to the development of ultrasonic pulse echo instrumentation. The original system was designed to measure the tension only on expansion anchor bolts. Recent developments and system modifications have permitted measurements on resin-assisted and full-column resin-grouted bolts. The use of these types of support systems has been increasing steadily in underground coal mines.The development of this instrumentation has provided laboratory and field results that help to explain the mechanics and relationships between the applied loads and the interaction between the grouted bolt system consisting of the bolt tendon, grout, and rock."

Jan 1, 1990

By Patrick J. Williams

Outline -An Australian View On: ?IOCG defining features and occurrence ?Variable exploration characteristics ?Extracting value (gold metallurgy) ?Recent exploration experience(case study)

Apr 1, 2005

By R. H. McCorkell

Radon emanation rates. J. and compositions of materials from the Canadian Certified Reference Materials Project (CCRMP) indicate that the fraction of the Rn produced that escapes, E, is usually 1% to 8% and the 238U decay chain is nearly in secular equilibrium. For some Chinese ore standards, E values are higher than f or the CCRMP materials. Standard ore tailings have 2/oPb concentrations higher than expected from their 226Ra concentrations and Rn escape rates (12 - 34%) . Biological materials have E ˜100%, their ash E ˜0%. Pelletizing ore powders at 20 000 lb/in2 reduces J by only 20 - 40% but only 2% of Rn escapes from pressed Li2B4O7 pellets and 0.01 - 0.04% from fused Na2B4O7 or Li2B4O7 discs. Large, difficult-to-explain random variations in J are observed in some situations but several highly reproducible ways of measuring emanation rates have been found.

Jan 1, 1986

By Jean-Luc Beaudoin

"In addition to the actual energy consumed, billing is dependent on the peak load and the power factor. The lower the power factor goes, the higher will be the penalty the consumer pays. The principles of a power factor regulator, the two ways of improving the power factor and methods for calculating the capacitor values required will be described.The rate structure of the utility company is founded on three cornerstones: the energy consumed during a given period of time and two penalties imposed when the power factor is low or the power demand is high. Even though the normal consumption of a customer might be 10 kW, with a peak demand of 20 kW only once a month, the wiring and associated equipment at the input to the customer's plant will have to accommodate this peak demand. The power company has no means of forecasting these demands and cannot therefore provide the additional equipment necessary. So it exacts a penalty, and the customer must take all possible steps to avoid these peak power demands. This can be accomplished by using an automatic peak load regulator which will selectively disconnect the loads which are not essential in the operation of a plant .The principles of such a controller will be described.Principles of power factor regulatorsThe operating principles of a power factor regulator will now be described. It might be asked why the power factor of an electrical installation in a mine, or a factory, should be corrected at all, but there is a simple answer. In addition to the actual energy consumed, the billing is dependent on the peak load and the power factor. The lower the power factor goes, the higher will be the penalty the consumer pays."

Jan 1, 1982

By John Smith

"The RTZ Corporation PLCFrom a company's point-of-view, a good investment decision is one which results in the purchase of an asset that is worth more than it costs. Thus, in order to judge the merit of an investment opportunity, it is necessary to estimate the value of the assets to be acquired.Discounted cash flow (DCF) analysis has become widely adopted by companies in assessing potential new investments. The principle is a simple one: invest in projects which have a positive net present value, and reject those which do not. However, perhaps because of its apparent simplicity, DCF analysis is frequently misused. Good practice in the use of the technique is discussed, together with several common misconceptions.Sound analysis requires sound data; thus, the valuation process relies heavily upon a wide range of specialists to provide the basic input from which cash flow forecasts can be built up. The analyst must maintain close liaison with these specialists from the outset in order to ensure that the data provided is indeed relevant and complete.IntroductionBefore turning to the main subject of this paper ""How Companies Value Properties"", it is of interest to consider first a slightly different question ""Why do Companies value Properties""? In other words, for what purposes are such valuations prepared? Certainly the commonest, and probably the most important circumstance in which a valuation is required is when the company is considering an investment opportunity. This may be the direct purchase of a property or group of properties from a third party, but could also be the opportunity to develop a new operation or expand an existing one.A very simple objective in making any kind of investment is to make our shareholders richer than they would otherwise have been. That is, to make investments whose value to shareholders exceeds the consideration required to acquire them. Thus the investment decision focusses on the difference between an asset's value and its cost.This distinction between ""value"" and ""cost"" is an important one. Study of a company's balance sheet may tell a lot about the cost of this company's assets, but very little about their value. Then again, it is sometimes argued that a business should be bought because this will result in assets being acquired for less than their replacement cost. This merely compares one cost with another, it says nothing about value."

Jan 1, 1991

By Robert B. Parsons

"The Canadian Exploration Incentive Program (CEIP), which was announced by the federal government on May 3, 1988, promises to maintain the viability of flow-through shares as a financing mechanism which has proven to be so crucial to the health of the junior exploration sector. This month, Tax Notes examines, the main features of CEIP, which will come into play on January J, 1989. IntroductionOn May 3,1988, the Honourable Marcel Masse, Minister of Energy Mines & Resources, and the Honourable Gerald Merrithew, Minister of State (Forestry and Mines) announced the Canadian Exploration Incentive Program (CEIP). Under CEIP, the federal government will make cash payments to eligible applicants equal to 30% of eligible exploration expenses. CEIP payments will be available with respect to both mineral, and oil and gas, exploration. In essence, the program will replace the ""mining exploration depletion allowance"" (MEDA) presently applicable to mineral exploration, and the Canadian Exploration and Development Incentive Program (CEDIP) which is presently available to the oil and gas exploration sector.This paper discusses briefly the main features of CEIP insofar as the program will affect mineral exploration. The comments herein are based on the Canadian Exploration Incentive Program Act which received Royal Assent on July 21, 1988, and on a discussion paper which was released by EM&R in May 1988. The bulk of the rules relating to the program will be in the form of regulations which have yet to be finalized. It is understood that EM&R would like to have the regulations in force by October I, 1988, when the oil and gas portion of CEIP becomes effective. (The rules relating to mineral exploration will become effective January I, 1989)."

Jan 1, 1988

By L. M. Ame, W. D. Harwood

"This paper outlines a management philosophy aimed at promoting employee involvement, quality and process improvement at Inco 's Thompson operations. It describes the use of statistical process control techniques, lessons learned and examples of progress.IntroductionThis paper provides an overview of the Manitoba Division's performance through the promotion of greater employee involvement, quality and process improvement. Having learned from other practitioners o f quality management, the Manitoba Division believes its experiences are applicable to all mining and other businesses.The Thompson operation consists of two underground mines, an open pit, a mill, a smelter and an electrolytic refinery. The workforce consists of 2000 members. The main products are electrolytic nickel slab and proprietary nickel rounds. Production levels are currently at capacity in response to heavy market demand.Paralleling much of the mining industry the corporation was faced with six years of decreasing nickel prices (Fig. I). Inco Limited survived by focusing on productivity and cost improvement. Manitoba Division productivity improved 32070 over three years beginning in 1982-the worst financial year in the company's history (Fig. 2). A real unit cost reduction of 20%, net of inflation, was also achieved (Fig . 3)."

Jan 1, 1990

By Gordon Sparks, Lyle Kajner

"An often over-looked component in the assessed value of a mining property is the value derived from the ability of the operator to limit financial losses during adverse economic times (i.e. low market price, high energy prices, etc.) by suspending operations. Overlooking the value of this type of operating flexibility when conducting mine investment analysis may negatively bias the risk profile for the investment by over estimating the investment's downside potential, thereby effectively undervaluing the investment. This paper illustrates the nature of the value of operating flexibility and discusses how it may be explicitly quantified within the context of conducting stochastic mine investment analysis. IntroductionMining properties are evaluated using an array of techniques ranging from simplistic non-discounted payback calculation s to sophisticated, discounted-stochastic simulation. Stochastic simulation analysis is perhaps the most robust mine investment analysis technique as it not only provides an estimate of the expected value of the property, but also quantifies the associated risks (for examples of stochastic mine investment analysis, see: Billingsley and Yaychuk, 1986; Gentry and O'Neil, 1984; Munro, 1977; or Harris, 1970).The quantification of risk is important as it provides the necessary yardstick required to allocate the corporation's resources efficiently. Resources are said to be allocated efficiently when the corporation's expected long-term financial reward is maximized while at the same time minimizing its risk (see Hertz, 1968; or Markowitz, 1952 for in depth discussions on efficiency as it relates to investment policy). The efficient allocation of resources should be the objective of any rational corporation. Therefore, rational corporations should employ stochastic evaluation techniques when screening their investments."

Jan 1, 1992

By George A. Guess

The making of contracts for the purchase of ores is a business which the metallurgist usually understands better than the miner. Companies in the custom ore business often employ an ore buyer who is aware of the class of ore which the smelter needs, and is thoroughly conversant with the business. The miner on the other hand makes ore contracts but seldom, and it is often only after a settlement has been made that he realizes the meaning of the terms of the contract under which he has sold his ores. He has expectations usually greatly in excess of the amount 'net proceeds' shown at the bottom of the settlement sheet. Seldom does the occasional shipper really know his contract. A somewhat similar parallel is to be found in insurance policies. We all have insurance policies; we never know the conditions contained in them until after the fire. The clauses in the policy are for the protection of the Insurance Company. An Insurance Company has no friends.

Jan 1, 1926