Search Documents

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 B. A. Filas

Stabilizing fine coal refuse ponds for reclamation at Monterey Coal Company's No. 1 Mine has been difficult. Entrained water in the stored refuse causes liquefaction as reclamation caps are placed, resulting in additional material requirements than originally projected to stabilize the pond surface. Laboratory results indicate that in-place refuse densities may be substantially improved at No. I Mine by converting from a single-point to a managed slurry distribution system. Increased densities result in improved storage efficiency, less entrained moisture and a more stable refuse mass, thereby providing an improved working surface for reclamation and improved post-closure cover stability.

Jan 1, 1993

By M. Josick Comarmond, John J. Jeffery, John W. Bennett

Oxidation rates of sulfidic mine wastes measured at a range of size scales have been collected from a number of sources. The results suggest that well-designed laboratory columns, under controlled conditions, provide comparable information on oxidation rates to that obtained from field test piles. It has been found in the cases presented that laboratory measurements of oxidation rates of a particular material type can be applied with confidence to the same materials in the field. It is recommended that a further study be undertaken to measure the time-dependence of the oxidation rate for a range of particle sizes and different materials. This study would provide measurements against which models of oxidation rate as a function of time and particle size can be tested, to give confidence in the use of models to describe dump behaviour in the longer term.

Jan 1, 2000

By Andrew Neale

ERIC GUTIERREZ: With that, we'll go ahead with the final speaker of the day, Andrew Neale. Andrew has a master's of science degree in mineral processing from the University of Alberta. He worked at the Falconbridge in Sudbury area, also at Brenda Mines, and then he became part of the Brenda Process Technology group in British Columbia. He joined Freeport in late 1993 in Indonesia, and was involved in process control and automation. He is now the senior manager of metallurgy in New Orleans. He's responsible for designing Freeport's new 100,000-ton-per-day expansion concentrator, which is currently being commissioned. Please welcome Andrew. ANDREW NEALE: With the ongoing explosion in digital computing power, there seems to be no limit to what can be modeled, simulated, and controlled in the mineral processing plant. However, at each stage of development of a control system, it is necessary to complete a cost-benefit analysis for justifying the move to a higher level of control. Incremental improvements in plant performance, while often significant, must be weighed against the costs of implementation and long-term maintenance. This presentation will provide examples of what the author believes are misplaced or misguided process control efforts and make a case for the KISS principle as applied to process control.

Jan 1, 1998

By R. K. Mehta, G. T. Adel

A review of the literature reveals that methods for simulating the coupled behavior of size reduction and liberation are limited to binary mineral systems containing one composite particle class. The aim of this paper is to describe the development of a mathematical model to simulate such behavior for binary and ternary systems containing multiple classes of composite particles. A modified Levenberg-Marquardt algorithm and a finite difference Jacobian are used in conjunction with the developed model and a set of constrained equations to estimate all kinetic parameters. This estimation scheme is validated far a binary ore (sphalerite-dolomite) with five composite particle classes using experimental data.

Jan 1, 1991

By R. Frenette, A. W. Mo, H. A. Hamza

Fine particles present major technical and economic problems to those who deal with solid/liquid separation processes. In the coal industry the problem is compounded by the large amounts of produced fines such as those present in Western Canadian coals. Flocculants in the form of high molecular weight water soluble polymers are commonly considered an effective solution for the enhancement of the separation process. These reagents are relatively expensive especially when considering a low-price commodity such as coal. Optimization of the use of these reagents is therefore an operational necessity. Six polymers were evaluated as to their effectiveness in flocculating a fine coal tailing. Results were compared with those for a reference flocculant, in-use at that time in the washery. It was shown that, in general, flocculants significantly improve the solid/liquid separation process. The ranking of the flocculants as to their effectiveness in settling and filtration indicated that the best flocculants for settling were not necessarily the most effective for filtration. Flocculants that showed the best filtration improvement were generally cationic and those best for settling were anionic.

Jan 1, 1988

By F. F. Peng, D. C. Yang, G. Yanief, E. H. Cho

This study deals with carrier flotation of cerium dioxide, a surrogate of plutonium oxide, which is the major contaminant at the Nevada Test Site (NTS). The objective of this study was to determine the feasibility of using carrier flotation for remediation of the site. In this study, a - 200-mesh fraction of pure cerium dioxide was used. Oleic acid was used as the collector, while calcium carbonate was used as the carrier. Mechanical-cell tests were conducted to float the surrogate from a mixture containing uncontaminated NTS soil, both in the absence and presence of the carrier. It was found that the addition of the carrier drastically enhanced the flotation recovery of cerium dioxide. The flotation recovery of the surrogate increased from 34% to 65% by adding only 0.5% calcium carbonate (-150 mesh). The recovery further increased to 95% by adding 10% calcium carbonate. The flotation method utilizing a carrier of calcium carbonate seems to have a high potential for the remediation of the soil contaminated with radionuclides at the NTS.

Jan 1, 1998

In 1988, at the request of members of the Society for Mining, Metallurgy, and Exploration (SME) Inc., the president of SME formed Working Party No. 79, Ore Reserve Definition. Its mission was to develop guidelines for the public reporting of exploration information, resources and reserves. These guidelines were published in the April 1991 issue of Mining Engineering,(pp. 379-384), and as a document entitled "A Guide for Reporting Exploration Information, continued on an ad-hoc basis until 1996. Working Party No. 79 was then renamed the SME Committee on Re¬sources and Reserves and became a standing committee. Since 1994, the Council of Mining and Metallurgical

Jan 1, 1999

By H Sohn, R. R. Fernández

Microscopic gold inclusions in sulfide minerals cannot typically be extracted by conventional cyanidation. The gold ore must be pretreated to oxidize sulfide minerals associated with gold and to remove other minerals and chemical compounds that interfere in the cyanidation leaching process. The recovery of gold from refractory sulfidic-carbonaceous ores after roasting pretreatment was studied. With the addition of an oxygen-containing gas (e.g., air or oxygen-enriched air), sulfides of iron, zinc. copper and other metals are tramformed into solid oxides or sulfates and gaseous sulfur dioxide at elevated temperatures (e.g., 400° to 800°C). When the sulfides are oxidized, individual particles lose internal volume and become porous, allowing leaching solutions access to the gold. The structural characteristics of the calcine have a strong influence on the eventual recovery of gold by cyanidation. These characteristics are strongly dependent on the roasting conditions and roasting method. The optimum combination of particle size, roasting temperature, reaction time and oxygen concentration in the off-gas was determined for a typical refractory sulfidic-carbonaceous ore from the Carlin Trend in Nevada. The tests were run using a 150-mm laboratory rotating tube furnace and 160- and 200-mm.fluid-bed pilot roasters. Laboratory results indicated that the maximum gold extraction was 92%, with the head and the leach residue containing 5.7 and 0.4 g/t (0.166 and 0.013 oz/st) Au, respectively. The maximum extraction was achieved under the following roasting conditions: a top particle size of 150 yin, a residence time of 2 hrs, a roasting temperature of 475°C and with 40% oxygen (by volume) in the off-gas. Similar results were obtained from circulating fluid bed (CFB) pilot-plant testing. The maximum gold extraction was 90%, with the head and leach residue containing of 5.1 and 0.5 g/t (0. 149 and 0.015 oz/st) Au, respective) v. These results were achieved with the same particle size and oxygen concentration as in the laboratory testing but with the roasting temperature of 500 ° to 525°C and a residence time of 30 min.

Jan 1, 2000

By Anthony G. Fonseca, W. W. Wen

About 45-50% of the coal mined in the U.S. passes through coal preparation plants; east of the Mississippi River this number increases to about 75-80%. Although the cost for coal preparation is worthwhile to some, the coal industry faces the challenges of continuing downward pressure on the price of coal and the impact of new environmental regulations. Coal preparation, as commercially practiced today, is an effective process achieving 75-803 ash reduction, 15-8m trace element reduction, and 85-90% Btu recovery; it is less effective for pyrite reduction (35-70%), and on-line operating time (40-60%), and suffers from obsolete control systems. Methods will be discussed for reducing costs of coal preparation and improving the performance of coal preparation plants. Comments are included on equipment selection, especially for -28 mesh coal, and prep plant operation and control practices. Btu recovery, ash and pyrite reduction, fines processing including dewatering and slurry fuel use options are emphasized. Trace element removal and expert control systems for maximization of prep plant operation also will be highlighted.

Jan 1, 1995

By S. C. Schmelter

The destabilizing effect of water pressure on rock mass stability is examined quantitatively by the finite element method. A coupled code that accounts for the simultaneous effects of rock mass deformation and transient fluid flow is used for this purpose. The traditional soil mechanics assumption of an incompressible fluid is shown to be untenable for the analysis of porous, fractured rock slopes. A Mandel-Cryer effect, a transitory but elevated and potentially destabilizing water pressure following a cut, was not observed.

Jan 1, 1997

By John Ellenberger

The National Institute for Occupational Safety and Health (NIOSH) has collected pillar and span data at 34 stone mines in 10 states to develop pillar and roof span design guidelines for underground stone mines. Pillar, floor and roof conditions each contribute significantly to the overall mine stability. The roof may be stable for a century, or it may appear to be stable but fail with little warning. Clearly, an assessment of the mine roof is critical to the safety of these operations. However, up until now, the assessment of the mine roof came primarily from exposures in roof falls or portal areas. This provides only limited information, and a more proactive approach is needed to assess changing mine conditions. A separate effort was undertaken to examine the roof structure with the use of a borescope. Numerous physical and geologic roof structures were observed with a stratascope/borehole video camera. The objective of this work was to develop a technique of assigning numerical values to features seen within the mine roof and apply those values to formulate a roof stability evaluation. Such features as changes in color, grain size, and general lithologies are readily observed. Minor structures in the rock, fossils and fractures are also readily identified. Each feature may have a variable and site-specific impact on roof quality. A number of mines were visited and a series of holes were borescoped in each mine. The features identified in the roof were classified and potential for roof damage related to each feature was assessed. A process is presented that relates the structures and their locations to provide a numerical value, or roof quality index that can be used to assess roof stability.

Jan 1, 2009

By Roger J. Hornberger, Paul F. Ziemkiewicz, Dirk J. A. vanZyl, Gene E. Krueger, Harry H. Posey, Kim A. Lapakko, Charles H. Buckmam

The Acid Drainage Technology Initiative (ADTI) was initiated in 1995 by federal agencies, the National Mining Association and the Interstate Mining Compact Commission to identify, evaluate and develop cost- effective and practical acid drainage technologies. In 1999 ADTI was expanded through the addition of the metal mining sector group, which began organization efforts in 1998. ADTI addresses drainage quality issues involving metal mining and related metallurgical operations and acid drainage from coal mines, for abandoned, active, and future mines. ADTI is a technology development program. It is not a regulatory or policy development program. The guiding principle of ADTI is to build a consensus among industry, federal and state regulatory agencies. ADTI is focusing these efforts on technology development and technology transfer in the areas of mine drainage sampling/monitoring, prediction, avoidance/remediation and modeling.

Jan 1, 2000

By L. M. English

A basic model was developed to help assess methane control needs for the longwall mining of coal in gassy areas. Rather than depending on reservoir and rock mechanical theories, it uses an empirically determined gas emission rate as an input, and it operates on the assumption that, within a specific region and zone, gas emissions will be relatively equivalent for uniform incremental volumes of gob created by mining. The computer program divides longwall panels into segments, keeps track of the face advance and generates emission rates and volumes for both the entire panel and for individual zones within the panel by summing values for all undermined segments. This model can aid in the determina¬tion of the number, size and location of vertical wells or other methane-control applications that are needed for gob gas control.

Jan 1, 2000

By Henry T. Miller

INTRODUCTION The basic purpose of this paper is to suggest procedures and practices to insure that no employee working in a uranium milling operation receives exposure to radioactive, toxic, or other materials or agents that might produce a permanent, deleterious effect upon his physical health and well-being. This program is also designed to insure that each employee can carry out his assigned duties without risk to his health or to that of his fellow workers. The assumptions underlying this program are by necessity, conservative, with emphasis being placed upon prevention rather than correction or reaction to an undesirable situation. The limits specified-either as Threshold Limit Values (TLVs), Maximum Permissible Concentrations (MPCs), or Radiation Protection Guides (RPGs)--represent both standards of best practice and those of law and regulation. The total program is envisioned as a balanced combination of occupational hygiene and radiation monitoring. This includes surveying, air sampling, personnel dosimetry, bioassay, medical surveillance, epidemiology, and training--all backed by a thoroughly tested and evaluated set of emergency procedures. The program, as presented, is keyed to the results of monitoring, surveying, air sampling, medical surveillance, and epidemiology--it being obvious that no problem can result when no hazard can be identified. The lack of an identified hazard, however, does not negate the need for such a program and prudence suggests the need for routine surveillance programs in the best-designed facility. [The Model Mill] The model mill used in this paper is that presented by the U. S. Environmental Protection Agency in its study of the uranium fuel cycle1. The model mill processes 600,000 metric tons of ore per year into 1,140 metric tons of U308 as yellowcake per year using an acid leach process. Other characteristics of the mill such as location, tailings dam design, number of light water reactors supported, and geographical location are not pertinent to this paper. The usual remote western location of these facilities produce some difficulties in delivering the required occupational medical services and is not within the scope of this paper. The operating lifetime of most mills is commonly estimated as from 12 to 15 years in actual practice; however, the U. S. Environmental Protection Agency estimated a 20-year lifetime for its model. The principal steps in the acid leach process include :2 (a) Ore is blended and crushed to pass through a 2.5 cm (one inch) screen. The crushed ore is then wet ground in a rod or ball mill and is transferred as a slurry to leaching tanks. (b) The ore is contacted with sulfuric acid solution and an oxidizing reagent to leach uranium from the ore. The product liquor is pumped to the solvent-extraction circuit while the washed residues (tailings) are sent to the tailings pond or pile. (c) Solvent extraction is used to purify and concentrate the uranium. (d) The uranium is precipitated with ammonia and transferred as a slurry. (e) Thickening and centrifuging are used to separate the uranium concentrate from residual liquids. (f) The concentrate is calcined and pulverized. (g) The concentrate or yellowcake is packaged in 208 liter drums for shipment. This process is illustrated in Figure 1.3

Jan 1, 1981

By A. L. Boerner

Off-highway tire costs represent a significant portion of the total mining costs in openpit, truck-shovel operations. To extend the lives of tires, the site-specific factors influencing tire life should be investigated Valuable data can be obtained by combining historical operational data captured by a mine dispatch system with detailed tire and maintenance histories. Assuming that failure counts satisfy a Poisson distribution, F-tests can be applied to determine significant deviations from desired or target counts. The methodology developed in this paper can be used to identify the haul routes and loading and dumping zones that have significantly higher incidences of tire failure. Corrective action can then be targeted at these zones by modifying the shovel or truck operator practices; changing the haul route maintenance and clean up practices; or altering the bench, ramp or waste dump design parameters. An example is given of the correlation of tire separation and tire impact failures with haul routes for a fleet of nine Caterpillar 793C trucks in operation at the Chuquicamata Mine in northern Chile. A high incidence of impact failures was observed for the ex pit ore crusher and for tires installed in the left outer rear position on the trucks. The latter was postulated to be due to a preference for drivers to execute right-hand turns prior to dumping. Recommendations were made to revise crusher and dump cleanup practices and investigate the feasibility of super-elevating the surface of dumping zones to reduce ground pressure on the left rear tires.

Jan 1, 2002

By Shamsuz Zaman, Barry Hansen

The major development in the evolution of the conventional subaeration flotation machine has been the steady increase in the size of the individual units. In 1950, large machines were of 1.35 m3 (48 ft3) volume capacity. In 1989 the largest volume capacity operating is 85 m3 (3,000 ft3 ) These improvements have enabled the mining industry to operate successfully in the face of declining ore grades and adverse metal prices. This paper describes the design features and performance characteristics of a number of significant flotation machine designs.

Jan 1, 1989

By Malcolm Reeves

The heavy oil reservoirs of Alberta and Saskatchewan include sequences of unconeolidated silts and fine sands which respond in an unusual manner when subjected to the high temperature and pore-fluid-pressure associated with steam injection and other thermal enhanced recovery techniques. Apparent transient connections are suddenly established between producers and injectore and there is an associated enhancement in oil (and sand) production. These phenomena have been attributed to local fluidization and piping processes which are known to occur in situations where high pore-fluid-pressures prevent the mobilization of intergranular friction. These breakdown processes may be associated with the penetration of tongues of the heated reservoir fluids with suspended sand into the creep sensitive intact reservoir since the viscosity ratios are sufficiently high for viscous fingering instability of the fluid-fluid interface. A program of laboratory tests has been carried out to measure the strength characteristic of saturated oil sands at a variety of temperatures and fluid pressures. These tests suggest, that in common with the coarser Athabasca sands, the Waseca sands have very little cohesive strength and show the characteristic dilational failure response of dense sands. Some special tests, devised to determine the relative ease with which samples can be fluidized, confirm the expected susceptibility of the fine- sand silts. Both piping and fluidization can be readily induced at in-situ reservoir temperatures and pressures. Analysis of stresses around wellbores suggests that fluid-pressure gradients may be sufficient to initiate piping and that backward erosion along streamlines may link producers and injectors. Such pipes may act as well “adits” gathering oil from the heated reservoir and contributing to enhanced production rates. Mechanical breakdown of the reservoir by drilling, injection and production processes provides a consistent possible explanation for the sand-cut response of production wells.

Jan 1, 1986

By Z. Kokesz

The following paper presents the results of geostatistical studies of the selected hard-coal deposits in Poland. Geostatistical methods were applied mainly to the characterization of variability structure of the coal seams thicknesses as well as sulphur and ash contents in the coals. Results imply that the accuracy of coal reserves estimations can be improved if kriging method is applied. Kriging allows predicting more precisely the values of such parameters as thickness and sulphuring content.

Jan 1, 1993

By Kumar Vikram

Rich reserve of prime quality limestone in east khasi hills of India and abundant quantity of low-cost fuel (Natural Gas) in Bangladesh made Lafarge Surma cement limited a joint venture company of Lafarge France and Cementos Molins Spain to envisage an integrated cement plant at Chatak District-Sylhet) a bordering town of Bangladesh. Since April 2006 the single flight 17 km Long Belt Conveyor (LBC) built by M/S Larsen & Toubro Ltd. (L&T), ECC Division an engineering and construction company of India, is feeding limestone/shale to the Lafarge Surma cement plant. This engineering marvel was created on a turnkey basis with technology support of M/S Aumund France

Jan 1, 2008