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By Abid Adekunte

"Engineers and developers have witnessed the growing popularity of deep basement structures as components of urban commercial and residential developments. This is often attributed to inadequate surface parking facilities in urban centres and a somewhat popular belief that underground parking facilities improve both commercial and aesthetic values of urban structures. For many years, diaphragm walls and sheet pile walls have been widely accepted as effective deep excavation support systems for basement construction in urbanised zones. However, these are now being replaced by bored pile retaining walls as preferred earth retention systems of choice on many projects for several reasons, which may include economy, faster installation process, reduced space requirement for machinery and ancillary equipment, flexural rigidity and axial capacities.However, there are complexities associated with the use of bored pile retaining walls on urban developments. These include; limitations due to vertical and horizontal installation tolerances, which is a major issue when wall is required to provide groundwater cut-off for multi-level basements as tolerances are difficult to achieve for deep piles, uncertainty associated with the prediction of wall axial capacity as piles are rarely tested, difficulties in using temporary props as wall restraint due to restricted working spaces in urbanised zones and difficulties in adopting ground anchors as restraint due to the existence of adjacent sensitive structures in built-up areas. Such complexities have resulted in cases of failure, non-serviceability and abandonment of basement construction schemes. Therefore, overcoming the intricacies associated with the application of bored pile walls is becoming a priority to the present day basement engineer.This paper is centred on the numerical modelling, design, construction and monitoring aspects of four recent case histories of multi-level basement and marine engineering construction schemes in the United Kingdom and the Republic of Ireland, which involved the use of bored pile retaining walls. The paper highlights the various customised approaches and innovative novel solutions adopted on the sites, to mitigate risks and ultimately overcome the intricacies associated with the earth retention techniques. Simple empirical equations for developing the geometry of secant pile walls for effective groundwater cut-off are presented and validated. An alternative approach for predicting axial capacities of bored pile walls is also presented; this is shown to be considerably less conservative than a common routine design approach, while also in good agreement with observations made in a recent series of laboratory-based scale model tests."

Jan 1, 2017

By M Noppe, I Glacken

There are many critical nodes along the mine value chain, from orebody to mineral product, and inter-disciplinary input is required to analyse the variability and uncertainty at each node in order to identify and mitigate areas of risk. Mining differs from many other industries in that the variability in the product is dictated largely by the inherent nature of the input material (the orebody). The true characteristics, including the variability of the orebody, are never known exactly and are instead based on estimates derived from sample data. A further difference is that bottom-line gains are largely controlled by world commodity prices, which can vary with time, rather than by local supply and demand issues. Methods for identifying, reporting and responding to this inherently variable raw material are discussed. These include analytical and reporting methods, equipment and software, risk analysis and reality checks (eg reconciliation). Sampling results, mineral resource and ore reserve estimates and economic assumptions are a function of the variability of the orebody. Risk quantification should be expressed as a level of confidence, which takes into account the scale or period over which the risk is being assessed (life-of-mine, annual or shorter production periods) and should convey the likelihood, severity and consequence of occurrence of a given event. The future generation of mining specialists needs to understand the entire mine value chain to better manage risks and maximise mine dollar-value.

Jan 1, 2002

By S. O. Castro, R. E. González, L. E. Velasco, J. M. Van Sint, P. V. Lois

Abstract Several zones with expansive rocks were encountered during construction of two tunnels of the water conduction system for the Chacabuquito Hydropower Plant, located in the Aconcagua river valley of the Chilean Central Andes Mountains, at elevation 1.075 m a.s.l., and 65 km north-northeast of Santiago. The expansive behavior was associated to three different geological features. Firstly with the crossing of important north-south trending faults, with montmorillonitic and caolinitic fillings. Secondly to the presence of zones of rock mass showing a penetrative presence of clay minerals (montmorillonite, illite and caolinite) and penetrative thin veins of ceolites. And thirdly to the hydrothermal alteration of the rock and the consequent generation of clay minerals (predominantly montmorillonite, sericite and minor caolinite). The geological and mechanical characteristics of the expansive rock domains, as well as the field and laboratory reconnaissance and characterization program, are described in the paper together with the bases for design and the guidelines for construction and definitive tunnels support. Resúmè Pendant l’excavation des deux tunels du système d’adduction d’eau pour alimenter la centrale hidroélectrique Chacabuquito, plusieures zones de rochers expansifs ont été découvertes. Ces tunnels sont dans la vallée du fleuve Aconcagua de la Cordillère des Andes du Chili Central, à une altitude aproximée de 1.075m s.m.n. et à 65km vers le nord-nord-ouest de Santiago. Cette conduite expansive est associée à trois différentes caractéristiques géologiques du massif rocheux. Un premier lieu, à l’intersection de plusieures zones de failles, d’orientation nord-sud et subverticales, avec remplissage de rochers désintégrés, montmorillonite, caolinite et sérite. En seconde lieu, a la présence de zones de rochers expansifs, avec des nombreux minces veines de céolite-calcite et aussi des minéraux argileux (montmorillonite, illite et caolinite). Et, dans troisième lieu, dût à la présence de zones d’altération hidrothermale du massif rocheux et la conséquente génération de minéraux de remplacement argileux (surtout sérite, montmorillonite et en plus petit degré, caolinite). Les caractéristiques géologiques et géomécaniques des rochers expansifs, ainsi que la reconnaissance du terrain et les résultats du programme d’essais de caractérisation géomécanique du laboratoire sont décrits dans ce travail, ainsi que les bases de dessin et recommandations constructives pour placement du support définitifs pour ces tunnels Zusammenfassung Während der ausgrabung der zwei tunnels der wasserleitungssystem, um die Chacabuquito Wasserstromzentrale zu besorgen, wurden verschieden ausgedehnte gesteinadern gefunden Die beiden tunnels befinden sich im Aconcaguatal, wo der Aconcagua Fluss fliesst, auf einer Höhe von 1.075 m über dem Wasserspiegel und ca. 65 Km Nord-Nordest von Santiago entfernt, in mittleren Anden Cordillere (chilenische Gebirgskette). Drei verschiedene geologische merkmale dieser massiven gesteine können dieses ausgedehnte verhalten erklären. Erstens, hier befinden sich verschiedene und auch ganz wichtige

Jan 1, 2003

By O. Leuangthong, M. Nowak

"The impact of high-grade data on resource estimation has been a longstanding topic of interest in the mining industry. Concerns related to possible over-estimation of resources in such cases have led many investigators to develop possible solutions to limit the influence of highgrade data. It is interesting to note that the risk associated with including high-grade data in estimation appears to be one of the most broadly appreciated concepts understood by the general public, and not only professionals in the resource modelling sector. Many consider grade capping or cutting as the primary approach to dealing with high-grade data; however, other methods and potentially better solutions have been proposed for different stages throughout the resource modelling workflow.This paper reviews the various methods that geomodellers have used to mitigate the impact of high-grade data on resource estimation. In particular, the methods are organized into three categories depending on the stage of the estimation workflow when they may be invoked: (1) domain determination; (2) grade capping; and (3) estimation methods and implementation. It will be emphasized in this paper that any treatment of high-grade data should not lead to undue lowering of the estimated grades, and that limiting the influence of high grades by grade capping should be considered as a last resort. A much better approach is related to domain design or invoking a proper estimation methodology. An example data-set from a gold deposit in Ontario, Canada is used to illustrate the impact of controlling high-grade data in each phase of a study. We note that the case study is by no means comprehensive; it is used to illustrate the place of each method and the manner in which it is possible to mitigate the impact of high-grade data at various stages in resource estimation."

Jan 1, 2015

By N. Sahay

Open fire in coal mines is one of the most serious threats to miners, as well as to the mine. Open fire can often be effectively dealt with by prompt local action, otherwise it very quickly becomes uncontrollable. In one incident, none of the available open fire control technologies, viz., water deluge and sprinkler systems, high-expansion foam, high-pressure high-stability nitrogen foam, water misting, and ventilation and pressure control techniques, were effective for saving the mine without sealing from surface, since the fuel-rich environment prohibited underground access due to the methane explosion hazard. The authors have developed a methodology for dealing with advancedstage open fires underground by the application of a modified ventilation control technique. It is based primarily on a better understanding of the behaviour of open fires, proper diagnosis of the problem, application of judicious ventilation control techniques, and selection of suitable fire indices for assessing the status of an open fire. This methodology was used to successfully control an open fire in Surakachhar 3 and 4 incline mine Surakachhar, central India. The fire area was sealed underground and production subsequently resumed in record time. The paper discusses the behaviour of open fires, particulars of the mine, diagnosis of the problem, experimentation methods, and the results obtained.

Jan 1, 2014

By Keet B. A, Waid J. S

The Gippsland Basin is one of Australia's most important producers of petroleum products. An inevitable byproduct of the production, refinement and transport of the millions of barrels of oil is thousands of tonnes of waste. These wastes are generated from the wellhead through to the petrol bowser and range from oily brines and coal tars to oil and petrol contaminated soils. The vast majority of these wastes are of a relatively low toxicity and most importantly are carbon-based and biodegradable. Current disposal practices tend to ignore the latter characteristic and inappropriate and/or expensive waste disposal solutions such as landfilling (tipping), incineration or ocean outfalls are the result. A very cost effective and environmentally friendly alternative is land treatment of such wastes. Landfarming, as it is called, has been successfully practiced in Europe for over a decade. Essential features of the system are: ò Application of a predetermined quantity of biodegradable waste in liquid, sludge or highly contaminated soil form, to pre-ploughed soil with concurrent addition of nutrients (N, P and trace elements) and lime to encourage bacterial activity. ò Harmless bacteria already present within the soil break down the carbon-based compounds into carbon dioxide, water and waste heat, WHILE concurrently generating new cells. The breakdown occurs over a period of weeks to months and continues with time with the extremely low levels of the more difficult waste types being the last to disappear. ò Further waste is applied to the soil at regular intervals. The treatment area may be dedicated to landfarming or may be used alternatively for agricultural purposes. Application rates vary but may be as high as 800 tonnes per hectare per year for wastes such as refinery sludges.

Jan 1, 1992

By James M. Riddle

A discussion of frequently asked questions may help individuals trying to interpret subsidence regulations or prepare permit applications. The subsidence permitting process involves just one part of the mass of Surface Mining Control and Reclamation Act regulations. But of the 18 main SMCRA sections, subsidence is critical to the permitting process for coal operators. It's an area in which applicants have had problems interpreting regulations and preparing permit applications. Of 22 western states, only Wyoming, Montana, Colorado, and Utah heave thus far received approval for their mining and reclamation plans. The other states are now involved in the permit application process and will be dealing with SMCRA regulations for the next year or so. Some state programs, when approved, may differ substantially from the federal SMCRA program. But, to be approved, the state programs must be deemed equal to or more stringent than the federal regulations. SMCRA regulations apply to any coal operation "that exhibits surface effects." Thus they apply to surface strip mines as well as underground coal operations. The regulations do not apply to hardrock mining operations. Since August 3, 1977, the government, industry, and the public have wrestled with SMCRA. They have struggled through an initial program with the US Geological Survey; a new agency, the Office of Surface Mining Reclamation and Enforcement (OSM); an interim program; and a "final" permanent regulatory program. Even now, OSM is reluctant to publish formal program guidelines because: •The regulations are still in the process of judicial review. • Some approvable state programs will supersede the federal regula¬tions. • The flexible regulations are open to interpretation, which is desir¬able to maintain. •Guidelines could be misleading until regulations and interpretations are revised and finalized.

Jan 12, 1980

By I R. Souza

At the mining industry, there are several uncertainties that may affect the mobile mining equipment fleet sizing and usage, such as commodity supply and demand, which impacts the mineral price, environmental licenses to allow operations and strategic decisions made by the own mining company. Due to that, it may happen to acquire a mobile mining equipment for a specific site and before it finishes the entire forecasted life cycle, the machine gets idle on that operation and a decision must be made regarding this matter. On large mining companies with several sites, equipment transfer provides a good solution to solve this issue and at the same time it provides operational flexibility and allows to use the equipment until the initially planned working hours. This article presents a method to compare technically and financially whether it’s more feasible to transfer a used equipment or to buy a new one. In other words, we will compare a brand-new machine versus a used one in terms of safety, net present value (NPV) considering both capital expenditures (CAPEX) and operational expenditures (OPEX), technological obsolescence, risks, equipment maintenance reliability and lead times. Although it’s not the main purpose of the paper, it will also be briefly discussed the importance of having a considerable amount of backup equipment to handle low likelihood and high consequence risks that may materialise. This backup equipment portfolio is particularly important to avoid loss of sales and profits in case the production plan changes and it demands further equipment than initially planned to cope with the forecasted production.

Nov 8, 2021

This paper attempts to draw together the experience of over 30 years of research and practice in the United Kingdom on the rehabilitation of abandoned metalliferous mining wastes. The reliance on water when the mines were operating has implications for water quality and the techniques used to restore sites to alleviate the principal impacts of the mines. Drivers of reclamation included concerns about human health from wind blown dust and pollution of watercourses as well as perceptions of dereliction. Techniques of reclamation used involved removal of spoil from near to surface watercourses, capping of spoil, diversion of watercourses, use of impermeable membranes, prevention of surface sinks into underground workings and the use of constructed wetlands. The issues to be dealt with in mine reclamation have become more complex and sometimes diverge. The schemes in the 1990s described have been effective in dealing with pollution from spoil heaps and small but significant adit discharges; however, significant issues, particularly those of large flows of polluted water from mine sites, still need to be dealt with. Although the paper describes the legacy of mining, which largely finished in the late 19th/early 20th century, similar issues but on a larger scale are to be found in more recent mining, for example Eastern Europe. In many of these areas minerals still remain to be won and dealing with this legacy may fall on new mining developments.

Jan 1, 2006

By AIME AIME

MORTIMER ELWYN COOLEY, dean of the College of Engineering and Architecture of the University of Michigan, has been elected president of the American Engineering Council of the Federated American Engineering Societies. This was announced at a meeting of the Executive Board of the Council held at the Cosmos Club in Washington on Sept. 30. Dean Cooley assumes office at once. The new head of organized engineering is a past president of the American Society of Mechanical Engineers and has a long record of distinguished service in education, under the government and in private capacities. He was born in Canandaigua, N. Y., March 28, 1855, and was graduated from the United States Naval Academy in 1878. With his classmate, Dr. Ira N. Hollis, he was ordered to the U.S.S. "Quinnebaug," then fitting out at the Norfolk Navy Yard preparatory to a cruise in the Mediterranean.

Jan 1, 1921

By Elmer A. Holbrook

You moderns think of your field of work as "Minerals Beneficiation"; to me it always will be "Ore Dressing." While I would like to talk with you on the future of ore dressing rather than the past, I cannot do this because I started to work in the field some 56 years ago, and my future is behind me. It is trite to remind you that then, in 1900, one out of every 30 high school graduates went on to higher education. Today, the figure is one in every three. So that, while you have a lot more men to compete with, the field of opportunity has expanded even more.

Apr 1, 1956

By Z. Man, X. Zhu, Y. Xian, Y. Tao

"Fine coal separation has been always concerned. The froth flotation is not efficient in desulfurization because of the low rate of sulfide liberation from raw coal, the natural hydrophobicity caused by sulfur concentration on the surface of sulfide, and the presence of large amounts of middling feed. An efficient centrifugal gravity separator was employed to separate for Shandong –0.5mm high sulphur coal, the partition curve of centrifugal separator was obtained with conclusion that the Ecart probable error value of the separator is 0.095, the imperfection I value is 0.128. Finally, comparing with the coal flotation using progressive release method, the result shows that the effect of the desulfurization with centrifugal gravity force field based on density difference between coal and minerals are much better than that of the floatation which operates based on the difference in surface properties. It provides a efficient technical way for fine coal separation. INTRODUCTION Coal plays the most important role in the energy consumption in China. Although natural gas, wind energy, nuclear power has made great progress in recent years, but the share of coal in the final energy consumption accounts for 70-80%, which is determined by energy storage of China. Under the requirement of environmental protection, the clean utilization of coal resources becomes more and more important, and the need has already been identified. Coal washing and processing plays an important role in the process of high-efficiency and clean utilization of coal. For the separation of fine coal, flotation is a traditional method for effective separation and has been used in large scale industrial applications in coal preparation plant. However, for the separation of difficult-to float coal, especially fine oxidized coal and low–rank coal with hydrophilic surface, flotation is usually inefficient [1-3]. Although many pretreatment methods have been adopted, including grinding, microwave pretreatment, new flotation reagents, the problem of efficient separation has not been completely resolved [4-6]. Thus, an enhanced gravity separation method using particle density difference rather than hydrophobic difference was proposed for the separation of fine coal. Many research results have proved that this is a practical and effective method of sorting. R.Q. Honaker used Falcon C10 concentrator, Knelson centrifugal separator and spiral separator to clean the fine coal with size of 600*210 µm and 210*37µm, the effects of different operating parameters on the separation index was discussed. The results show that the separation density of Falcon can reach 1.6, and the Ep value can reach 0.1-0.15. This paper revealed that for the separation of fine coal with high sulfur content or fine grained content. Falcon has high separation efficiency with low cost. Separation results present in another paper showed that the desulfurization efficiency of inorganic sulfur was better than that of flotation [7-8]."

Jan 1, 2017

By Roger G. Sprague

With the passing of time, changing marketplaces and years of hard service, coupled with new machines, increased productivity, rapidly improving technology, equipment which used to be the latest in modern mining have now slipped into obsolence. Mining companies need reliable, productive equipment in order to compete in today's market. In Western coal mining, as coal seams become deeper, older equipment must be replaced with that which can do the job more efficiently.

Jan 1, 1998

By Waters CA, Happ JV

The debismuthising plant, commissioned in 1980, is based on the Kroll-Betterton process for preliminary bismuth removal with subsequent antimony treatment for fine debismuthising. Bullion flowrate is continuous and the plant was designed to achieve low bismuth lead product at rates of up to 20 tonne/h.Development of the first stage of the operation has enabled reliable operations at 25 tonne/h to be achieved. Thesedevelopments also introduced the opportunity to treat higher bismuth bullion at up to 35 tonne/h when operating the first stage only to produce product lead of 0.029 per cent Bi, meeting the ASTM B29-55 Corroding Lead Standard.

Jan 1, 1985

By K. Adham, T. Buchholz

Debottlenecking of high temperature processes within an existing metallurgical plant can significantly increase the throughput to meet new production demands. Modeling and simulation can help to fulfil that aim through incremental changes and operational improvements, rather than the more expensive option of building new plants and facing new environmental and infrastructure challenges. This paper describes a methodology of how modeling tools can be used to simulate the processing steps, how to estimate their existing and ultimate capacities, and how to determine the minimum cost points for a plant capacity expansion. This technique is presented through a generic description that can be applied to different metallurgical processing studies. We start with heat-and-mass balances, draw a bottleneck diagram, brainstorm capacity increase options, and prepare a cost-capacity curve. Hatch has successfully applied this technique to a number of plant capacity studies, with great benefits to our industrial clients (Adhametal et al. in A Success Path from Process R&D to Commercial Plants, Montreal, Canada, [1]).

Mar 1, 2017

By M. Lebeuf, A. Dumais, C. Farsangi, N. Singh

The Nunavik Nickel project began ramp-up of a new ore body (Expo) in November 2014. This new deposit is significantly more competent than the previous ore type milled (i.e., the plant moved from a feed with a BWI of 12.2 kWh/t to predominantly material with a BWI of 19.6 kWh/t). Despite circuit changes made in advance of the Expo ore ramp-up (grinding media size, mill loading/power draw, and cyclone configuration) the throughput of the plant was bottlenecked at 90% of targeted throughput with multiple stoppages to grind-out the primary mill due to excessive circulating loads. During this time, the secondary milling circuit was under-utilised: therefore the focus for debottlenecking plant production became increasing the product size of primary milling. Given the scope of changes already made to the circuit, it was decided to test the mill in open circuit. The milling changes were modelled using the Molycop Tools package to identify potential problems. In the modelling and plant trial it was apparent that the ball size in the secondary grinding circuit was inadequate, resulting in pebbling. The power draw of the secondary mill was brought up to minimize pebbling and the average ball size was increased. The switch to open circuit primary milling permitted a significant augmentation in plant tonnage. While the overall grinding efficiency decreased using the open circuit configuration, the ability to increase throughput made it the clear operating choice.

Jan 1, 2016

By T. E. Burns

The process engineer is frequently requested to select equipment to separate brine from solids, In many cases, this is a more difficult task than the selection of most other pieces of process equipment because quite often the operation of the various types of debrining equipment cannot be predicted by calculations, One must rely to a great extent upon experience or empirical test work to predict performance - that is to say one must use a practical rather than a theoretical approach. This is not to say that the solutions to liquid-solids separating problems are wholly an art but rather it is to emphasize that the approach demands a fair knowledge of commercially available liquid-solids separating equipment, some background on the advantages and limitations of each type and in many cases might necessitate a fair amount of test work, or at least, a study of performance of equipment on similar applications.

Jan 1, 1966

By Lon Santis, Bill Evans, John Tatom

Debris data from the Department of Defense Explosives Safety Board’s Project ESKIMORE full-scale explosives event test program are compared to quantity-distance (Q/D) standards and quantitative risk analysis (QRA) methods. The ESKIMORE test program involved quantities of explosives ranging from 1,000 to 60,000 pounds detonated in typically sized structures made of metal and concrete. Debris from these events was extensively surveyed and catalogued. The debris patterns from these events show varying degrees of directionality normal to the walls of the structures. These density patterns are overlaid an existing explosives storage site that is comparable to the test conditions. Analysis of the debris patterns in relation to Q/D standards shows that exposures located beyond the Q/D arc but along the normal to walls of potential explosion sites (PES) may have much higher debris density than exposures at the same distance on the corners of the same PES. Analysis of the debris patterns shows that predicted patterns using the QRA tool IMESAFR v2.0 closely match actual patterns. Additionally, IMESAFR based QRA methods are able to quantify the different risk levels of being exposed along the wall’s normal as compared to being exposed on the structure’s corner. Methods and decision making criteria to mitigate risk based on the directionality of PES debris are presented. Copyright ©

Jan 1, 2015

By Anna H. Connard

SUMMARY The discussion focusses on developments in the debt/equity swap market since the Marte project was negotiated in early 1988. It emphasises carrying forward the recent market trends to anticipate the breadth and scope of debt/equity conversions for mine development in the 1990s. Secondary market prices of LDC paper, conversion values and political influences in the host countries and the use of near debt and commodity-based instruments as components of mine financing in debt/equity deals will be placed in the perspective of recent trends and expectations for the future. THE MARTE PROJECT The Marte mine is a gold porphyry deposit in Chile's high Atacama, for which financing was put together at the beginning of 1988. The Marte project was financed by a combination of common equity and loans. It was unusual that the equity infusions were made under different programs. Some of the international equity was infused with fresh funds via DL 600. Other common foreign equity was provided through the conversion of Chilean bank debt under Chapter XIX. On the loan side,. export credits for the import component of machinery and equipment were sought. Local bank financing was negotiated for the remainder of ' the project's anticipated cost. The debt conversion market in Chile was at its apex in terms of interest, activity and government support when the mine financing was arranged. The price of Chilean paper in the secondary market hovered about 62 to 66 cents per U.S. dollar of face value. Meanwhile, the Chilean government was negotiating conversion redemptions significantly closer to full face value. The government differentiated between debt paper exchanged for corporate investors who had sourced that paper in the secondary market, and debt paper held by bank investors who would incur a transaction loss in the conversion. The use of a combined DL 600lChapter XIX equity financing created different yield calculation bases for the various investors. Chapter XIX prevents remittance of profits before year 5 and capital repatriation before year 11. Investors choosing this vehicle have either for a corporate policy in the target project not to declare dividends until repatriation is allowed, or they have to seek uses for the peso liquidity that would be generated through dividend declarations in the early years. However, DL 600 investors face no such waiting period on dividends, nor do they have restrictions imposed on cashing out of the investment before the 11th year. Therefore, any equity structure with components of both investment mechanisms will have inherent differences in cost basis and future income flows for the various participants. This equity imbalance is defensible if the investment motivations of the parties are analyzed: a mining investor using fresh funds looks for a hurdle return on equity calculated at conservative commodity prices, with as much flexibility to reap upside benefits as possible; a mining investor choosing to invest through a debt conversion mechanism will realize a modest short term gain on the conversion, reducing his effective cost basis, but sacrificing some return because of the waiting period on repatriation of dividends. INVESTMENT OBJECTIVES A bank investor exchanging his own paper for an equity participation in a mining project realizes a conversion loss on the transaction. He seeks a risk adjusted acceptable hurdle rate of return to recoup that loss over time. Motivation for the bank investor to take that loss may be derived partly from a strategy to diversify its existing portfolio by internal policy and externally regulated guidelines. The bank will compare yields on its loan portfolio to that country with anticipated dividend flows discounted back at a risk adjusted rate. It will analyze the project with return objectives of yield enhancement over time and with

Jan 1, 1990

The key to the successful debt funding of a new mining project, whether in economically established or developing nations, is the submission of a comprehensive feasibility study. The feasibility study forms the basis from which the resource banker can construct financial models which govern the amount of available funds, the conditions which control the supply of such funds and the time period over which the loan may be repaid. The bank will wish to ensure that the feasibility study is the best representation and confirmation of reality possible because this model is the basis of the loan security package. Thus the study will be vigorously interrogated by independent experts in all its elements including the ore reserve, mineability, metallurgy, operating and capital cost profile, environmental factors and management. A well constructed feasibility study, undertaken by well recognised and respected independent consultants can save the client company a great deal of real and opportunity costs especially in relation to project timing. Once constructed and operating, the mining project may face one or more completion tests in relation to the loans provided. The genetics of such tests often relate to either the ability of the operating company to become solely responsible for the repayment of the loan or to be rewarded by lower interest rates or some other mechanism. Strong professionalism, accessible records, good checking procedures and high quality, competent site management will greatly assist the client company passing these tests. A record of well established technical competence with its bankers may well assist a company in the establishment of a mezzanine loan for the early development of its next project, thus allowing an earlier return of dividends to shareholders.

Jan 1, 1995