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By A. H. C. A. Zimmerman

WE have just heard what must be regarded as a thoughtful, constructive and somewhat painful analysis of the financial function of our industry. While thinking about this, it is interesting to reflect on the conditions which have stunted the growth of the financial side of our affairs. Mining must be regarded as a wealthy business. •while immeasurable grub takes and development budgets have been lost, there can be little argument that a productive ore-body nearly always produces the type of wealth that breeds some extravagance. I recognize that this statement can be attacked from many sides, but an historical comparison with a commercial enterprise involving similar investment will demonstrate what I mean. However, these old times are be-ginning to disappear for a variety of reasons. High amongst these are: ( l) Increased costs of exploration. (2) Remoteness of many new finds. (3) Fixed or declining metal prices (particularly when expressed in constant dollars). ( 4) Constant demands for higher wages.

Jan 1, 1962

By S G. Gemell

"The financial model is an integral component of any project evaluation based on mineral resources, ore reserves and (at least internally) exploration targets. Given the unity of purpose for preparing financial models for project evaluation purposes, the diversity of both format and content of the finalised models is surprising. Many models are prepared by staff or consultants who are comfortable with a particular format that may be used for other purposes, such as budget preparation or financial reporting. It is natural in these situations that the practitioner will take these models and adapt them to the purpose. The end result may or may not succeed in providing a clear, accurate and sufficiently detailed view of the project’s economic viability.When preparing a model, the practitioner should be cognisant of the interpretation and review, or audit, process. The auditor may be a consultant or employee of a bank, potential equity provider or of the project sponsor itself. Depending upon the scale of the project and the level of participation of the entity that the auditor represents, the financial model will be interrogated more or less rigorously. In any event, the end user will require the model to permit easy change of inputs and will wish to confirm that such change is appropriately and thoroughly transmitted throughout.Accordingly, there are some ‘dos and don’ts’ that can be readily applied in the creation of the financial model that will greatly assist the end user, not just in the change of inputs, but also in reviewing the model’s integrity. The less time and effort required by an auditor in this regard is reflected directly in the cost of the review process.CITATION:Gemell, S G, 2016. Financial modelling with the auditor in mind, in Proceedings Project Evaluation 2016, pp 172–180 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 8, 2016

By David M. Koogler

If you are contemplating starting a small coal mining operation there is a good possi¬bility that you can not afford it. If you, have already started, you may be on the road to bankruptcy. If you are a small but well established operator you may be trading dollars, or even dissipating your capital, equipment and other assets. A bleak outlook? Yes! Meant to be discouraging? No! Just a reminder that, with todays costs of doing business, high interest rates, rapidly increasing costs and decreasing sales prices, a small businessman/miner had best watch closely or he will be mired in something worse than a soft bottom - namely a cash and credit shortage, and in too many instances In recent times, bankruptcy. We will not dwell on what happens once you are that far gone, though I could cite a good example. But, let us look at what should be done to avoid such a catastrophe.

Jan 1, 1981

By James H. Boettcher

In the second quarter of 1979, ASL Inc. inquired whether Crocker National Bank ("CNB") would provide $4 million in term loan financing to help ASL acquire the outstanding shares of the S&S Coal Company in West Virginia. ASL had, prior to approaching CNB, sought financing with the assistance of a financial advisor from a number of commercial banks without success. A summary of the initial terms requested by ASL is shown in Table I compared with the actual terms the transaction closed with. It is not difficult to note that the two sets of terms differ significantly. This is often the case when financing requests based on the expectations and vision of a mine developer are juxtaposed with more pragmatic requirements of a commercial bank. The "art" and fun of structuring financing plans for mining ventures (highly leveraged acquisitions or grass roots) comes in working with mine developers to arrive at a final financial structure that meets their objectives and constraints as well as those of the bank or other financial institution providing much of the financing. This article briefly describes the process we went through with ASL beginning with the terms they requested initially and ending with the ones on which the transaction was finally closed.

Jan 1, 1981

By Eric Low

Raising capital by issuing debt or equity is necessary in almost every corporation. In the field of corporate finance, the raising of capital is a heavily-studied topic. However, some of what is studied on this topic in corporate finance is not applicable in the mining industry. There are also many financing options that were created for the mining industry such as flow-through shares, prepaid forwards, and royalty sales. The cyclical nature of the industry makes the risk-return profile of financings more difficult to estimate than in other industries. Additionally, the methods used to assess firm value are different than other industries, as the values of orebodies are not included on balance sheets. For precious metals companies, which are a hedge against most other securities, there are additional complications with determining investor expectations and cost of equity. This thesis puts forth a decision-making framework to explain mine financing choices from the perspective of mining companies. The approach is threefold. First, all of the major equity and debt financing instruments available to mining companies are presented and analyzed. Each financing method is assessed on a wide range of criteria. Next, these concepts are applied in case studies of four companies: BHP Billiton, Barrick Gold, Teck Resources, and Noront Resources. For each company, the overall choice of financing methods is shown and analyzed. The effect of financing choices on the weighted average cost of capital (WACC) is calculated. The final section deals with case studies of individual mine finance decisions during the past two years.

May 1, 2011

By N. R. MacMillan

INTRODUCTION The Bullmoose Coal Project is part of a major development in northeastern British Columbia which comprises a new rail line, a new townsite, powerline, highway, the upgrading of the Canadian National Railway's main line, a new coal port at Prince Rupert and two new coal mines, the Bullmoose mine and the Quintette mine. The total investment by all parties is estimated to be in excess of $2.6 billion and made up approximately as follows : [Table No. 1 $ Millions - Quintette Coal Limited 950 Teck-Bullmoose Coal Inc. 275 Canadian National Railway Company 800 6 British Columbia Railway Company Port at Prince Rupert 280 Townsite, Roads 6- Power ] The new infrastructure is intended to serve not only the Bullmoose and Quintette coal projects but also eventually a number of other coal properties in northeastern British Columbia. The Bullmoose project is structured on a joint venture basis as follows : [Table No. 2 Teck Corporation 51% Lornex Mining Corporation Ltd. 39% Nissho Iwai Coal Development 1 0% (Canada) Ltd. -- 100% ] The mine has a capacity of 2.3 million tonnes of clean coal per year. In the initial years 1.7 million tonnes will be metallurgical coal and 0.6 million tonnes thermal coal. After the first three years of operations the annual production of metallurgical coal will increase to an average of approximately 2.1 million tonnes and the production of thermal coal will decrease to an average of approximately 0.2 million tonnes. At this level of 2.3 million tonnes annual production, the Bullmoose mine has sufficient reserves for at least 26 years of production. History Brameda Resources Ltd. commenced coal exploration in the Bullmoose-Sukunka area in 1969. Teck obtained an option on the Bullmoose coal licences in 1970 and started surface exploration and diamond drilling in 1971. Teck earned a 50% interest in the property, and thereafter expenses were jointly financed by Teck and Brameda. In 1981 Brameda merged with Teck making Teck the sole owner. The initial phase of the exploration program, which was completed in 1975, included 7,200 meters of diamond drilling in 35 holes. During 1976 and 1977, detailed exploration and test work were carried out on the South Fork and West Fork areas where multiple seams close to surfaces indicated the potential for large tonnages of strippable coal. In those two years, work included road construction, detailed mapping and trenching to outline the coal seam traces at the surface, 6,300 meters of diamond drilling in 80 holes, and 300 meters of underground bulk sampling from seven adits. Washability tests and analysis work were carried out on the drill cores and adit samples, and pilot plant washability studies were undertaken. In 1978 and 1979 Teck engineers prepared open pit mining plans and production schedules and Kaiser Engineering was retained to prepare a layout of the plant preparation facility. A feasibility study prepared by Teck's engineering group in January 1982 was the base document used by the Lenders in assessing the technical and economic viability of the project. Property Location The property lies some 650 kilometers northeast of Vancouver, and 87 kilometers south by road from the village of Chetwynd. The Sukunka property (British Petroleum) adjoins to the north, the Mount Spieker property (Ranger Oil Option) adjoins to the east, and the Quintette property is located to the southeast.

Jan 1, 1985

By G. V. Campbell, O. T. Holdsworth, M. G. Nelson

A senior design project is required by all accredited mining engineering degree programs. Often referred to as the capstone of a student’s education, this project is expected to include all the important components of the preliminary economic assessment of a mineral prospect, including orebody modeling, grade and reserve estimation, selection of mining and processing methods, preliminary mine design, access and utilities, environmental compliance and reclamation, and financial analysis. Two of the authors (Campbell and Holdsworth) completed a senior project in 2021. They analyzed the Akie zinc deposit located in Canada. This paper summarizes the economic analysis portion of that project. The two primary objectives of this economic analysis were risk reduction and integration of economics and engineering. Addressing risk is important as risk is one of the primary concerns in mining investments. Risk reduction was the primary concern through the entirety of this economic analysis. Integration of financial analysis and engineering design was the first component of a risk reduction design. This allowed for financial and engineering design to be optimized in conjunction with one another. This produced benefits from both a financial and an engineering prospective. From a market, economic, and financial risk perspective, risk was reduced by forecasting multiple metal price scenarios, and then addressing the Akie project’s economic viability at each price point. Lastly, risk was address through consideration of nontraditional financing options. The project also sought to minimize financial and human capital risk, by proposing mutually beneficial cooperative social relationships and favorable work, schedules. Description of that work is not included in this paper.

Mar 2, 2022

By William L. Young

I think I should let you in on one of Canada's best-kept secrets, if you will promise not to tell it all over the place. Believe it or not, good, honest, enterprising capitalism is still alive and flourishing north of our common border, and I am living proof that capitalism is still working for the little guy. My personal story of mining development in Canada isn't all that rare -- you've probably heard something like it from other areas and other days several times -- but my case brings it up-to-date. I would like to Tell you briefly the history of Northumberland Mines Limited, a contemporary case of individual enterprise getting a mining operation underway. And if I can do it you probably can too.

Jan 1, 1981

By Barrie A. Wigmore

There are two aspects of financing western coal development -- whether there is going to be enough money to finance the prospective large development of the industry, and the specific techniques of raising money for that development. To take the first question of whether there is going to be enough money around to finance your industry, I think it is quite clear that the restrictions on the development of western coal are going to be non- financial. Environmental impact problems are creating the greatest delay in coal mine development, at the moment; but getting enough personnel, mining equipment, railroad equipment, and failure of the Department of Interior to act on leasing federal coal lands all appear likely to create significant bottle- necks in the development of western coal -- larger bottlenecks than financing. Financing appears straightforward for the industry. There are many projections of the financing required to meet Project Independence goals. The National Academy of Engineers estimated that development of 500 million tons per annum of western coal would be necessary by 1985 to meet the Project Independence goals which might require $20 billion of capital spending. It is generally agreed that 500 million tons a year is not a realistic possibility. Carl Bagge?s estimate of production of 250 million tons a year by 1983 appears a more reasonable projection. Development

Jan 1, 1976

By Robert W. Row

The run-of-mine coals in the U.S. being fed to coal cleaning plants have become increasingly finer due to the adoption of modern, mechanized mining methods, and economics are dictating that finer fractions, as well as the coarser fractions, be cleaned. Traditional dewatering methods (vacuum disc filters and centrifuges) are proving inadequate for preparing fine refuse for disposal or fine coal product for downstream handling. The Electric Power Research Institute has been supporting research into the nature and limitations of mechanical dewatering, and novel ways of improving it. The efficiency of various silicone-based chemicals at aiding dewatering was investigated, and it was shown that the final moisture content of hydrophilic coals after vacuum Filtration could be reduced by 1 to 5% with up to 40% increase in filtration rate by addition of one of several of these silicones. EPRI also has an on-going program at its Coal Cleaning Test Facility to investigate the performance of the Larox pressure filter in comparison with that of the disc filter and solid bowl centrifuge. While improvements to the dewatering performance currently being obtained in existing operating plants by such means are achieveable, a fundamental study has shown that, regardless of changes in operating conditions, there may be a limit to the lowest cake moisture content attainable by mechanical dewatering of a given sample of coal fines. Determination of this limit for a specific coal would be useful in designing facilities to dry and handle it.

Jan 1, 1984

By T. E. Durney

In the Fall of 1987 The Wellmore Coal division of The United Company installed a fines separation circuit in its #20 plant near Big Rock, Va. The addition of the fines circuit included a bank of classifying cyclones and two flotation units; one a conventional 4 cell, 34 m3 Wemco cell, the other an 2.4 meter diameter by 7.6 meter tall, 28.3 m3 column flotation cell. The new fine coal separation circuit is depicted in Figure 1. The column flotation cell is manufactured by the Deister Concentrator Company, Inc., under the trade name Flotaire. The Deister Flotaire column cell utilizes a counter current flow arrangement and a different means of generating air bubbles than that of conventional mechanical flotation cells found in coal processing plants. Other features include diffusers for additional air supply and a froth washer. This cell is one of the few commercial scale column cells processing coal.

Jan 1, 1990

By M. E. Holuszko

A research program has been carried out at the Mining Department of the University of British Columbia to study the effect of wettability of coal on its handleability and bulk density. The effect of moisture content on the bulk density of coal was found to be more pronounced for hydrophilic coals than for hydrophopbic ones. Altering wettability of coal surface leads to different effects of moisture on bulk density. The samples were studied at different fine fractions content, and it was shown that there was no effect of increased content of fines on the bulk density for hydrophobic coals, while for hydrophilic coals this effect was very significant. It was shown that the moisture content at which the lowest bulk density was reached coincides with the critical moisture content for studied samples, as determined from handleability tests using Durham Cone method. This critical moisture is the moisture content at which a sudden deterioration of coal handleability occurs. Based on the bulk density and handleability tests, the flow theory of moist coal is proposed.

Jan 1, 2006

By D. C. Hatch

At the MacIntyre Development of the Titanium Division of National Lead Company a magnetite-ilmenite ore together with gabbro-anorthosite waste is mined from an open pit by shovels and trucks. The ore from the pits is trucked to ore stockpiles for blending ahead of the crusher and to free the mine from crusher delivery schedules. The ore stockpiles are blended to yield a 16.5 to 17.0 % TiO, crusher feed. This requires mining on an assay cut-off rather than a visual grade cut-off. Highly mineralized ore runs from 20 plus % TiO2 and 30 plus % Fe to 15 % TiO2 and 40 plus % Fe as the ratio of ilmenite to magnetite changes. There are three major ore types in the present pit with magnetite ratios varying from about one to one up to three times as much magnetite as ilmenite. Ilmenite and magnetite together liberate from gangue down to about 10 mesh and this is the basis of the magnetic cobbing. Below 10 mesh the ilmenite and magnetite start to separate and ore cobbing pulleys will not hold the ilmenite.

Jan 1, 1968

A. L. BLOMFIELD, ? Colorado Springs, Colo. (written discussion?).¬I congratulate the author on bringing out a paper of real service to the profession. His contention of uniform size in balls is borne out by my own experience; in coarse crushing at the Golden Cycle in 6 by 6-ft. (1.8 by 1.8-m.) ball-mills we unquestionably gain by screening out the small balls once or twice a month. The point of gaging the ball size to be used by the uniformity of screen sizing is of particular interest. The necessity of sufficient return feed from classifier to the ball-mill is sound and clearly shown. In connection with this, I wish two further points had been gone into as thoroughly: (1) The effect of the quality of classification. In general, it is true that the smaller the per cent. of undersize in the feed the more effective is the mill's work. This is true on a bucking board, in tube-mills, ball-mills, and grinding pans. Given the possibility of returning. a full-feed load to any mill, it has been my experience that the effective work in the grinder is almost proportional to the quality of the return feed. (2) Again speaking generally, the shorter the tube-mill the greater is the quantity of return feed necessary to keep it loaded. The classification thus keeps the oversize in the mill more free from finished product and thus the crushing more efficient. It is very easy to overload any long mill with too much return

Jan 4, 1919

By J. M. Karpinski

The need for standard test methods in the minerals beneficiation industry is growing with the increasing complexity of our processes and the more stringent requirements imposed on the quality and uniformity of our products. Although solutions of our problems have never been easy, they will become increasingly difficult to achieve unless we can develop a reliable and reproducible set of test methods. Historically speaking, our need was greatest for methods of chemical analysis. As these methods developed, they improved our ability to determine the grade of ore and measure the effect of our beneficiation attempts. The entire concept of grade and recovery is only as old as chemical analysis. Then came physical measurements. Each new concept in minerals beneficiation was related to certain properties and required corresponding test methods: specific density for jigging, magnetic susceptibility for magnetic separation, and tumbler strength for pellets. And associated with each process was the need for size determination. Size measurement is probably the first physical test ever conceived, and yet we are still improving on it. Dry sieving was quite acceptable for direct-shipping ores, but we had to go to wet sieving to control pelletizing and flotation. Subsieve analyzers have extended our routine measurements to the subsieve sizes, hut not below a few microns. As we all know, the solution of slimes- beneficiation and pollution-abatement problems is hampered by the lack of reliable and reproducible test methods in the fine-particle size range.

Jan 1, 1971

By The Staff

THE object of the work was to increase the capacity of the plant and, if possible, to reduce costs of the actual unit grinding while doing so. The accompanying assays of an infra-sizer analysis of the cyanide tail (Table l) illustrate the problem in hand. The cyanide tail is a combination of two products, gangue and FeS2. The assay alters by virtue of a change in gold value due to grinding and the relative quantity of FeS2 in the sizes, which itself varies with the grind. The disposal tail is the residue after the cyanide tail is scavenged by flotation, most of the pyrite being removed for roasting. It presents a somewhat different problem, since grinding gangue is all gain, but -10 micron FeS2 does not float nearly as well as + 10 product. This results in compromise in the final size to be aimed at. Extra grinding has hardly any appreciable effect on the gold extraction from the FeS2. (See Milling Investigations Into the Ore as Occurring at the Lake Shore Mine; Trans. C.l.M.M., Vol. XXXIX, 1936).

Jan 1, 1940

By The Staff

WE were requested to make a digest of our original grinding report, Fine Grinding Investigations at Lake Shore Mines. This digest is much easier to read than the original report, but it lacks the experimental 'evidence' found in the first report which, in many cases, is much more interesting and educational than the conclusions derived from it. In the course of rewriting the paper, we noticed several new angles on the test data which had not occurred to us previously. From the data included in the report and other tests not published, calculations were made which indicated a line of new test work. These tests, among other things, more than suggest a technique for designing the length of mills, the position and number of classifiers, and the total loads a mill should carry.

Jan 1, 1941

By G. Caetani

I. INTRODUCTION. WE owe to the courtesy of Mr. R. M. Raymond, Manager of the El Oro Mining & Railway Co., Ltd., the permission of publishing in this paper the results of a series of experiments and tests made in view of determining the economical limit to which the fine grinding of the ore by tube-mills could be carried on. For the sake of clearness, the following definitions are given of certain terms used in this paper, as well as of the units and screens in the experiments. Slime : In a general way " slime" is that mill-product, of which from 90 to 95 per cent, will pass a 200-mesh screen (0.067 mm. aperture), and which is treated as one class of material in the El Oro cyanide-plants. As a screen-product, slime constitutes all material that *ill pass a 200-mesh, screen. In sizing, the following products are distinguished:- Coarse Sand : That material remaining on a 100-mesh (0.111 mm. aperture) screen. Fine Sand : That passing through. 100-mesh and remaining on a 200-mesh (0.067 mm. aperture) screen. Slime: That passing through 200-mesh. Fines, which pass through 200-mesh and settle in 30 seconds, and silt, which does not settle in 1 minute. Sand-index : The number proportional to its total fineness considered from the economical point of view, as explained on page 93. Absolute extraction : The percentage of values actually brought into solution. Actual extraction: The percentage of values actually brought to the ziuc-boxes. Units : Dollars, U. S. Currency; pounds; and short tons (2,000 lb.). Gold is valued at $20.67, and silver at $0.50 per ounce. Screens : In the sizing-tests the screens used were:¬ Mesh (per 1 in.), . 24 30 40 60 80 100 150 200 250 Aperture (mm.), . 0.740 0.515 0.424 0.250 0.159 0.111 0.090 0.067 0.058 Strengths of solution : Strengths are expressed in the percent- . age of KCN contained, though the sodium cyanide, which is

Jan 1, 1906

By A. G. Doll

"Many power-based grinding models exist, and most operators are familiar with Fred Bond's ""third theory"". Bond's model is most commonly used to describe primary and secondary grinding to product sizes above, for example, 100 µm. Operators sometimes use Bond's equation to describe grinding in situations where it is not appropriate, such as fine grinding below 50 µm. Using an alternative model would be a better choice in this situation.Bond's equation is one in a large family of models. Related equations better suited to fine grinding include the “signature plot”, Von Rittinger's model and Charles' equation. These models have a similar form to Bond's and can be fit to industrial regrind mills and laboratory tests using the simple regression tools in the charts of computer spreadsheets. Operators will find that fine grinding calculations are both easier and more accurate when using the alternative equations to fit their regrind milling surveys or when performing laboratory regrind mill scale-up for plant design.None of these models are new: Charles' equation was published in 1957 and Von Rittinger's model was proposed in 1867. A quick refresh how to apply these equations can turn these oddities from the undergraduate curriculum into useful tools for plant optimization. They can be fit to any type of mill including stirred and tumbling ball mills.IntroductionBuilding a case for fine grind modelling requires reviewing some theory before building a framework for doing fine grinding calculations. The actual calculation procedure recommended is easy and can be applied by plant metallurgists. Don’t be frightened by the theory; the end result is reasonably simple.The observation that mineral breakage is related to the absorption of energy is usually attributed to Von Rittinger (1867). Lynch and Rowland (2005) describe that the ability to empirical test and calibrate energy models of breakage didn’t exist until the widespread adoption of electric motors in the mining industry during the 1930’s and 1949’s. A series of technical papers published by the Allis Chalmers company during the 1940’s demonstrate that they were attempting to do such a calibration using Von Rittinger’s model which is usually stated as: “the energy consumed in the size reduction is proportional to the area of new surface produced.”"

Jan 1, 2017

By M. Gonzalez Fernandez

"If the final goal of metallurgy is the extraction of metals from a given ore, everyone knows that this achievement relies on many separation steps involving much more than a biphasic material made of metal and gangue. Nevertheless, still today, most of the design and follow-up of industrial processes only consider metal grades; in best case metal grades per size class. Working with such heterogeneous material, made of several minerals, with different grain size and texture, implies to consider finer ore models to be able to predict the behavior of material and the subsequent operation performances. Analytical tools are now available to provide such relevant and accurate data which are applied in geometallurgy. To achieve a true geometallurgical approach for process design, but also for optimization, accurate process simulation absolutely needs to combine these fine ore models with the corresponding unit operation models. Based on generic, but configurable, criteria of description and a hierarchical approach, the material modelling tool embedded in the USIM PAC process simulator provides the necessary flexibility to describe any type of ore with almost no limit in the level of details and associated physical properties that can be met in the mining industry. The simulation engine and the mathematical models of unit operations are designed to manage such a diversity of material modelling. The paper present various ore models and some of their applications in flowsheet simulation. It proves the interest of this detailed and advanced approach to accurately predict plant performances. INTRODUCTION Process simulation used for process design and optimization requires accurate unit operation modeling. During the last decades, main efforts of the different teams developing software simulators have been dedicated to those models for comminution and physical separations such as flotation or gravity concentration (Kojovic et al., 2012, Soni and Yoon, 2014). In most case, the ore is modelled with a size distribution and metal or mineral grades. A water phase is considered for wet processes. The association of unit operations and such material models generally allows, after some parameters adjustment, to achieve good agreement between experimental and simulated data. The use of the obtained simulator to test alternative configuration of circuits or settings of equipment devices can be accurate enough as far as the ore processed is close to the ore used for simulator adjustment. However, when the ore gets very different grades, coming from different mineral proportions or grain sizes, the simulation results can be of poor accuracy. Because any physical separations such as gravity, magnetic or flotation, do not sort metal and gangue but particles, made of minerals, containing metals, the only way to be accurate enough for allowing extrapolations, is to model particles. The phase model tools embedded in the USIM PAC process simulator gives this possibility. However, as such level of details are not always available for analyses, the tool has been designed with a high level of flexibility, to adapt the model to the available data. In this paper, the principles of this conceptual modelling tool are presented, and some application cases illustrate the material model flexibility and its interest."

Jan 1, 2018