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By Carl L. Renzoni

INTRODUCTION This paper defines equity as the issuance of a permanent interest in the business on a broadly distributed basis. As such, it excludes the issuance of equity to either a merchant bank or to another corporation. Nearly twenty years ago the equity markets were very simple: The instruments used were primarily common shares, convertible debentures or convertible preferred shares. Another equity-type option often used, especially by junior companies, was the sale of joint venture interests. Issue sizes were generally in the order of $25 - $100 million and issues were syndicated primarily in North America and Europe by one or two investment dealers. Mining corporations today benefit from a market with much more depth. Issues are syndicated by dealers on a truly international basis, and issue sizes now often range up to $300 million. Moreover, dealers are now willing to take significant risk in buying the issues for redistribution. This discussion of trends in equity markets will encompass: 1) common shares 2) warrants to buy common shares 3) convertible debentures 4) commodity backed instruments A review follows of events that affect the mining industry and investment dealers as they have a bearing on the equity markets for the metal producers. FACTORS AFFECTING THE MINING INDUSTRY The current business cycle, up to October 1987, had been characterised by a buoyant stock market and depressed base metal prices. Mining companies entered this period with weak balance sheets and little prospect of cash flows meeting capital needs. The issuance of equity and the sale of assets were used extensively to reduce debt to manageable levels. During this period, the relative high price for gold, and more important, the very high earnings and cash flow multiples afforded to gold producers, caused companies to target gold as the only game in town. The need for capital to acquire and develop gold properties prompted an unprecedented volume of equity issues. (Burns Fry led or co-managed over $1 billion of mining equity issues per year during this period). This high demand for equity capital by the industry prompted an increase in the use of equity instruments, such as commodity backed instruments. In addition, government tax incentive programs in Canada, such as flow-through shares, allowed smaller companies to raise significantly more equity than would otherwise have been possible. Over $1 billion in flow-through equity was raised in 1987 alone. The abundance of flow-through capital in Canada made it easy to form a new company. One flow-through share fund developed a system of providing the working capital required for a company to be eligible to receive flow-through share capital so that an entrepreneur required only a mining property to get started. Many new companies were formed and several flourished in a buoyant stock market environment to the point that market capitalizations grew to $100 million or more. The current period is in stark contrast to that before October 1987. The equity markets are generally available to the resource industry only on a window basis and only for senior companies and for special situations. The industry is benefitting from buoyant metal prices, and bankers are anxious to provide debt capital. Investment dealers previously processing several equity issues

Jan 1, 1990

By F. M. Jenkins

Longwall mining systems are used to mine approximately 50 pet of the world's total underground coal production. Single entries are the predominant method of longwall development in Europe and Asia, where mining conditions are more severe than those encountered in the United States. During the 1970's and early 1980's, the U.S. Bureau of Mines and the U.S. mining industry invested nearly $20 million in single-entry and related research. This report reviews the accomplishments of single-entry research in the United States and describes two U.S. single-entry field projects: the Sunnyside single-entry project in central Utah and the tunnel-boring project in northern West Virginia. Also discussed are a single-entry study conducted by North American Mining Consultants (NAMCO) and a single-entry design study conducted by Ketron, Inc. This Bureau report compares the resulting technology with European counterparts to further assess the utility and efficiency of U.S. systems.

Jan 1, 1990

By L. R. McCullough

To compete in Today's Market, Mine Managers have two, often conflicting tasks. They are to improve productivity, allowing the mines to compete in our world markets and to improve the environment in which our miners must work. To Maintain and improve the environment to ever increasing acceptable levels requires monitoring. In years passed this required considerable labor, which was provided by the Ventilation Department. They continuously took manual samples using hand-held instruments, sampling gas level such as CO for fire and methane for explosive risks. In addition they took continuous air velocity readings with hand-held instruments which allow them to calculate the ventilation air movement in each area of the Mine. This manual gathering of information was not only expensive and slow but marginal at best. It was marginal because the gas sampling was sporadic rather than continuous, as sample reading taken in one part of the mine would likely not be repeated for another 8 hours. If problems did occur, they likely went unobserved until they reached crisis proportion.

Jan 1, 1990

By R. Kahrger

This paper is written to convey the latest developments in compact bucket wheel excavators (BWE's) operating in medium-hard rock and will serve to indicate that BWE and compact machines in particular do in fact have application in materials other than loose sandy soils and soft rock. A recently run extensive three month field test in hard marl, which was previously considered too hard and difficult to be handled by a BWE, is used as an example to explain some of the design requirements and problems associated with digging harder materials.

Jan 1, 1990

By William J. Neely

Augercast piles are formed by drilling a continuous-flight auger into the ground and, on reaching the required depth, sand-cement grout or concrete is pumped down the hollow stem as the auger is withdrawn. The sides of the hole are supported at all times by the soil-filled auger, eliminating the need for temporary casing or bentonite slurry. The augercast piling method is fast and economical; there is no vibration, very little noise and, if executed properly, no ground displacements during installation. The method is well suited to sands which are easy to drill and are readily transported up the auger. Relatively little attention has been given to augercast piles in the literature which might be part of the reason for the considerable variations in local practice, building code requirements and design methods. The purpose of this paper is to discuss some of the features of augercast pile installation that are known to influence both the structural and geotechnical capacity of the pile, to evaluate several empirical design methods and to look at some important aspects of quality control of augercast pile installation.

Jan 1, 1990

To generate a most profitable ultimate pit limit is generally the first step in mine design. This paper presents a new graph theory oriented, optimum ultimate pit limit design algorithm which will maximize the total undiscounted net profit. This algorithm performs much better than the well known Lerchs-Grossmann algorithm, in terms of the reduction in computation time and computer memory requirements. This algorithm operates on many directed trees in a graph, where each vertex in a tree represents a block in the mine model. The formation of each directed tree is based more on the ore-waste support concept than the geometry constraints alone. The general procedures of the algorithm, programming considerations and two case study results are discussed in the paper.

Jan 1, 1990

By J. W. Leonard, D. A. Newman

By using physical and chemical means to increase the bulk density of newly broken coal freed from the mine face, the potential to improve coal mine productivity is significantly enhanced. It is estimated that by increasing bulk density, greater tonnages can be placed in fixed volume scoops and shuttles cars to improve production by as much as 10% to 20%. Such improved packaging to achieve new levels of volumetric efficiency might require only small and easy to implement changes to present downstream mining operations. Opportunities exist for improving broken coal bulk density from the moment of breakage, during transport across the continuous miner or loading machine, during discharge into the haulage unit, and after placement in the haulage unit. Physical/chemical methods for broken coal compaction in mobile, fixed volume units in underground operations are discussed.

Jan 1, 1990

By Y. C. Kim

This paper describes the implementation aspect of a blast hole kriging system which has been developed for the purpose of daily ore-waste control in an open pit mine. The primary goal of blast hole kriging is to improve the ore-waste delineation procedure. A complete computer program package called Blast Hole Kriging (BHK) System was developed for IBM/PC AT or XT computer, using Fortran language and supplemented by a few Assembly language routines for bit-map manipulation. The emphasis of this paper is on the implementation aspect of the developed system. For this reason, the requirements for practical implementation and the system design considerations are discussed in the paper, as well as the main features of the University of Arizona's BHK System.

Jan 1, 1990

By C. A. Carroll

In February of 1989 the Mission Complex of ASARCO Incorporated completed an expansion of its concentrator, raising the base mining rate from 25,900 TPO (28,500 STPD) to 37,200 TPO (41,000 STPD). The expansion was accomplished by extending the twelve existing Mission ball mills in length, by installing the grinding circuit from Asarco's idled Sacaton Concentrator along with various auxiliary equipment, and by modifications to the flotation circuit and water systems. This paper will give a brief history of the consolidation of the ore body which made the expansion possible and explain the various parts of the expansion.

Jan 1, 1990

By Kazue Moriya

At the 1980 TMS-AIME world symposium, Dr. Davey mentioned that the traditional lead blast furnace is now being challenged by direct smelting processes. In the copper smelting field both the blast furnace and reverberatory furnace are also disappearing in favour of direct smelting processes such as Outokumpu flash smelting, Mitsubishi continuous smelting, Noranda furnace, Inco furnace and so on. Those new processes all have the following in common: (1) High degree of mechanization (2) Metallurgical reactions carried out in closed vessels (3) Application of oxygen and/or oxygen enriched air (4) Minimization of handling materials and gaseous volume (5) Minimum energy requirements (6) Removal of workers from near the furnace (7) Reduction of emissions of harmful gas to meet environmental regulations. (8) Improvement to the work place environment to avoid occupational hygiene hazards. Direct and continuous smelting of powdered concentrate in one vessel was a romance of the metallurgist since early times. However as mentioned above, in the copper field this objective is being achieved in practice. The industry however can't deny that the serious and severe regulation of environmental pollution in every country was the prime motive for the modernization of smelters. In early days, to meet regulations, it was anticipated that many economic difficulties such as higher capital and energy costs and extravagant use of resources and waste disposal would be the result. "Turn a misfortune into a blessing" is an old saying which reveals the current thinking and reacent developments in the nonferrous industries. In the last ten years in the lead smelting field, about two decades later than copper, commercial scale smelting using new furnance technology has started. The KIVCET process and QSL process, which is flash smelting and bath smelting respectively, are becoming major competitors. They will be sure to upgrade their processes to remain economically and environmentally viable in the comming decade.

Jan 1, 1990

By J. Alton Burks

When acoustical materials are used in a mining environment for noise control purposes, they are subject to environmental deterioration from hydraulic fluid, moisture, and dust. These and other factors can cause physical degradation of the material, which can lessen its ability to absorb sound. In this study, the Bureau of Mines measured the sound absorption properties of 16 different acoustical materials after 4 sample treatments: (1) being kept clean and dry (as received from the supplier), as a control or reference standard, (2) immersion in water and draining, (3) immersion in lOO-pct-petroleum-type hydraulic fluid and draining, and (4) exposure in a coal mine. The last three treatments were used to approximate the type of physical degradation that can be experienced in actual use. The impedance tube or standing wave method was used to measure the normal absorption coefficient. It was found that the absorption coefficient of most materials was adversely affected by the retention of either oil or water, with oil having the greater effect. The only class of materials that was affected by neither oil nor water was neoprene foam.

Jan 1, 1990

By L. Xu

Since the establishment of the standard dust concentration of 2 mg/m3, a strong effort has been made by mining engineers and researchers to provide better dust control equipment and procedures for underground coal mines. Particular areas of success have been control of dust generation by better coal-cutting strategy, better design of water sprays for dust suppression and air movement, use of scrubbers, and improved design of face ventilation systems. A drastic improvement occurred over time such that the average dust concentrations for continuous miner operators dropped from 6.5 mg/m3 in 1968 to 1.3 mg/m3 in 1980 and for auger, cutter, longwall, and roof bolter occupations from 2.7 mg/m3 in 1973 to 1.6 mg/m3 in 1980 (Niewiadomsky, 1983).

Jan 1, 1990

By A. J. Plumpton

Centrifugal air classification and li-quid-phase sedimentation are the principal methods of industrially sizing materials of dimensions smaller than those handled by screens. Increasing application of materials such as composites and high performance ceramics has furthered the need for closely-sized, fine, industrial mineral and synthetic products of controlled properties. Sedimentation can be used to separate very small sized particles but introduces problems of liquid-solid separation, de-agglomeration and drying. Some of the advantages and limitations of centrifugal air classification will be discussed and laboratory and plant measurements using centrifugal machines will be presented to support the discussion.

Jan 1, 1990

By Zuoren Huang

The flowsheet of the hyd.rametallurgical zinc plant which is in use at Zhuzhou Smelters is described. The principal features of the process are fluid bed roasting, continuous calcine leaching, solution purification, zinc electrolysis, electrolyte cooling, and finally, the melting and casting of zinc forms. The Zhuzhou process for the flotation of silver from the leach residue collected on the Moor filters is described. The technical details of the process are outlined and the operating data are analyzed. The flotation facilities are described in detail and concentrate grades and recoveries are presented. The waelz process is used to concentrate In, Ge and Ga remaining in the leach residue after silver flotation. These elements subsequently are recovered by selective leaching in sulphuric acid, and details of this operation also are presented.

Jan 1, 1990

By Dan A. Mackie

Continuous leaching of precious metals ores in a vat is possible using a jigging technique. This patented method promises to be competitive with heap leaching, particularly in northern climates, difficult terrain, high precipiptation regions, and environmentally sensitive areas. The paper discusses test work to date, plans for pilot plant testing and basic economics

Jan 1, 1990

By F. Alsobrook

Industrial minerals are receiving increased attention by metals, coal and other companies seeking to diversify and stabilize earnings. Each industrial mineral has a unique set (and sub-sets) of business dynamics, however, and the diversity can present a bewildering maze to the corporate planner. Shrugging off this complexity and relying on serendipity for entry opportunities often results in unsuitable acquisitions. An effective alternative used in exploration can also be applied to strategic planning. By providing focus and direction, this flexible methodology can prevent wasting corporate resources on random pursuits and result in a quicker, more satisfactory achievement of diversification goals.

Jan 1, 1990

By R. L. Grayson

Productivity achievements in underground coal mining over the past ten years highlight the improvement of management practices as well as the adoption of new technology. Research findings and results from operational studies characterize the aspects of good management that translate into high productivity. In concert with these findings, the Mine Management Support System (MMSS) is being developed, under co-sponsorship of the U.S. Bureau of Mines and the West Virginia University Energy and Water Research Center, as a knowledge-based system to enhance more efficient management of underground coal mines. Concentrating on capturing the intricate knowledge needed to manage a mine effectively, MMSS will encompass information and rules on work scheduling, desired work practices, regulations impinging on operations and planning, responses to operating problems, and the labor-management work agreement.

Jan 1, 1990

By T. S. Bannos

Section 1417 of the Safe Drinking Water Act Amendments enacted by the O.S. Congress prohibits the use of lead containing solders for potable water systems in new construction or when making repairs. The legislature defines "lead-free" solder as containing less than 0.2% lead. In the development of a new solder it was recognized in addition to the lead free requirement, the alloy should perform as well as the popular 50/50 tin lead solder, both in application and properties. Another objective was to have only nontoxic elements. This led to the development of a 4.0% copper, 0.5% silver and 95.5% tin solder. Review of the merits of other alloy systems and the development of the physical properties along with test data are presented for the lead free tin. rich alloy.

Jan 1, 1990

By John J. Sammarco

The U.S. Bureau of Mines seeks to increase safety and efficiency in U.S. coal mines. One approach is to develop technology for automation of a continuous mining machine. Realization of an autonomous mining machine requires development of subsystems for machine intelligence, navigation-positioning, and computer control. This report focuses on investigation of one subsystem, an onboard heading system, which would be responsible for determining and controlling machine heading. The onboard heading system investigated is a multisensor system to determine machine heading, pitch, and roll. A directional gyroscope provides heading (yaw), fluxgate sensors provide a compass heading, and gravity-referenced clinometers give machine pitch and roll. The system utilizes a dedicated microcontroller networked to an external system of computers. Tram commands, supplied to the network from external computers, are executed by the onboard system. Sensor feedback is employed for closed-loop control of machine heading by controlling pivots and turns. The report discusses operating limitations and error sources of system sensors and presents test results of closed-loop control of machine heading. Results of tests with a mining machine are used to exhibit various sensor shortcomings and to evaluate control of pivots and turns.

Jan 1, 1990

By Alan A. Campoli

The U.S. Bureau of Mines evaluated two different conventionallongwall gate entry systems in the Southern Appalachian Basin, where mining and geologic conditions are conducive for coal pillar bumps. These gate entry systems were in a coal mine located in the Pocahontas No.3 Coalbed under approximately 2,000 ft of overburden and a massive quartzite sandstone member, and both employed a center abutment pillar flanked by yield pillars. The 8O-ft-square tailgate abutment pillars within the first study area began bumping 500 ft in advance of mining. This was accompanied by face bumps on the tailgate corner of the longwall face. The 120-by 180-ft tailgate abutment pillars within the second study area did not begin to bump until mining was approximately 100 ft past. Coalbed stress change and abutment pillar dilation data demonstrated that a 15-ft-wide perimeter of yielded coal surrounded a highly stressed core in both sizes of abutment pillars. The 62 pet more core area per foot of gate entry in the larger abutment pillars prevented excessive load transfer to the corner of the tailgate panel and eliminated the face bumps experienced with the original gate entry design.

Jan 1, 1990