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By J. Trevor Eyton

This paper addresses some of the financial risk hedging mechanisms available to a corporation contemplating entering the mining business at a significant level of investment. The approach which I have adopted is that of a case study relating to the risk hedging aspects of Brascan Limited's acquisition of 46% of Noranda Inc., formerly Noranda Mines Limited, followed by some remarks on options open to mining companies for reducing financial risks. To appreciate the rationale for Brascan committing over (Can.) $800 million to the natural resource sector, some knowledge of Brascan's parent company, Edper Investments Ltd., is required at the outset. Edper Investments, prior to acquiring a 48% interest in Brascan, controlled Trizec Corporation, one of the world's largest property companies. Edper also was involved in the financial services sector through Continental Bank of Canada and Hees International Corporation. For some considerable time prior to Edper's investment in Brascan, Edper felt a need to provide a better balance to its portfolio of property and financial services. Brascan was rich in cash, relatively unleveraged, and with important existing holdings in natural resources and consumer products. The acquisition of a controlling interest in Brascan provided an opportunity to balance Edper's portfolio of property and financial services with world class acquisitions in natural resources, supplemented by consumer products and financial services. The end result of Brascan's activities over the last few years is illustrated by the following analysis of the book value of Brascan's assets at the end of December 1983. [Can.$% Millions _ Natural Resources81748 Consumer Products 654 38 Financial Services 157 9 Other Operations895$1,717100% ] Source: Brascan 1983 Annual Report. The large emphasis on natural resources came about from the fact that for Canadians operating mainly in Canada, natural resources were attractive. We were impressed by Canada's position in the world natural resource industry as illustrated by some of the following statistics: [CommodityCanadian Estimated Production In 1983 As % of World Total Newsprint 30 Potash 21 Uranium 18 Molybdenum 17 Zinc 17 Pulp 16 Nickel 16 Saw Logs 11 Silver 8 Copper 7 Lead 6 Gas 5 Oil3] Source: U.S. Bureau of Mines and Brascan estimates. In addition, the quality of Canada's reserves looked good to us. The polymetallic nature of many of Canada's orebodies offered a hedge against risk relating to any one metal. Put another way, the by-product metal credits offered a net operating cost advantage with respect to many of the metals mined. Our energy costs also appeared to provide Canada's natural resource industries with an advantage. We considered Canadian mining expertise as amongst the world's finest, as were the exploration equipment and technology developed in Canada. In addition, Canada offered a stable political climate and one we knew. Further, we felt the Canadian Government's future role in the industry would, on balance, be benign, partly because the Canadian content of the mining industry was very high in contrast to the petroleum industry. Granted, we could find cheaper sources of copper; however, to do so would involve venturing into regions where country risks were higher.

Jan 1, 1985

By C. F. Jr. Nagel

THIS paper is written primarily for those who are familiar with the processes mentioned but who desire a further insight into some of the fundamental principles. It does not give a complete description of the various practices employed in the working of aluminum and its alloys, but presents a few illustrations of the essential respects in which aluminum differs from other common metals, and emphasizes the controlling factors of the processes under consideration. HEAT TREATING Certain aluminum alloys are capable of having their mechanical properties greatly altered by a heat-treatment process. The degree of this improvement may be illustrated by the typical properties of duralumin (Table 1). It is essential that the material be in the wrought condition in order to obtain maximum heat-treatment effects.

Jan 1, 1927

By W. P. Sykes

RECENT investigations of the molybdenum-carbon alloys have been reported by Becker and Ebert1,? Westgren and Phragmén2, T. Takei3, and H. Tutiya4. Takei3 studied the Mo-C system by employing metal-lographic and X-ray methods, and the other publications described the determination of the crystal structure of the molybdenum carbides. In exploring this system by a technique previously applied to the tungsten-carbon series5, the results of Takei were confirmed with two definite exceptions; i.e., first the composition of the eutectic, and second the nature of the carbon-rich intermediate phase. Consequently, a more thorough examination of the molybdenum-carbon constitution was initiated in an effort to correlate the data supplied by the microstructures, diffraction patterns and chemical analyses.

Jan 1, 1935

MISCELLANEOUS U.S. 0,029,598 - Extraction of vanadium values from vanadiferous iron oxide ore. A pelletized mixture of ore, limestone and bentonite is roasted in an oxidizing atmosphere to form calcium vanadates, the calcine ground, the ground material leached with aqueous ammonium carbonate or sodium carbonate to produce a vanadium-rich solution while leaving an insoluble residue of calcium carbonate and/or calcium bicarbonate along with undissolved iron values, and the solution separated and treated for its vanadium content. This patent is a reissue of U.S. Patent No. 3,853,982, dated Dec. 10, 1974. C. B. Bare and J. W. Pasquali, assigned to Bethlehem Steel Corp. Mar. 28, 1978. 7 pp. (423-68). Filed: 3-3 1-77 (783,352).

Jan 1, 1979

By Earle J. Klohn

Mining operations have been carried out in British Columbia since the time of the first settlers in the area. The early developments were mainly small volume, high-grade operations, producing small quantities of tailings wastes. In these early days the nearest stream was a logical first choice for tailings disposal. Where streams suitable for accepting the tailings were not available or where streams crossing the International Border could not be used for this purpose, the nearest convenient land site was selected for storing the tailings. Old tailings waste piles exist at many locations in the Province and are readily evident, for example, in the Princeton and Hedley areas. Figs. 1 and 2 are photographs showing the present condition of two of these old tailings dams. [ ]

Jan 1, 1972

By C. V. O. Hughes

Florida phosphate operations are unique in the ways standard mining equipment is made to meet specialized problems. Hydraulic mining and transportation has evolved in meeting three such special problems: 1) surface mining of a shallow, poorly consolidated but wet material; 2) high pro¬duction rates, necessary because of low prices for phosphate rock in a highly competitive market; and 3) preparation of the value-bearing rock, or matrix, for washing and flotation. The magnitude of the problems is better appreciated if the reader understands the size of operations in the area. The Florida phosphate field produces and ships about 10 million tons per year of phosphate rock. All of this has to be concentrated to its shipping grade, either by scrubbing and screening or by flotation.

Jan 1, 1956

By G. M. Ritcey

Purification of solutions can involve various treatment methods. In the normal sequence of metals recovery by hydrometallurgy, the ore is initially prepared for leaching by grinding to the desired optimum mesh size as dictated by the leaching parameters. Following leaching and liquids- solids separation, the resultant solution is ready for purification. The use, or introduction of solvent extraction into a plant, can be either a major or a minor part of the metal recovery process as shown by the following list where solvent extraction is normally considered: a) recovery of a metal by a simple leaching of the broken ore, e.g., copper from dump leaching where there are only the three main steps of leaching, solvent extraction, and electrowinning (1);

Jan 1, 1978

By Strathmore R. B. Cooke, Iwao Iwasaki, C. S. Chang

PYRRHOTITE has long been considered a gangue mineral to be eliminated as tailing in the treatment of various sulphide ores. However, in recent years the world-wide lack of sulphur resources has called attention to this mineral as a potential source of both sulphur and iron. Its importance as an economic mineral, however, has not been particularly emphasized. For this reason very little is known about its response to flotation, except that it can be depressed easily in alkaline circuit, by long aeration,1,2 addition of oxidizing agents3 or by starch.4 The object of this work was to study the floatability of pyrrhotite. This includes the effect of oxidation by aeration, of copper activation, and of change in pH.

Jan 2, 1954

By Per-Martin Sandgren, Alrik Anttila

LKAB's ores have specific mineralogical properties that make them especially suitable for the production of supergrade concentrates. Conditions are particularly good for this purpose at Malmberget, where a concentrate for high-purity sponge iron production has been produced for many years. This product assays approximately 71.5% Fe and 0.20% SiO2. Potential exists for still further improvement. In recent years, the production of fractioned concentrates has been started. The material lies within the size range 74-125 µm and the approximate chemical analysis is 71.4% Fe and 0.30% SiO2. Other special products are under discussion. Malmberget ores are also suitable for the production of high- purity direct reduction pellets with a SiO2 content below 1%.

Jan 1, 1983

By Henry B. Estabrooks

As was true with many mining companies, the management of Tennessee Copper Co. followed with interest the successful application of AN-FO as an explosive in coal stripping, construction, open-pit mining, and finally in underground salt mines. Since Tennessee Copper's operations required about 1,250,000 lb of dynamite annually, the potential savings in explosives costs that could be realized by switching to AN-FO could not be ignored. From a cautious start, AN-FO is now being used for stoping, development work and secondary blasting in all mines of Tennessee Copper Co. AN-FO accounts for 80% of the explosives used in such work. Fragmentation, fumes, crew acceptance, and cost savings have been quite attractive without any decrease in safety.

Jan 11, 1962

By Fred C. Bond

IN crushing and grinding the larger particles are more exposed to the work input. They absorb most of the work and protect the smaller neighboring particles from destructive contact with the crushing surfaces or grinding media. The importance of this exposure differential upon the reduction efficiency and product size distribution has long been recognized. Unfortunately, there has heretofore been no direct method of evaluating it, and such indirect methods as observing the slope of the plotted product size distribution line have been used as an indication. In this presentation the Third Theory of Comminution1 has been used, together with the exponential formula for size distribution, to evaluate the exposure ratio and exposure constant and to illustrate examples of their utility in crushing and grinding applications.

Jan 12, 1957

The new saw mill at Cache Bay of the Geo. Gordon & Co., Ltd., a subsidiary of International Nickel Co., of Canada, is equipped with the first fully electric saw carriage drives in Ontario. It has a capacity of 120,000 ft of lumber in an 8-hr shift. About half of the mill's production is high grade white pine lumber which is shipped to the general market. The other half, red pine is used in the mining operations of International Nickel in the Sudbury district, 55 miles west of Cache Bay. [ ] Inco with a potential need of 77 million board ft a year, gets only part of its supply from the new mill. The milling firm became an Inco subsidiary Jan. 1, 1948.

Jan 1, 1952

By Mario L. Villa

During the year 1941, there was another increase in the production of oil in Argentina, to which the fields in the Comodoro Rivadavia zone in the Territory of Chubut and those of the Provinces of Salta and Mendoza all contributed. The total production for this period reached 22,013,472 bbl., which represents an increase of 6.8 per cent over that of 20,609,538 bbl. in the preceding year. This result is again attributable to the Government oil company, the Yacimientos Petroliferos Fiscales, which had a total production of 14,006,559 bbl. representing an increase of 1,531,904 bbl., or 12.3 per cent over that of the 12,474,655 bbl. of the year before. The other companies

Jan 1, 1942

By Mario L. Villa

During the year 1941, there was another increase in the production of oil in Argentina, to which the fields in the Comodoro Rivadavia zone in the Territory of Chubut and those of the Provinces of Salta and Mendoza all contributed. The total production for this period reached 22,013,472 bbl., which represents an increase of 6.8 per cent over that of 20,609,538 bbl. in the preceding year. This result is again attributable to the Government oil company, the Yacimientos Petroliferos Fiscales, which had a total production of 14,006,559 bbl. representing an increase of 1,531,904 bbl., or 12.3 per cent over that of the 12,474,655 bbl. of the year before. The other companies

Jan 1, 1942

By Robert E. Goodwin

There are four main requirements to be considered in selecting a wire rope that will provide the best service. A proper choice is made by correctly estimating the relative importance of each of these requirements and choosing a rope with qualities that will best enable it to withstand the combination of destructive forces expected under continued service. A Good Rope Choice Matches Strength with Stress A wire rope should be (1) strong enough to sup- port the maximum load anticipated with a proper safety factor, (2) able to withstand bending and to resist bending fatigue without failure of the wires, (3) able to withstand surface abuse such as abrasion, pounding, and wire scrubbing, and (4) able to take abuse such as crushing and distortion.

Jan 5, 1969

(The following list contains the names of those members of the Institute of whose connection with military service we have only recently become acquainted; it also includes the navies of a few who have recently been promoted or transferred. A complete list was published in the Year Book, issued as a supplement of the Bulletin for March, 1918.) ARNOLD, RALPH, Member of. Board of Tax Reviewers in connection with the administration of the War Revenue Act. BACON, RAYMOND F., Lieutenant-Colonel, Chemical Service Section, N. A., A. E. F. BALLENBERG, A. G., 1st Lieutenant, Ordnance Dept., U. S. A. BARCUS, WALTER J. E., Captain, Gun Division, Ordnance Officers' Reserve Corps. BECKWITH, H. T., Captain, Engineer Reserve Corps, Headquarters Co., 312th Engineers.

Jan 6, 1918

By David S. Butts

The high cost of energy has made many solution mining corporations turn from fuel consuming evaporators to solar energy and solar ponds. The generally held concept of a solar pond is an area enclosed by dikes into which brine is pumped, water evaporated by the sun, and the resulting salts scraped from the bottom of the pond. This paper will show that solar ponding is not simple. It is a science involving six main areas. These areas are (1) land conditions, (2) meteorology, (3) fresh water, (4) accessibility, (5) manpower and (6) mineral resources. Each area is discussed to identify important parameters that must be investigated before the viability of a solar pond complex can be established as a mineral recovery step.

Jan 1, 1985

By John P. Weir

Coal's participation in the domestic energy market depends to a very large extent upon the cost of coal delivered to consumers. Today the principal use of coal in the U.S. is in steam-electric generating stations. Generally, it is the delivered cost per million Btu's that is given the greatest weight in choosing either oil, natural gas or coal as the fuel used in these power plants. There are three major cost components of generating electric energy in steam-electric plants. These expenses expressed in terms of "dollars per kilowatt year" are: (1) operation and maintenance of necessary facilities, (2) fixed charges of necessary capital investment, and (3) fuel. For a modern large plant, the first two items would be approximately as follows:

Jan 9, 1962

By Charles L. Elliot

Worldwide manpower utilization reached a new high at 10,482 professional man-months and expenditures increased to $19.9 million for mining geophysical activity during 1965. This is up from 9323 man-months and $14.5 million in 1964. Worldwide geophysical activity measured in percent distribution of the total manpower utilization and expenditures is presented in the accompanying Figs. 1 and 2. In terms of the total manpower utilization, ground surveys accounted for 61%, airborne surveys 18%, and mining geophysical research activity 21%. For expenditures, the breakdown was ground surveys, 49%; airborne surveys, 3901o; and research, 12%. Industry was responsible in general for 74% of the manpower utilization and 80% of the expenditures. Manpower costs in 1965 averaged $1900 per professional man-month.

Jan 11, 1966

US underground mine production of nonfuel minerals was 153 million tons of crude ore in 1971, according to a recent US Bureau of Mines report compiled by Dravo Corp. Underground capacity includes all nonfuel mineral commodities and is distributed into three general categories: (1) metallic ores; (2) nonmetallic ores; and (3) construction materials, such as clay, sandstone, and limestone. All three categories are produced by a combination of open-pit and underground methods. While US underground mining represents only 5.9% of total domestic capacity, it is significant in the types of products produced. Domestic supplies of potash, trona, A lead, zinc, sulfur, and fluorspar are almost exclusively recovered from underground mines, as well as a significant portion of the gold, silver, molybdenum, and salt supply.

Jan 7, 1975