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By S. X. Shi, M. Tan, Y. Q. Li, D. F. Han, Z. B. Han

Bauxite resources in China are mainly diaspore ore with the characteristics of low ratio silicon to aluminum. In order to obtain high quality of alumina product, flotation process is generally used to extract the aluminum from diaspore ore. Small aeration rate is needed for bauxite flotation, which requires air to be controlled accuracy. In addition, productive froth from bauxite flotation is too sticky to effects froth transportation. Air-forced XCF/KYF flotation machines are helpful for aeration control, while self-suction GF flotation machines benefits froth transportation. Zhongzhou aluminum plant of China Aluminum Group (Chinalco) uses 7 series of XCF/KYF /GF combined flotation machines to process bauxite. Air distribution, suspension characteristics, froth flow velocity and Al2O3 recovery were investigated, to evaluate the performance of flotation machines in one series and determine recovery contribution of each cell to the entire flotation circuit.The air distribution degree varies from 3 to 4, which is enough for bauxite floatation process. Froth in the tank could flow smoothly with a flow velocity of 2.4m/min. The recovery of the first KYF-40 flotation cell is the largest. Flotation concentrate of Al2O3 is up to 64.29%, the total recovery is about 75%, and the ratio of Al/Si has reached 10.4.

Jan 1, 2015

By T. L. Sadlier-Brown, Andrew E. Nevin

"Common properties of commercial geothermal steam reservoirs are a magmatic heat source, the presence of water in vapour and liquid phases, and a surrounding seal of low permeability. The latter may be due to a combination of hydrologic load, argillic alteration and mineral precipitates. The temperature and pressure of vapour and liquid co-existing in equilibrium at maximum enthalpy may approximate 451°F and 450 psi. Steam reservoirs do not necessarily vent steam, but fluid which breaches and mixes with meteoric waters may emerge as hot springs. A systematic exploration program in Western Canada would involve a sequence of four stages utilizing geological, geochemical and geophysical techniques. The geochemical parameters of hot spring waters, such as silica, lithium and potassium content, give some indication of the basic reservoir temperature. The geology of Quaternary volcanics, including reservoir rocks, structure and rock alteration, is of prime importance. The costs of preliminary indirect methods are no more than those of oil and gas exploration; however, high temperatures compound drilling problems and costs. Exploration expenditures of twenty million dollars or so might be needed for a significant discovery. British Columbia and the Yukon Territory contain abundant Cenozoic volcanic rocks and over 50 thermal spring complexes (some with as many as 20 springs in one complex). Six regions are tentatively picked for exploration. Four regions coincide geographically with post-1980 electric power facilities and loads, and with possible alternatives such as potential dam sites. The Lillooet River region, Terrace region and Western Vancouver Island region have inferred potential for the existence of a plus-500-Mw geothermal reservoir. The Kootenay region may or may not have such potential. The Stikine River region has strong evidence of geothermal endowment, but the anticipated power market of the middle future might be only 30-50 Mw. The Whitehorse, Y.T., and Atlin, B.C., region has a belt of thermal springs and Recent cinder cones. The anticipated middle-future needs are real enough, but in absolute terms they are small, say 20-30 Mw. Legislation and policy on geothermal resource rights are lacking in British Columbia and the Yukon Territory at this time. As well as making policy, governmental organizations will play a significant role in geothermal development as buyers of steam or electricity. The role of industry is visualized as assuming the high-cost and high-risk exploration effort, provided the nature of this effort is understood by government."

Jan 1, 1973

By M. B. Kime

"Discrete-element method (DEM) modelling is a powerful tool for studying particulate systems within the mineral processing industry. DEM simulations were conducted to investigate the power draw, load behaviour, and impact energy profile of an experimental ball mill under different milling conditions. The variables considered were mill rotational speed (percent critical speed), ball size, and lifter face angle. The simulation results indicated that the grinding efficiency would be enhanced by using 80% critical speed, 30 mm ball diameter, and 45° lifter face angle. These findings can be useful in guiding actual ball milling tests involving an ore sample.RÉSUMÉ La modélisation par méthode des éléments distincts (MED) est un outil puissant qui permet d’étudier les systèmes particulaires au sein de l’industrie de traitement des minerais. Des simulations par MED ont été menées de façon à étudier le profil de la consommation énergétique, du comportement de la charge et de l’énergie de rupture d’un broyeur à boulets expérimental dans diverses conditions de broyage. Parmi les variables prises en compte figuraient la vitesse de rotation du broyeur (vitesse critique en pourcentage), la taille des boulets et l’angle de coupe de la cornière élévatrice. D’après les résultats de la simulation, on pourrait améliorer l’efficacité de broyage en utilisant une vitesse critique de 80 %, un diamètre de boulet de 30 mm et un angle de coupe de 45 ° de la cornière élévatrice. Ces résultats peuvent se révéler utiles pour les essais concrets de broyage à boulets impliquant un échantillon de minerai."

Jan 1, 2017

By G. W. Govier

Measurements of the settling rates and the rheological behaviour of heavy media formed of fine suspensions in water of each of magnetite, ferrosilicon, and galena have been made. For media ranging from 1.6 to 2.8 specific gravity the settling measurements gave initial settling rates of from 0.5 to 0.01 ?cm. 'Per minute for magnetite; from 4.0 to 0.8 cm. per minute for galena; and from 35 to 1.6 cm. 'Per minute for ferrosilicon. These measurements indicate the ?relative stability of the suspensions and should be helpful in establishing the useful specific gravity range for each medium. Measurements of the consistency of the media were made with a Fann Model 35 rotational viscometer. Aibnormal or non-Newtonian behaviour was observed in the case of each media, the apparent viscosity being dependent upon the rate of shear or the intensity of motion. Measurements were made over the rate of shear range of 10? to 1,000 reciprocal seconds. The apparent viscosities of the magnetite media ranged from 450 down to 4?0 centipoise at 2.30 specific gravity, and from 2,450 down to 700 centipoise at 2.80 specific gravity. In the case of the galena media, the variation was from 40, through a minimum of 6, to 10 centipoise at 2.20 specific gravity, and from 950, through a minimum of 180, to 450 centipoise at 3.6 specific gravity. The ferrosilicon suspensions exhibited apparent viscosities ranging from 42, through a minimum of 5.6, to 9 centipoise at 1.9 specific gravity, and from 160, though a minimum of 35, to 85 centipoise at 2.8 specific gravity. The dependency of apparent viscosity or consistency upon intensity of motion is considered to be of particular significance in applications of heavy media where the medium is in rapid motion.

Jan 1, 1957

By K. Ilankoon, I. M. Saman, S. J. Neethling

In heap leaching the transport of the acid from the drippers to the surface of the ore particles is a major factor in the overall performance of a heap. This flow behaviour is complex as the flow is unsaturated and occurs along a tortuous set of inter-particle channels and connections. The particle properties such as size, shape and porosity are very important when modelling the liquid holdup and flow within heaps, since the dominant mechanisms at work are quite different. This paper investigates the effect of these particle properties experimentally on heap flow behaviour using a 1-D column leaching system consisting of non-porous glass beads with a system of actual ore particles. The similarities and differences between the two systems on flow behaviour are described using an inter-particle flow model. In addition, the applicability of positron emission particle tracking (PEPT) for laboratory column leaching will be detailed to calculate hydrodynamic dispersion in packed beds compared to more conventional residence time distribution (RTD) tests and also to obtain the time averaged rivulet flow paths through the particles of the bed for the better understanding of heap hydrodynamics.

Jan 1, 2014

By C E. Gordon Brown

Aircraft utilization, weather and cost data are given for three separate projects north of the sixtieth parallel in the Northwest Territories and the Yukon Territory. These operations, carried out by helicopter-equipped geological and prospecting parties, have cost $24 to $30 per square mile, depending principally on the distance from the base. They provide adequate surface exploration of areas with 40 to 50 per cent rock outcrop. A good one-inch-to-one-mile geological map can be made. T HE exploration of the Canadian northland has been given increasing attention by the mining industry during recent years. In many cases, the initial problem is to make an adequate reconnaissance of a large area where existing geological information is meagre. The Geological Survey of Canada pioneered the use of helicopter-equipped geological parties for mapping at a scale of eight miles to the inch.

Jan 1, 1964

By W. McCombe, G. Remple, L. Zunti, M. Bernardin, L. Nightingale-Mercer

"The McClean Lake Mill is located approximately 700 kilometres north of Saskatoon, Saskatchewan, Canada and is operated by AREVA Resources Canada Inc. (AREVA). The mill was designed to process high grade uranium ores, and has been undergoing a multiyear expansion to increase its production capacity to 24 Mlbs U3O8 per annum, while also undergoing upgrades to allow it to safely transition to processing high grade ores from the Cigar Lake Mine. During the metallurgical test work on the Cigar Lake ores, it was identified that some ore zones in the Cigar Lake deposit have a propensity to generate hydrogen gas during acid leaching. Hydrogen is a volatile and explosive gas, which poses obvious safety concerns in the leaching circuit. Uranium processing is further complicated by the fact that an oxidant in the form of oxygen gas or hydrogen peroxide is required to regenerate iron in the leach, which further increases the risk from hydrogen gas. During 2013 Hatch and AREVA designed and engineered a number of novel upgrades for the leaching circuit to mitigate the risk of hydrogen gas evolution in the process. Best in class technology was utilized in addition to control and operating strategy changes to ensure the leaching circuit can be safely operated with ores that can evolve hydrogen gas. This paper reviews the design concepts and modifications implemented on this unique and challenging project.INTRODUCTION The McClean Lake mill was originally designed to process high grade uranium ores, however until 2014 the average ore grade processed was 1%. The facility has been undergoing a multiyear upgrade and expansion to increase its production capacity from 12 to 24 Mlbs U3O8 per annum, while also undergoing upgrades to allow it to safely transition to new high grade ores, averaging 18% U, from the Cigar Lake Mine. During the last round of metallurgical test work on the Cigar Lake ores, it was identified that some ore zones in the Cigar Lake deposit had a higher propensity to generate hydrogen gas during acid leaching than previous test work had indicated. Hydrogen gas is a volatile and explosive gas, which poses obvious safety concerns in the leaching circuit."

Jan 1, 2017

By M. A. Cristovici

"In the last few years CANMET has taken the initiative by investigating the possibility of reactivating abandoned old tailings dumps (for gold production) which would be of potential economic interest across Canada.Nova Scotia was one location where numerous gold processing plants were in operation in the early days. A survey of the old tailing dumps was conducted and some areas of interest were selected. Among them were the sites identified as Lake Charlotte and Forest Hill.Ore samples collected from those tailing ponds were examined for their chemico-mineralogical composition and investigated for gold extraction. Three technological concepts were tested: flotation, direct cyanidation and flotation followed by cyanidation of the flotation concentrate. The combined flotation- cyanidation variant, yielding a gold recovery in the range of 90%, was recommended for processing the tailing ore.Pilot-plant runs carried out by a commercial testing firm (data not included in this paper) confirmed the conditions and results of CANMET's technology.As a result a consulting-engineering firm designed the processing plant which is expected to begin operation in the near future.IntroductionIn the last few years CANMET initiated a research program to locate in Canada, abandoned gold-silver tailing dumps of potential economic interest and to explore the possibility of recovering the precious metals from these old deposits by modern techniques.A literature search revealed that the first production of gold in Canada was recorded in British Columbia in 1858 and that, production prior to 1900 was essentially restricted to the Yukon, British Columbia Nova Scotia and Quebec. During the early 1900s, Ontario, Manitoba and the North West Territories joined the ranks of the gold producers.Early milling and recovery methods were mainly restricted to sluice boxes, gravity stamps and amalgamation. Froth flotation and cyanidation were introduced at about the turn of the century.Recovery of gold at plants using flotation and cyanidation was very good, therefore the tailing ponds resulting from those operations would, very likely be of little or no economic importance. However, the gold recovery at the amalgamation and gravity concentration plants appeared to be lower, indicating the possibility that significant amounts of recoverable gold would have been carried with the tailings to the dump sites."

Jan 1, 1986

By C. Caballero, K. Itagaki, P. Morales, A. Moyano, J. Font

Codelco-Chile is considering different processing options for the new projected concentrate from the Alejandro Hales mine. This concentrate is featured by its high arsenic content of up to 6%. Thus, it is important for Codelco Norte Smelter to define the technical feasibility for processing this high-arsenic bearing concentrate in its main smelting unit as it is the Teniente Converter, which beside of its dual feeding system can enhance the arsenic removal by volatilization. The present paper which is a part of an extensive research work will focus in the performed industrial scale test for processing about 7,000 tonnes of a high-arsenic bearing concentrates in the Teniente Converter at the processing rate of about 2,300 tpd. The impact on the chemical quality of the produced high grade matte will be discussed, and the effect of the As removal by increasing the Teniente Converter processing rate of concentrates up to 3,000 tpd when producing 70% Cu in the white metal will also be addressed.

Jan 1, 2007

By R. K. Collings

"This paper summarizes research that was done at the Mines Branch, Ottawa, to evaluate samples of phosphogypsum for gypsum products manufacture. The samples were from phosphate fertilizer facilities at: Port Maitland, Ontario ; Valleyfield, Quebec; and Fort Saskatchewan and Redwater, Alberta. All samples were wet-screened, washed, filtered and calcined in a laboratory kettle at atmospheric pressure. Tests were also made at higher pressures in a small autoclave. The gypsum and resulting hemi-hydrate, being acidic, were treated before, during and after calcining with various bases. The hemi-hydrate products were checked for time of set, compressive strength and bond to gypsum wallboard paper. The results of this study indicate that phosphogypsum from each of the sources investigated has potential as a substitute for mined gypsum in gypsum products manufacture. Pilot-scale testing is recommended to confirm that the product would be satisfactory for the manufacture of plaster products on a commercial basis."

Jan 1, 1972

By E. Brzychczy

Artificial intelligence techniques are ever more frequently implemented in the modern world. One of their numerous uses is supporting enterprise management. Intelligent techniques and intelligent information technology (IT) systems can be implemented in mining-related issues as well. The author of this article concentrates on supporting the process of planning mining operations by intelligent systems and techniques. The author also underlines the importance of knowledge accumulation in a mining enterprise (especially tacit knowledge) as well as its efficient storing and using. Additionally, the author provides a short description of characteristics of intelligent IT systems and indicates their capabilities in planning mining operations. She presents two solutions, namely: an advisory system which supports the process of planning preliminary works and exploitation works in hard coal mines, and a method of modeling and optimizing mining operations. Finally, the author indicates a few possible future development trends of intelligent systems - the intelligent systems of decision support.

Aug 1, 2013

By J-P. Rossetti, A. Guerin, M. Jaboyedoff, L. Baillet, A. Mariscal, J. D'Amato, D. Hantz

"The processes leading to the fall of rock compartments from rock walls are poorly known as well as their velocity. It ensues that quantitative prediction of the failure time for a rock compartment which is presently stable, is not possible by a purely geomechanical approach. However a quantitative probabilistic prediction of rockfalls at the scale of a rock wall is possible if the spatial-temporal rockfall frequency can be determined or estimated (Hantz, 2011). For a better knowledge of failure processes and frequency, rockfalls have been detected in several rock walls, using annual terrestrial laser scanning, allowing comparison of the frequencies in different geological conditions. For one of these rock walls, the spatial detection have been completed by a precise dating of the events, using a quasi-continuous photographic survey (one photo every 10 mn), allowing the study of the influence of meteorological factors.The precise dating of rockfalls has been carried out for the Saint-Eynard cliff which towers above a residential area of the town of Grenoble (French Alps). The South-East facing cliff consists in bedded limestone gently dipping North-West and located at an elevation between 850 m and 1100 m. The surveyed zone is about 750 m large and 250 m high. Between 01/02/2013 and 26/11/2013, 65 rockfalls ranging between 0.01 m3 and 20 m3, have been detected by diachronic comparison of laser scanner data and dated by comparison of photographic images. The temperature at the elevation of the cliff has been calculated from the temperature measured (every 5 mn) at a meteorological station located at an elevation of 245 m and 2.5 km away from the cliff, using a temperature gradient of 0.003°C/m (D’Amato et al., 2014). The precipitation were measured 900 m away from the cliff at an elevation of 469 m. Different meteorological conditions have been defined: (a) “freeze” qualifies days with negative mean temperature (but with a thaw period, except for two days); (b) “thaw” qualifies days with positive mean temperature, but following a freeze day; (c) “rain” qualifies days with precipitation.Table 1 shows the rockfall temporal frequency for the different meteorological conditions. It appears that the frequency is about 6 times higher the freeze days, 2.5 higher the thaw days and 3 times higher the rain days than days without freeze, thaw or rain."

Jan 1, 2015

Operating CIP/CIL gold recovery plants in the arid regions of Western Australia face unique challenges due to water and ore quality issues. The presence of cations of Mg, Fe and Cu metals in water supplies and leached sulphide ores can have considerable effect on plant consumption of lime and cyanide, due to pH buffering and complexation effects. Reagent costs are critical to many of these operations. In this paper, computational modelling is used to analyse a number of process options to mitigate such issues. This requires careful consideration of the chemistry of the process system, and the ability to predict accurately the response of speciation and precipitation reactions to changing process conditions. The Mg-Fe-Cu-CN-H20 system is specifically modelled in this application. The Gibbs Free Energy Minimisation thermodynamic framework has been selected to model equilibrium phenomena. Furthermore, this approach has been extended to the process flowsheet level, incorporating multiple unit operations and recycle streams in a steady-state mass balance model. The Gibbs equilibrium composition module of HSC Chemistry software has been successfully integrated into the commercial flowsheeting package SysCAD. Consideration of the Gibbs Energy Minimisation capabilities of other flowsheeting packages has also been given. This approach has been successful in simulating the aqueous process chemistry typical of such plants. It has resulted in a predictive capability where equilibrium states respond appropriately to process changes. Potential cost savings may be identified by examining alternative process conditions to minimise overall reagent consumption.This methodology may be extended to other hydrometallurgical plants where issues of solution ideality, temperature and other equilibrium processes are sufficiently understood.

Jan 1, 2005

By Richard W. Hutchinson, Christopher Osterman

Abstract -The Selebi-Phikwe deposits are hosted by amphibolite to granulite facies gneisses of the Limpopo belt. The sulfide orebodies are generally stratiform and conformable to the foliation of the wallrock gneiss. Sulfide remobilization has occurred during metamorphism and has produced discordant sulfide veins, called piercement structures, which project into the hanging wall and foot­ wall gneisses. These piercement structures are compositionally similar to the stratiform sulfides, consisting mainly of pyrrhotite, pentlandite and chalcopyrite. However, texturally the piercement sulfides are coarse grained and inclusion-free, whereas the stratiform sulfides are fine grained and packed with tectonically produced wallrock inclusions. The piercement structure sulfides and adjacent stratabound sulfides were sampled and analyzed for major base metals and PGE's for comparative purposes. Most of the piercement structures were enriched in Cu, Ag and Au, whereas they were generally depleted in Ni, Co, Fe and PGE's. Changing elemental associations were observed from the stratabound sulfides and along the length of the piercement structures. This and the degree of depletion or enrichment of various major and minor elements in the sulfide piercement structures may reflect the relative mobilities of metals under metamorphic conditions. The similarities between sulfide piercement structures and the footwall Cu-POE veins in some Sudbury deposits are reviewed.

Jan 1, 1994

By W. A. Lang

Introduction In this review, which is the fifth of the series on the Progress in Coal Technology, an attempt has been made to outline some of the more important developments that have taken place in coal carbonization during the last decade. Research into both high-and low-temperature carbonization has been active for three principal reasons: (1) the growing shortages in most countries of high-quality coking coals; (2) the demand for smokeless fuels for domestic purposes; (3) the need for metallurgical coke for the increased output of steel in the post-war years. The growing importance of coal tars as a source of chemicals for the preparation of synthetic products and of coal gases for the recovery of sulphur is evident. Many of the researches initiated because of wartime necessity have been continued .and even expanded in the post-war years. High-temperature carbonization with a suitable coal yields a strong coke which is used primarily for metallurgical purposes, a tar with good marketable value, and a large yield of gas of medium calorific value. Low-temperature carbonization gives a more free-burning solid product suitable for a domestic fuel, a high yield of a tar which is generally regarded as superior to high-temperature tar for chemical purposes, and a smaller yield of a higher-heat-value gas.

Jan 1, 1951

By Edward Thomas

Note. - Securing mine roof through consolidating thin or otherwise incompetent strata to increase overall thickness of the immediate roof beam is a new method of roof support and control which has aroused great interest amongst mining engineers and which is now being experimented with and thoroughly investigated by the United States Bureau of Mines. A paper on Roof Bolting, illustrated by photographs and motion-picture films, will be presented by Edward Thomas, of the U. S. Bureau of Mines, at the forthcoming Annual Meeting of the Mining Society of Nova Scotia. In the following pages, Mr. Thomas describes the methods used in roof bolting as illustrated by the photographs that accompanied his paper. The photographs are supplied through the courtesy of the United States Bureau of Mines, whose willing cooperation with miners and mining engineers in Canada is very well known and even more greatly appreciated. This method of publishing Mr. Thomas's paper is adopted because few, if any, Canadian mining engineers have actually seen installations of roof bolts and it is felt that the best possible presentation of such an interesting subject through the medium of the Bulletin will be attained by publication of the photograps over explanatory captions. - Ed.

Jan 1, 1950

By Charles B. Newmarch

Abstract In the course of coal studies undertaken by the B.C. Department of Mines in southeastern British Columbia, special attention was directed to problems of coal seam correlation. Methods that had been used successfully in other coalfields were found, in the Crowsnest area, to have a restricted use or furnished only additional evidence that might prove helpful when used in conjunction with other criteria. A correlation technique involving semi-quantitative spectrographic analyses of coal ashes was developed. Elements detected in the ash include Si, B, P, Fe, Mg, Mn, Pb, Ti, Cr, Ga, Ca, Al, Ge, Ba, Mo, V, Ag, ?y;b, Na, Zn, Zr, Ni, Sr, Cu, K. Of these, the elements found to be most useful in correlation were Na, Ba, Si, V, and Mg. The element Na was invariably detected in the ash from one of the seams but was not found in samples taken from any of the others. In all of the four seams sampled statistically, significant differences in the amount of certain trace elements were noted. When the values obtained for these trace elements were portrayed in the form of histograms, the resulting diagrams had a characteristic shape for each seam. The diagrams provided a basis for seam identification within the limited area (8,000 feet by 4,000 feet) that was investigated. Introduction During the field seasons of 1946, 1947, and 1948 the British Columbia Department of Mines undertook a geological investigation of the coal measures of southeastern B.C. As field work progressed in the Crowsnest area it was found that, within the Kootenay formation, which contains all the commercial seams of the region, the coal beds are the most persistent stratigraphic units. Because of relatively rapid changes in ?both the thickness of the seams and the interval between seams, difficulty has invariably been experienced in attempts at correlation. Even short-range correlati0ns by able geologists who have worked in the Crowsnest coal basin have been questioned by the operating companies. It was apparent, therefore, that a more dependable correlation technique was needed so that stratigraphic and structural studies could be of greatest value. This paper presents, firstly, a summary of the results obtained in attempted correlations using methods that have been found effective in other coalfields. Secondly, a method based on semi-quantitative spectrographic analysis of coal ash is described and the apparently promising results are discussed.

Jan 1, 1950

By A. E. Wraith, R. Harris, J. Qiu, R. Parra

Small pilot scale experiments have shown that it is possible to almost fully eliminate the minor elements (ME), namely As, Sb, Bi and Pb contained in smelter dusts by vacuum calcination of mixtures of the dust with sulphidizing agents such as dirty copper concentrate or elemental sulphur at 900 °C and 80 +/- 30 Pa for 90 minutes. The products of this calcination are a residue comprising a purified mixture of copper containing compounds along with the gangue constituents and a high sulphur condensate comprising a mixture of the minor element compounds. In particular, the Cu:ME ratios of the concentrate and dust were increased from 250 and 50, from 28 and 12 and from 36 and 8 to roughly 3000, 3000 and 100 for the calcine, for Bi, As and Sb, respectively. It has also been calculated that (i) the copper content of the vacuum calcine may be recovered by feeding it into a Peirce-Smith converter during its slag blow, and (ii) the resulting recycling could increase the minor element treatment capacity of a smelter by 100 % while also reducing the blister As content by a factor of three. The experimental results are briefly discussed and a treated dust recycling option is examined. Example operating conditions are presented and available commercial technology for the vacuum calcination of the mixtures is reviewed.

Jan 1, 2007

By David Davidson

Overview- Points To Be Addressed ? Review the building blocks of a successful and vibrant industrial economy ? China?s current position in the global economy ? China?s voracious appetite for raw materials ? Distortion in import/export trends ? Areas of strategic importance for China - Steel and its components - Agriculture self sufficiency - Energy now and for the future ? Do current valuation techniques fairly value ?strategic? assets? China ? The Economical Miracle - Massive shift in population from rural to urban - ?Middle class? growing rapidly, hence strong consumer growth - China is the manufacturing center for the world ? cheap labour and - modern facilities - Infrastructure build out ?US$585b stimulus package and 5 year plan - Rail ? 30,000 kms of new track planned by 2020 - Power ? 50% capacity increase, including 35 nuclear reactors - 100 major new airports - State of the art process and manufacturing facilities - Port capacity ? 100m TEU capacity increase by 2020 Class 1 national highway ? 35,000 km?s by 2020

May 1, 2010

By Knud Sinding

Mining firms are widely criticised for their adverse impacts on the environment. At the same time many firms in the industry devote extensive resources, both financial and managerial, to the reduction or elimination such impacts. Very considerable improvements have been made, although these are sometimes overshadowed by a few high-profile accidents, such as the occasional collapse of a cyanide-containing tailings dam. In parallel, much effort is also directed at projecting a positive environmental image, as witnessed by extensive environmental reporting, both on paper and increasingly through web-platforms. Mining projects today almost invariably involve some form of environmental protection. In industrial countries regulations in this area are extremely stringent, as is enforcement. In less well developed countries, regulation and enforcement may be weaker, but firms are in many cases and for a number of reasons committing themselves to high levels of environmental protection, even if they might get away without doing so. Research in the area of environmental performance of mining firms has so far paid much attention to concepts such as sustainability indicators and the sustainability of individual firms. Given the still raging debates about the appropriate way to determine the degree to which any given firm is sustainable (Welford 1995) as well as the usefulness of what will in the final analysis be a value judgement, anyone on the sidelines of the debate will come back to the fundamental issue, how is knowledge that a particular firm has been judged ?sustainable? going to be made use of. This issue remains unresolved, which may explain the lack of progress in formulating a useful definition of a sustainable firm The question addressed in this paper is not so much about what firms are doing on the ground or in any particular case of environmental protection, but more in the subsequent use of these efforts - and by extension - on the overall direction of corporate environmental strategy. The fundamental problem facing all mining firms is that they cannot easily benefit from unilaterally reducing their environmental impact. The firm can of course avoid liability and keep a variety of stakeholders happy and hence experience lower costs of obtaining the [input] resources they need (in a broad sense, not just minerals), but this represents only part of the opportunities available form pursuing an environmental strategy (Reinhardt 2000). The other part, which may have an enormous potential, involves the concepts of competitor management and product differentiation. The logic of keeping stakeholders happy has been most forcefully argued by Pfeffer and Salanchick (1978) who link the behaviour of firms in all domains to their ability to obtain the resources they need, at a cost that is lower than it would otherwise be (Pfeffer & Salanccik 1978). Several varieties of strategy can be included under this heading, including cost reduction and risk management. The alternative logic is to convince customers that they want to pay more for minerals supplied by mining firm X or directly attributable to mine Y, or by making all mineral users pay more. These two strategies, which may be referred to as product differentiation and competitor management, respectively (Reinhardt 2000) are related to the demand side of mineral supply, whereas cost reduction and risk management are related to the supply side. Mining firms have not pursued the demand side very much, if at all. This is probably due to the extreme difficulty of moving mineral products, bulky and unglamorous as they are, away from their

May 1, 2003