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By H. Lyn Bourne

This is the fifth annual tabulation of mineral royalty information. This tabulation, like the previous editions, includes all of the earlier data. There are also 60 new entries. In addition to royalty information, some entries show the cost of purchased reserves. Two articles relative to the evaluation of minerals reserves appeared in December, 1986. R.H. Paschall (In the Aggregate, ME, p 1139) wrote a good article, although it lacked specific royalty data. However, this author takes exception to two ideas in Paschall's column. Paschall contends that the royalty rate does not affect the mineral appraisal. This present author could not disagree more. Paschall also claims the location of an industrial mineral deposit is the only serious or practical caveat in comparing royalties. Comments received here from readers helped make the list of caveats that are cited each year. The readers will decide which factors influence the mineral value for their commodities of interest. Paschall's point about the relationship of the parties who are negotiating a royalty agreement is important and very well taken. The other article, written by William Vernon (Pit and Quarry, December 1986), gives a step-by-step process on how to conduct a mineral appraisal. The article cites three reasons for an appraisal: transfer rights; collateral for a loan; and taxation. A fourth reason is to establish adequate compensation for reserves lost through condemnation. This author has appeared in several court cases where compensation for loss of mineral reserves through condemnation required a mineral appraisal. Royalty rate becomes an important factor in the appraisal process, although the Pit and Quarry article refers to that part of the valuation equation as "profitability." Both articles were well written and are recommended reading for those interested in mineral valuations. The same caveats that have appeared in previous columns relative to factors that influence the value of reserves are restated. The data in the table serve as a general reference and are not intended to present an absolute scale of reserves costs. Several factors influence the value of any mineral commodity. The factors include: • location/transportation - especially significant for most industrial minerals; • market conditions both for the commodity and the company acquiring the right to mine; • quality or grade of the deposit as it reflects the amount of processing/beneficiation necessary to produce the finished product; and • legislative restrictions and conditions for mining a given material at a given site. These and other factors will significantly influence the cost of reserves. The table shows the range of royalties and the variations in the basis of computing the fees. In a few instances, it gives the cost of acquired reserves based on purchase price and quantitative estimates of the material in place. The table lists the commodity in column 1, and the subsequent columns give: • the location by state, US geographic area, or Canadian province ; • the cost - R for royalty and P for purchased cost; • the year in which the lease or purchase agreement occurred; and • comments or footnotes for more information. The cost column requires more explanation. The units may refer to cubic yards (/cu yd), cubic feet (/cu ft), short tons (/T), or acres (/A). 1 cu yd = 0.76 M2 1cuft = 0.28m3 1 st = 0.9072 t 1 acre - 0.4047 ha or m2

Jan 7, 1987

By Mike Tracy

This section of the Handbook deals with general principles to be evaluated in the development of a mining operation. It addresses the major issues that must be examined to fully evaluate a mining venture. Of course, one of the main topics to be evaluated is mine planning, which is covered in more detail in other sections (13, 17) of the Handbook and should be referenced in mine development projects. The topics to be discussed in this introduction include equipment and supplies, infrastructure, utilities, and project management. In any of the aspects mentioned, the current existing conditions at or near the mine site must be evaluated. This will include assessment of current use of utilities, infrastructure, housing, equipment suppliers, etc., as well as anticipated growth, both in the supply aspect of these systems as well as projected usage on these systems. After full assessment of both these aspects, an evaluation must be made as to the requirements the project will place on these items. Assessment must be made as to any up-grades required to bring the project on line, what impact the project will have on existing or expanded systems, and anticipated future growth impacts on support systems not only of the project but of other surrounding industry and urban devel-opment

Jan 1, 2008

By A. D. Davis, C. J. Webb, C. S. Johnson

The Belle Eldridge Mine is an inactive lead-zinc mine in Spruce Gulch south of Deadwood, South Dakota. Acidic mine drainage (AMD) produced at the site drains into Spruce Creek, a tributary of Whitewood Creek. The site is on U.S. Bureau of Land Management (BLM) property. Extensive fieldwork was done at the Belle Eldridge Mine through the cooperation of the BLM and the South Dakota School of Mines and Technology. The site was extensively mapped to identify physical and environmental hazards such as tailings, waste rock, collapsed buildings, adits and workings. An exhaustive search of the historical records of the Belle Eldridge Mine was conducted. Maps of the under-ground workings of the Belle Eldridge dating from the 1930’s and 1940’s were found. The maps were used to correlate currently collapsed features to old adits and tunnels. Using hand corers and a portable drill rig, waste rock, tailings and soil core samples were collected and depth to bedrock was determined and the total volume of waste and tailings pile were determined. Related work examined the hydrology of the site. The site is very complex hydrogeologically. Numerous underground and surface workings and tunnels add to the complexity. Several seeps are located at the site, one of which is producing AMD. Recharge to the site was studied, and a 100-year flood plain map was produced.

Jan 1, 2000

By G. M. Kintz

"Methods and costs of rock-dusting bituminous coal mines have been discussed in various publications by the United States Bureau of Mines and others.3 This paper discusses the present methods and cost of dusting at the Swastika mine of the St. Louis, Rocky Mountain and Pacific Co., Raton, N. M.In the Swastika mine the recommendations of the United States Bureau of Mines with regard to rock-dusting are followed at least as well as in any mine in the States of Wyoming, Colorado, and New Mexico. This mine is located at Swastika, N. M., approximately 4 miles west of the town of Raton and is in the Raton coal seam. The mine is rated as gassy and produces approximately 1,000 tons of coal per day.A mining system known as the ""room-and-pillar with cut-offs"" is used which results in recovery of nearly 100 per cent of the coal. The mine employs approximately 250 men.Ventilation is maintained by a Sirocco fan so arranged that the air current may be reversed and exhausting approximately 130,000 cubic feet of air per minute at 3 inches water gauge. This fan is supplemented by two auxiliary fans for emergency use. Three main entries penetrate the hill in a straight line for approximately 8,000 feet. The haulage is through the center entry, which is also used as the intake in conjunction with a two-compartment concrete-lined shaft located at the end of the entries. The main return for 3,000 feet inby the fan is 12 feet wide and 7 feet high. For this distance the ribs have been reinforced by a wall made of coke-breeze blocks plastered over with cement. Solid concrete blocks are used for the top row of blocks of the wall. Steel 10-inch I-beams spaced 40 inches apart center to center are supported on these solid blocks and thus support the roof. The next 1,000 feet inby has the same area, but the cement blocks extend to the roof, as no crosspieces are needed. The airways are kept clean and well rock-dusted.A rather unique system is used to handle gas feeders along the intake and haulage entries. There these feeders occur in the roof or where gas is apt to collect in high points along the haulage, tin funnels as large as 3 feet in diameter are placed near the roof. From these a 2-inch or other suitable-sized pipe is run into the return through the wall of the nearest break-through. A valve on this pipe line controls the amount of air pulled. These devices keep the high places clear of any gas, even when strong feeders are encountered.Fifteen-ton electric trolley locomotives are used on the main haulage and approximately 30 roller-bearing oars, each having a capacity of approximately 3,000 pounds of coal, compose a trip. All loaded tripe carry steel drags on the last car, and automatic derails are located at advantageous points throughout the mine.All loaded trips are thoroughly sprinkled on the sectional partings and at the main parting. The track is sprinkled every idle day, or if needed, every day; from a large tank mounted on a truck hauled by a motor. Neither nozzle nor spray is used, as these were unsatisfactory. The water leaves the tank. through a 11/2-inch valve and is permitted to flow on the road through a horizontal 11/2-inch T. Water is obtained from filling stations located throughout the mine. It is stated by the officials that the use of this method of sprinkling permits the entire haulage roadbed to be wetted down in two hours."

Mar 1, 1930

By N. Kumar, A. K. Dhawan, A. Varughese, S. K. Khullar

Abstract The in-situ stress field is one of the primary parameters influencing the performance of underground structures particularly in the Himalayas where there is strong influence of topography and geology on in-situ stresses. It is always advisable to measure the in-situ stresses, in whatever best way possible. Hydrofracturing is one of the methods by which in-situ stress can be measured. This paper briefly describes details of the concept of Hydrofracturing in arriving at the in-situ stresses of the rock mass at Pancheswar Project. The data obtained from the tests has been analysed, interpreted and the results are presented in this paper. Kurzfassung Das Spannungsfeld an Ort und Stelle ist einer der wichtigsten Parameter, die das Verhalten der Untergrund-Struktur beeinflussen, insbesondere in den Himalayas, wo die Topografie und die Geologie einen grossen Einfluss auf die oertlichen Spannungen ausueben. Es empfiehlt sich stets die Spannungen an Ort und Stelle so gut wie moeglich zu erfassen. Die Hydrofraktur bzw hydrografisches Zerstueckeln ist eine der Methoden, die bei den Messungen der oertlichen Spannungen verwendet werden koennen. Diese Abhandlung beschreibt kurz Einzelheiten ueber das Konzept von Hydrofraktur bei der Bestimmung der Spannungen an Ort und Stelle von der Felsmasse bezueglich des Projekts Pancheshwar. Die gewonnenen Daten aus den Messungen wurden analysieret und ausgewertet. Die Ergebnisse werden dabei vorgelegt. Sommaire Le champ de contraintes in-situ est un des paramèters principaux influencant l’exécution des structures souterraines particulierèment en Himalaya où les forces in-situ sont fortement influencées par les caractéristiques topographiques et géologiques de la région. La fracturation hydraulique est une technique qui permet de mesurer des forces in-situ des massifs rocheux. Cet article décrit brièvement le mécanisme de fracturation hydraulique et présente les résultats de mesure des forces in-situ des roches au site du projet hydroélectrique de Pancheswar.

Jan 1, 2003

By J. M. Provost

1. Estimates have been made for eight coal beds in Marion County, but only the Pittsburgh is important from a production standpoint at this time. The Pittsburgh bed has the largest recoverable reserve, and the Sewickley is second in importance. 2. Known measured and indicated reserves thickness of 14 inches and on 1,800 short tons estimated at 3,141 million tons, as of January lion tons is in beds 28 inches and more thick in all beds, based on a minimum per acre-foot of coal in place, are 1, 1955. Of this total, 2,983 mil-Areas in each bed were omitted from the estimate because available data relative to the bed characteristics were too meager for making an estimate that conforms with the definitions of measured and indicated coal adopted for this study. Should future drilling or development prove reserves in these areas, such reserves should be added to the total estimated reserves.

Jan 1, 1956

By G. E. McElroy

[The ventilation of development faces In nines for diluting Gas or dist concentrations and, in hot nines for providing air-motion cooling effect, by fan-pipe units discharging high-velocity steams of air close to the face, is an important phase of mine ventilation. The effectiveness of such units depends largely on the air-flow distribution between the pipe discharge and the face, n subject on which little definite information is available. A study of the air flow from grills into rooms3/ has provided some basic data, but under conditions so different from mine fan-pipe installations in development ends that the data are of doubtful application to mine installations, owing to differences in air-flow conditions.]

Jan 1, 1940

By John Plecash

This paper comprises a general outline of all of the developments, including the history, geology, mining, milling, power and transportation installations, at the gold mining operation of La Luz Mines Limited and the copper mining operation of its wholly-owned subsidiary, Rosita Mines Limited, both located in north-central Nicaragua. The low-grade, gold-bearing ore-bodies of La Luz Mines, contained in highly fractured and folded Lower Cretaceous sedimentary rocks, were from 1909 to 1928, mined and treated by primitive methods by the La Luz and Los Angeles Mining Company. The abandoned property was acquired by La Luz Mines Limited in 1936, and was equipped with modern machinery and put into production in 1939. Between 1939 and 1948, the daily rate of production was in-creased from 300 tons per day to 2,-000 ton per day. The ore reserves available for open-pit mining were depleted in 1954. Since then, the entire production has come from under-ground operations.

Jan 1, 1963

By Franklin M. Grynkewicz

The subject of bearing pile performance installed by vibratory hammers has been a matter of increasing study and continued controversy. A recent case study from a major bridge replacement project is discussed which provides encouraging data on the use of vibratory pile hammers as a primary means of pile installation and also presents the problems associated with its general acceptance. The bridge project case study foundations consisted of HP 14 x 89 pile sections, designed to develop capacity primarily in friction. Preliminary tip elevations were determined by traditional static analyses. Production pile installation was performed using an IHC S-70 Hydro-Hammer. Driving criteria and final production pile tip elevations were determined after preliminary indicator pile drive tests and static load test results at bridge pier cofferdam locations. Based on impact driven production pile performance, the Contractor wished to investigate vibratory driven piles as a means to accelerate construction schedule. Dynamic pile testing procedures were used as the primary measurement tool and test results were compared to the production pile drive records and prior static load tests. Field testing consisted of driving and monitoring with the PDA impact driven piles to the design tip elevation. Three vibratory driven piles were installed to the same tip elevation and immediately subjected to impact driving and dynamic testing to compare dynamic pile resistance. The results indicated that the site soil conditions were favorable for vibratory pile hammer installation. Recommendations and procedures for proceeding with vibratory hammer pile installation were presented to the Owner. These procedures included quality control in conformance with latest AASHTO recommendations. The Owner, in spite of the site specific data base and QA/QC procedures, would not accept vibratory pile hammer installation, due to the absence of precedence. It is concluded that for vibratory methods to become accepted a rational method of analysis, design and field QA/QC procedures requires development. In addition, the engineering community and Owners/Agencies must be more open to alternate methods of foundation construction. The continued development of dynamic methods of monitoring vibratory pile installation is considered to be key to the general acceptance of this installation procedure.

Jan 1, 1991

This field guide is designed for use in planning pollution control and reclamation activities on small sand and gravel operations. Its purpose is to assist operators in selecting environmentally desirable pollution control and reclamation procedures based upon their particular mining situation. The guide includes information on interpreting physical and cultural factors that must be considered in planning and implementing a mining and reclamation program, achieving environmental protection objectives, and improving community/industry cooperation. Included as appendices are a summary of state laws and a list of additional readings on the subject.

Jan 1, 1981

By D. H. Mullen, S. M. Runke, J. B. Cunningham

"SUMMARYThe coarse-grained granitic pegmatities of the United States have long been a source of many important industrial minerals, because of this, they have been studied intensively by geologists, mining engineers, and metallurgists. These studies have amassed a rather astounding array of published and unpublished information.Correlation of geological studies between individual pegmatites, as well as between major districts, has brought forth some semblance of order to the knowledge of the structure and Mineralogical composition of those highly complex and irregular deposits, making it possible to classify certain prgmatitites and pegmatitec zones into several groups of associated minerals; based upon the presence or absence of the minor minerals of beryllium and lithium. This classification or grouping of minerals, with the methods that have been developed for recovering certain of these minerals, makes possible a systematic approach to the winning of many of the industrially important minerals from pegmatite rock by a single integrated process.As the coarse-grained granitic pegmatites are composed primarily of,feldspar, quartz, and muscovite, the methods developed for separating and recovering them, as well as those methods developed for separating and recovering such minor minerals as spodumene and lepidolite, are important contributions to the over-all problem of pegmatite treatment. Some of these methods have been demonstrated in the laboratory only, whereas others have progressed beyond the laboratory stage arid are being employed in commercial operations.Recent laboratory investigations at Rapid City, employing both these early developments and the mineral groupings, have demonstrated that a single integrated process can recover muscovite, feldspar; and. quartz from the rejects of hand-sorting a typical muscovite-feldspar-quartz material. Employing a newly developed procedure for the flotation of beryl, the investigations have also demonstrated the possibility of recovering the beryl, in addition to muscovite, feldspar, and quartz, by an integrated process from a typical berylliferous pegmatitic material in which all of these minerals are present."

Dec 1, 1952

By J. K. Hrica, T. J. Orr, J. Navoyski, B. Macdonald, C. L. Hoebbel, J. L. Bellanca, B. Demich

Haul truck fatal accidents and injuries continue to be a significant concern for the mining industry. However, the availability of high-quality training materials continues to be limited. Near-miss incident accounts, if packaged well, could help fill this gap, because for every fatality, there are hundreds of reportable accidents and thousands of undocumented near misses. Researchers from the National Institute for Occupational Safety and Health (NIOSH) collected detailed accounts of 21 near-miss incidents in virtual interviews with mineworkers at surface mining operations across the country. From these interviews, researchers created four simulation videos. The videos bring these events to life through first-person retelling and various visual perspectives of actual events. Each video exemplifies a critical safety message and a common haul truck hazard. This paper describes the process of taking narratives and turning them into impactful visual stories. NIOSH plans to co-release these simulation videos with the Mine Safety and Health Administration (MSHA) to the mining industry to raise awareness and ultimately help reduce haul truck-related accidents and fatalities in mining.

Feb 1, 2023

By W. H. Dickinson

The performance of seven antiscalants spanning a range of chemistries was evaluated for control of calcium carbonate (CaCO3) formation in gold processing applications. Three preferred chemistries were identified which provided up to 100 percent inhibition in static jar tests when applied at 30 ppm dosage. The three products were further evaluated using a model carbon extraction circuit developed for this application. The test circuit enabled direct measurement of calcium carbonate formed on the carbon from a supersaturated solution under dynamic conditions. The antiscalants lowered CaCO3 buildup on the columns by 15 - 26 percent compared to untreated controls. Impact of the antiscalants on the rate and extent of gold loading onto a carbon adsorbent was evaluated in laboratory carbon-in-pulp (CIP) studies. The antiscalants generated a 25 - 35% increase in gold loading at gold extraction efficiencies up to 65%. On-site testing at a gold processing facility demonstrated that 10 ppm of the preferred antiscalant was able to fully suppressCaCO3formation in thickener overflow water.

Feb 27, 2013

By P. Mark. Hawley

Development of Barrick Gold?s Pierina Gold Mine in north-central Peru requires construction of a waste dump for disposal of non-ore grade materials stripped from the open pit to expose the ore. The waste dump site is located near the open pit in a U-shaped valley that is underlain by thin colluvial and morainal soils with locally thick peats and glaciolacustrine deposits. Bedrock underlying the site consists of variably weathered volcanics. The site is subject to moderately high seasonal rainfall and significant seismicity. The geotechnical quality of the waste rock is highly variable, ranging from low quality, degradable, soil-like materials containing appreciable quantities of silt and clay, to high quality, hard, durable, blocky waste rock. A hybrid dump design concept was developed that requires in-pit segregation of high and low quality waste, and selective placement of materials in the dump to maximize stability and enhance internal and subsurface drainage. The design includes a rock drain beneath the dump along the axis of the valley and a series of connected finger drains. Extensive peripheral diversions and stormwater control measures to inhibit infiltration of precipitation are also included. This paper discusses the unique challenges presented by the site and waste materials, the design methodology and stability analyses, and planned monitoring systems.

May 1, 2002

By Thorndycraftm R. B.

"PURPOSEThe purpose of this presentation to the Canadian Mineral Processors is to review gold heap leaching systems currently in use and discuss their applicability to Canadian ores. The author's experience with the development and operation of heap leaching spans the past four years at. Pinson, and visits to many ether heap leaches in the western United States.INTRODUCTIONBy way of introduction to the heap leaching system, I will describe in slight detail the method used at Pinson Mining in northern Nevada. This will be followed by a discussion of optional methods in use at other operations visited.The Pinson orebody is a finely disseminated, well-oxidized hydrothermal deposit. Gold particles are finer than 20- microns. The orezone hostrocks are metamorphosed and silici¬fied limestone and shale. Sulfides and carbonaceous materials are negligible.The Pinson open-pit mine has operated since June 1980. It produces 1500 tpd of C.I.P. mill feed averaging .10 oz gold per ton, and 1500 tpd of heap leach material averaging .025 oz gold per ton. Cutoff grades are 0.04 for mill feed, and 0.01 for heap leaching. Stripping ratio is 9 tons of waste and leach grade to 1 ton of mill feed.The project is located in northern Nevada at 4900 feet above sea level.,Winters are fairly severe, with freezing conditions affecting operations from early December through April. Although officially designated as ""high-mountain desert"" country, snow and/or freezing rain occur almost every week of the winter.To date, all Pinson production-scale heap leaching has treated run-90,000 tons of ore are stacked on 300 foot square clay leach pads. Cyanide leach solution is applied through ""wobbler"" sprinklers at .0025 gpm/sq ft for 60 to 90 days. The pregnant solution flows from the heap by gravity to plastic-lined ditches, into a collection sump and then through buried piping to the 2.2 million gallon pregnant solution pond."

Jan 1, 1984

By Gyimah Kasali

Rapid Load Testing was performed as part of an extensive drilled pier testing program for the University of California Berkeley Capital Improvement Program. The purpose of the program was to: (1) Verify the axial compressive design capacity values for the planned 24" piers, and to estimate the capacity of the existing 30" CIDH piers, and (2) To evaluate the seismic performance of the proposed drilled shafts. The Fundex PLT was used since the loading period of the PLT is very similar to the period of a seismic event, making it an ideal tool to model the pier response to seismic events. "Performance-based design" of structures subject to seismic loads has been of particular interest to UC Berkeley Seismic Review Committee and the Pacific Earthquake Engineering Research Center. The comparison of static tests to Rapid Load testing also provided valuable correlations. The program represents one of the most comprehensive drilled pier test programs on the West Coast. The testing program consisted of Rapid Load Testing using the Fundex PLT on 6 drilled piers. Rapid Load Tests were followed by conventional static compression and tension tests on selected piers, followed by another cycle of rapid load tests on the statically tested piers. The piers featured extensive instrumentation to allow detailed interpretation of the test result. Correlations were drawn to compare static load test result to that of the PLT in the particular soil profile, and the PLT also provided the data to analyze the ultimate seismic capacity of the piers. The load test results indicate that the ratio of interpreted failure load from the PLT data to the corresponding load from the static load test data is about 1.2 to 1.3 for the clayey soils underlying the test site. The results also indicate that the PLT offers an economical approach to defining the stiffness of drilled pier foundations subjected to seismic loads for use in performance-based design.

Jan 1, 2002

By T. Hudaverdi

Control of the particle size distribution of a muckpile after blasting is always an important subject for mining industry. Blasting has a significant impact on downstream processes such as loading, crushing and grinding. Improvement of blasting results provides increase in loader and excavator productivity due to increased diggability capacity, and increased bucket and truck fill factors. Suitable and uniform particle size distribution results increase in crusher and mill throughput and decrease in energy consumption in size reduction process. Digital image analysis technique has been used for many years in mining industry in order to determine blast fragmentation. The images of muckpile surface can be used to determine the mean fragment size (x50). The source of digital images can also be haul truck, leach pile, waste dump, stockpile, and conveyor belt. The screening that is conventional method to measure blast fragmentation is time consuming and expensive. Digital image analysis is a cost effective and faster method (1).

Jan 1, 2012

By R. L. J. Phillips

"The environmental impact of the Rabbit Lake project is presented. Baseline data for fish, water, air and radon collected in 1973, 1975, 1980and 1986, are compared with post-development environmental monitoring data. Predicted environmental impacts for the developed Rabbit Lake and B-zone deposits are compared to the actual impacts. INTRODUCTIONThe environmental impact of the Rabbit Lake project has been documented through the years in several submissions to the government agencies. In 1972, the environmental baseline study for the Rabbit Lake area was completed prior to any mining activity at the Rabbit Lake pit (Fig. 1).Sampling concentrated on Hidden Bay and Pow Bay, which received the treated effluent and the waters drained from Rabbit Lake respectively.A second baseline study was done on the Collins Bay area in 1980(Fig. I) in preparation for the mining of the B-zone pit. The detail in this study was considerably greater than the detail in the previous study. Collins Bay and Harrison Peninsula were the areas sampled. The B-zone deposit is being mined at present.With the discovery of the A-zone, D-zone and Eagle Point deposits, it was decided in 1986 to begin proceedings to obtain approval from Saskatchewan's Department of the Environment, and from the Atomic Energy Control Board to develop these deposits.In preparation, a third baseline study of both the Rabbit Lake and Collins Bay areas was done in 1986 and 1987. The emphasis was to establish the baseline at the three new deposits, to quantify the actual impacts of the existing Rabbit Lake operations and to confirm the Collins Bay B-zone (1980) impact predictions. The new deposits will allow us to continue to produce uranium into the future. In January 1988, Saskatchewan approval was received.Since 1975 in the Rabbit Lake area and 1980 in the Collins Bay area, routine environmental monitoring has been done. This has resulted in one of the largest and most comprehensive environmental data bases in North America in mining. By the time the Eagle Point deposit is mined to completion, there will have been data collected for approximately 40 years.Further discussions follow which describe the impacts of the past (1972 to 1984), the present (1985 to 1987) and the future. In addition, the past and present performances and the future plans of the .waste management systems will be discussed."

Jan 1, 1989

By D. G. Willard

The U.S. Department of Interior, Bureau of Mines has evaluated the potential resource and annual availability of cobalt from 27 deposits or districts in 11 market-economy countries. More than 95 pct of primary cobalt production from market-economy countries, mainly byproduct output from copper and nickel operations, was analyzed. Approximately 1,200,000 mt of cobalt is potentially recoverable at the demonstrated resource level. Very large additional resources exist, especially in laterite deposits, but are at the inferred level. The producing operations evaluated in this study are expected to produce about 19,000 mt of cobalt in 1989, significantly less than the available capacity of about 31,000 mt. More than 14,000 mt per year of cobalt is produced from copper-cobalt deposits in Zaire and Zambia, of which 11,000 mt can be produced at a copper price of $O.60jlb or less with a O-pct discounted cash-flow rate of return (DCFROR). Approximately 4,400 mt of cobalt is produced annually from nickel-cobalt deposits in six countries, of which about 1,800 mt (in Canada and Brazil) could be produced at a nickel price of $1.50jlb or less at a D-pct DCFROR. Approximately 200 mt per year of cobalt is produced from a cobalt mine in Morocco. Most of the evaluated nonproducing operations and prospects that could potentially produce cobalt as a principal product or byproduct would require a total cost (including a 15 pct-DCFROR) significantly exceeding January, 1989 market prices of the principal commodities. Principal-commodity dependence, transportation routes, cobalt toxicity, and other issues that could affect the availability of cobalt are addressed herein.

Jan 1, 1991

By Russel Delmar, Rick Everdell, Harry Charalambu, John Tait

Award of the Design/Build Agreement for construction of Ontario Power Generation’s (OPG’s) Niagara Tunnel Project was made after an intensive 8-month international procurement process. The 14.4-m diameter × 10.4-km long rock tunnel will divert 500 m3/s of water from the Niagara River to the Sir Adam Beck hydroelectric generating complex. The procurement process and Design/Build Agreement included features to address the owner’s requirements regarding risk allocation and cost and schedule certainty, while encouraging innovative ideas from the industry, both technically and commercially. The process included an international expression of interest and prequalification, followed by an invitation for design/build proposals to qualified proponents, and comprehensive proposal evaluations and negotiations with several respondent proponents. An honorarium was provided to the unsuccessful participants in the proposal stage. The resultant negotiated Design/Build Agreement includes Owner’s Mandatory Requirements, negotiated contract terms and conditions, performanceincentive bonuses and liquidated damages for schedule and water delivery performance, a multistaged Geotechnical Baseline Report, joint risk management, references to preexisting community impact agreements and measures to reduce impact on tourism. It also addresses regulatory approvals and permits, an owner controlled insurance policy that required reference to the International Tunneling Insurance Group (ITIG) Code of Practice for Risk Management as a condition of coverage, site specific safety, security and environmental plans, formal team building, a dispute review board, and escrow documentation.

Jan 1, 2007