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By C. Richard Tinsley

INTRODUCTION Project financing has been defined by various authors in this book. It is founded on reliance upon the project's own future cash flows and secondarily on the collateral value of the asset base developed. It is chiefly provided by the banking community who, after an assessment of the risks involved (See Chapter 9) analyse the company's presentation (See Chapter 10) in order to structure a financing package often at a leverage of up to 80% debt. This paper describes the various support and structuring techniques used to delimit and abate the risk components perceived from the banks' experience on project development especially for the period before cash flow is generated (pre completion). ADVANTAGES The advantages of project financing extend beyond the offloading of risks to banks. Among the advantages are the following: 1. Longer loan maturity than conventional, unsecured financing; 2. Loan disbursement and repayment tailored to specific mine; 3. Ability of a joint venture without a "track record" to raise financing; 4. Obtain financing where further direct borrowing (corporate credit) limited by existing indentures; 5. Possibility of arranging finance off-balance sheets; 6. Leverage return on equity; 7. Obtain tax savings with certain project financing structures; and 8. Obtain flexible loan repayment conditions. It can also be said that from the point of view of the company, project financing has certain disadvantages which can be summarised as follows: 1. Perceived higher cost (risk premium) compared with straight corporate credit; 2. More documentation; and 3. Need to negotiate risk-sharing aspects. The main attraction of project financing is the ability to pass certain risks on to the lenders within a flexibly funded transaction. (For a more detailed description of the specific risks see the author's paper at the beginning of Chapter 9. The same risk system is followed here.) The typical project financing has corporate support prior to completion and will usually carefully control the resultant cashflow after completion to ensure the bank does not unnecessarily assume further risks of an equity nature. WITHIN THE COMPANY'S CONTROL Operating Risk This is broken into three interrelated segments for ease of description. Technical Component: This must be specifically addressed if new technology or unproven adaptations are to be used. The banks will have scrutinized the sampling and bulk testing work, perhaps grilling the geological, mineral processing, metallurgical, and mining engineering staff or consultants directly. A number of supports are available such as: TECHNOLOGY GUARANTEE: Either the company itself or the process developer will guarantee that the technology will work for a period of, say, six months to two years after startup. If not, then financial penalties will apply although these are rarely sufficient to repay the loan. Many process developers are weak financially and may have little substance to back such a guarantee.

Jan 1, 1985

By Alex McEachern

MINING LEADS WAY TO PROSPERITY THE year 1937 will stand out in the history of mining and metal products in Canada as one of which we shall always be proud. The combined contribution of these industries played a large part in leading Canada back to prosperous conditions after years of stress and strain that left their mark upon business the world over. A review of general industry shows a marked improvement over recent years. The upward trend continued un-abated most of the year and not a few of the industries had all they could do to supply the demands. A fact that should be appreciated in a year of wheat failure over an extensive area of the Prairie Provinces is the shifting of the basis of Canadian prosperity from agriculture to that of mining and the use of metals. To the great demand for minerals of all kinds, our mines have well responded and many new high levels were reached. This reflects great credit upon the men who direct the activities of the Canadian Mining Industry. Possessed by a spirit which refused to accept defeat in 1931-1932, they began to increase the efficiency of their departments, explored all channels hitherto untried, and won through to a crowning success. Who among them dreamed that their country's extremity would be their Alex. McEachern opportunity, and that through their united efforts our young nation would be enabled to hold that high position she has attained in world affairs?

Jan 1, 1938

By L. C. IlsLey

In January, 1922, a conference relative to trailing cables for use with permissible mining machines was held at the Pittsburgh Experiment Station of the U. S. Bureau of Mines. At this conference it was recommended that the bureau take steps to investigate the rubber-sheathed type of cables and to bring about the establishment of a list of approved cables. Effective until such time as a complete investigation could be made, the bureau asked the several manufacturers holding approvals for mining machines to recommend cables for use with their machines. In general the cables recommended were tentatively approved. Due to the lack of available personnel, no actual tests of cables were made until mid-1927. Meanwhile a field investigation of trailing cables was made at 20 mines of three coal companies in western Pennsylvania, and samples of cables were obtained from the manufacturers for laboratory tests. Twenty-five samples of the concentric-type cable, representing the product of five manufacturers, were obtained for the tests. These cables were of four sizes, as follows: 3 cables of No. 2 B & S gage, 17 cables of No. 3 B & S gage, 3 cables of No. 4 B & S gage, and 2 cables of No. 6 B & S gage.

Jan 1, 1929

By James S. Browning

The Bureau of Mines conducted laboratory and small--scale continuous tests of weathered mica pegmatite ores from Hart County, Ga., to determine the technical feasibility of recovering commercial-grade mica concentrates by flotation. Two modifications of the Bureau-developed anionic-cationic method were used. In one method, sodium carbonate and calcium lignin sulfonate were used for pH control and quartz depression; this method yielded mica concentrates containing 98.5 percent mica with a recovery of 91.4 percent. In the other modification, lime and sodium silicate were used with the calcium lignin sulfonate; concentrates containing 98.9 percent mica with a recovery of 86 percent were obtained.

Jan 1, 1966

By W. T. Millar

Field reconnaissance and laboratory tests an clay from South Windsor, Hartford County, Conn., indicate that the clay is suitable for lightweight aggregate raw material. Exploration of the deposit supports the conclusion that the reserves of clay are sufficient for economical mining operations to produce lightweight aggregate. Preliminary tests indicated that the clay has a short bloating range. Initial expansion occurred at 2,000° F, and at 2,100° F the clay was slightly overfired and sticky. Rotary kiln tests verified the preliminary data, and these tests showed that the clay would make a good lightweight aggregate if the processing temperature and the kiln feed sizes were closely controlled. Lightweight concrete made from the processed aggregate had properties comparable to those of concrete made from a commercial clay aggregate.

Jan 1, 1964

By E. E. Maust

The present work is part of an ongoing Bureau of Mines effort to provide a better understanding of the fundamental phenomena involved in sulfide flotation, the role of oxygen in xanthate adsorption being one essential issue. Galena was chosen as the material around which to develop a conceptual model, partly because of its demonstrated oxygen sensitivity and partly because information on its properties and flotation behavior constitutes the largest part of the fundamental information available on sulfides of commercial importance. The model is formulated primarily in terms of surface electronic energy levels produced by oxygen and xanthate and is further developed using existing experimental evidence and its implications. Four major functions of oxygen are elucidated, and the relationship of these to the formation of lead xanthate, dixanthogen, and a surface compound is discussed. Though yet incomplete, the model provides a useful framework within which the results of diverse experiments can be related to one another in their proper perspective, as shown by a brief discussion and resolution of some apparently discordant results reported in the literature.

Jan 1, 1976

I. Domestic Production and Use: In 1981, 13 companies operated 32 primary aluminum reduction plants, with 3 firms accounting for 58% of production, Washington, Oregon, and Montana accounted for 32% of the total production; Texas, Louisiana, and Arkansas 16%; Tennessee, Alabama, South Carolina, and North Carolina 17%; other central and eastern States 35%. Based on published producer prices output of primary metal in 1981 was valued at over $7.5 billion. Aluminum consumption by 25,300 firms was centered in the East Central United States. Packaging accounted for an estimated 30% of domestic consumption in 1981, building 21%, transportation 18%, electrical la%, consumer durables 8%, and other uses 13%

Jan 1, 1982

By Robert W. Metcalf

Since the spread of the European war virtually cut off imports from Denmark, Belgium, and France, the Bureau of Mines has had numerous inquiries as to domestic sources of grinding pebbles and silex or other types of ball mill liners. USES Flint pebbles and tube-rill liners are used by grinders of certain ceramic materials to prevent contamination of the finished product by iron abraded from steal baler and liners. The feldspar industry is one of the largest users of flint grinding mediums; they are employed also by curtain grinders of talc and soapstone, ground sand and sandstone, quartz, and chalk. Some paint materials, such as lithopone, have been ground in pebble Flint pebbles have been used more or less in the past, especially by cement manufacturers, and, for fine grinding of gold, copper, or other ores in which iron contamination is not especially deleterious.

Jan 1, 1940

By Alfred Weiss

These volumes report on the study initiated by the U. S. Bureau of Mines to develop and apply a methodology to quantitatively assess the probability and potential benefits of technological innovation over the next twenty-five years. The potential was recognized for new technology to solve copper industry problems in the United States. Objectives of the study were to: (1) Develop a methodology to obtain the opinions of mineral experts about future events -their likelihood of occurrence, and, conditional on occurrence, when and to what extent they are likely to occur; (2) Identify, select, and describe potential technological innovations which would have significant impact on copper production; (3) Implement the methodology and obtain the opinions of the mineral experts regarding selected copper technologies; and (4) Analyze the expected future benefits of successful technological innovations :n the copper industry. Although individual technologies are continuously examined throughout the copper 'community', this study is the first known comprehensive forecast of future copper technology. This study is also believed to be unique 1n that it represents the consensus opinion of over sixty expert copper technologists on the expected use of innovative technology in the industry over the next 25 years. The report is contained in three volumes.

Jan 1, 1983

By Alfonso Guzmán da Silva

El análisis del trabajo señala la importancia y aplicación del proceso Sink & Float en la aceleración de la industria minera metálica, la no-metálica y la del carbón del Perú. Dicho procedimiento que implica la separación de una mezcla de partículas de densidades distintas a través de la diferencia de las mismas, tiene como ejemplo más próximo de su ejecución, a la compañía minera Milpo S. A., así como la primera planta instalada para la pre-concentración de minerales en el Perú, la corporación minera Castrovirreyna, en Huancavelica.

Jun 20, 1954

By Donald F. Smith

This report describes the construction and calibration of two ice calorimeters and includes results of high-temperature heat-content measurements, made by the Federal Bureau of Mines, on rubidium fluoride, hafnium tetrafluoride, cesium chloride, and cesium iodide. The heats and entropies of fusion of rubidium fluoride, cesium chloride, and cesium iodide have been calculated at their respective melting points using equations derived from the experimental heat-content data. Hafnium tetrafluoride did not melt within the range of temperatures investigated. Heat and entropy of transition of cesium chloride from the alpha to the beta form were also determined. INTRODUCTION Free-energy data usually afford the cheapest and quickest means of determining the feasibility of experimentally untested reactions. For known reactions, free-energy data show the variation of the equilibrium constant with temperature and make it possible to calculate, without experiment, the maximum ratio of product to raw material for a given chemical process.

Jan 1, 1961

By W. Norman Sims

A number of forces are at work that are now having an influence on coal handling systems. Changes are occurring and will be occurring at an increasing rate during the next few years. 1. Environmental concerns will dictate that dust pollution and spontaneous combustion and its resulting problems be rigidly controlled. 2. Slurry pipelines will be a reality despite the opposition of the railroads because they are economical and make good business sense. Artifical roadblocks can only survive for a limited time. 3. Coal is now and will remain the most economic fuel, particularly for power generation. This is true in most of the developed nations not just the United States. Increase in demand requires a close inspection of transportation systems. 4. A projected major increase in the export of U.S. coals may never occur without major port developments not the least of which will be the ability to accommodate large ships without demurrage time now affecting such shipments at U.S. Ports.

Jan 1, 1982

By Lloyd Williams

1. The investigation shows that the bed identified as Wilder in this report is the only bed in Overton County that has produced commercial coal and is the only bed in which coal reserves were estimated for this report. Three other coal horizons were recognized but lacked enough data for reserve estimates. 2. Known measured and indicated reserves of coal, based on a minimum bed thickness of 14 inches and on 1,800 tons per acre-foot of coal in place, are estimated to be 19 million short tons, as of January 1, 1953. Of this total, 10 million tons represents coal 28 inches and more thick. Areas of the Wilder 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, 1955

By J. T. Dunham

Zirconium has possible use in industry where severe corrosion conditions are encountered because it resists attack from a variety of corrosive environments. However, very little experimental testing has been done to evaluate the corrosion behavior of zirconium when simultaneously subjected to high tensile stresses and exposed to corrosive environments. This investigation was initiated for an evaluation test, but was limited to environments consisting of ferric chloride solutions which were known to attack zirconium and were shown to promote stress-corrosion cracking in preliminary tests. Tests for cracking susceptibility were conducted by the Bureau of Mines to show the effect of stress, solution concentration, air aeration of solution, and the method of mechanical processing. Tensile stress was applied to the specimens by a constant-load method which proved more reliable than a constant-strain method.

Jan 1, 1961

By W. W. Agey

An inexpensive technique that laboratory studies indicated would significantly reduce seepage in irrigation canals was devised and tested through research sponsored by the Bureau of Reclamation and the Missouri River Basin Field Committee. Laboratory tests simulating optimum field conditions determined that easily applied sodium carbonate solutions made test beds of canal lining materials virtually impermeable for long periods. The study comprised alternative laboratory treatments of 3-inch-deep test beds of canal earths with 74 water-soluble chemicals in search of one 01' more that would effectively improve the water barrier characteristics of the component clays. Sodium carbonate, one of the least expensive, was among the most effective. The addition of 0,4 lb of reagent per sq yd greatly reduced the seepage from typical, highly permeable test beds. The reagent penetrated and sealed surface for about a 1.5-inch depth.

Jan 1, 1965

By David Schlain

The galvanic corrosion properties of titanium in contact with commercially pure aluminum, copper, or type 302 stainless steel in some of the common organic acids were investigated. Acids used in these experiments were 10 percent formic, acetic, lactic, citric; 1 percent oxalic and tartaric; and 9 percent oxalic. Electrode-potential measurements and several types of galvanic couple experiments were carried out. Solutions were aerated by three methods: Flow of air, flow of helium, and natural aeration. Work was done at 35° C. with couples consisting of equal areas of the 2 metals. Titanium was resistant to corrosion in most of the organic acids studied, whether alone or in contact with a dissimilar metal. However, titanium coupled with aluminum did corrode in 1- and 9-percent oxalic acid solutions. Contact with titanium usually caused aluminum to corrode by galvanic action. Copper was subject to galvanic attack in 10-percent acetic acid with a flow of air. Contact with aluminum to some solutions in which titanium is ordinarily inert and noble with respect to aluminum caused titanium to corrode

Jan 1, 1956

By H. D. Hunt

This paper which describes the milling practice of the Miami Copper Co. is one of a series being prepared by the United States Bureau of Mines. LOCATION The mine, concentrator, and other surface plants of the Miami Copper Co. are located near the town of Miami in the Globe-Miami mining district of Gila County, Ariz.

Jan 1, 1932

By Subrahmanyam T. V, Rao V. D

GOLD, the most important and highly coveted valuable metal, is being sought and exploited in almost all the geological environ- ments by the developed, developing and underdeveloped coun- tries of the world. Brazil, one of the five largest countries of the world, has similar geological and lithological environments as of Africa, Australia and Canada and also produces this noble metal. With the recent gold rush in Serra Pelada Hill in Para State of Brazil and the consequent migration of a large number of enter- prises to the Amazon region in search of geological conditions similar to that of Serra Pelada, the status of Brazil in gold produc- tion has been considerably elevated to be among the first five of the world. The principal geological environments or the lithologies where gold can be explored are the greenstone belts, banded iron for- mations, quartz lodes and placers; and the tectonic controls like shear zones in these horizons, or the tectonic relics or the annular- structures that limit the quartz vein systems in felsic as well as volcanogenic systems and epithermal models. The greenstone, BIF associations are present in all the Archean-Proterozoic ter- rains in Central and Northern Brazil. The quartz boudins in Al rich schistose rocks and the weathered and chemically enriched

Jan 1, 1988

By P. A. C. De Ruiter

The Lower Cretaceous salt deposits of the Gabon Basin and Congo Basin were said down on ton of an Burly Cretaceous Lato Jurassic, continental graben fill that represent!) the rifting phase of the Afro-American continent. The salt 13 characterized by high percentages of potash and magnesium salts and the scarcity of sulphates and carbonates. The salt probably originated from a brine that was already enriched in high-soluble salts before entering the Gabon Congo basins. Their low-solubility equivalents are found in the Cuanza Basin of Angola. Commercial mining of the potash salt is only possible in those onshore areas where it is essentially undisturbed, shallow and of the right chemical composition. These conditions are net in Congo where the Holle mine produces from rich sylvinite deposits.

Jan 1, 1978

By Clark Harrison

It is not uncommon for overall quality of coal from a mine to deteriorate as the mine is developed or for an improved-quality coal specification to be imposed during the life of the mine. Either of these conditions typically results in management pressuring mine personnel to take greater care in delineating the seam from top and bottom rock. When mining and seam conditions require a portion of the seam to be removed to ensure sufficient rock is removed to meet the quality specification, physical-coal cleaning may become economically competitive with in-pit seam grooming. The additional cost of coal cleaning may, in some cases, be justified by permitting higher recovery of the coal seam than is possible when cleaning the seam with excavators in the pit. This paper compares projected coal cleaning results with present in-pit grooming techniques and reports the economic results.

Jan 1, 1987