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By P. C. Fletcher, E. Kaya

The Bond grindability testing procedure has been standardized to measure the same grindability values, i.e. Bond work index (BWi), for the same ore when tests are performed in different laboratories or by different operators. This is accomplished by the standardization of mill dimensions, tumbling speed, grinding ball charge weight and distribution, sample ore charge weight in the mill and operating practice. The results of this investigation reveal that the Bond work index grindability values may differ substantially with different standard Bond ball mills. This paper will review the results.

Jan 1, 2002

By R. K. Sinha, B. S. Choudhary, Desh Deepak, A. K. Mishra, Hemant Agrawal, Shankar Kumar

There are several methods (empirical, statistical, and machine learning tools) to calculate blast-induced ground vibration. Still, due to complications in the blasting procedure, under varying blasting loads and strata conditions, it is not easy to predict and simulate blast vibration precisely. Therefore, a study was conducted to simulate the field blast data in Ansys software using explicit dynamics. For this study, monitoring of ground vibration for 20 single hole blasts was carried out. The density of emulsion explosives was in the range of 0.9 to 1.15 g/cc. In the laboratory, rock properties were determined from the rock sample collected from the mine site before blasting. The in-hole velocity of detonation (VoD) and the density of the emulsion explosive were also determined. These parameters were used for numerical analysis to know the ground vibrations at specified points. The results of ground vibration predicted by the model are validated using field data.

By A. Sobhy

Froth flotation is a widely used, cost effective coal cleaning process. However, its high process efficiency is limited to a narrow particle size range between approximately 50 to 600 µm for coal and 10 to 100 µm for minerals. Beyond this range, the efficiency of froth flotation decreases sharply, especially for difficult-to-float coal fines of weak hydrophobicity (e.g., oxidized coal). This study was aimed at enhancing recovery of an Illinois fine coal sample using a flotation column featuring a hydrodynamic cavitation nanobubble generator. Nanobubbles that are mostly smaller than 1 µm can be formed selectively on hydrophobic coal particles from dissolved air in fine coal slurry. Results indicate that combustible recovery of a -150 µm coal was increased by 5-50% for different size fractions in presence of nanobubbles, depending on process operating conditions. Other major advantages of the nanobubble flotation process include lower collector dosage and air consumption since nanobubbles are produced from air naturally dissolved in water and they act as a secondary collector on particle surfaces, thereby resulting in considerably lower operating costs. Key words: Cavitation; coal; froth flotation; nanobubble.

Feb 27, 2013

While SME is hosting its Annual Meeting at the Phoenix Convention Center, Feb. 28 to March 3, one of the finest collections of mining history will be on display just 15 blocks away at the Arizona Mining and Mineral Museum. Inside the museum, visitors will be treated to a treasure trove of minerals, gems, me¬teorites, rocks, fossils, mining artifacts, historical exhibits and interactive displays on modern mining. The museum is located at 1502 West Washington. For SME Annual Meeting attendees, this is a free, eight-minute Dash bus ride 15 blocks west of the Phoenix Convention Center.

Jan 1, 2010

By Paul Eger

The use of wetlands to treat mine drainage has become increasingly common, particularly as more information is available on their operation and construction. However, the lifetime of each system is still, at best, an estimate. Treatment lifetime depends on the types of processes that provide the majority of the metal removal. Anaerobic systems (vertical flow systems) rely primarily on sulfate reducing bacteria, which reduce sulfate to sulfide and generate alkalinity. Metals can be precipitated as sulfides, and acidity is neutralized. These systems can remove over 90% of the metals and increase pH from around 4 to over 7. The bacteria will remain active as long as the system remains anaerobic and contains an adequate supply of sulfate and small chain organics. Although estimates of lifetime made on the total carbon in the system suggest that lifetime should exceed 20 years, data from field and laboratory studies show that the rate of sulfate reaction decreases with time, and that after several years rates decreased substantially. To maintain acceptable treatment, either additional organic material must be added or the total metal and acid load to the system would need to be reduced substantially. Aerobic systems (overland flow wetlands) can effectively remove metals from neutral mine drainage by reactions with organic material in the substrate. Over 90% of the copper and nickel have been removed in aerobic systems treating mine drainage in Minnesota. The primary removal processes in these systems include adsorption, ion exchange and complexation, which are finite; removal will cease unless new removal sites are generated. Two wetlands built in Minnesota have been successfully treating mine drainage for 12 years. At one of the wetlands, the annual production of new removal sites has been estimated to be equal to the annual metal input, and, as a result, metal removal should theoretically continue indefinitely.

Jan 1, 2005

By R. G. Benson, P. R. Wotruba, K. W. Schmidt

Introduction The Fortitude deposit is located in Nevada's Battle Mountain mining district in the central Great Basin region of the Basin and Range province of the western US. The deposit is at Copper Canyon in the southernmost portion of the district, about 19 km (12 miles) southwest of Battle Mountain (Fig. 1). Mining activity in the district began in 1866 (Roberts and Arnold, 1965). Base and precious metals were mined by underground methods intermittently until 1955. Placer gold was first discovered at Copper Canyon in 1912. Moderate scale dredging of alluvial gravel at the mouth of Copper Canyon was conducted by the Natomas Co. from 1944 to 1955 (Johnson, 1973). In 1967, Duval Corp. began large scale open-pit copper mining. (Sayers, Tippett, and Fields, 1968). Copper prices decreased and precious metals prices increased in the mid-1970s so Duval's exploration efforts at Copper Canyon shifted to precious metals. These exploration efforts resulted in the discovery of the Tomboy-Minnie deposits and shortly afterward, the Northeast Extension deposit at Copper Canyon (Blake, Wotruba, and Theodore, 1984; Fig. 2). The Fortitude deposit was discovered in late 1980, after Duval had proceeded with precious metals production at Copper Canyon. Converting the existing plant facilities at Copper Canyon to a precious metals recovery system was completed in 1978 (Jackson, 1982). Production from the Tomboy-Minnie deposits began in early 1979. Precious metals production moved to the Northeast Extension deposit in 1982. In late 1984, after three years of preproduction stripping and mining of the Upper Fortitude ore zone, production from the higher grade Lower Fortitude ore zone began. Currently, Battle Mountain Gold Co. operates the Fortitude deposit. Production from the Battle Mountain mining district before 1967 included 4.6 t (150,000 oz) of gold, 65.3 t (2.1 million oz) of silver, 13.6 kt (15,000 st) of copper, 4.5 kt (5,000 st) of lead, and 13.6 kt (15,000 st) of zinc (Roberts and Arnold, 1965). At the time of Duval's 1967 start-up, ore reserves at Copper Canyon included 12.6 Mt (14 million st) in the East ore body and another 3.6 Mt (4 million st) in the West ore body. Both had average grades of 0.79% copper, 16.1 g/t (0.47 oz per st) silver and 0.86 g/t (0.025 oz per st) gold (Blake et al., 1984). The Tomboy-Minnie deposits collectively contained 3.5 Mt (3.9 million st) of ore grading 3.09 g/t (0.09 oz per st) gold and 9.6 g/t (0.28 oz per st) silver. The Northeast Extension reserves were identified as 1.4 Mt (1.5 million st) of ore with an average grade of 2.9 g/t (0.085 oz per st) gold and 5.1 g/t (0.15 oz per st) silver. Initial total reserve estimates for the Fortitude deposit were 14.5 Mt (16 million st) grading 5.14 g/t (0.15 oz per st) gold and 29.8 g/t (0.87 oz per st) silver (Jackson, 1982). Therefore, before large scale mining, the Copper Canyon area contained a minimum of 102.6 t (3.3 million oz) of gold and 541 t (17.4 million oz) of silver as mineable reserves. The Fortitude deposit reserves as of Jan. 1, 1985 were 10.6 Mt (11 million st) grading at 5.28 g/t (0.154 oz per st) gold and 28.5 g/t (0.83 oz per st) silver. Currently, the company is producing 6.8 t (220,000 oz) of gold and significant amounts of

Jan 7, 1986

By Z. T. Bieniawski, José Miguel Galera, Benjamín Celada

TBM case histories from over 400 tunnel sections are analyzed presenting a comprehensive application of the Rock Mass Excavability (RME) index (Bieniawski et al.2006). The paper introduces two new adjustment factors, called the Factor of Tunnel Length and the Factor of Crew Effectiveness, which were established to represent more realistically the interaction of the rock mass characteristics, the TBM parameters and the performance of the crew operating the machine. A new correlation is provided for predicting the average rate of advance of double-shield TBMs working specifically in the double-shield mode.

Jan 1, 2007

By Rafael C. Castro, Geoffrey Hughes, Fredrick (Rick) Vincent, Philip H. Albert

Seven pairs of drop and ventilation shafts, between two and nine feet in diameter, will convey combined sewer flow to a 230-foot-deep, 26-foot diameter storage tunnel. This paper will present case histories for each site. Discussion will include functional requirements, program and site access constraints, structural design, geology, the variety of excavation and lining construction methods used, and lessons learned. Noteworthy observations include the importance of assuring competent ground sup-port at the soil-bedrock interface and of achieving tight verticality tolerance using both top-down and raise bore excavation methods.

Jan 1, 2007

By Roy C. Fedotoff, Jon Hurt, Gregg Sherry, Gilbert Tang

The 1,380 m (4,200 ft) long New Crystal Springs Bypass (Polhemus)Tunnel (NCSBT) will replace the existing Crystal Springs Bypass Pipeline. This tunnel project is part of the SFPUC’s $4.3 billion capital improvement program to repair and seismically upgrade their aging pipelines, tunnels, reservoirs and dams that provide drinking water to more than 2.4 million customers in the San Francisco Bay Area. This paper describes the development of the tunnel alignment and design, and the complex ground conditions of the Franciscan Mélange. Of particular interest is the challenge of tunneling with a possible downhill grade of 3%, a rigorous environmental process and incorporating the lessons learned from 1960s construction of the adjoining Crystal Springs Bypass Tunnel.

Jan 1, 2007

Queensland?s underground coal industry, as a whole, has arguably the best gas monitoring systems in the world. Each mine utilizes real time, tube bundle and onsite ultra fast gas chromatograph systems. Queensland?s mining legislation has specific requirements for mine gas monitoring but there is no requirement for all three techniques. Industry has however identified the need for all three and adopted this as a standard, resulting in over sixty thousand gas results collected each day. Automated monitoring systems are programmed to alarm for gas concentrations, gas ratios and explosibility. These alarms are then used to initiate predetermined actions to take control of the situation and prevent the compromise of safety to workers and the loss of resources. Dedicated software packages have been developed to assist in the interpretation of the large volume of results generated. The real time systems are used for real time warning, essential for incidents such as belt fires. Tube bundle systems suit long term trending used for identification of the onset of spontaneous combustion or for the determination of explosibility during the routine sealing of worked areas. Gas chromatograph analysis is used to provide a complete analysis and provides results for hydrogen and ethylene, key gases used in the assessment of spontaneous combustion. It is also crucial during significant spontaneous combustion events and coal fires to use gas chromatography to determine the explosibility status of the underground atmosphere otherwise the severity of the situation is likely to be under estimated. This paper outlines the need for all three techniques for assessing the underground status and outlines advantages and disadvantages of each.

Jan 1, 2009

What is the preferred electrolytic cell design and why? Hall: Considerable research remains to be done on electrolytic cell design. Studies are presently being conducted to determine optimum voltage and amperage. Zadra cells, which were used in some of the first carbon plants, are efficient when properly installed. Gold and silver are deposited on large-capacity, cylindrical steel wool cathodes. At times high value sludge falls from the cathode to the bottom of the cell. Rectangular cells, which were developed at some smaller operations in Nevada, require less floor space and have some desirable features in that cathodes can be moved and sludge can be removed from cell bottoms without actually shutting down the circuit. In South Africa two types of cells using graphite and diaphragm configurations are being tested. Duncan: The rectangular cell has one problem it's easy for shortcircuiting to occur. If you don't have a good seal on the side of the tank and on the bottom, the solution is going to want to flow around the bottom and sides of the cathodes and you're going to get poor performance in the cell. That is the advantage the Zadra cell has over the rectangular cell. With good sealing, which is a must, you should be able to get a ratio of the value of the solution going in to the value of the solution coming out of 10 to 1. Ken, can you tell me what you're attaining on the Zadra? Hall: At the Homestake gold operation in Lead, the cathode in the No. 1 electrowinning cell is loaded to about 600 ounces when it is moved to the refinery. At this time the No. 2 cathode is moved to the No. 1 cell. The No. 3 cathode is moved to the No. 2 cell and a cathode with new steel wool is placed in the No. 3 cell. In rectangular cells this sometimes is not possible because the loading on the cathode in the last cell may be as high as that in the No. 1 cell. As Don has pointed out this can probably be prevented by good seal design between cathodes. Potter: At the risk of sounding as though I'm straddling the fence, I really believe that either the round cell, as developed by Jack Zadra, or the rectangular cell will do an acceptable job. The Zadra is a fine unit. Leaks are not unknown but there are not very many. However, the rectangular cell is very saving of floor space. Plastics have been greatly improved during the past year or two and there is a very efficient design for the rectangular cell. It would have six cathodes in it and contain about 25 ft of steel wool. The body of this rectangular cell would be reinforced fiberglass plastic but with an integral lining of a high temperature plastic. I think either cell is so efficient and reliable that I would almost be tempted to flip a coin depending on floor space requirements. Either cell can be used to pull a loaded cathode and to advance the lesser loaded cathodes. Don, what is the configuration of your cell? Duncan: The Pinson rectangular cell has dimensions 2 ft wide, 30 in deep, and 10 ft long-long enough to take a dozen cathodes and anodes. We are currently using six of each but are not up to full capacity as yet. It's a steel tank coated with rubber. We have copper bus bars, which brings to mind that the last cathode in the tank, in one instance, was loaded heavier than the first one. That was probably a function of poor contact between cathodes and the bus bar. You can have erosion of the bus bar and if you don't get current flowing into the anode and out of the cathode, the cells will not function properly. Kappes: Just a few comments on cell design. In an alcohol stripping circuit we are running in Beatty„ NV, we are using PVC pipes for all circuitry piping and a commercial polypropylene electrolytic cell. They seem to be working quite nicely. The cell itself has eight cathodes measuring 18 in2. At six gallons per minute flow into the cell, at an average gold content of about 500 ppm, we seem to get good loading on the first three to four cathodes and not much on the end cathodes. At 12 gallons a minute flow we seem to be seeing gold uniformly along all eight cathodes. We are running at quite a high amperage level, about 400 amps into that cell. Gene McClelland, US Bureau of Mines, Reno Research Center (from the floor): I was associated with a company where the packing density of their steel wool cathodes was much too high and created some short-circuiting problems in their electrowinning circuit. I would like to ask the panel if they can recommend a packing density for cathodes in pounds of steel wool per cubic foot. Hall: The weight of steel wool put on one of our cathodes is 10 lb and the dimensions of the cathode are such that density would be about 0.75 lb/ft3. Duncan: I made a rough calculation and I'm estimating about 2 lb/ft3. Potter: In checking over a number of electrowinning operations, I found apparently very satisfactory operation within the limits that have been mentioned. I have come to a figure of about 0.5-1.0 lb of medium grade steel wool per cubic foot packed as uniformly as possible, of course. One consideration in packing is the fact that there should be good contact between the steel wool and the conductor. Operators tend to compact the steel wool more than would be desirable just to try to maintain good contact.

Jan 10, 1981

By James J. Kabat, James A. McDonald

Impregilo/SA Healy JV recently completed this Project using the first slurry shield TBM’s in the United States. The Project used two TBM’s to mine 18,000 feet in sands, gravels, and silty alluvial materials under the Willamette River and downtown Portland, Oregon. This paper discusses alignment and geological conditions, equipment selection and plant setup, and tunnel excavation means and methods, parameters, and results. Extensive hyperbaric operations were required and will also be discussed.

Jan 1, 2007

By N. Sahin, K. Baris, A. Ozarslan

This paper aims to assess the current and future role of coal in energy strategy of Turkey and evaluates the compatibility of the policies to the EU energy policy and strategy. The Turkish government set targets to utilize more coal reserves of the country in next decades. However, the country is also in the process of becoming an EU Member State, hence, it is expected that the energy policies have to comply with the EU. Moreover, Turkey ratified Kyoto Protocol, thus the country should limit greenhouse gas emissions. Clean Coal, Carbon Capture and Storage (CCS) technologies are expected to become an important instrument for the mid-term reduction of CO2 emissions from coal-fired power plants. An alternative technique to the conventional CCS methods is CO2 sequestration by mineral carbonation. Turkey has significant resources of magnesium silicate minerals (olivine, serpentine) deposits which can be utilised in CO2 sequestration by mineral carbonation method.

Jan 1, 2011

In Alaska?s southwest corner, in the Bristol Bay region, 476 holes have been drilled to help define the size of the Pebble Project. The results indicate that the deposit holds close to 32 Mt (72 billion lbs) of copper and 2.9 Gt (94 million oz) of gold. The Pebble Partnership, an Alaskan limited partnership of Anglo American and Northern Dynasty Minerals, owns the project that consists of two world-class mineral deposits. Currently in the prefeasibility and prepermitting stage of development, the Pebble Project is one of the largest and highest profile exploration projects in North America. History The Pebble West Project was originally discovered in 1988 by Cominco (now Teck Cominco). Drilling programs in 1997 defined a near-surface mineral deposit of 1 Gt (1.01 billion st). Minerals found included copper, gold and molybdenum. Northern Dynasty Minerals acquired the property in 2001 and, by 2005, it had confirmed a measured and indicated resource of 4.1 Gt (4.5 billion st) containing 1.2 kt (42.1 million oz) of gold, 11.2 Mt (24.7 billion lbs) of copper and 612 kt (1.35 billion lbs) of molybdenum and additional silver. By September 2005, Pebble East, a deeper, but richer deposit had been found. Drill data by the end of 2005 confirmed a 3.4-Gt (3.7-billion st) inferred resource containing 19 Mt (42.6 billion lbs) of copper, 1.2 Mt (39.6 million oz) of gold and 1.2 Mt (2.7 billion lbs) of molybdenum.

Jan 1, 2009

By John Kinneen, Sunghoon Choi, Arne Fareth, Edward S. Barboe, Kyle R. Ott

A new water treatment plant is to be constructed for a portion of the water supply system of New York City. The project includes construction of new water conveyance tunnels crossing perpendicular and sub-parallel to the existing pressurized water tunnel at two locations. A study was conducted to evaluate the impact of new tunnel construction on stability of the existing tunnel and hydrojacking potential in the surrounding rock mass. This paper introduces a practical approach to evaluate tunnel interaction, expressed in terms of rock-liner interaction, stress-induced stability and hydrojacking failures. A simple method to evaluate hydraulic and mechanical properties of concrete liners and jointed rock mass is also presented.

Jan 1, 2007

By Jürg Schlumpf

Concrete is one of the decisive construction materials, also for the AlpTransit Gotthard Tunnel. The client has many requirements, and many are the solution possibilities that concrete systems can offer. Cement producers and concrete admixture manufacturers have been challenged to design and test jointly concrete systems for cast and sprayed concrete. The testing operation followed the scenario laid out by the Gotthard AlpTransit Project management?s instructions ?Testing system for concrete mixes.? Various supplier teams have applied for the concrete systems for sections Amsteg/Erstfeld, section Sedrun and/or sections Bodio/Faido and have also followed through with the tests. As was to be expected, the rate of failed mixes matched the level of the requirements. Thanks to this system, it was nevertheless possible to test complete concrete systems for all sections and to get them approved. The joint ventures tendering for the contracts were allowed to include only approved mix designs in their bids. Workability and durability are of paramount importance for cast and sprayed concrete mixes. Durability is influenced by the chosen mix design where binder concept and well-defined water content, i.e., impermeability, are determinant. Aggregates for AlpTransit are to be considered as given. The concrete mix design also determines workability. Because ambient conditions and also requirements with respect to workability are subjected to change, it is necessary that the mix designs include control measures. The choice and number of components for the concrete systems (cement, additives and admixtures) allow adaptation to changing conditions. For AlpTransit such adaptive measures must meet very strict requirements.

Jan 1, 2008

By William R. Bond, Jim V. Rouse

Introduction The pressure/vacuum (p/v) lysimeter or soil water sampler has become useful for monitoring vadose zone or unsaturated zone water conditions. The soil water sampler was first introduced around 1961. It was used as a monitoring and research device for studies in agriculture and soil contamination around landfills. Since then, it has been used for many purposes. The use of p/v lysimeters at mining facilities to monitor for solution loss is a relatively new idea. The primary purpose of the lysimeter here is to function as an early warning system. It detects leakage through liners of tailings ponds, heap leach pads, and leachate holding ponds. Their use has proven valuable for collecting baseline data and detecting loss of precious leachate fluid. Different lysimeter designs are capable of vadose moisture sampling from near the surface and down to 90 m (300 ft). They are also capable of sampling soil moisture or saturation plume contaminants from areas not accessible by conventional water well installations. The most common installations are usually simple and cost-effective. In many cases, they can be installed without the use of heavy drilling equipment. A properly placed and installed lysimeter can detect solution leaks in several days or weeks. A conventional perimeter monitor well may take months or years to detect a leak of the same magnitude. A discussion on the general design and installation of p/v lysimeters will give an understanding of its versatility. Three case studies of lysimeter installations at mining sites will be examined in detail. Design, Installation, and Sampling Design The basic design of a p/v lysimeter chamber consists of a porous material through which the soil is drawn into a collection chamber. Access tubes run from the unit to the sample station at the ground surface. Most units currently available range from 25 to 76 mm-diam (1 to 3 in.-diam). The sample collection chamber, or body, can vary from 0.6 to 1.8 m (2 to 6 ft) in length. The body can be constructed of PVC casing or Teflon, depending on the installation desired. The collection chamber functions as a holding reservoir for the collected soil moisture. The intake, or porous material, on the lysimeter is the most complex and vulnerable portion of the unit. The pore size selection varies based on the needs of the installation, type of fluid to be sampled, and type of soil material surrounding the unit. Teflon (PTFE) and porous ceramic are used in fabrication of the porous inlet portion. When using a Teflon material, which is hydrophobic, a larger pore size of 70 µm is needed to overcome surface tension and draw water into the collection chamber. It is typically used at sites involving organic contamination, because of its inert properties. Ceramic material is generally hydrophilic, having less surface tension. Therefore, it has a smaller porosity range to conduct the moisture through the porous medium while under vacuum. Pore sizes may be selected from 0.16 to 6 µm, and can be manufactured for the specific needs of the installation. The final major design component of the p/v lysimeter is the access or sampling tubes. The tubes are usually of 6.3-mm-outside-diam. (0.25-in.-outside-diam). They are made of rigid polyethylene or flexible Tygon with a wall thickness of 1.5 mm (0.06 in.). The con-

Jan 4, 1985

By L. Bergkvist

"History can provide many answers with regard to what today’s mining industry looks like and how we got to where we are today. It has always been self-evident that safety has to be given the highest priority and, throughout history, many mine workers have been injured, become ill and have even sacrificed their lives due to the way in which attempts have been made to extract the ore, often due to ignorance of the dangers being faced. In more recent stages of history we have seen certain dangers being compensated by means of higher wages and bonus systems in order to have the work carried out: one example of this is when the rock heating method was employed and the men who first went underground to put out the fires that were burning, were paid extra. The working conditions, to which these people were exposed, with smoke-filled closed spaces, shortened their life expectancy considerably and today we can ask ourselves whether it is really possible to value these efforts just by higher wages. In all mines worldwide the working environment has been improved and many mining companies have a zero vision where work-related injuries and accidents are concerned. Despite this, incidents of varying severity still occur and a continuous improvement process and ongoing training is necessary in order to constantly minimise risks and improve the working environment. Atlas Copco takes this into account in all its development and we not only review our own production units but also the needs of our customers, with regard to the machinery that is produced in order to cater for customers’ safety and production objectives. Underground mining probably started at the beginning of the 11th century when people with modest tools tried to extract ores that were present in the bedrock. Methodology has developed enormously over the years with a strong focus on increased efficiency and higher production. In different parts of the world the development is driven forwards at different rates depending on which controlling factors are regarded as necessary. Political decisions, profit goals and productivity have partly controlled the development, but the greatest factor where improvement is concerned still remains with increased understanding of the totality. During more than 1000 years since underground mining has been conducted, all individuals at all levels have constantly improved their expertise and the human element has been of great importance with regard to the development that has been made, even though technology often occupies a leading role when we describe the improvements made."

Jan 1, 2011

By Dale S. Hursh, William A. Brooks

Introduction US dependence on external energy sources is dangerous because of unstable political situations existing in key energy exporting countries. So, recent national energy policies call for increased reliance on domestic energy sources. Coal ranks as the most feasible domestic energy source due to its abundant reserves and continental distribution. But to efficiently extract these coal reserves, huge sums of capital funds are needed. Due to the depressed economy, lenders of capital funds are forced to be more stringent with loan applications. This results in fewer loans granted. In many cases, it is uncertain if funding can be obtained. Furthermore, the greatest level of domestic mine financing is expected to be in the coal sector. Demand for capital in the domestic coal industry is anticipated to increase 80% by 1990. The Chase Manhattan Bank in New York warns that these future needs cannot be met by the present capital markets. This article analyzes the current and expected situations of the capital markets available to the domestic coal industry, including: • current and expected future types of financing used in the domestic coal industry; • problems the domestic coal industry may encounter as it seeks capital; and • the future availability of capital funds as concluded from analysis of the first two items. Background Information Regardless of industry, all projects or ventures can be divided into four basic stages: generation; evaluation; selection; and execution. Within the mining industry, one can break down these stages to draw a clear picture of mine development, as shown in Fig. 1. Each successive stage has a corresponding risk level. This risk level defines the type of financing available to the mine operator. Mining Venture Risks A coal mining venture can be characterized by its unique blend of technical and financial risk. As the mine moves through different development stages, varying proportions of each of these risks are encountered. It is these risks that the lender evaluates to determine project suitability. For a coal mining venture, the major complexities generally occur with the technical risk. These include: • quantifying the coal reserves: • assessing the feasibility of the mining method; and • evaluating the design of the wash plant. The reserve risk is gauged by the amount of measured, mineable, and saleable reserves. The greater the latter amounts, the lower the risk. Secure title to the reserves plus title for any surface areas required are also of concern to the banker. Feasibility of the mining method and evaluation of the wash plant design should verify that the project can be completed according to the engineered spec-

Jan 9, 1982

By E. A. Adey, C. Baciu, P. Whitbread-Abrutat, M. Varul, T. Ejdemo, R. K. Shail, F. Wall

Responsible mining requires stakeholder engagement throughout all operational stages and after mine closure. By assessing the current and anticipated future socio-economic and environmental impacts, a company can maximise the positive impacts they can have on a community, whilst minimising any negative impacts. Despite the current emphasis on companies maintaining effective stakeholder relations to gain their ‘social license’ to operate, findings of the present study reveal a wide variation in community expectations, with different degrees of ‘acceptability’ evident across seven sites in Romania (Rosia Montana), Sweden (Kristineberg), the United Kingdom (Cornwall), Bosnia Herzegovina (Vihovici) and Russia (Karabash, Gay and Mednogorsk). These variations reflect the current status of mining within a community, as well as its socio-economic background and the nature of existing engagement with mining companies already operating in the region.

Jan 1, 2011