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By Robert F. Calman

OUTLINE FIVE EXAMPLES OF GOLD-LINKED FINANCINGS 1. Financing the Lupin Mine • Sale of Cdn $40.0 million of 12% preferred shares and Cdn $40.0 million of Gold Purchase Warrants @ $595 per ounce. 2. Financing the Copper Range acquisition • Borrowing 100,000 ounces from a Canadian chartered bank @ US$307 for five years. 3. Financing the Round Mountain expansion • Borrowing up to US $80.0 million in dollars, convertible into gold, repayable over five years from a group of North American banks. 4. Financing the Tenneco Precious Metals Division acquisition •Sale of SFr 110.0 million of ten year 3-718% bonds with warrants to buy 132,000 ounces of gold at US $560. 5. On Forward Sales, Puts and Calls • Gold, Silver, Canadian Dollars, Swiss Francs THE FINANCIAL RULES AT ECHO BAY 1. Never bet the company 2. Equity is the primary form of capital for a gold mining company 3. On debt 4. The Yardsticks for Corporate Decisions 5. Financial Community Relationships 6. Dividend Policy No Text Available Tables Follow

Jan 1, 1990

Eco-Efficient Gravity Separation Solutions in India Sustainable development and social responsibility issues are a principal aspect of mineral processing operations around the world. With the need for more environmentally effective technologies, some gravity separation systems have provided eco-efficient mineral processing solutions in places where it is not otherwise viable because of lack of fresh water or for other environmental reasons. Advanced spiral separation technologies developed in Australia offer a cost effective and environmentally viable way to process minerals. In particular, we review recent case studies of spiral plants commissioned in India where environmentally sustainable solutions to design problems included the use of spirals operated with sea water and the use of high capacity (HC) spirals to provide low consumption of energy and materials and a reduced plant footprint. This paper evaluates the performance of various spiral plants in India and how critical environmental issues which affect the overall viability of wet concentrating processes where resolved.

Sep 13, 2010

By M. Kalin

"SUMMARYWaste management in general, and the water treatment of mine and mill effluents, has become an ever increasing burden for mining operations. A reduction in these expenditures would undoubtedly be desirable if this could in fact be achieved within effluent guidelines and monitoring requirements.A brief summary is presented of the research which has as its aim the development of methods which would reduce such costs and lead to solutions for environmentally acceptable close-out conditions for acid generating mine waters. The basic concepts of Ecological Engineering and Biological Polishing are presented, together with an indication of the present state of these research efforts. Details are provided of the progress of various experiments which aim to promote reducing conditions, organic matter production and the establishment of biological filters which remove metals from the water which are then retained within the waste management areas. These conditions should lead to a curtailment of acid drainage and an improvement in effluent quality.A description is provided of the first pilot demonstration using this approach to achieve a walk-away condition for the close-out of a massive sulphide tailings resulting from 10 years of operating a copper/zinc concentrator in Northern Ontario.1.0 INTRODUCTION1.1 Waste management and close-outIt is recognized that the achievement of a cost-effective and competitive mining operation, from the commencement of exploration for ore bodies through to the day-to-day efficient operation of the mine, requires a certain expertise and sophistication. However, the environmental effects of these activities are considered peripheral issues and their importance as an integral part of the planning and development of the mine/mill, is not always appreciated."

Jan 1, 1988

Ecological Fuel from High-Sulfur-Content Coal

Sep 13, 2010

By Seffen Leppla, Rolf Katzenbach, Matthias Seip

"Abstract The economic and safe design of deep foundation systems in difficult soil conditions is based on a reduction of construction material used, construction time spent, energy consumed and a high-level modelling of the soil-structure-interaction. The special foundation system Combined Pile- Raft Foundation (CPRF), in-situ load tests on the construction site and a sufficient soil investigation allow cost optimised constructions. In any case at challenging projects the observational method has to be applied for verification and quality control of the design. Regarding the 4-Eye-Principle as basis of the quality control management an independent peer review of the planning, design and construction phases is the guarantee for safety, serviceability and optimisation of all projects. Main execution standards for the construction of deep foundations based on the Eurocode 7 are summarised and discussed. The paper presents the basics of the safe and qualified design and construction of foundation systems including quality assurance. The application in engineering practice is shown on achallenging project of high-rise buildings with difficult boundary conditions.IntroductionThe construction of deep foundation elements in inner cities are special challenges due to the limited space for the construction works and the effects on existing buildings (Figure 1).An economic and safe design of deep foundation systems in difficult soil conditions is based on the following main aspects:•,qualified experts for planning, design and construction•,interaction between architects, structural engineers and geotechnical engineers•,adequate soil investigation•,design of deep foundation systems using the Finite-Element-Method (FEM) in combination with•,enhanced in-situ load tests for calibrating the soil parameters used in the numerical simulations•,quality assurance by an independent peer review process (4-eye-principle) combined with theobservational method if necessary"

Jan 1, 2014

By D. V. Bush

The economic application of real time computer control can be broken down into 2 broad areas of concern. The first would be in gaining the most efficient utilization of energy. The second would be in improved product quality. This paper will be primarly concerned with the first area of efficient energy utilization as that area has the greatest effect on costs and thus net profits. Most process control strategy attempt to achieve the greatest comminution with the least amount of energy thus maximizing efficiency. A more direct approach to energy control involves a total mine and mill energy management system. In most cases these systems have an ability to achieve a very short payback period with the greatest return on investment.

Jan 1, 1986

By William P. Jones

THE consumption of sulphuric acid, one of the most important commodities in our modern industrial world, is often used as a barometer for industrial activity. The economics of acid manufacture are largely dependent upon the location of the place of consumption and the availability of raw materials in that locality. Sulphuric acid is made from SO2 oxygen from the air and water. Therefore the sulphur dioxide is the only raw material to be considered in an economic study. SO2 can be obtained from almost any material containing inorganic sulphur, such as elemental sulphur, pyrites, coal, sour gas and oil, metallurgical gases, waste gases, or gypsum and anhydrite. Many tons of acid can also be reclaimed by the recovery and concentration of spent acids. The aim of this paper is to present a guide to the economic aspects to be considered when the installation of an acid plant is contemplated. It must be remembered that 1 ton of elemental sulphur produces 3 tons of sulphuric acid and that the shipping of sulphuric acid by tank car is very costly. The size of the plant must also be given careful consideration. For instance, operation of a plant producing 5 tons of acid per day might be warranted in Brazil or Pakistan, whereas economics usually favor buying quantities up to 50 tons per day for use within the United States. Elemental sulphur, when available at the low price of 1 ½ ¢ per lb delivered at an acid plant, has always been the raw material most frequently used for sulphuric acid. All conditions favor its use at this price. The so-called sulphur shortage has been the subject of so many technical papers, magazine articles, and newspaper items during the past year that it hardly seems necessary to mention it again, but a very brief review of the matter will serve as a foundation for the discussion that follows. There is no shortage of sulphur. Only a shortage of low-cost Frasch-mined brimstone exists today. Other more expensive sulphur-bearing materials are plentiful, both in the United States and abroad. The low cost of Frasch-mined brimstone has discouraged the development of higher cost sources. However, the approaching depletion of Gulf Coast dome deposits and the greatly increased demand for sulphur here and abroad have made it necessary for industry to prepare for conversion to utilize sulphur in other forms. For future planning this situation must be considered permanent and not temporary. This conclusion is based on the fact that although sulphur demand will continue to rise, the production of Frasch-mined sulphur probably will not increase greatly beyond its present level of about 5,000,000 long tons per year. The International Materials Conference in Washington estimates 1952 requirements of the free world at nearly 7 ½ million long tons; and the Defense Production Administration has recently set a new goal for 8,400,000 long tons annual domestic production by 1955. The total sulphur equivalent produced in this country in 1950 was 6 million tons. What, then, are the alternatives for the manufacture of the vital chemical, sulphuric acid? Today about 85 pct of this country's sulphur, and nearly 50 pct of the world supply, comes from our Gulf Coast salt domes and is extracted from the earth by Frasch's hot water process. The Gulf Coast salt dome deposits have been the most important known natural deposits in the world, producing 90 million tons of sulphur during the past 50 years. However, at the present rate of extraction these deposits cannot be expected to last indefinitely. Pyrites Pyrites are, and have been for many years, the source of more than 50 pct of the world's sulphur requirements. The principal use, of course, is in the manufacture of sulphuric acid. The use of pyrites in the United States has diminished greatly because of the availability of low cost native sulphur, but pyrites have continued a major source of sulphur in many other countries. The most available pyrites for use in this country are in the form of lump pyritic ore and in mill tailings from flotation of other minerals such as lead, zinc, copper, gold, and silver. An important factor, when the use of pyrites for acid manufacture is being considered, is the disposal of calcine. A ton of sulphuric acid requires approximately ¾ ton of high-grade pyrite and results in ½ ton of calcine. If the calcine is a fairly pure oxide, free of harmful impurities, it can be used, after sintering, in an iron blast furnace burden. Its value might be as high as 15¢ per unit of Fe at the blast furnace; or possibly $10.00 per ton of sinter, if it assays 65 pct Fe. This might result in a credit of $4.00 per ton of acid if the sintering plant and blast furnace are both located adjacent to the acid plant. On the other hand, several factors must be considered before this credit can be realized, i.e., freight to blast furnace, availability of sintering facilities, methods of eliminating impurities, and the removal of valuable metal values. In some locations it would be most economical to dump the calcines.

Jan 1, 1952

By F. M. Benavides

The mining complex being analyzed consists of four mines and two processing plants located in an area where there are several existing modes of transportation. Figure 1 shows a map of the general layout of the four proposed mines and the two existing processing plants. The mines are identified by the numerals "I" through "IV" and the plants by the letters "A" and "B". A proposed overland conveyor would collect the product from all four mines and convey it to Processing Plant A. Alternate transportation systems are as follows: Railroad transport from Mines I and II to Plant B; Highway trucking from Mines I and II to Plant A; Off-the-road truck haulage from Mine III to Plant B and from Mine IV to Plant A. River transportation from the mines to the processing plants was not considered in this study under the assumption that the high capital investments for the loading and unloading facilities, in addition to difficult traffic problems, would make this mode of transportation unattractive.

Jan 1, 1980

By William R. Yernberg

What a difference a year makes. One year ago, the iron mining industry and the steelmaking industry in the United States were in trouble. Many companies were in bankruptcy, and talk of plant and mine shutdowns was rampant. At that time, it seemed difficult, if not impossible, to remain competitive with imported steel. In addition, the World Trade Organization declared as illegal the tariffs placed on imported steel. And many questioned the viability of the ironmining and steel industry in the United States. At that time, global economic conditions were the main contributors to the industry’s problems. However, since last year’s meeting, changes in global economics have actually helped the steel industry in the United States. Heavy global demand for steel has caused raw-material shortages worldwide. Much of the increased demand is a result of the economic boom in China. In addition, because of a weak U.S. dollar and higher international freight rates, steel imports into the United States have been reduced to about 50 percent of recent levels. These factors have contributed to a rebirth of the U.S. iron mining and steel industries.

Jan 1, 2004

By J. M. Mutmansky, A. Wang

This paper defines the elements of a basic economic model for decision-making when considering a methane drainage system for an underground coal mine. A drainage system will require significant capital and operating expenses; hence the decision to utilize drainage must be made carefully. The model outlines the basic structure of decision-making and considers the costs and benefits when the methane is marketed and when the methane is vented to the atmosphere. The effects on mine safety and the dust levels in the mine are also considered, both in a general format and as economic variables. Sources of information for executing this decision-making are provided for an actual mine decision.

Feb 24, 1997

By K. Oraee

Zarshuran gold deposit, with the total reserves of some 12.5 million tons of 4.18 g/ton ore, is considered to be an important gold mining project in the area. In this paper the feasibility studies of the whole project is carried out on the basis of several economic variables. Given that mining data are often of uncertain nature, these economic variables have therefore been estimated under the conditions of uncertainty. The resultant Net Present Value is hence also obtained under the same conditions. For this purpose, a model is first devised with the help of Excel and COMFAR software. The model is then developed that considers different scenarios which would result in different expected values for the economic variables. It is concluded that the NPV of the project is most sensitive to gold and silver price and that other variables such as discount rate, operating and capital cost all affect the feasibility of the project with lower degree of severity. Finally, risk analysis is also carried out using Mont Carlo technique, in order to estimate the most probable value of NPV. The average NPV calculated in this way is US$ 49.7 Million, whilst without due consideration of risk, this would be US$ 36.6 Million. The techniques used, together with the procedures adopted in this paper, can be used in feasibility studies of all mining projects. Such decision would result in more accurate Net Present Values than expected from other frequently used methods.

Jan 1, 2011

By M. Drozd, M. Somppi, Z. Yamak

"Granular activated carbon is widely used in the gold mining industry for gold extraction from aurocyanide-containing slurry. The extraction process can employ carbon as part of the gold recovery operation for various circuit designs including carbon-in-pulp (CIP), carbon-in-column (CIC), and carbon-in-leach (CIL) circuits. However, various qualities of activated carbon exist and the durability of the material can change significantly from source to source. Handling this expensive reagent can pose challenges when fine carbon losses occur in the CIP, CIC, and CIL circuits. Additionally, any gold that is adsorbed to these carbon fines can also be lost by various mechanisms including carbon attrition and fracturing, inefficient coarse-fine separation, and poor carbon fines capture. With the above in mind, a series of tests were conducted to investigate standardizing simple laboratory methods for testing carbon quality. A standard procedure beyond or enhancing ASTM methods can serve as additional starting points for evaluating carbon specific to the gold industry. The investigation focused on size distribution, flatness, wet attrition resistance, surface area, gold kinetics, and gold loading. The final results provided information to generate an equation for ranking carbon samples to plant performance.IntroductionActivated carbon for use in gold extraction is amongst the most commonly found processes in modern gold-milling plants. Although gold losses are inevitable in the milling process, operators often focus on the importance of maximizing gold recovery. One focus area that is important in gold recovery is optimizing the use of activated carbon and examining potential changes to realize improved economics for carbon-in-pulp (CIP), carbon-in-column (CIC), and carbon-in-leach (CIL) processes."

Jan 1, 2017

By H. Kose

In this research, a model quarry with an annual production capacity of 1 000 000 tonnes has been studied for both pit and hillside quarry cases with constant overall slope angle and variable bench slope angle, considering road grades of 8 per cent and 10 per cent. First, technical requirements have been determined and then the effect of production parameters, such as hole diameter, type of quarrying (pit or hillside) and road grade, on the cost has been investigated to determine bench height. Based on the results, it has been concluded that hole diameter has to be kept large in both pit and hillside quarrying to reduce drilling unit costs. In addition, in order to take advantage of gravity and reduce transportation cost, it has been suggested that bench height and road grade have to be kept high and low respectively in the case of hillside quarrying (downhill transportation) while, in the case of pit quarrying (uphill transportation), bench height and road grade have to be kept low and high respectively, in order to transport the blasted material to a lower height and distance, to save energy, thus decreasing the transport cost. Keywords: Quarry, pit, hillside, road grade, bench height

Jan 1, 2005

Between February and August of 1986, Dr Alfred Petrick visited New Zealand sponsored under a Fulbright grant administered by the New Zealand-United States Educational Foundation. The grant supported a research project completed by Dr Petrick having as an objective, the preparation of a preliminary economic evaluation of the mining of six Otago lignite deposits as a source of energy for steam power generation or in liquid fuels. The research is limited to consideration of preliminary geological and engineering data on the six deposits and to the time constraints of the Fulbright visit. This paper is a summary of the final Fulbright report. The complete report including the listings of the computer programs is available from the Otago School of Mines.

Jan 1, 1986

By J. R. Evans

Mining claims must have a discovery of a valuable mineral deposit to be valid. When required, a Federal government mineral examiner makes a determination of validity and recommendations thereof to authorized management officials. The examiner should show whether or not an existing mining operation, or a proposed operation have economic viability. This is accomplished through an analysis of legal entities, land status and use, geologic and mineralogic relationships, and mining, milling and processing techniques considered in an appropriate economic evaluation framework. A framework involves market and market entry studies, reserve analyses, all costs analysis, royalty buyouts, tax structure, discount rate of return, and escalation and risk factors. An income approach to value is then used by means of a simple or complex discounted cash flow (DCF) analysis to certify validity. Whether one claim is owned by a single miner, or hundreds of claims are owned by a large corporation, thorough, fair, consistent, and appropriate economic concepts should be applied by the mineral examiner.

Jan 1, 1993

By Frances Badelow

This paper describes a design process for piled raft foundations supporting high-rise buildings. The design process comprises an initial stage of geotechnical site characterization using the results of investigation boreholes to prepare a subsurface model and derive geotechnical parameters for raft and pile design from empirical correlations. Following this a preliminary analysis is undertaken using a combination of elastic theory and allowances for non linear behaviour of the piled raft system to assess the viability of such a foundation system and any potential advantages of a piled raft over conventional fully piled foundation systems. Finally, a detailed analysis is undertaken using the GARP8 computer program. Case studies where this design process has been successfully used to design a more efficient piled raft system that has resulted in significant cost and time savings compared to conventional bored pile foundation options are also described.

Jan 1, 2006

By Graylin R. K, dea T. R, O&apos

The Wolgan Seam of the Upper Permian IlIawarra Coal Measures of the Western Coalfield of New South Wales consists of high volatile, low sulphur, medium hard coking coal with high fluidity. This seam, 1·8-2·4m thick, in the Wolgan area, dips gently at 1°_20 ENE and lies at 160-440m below the deeply dissected surface of the western margin of the Blue Mountains plateau.A detailed study of the deposit has revealed that the Wolgan Seam consists of four main coal plies separated by three distinct stone bands. Each of these subunits is lenticular and displays individual physical, chemical and mineralogical characteristics which exhibit distinct spatial distribution patterns across the area. Most noticeable is the presence of long linear ESE-trending zones of low ash - high volatiles - high fixed carbon - high fluidity which delineate the major distributary pattern within the deltaic environment of coal formation.This seam contains some of the highest fluidity coal in the world.The Wolgan area, close to the western margin of the Sydney Basin, is characterized by:I. a regional, closely spaced, homogenous joint fracture pattern dominated by an orthogonal pair set trending 3400 and 0700, to which the face- and butt-cleat directions respectively of the Wolgan Seam are sub-parallel, and2. a more widely spaced, heterogenous, cross-cutting pattern of regional structural fractures. Zones of bad roof conditions are probably associated with these lineaments which are subvertical and trend in three majordirections, viz., 005°,035° and 115°.

Jan 1, 1980

By W C. Burton, J S. Kuszma, T O. Aspinall

The environmental impact of mining and evolving environmentallegislation has received increased attention worldwide in the last two decades (Bradfield, Shultz and Stone, 1996). The potential impacts associated with unstable spoil dumps from mine operations is the focus of concern both by the mining industry, environmental regulatory agencies and members of the public. Engineered slopes of mine spoils may be stable at the end of construction, but they can deteriorate over time. There is thus the need to increase the base of knowledge on the existing practices of spoil dump design and rehabilitation. Efficient engineering design and systematic economic evaluation of spoil dump reshaping techniques for mine rehabilitation assists in maintaining the expected standards of environmental compliance. As part of the overall approach for effective engineering design ofspoil dumps, a comprehensive, computational and efficient tool isrequired for assessing the economics and productivity of existing spoil dump reshaping practices for efficient mine rehabilitation. Such a design tool is useful in linking current spoil dump environmental management practices with engineering design planning and economic impact evaluation. This paper identifies the processes for the economic impact evaluation for existing spoil dump reshaping practices and proposed final site dump designs. Selection of an efficient spoil dump design at optimum costs will ensure operational efficiency. A case study is presented identifying economic impact evaluation in earthmoving equipment selection and the costs involved for the reshaping of spoil dumps to that of varying final site designs.

Jan 1, 2000

By N. Sasto, E. Bondi, G. R. Lane

Cyest Corporation has been involved in economic modelling and optimisation with various mining clients within South Africa, and internationally, for the past 5 years. In the mining industry in particular, the relationships between variables that are controllable, and those that are not, and the physical and economic outcomes are complex and often non-linear. These relationships constitute an economic system. In the mining context, although many of the relationships can be accurately quantified on a ?single variable to single variable? basis, such simplistic relationships will not suffice in order to understand the dynamics of an entire mine. One has to specify and quantify the relationships between hundreds, if not thousands, of variables. Furthermore, in reality, these relationships change over time. This is the role of an economic model where all the relevant cause-effect relationships, within pertinent constraints, are accurately represented. Models that are used for optimisation must therefore capture the dynamics of the economic system in question as well as anticipate changes to the relationships between these variables. An accurate economic model is a prerequisite for successful optimisation. Optimisation entails the allocation or configuration of resources, within control of management, which will maximise (or minimise) a desired objective function. An optimal configuration (implying trade-off) of controllable variables therefore exists for a given set of assumptions that will yield a maximised objective function. Due to the multi-variant trade-offs required for optimisation, the concept of the ?Economic Surface? or ?Hill of Value? has been used to represent these optimisation outcomes and to discern the route to an optimal configuration. A good example of this is the volume versus cut-off grade trade-off that yields an optimal value for a particular shaft with its unique geological and economic assumptions. More recently, Cyest has extended these economic models to incorporate risk associated with variance in assumptions and inputs. This is termed DFA (dynamic financial analysis) and incorporates stochastic modelling and some of the latest actuarial techniques around modelling global assumptions (such as pricing and exchange rate). This paper will cover the theory around mine optimisation through some example case studies, and also explain the latest thinking regarding incorporating DFA.

Jan 1, 2007

By W. Biermann

All industrial processes are economically driven, resulting in the ever increasing need for process optimization in order to stay competitive and profitable. Numerous models has been published depicting the optimization of the raw material usage in an arc furnace, as well as the thermal and electrical efficiency; however, to obtain a holistic view of the cost-effectiveness of the process one needs to expand the model to include the cost of all the operational variables. This project therefore aimed to not only include the raw material feeds and power consumption as input variables, but also the labour, maintenance, and environmental costs to generate an all-inclusive financial balance. In the end, the model was able to mathematically optimize the ferrochrome (FeCr) production process through evaluating the effect of a specified combination of input parameters. It could therefore be used as a tool to aid in managerial decision-making; to appraise and correspondingly adjust certain operational variables in order to achieve a maximum return on investment. This paper fully describes the reasoning behind the choice of the essential model components, the assumptions made during the models development, the calculation approach, as well as the advantages, limitations, possible applications, and areas for expansion of the final model. Through running simulations with plant data, it was found that the accuracy of final model remained fairly constant when applied to stable furnace conditions, but was met with a number of limitations when applied to more complex situations. These limitations could, however, be overcome through further development and expansion of the existing model to include a larger number of process variables.

Jan 1, 2012