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By J. Molgaard, J. Masounave, J. Prinsen, P. Beaulieu, G. Huard

"A study carried out on behalf of the National Research Council (NRC) indicates that economic losses due to wear in the Canadian mining industry are in excess of $700 million annually. Severe wear, mainly by abrasion, was identified as the most important wear mechanism in terms of possible savings. One way to reduce losses would be the proper use of databases. A joint project of The Canadian Institute of Mining and Metallurgy (CIM) and NRC (Tribology laboratories at IMRI) has been initiated to create a factual database containing all relevant experience in the area of wear in the Canadian mining industry. As a first step, a prototype covering slurry pumps is being built. This should help to answer many questions, such as the number of people involved, interest from industry, cost vs benefits, etc.IntroductionTribology is concerned with the understanding of the mechanisms of friction, wear, and lubrication.Tribology is concerned with the correct use of materials for interacting solid surfaces, with the interaction of those surfaces with lubricants, with the chemistry, physics and use of lubricants and their additives. It is concerned with the reduction of friction and wear (or, in the case of belts, brakes, clutch plates, and similar devices, in achieving optimum friction with minimum wear) and is concerned with the avoidance of associated failures in machinery.Lubrication is usually the solution to a problem of friction and wear. Yet far from all the problems of friction and wear are solved by lubrication. The wear of grinding rods or shovel track pads can hardly be solved by lubrication, to name just two examples with which mining engineers will be familiar. There are indeed many situations of wear and friction where the surfaces in contact are unlubricated.In part, tribology is a matter of design. A major aspect, however, has to do with the choice of materials, to satisfy external constraints upon the component design or choice. The operating conditions for much industrial equipment, particularly in mining are, often very severe. The development of wear resistant materials, including materials which are applied as coatings, is clearly an important technology from the point of view of tribology."

Jan 1, 1987

By Richard J. Kolada, Ian R. Muirhead

"This paper reports on a CANMET-funded examination of less conventional underground coal mining methods. These methods are documented and those that show the most promise for application to western Canadian conditions are discussed in detail.IntroductionIn recent years, mining considerations and economics have encouraged a transition from underground mining to surface mining. However, a change in market conditions or the development of superior underground mining methods may reverse this trend . Should this happen, the industry must be quick to respond and have information available on the latest developments of underground mining technology. In time, deposits of high-quality coal, which are easily accessible to surface mining, will be depleted and a change to underground mining methods will require consideration. The economic transition point between surface to underground will be a major determinant in maintaining a competitive edge. For these reasons, it is important to keep abreast of improvements in underground mining methods. To meet this objective, CANMET awarded a research contract to Monenco Consultants Limited, to investigate unconventional underground mining methods that show a potential for western Canadaoi. This paper presents the results of this investigation."

Jan 1, 1988

By G. R. Morin, A. R. Leggett

"In 2010, closure of the Kidd metallurgical plants along with structural changes to the historical ratios of payable metals led to a review of the operating targets at the Kidd concentrator. Previous operating data indicated that there was potential for significant revenue improvements by lowering the copper concentrate grade. An extended plant trial was carried out in 2011 to quantify the revenue impact of lowering the copper concentrate grade from 27% to 25% Cu, as well as identifying the lower practical grade limit. Analysis of plant trial results indicated that the process change increased net concentrate revenue by $2 M to $3 M per year at current metal prices. Increased revenue was primarily associated with higher silver recovery to the copper concentrate while the marginally improved copper recovery was essentially offset by increased zinc losses and concentrate treatment and freight charges.Details of the plant test work results are discussed in this paper along with the financial analysis of the revenue improvements. Key areas covered are major revenue components of the concentrate contracts, validation of revenue improvements through plant testing and sensitivity of the improvements to market and plant variables.INTRODUCTIONThe Xstrata Copper Kidd concentrator commenced operations in 1966 treating ore from the nearby Kidd volcanogenic massive sulphide deposit in Timmins, Ontario (Thompson, Amsden, & Chapman, 1978). Over the years, up to four separate grinding-flotation divisions were in operation with throughput rates peaking at 4.5 million tonnes per year of ore in the mid 1980’s (Kelebek & Francis, 1998). As the mine production decreased and grinding throughput increased operations were gradually cut back and since 1998 two grinding-flotation divisions have been in operation treating Kidd mine ore. One of the idled divisions has been intermittently used for custom milling operations, most recently the Ni/Cu Montcalm deposit, which was milled from 2004 to 2009. Current budget throughput rates, limited by mine production, are 2.4 million tonnes per year of ore grading 1.7% Cu, 4.3% Zn and 55 g/mt Ag. Concentrate production rates are 150,000 tonnes per year of copper concentrate and 155,000 tonnes per year of zinc concentrate. The Kidd mine is the deepest base metal mine in the world with mining operations down to 9600 ft.In 2010 the copper and zinc plants at the Kidd metallurgical site, which previously treated the concentrate production from the Kidd concentrator, ceased operation due to a variety of economic and market factors. Following the metallurgical plant closures the Kidd concentrator products were shipped off site for treatment. The majority of the copper concentrate is now processed at the Xstrata Copper Horne smelter in Rouyn-Noranda, Quebec with the majority of the zinc concentrate processed at Canadian Electrolytic Zinc Ltd. in Valleyfield, Quebec."

Jan 1, 2013

By F. Charette

The paper reviews recent investigations of the impact of corrosion on the performance of both plain and coated Swellex rock bolts. It addresses the problems associated with estimating and predicting corrosion rates of friction bolts, and based on field data it suggests an empirical relationship to predict corrosion rates. A review of the necessary qualities for a protective coating leads to recent experience with coated Swellex bolts that suggest that they can contribute to extending the useful life of Swellex bolts in potentially corrosive environments.

May 1, 2004

By O. P. Garg

Based on improved methods of collection and analysis of geotechnical data, slope angles have been steepened in some mines of the Iron Ore Company of Canada at Schefferville, Quebec. This paper describes the slope design case history for Fleming NO.3 mine and illustrates the application of modern techniques. The new design has resulted in significant financial savings due to a reduction in required waste stripping.

Jan 1, 1978

By Adam Moore, Peter Radziszewski, Matt Gallimore

"Stirred mill technology dates back to 1928 where the idea to use “an agitator and spherical grinding media” was presented. In the context of the mining industry, interest in stirred milling technologies has grown over the last 20 years where the typical observation reported inDespite these developments, the tumbling mills are continuing to be used in fine and ultrafine grinding applications. The main reason for this, as communicated at the Canadian Mineral Processors roundtable discussion in 2013, is that the comfort level in understanding stirred milling technologies is not at the level of that of tumbling mills.At CMP 2014, one contribution was made to explore how mill design affects power and energy in a stirred mill. While the 2015 CMP paper explored the application of one scale-up methodology to the Gibraltar case. For the CMP 2016, the aim of this paper is to contribute to increasing the general comfort level with stirred milling technologies by developing a better understanding of the different scale-up methodologies used. This will be accomplished by first completing an overview of the scale-up models found in the literature followed by a review of the different testing and scale-up procedures. This review will be supported by a number of case studies found in the literature. The paper will close with a discussion on some of the challenges that these models and methodologies have and how future research might contribute to overcoming them.IntroductionStirred mill technology dates back to 1928 where the idea to use “an agitator and spherical grinding media” was presented (Stehr, 1988). The year 1948 saw the successful application of Du Pont’s “sand mill” for pigment grinding. Subsequent years have led to the development of different types of stirred mills spanning a number of industries that require fine and ultrafine grinding."

Jan 1, 2016

By Paul Staples, Paul Messenger, Greg Lane

"Every project is different. While “conventional” SAG and ball mill circuits will suit many projects, for others there are alternatives, which may produce improved outcomes. This paper examines particular examples of recent front end designs which either went against conventional thinking or which employed “out of the box” thinking to realize the desired results.One such example is the design strategy employed for a small capacity gold plant in Victoria, Australia. The selection of HPGR technology for small capacity projects is not generally favoured, given the relatively high cost of small HPGR machines. However, the unusual size distribution of the gold and its liberation characteristics were expected to lead to improved gold recovery offsetting the higher capital cost.Another example is the first large scale application of milling in acid for copper recovery, at a project in south east Asia. The stainless steel, single stage SAG mill using ceramic grinding media was more expensive than a mill constructed of conventional materials. However, the steps of scrubbing, slurrying, grinding and leaching could all be achieved in a single unit operation and the need for thickening and repulping with acid after milling was eliminated.Rod mills were selected for both primary and secondary milling duties for another south east Asian project despite their somewhat outdated reputation. A review of previous industry experience confirmed that rod mills could outperform conventional rod/ball or SAG/ball circuits in cases where the size distribution of the ground product is critical to downstream recovery.These examples are discussed with particular focus on the key drivers in each case."

Jan 1, 2008

By K. J. K. Weglo, M. U. Savich

"At the Falconbridge Limited, Canadian Nickel Division, Sudbury Operations, we investigated the ""NO NOISE"" ear muffs model NN3-F which is a Swedish product with foam-filled sealing rings (the Hellberg Standard Volume Hearing Protector). It is used extensively at Falconbridge mines in Sudbury.The research which was carried out in the four Falconbridge mines was conducted under three different headings: manufacturer's attenuation data (psychophysical method), clamping force and head size (bizygomatic diameter), and attenuation tests (physical methods) under working conditions.Manufacturers of hearing protectors claim their products offer noise reductions of 23 decibels (NRR) or more, but they fail to point out that this reduction is obtainable only under ideal conditions. The reality of attenuation under working conditions, as several studies have found, is quite different.Methods for using short measurements to determine the noise exposure index, and for controlling muff-wearing habits, were developed at the Elliot Lake Laboratory. Measurements taken at Falconbridge on ""NO NOISE"" ear muffs revealed that they have a practical attenuation of some IO to 13 decibels. It is important to note here that measurements also revealed that clamping force (thus attenuation) was in an inverse relationship with ear muff comfort. Measuring attenuation using noise dosimeters was a difficult job. Not a single surveyor would accept these measurements (physical method) for absolute accuracy. Apart from that, it was impossible to measure, in one shift, more than two work stations. Because of this, we sought a solution: measuring head size and clamping force in relation to actual attenuations.A detailed analysis of the relationship between attenuation and head size/clamping force was done at four mines. Standard deviation ellipses (standard error ellipses) for head size versus clamping force are in close agreement with measurements that were carried out. In order to measure clamping force an apparatus was constructed and a method for measuring suspension system durability is described in Appendices Band C of this report. At the same time we sought to reduce deterioration of ear muffs in mines as well as to put in place a system whereby attenuation can be controlled and improved. The clamping force apparatus can be operated automatically. The proposed control system is quick, simple and efficient . This system is equally applicable in small and large mining operations, and it can be totally automated and the data computerized for audit of the results. This control system is a new step in controlling ear muff attenuation in working environments.From these measurements of NN3-F ""NO NOISE"" muffs it can be concluded that ear muffs are not the total solution to protect the worker from noise.As the results were evaluated folio wing measurement, Falconbridge switched from the NN3-F ""NO NOISE"" muffs to approximately 90% Mark V ""NO NOISE"" muffs and 10% Mark V MSA muffs. These new muffs showed much better head size versus clamping force relationship and can be expected to produce 14 dBA or better attenuation of noise. RESUMEUne étude des casques antibruit ""NO NOISE"" modèle NN3-F, de fabrication suédoise, avec anneaux d'étanchéité en mousse (dispositif de protection contre le bruit ""Hellberg "" pour volume ordinaire)a été effectuée Ii la Falconbridge Ltd. , Division canadienne du nickel aux installations de Sudbury . Ces casques sont largement utilisés dans les mines de la Falconbridge Ii Sudbury.Cette étude aeu lieuen milieu de travail dans les quatre mines de la Falconbridge sous trois rubriques différentes soit: les données d'atténuation du bruit du fabricant (méthode psychophysique), la force de serrage et la taille de la tète (diamètre bizygomatique), et les essais d’atténuation de bruit (méthodes physiques). Les fabricants de dispositifs de protection contre le bruit prétendent que leurs produits offrent une réduction du bruit s'élevant Ii"

Jan 1, 1986

In order to avoid impurity problem and enhance absorption/desorption kinetics of Mg-based compounds, nanostructured Mg-based compounds were synthesized from Mg, Ni and other elemental nanoparticles produced by hydrogen plasma-metal reaction. XRD and TEM results demonstrate that homogeneous nanostructured Mg-based compounds with less impurity were successfully synthesized by this method. DSC in hydrogen atmosphere, pressure-composition isotherm and the kinetics of hydrogen adsorption/desorption were investigated at different temperatures. The results show that the nanostructured Mg-based compounds can absorb hydrogen in a high speed at a low temperature.

Jan 1, 2005

By O. Zach, K. Gamweger

"The Process of gas purging in molten Aluminium has been an industrial practise for many years. The melting of alloying elements and their rapid distribution in the bath is very important. To improve the mixing and homogenisation process, at RHI NON FERROUS METALS ENGENEERING GMBH a lot of CFD calculations were done. The so developed new ""purging program"" was tested at Alumino Catalan S.A., Spain. The results of the testtrials were very satisfactory and corresponds very well with the calculated data."

Jan 1, 2004

By Henry Brehaut

"It is difficult to know how much environmental information is absorbed by those in a position to put it to use. The following information may seem like ""old stuff"" to those whose companies are taking steps to improve their environmental performance. This paper is directed in particular to those people who are interested in determining what further changes are required to make improvements as concerned environment citizens.IntroductionUntil recently, the author was comfortable with the fact that none of the operations for which he was responsible had any environmental charges against them. It was not until one of his operations was charged with non-compliance that the author discovered due diligence as a way to avoid a second charge, and when an unfortunate spill occurred at another operation, the meaning of risk prevention was learned. Knowledge was gained step by step to the point where finally environmental information is being heeded, rather than waiting to learn from sad experience. With the appreciation of what it takes to do a good environmental job, comes an understanding of the challenge that lies ahead, and the fact that there is a lot to learn.At a recent environmental gathering, comments from the participants varied considerably. Some just didn't understand why government was being so unreasonable, while at the other end of the spectrum one individual whose company was well along the path to becoming a good environmental citizen remarked that it was all very basic. What was immediately understandable to one went right over the heads of others, indicating the different stages that have been attained in the acceptance of environmental responsibilities."

Jan 1, 1991

By G. Barbery

"Particle composition distribution is an essential feature of materials processed by physical separation methods. The amenability to segregate a feed material in a concentrate and a tailings stream depends to a large extent on what is called usually the ""liberation"" of the various mineral phases that are present in an ore. In fact the energy consumed in crushing and grinding has the major justification of producing particles that are as close as possible to monominerallic. Monophasic particles are able to reveal physical differences in mineral properties that make their separation possible. For many years, various authors have insisted on the concept of liberation, without noting that, in practice, it can be a pure concept which does not lead to measurements or predictions. The present paper insists on the concept of particle composition distribution, in which the complete distribution is the information to be obtained, and not the ""liberation·· of various phases, just like for particle size distribution, the complete distribution is an objective commonly desired, and not one or two values representing the coarse or fine fraction.2. NOTATIONS-EQUATIONSFor the purpose of the paper, a particle will be characterized by its volume Vp, and its volumetric composition with respect to a mineral of interest, which will be given the notation ""O"". All the other minerals present will be called ""1"". This notation does not imply that the particles are biphasic, but that we are interested in the composition of particles with respect to one phase only. The volumetric composition will be given the sybol m:"

Jan 1, 1986

By M. J. Medd, G. A. Speirs

"This paper describes the simultaneous sinking and equipping of a 4.9 m diameter concrete-lined shaft to a projected depth of 1660 m. The shaft blast design utilizes the full face method using a parallel hole burn cut. Hydraulic drilling and a totally redesigned Cryderman-type mucking unit were integrated into the four deck sinking stage to provide for drilling, mucking, concreting and shaft steel equipping operations. A safety program was tailored and implemented specifically for this shaft sinking project.IntroductionIn July 1988, Falconbridge Limited commenced development of its Thayer Lindsley exploration site located some four km north of Sudbury on Regional Road 80.The first phase of this project was awarded to J .S. Redpath Mining Consultants Limited and the scope of work included the engineering and project management to construct a surface plant capable of supporting a shaft sinking and exploration program for potential future mine development. This initial phase of the project was completed on schedule and under budget on December 23, 1988, and is the subject of an independent paper.In November 1988, J.S. Redpath Limited was awarded the shaft sinking and exploration phase of this project. The scope of work consisted of sinking and equipping a 4.9 m diameter shaft to a depth of 1660 m and carrying out the development and diamond drilling on two levels. This work was scheduled to be completed by November 1991.The T .L. Exploration Project is located toward the eastern end of the south range of the Sudbury basin, north of Sudbury. Figure 1 details the projected mining area and the shaft location on the geological complex. Figure 2 is a section showing the exploration shaft that is located in the Norite. Two levels will be developed from this shaft, on the 1310m and 1588 m levels, to provide access for further geological examination of the ore bodies."

Jan 1, 1991

By M. G. Rylatt, G. M. Popplewell

"Production from Canada's first diamond mine is planned for the last quarter of 1998. The climatic conditions and the variation in kimberlite types to be treated have lead to the development of a compact and flexible processing plant.High kimberlite moisture contents and winter temperatures below -40°C have dictated a process flowsheet with limited in-circuit storage to reduce materials handling difficulties. The latest developments in High Pressure Grinding Roll technology will be used to liberate the valuable diamond, reduce diamond breakage, and increase fines production to reduce the amount of material for down stream processing in the Heavy Medium Separation section.A varying heavy mineral concentrate yield has lead to the development of a final Recovery section that will incorporate Attrition Milling and Wet High Intensity Magnetic Separation for concentrate reduction. The latest developments in diamond X-ray sorting will be used to produce a final diamond concentrate for mechanical sizing, weighing and packing.Fine tailings thickening will utilise Deep Bed Compression type thickeners. This relatively new technology can produce;i) high underflow densities at low flocculant dosage rates, andii) clear overflowswith a smaller thickening area than conventional high-rate thickeners."

Jan 1, 1998

By Jim Truskoski, Alain Bouchard, Andy Kerr, Germain Labonté, Jim Barrett

"Improving mill grade recovery relationships is always good business. INCO’s Clarabelle Mill has just undergone a $16 million process upgrade that was designed to improve nickel recovery by 2%. The “Mill Redesign Project” was completed on time, under budget and delivered the promised improvement in recoveries.This paper describes the methodology of the Mill Redesign Team, details of the process improvements and the critical success factors that helped the team deliver on its promises.With a payback of under one year, the Mill Redesign Project will play a key role in ensuring a competitive edge as INCO embarks on its second century of operation.INTRODUCTIONIt is not uncommon in milling operations to encounter a crisis. That is the point when the process does not behave as expected and fails to respond to the increasingly desperate efforts of the metallurgists and operators. Flowsheet and process changes are attempted and abandoned. With luck, one or more of the changes achieves some mitigation of the original problem or more usually, the original cause of the problem disappears. Regardless, the metallurgist can sit back and bask in the apparent success of his or her endeavours.Less common is when a problem is carefully diagnosed, a team put together to explore all avenues and recommend a path of action that is implemented on time, on budget and immediately delivers on the promises which are sustained over time. This is one such story. It is the story of the Mill Redesign Project at INCO’s Clarabelle Mill in Copper Cliff, Ontario.BACKGROUNDThe Clarabelle Mill was built in 1971 on the southern rim of the Sudbury basin. At that time it was one of four mills operated by INCO in the Sudbury area. During the 1970’s, 80’s and 90’s, the need for increased process efficiency, higher levels of sulphur rejection to tails and the concurrent development of high capacity mills and flotation cells, resulted in the consolidation of INCO’s Sudbury area milling operations into a single, expanded facility at Clarabelle."

Jan 1, 2003

By Ross Gallinger

In 1997 a group of Canadian mining companies met to review the Mine Environment Neutral Drainage (MEND) program and to consider future activities. They concluded (i) that Canadian industry and NRCan should fund a small secretariat in Ottawa to support technology transfer in Canada and (ii) that it was important for industry to continue the momentum of MEND on an international scale. The need for INAP (International Network for Acid Prevention) was strongly endorsed by company, university, consultant and government experts from Australia, Canada and the U.S. who were convened in Vancouver in February 1998. The initial focus was the development of a solid knowledge base covering the collective experience of INAP's members to promote the dissemination of successful practices, the identification of knowledge gaps and the formulation of effective research proposals. The sharing of information on past successes and failures alone was viewed as sufficient justification for the formation of INAP. INAP was officially launched in October 1998, and is now an effective, industry based initiative to globally coordinate research and development in the management of sulfide mine waste. Significant improvements in the management of sulfidic mine materials through knowledge sharing, research and development of technology by INAP will reduce liability associated with acid drainage. This paper will explore the international efforts and activities of INAP.

May 1, 2002

By L. Tapia

The main disturbance for stability in primary grinding using SAG mills is related to continuous changes in the ore being fed to the plant, such as size and hardness. Searching for stability is the first step to accomplish, before trying to maximize the mill throughput. The time variability in the characteristics of the ore being fed from the mine to the plant must be known or inferred to perform adaptive changes in the grinding process control. In day to day operation, such information is not available in real time. Transport times and inventories between the mine and the plant complicate the situation. Under this scenario, Minera Los Pelambres implemented a grinding optimization strategy, based on the real time analysis of certain process variables, such as ore size, mill current consumption, pebble generation and throughput. As a result, both grindability and stability indexes are inferred. This is equivalent to inferring the ore characteristics by knowing its effect on the grinding behavior. These two indexes permit control of the SAG mill total charge level and hence, allow optimization of throughput by means of an expert control system.

Jan 1, 2007

By N. Schmitt, E. Blond, F. Hild

Working linings of steel ladles progressively damage during the steel manufacturing process due to both severe thermomechanical and chemical stresses. In the framework of the coupling scheme proposed by Blond et al. (1), this study examines the effects of the thermomechanical loading on the onset of microcracking by considering that the complex microstructure of the slag-impregnated brick is fixed during the steelmaking process. The behaviour of the refractory is identified by using thermoelastic-(asymmetric)viscoplastic constitutive equations. Numerical simulations of a simplified geometry of the lining subjected to cyclic thermal loadings at the inner side are shown. Two cases are analysed, namely, i) the material is a homogeneous continuum with a thermoelastic-(asymmetric)viscoplastic behaviour, ii) the material is porous and saturated by liquid slag, and the skeleton has the previous non-linear behaviour. The stress and strain fields are shown, and for the porous medium the interstitial pressure of slag as well. Comparisons between these assumptions are made to assess the role of slag on the degradation of the working lining.

Jan 1, 2004

By Robert B. Parsons

"This article is based on a paper presented by Jim Scott at the 1988 annual convention of the Prospectors and Developers Association of Canada. The paper suggests a number of factors that might be taken into account in negotiating royalty terms.IntroductionRoyal ties are a part of mining life in Canada. They are used by many kinds of individuals in many kind s of situations. Prospectors commonly take royalty interests back when they transfer claims to development companies. Mining companies disposing of undeveloped (or sometimes even developed) properties are often paid at least in part by royalties. Royalties are even used by institutional investors with no other connection with the resource industry.Such different royalty holders have different investment goals, different cash flow requirements, and different risk / return preferences. These differences have given rise to a number of different royalty type s. These types range from the simplest cents-per-ton royalty (where the operator pays a royalty at a fixed rate per ton milled) to net smelter return or ""NSR"" royalties (where the royalty is based on a percentage of the operator's NSR) all the way to net profit interest or ""NPI"" royalties (where the royalty is based on the operator's bottom-line net profit),The fundamental difference between the many royalty types is in the risk/ return relationship. The cents-per-ton royalty, for example, is relatively risk-free. Of the many economic factors which affect a mine, the only one which will affect the royalty holder is the amount of ore physically milled. On the other hand, the potential for significant gains under a cents-per-ton royalty is also very limited. The royalty holder will not share in any increases in the market price of the end product or any cost reductions achieved by the producer."

Jan 1, 1988

By Robert B. Parsons

"This article is based on a paper presented by Jim Scott at the 1988 annual convention of the Prospectors and Developers Association of Canada. The paper suggests a number of factors that might be taken into account in negotiating royalty terms.IntroductionRoyal ties are a part of mining life in Canada. They are used by many kinds of individuals in many kind s of situations. Prospectors commonly take royalty interests back when they transfer claims to development companies. Mining companies disposing of undeveloped (or sometimes even developed) properties are often paid at least in part by royalties. Royalties are even used by institutional investors with no other connection with the resource industry.Such different royalty holders have different investment goals, different cash flow requirements, and different risk / return preferences. These differences have given rise to a number of different royalty types. These types range from the simplest cents-per-ton royalty (where the operator pays a royalty at a fixed rate per ton milled) to net smelter return or ""NSR"" royalties (where the royalty is based on a percentage of the operator's NSR) all the way to net profit interest or ""NPI"" royalties (where the royalty is based on the operator's bottom-line net profit),The fundamental difference between the many royalty types is in the risk / return relationship. The cents-per-ton royalty, for example, is relatively risk-free. Of the many economic factors which affect a mine, the only one which will affect the royalty holder is the amount of ore physically milled. On the other hand, the potential for significant gains under a cents-per-ton royalty is also very limited. The royalty holder will not share in any increases in the market price of the end product or any cost reductions achieved by the producer."

Jan 1, 1989