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By Robert E. Loftus

"The author discusses the growth in the use of ocean-going bulk carriers for the transportation of mineral commodities, and predicts future trends. The various types of tonnage carriers are described, along with the special discharging gear used, the costs involved and the duties of some of the personnel.THE FIRST CONSIDERATION in planning the ocean transportation of minerals is the type of vessel to be utilized. The modern 'Bulk Carrier' bas proved to be the most successful vehicle for the purpose. I would there-fore like to describe this fleet in some detail and at-tempt to show the impact that the bulk carrier bas bad on the movement of bulk materials."

Jan 1, 1968

By D. E. G. Maschmeyer

The operation of the pilot plant for the S-C Copper Process during 1976 has provided the basic data for the design of a commercial-scale plant. This paper introduces the commercial aspects of the S-C Copper Process through the presentation of a process flow diagram, a schematic flow diagram and basic design parameters for 75,000 tonnes per year (tpy) copper rod production from chalcopyrite concentrate. Basic operating requirements are outlined and a preliminary estimate of operating and capital costs for a Western Canadian location are summarized. The results have been compared with a modern smelter/electrorefinery to highlight the advantages and disadvantages of these two alternatives and to show why the new S-C Copper Process technology should be of interest to the copper industry.

Jan 1, 1978

By J. S. Kirkaldy, W. J. Slater, G. R. Mason

Activation analysis for copper and manganese in 10 mg samples machined from aluminum-base diffusion couples has been used in the study of ternary diffusion in the Al-Cu-Mn system. The accuracy, economy and convenience of the method are considered to be very competitive with other methods for analysis of such small samples. Neutron-activated aluminum-zinc alloys in the range from 10 per cent to 100 per cent zinc have been equilibrated with a known volume and the vapors subsequently condensed and collected. The vapor pressures relative to pure zinc (the thermodynamic activities) have been determined at 550°C' by recording the relative count of /'-rays from zn65 in the collected samples. The method is a sensitive one, although subject to serious obstacles to experimental accuracy.

Jan 1, 1961

By B. Arlyuk

On the basis of research of relations among the market participants the analytical model has been created which connects the price of industrial good at stock exchange with volume of sales and the stock of the sellers and buyers, Also a model was developed for assessment of these parameters of the market status by the actually fixed stock exchange and general market indicators. The composition of these models made it possible to create reliable system of short-term price forecasting for commodities or base metals up to one quarter ahead. Imperfectability of creation a model for reliable price forecasting by purely statistic methods (by the "black box" principle) was shown. A model of price behavior qualitative forecasting till one quarter ahead has been developed, which determines the probability of reaching in future of the given level as well as of the price maximums and minimums, Optimal values of threshold probability were determined for forecasting the future price maximums and minimums securing the maximum profit from the forecasting system application for commercial activity. The developed system of forecasting was identified for primary aluminium at the period of 1990-2003. The system was tested daily during 20 months period for speculations on 3M primary aluminium forwards at London Metal Exchange with high commercial result.

Jan 1, 2004

By S. Nikolic, G. M. Stieper, D. P. Mallah, B. J. Hogg, P. B. Voigt

Copper feed materials processing is becoming more challenging, due to an incremental increase in the mineralogical and compositional complexity of these feeds. These complex and polymetallic feeds are now becoming more common and many sites have been forced to re-evaluate their operating strategies to process these materials at cost competitive rates, whilst meeting ever more stringent environmental regulations. Most operations must first evaluate the merits of pyrometallurgical and hydrometallurgical treatment routes. Although there are multiple copper smelting technologies available, only top-submerged lance (TSL) technology, supplied by Glencore Technology as ISASMELT™, has been applied in the real world to consistently and successfully smelt complex materials in integrated metallurgical facilities such as Glencore’s Kazzinc Ltd. operation in Kazakhstan, Umicore Precious Metals Refining in Belgium and Aurubis AG in Germany. Glencore Technology also offers hydrometallurgical processing, through the Albion Process™ technology, opening up viable flowsheet options previously not possible for these complex feeds. This paper describes a number of real world process flowsheets at global operations and Glencore’s own operations at Mount Isa and Kazzinc Ltd., which process complex feeds. These flowsheets integrate the ISASMELT™, Albion Process™, ISACONVERT™, ISAKIDD™ Tank house, and bottom blown oxygen cupel (BBOC™) technologies to provide an effective process solution for the treatment of complex polymetallic feeds to produce metallic copper and associated by-products. INTRODUCTION Traditional smelters and those built in recent times within the bulk smelting hubs of the world have been designed to treat standard/clean concentrates. In recent years the processing of complex polymetallic sulfide concentrates and the recycling of secondary copper and derivatives of waste electrical and electronic equipment, such as e-scrap, have become a focus for numerous companies (Alvear & Nikolic, 2013). Processing of these complex feeds, characterized by relatively high levels of minor elements (over 5% of elements such as arsenic, antimony, bismuth, lead and zinc) is more challenging. Facilities not designed for these types of materials may require significant modifications or a change in smelting technology to treat them. Often operations find themselves re-evaluating the merits of pyrometallurgical and hydrometallurgical treatment routes for their sites through a number of factors:

Jan 1, 2019

By A. A. Abdul-Latif, A. Sahin

"The phosphate deposit, located in the Abu Tartur plateau between the Kharga and the Dakhla Oases in the southern part of the Western Desert of Egypt, is the largest of its kind in the country. The phosphates are found in two horizons referred to as the Lower and Upper Phosphate Horizons within the Late Campanian Sibaiya Formation which belongs to the Nubia Group.This paper presents the results of a geostatistical study on the main phosphorite bed at the base of the Lower Phosphate Horizon which contains almost all the commercial reserves in the area. After semivariogram modeling for the phosphate thickness and accumulation, ordinary block kriging was employed to estimate the values of these variables in blocks of400 m by 400 m dimensions. The kriging results, which are presented in the form of contour maps, can be of considerable use in both future exploration and exploitation of the deposit. The grade-tonnage relationship based on the grade estimates derived from the corresponding thickness and accumulation estimates indicates the existence of 453.9 x 105 tonnes of phosphate above a cut-off grade of 18% P2O5. The mean grade of this tonnage has been estimated to be 25.77% P205"

Jan 1, 1990

By P. Oyanader

"In 2001, the Catholic University of Chile undertook a maintenance benchmarking study of six open pit copper mines having mill capacities varying between 18,000 t/d and 156,000 t/d, and collectively responsible for 58% of Chilean copper production. This paper describes the methodology used to conduct the study, as well as the overall results. Key performance indices were selected to measure the effectiveness, efficiency, and development of the maintenance process. Using a balanced scorecard philosophy, these indicators were divided into client satisfaction, financial, internal process, and learning and growth indices.Maintenance was found, on average, to be responsible for 44% of mine production costs. Percentage planned maintenance of equipment fleets was found to be low by world standards, averaging 35%, 56%, and 44%, respectively, for blasthole drill, shovel, and haul truck fleets. Fleet availabilities were found to be significantly influenced by the percentage of planned maintenance achieved, while maintenance cost per equipment was found to decrease non-linearly with increases in percentage planned maintenance. Investment in technical training (including planned maintenance practice) was found to be low by global standards. The paper concludes that fleet availability and maintenance costs in Chilean open pit operations could be considerably improved by improving and/or developing maintenance planning standards, and investing in training personnel in planned maintenance techniques"

Jan 1, 2005

By J. G. Strasser

"There has been considerable output over the last three decades from the social sciences concerning man and his working environment. In the mining industry at large, however, authoritarian, hierarchical control systems remain the norm, and it can be argued that something less than optimum effectiveness in terms of both productivity and worker satisfaction has resulted.Recently (/975), Campbell Chibougamau Mines Ltd. devised a most interesting organization and incentive system that links the underground production of a standard ton of mined output at controlled grade to an incentive payment scheme. A parallel scheme in the mill complex is based on maximizing recovery of copper and gold from available feed. A key part of both minsystems is the formation of groups who have considerable autonomy, particularly when compared to the still prevalent traditional mining industry relationships between the worker and supervisory levels.This paper traces the development of Campbell Chibougamau's system . Attention is drawn to qualitative and quantitative measures of the success of the method through the commentary of those miners involved in the scheme, and by reference to the favourable records on productivity, absenteeism, safety, turnover and grievance activity.IntroductionPyramidal or hierarchical management control systems, coupled to piece-work incentive schemes, predominate throughout Canada's underground mining industry. Although specific details of such systems vary from site to site, they , are generally understood and accepted as fact by the majority of the work force.Normally, a front-line supervisor (shift boss) directs a number of workmen and assigns them to tasks and working locations commensurate with their abilities, knowledge, training and skills. This front -line supervisor may direct or supervise from as few as 12 to as many as 75 or more workmen. He issues orders according to his assigned production objectives and ensures that these directions are fulfilled in accordance with standard mine practice . Several shift bosses are usually directed by a mine foreman or mine captain. The mine captains report to a general foreman or directly to the mine superintendent or his assistant, depending on the size and scope of the operation."

Jan 1, 1981

By Erik Richer La Fleche

LEGAL RISKS LEGAL RISKS ARE COUNTRY RATHER THAN PROJECT RISKS OTHER COUNTRY RISKS ARE POLITICAL AND MACRO-ECONOMIC RISKS COUNTRY RISKS ARE EXAMINED AFTER PROJECT RISKS COUNTRY RISKS COUNTRY RISKS INCLUDE: WAR AND ARMED CONFLICT TERRORISM AND SABOTAGE CURRENCY INCONVERTIBILTY AND TRANSFER NATIONALIZATION AND CREEPING EXPROPRIATION GOVERNMENTAL BREACH AND REPUDIATION OF CONTRACT CHANGE OF GOVERNMENT CORRUPTION COUNTRY RISKS FIRST NATIONS AND LANDOWNER CLAIMS LABOUR UNREST SINGLE CAUSE ACTIVISTS REGULATORY AND BUREAUCRATIC DELAYS CONFLICT BETWEEN GOVERNMENT LEVELS ETHIC AND RELIGIOUS TENSIONS INTERNATIONAL SANCTIONS TAXATION CHANGES CHANGES IN LAW

May 1, 2013

By P. Miranda, K. Le, G. Maes, R. Peters

"The Mount Milligan Mine, owned by Thompson Creek Metals Company Inc. (TCM), started operations in September of 2013. It is located between the communities of Fort St. James and Mackenzie and is the first major metal mine to open in British Columbia in 15 years. Based on reserves as of January 1, 2014, it has an estimated 22 year mine life with 2.1 billion pounds of copper and 6 million ounces of gold in reserves. Like all commissioning operations, there have been issues achieving design throughput and recovery due to flow sheet design, equipment failures, control philosophy, and reagent scheme. Efforts to improve overall mill performance include equipment modifications, reagent screening and testing, and grind size testing. Applying these changes to the mill and working closely with the mine has resulted in continuous improvement each month as Mount Milligan looks to achieve the nominal design capacity of 60,000 dry metric tonnes per day in the later part of 2015. Considerable focus is being placed into ensuring size reduction equipment is utilized effectively. Additional modifications and tests are being undertaken to steadily improve processes and alleviate restrictions in the mill. This paper will discuss the start-up and present ramp-up history of Mount Milligan, the current mill processes, and the steps taken to achieve expected production numbers.OPERATION BACKGROUNDMount Milligan is an open-pit copper and gold operation wholly owned and operated by Thompson Creek Metals. It is located approximately 155km northwest of Prince George, British Columbia, between the communities of Mackenzie and Fort St. James. The copper-gold porphyry deposit contains a Measured and Indicated Mineral Resource of 706.7 Mt at 0.18% Cu and 0.33 g/t Au, containing 2.84 billion lb. copper and 7.50 million oz. gold. Mine life is currently estimated at 22.1 years (“Feasibility Update – Mt. Milligan,” 2009). The mill is designed to process 60,000 dry metric tonnes per day and produce 400 dry metric tonnes of concentrate per day averaging 25.5% Cu and 40 ppm Au. Concentrate is delivered by truck and trailer to Mackenzie followed by rail to Vancouver for overseas shipping to various customers.Mount Milligan is considered a “zero discharge” operation meaning no process or surface water will be discharged to the environment. As well, stockpiling is very limited and is only permitted for a short period of time. This scenario presents several unique challenges. Scheduling of ore/waste production must be carefully planned as waste rock is used to build the tailings storage facility (TSF). Reagent selection is also important as persistent chemicals will have a tendency to build up in reclaim water which feeds the process water tank."

Jan 1, 2015

By F. P. Hassani, J. F. Boily, A. M. O. Mohamed, M. Hossein

The optimal geochemical parameters required to form ellringite in a lime-remediated site have been investigated with the use of thermodynamic modelling. The speciation of sulphate and 10 metals analyzed in samples of a mine tailing from northern Quebec was calculated with a computer model. The model also includes calcium, which would result from the addition of lime to the system. Two speciation calculations were done. The first one is a hypothetical speciation before the onset of precipitation and was used to devise the stability fields of minerals susceptible of forming in high pHs. The stability fields were determined by building activity ratio diagrams with sulphate, aluminum and calcium species concentrations for pHs ranging from 4 to 14. The investigation was carried out for a 25°C solution with an ionic strength less than 0.12. Thermodynamics predict that an optimal stability field for ettringite in the mine tailing samples containing 10-3 mol/L SO4-2,10-2 mol/L of AI(OH)4 requires at least 10-2mol/L of Ca+2 and a pH larger than 11.6. The sulphate contents of the mine tailing samples, however, limit the precipitation of ettringite and monosulphate could be an end-precipitate. The second speciation is in equilibrium with precipitates and provides information on the speciation of the residual metals. If ellringite could be precipitated as a stable form, it could serve as a sorptive agent for residual metals, and, due to its binding properties, consolidate tailings.

Jan 1, 1995

By A Palynchuk

The development of welded pipe has paralleled the general industrial development and, in particular, that of the petroleum industry. The petroleum industry's need for high-grade, economical pipeline material to make many 'of its projects feasible has been a significant factor in the development of light-wall, high-grade welded pipe. The modern welding processes, such as high-frequency, electric resistance, flash, submerged arc, etc., have some basically different characteristics. The modern high-frequency weld mill is a complex of specialized equipment that is integrated into a production unit. Each component in the unit performs a specific function in the production process. Quality control must be built into the process on an operating basis and, to maintain the quality required for pipeline standards, must be more than a policing operation. The further development of the welded pipe industry will be determined by changing and increasing demands. The technical and economic views and requirements that will influence the development have to be resolved.

Jan 1, 1964

By P. Taskinen, A. Jokilaakso

The Flash Smelting Process for copper and nickel production has been one of the most successful new metallurgical process developments in the 20th century. The experimental data from laboratory scale investigations of studies has produced information and insight into the reaction mechanisms and kinetics of the flash reactions of copper concentrates. Advanced computer models coupling chemical reactions with a Computational Fluid Dynamics (CFD) software became possible with the development of commercial CFD software together with increased computing power. Currently, there are both experimental and CFD modelling, including also CFD–DEM coupling (Discrete Element Method), studies ongoing for investigating the kinetics of matte – slag reactions in the flash smelting furnace (FSF) settler. The ultimate goal of the modelling work is to develop a comprehensive FSF model for studying the behavior of changing raw materials, both primary and secondary, and distribution of their elements between the matte, slag, and gas phases. The use of User-Defined-Functions (UDF) is one way to digitalize metallurgical knowledge and experimental information to be used for supporting process experts and development of artificial intelligence applications in metallurgy. In this paper, a review of the development of the FSF reaction shaft modelling and experimental investigations, and the current work for the settler reactions’ experiments and modelling are presented. INTRODUCTION The Outotec Flash Smelting process (Bryk, Ryselin, Honkasalo, & Malmström 1958) has been used in the copper and nickel industry for 70 years with continuous support from experimental investigations by many research groups in academia, among others Jorgensen and Segnit (1977); Jokilaakso, Suominen, Taskinen and Lilius (1991), Chaubal and Sohn (1986), Kim and Themelis (1986), and in industry Mäkinen and Jåfs (1982); Kojo, Lahtinen and Miettinen (2009); Tuominen, Pienimäki and Fagerlund (2016). It has been developed also for pyrite and lead smelting (Asteljoki, Sulanto & Talonen, 1984). A schematic illustration of the FSF and other main parts of the process is depicted in Figure 1. Also, two and three dimensional physical water or gas models have extensively been used in product and process development (Lilja & Rajainmäki 1995). During the recent decades, computer based models have increasingly been adopted in the FSF research and development (Ahokainen & Jokilaakso, 1998); Ahokainen, Jokilaakso, Taskinen & Kytö, 2006; Hahn & Sohn, 1990; Jorgensen & Elliot, 1992; Zhou, Zhou, Chen & Mao, 2014; White, Haywood, Ranasinghe & Chen, 2015) to name a few, but also in supporting engineering and sales of the technology (Miettinen 2017). Even though the reactions of the sulfidic concentrate particles have been included in the reaction shaft modelling, the complete FSF model with both gas-solid/drop and molten slag/matte drop has so far been and still is too demanding for today’s computer hardware.

Jan 1, 2019

By P. J. Noakes

Remote and isolated, located in a frigid, hostile environment, the Black Angel mine in Greenland had to create a warm social environment which would help attract and retain a stable work force of miners and support staff. The high cost of personnel turnover plagues many mines and, when the mine is inside the Arctic Circle, accessible by helicopters which are highly vulnerable to unpredictable weather conditions during the long, dark winters, the potential costs of personnel turnover become critical factors in the success or failure of the mining venture. Manpower planning should start from the date the engineers begin the technical design of the new mine. The plan should include provisions not only to ensure an adequate, skilled work force, but also to ensure a stable work force of people who are happy enough in the mining environment to want to remain, take their vacation and return to work at the mine. The skilled work force was assured with training courses of four months, designed to produce highly specialized underground workers from unskilled Danes and Greenlanders supported by trained Swedish and other Scandinavian miners. The stable social unit was assured by plans the primary attribute of which had to be flexibility. The accommodation changed from shared accommodation with communal washroom facilities to single accommodation with private washroom facilities. A recreational director was hired to help the workers make use of elaborate recreational facilities. A closed-circuit TV and radio system was installed to operate as a private broadcasting system using taped programs originally broadcast on European TV networks or developed by the mine personnel themselves. The liquor rules were changed and the mine manager became a licensed innkeeper responsible for the orderly operation of the Black Angel Bar in accordance with the Danish laws governing the services of a public bar. The result is a relatively stable work force. Some 35% of the people have more than two years' service with the company, Greenex A/S, and some 62% complete 10 months of service.

Jan 1, 1978

By K. Najim, D. Hodouin

"The raw ores which are processed in mineral processing plants exhibit very strong variations of their physical and chemical properties. As a consequence, the performances of the comminution and separation processes vary greatly from time to time. Model-based control strategies improve the performance of the plant; however, they require some form of adaptation to cope with the variations of the are properties.This paper deals with the use of adaptive techniques for the control of mineral processes. It begins with a survey on adaptive control algorithms including parameters estimation aspects. Then several examples dealing with crushing, rod, ball, autogenous and semi-autogenous grinding, flotation , drying and calcination processes are reviewed.IntroductionThe operation of the various processes of mineral processing plants (crushing, grinding, flotation, dewatering, etc.) is generally controlled using empirically tuned regulators of constant structure, such as PID controllers. To improve the operation performance, mineral processors try to implement specifically designed controllers, i.e. controllers based on plant dynamic models. Most of the time, these techniques improve the control of the mineral processing installations. However, modelling is a complex procedure because of the problems of measurement and data management, specific to this industry, and because of the variations of the model parameters. In this context model-based control strategies do not always bring the expected improvements or are sometimes discarded and replaced by more conventional techniques .The sources of variation of the dynamic behaviour of mineral processing systems can be classified into three categories: (I) the inherent changes of the raw ore properties (composition, grindability, mineralogical texture, etc.); (2) the process tuning modifications (grinding media loads, number of hydrocyclones, slurry level in flotation cells, agitation speeds, etc.); (3) the feedrate variation of the ore, water, chemical reagents, etc. All these factors change the fundamental properties of the process dynamics such as the grinding or flotation rates and the residence time in the equipment. The simplified linear models which are used to describe the process dynamics are not able to track the complex behaviour of the mineral processing systems when the amplitude of the sources of variation are too large. The mismatch between the model and the plant behaviour is then frequently a cause of model-based controller failures."

Jan 1, 1992

By F. R. Archibald

SINCE the opening of the Beattie mine, in 1933, the concentrate produced by flotation has been considered refractory. As the gold extraction by cyanidation was poor, the concentrate, during the first four and a half years of operation, was shipped to a smelter for further treatment. After the installation of the cyanide plant, in 1934, seventy per cent of the gold in the concentrate was recovered before shipment to the smelter. In 1937, a roasting plant was built so that treatment might be complete at the mine. Much experimental work had been done by a number of investigators prior to the installation of the roasters, but none of them had seriously attempted to identify the causes of, or the elements responsible for, the refractory behaviour of the concentrate. Intensive investigation in this direction commenced in the Beattie lab-oratory in July, 1938, has led not only to the identification of several causes contributory to the refractory behaviour, but also to revisions in procedure and principles with respect to roasting Beattie concentrate in particular and arsenical concentrates in general. The accuracy of the identification of these causes and the soundness of the principles is borne out by interpretation of roasting plant records, by improvements and simplification since applied. to plant operation, and also by laboratory and test-plant results on arsenical concentrate produced by another mine. It is the purpose here to present an account and interpretation of the laboratory investigation, together with a correlation of laboratory and plant results. Incomplete extraction of the gold by cyanidation after roasting is due primarily to the nature of the material roasted, and secondarily to the manner in which it has been roasted. There is a possibility that better extraction may be obtained by improvements in both particulars.

Jan 1, 1939

By M. Helinski

In the authors? experience inappropriate water management in hydraulic fill masses has been the root cause of most barricade failures. Inappropriate water management can lead to high water pressures, reduced effective stresses and increased barricade stresses (Kuganathan 2002). In addition the high hydraulic conductivity and non-plastic nature of most hydraulic fills makes susceptibility to piping failure (Cowling et al. 1987) a high possibility in many hydraulic backfills where a static water head is available. In order to avert both of these failure mechanisms it is essential to control the elevation of the phreatic surface within the fill mass. This is usually achieved through campaigned filling and resting periods. The duration of filling and resting periods are often estimated using some form of stope drainage simulator. Due to the random nature of many characteristics that influence the fill mass hydraulic conductivity, simulation of hydraulic fill drainage can be difficult. The high consequences of inaccurate phreatic surface estimates combined with the high variability in drainage properties often results in operators taking a conservative approach to this modelling. This conservative approach can lead to significant delays in the filling cycle which can have a major impact on the productivity of many hydraulic fill operations and can often results in an unnecessary movement towards capital intensive paste fill systems. This paper presents a water management technique which combines a simplified drainage model with in-situ monitoring to provide a rational approach to water management. With an accurate drainage model filling operations can be carried out at optimum efficiency without compromising safety. The implementation of this strategy has lead to a significant increase in filling rates at a number of Australian filling operations. A brief case study from one of these sites has been presented.

May 1, 2007

By A. Panteleyev, C. S. Ney, R. J. Cathro, A. Sutherland Brown

The general distribution of metal deposits in the Canadian Cordillera can be related to its tectonic evolution. The Canadian Cordillera is naturally divisible into five longitudinal tectonic belts within which rocks are broadly similar in type, age and history. From west to east they are the Insular, Coast Crystalline, Intermontane, Omineca and Eastern Marginal belts. Seven classes of metal deposits in the Canadian Cordillera are defined and their characteristics described. These classes are skarn, porphyry, massive sulphide, stratiform, magmatic, copper in basic lavas, and vein deposits. Maps showing the distribution of medal and metal-group concentrations serve to illustrate the relations in space and time between mineralization and geologic evolution.

Jan 1, 1971

By A. Michalkow

DELN ITE Mines Limited is located in Deloro township, on the west end of the south break of the Porcupine Camp. Mining operations are currently being carried out on the downward extension of a system of quartz veins in an andesite zone. This zone has been followed from surface to the present bottom level of 5,250 feet. The changing mineralogy of the vein system has involved an increase in tourmaline content from the surface downwards, so that the veins at the lower levels are composed of dark brown quartz-tourmaline. The drilling problem presented by these extremely hard veins was partially alleviated by the development and adoption of a one-inch drill bit. All blast-hole drilling is now done with the one-inch bit, without any difference in hole spacing.

Jan 1, 1962

By J. L. Casado-Sánchez

Financial capital is highly volatile and if the investor does not get adequate compensation for the risk faced he may consider withdrawing his capital assets from the company and consequently produce a structural change in any sector of the economy. We study the variation in profitability of assets in terms of the changes that occur in the markets. The choice of models used is justified by the extensive theoretical and empirical use of them throughout the history of financial economics. We have used the capital asset pricing model (CAPM) and the model based on the arbitrage pricing theory (APT) to determine the beta value. These models have been applied to the monthly returns of 27 mining companies listed on the New York Stock Exchange (NYSE) or London Stock Exchange (LSE), using data from the period covered from January 2006 to December 2010. The results of time series and cross sectional regressions for CAPM and APT produce some errors, suggesting that many companies have failed to obtain an adequate cost of capital. Also the results show that higher risk firms tend to have lower profitability. These findings make it unlikely to be maintained over the long term the current status and could drive structural change in the mining sector in the form of mergers.

Aug 1, 2013