Search Documents

By Eric Low

Raising capital by issuing debt or equity is necessary in almost every corporation. In the field of corporate finance, the raising of capital is a heavily-studied topic. However, some of what is studied on this topic in corporate finance is not applicable in the mining industry. There are also many financing options that were created for the mining industry such as flow-through shares, prepaid forwards, and royalty sales. The cyclical nature of the industry makes the risk-return profile of financings more difficult to estimate than in other industries. Additionally, the methods used to assess firm value are different than other industries, as the values of orebodies are not included on balance sheets. For precious metals companies, which are a hedge against most other securities, there are additional complications with determining investor expectations and cost of equity. This thesis puts forth a decision-making framework to explain mine financing choices from the perspective of mining companies. The approach is threefold. First, all of the major equity and debt financing instruments available to mining companies are presented and analyzed. Each financing method is assessed on a wide range of criteria. Next, these concepts are applied in case studies of four companies: BHP Billiton, Barrick Gold, Teck Resources, and Noront Resources. For each company, the overall choice of financing methods is shown and analyzed. The effect of financing choices on the weighted average cost of capital (WACC) is calculated. The final section deals with case studies of individual mine finance decisions during the past two years.

May 1, 2011

By W. D. Sinclair

"Between 1934 and 1956, nearly 31 million grams of gold were produced in the Matachewan area from deposits on properties belonging to Young-Davidson Mines Limited and Matachewan Consolidated Mines Limited. In 1979, production from these properties was renewed by Pamour Porcupine Mines Limited.Most of the gold produced has come from relatively lowgrade deposits (3.4 gl t or less) that occur in an east-trending belt of dykes and irregular bodies of trachytic syenite. Although small by comparison, these deposits have some of the characteristics of porphyry copper-molybdenum deposits. The mineralized syenite contains up to 5 per cent disseminated pyrite and is highly fractured and cut by quartz and quartzcarbonate veinlets. Gold occurs as native gold along fractures, in quartz veinlets and as minute inclusions in pyrite. Minor chalcopyrite and trace amounts of scheelite, molybdenite and galena are also present. Mineralization was accompanied by potassic alteration, consisting mainly of potassium feldspar.Some gold was also produced from small, but higher-grade, deposits in volcanic rocks. These deposits occur near the syenite-hosted deposits and consist of quartz veins and stringers mineralized .with pyrite and gold. Minor gold is present in some low-grade, porphyry-type copper-molybdenum occurrences and, locally, in large, isolated quartz veins.Lead isotope analyses suggest that the gold deposits were formed at about 2700 Ma and were locally remobilized at approximately 2400 Ma, following the Kenoran orogeny. The deposits appear to be genetically related to felsic magmas emplaced in an epizonal environment and deposited from hydrothermal solutions relatively concentrated in S and K20."

Jan 1, 1982

By G. B. Bell

"INTRODUCTION On February 1, 1962, after five years of exploration and research, Jones & Laughlin Steel Corporation announced that they would develop the Adams Mine. Plant construction began immediately and in December of 1964 the first shipment of pellets arrived at J & L's blast furnaces in Pittsburgh. J & L continued to operate the property through its wholly owned subsidiary, Jones & Laughlin Mining Company, Ltd., until August of 1971 when it was sold to Dominion Foundries and Steel, Limited of Hamilton. Dofasco engaged Cliffs of Canada, a subsidiary of Cleveland Cliffs Iron Company, to manage the operation of the property.SUMMARY:The Adams Mine is a one million tons per year iron ore pellet operation located in the Boston Township Iron Range, approximately seven miles southeast of Kirkland Lake, Ontario. The property includes 5,300 acres in which eight areas suitable for open pit mining have been outlined. It was estimated that the reserves in these out lined areas are sufficient to produce 30 million tons of high grade iron ore pellets.The ore 'consists of fine grained magnetite with alternating layers of chert and is mined by conventional open pit methods. This extremely hard and abrasive ore averages about 20 percent magnetic iron, and has a ratio of concentration of 3. 9 /1. Presently, mining operations are confined to two pits with a third one being developed for operations to begin in 1973.The run-of-mine ore is crushed and ground and then concentrated by magnetic separation and flotation to a concentrate grade of 68 percent magnetic iron. The concentrate is agglomerated by a grate-kiln pelletizing process and shipped by rail to Dofasco's blast furnaces in Hamilton and to Jones & Laughlin's furnaces in Pittsburgh."

Jan 1, 1973

By Thomas S. Falk, Nils G. Lindberg

The first industrial COBO (Cold Bound) pelletizing plant began operation in May 1975 at Trollhiittan, Swede n. A technical description of the process, together with operational experience with the plant, forms the basis of this paper.

Jan 1, 1976

By P. J. Dunlop

THE object of this paper is to present a brief survey of the work done and the results obtained in controlling dust at the Hollinger Consolidated Gold Mines milling plant. The plant includes all primary and secondary crushing, grinding, and treatment operations. The major items of equipment are: (1) Underground Crusher Plant 1 48 in. by 60 in. jaw crusher, crushing run-of-mine ore to minus-6-in. Rate: 420 tons per hour (2) Surface Crusher Plant 3 No. 772 gyratory crushers 3 4 ft. by 16 ft. trommel screens 4 No. S gyratory crushers Reducing ore to rninus-172-in. Rate: 420 tons per hour (3) Roll Plant 5 sets of 62 in. bJ: 24 in. rolls 7 5 ft. by 10 ft. v1bratrng screens Delivering a minus-3/16-in. finished product Rate: 420 tons per hour (4) Grinding Plant 4 7 ft. by 15 ft. low discharge grate ball-mills 4 12 ft. reciprocating rake classifiers Rate: 4,800 tons per 24 hours Maximum capacity: S,800 tons per 24 hours

Jan 1, 1939

By C. J. Sullivan

Many metalliferous ?provinces are co-extensive with particular groups of sedimentary, volcanic, or :basic plutonic rocks. Deposits may be truly syngenetic (Rand, Rhodesia-Katanga, Mans-field, Blind River, White Pine); re-. concentrated by circulating waters (Colorado Plateau, Red Bed Coppers) ; or re-concentrated thermally during metamorphism and granitization (most uranium and lead-zinc provinces ?and some copper and gold provinces). Basalts may yield important cop-per provinces when folded and re-heated. Granitization of basalts which have not reached the chlorite-carbon-ate phase of metamorphism may produce copper provinces. If they reach ?the chlorite-carbonate stage, granitization may result in a gold province. Copper and copper-nickel provinces may result if gabbros are granitized, and a ?similar alteration of per-idotite may result in asbestos or nickel ores. Many similar associations are known. Granite is not a source of ore, but a result of heat. A classification of ?ore with respect to source rocks is of greater prospecting value than are classifications based on magmatic differentiation and hydrother-mal solution theories. Volcanic centres are important ore foci because the thermally unstable metallic sulphides may be concentrated here by a distillation process. The ores found in the hot spring deposits, viz., mercury, mercury sulphide, sulphur, and the compounds of ?antimony and arsenic, are not those which are soluble in water at low temperature (epithermal sub-division of hydrothermal class), abrut those which are unstable thermally at comparatively low temperatures . Water is one of the most common thermally unstable minerals, and generally accompanies the thermally activated ore-forming sulphides.

Jan 1, 1957

By David Laing

Completion of a Feasibility Study represents a major milestone in the development path of a mine, and one which typically triggers a need for project financing. Obtaining funding for construction relies on a positive Feasibility Study and a host of other related activities. This paper looks at the financing process and work required to support it, during and after the Feasibility Study, and bring it to a successful closing. It will include comment on the significance of permits, environmental plans, construction contracts, offtake arrangements, hedging, insurance, and others requirements to support a financing plan.

May 1, 2010

By David M. Parkes, George E. Davies

"Mathematically, the proposed formula is: ""Human Effectiveness + Technological Improvement = Success in the Nineties"". A brief review is made of geology, level of technology, management and labour situations, and range of production costs in coal producing countries. This comparison shows keen competition for Canadian coals, especially from the People's Republic of China, South Africa and Australia. Domestic competition comes from nuclear energy, hydro-electric generation, natural gas (if permitted) and eastern United States coal.The huge increase in the size and power of surface mining equipment in the last forty years led to modern large-scale open pit mining. While conventional truck and shovel operations will continue to be widely used, more continuous mining and conveying systems will be installed as pits become deeper and haul distances longer. Computer systems will become more sophisticated and their applications more widespread, leading to higher productivity and closer control of all operations and equipment performances and to partial or complete automation of certain operations.The underground revival will be driven by a new generation of mining people, cooperating to produce over 3 million t/y from 300 m longwall faces retreating over 3 km resulting in mine productivities of over 40 tonnes per man shift, as is already achieved in several mines throughout the world. Continuous operation using on-line control system will assist in consistent production with availabilities over 75%."

Jan 1, 1991

By W. M. Armstrong

This paper compares research on development efforts in various countries, consideration being given to gross expenditures, manpower involved, source of funds, sector of performance and type of activity. The Canadian R & D activity is then reviewed, particularly as applied to the industrial sector, the problems of applied research in Canada are discussed and some remedies are suggested.

Jan 1, 1968

By D. Fleury

"This paper describes the challenges of mining a sill pillar under various types of paste backfill quality. From 1994 to 2002, Louvicourt mine produced approximately 12,600,000 t grading 3.5% Cu, 1.5% Zn, 27 g/mt Ag, and 0.85 g/mt Au. The mining method is transverse blasthole stoping, mining primary and secondary stopes. The production of this 4,300 t/d operation was accomplished using two mining horizons; from the 655 m level to the 415 m level and from the 860 m level to the 680 m level. The main sill pillar is between the 680 m level and the 655 m level. The second sill pillar is between the 885 m level and the 860 m level representing a quarter of the main sill pillar in size. Since 2002, production has gradually decreased and mining activities are expected to end in mid-2005. The sill pillar production will represent almost 25% of the total mine production. The overall recovery of the sill pillars stopes will be discussed in this paper. To recover the sill pillars, more than 1,500 m of development was planned in or under paste backfill. The first sill pillar stopes under paste backfill were mined out in 2002 with excellent results."

Jan 1, 2005

By Tapio Leskinen

"l. IntroductionA reliable sampling system is the basis for an on-stream analyzer. This was realized in Outokumpu company when the development work of the Courier 300 On-Stream X-ray analysis system was started. Because Outokumpu Oy is a mining and mineral processing company, its engineers have been able to thoroughly test sampler prototypes in actual operating situations. The sampler development has been going for several years in close co-operation between company's concentrators, the Institute of Physics and the Instrument Division of Outokumpu Oy. The most active part of the work was done between 1969- 1972. Besides the reliable operation of a sampler special attention was paid to the representatively of the samples taken by the samplers. 2. The Courier 300 Sampling SystemThe sampling system comprises up to fourteen sampling circuits in one Courier analysis system. Each circuit consists of the following components:1. Primary sampler 2. Secondary sampler 3. Cleaner screen 4. Feeding tank5. Sample cell6. Timer-controlled sampler7. Pumps, sumps and pipesSecondary samplers, cleaner screen and feeding tanks are included in the secondary sct1npling system. The sample cells are located in the spectrometer cabinet of the analyzer."

Jan 1, 1976

By Brandt Porter, Lawrence K. Nordell, Alexander Potapor

"Improving comminution efficiencies with better machine geometries and motions, improved nip angles, rock movement control, and voids regulation among rocks are some of the next steps to better machine performance. Recent gains (~30%) using high pressure grinding rolls (HPGRS) and vertical roller mills, in theory and practice, are based on Prof. Klaus Schönert’s academic studies (1979–1996) on rock breakage physics. More recently, University of British Columbia Prof. Bern Klein’s studies (2006–present) via the Ph.D. thesis of Z. Davaanyam (2015) further validate theory with practice from laboratory measurements used in this paper.They demonstrated ideal rock compression breakage, within HPGR and vertical roller mill machines using a piston-die apparatus. Similar rock size range is used. The piston-die confine rock breakage behavior. However, these studies do not extend to larger rocks (> 75 mm), and do not demonstrate the influence of rock voids among bifurcation of rocks during comminution. Further, machines fed with larger rock sizes, such as gyratory, jaw, and cone crushers, are not designed or evaluated for geometry nip angle efficiency.Herein we illustrate a performance gain of a new comminution machine, the conjugate anvil-hammer mill (CAHM), first presented at SAG 2011 (Nordell, 2012). The CAHM machine digests rock sizes 400% larger than HPGR, improves rock grip/nip geometry, better improves rock voids, improves surface wear life > 500%, and improves rock containment and slippage during compression. In all, the CAHM machine shows 22 potential improvements over the HPGR. Most importantly, CAHM shows a 50% kWh/ton improvement compared to the HPGR. Our studies use an advanced Discrete Element Method (DEM) computer program called ROCKY. ROCKY simulates moving boundaries, surface wear mechanics, and incorporates rock breakage physics based on the fundamentals of JKMRC T10 protocol [×] with tuned A × b breakage parameters.We calibrate rock breakage in our DEM code to mimicking both UBC laboratory piston-die and HPGR comminution measurements. We then model CAHM with these known ore and machine properties. Differences are illustrated using DEM techniques on each machine, including key points of when each: use geometry; initiate bifurcation breakage; provide a map of particle size distribution by location; illustrate the importance of controlling voids to minimize agglomeration after breakage; machine performance limits; and kWh/ton benefit."

Jan 1, 2016

By Peter Lighthall

What is an engineering firm?s role? ? The ideal situation is a life of mine service alliance with the owner ? Engineering firms are long term custodians of information ? Maintain consistency with established closure objectives, adjust closure plans to meet changing situations and technologies ? Develop range of solutions and present owners with risk profile The mine closure planning process ?new mines ? For metal mining, geochemistry is the issue ? The planning process: ?Sampling ?Waste characterization ?ARD prediction ?ARD control strategies ?Life of mine waste management planning ?Assessment of residual impacts ?Development of strategies for dealing with residual impacts ?Estimate closure costs ?One time decommissioning and reclamation costs ?Ongoing treatment/maintenance costs

May 1, 2006

By R. England

"This paper describes the objectives and design parameters for the operation of a computerized In-The-Hole (I. T.H.) Drill. The principal objective is to add computer control to an Inco 00-60 I. T.H. (CMS-CD-90) drill in order to drill holes with greater accuracy. The computer provides control of the angle of the hole by maintaining the orientation of the drill head, and optimizes the straightness of the hole by maintaining a constant force on the drill bit.The second objective is to provide the greatest degree of operational automation, so the objective outlined above can be accomplished with a minimum of operator intervention.In order to provide full operational automation it was necessary to also provide the capability for the computer to add and remove drill rods. To accomplish this, a rod-handling mechanism consisting of a rod storage rack and rod manipulator arms was used.IntroductionMining machinery that lacks automatic control has been found to show a high degree of variation in work output and performance quality when operated by different personnel. Differences in operator attitude, judgment, and skill are reflected directly by production statistics. The addition of automated control has the potential for considerable improvement in machine life and performance. Even with a more acceptable mine environment and much safer conditions than ever before, situations still exist where it is preferable to remove personnel for reasons of safety as well as productivity. Typical advantages of such situations are automated skip loading and hoisting, and the use of remote control load-haul-dump units exposed to open stopes.Other cases arise where heavy work is required under conditions where lighting is poor, floors are slippery, noise levels are high and dust and oil mist exist in the atmosphere. I.T.H. drilling is carried out under such conditions and is one operation where automation can easily be justified."

Jan 1, 1987

By C. A. Roloff

Demands for increased grinding production, lower-grade are and limited capital have resulted in ever larger grinding mills, some as large as 36ft (/1 m) in diameter and 12,000 hp (8,950 kw). The result is often f ewer machines per plant, with a greater dependence on each machine. To meet these reliability requirements, manufacturers of mills, drives, castings and other components have had to be innovative and creative in their design. Only by thorough review of past designs and practices and by model studies confirmed in field tests can the manufacturer have full confidence in the product. Because of the great interest in large mills, a short review of larger machines is presented. This discussion covers material feeding, bearings, the rotating element, drive trains and material discharge.

Jan 1, 1979

By G. A. Frame, J. G. Patterson

The 24,000-tpd Frood-Stobie mill grinding circuit operation and control are described. Changes implemented during the past three years to improve grinding efficiency and capacity are discussed.

Jan 1, 1971

By John G. Payne

The Pebble deposit contains three contiguous zones. In the Pebble West zone, granodiorite stocks intrude gently warped volcanosedimentary rocks that had been intruded by diorite sills and two felsic intrusion breccias. In the Central zone, volcanosedimentary rocks are cut by diorite and granodiorite sills; the latter are genetically associated with the granodiorite stocks. In these zones, widespread potassic alteration consists of brown biotite and K-feldspar, with abundant quartz-carbonate-sulphide vein stockworks. Chalcopyrite/pyrite ratios range from 2/1 to 1/20. Diorite hosts the highest-grade mineralization, with much of it being disseminated. Patchy, later phyllic alteration is moderate and commonly depleted in copper. The Pebble East zone occupies a granodiorite stock and intruded host rocks below an eastwardly thickening wedge of barren Tertiary volcanic and sedimentary rocks up to 600 m thick. Brown biotite alteration and copper mineralization are strong, with chalcopyrite/pyrite ratios commonly over 1/1. The zone extends to a depth of at least 1200 m below surface; some drill holes bottomed in strong mineralization. Later, weak to moderate sericitic alteration removed some chalcopyrite and locally remobilized gold. The Pebble deposit has a Measured/Indicated resource of 3 billion tonnes grading 0.28% Cu, 0.32 g/t Au and 0.015% Mo (= 0.5% copper-equivalent) and an Inferred resource of 1.13 billion tonnes grading 0.30 g/t Au, 0.27% Cu and 0.015% Mo (0.55% copper-equivalent). The Pebble East zone has an Inferred resource of 2.13 billion tonnes grading 0.55% Cu, 0.34 g/t Au, and 0.037% Mo (0.97% copper-equivalent). The Pebble East zone is open to the east and to a lesser extent to the north, south, and to depth.

May 1, 2006

By Patrick Frenette

The Goldex Mine is an underground gold mine using a unique mining method where a single very large stope is being created. In order to maintain stability of the walls and roof of the stope which is 450m, 250m high and up to 120m thick, ore is left in the stope as long as possible and acts as backfill would do. At many occasions during the mining sequence, the walls will be exposed on height ranging from 30 meters up to 250 meters. A monitoring system comprising in-stope laser surveys, a seismic system and an array of extensometers and sloughmeters all remotely connected to surface is used to observe the shape and evolution of the stope. This paper will focus on the results obtained following some of the large blasts and on the long term monitoring of the stope.

May 1, 2011

By Jesse L. Duke

Outline ?Understanding the context ?The Business, political, social and legal environment ?Recipes for Success (three Ps) ?Develop effective Partnerships/relationships ?Plan carefully ?Actively Manage the ?Process? Business Environment ?Nunavut?Impressive mineral potential ?Emerging diamond industry ?Dominated by Juniors ?NWT ?Maturing Diamond industry ?Emerging oil and gas industry ?Yukon ?Alaska Highway Pipeline ?Junior-dominated exploration and development ?Growing acknowledgement in Canada of the importance of northern resources ?Shift of thinking: north-south infrastructure (vs. East-west)

May 1, 2006

By Gerald S. Cole

It used to be that a science/engineering presentation on "light weight" at a metallurgy conference, would relate to the materials science, processing, component fabrication and applications of aluminum, magnesium and titanium. Within the automotive industry, light weight now includes how to "lighten up", how to lightweight, or how to mass reduce vehicle components and systems. Increasingly stringent global emissions-reduction requirements require increasing vehicle fuel efficiency; mass reduction is an enabler to achieve this. While light metals certainly are the basis, a host of other materials can be used to optimize mass reduction while meeting vehicle performance, safety and cost requirements. New grades of ultrahigh strength steels and even nanosteels can be thinned down and save over 1/3 the mass vs conventional mild steels. A compacted graphite cast iron engine can be made lighter than an aluminum one. Aluminum components in vehicles were only castings; now aluminum stampings, forgings and extrusions are becoming more visible components of mass reduction. Lower mass high temperature polymers, and carbon fiber polymer composites now replace aluminum and steel. These materials often require specialized processing and manufacturing techniques to produce a component, including superplastically formed twin roll cast sheet aluminum and magnesium, and hot stamped/in-mold quenched steels. The assembly of hybrid structures requires unique joining/bonding, and corrosion-inhibiting techniques that might include sophisticated structural adhesives. This thinking "light" presentation, will conclude with a discussion of U.S. and Canadian government engineering and research support for mass reduction, including the proposed $148 M American Lightweight Materials Manufacturing Innovation Institute.

Jan 1, 2014