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By S. G. Shabestari

In the metal casting industry an improvement of component quality mainly depends on better control over the production parameters. Thus, thermal analysis cooling curve of the alloy is used for process control in aluminum casting industry. Cooling rates of the alloy during solidification process affect microstructure, grain size, eutectic silicon morphology, and dendrite arm spacing (DAS). In this research, effect of cooling rate on the microstructure and solidification parameters of 319 aluminum alloy that is a widely used alloy in automotive industry, has been investigated by means of thermal analysis. Seven different cooling rates have been obtained by using CO2-bonded silica sand molds with two different wall thicknesses, hot-work tool steel molds (H13) with and without coating, thin-wall steel molds with different coatings. In each case, cooling curve and first derivative cooling curve have been plotted by use of very accurate thermal analysis equipment. Effect of different cooling rates on solidification parameters e.g. Nucleation temperature (TN,a), nucleation undercooling (ATN,a), recalescence temperature (TR,a), solidification range (AT,s), and total solidification time (t 0 have been studied in the liquidus region. Microstructural evaluation has been carried out and DAS were measured in all solidification conditions. A numerical equation was proposed to predict cooling rates via measuring DAS in 319 aluminum alloy. Nucleation process and the effect of cooling rate have been interpreted by using thermal analysis cooling curves and microstructural study.

Jan 1, 2004

By S. Vézina

"Environmental issues have evolved considerably over the last two decades. The main contributing factors, to name a few, have been the changing values of modern societies, the globalization of trade and its linkage to environment, evolution and accessibility of information/ communication technologies, better educated populations, climate change, longrange transport of toxics, and the increasing influence of non-governmental organizations (NGOs) and multistakeholders.As well, environmental management of mining operations had to be realigned in order to meet these new realities and to respond to more elaborated regulations oriented towards sustainability. Environmental management systems (EMS) have been introduced not only to meet the assurance of conformance to regulations but also to prevent pollution and to apply the continuous improvement of mining processes. EMS models have been developed and certification to international standards (e.g. ISO 14 001) is a common practice.Globalization has imposed challenges and additional requirements to environmental management. Developing a mine in emerging countries implies dealing with international agencies, local communities, and a variety of government infrastructures to obtain a “license to operate.” This paper presents the structure of Cambior’s EMS and how it was adapted and implemented in the company’s operations in South America."

Jan 1, 2006

By M. A. Creaney

"The Construction Group is responsible for the construction of all of Placer Dome’s major projects and contributes to the development of most major feasibility studies. This group includes an international collection of Placer Dome people who have built mines in Papua New Guinea, Australia, Chile, the United States and Canada. This paper outlines the changing role of the Construction Group from the early days of single projects to today, when several projects are in various phases from feasibility to construction. The projects’ total annual budgets have from time to time exceeded one billion dollars. IntroductionAs the competition increases globally between the major gold mining companies, the impetus continues to build mines at the lowest cost with the shortest construction schedule. Placer Dome has more than met that challenge by building mines around the world at a pace that was not contemplated 15 or 20 years ago. Since 1960, Placer Dome has built 30 mines and expansions at a cost of nearly 4.5 billion dollars.In the last six years alone, Placer Dome has built 14 mines and expansions, worth 2.6 billion dollars. The company’s success is due primarily to Experience, Innovation, People and Standards.The diversity between projects, let alone the pace, has been a challenge. Placer Dome has built mines around the world in a variety of extreme climates and distinctive cultures. The construction experience gained from these projects has allowed Placer Dome to develop an extensive knowledge and data base making it easier to “fast track” projects.Through the years Placer Dome has developed a human resource base. It now has an experienced and adaptable core team of people able to set up construction projects and build mines anywhere in the world. By developing standards and systems to support the projects they can act as soon as a new project is approved, and complete the projects quickly and effectively. The result is that Placer Dome now has the construction expertise to build its own mines, giving them the competitive advantage that allows them to design and construct a mine in the least time at the lowest capital cost. This was demonstrated in March 1997 with the completion of the construction of two new mines in 12 months."

Jan 1, 1998

By E. Amini

"While methods exist to allow the simulation and optimization of existing flotation operations, there is a deficit in the ability to predict the performance of a new ore type pre-processing. A laboratory scale batch flotation testing methodology has been developed to assess the flotation potential of ores (known as the JK Floatability Index or JKFI). Previous work conducted by Alexander and Collins (2008) showed that the test could be used to predict full scale results in base metal ores. In this work, JKFI tests were applied to three different types of ore and one blend from a greenfields gold deposit to show the test applicability to flotation of precious metals. The results from the JKFI test on one ore type were then used to predict the response of all ore types (including the blend). To validate the predicted kinetic parameters, a comprehensive survey was performed on a pilot plant where each of ore types was processed in the circuit. An acceptable agreement was found between the experimental recoveries and predicted recoveries which indicate the potential of this method for use in predicting the flotation response of an ore.INTRODUCTIONOver 100 years, flotation has been considered an efficient method to concentrate different types of sulphide and oxide minerals and coal. Thus, numerous research studies have been undertaken to find an appropriate model to predict the behaviour of particles in flotation circuits (Barnwal et. al., 2006; Bascur and Herbst, 1983; Cecile and Villeneuve, 1991; Deng et. al., 1996; Zheng et. al., 2006). Most methods are based on the ore flotation response in an industrial plant which is expensive and time consuming to characterise. It is difficult to reliably predict flotation response for new types of ores in industrial scale plants.The floatability component modelling (FCM) approach, developed within the Australian Minerals Industry Research Association (AMIRA) P9 project, has been used to derive models of operating flotation plants for the purpose of simulation and optimisation (Alexander and Morrison, 1998; Alexander et. al., 2000; Varadi, 2006). This approach has been applied at a large number of operating sites treating a wide variety of ores. The approach requires metallurgical surveys to be undertaken in conjunction with batch flotation tests and cell characterisation. This allows ore and machine parameters to be derived, which are then used in the P9 Flotation Model. The development of a FCM generally requires a large commitment of resources and time. While there has been significant support of this approach in industry, the FCM approach is limited to ores already being processed (Runge, 2004; Wightman, 2006)."

Jan 1, 2009

By Alfred E. Pugsley

PAYMASTER CONSOLIDATED MINES, LIMITED, began an investigation into the economy and use of detachable bit drill-steel in June, 1937. This investigation has continued to the present time, and was made necessary by transportation and distribution difficulties that had arisen through the use of standard steel in three widely separated mine areas serviced by a central steel-sharpening shop. Detachable bit drill-steel performance was first studied in the workings of No. 2 mine, where the rock being drilled was composed mainly of porphyry or tourmaline, and where standard drill-steel transportation costs had been excessive. The results obtained in this early work definitely established the economy of detachable bit drill-steel at No. 2 mine. This conclusion was reached when the 're-grind' system of re-sharpening dulled detachable bits was 1n use. Preliminary observations on the performance of detachable bit drill-steel in the quartz-carbonate veins of No. S and No. 6 mines gave encouraging results, and warranted a large-scale investigation under practical mining conditions. All drilling operations were gradually changed over to use of detachable bit drill-steel. This change was completed by February, 1938.

Jan 1, 1939

By P. Klossek

It is estimated that China accounts for 94% of the world supply of rare earths (Roskill, 2011). This fact, together with the impact of China?s export policy, poses a substantial risk to the security of the rare earth supply as well as a rare earth price risk. This situation has motivated an increase in the number of rare earth projects under development, i.e., there are currently more than 440 worldwide (Technology Metals Research, 2012). However, economically and environmentally acceptable processing technology to produce tradable products from rare earths (e.g., separated rare earth oxides) is not freely available on the market at the moment. In this respect, a lot of research and development has been initiated on this topic, in academia as well as in industry. Using a proprietary model and scenario-based analysis, we studied the impact that the development of rare earth processing technologies would have on the rare earth market and the economic feasibility of rare earth projects mentioned before. The analysis showed that this impact varies depending on the technology type (e.g., technology can affect project production volume, cost structure or both) and the legal context of the invention (e.g., free or limited by patenting availability of a new technology). The effect of a technology which influences project production volume is not the same as of a technology which changes project cost structure. The impact of a patented processing technology differs from the impact of a processing technology which is freely available on the market. In the case of a new technology which is limited by patenting, its impact depends on the market position (?producing?, ?next-coming?, or ?not producing? project) of the patent holder. The paper contributes to existing research by studying the dependence of the expected micro- and macroeconomic impact of rare earth processing technology developments on the properties of a new technology (e.g., costs, legal framework etc.). By this means, the paper adds to existing knowledge and attempts to make the rare earths market more transparent and predictable from a perspective outside China.

Aug 1, 2013

By M. L. Trépanier

"Engineering and technical services are supplied by the Engineering Department, located at Thetford Mines, Quebec, approximately 60 miles southwest of Quebec City. The department serves the three operating mines in the Thetford area, the Asbestos Hill mine at Putuniq, Nouveau Quebec, and the Nordenham plant at Nordenham, West Germany. The Engineering Department is responsible for supplying the following services. 1. Administration and coordination of capital projects. 2. Engineering, design and drafting services for in-plant changes or improvements. 3. Preparation of geological plans for mine planning and ore reserves determinations. 4. Short-, medium- and long-term mining plans. 5. Rock mechanics studies and monitoring. 6. Grade control monitoring. 7. Environmental control engineering and construction. Details of the organization and services rendered will be the basis of the paper."

Jan 1, 1976

By John Steele

The goal of this project is to detect the presence of objects behind haul trucks and to provide an alarm to the driver if such objects are detected. Objects of interest include people, pickups, other equipment, and large rocks. Another goal is to see if the system can identify the existence of a berm and determine the distance from the truck to that berm, so a safe backup distance can be computed and used as a reference. This paper presents results that demonstrate that such a system is feasible and includes results from work at a local quarry. Architecture of the system is provided and the various subsystems are discussed. Details of the algorthims are included and discussion of the issues involved in developing a fieldable system are also included.

May 1, 2003

"NI 43-101 is a rule that governs how issuers disclose scientific and technical information about mineral projects to the public in Canada. The disclosure standards apply to oral statements as well as written documents and websites. NI 43-101 does not apply to disclosure concerning petroleum, natural gas, bituminous sands or shales, groundwater, or coal be methane. NI 43-101 first came into force on Feb. 1, 2001 and was revised in December 30, 2005. As a “National Instrument”, the law has been passed in each provincial and territorial legislature across Canada.“PART 1 DEFINITIONS AND INTERPRETATION 1.1 Definitions - In this Instrument “adjacent property” means a property(a) in which the issuer does not have an interest;(b) that has a boundary reasonablyproximate to the propertybeing reported on; and (c) that has geological characteristics similar to those of the property being reported on; “data verification” means the process of confirming that data has been generated withproper procedures, has been accurately transcribed from the original source and is suitable to be used; “development property” means a property that is being prepared for mineral production and for which economic viability has been demonstrated by a feasibility study; “disclosure” means any oralstatement orwritten disclosure made by oron behalf of an issuer and intended to be, orreasonablylikely to be, made available to the public in a jurisdiction of Canada, whether or not filed under securitieslegislation, but does not include written disclosure that is made available to the public only by reason of having been filed with a government or agencyof government pursuant to a requirement of lawother than securities legislation; “early stage exploration property” means a property that has(a) no current mineral resources or mineral reserves defined; and (b) no drilling or trenching proposed; in a technical report being filed in a local jurisdiction; “exploration information” means geological, geophysical, geochemical, sampling, drilling, trenching, analytical testing,assaying, mineralogical, metallurgical and other similar information concerning a particular property that is derived fromactivities undertaken to locate, investigate, define or delineate a mineral prospect or mineral deposit; “feasibility study” means a comprehensive studyof a mineral deposit in which all geological, engineering, legal,operating, economic, social, environmental and other relevant factors are considered in sufficient detail that it could reasonably serve as the basis for a final decision by a financial institution to finance the development of the deposit for mineral production; “historical estimate” means an estimate of mineral resources or mineral reserves prepared prior to February 1, 2001;“IMMM Reporting Code” means the classification system and definitions of mineral resources and mineral reservesapproved by The Institution of Materials, Minerals, and Mining in the United Kingdom, as amended; “JORC Code”means the Australasian Code for Reporting of Mineral Resources and Ore Reserves prepared by the Joint Ore Reserves Committee of the Australasian Institute of Mining and Metallurgy, Australian Institute ofGeoscientists and Mineral Council of Australia, as amended; “mineral project” means any exploration, development or production activity, including a royalty interest or similarinterest in these activities, in respect of diamonds, natural solid inorganic material, or natural solid fossilized organic material including base and precious metals, coal, and industrial minerals;"

Jan 1, 2003

By J. Álvarez, J. Mesías, C. O. Gómez

"Operations routinely run flotation tests in laboratory mechanical cells to determine adjustments to plant operation based on feed flotation response or the effect of new reagents and dosages. The metallurgical results of these tests are certainly affected by changes in bubble size, which simultaneously impact the recoveries of the collection and froth zones. It is known that bubble size depends on the characteristics and operation of the machine in use, particularly on the gas flow rate delivered to the unit and the selected frother type and dosage. Although flotation rate constants have been related to bubble size, bubble surface area flux seems to be a more fitting variable to correlate flotation kinetics and cell performance, as it integrates bubble size and superficial gas velocity effects. However, although some evidence has been provided, a categorical relationship between cell recovery and bubble surface area flux has not been established. Our interest is to demonstrate this relationship to use it as a basis for developing soft sensors to track on-line collection zone recovery in cells. Flotation tests were designed to produce Cu concentrates for a range of bubble surface area flux values, obtained through changes in frother concentration at a constant gas flow rate, and by increasing gas flow rate at the same frother concentration. The tests were run on samples prepared from an ore batch supplied by a local operation, following strict grinding and flotation procedures, with a shallow froth to approximate cell recovery to that in the collection zone. Bubble sizes were determined using the sampling-for-imaging technique developed at McGill. The results unequivocally showed a consistent positive correlation between cell recovery and bubble surface area flux, and significant variations in performance when frother addition and gas flow rate were changed.INTRODUCTIONMineral flotation is a separation process to produce concentrates of valuable minerals by selective attachment of particles to the surface of bubbles. The process is carried out in machines where air is injected through a mineral pulp to form bubbles, and operated to create two zones: a bottom one (collection zone) where bubbles are continuously generated under conditions adequate to form bubble-particle aggregates by collision of the rising bubbles with suspended particles; and a top one (froth zone) where bubbles and bubble-particle aggregates continue to rise while concentrating and forming a froth layer for water and entrained particles to drain back to the collection zone, before overflowing as a concentrate stream. The phenomena occurring in these zones are complex and, in many cases, interactive, as they simultaneously affect stages of the particle separation sequence occurring in both zones. Although there have been significant advances in instrumentation to characterize particle and bubble populations, these have not resulted in knowledge to explain or models to describe phenomena from fundamental principles. Measurements continue to be limited to the development of empirical models for predicting the effect of operating variables on performance."

Jan 1, 2016

By C. Van Den Heuvel, C. B. Van Buuren

BIOX® has been successfully demonstrated over the past 2 decades for the recovery of gold from refractory sulphide concentrates. To date 12 successful BIOX® plants have been installed in 8 countries spanning 4 continents with the 13th installation currently nearing completion in the Philippines. In 2010 BIOMIN introduced the ASTER™ process for improved water balances in commercial BIOX® applications by supporting tightening environmental legislation on water usage and availability in both arid and tropical regions. Previously, a common challenge for BIOX® plants was the inability to recycle thiocyanate containing water due to the low tolerance of the organisms. ASTER™, a biological thiocyanate and cyanide destruction process, renders a non-toxic solution for re-use in BIOX®. Two commercial ASTER™ plants are in operation with the 3rd ASTER™ plant under construction in the Philippines. A 3rd BIOMIN technology, specifically developed for double refractory ores is available for implementation. The HiTeCC process has shown considerable success on ores where competition from disseminated carbon has rendered ineffective gold recoveries. Through HiTeCC, gold is desorbed from the carbonaceous matter by manipulating the ionic strength and temperature of conventionally treated CIL product. One Australian commercial plant utilises HiTeCC while a 2nd installation is set for commissioning 4th Quarter 2014. BIOMIN’s premier solutions for refractory gold processing are described herein.

Jan 1, 2014

By J. A. Herbst

Professor Klaus Schönert and his students used fundamental physics to develop many of the principles required for the design and scale-up of "Gutt Bett Zerkleinern" devices such as the high pressure grinding roll (HPGR) or the high pressure roll crusher (HPRC). As the equipment evolved so have the tools used for its selection and analysis. In the current paper discrete element modeling (DEM), Metso's proprietary Fast Breakage simulations, and Schönert's packed bed piston test are combined with energy based population balance models (PBM) to yield an alternative to ore characterization and equipment selection by pilot plant testing. The resulting methodology is used to take the next step in understanding these devices with a view toward predicting plant performance. This paper describes a journey beginning with precise modeling of a small HPGR including stud geometry and system hydraulics. A key to predicting performance is the accurate modeling of individual particles, their motion in the machine, the probability of breakage and redistribution of fragments, and the inter-particle breakage events that occur between the rolls at different pressures, speeds and moisture levels. Advanced DEM simulations and particle breakage characterization methods provide the necessary technology. The resulting combined models were validated using a small diameter laboratory scale unit. The validated physics based model was used then used to predict the performance of plant scale units using a specific energy based scale-up method. Scale-up results are analyzed in terms of power draw, throughput, and discharge product size distribution.

Jan 1, 2012

By W. G. Worcester

THE chief object in presenting this paper on bentonite is to attract general attention to one of the least known and most neglected industrial minerals of Canada, a mineral of extensive commercial possibilities, as evidenced by its development and exploitation in other countries, principally in the United States and Germany; countries upon which some of our most important Canadian industries are dependent for their supply of special clays, such as Fuller's earth and activated bentonite. It was in view of these conditions and the knowledge of the presence of large quantities of bentonite in the Canadian West that the work here reported on was under-taken. While the investigational studies have not been completed, the results indicate that among the many samples tested there are some of real merit and industrial importance. While it has been the author's privilege to examine deposits and samples of bentonite from all of the Western provinces, his chief activities in the field and in research studies have naturally been confined largely to Saskatchewan materials. Notwithstanding this, however, this paper is presented in the hope that it may stimulate a more general interest in, and study of, Canadian bentonites as a whole, a matter of such importance that provincial boundary lines should be overlooked. GENERAL CHARACTERISTICS OF BENTONITE According to Schurecht and Donda (1), bentonite is commonly composed of the mineral montmorillonite, (Mg,Ca)O.Al203 5SiO2 .nH2O, though some are known to consist of beidellite, Al2O3 3SiO2.nH2O: where n is approximately 4, and in certain cases the Al2O3 may in part be replaced by Fe2O3. For present purposes, however, it may be sufficient to state that, in general, bentonite is a "soapy' clay-like mineral or group of minerals composed largely of hydrous aluminium silicate, but frequently carrying small percentages of the alkalies, alkaline earths, and free silica, as well as silicates, gypsum, and other admixed detritus such that purification is usually necessary.

Jan 1, 1937

By Hrayr Agnerian

The fair market value of an exploration property is determined by its potential to host a mineral deposit. This potential is gauged by the results of previous exploration, exploration stage, meaningful past expenditures and remaining targets that are not yet tested. Values of exploration properties can be viewed as distinct points in a three-dimensional space defined by orthogonal axes, namely: Exploration Stage (x-axis); Cumulative Expenditures (y-axis); and Property Value (z-axis). In general, these values are estimated by applying activity factors on previous exploration expenditures, e.g. an activity factor of 100% for an active property with good potential and a factor of 50% for an active property but past expenditures have not upgraded the property. At certain periods, a market factor may also be applied to reflect the activity of mineral property acquisitions. For properties that do not exhibit any exploration potential, only nominal values are applied.

Jan 1, 1996

By C. A. Ingram

The Cigar Lake ore body is a high-grade uranium deposit situated within water-saturated sandstone. In order to extract the uranium ore remotely, ensuring minimal radiation dose to workers, and also to access the ore from stable ground, the Jet Boring System (JBS) was developed. This method of mining involves drilling a pilot hole up through a frozen ore body and utilizing a high-powered water jet to mine out cavities. During the mining process an ultrasonic sensor will be used to provide feedback to the operator, who is located beneath the ore body, as to the dimensions of the cavity. However, more precise data is required to determine final shape, volume, and location of the cavity for mine planning purposes. Selecting a device that will provide sufficient range data in the challenging environment will be vital to optimizing the mining process. Major issues include fog build up and flying debris during mining, and an environment that is wet, dark, and cold A test cavity has been designed and constructed at the Saskatchewan Research Council (SRC) so that a study comparing three different technologies, as prospective candidates for the survey system, can be conducted. The devices being evaluated include a Senix ultrasonic sensor, an MDL Cavity Auto-Scanning Laser System (C-ALS), and a MESA Time of Flight (ToF) camera. The ultrasonic sensor is known to provide range data in foggy conditions but has low accuracy. The C-ALS has been developed for surveying remote cavities but is expensive and does not provide reliable data in fog. The ToF camera provides a high volume of data in a short time period, with potential to provide accurate information in extreme conditions, but has not been tested in a mine cavity application. Iterative closest point (ICP) registration is applied in an attempt to create a 3D point cloud from the scan data and to also compute rotation and translation of the ToF camera. This paper presents an overview of the challenges involved in conducting a survey within a JBS mined cavity, the analysis used to determine the suitability of each device, and the data collected from the test cavity.

Aug 1, 2013

By T. Rigg, J. N. Stone

"The process described has been developed to utilize low-grade scrap -turnings, borings, tin cans and other types of ferrons scrap which currently has been of limited or no use in conventional steelmaking processes. If scrap of this type can be converted into high-purity iron by chemical means then there is a potential saving of several million tons of metal annually in North America.The process is chemically quite simple and consists of dissolving ferrons scrap in hydrochloric acid, followed by evaporation and crystallization of the resultant solution to yield ferrons chloride crystal.s. These crystals are dries, briquetted and converted to non sponge by reduction in hot hydrogen. The HCl produced from the reduction step. is absorbed in water and the hydrochloric acid so produced is returned to the dissolver circuit. The hydrogen produced from the initial dissolution of the scrap is used to reduce the ferrons chloride. Purity is maintained by bleeding off impure chloride solutions from the evaporator-crystallizer circuit, and converting these chlorides to oxides and HCI in a high-temperature spray roaster. The HCl produced in the roaster is absorbed in water and the hydrochloric acid returned to the dissolver."

Jan 1, 1970

By W. I. van Drunick

The Anglogold Ashanti (AGA) Navachab single stage SAG mill has provided an excellent setting for incremental optimization. Over the past decades, several interventions have resulted in marked improvements in specific performance; including steel ball scat removal, re-design of the mill lifters, replacement the pebble crusher and cyclone cluster, as well as the use of a vibrating screen in place of a discharge trommel. Recent initiatives now include an operating fine DMS circuit, studies on pre-crushing of the ROM feed and also fine-screening as an alternative to hydrocyclone classification. The current optimized state of the Navachab mill allows it to operate at approximately 20% higher efficiency when compared to mills of similar shell dimensions in gold mining, treating similar ore. This paper describes the systematic improvement of the SAG circuit to its current state.

Jan 1, 2012

By K. D. Genn, A. Mucha

This paper deals with Hilton Mines' approach to the maintenance of wear items such as truck boxes, shovel buckets, tractor pads, crawler sprocket idlers and the drop-ball. Each will be given a brief. description as to application, design, kind of materials involved and type of wear. The maintenance procedure is then outlined in terms of materials used, preliminary preparation, and welding and machining practices. The service history of new and re-paired items and the relative economics of repair vs replacement will then be presented.

Jan 1, 1969

By Z. I. Zaki

Synthesis of TiC /A1203 Composite from TiO2, Al and graphite using combustion technique has been investigated at different initial temperatures; room, 400 and 600 °C. The effect of initial temperature on the composition of the product, wave velocity and combustion temperature of the reaction was studied. The measured combustion temperature and wave velocity were increased with increasing the initial temperature of the combustion reaction. The maximum wave velocity obtained was 5.9mms-1 when conducting the combustion reaction at initial temperature of 600 °C. Oxidation resistance of the obtained composite was also studied at the temperature range 300-800 °C. No oxidation is detected before 400 °C while it takes place effectively at 700 °C forming different titanium oxides. Wave velocity measurements method was used to calculate the activation energy of the reaction between the starting materials. It was found to be 316.34 kJ mol 1 at the temperature range that was studied.

Jan 1, 2007

By Lawrence Devon Smith

"The concept of risk is well established in the mining industry. It is acknowledged when estimates of reserves are expressed as proven or probable, when mining and metallurgical recoveries are applied to the ore, and when contingencies are added to costs. However, it is difficult to provide a quantitative assessment of risk. The significant sources of risk in a mineral project and how these are addressed in project evaluations are discussed. The discount rate is examined as a fundamental means of reflecting risk in discounted cash flow evaluations. Current industry practice is discussed, and a methodology for the analysis of risk levels is proposed that assesses the constituent components of the discount rate: real interest, mineral project risks, and country risk.IntroductionThis paper examines the components of the discounted cash flow discount rate and proposes a method of estimating project-specific discount rates. The motivation for this work comes from experience of project evaluations in which owners and purchasers had agreed on virtually every aspect of the evaluation except how much the project was worth. Agreement was reached on reserves, grad~, recovery, capital costs, operating costs, taxes, and, by combining these components, even on the fmal cash flow values. The only difference in opinion concerned the discount rate to be used in the calculation of the net present value. Depending on the life of the project, such differences of opinion can cause a variation of more than 50% in the value placed on a project! This is illustrated in Figure 1."

Jan 1, 2003