Search Documents

By Michael Samis

The real option valuation method is often presented as an alternative to the conventional discounted cash flow (DCF) approach because it is able to recognize additional project value due to the presence of management flexibility. However, these two valuation methods can be separated on a more fundamental level by their differences in risk discounting. Real option valuation applies the risk-adjustment to the source of uncertainty in the cash flow while the DCF method adjusts for risk at the aggregate level of net cash flow. This seemingly small difference is the reason why the real option method is able to differentiate between projects according to each project?s unique risk characteristics while the conventional DCF approach cannot. This paper provides an overview of the real options and DCF valuation frameworks and discusses the differences in risk discounting that exist between the two methods. Using grade-school mathematics, this paper clearly demonstrates how, with real options, a unique project risk discount can be calculated which is directly linked to the project?s unique risk profile. It also highlights why the DCF method fails in this regard and shows why a call to ?increase the Risk-Adjusted Discount Rate? is an incomplete solution at best. Finally, a heap-leach project and satellite reserve development project are valued with both techniques and the difference in investment conclusions is explained in terms of the risk-discounting concepts discussed here.

May 1, 2003

By Stephan I. Zajac, Roger A. Blais, John B. Stubbins

THE iron deposits of central Labrador occur within a relatively small area, herein called the Knob Lake Iron Range, in which a northwest-trending series of low hills and ridges defines the height-of-land at the boundary between provinces of Quebec and Newfound-land. Approximately two-thirds of the deposits are in Quebec and the remainder in Labrador, with several deposits straddling the inter-provincial boundary. These deposits are being exploited in open-pit mines by the Iron Ore Company of Canada centered at Schefferville, Quebec. Since 1954 this company has produced more than 56 million tons of iron ore to become Canada's leading iron ore producer. With indicated reserves of more than 375 million tons of direct-shipping ore and large tonnages of iron formation amenable to beneficiation, this mining district is assured of a long life. This paper describes the Knob Lake iron ores and their geological settings and stresses the features that lead to a better understanding of their origin. The

Jan 1, 1961

By A. E. M. Warner, A. Vahed, P. J. Mackey

"Since early 2015, the price of nickel has dropped from the region of US$6/pound to current levels of around US$4.60/pound (March 2017), reflecting several market factors, but principally due to lower demand from China. Under such conditions, nickel companies have been under pressure to contain operating costs. In addition, labor and energy costs will continue to rise, while nickel ore grades will likely continue to drop. All major companies now accept the need for climate change action and consequently efforts are being made towards lowering carbon-based emissions. Nevertheless, meeting these challenges can also contribute to higher operating costs without parallel innovative developments - which at the same time, under current conditions, major companies are tending to curtail. In this paper, several productivity improvement opportunities to reduce unit operating costs at nickel sulphide and nickel laterite plants are reviewed. Opportunities include: (a) process technology and energy-type selection, production capability, optimization of process intensity and implementation of newer technologies; (b) improved productivity, equipment availability including maintenance best practice; (c) energy savings and recovery opportunities and use of energy surveys and, (d) process modeling and improved scheduling. Such improvements along with an uptick seen in nickel demand going forward should better position the world nickel industry.INTRODUCTION Nickel is an essential metal to modern society, primarily through its use as an important ingredient in stainless steel. Thus, stainless steel finds vital applications in food preparation facilities, as well as important uses in transportation and industrial applications. Canada has always played an important role in nickel production and nickel metallurgy. In the 1940s and 1950s, Canada supplied over 90% of the world’s nickel. However, this proportion has declined considerably to around 10% of the world nickel supply today. Still, Canada remains an important nickel supplier and contributor to nickel extractive technology. Due to the importance of nickel to society, nickel demand is expected to continually rise. On the other hand, nickel companies have been under pressure to contain production costs amid languishing nickel prices. While demand projections show nickel growth, there are uncertainties in actual levels of future market growth. Ore grades are dropping, while labour and energy costs, which are key cost contributors are rising, hence efforts to lower production costs will generally require innovative approaches."

Jan 1, 2017

By J. Y. Murdoch

TAXATION has become a major item in the operation of Canadian mines, and, as such, merits our most serious consideration. I feel it was a splendid idea for the Institute to set aside this time for a frank discussion of this important subject, and believe great benefit will result from a better understanding of the methods and underlying principles involved. Mining, as a great national industry, may quite properly be called upon to pay its fair share of the cost of running the country; and there is no tendency on our part to avoid this responsibility. There is, however, a very definite demand that the proportion be just, and fairly and sensibly applied. I believe that Mr. C. G. Williams, Secretary of the Canadian Metal Mining Association, and others, are giving details of the various Provincial and Dominion regulati6ns, so I shall not touch on that phase of the situation. However, there are some important factors to which I should like very briefly to call your attention. The first is the vital need for stability. As you all know, a considerable period must elapse between the preliminary stages of any mining venture and the time when it comes to production-or is finally abandoned as un-profitable. These early days are fraught with many unavoidable uncertainties. If, to these natural hazards, the apprehension of instability of governmental action be added, the risk becomes so great that capital seeks other and safer fields for investment, and many otherwise promising projects are thus discarded. There probably never has been a time in recent years when so much money was seeking investment as now. Under favourable conditions, the development of our great mineral resources would be a natural and attractive outlet for this money. The amount of taxation which the mining industry can properly absorb is of the utmost importance at this time, and it might be well to consider this question in its relation to the economic stability of our country, for it cannot be too greatly emphasized that direct taxation is only one item in the net return which our governments derive from the mining industry. Indeed, the many indirect benefits are so manifest that it would seem almost unnecessary to enumerate them! We almost invariably think of mine taxation as a direct company tax-overlooking the fact that sales tax, customs duties, acreage tax, income tax on mine dividends, foreign shareholders' dividend tax, and others, must all be taken into consideration. It would seem that the economic value of non-ferrous metal mining in Canada is not sufficiently understood and appreciated.

Jan 1, 1935

By A. G. Spencer

"The horsepower required to drive large grinding mills has increased dramatically during the past ten years. Limitations on the amount of power which may be transmitted by a single gear and pinion have resulted in the application of multimotor drives, with consequent loadsharing problems. It has also sparked the development of some entirely new drive concepts. In addition, the severe demands made upon the electrical system during the acceleration period have required that the selection of motors and electrical system design be closely coordinated. Moreover, the installation of such large process units results in downtime being very costly. The equipment selected and the plant maintenance philosophy must therefore be such as to minimize the risk of unscheduled downtime."

Jan 1, 1972

"6.1. Mineralogical Techniques ApplicableTo the Platinum-Group Elements6.1.1. IntroductionThe named platinum-group minerals (PGM) usually occur as grains smaller than about 200 microns and, even when present as larger grains as in nuggets, these are often complex multimineral intergrowths. Therefore, the PGM must be examined by microscopic techniques and, because all named PGM are opaque, they are suitable for microscopic study by reflected light. Special techniques for concentrating PGM and preparing suitable polished sections are detailed in Chapter 5. Another characteristic of the PGM is that the majority have very high reflectance at 589 nm, i.e., over 450Jo, but they range from about 38 to 74%. In contrast, micro-indentation hardness has a wider range from - 60 to - 3,000 kg I mm, and the PGM range from brittle to malleable.The small grain-size of PGM imposes certain limitations, or complications, on the usual mineralogical determinative methods of reflectance, micro-indentation hardness and X-ray diffraction. In addition, certain combinations of elements in some PGM render electron-probe analyses difficult. The usefulness and shortcoming of these methods, as applied specifically to the PGM, are discussed in the following sections. These are not, however, meant to be exhaustive descriptions of the techniques, which are fully described in other texts.6.1.2. Micro-Indentation HardnessDetermination of the Vickers Hardness Number (VHN) is discussed in detail in recent publications, such as Bowie and Simpson (1977) and Craig and Vaughan (1981). In addition, the recommendations of the Commission on Ore Microscopy (COM) of the International Mineralogical Association (IMA) are given by Criddle (1980). The usual small grain-size of the PGM, however, precludes the widespread use of this technique and very few PGM have, in fact, had their VHN determined at the COM-recommended standard load of 100 gf (cf. Cabri, 1981b, in Chapter 7). Examination of VHN data reported in the literature reveals that the few PGM whose microindentation hardness has been measured have incomplete VHN data, measured with loads other than 100 gf (Chapter 7). The small grain-size may also result in unreliable VHN data because, even though the correct load may have been applied, a thin grain will give erroneous data due to the matrix, or the grain may even shatter or pop out of the section. On the other hand, micro-indentations may give useful qualitative diagnostic clues. Moncheite, for example, shows fractures near the indentation (Chapter 7, Plate 1). In other cases, intergrown PGM produce different-sized indentations: e.g., froodite-michenerite-gold in Cabri (1972); isoferroplatinumtulameenite in Cabri et al. (1973); michenerite-moncheite in Cabri and Laflamme (1976) and Chapter 7, Plate 1; altaitemichenerite- testibiopalladite in Hudson eta/. (1978) and Plate 1, Chapter 7."

Jan 1, 1979

By Norman R. Ball

"Many people in the mining and metallurgical industries were brought up to embrace Henry Ford's pronouncement that ""History is bunk"" but it is not generally known that the same Henry Ford created and paid for one of the finest technological museums in the Western World. I am aware that many people feel that industry history is something you ask aging executives to do or that history is a clip-andpaste compendium of pictures re-discovered every 25 years or on the occasion of issuing a press release on plant expansion. Moreover, there are many who fear historians as somewhat deranged individuals interested only in corruption, injustice and sensational labour strife. Good history lies somewhere between the controlled P.R. handout and the hysterical attack. Writing good history is a difficult creative act based on the application of experience, insight, wide knowledge and careful reasoning to available evidence. To date, the Canadian mining and metallurgical industries have achieved a great deal but left too little evidence and it is this lack of evidence which must be corrected before it is too late. It is the purpose of this article to stimulate thoughts with regard to archives, one of the more important vehicles for the preservation of such evidence."

Jan 1, 1999

By Tony Breuer

Can international development NGOs and the mining industry find common ground and work together in the Third World? The Canadian Hunger Foundation/PARTNERS in Rural Development (CHF-PARTNERS) has, over the past forty years, implemented more than 800 rural community development projects in some 38 countries of Africa, Asia, and the Americas. Working with or for the Canadian mining industry offers both opportunities and risks. We can help a mining company ensure that the workers, their families and communities share adequately in the economic and social rewards from a mining operation in their area. We can contribute to the provision of sustainable livelihoods when an operation winds down. The company?s reputation as a good corporate citizen can be enhanced. On the other hand, mining companies and NGOs have generally very different values and missions. The risk of misunderstandings from conflicting motives and work practices is correspondingly high. Both partners must state their values and expectations clearly at the start of collaboration. The NGO must ensure that the company abides by acceptable ethical standards. It must not directly or indirectly subsidize a private company from its charitable donations. The mining company must satisfy itself that the NGO has the capacity, resources and experience to produce the results expected.

May 1, 2001

By J. Girard, V. Aubé, M. Barakate, S. Bellec, M. R. Eddahabi, Y. Chaik, M. Deshaies

"The activated carbon used in the carbon-in-leach (CIL) process to absorb gold is subject to breakage. This carbon breakage can be minimized, but it will always be necessary to deal with fine carbon particles, known as carbon fines. These fines contain a significant amount of gold and mining operations generally struggle with the treatment of this product. Since IAMGOLD’s Essakane mine is located in Burkina Faso, shipping carbon fines out of the country was not considered a viable solution due to the logistical burden and legal procedures in place. A benchmarking study demonstrated the complexity of treating carbon fines on site. IAMGOLD partnered with the host government to find an innovative approach to economically recover the gold locked in these fines. This paper describes the new circuits commissioned in July 2016 built to improve carbon fines collection, incinerate the carbon fines and leach the gold in the ashes produced by incineration. These new circuits successfully demonstrate that it is possible to extract more than 94% of the gold content in the carbon fines. This is profitable for the company as it improves the overall mill recovery rate by 1.0% to 1.5% and significantly decreases gold inventory build-up on site.INTRODUCTION The activated carbon used in the carbon-in-leach (CIL) to absorb gold is subject to breakage. This breakage can occur in the CIL tanks, the stripping circuit, the regeneration process or anywhere throughout the pumping and handling processes of carbon through the circuit. Fine carbon particles are invariably created and, because of their small size, present a large specific surface which favors gold absorption (Hilsher et al., 2014). At the very beginning of operations at Essakane, the carbon fines were recovered by means of a thickener and a filter press, but the circuit was undersized and inefficient. Subsequently, a decantation basin was used to settle the fines before the thickener. The settled fines were shovelled from the basin into bags. All these bags were stored in the backyard of the plant. The average tonnage of carbon fines recovered monthly was 23.5 tons with a gold grade at 1938 g/t."

Jan 1, 2017

By F. T. M. White, W. A. Bardswick

"The parameters of airborne minerallic particulates which create industrial dustiness, together with the physiological hazards caused by their inhalation, are reviewed. Various techniques of dust sampling are discussed and analysed, and the parameters referred to above are classified as the basis for methods of assessing the physical, chemical and mineralogical characteristics of dust-particle suspensions. The paper surveys those methods of assessment currently accepted by various statutory authorities, and reviews other methods that warrant attention and newer techniques that are being developed."

Jan 1, 1969

By W. Dingley, G. R. Hoey

"Thirteen Canadian sulphide ore mines were surveyed for corrosion control. The mines visited were a small, yet representative, proportion of this segment of the Canadian mining and metallurgical industry. Information on metallic corrosion and methods used to control it in underground workings and mills was gathered (a) by discussing corrosion problems with company personnel, (b) by examining equipment and structures during under-ground and mill tours, (c) by photographing corrosion sites, and (d) by collecting and analyzing mine water samples.The corrosion survey, which is summarized in the re-port, leads to the following general conclusions. Mine environments are corrosive, particularly when the mine w1a-ter is acidic. Because of a lack of good corrosion control measures, excessive deterioration of equipment due to corrosion occurs in mines. Mill environments are also corrosive, but in some cases good preventive measures are being taken to effectively control corrosion losses.Ways to reduce corrosion losses in sulphide ore mines and mills are discussed. The main areas for more corrosion research and development are selection of materials of construction, protective coatings, cathodic protection, inhibitors, equipment design, and mining and milling practices."

Jan 1, 1971

By Farnham. G. S.

It is difficult co know how to deal with this subject before a group having such mixed interests. The mining man is not coo concerned with the problems of alloy research. The engineer is more interested in properties of materials than how these properties can be achieved. The business man feels that scientific history and prognostication are not for him, predicting trends or possible developments in the economic field being a more than sufficient occupation. Yet the application of physical metallurgy research to industry is of importance to miner, engineer, and business man, for only through such application can the continuing existence of industries manufacturing or consuming metals be assured. History shows that hard work does not guarantee industrial survival. For instance, the Bessemer method of steel making superseded puddling operations; it, in its turn, has been largely displaced by open-hearth processing; later, steels made in electric-arc furnaces displaced open-hearth products in the quality field; and now, very specialized steels are being made in high-frequency rather than in arc furnaces. It is apparent then, if industry is co remain healthy, complacency must give way co imaginative planning, based on a thorough knowledge of production technique, a knowledge supplied by efficient research.

Jan 1, 1947

By R. D. Corrans

"Abstract - Africa is endowed with a number of the world's giant ore deposits which have contributed significantly to the development of their host countries. Mineral exploration has a long history in the continent, but mining on an unprecedented scale took off during the latter part of the 19th century, accompanied by the development of lines of communication and other infrastructure to service the major mining centres .The ""Winds of Change"" which swept Africa in the 1950s and 1960s brought in new styles of government and economic management to a number of regions, often with demise of economic viability and infrastructure. ln recent years, with the end of the cold war, collapse of communism and changes in South Africa, new opportunities for mineral exploration are opening up rapidly in Africa. However, due to the large cost, long lead-in time, and high risk of developing new mineral ventures in the continent, it is necessary for the host countries to draft realistic and favorable mineral laws and fiscal codes in order to attract, and not deter, potential mineral investors.There will be an on-going role in mineral exploration throughout Africa for the artisanal miner, the smaller entrepreneurs and mining companies, exploration aid programs funded by the developed countries through African governments, as well as the major mining houses who have the resources to develop larger viable mineral deposits."

Jan 1, 1994

By Karl J. C. Harries

"7.1. INTRODUCTIONThis chapter addresses the joint venture and examines a number of general concepts of the joint venture relationship. Chapter 8 looks at some specific concepts related to the provisions of a joint venture agreement, which are equally applicable to a shareholders’ agreement or other contractual relationship. The term “joint venture” is used because the author is a common law solicitor (a matter of convenience for which apologies are offered to civil law readers), but it should be noted that, in many aspects, the legal structure of an entity is irrelevant. It is the relationship of the parties, be they venturers or shareholders, that is important, and the areas of concern are surprisingly similar (except for terminology).The details of the joint venture relationship and agreement could fill several books. Accordingly, this chapter and the next focus on selected topics that appear to have caused problems or confusion or to be the basis for disputes. And remember that, although the following discussion is in the context of a joint venture, many of the comments apply, either directly or indirectly, to virtually any common undertaking and the agreement defining it.For interest’s sake, this chapter starts with a summary of some of the earlier types of agreements and arrangements that have evolved into the joint venture agreement of today in Canada, the philosophy of their format, and the reasons for their demise.7.2. EVOLUTION OF THE CANADIAN JOINT VENTUREThe Early DaysMuch of the opening up of Canada’s north is due to exploration for and development of mines. The early discoverers were relatively free to roam and explore at will and, if they were fortunate enough to find something, they dealt with the appropriate government to acquire exploitation rights. The early interests lay in gold or silver. Workings were small, usually worked by the owner alone or with only a couple of helpers to extract the native gold or silver. If the owner wanted to move on, he could sell his property outright and use his stake to look elsewhere.As logging and mining camps were opened, the development of better roads and railways made access easier. Entrepreneurs saw the opportunity to make money by assembling large parcels of land and working them as a single operation. In order to do this, some owners who were not ready to sell out had to be convinced to do so through more attractive offers"

Jan 1, 2003

By J H. Dressel, J. E. Williams

This paper presents a brief review of what coal gasification is, procedures that are available today and processes that may be available in the future. Examples are given as to how the process might be used in power plant applications, the effect on pollution level and power costs, and some thoughts on the added burden that might be placed on mining and coal preparation.

Jan 1, 1973

By R. A. Nemchek

ABSTRACT Concentrator plant design has evolved from large numbers of small grinding mills to small numbers of large mills. Consequently, plant performance often hinges on the productivity of a single large semi-autogenous grinding mill. Industry attempts to address the grinding mills’ critical nature frequently result in specifications that can be made simpler, more economical, and better focused on the project’s goals. This paper surveys current specification writing practices and proposes an improved approach recognizing that product design, procurement, manufacturing, and quality are interrelated in a successful project. The lessons learned here can apply to all types of machinery specifications.

Jan 1, 2014

By A. Warczok

Metal losses in discard slag are the main factor determining overall recovery. The metals are present both in dissolved form and as matte or metallic inclusions, varying in size from 2 to 1000 µm. Pyrometallurgical slag cleaning usually consists of heating the slag, reduction of oxides and settling of matte/metal droplets. Heating the slag decreases viscosity and accelerates reactions. Reduction of magnetite liberates inclusions and facilitates co-reduction of dissolved metal oxides. A significant amount of the matte and metal is present as very fine metallic inclusions, too small for settling. The coalescence of these matte or metal inclusions is required to remove them from the slag. The developed new concept of slag cleaning combines DC furnace technology with an extra magnetic field for vigorous slag stirring, enhancing mass transfer to the reductant surface, accelerating the rate of reduction, and destabilizing the emulsion of matte or metal inclusions. Intensive slag stirring increases the probability of collision of inclusions, will accelerate their growth and will therefore improve settling. The process is carried out in a patented DC channel furnace, where the liquid metal or matte layer acts as a cathode and the floating coke bed on the slag surface is the anode. In the first part of the furnace, a superimposed magnetic field induces a Lorentz's force causing the slag to start an intensive circular motion. The next furnace zone does not experience any stirring and is dedicated for quiet sedimentation of the inclusions. A mathematical model of gravitational coalescence combined with forced slag motion showed the possibilities of effective removal of copper matte inclusions. The results of laboratory pilot scale tests of continuous slag cleaning showed fast slag reduction and confirmed the improved matte removal from the slag. Conceptual analysis shows the potential use of the technology in various other non-ferrous industries, like for example nickel plants. It is also possible to use this technique batch wise.

Jan 1, 2007

By Anton Gronningsater

AS we know, Sir Henry Bessemer introduced Bessemer converting in the steel industry about 1855. It was not until twenty years later that the principles were adopted by non-ferrous metallurgists. In 1880, Manés first produced blister copper from matte in a converter, a very important forward step in copper metallurgy. For thirty years, up to about 1910, bessemerizing of copper matte was carried out in the acid-lined converter. It is not necessary here to enumerate all the shortcomings of that operation, one of which was that it strictly limited the grade of matte that could be treated; a 35 per cent matte was low in those days. From the early days of copper converting, many and repeated attempts were made to use a basic converter lining, and the older metallurgists will remember the numerous reports and discussions in connection with such experiments. These make interesting reading. I quote from a book published in 1900: ?'The siliceous lining is as much a part of the process of copper converting as magnesia lining is in the basic bessemer treatment of phosphoric iron, and it is suicidal to attempt any other kind of lining, either water-jacketed or basic.' "Even if the silica could be introduced in this way (through the tuyeres), it would still produce another trouble in the converter. The small particles of silica, being cold, would combine very imperfectly with the iron oxide and produce granulated and pasty slags, which could not be skimmed or poured out of the vessel".

Jan 1, 1942

By Daniel Hodouin, Bruno Girard, Claude Bazin

"Mineral processing and smelting operations have the reputation of being complex processes. Process operators of these unit operations have acquired from experience and basic training a superficial understanding of the relationships between process output and manipulated variables. This understanding, which is a very valuable know-how for process control and optimization as well as for operator training, is however difficult to extract. This paper describes a time series based approach that can be used to extract this know-how, which can subsequently be used for operator training. The method is illustrated with an example taken from a smelting process.IntroductionThe emergence of Total Quality Management and Statistical Process Control philosophies in the North American industry (Brown, 1991 ), as well as the increasing popularity of the IS0- 900x standard accreditation, provide a strong incentive to review the training procedures for plant operators. The importance of employees training is acknowledged in two of the 14 points of Deming's road to quality (Deming, 1982) as well as by control engineering consultants (Hendricks et al., 1994). However guidelines for the operation of industrial processes are often transferred from an operator to another one with allowance for flexible interpretation of many operating rules. Such transfer is typical of complex industrial processes to which particulate processes of ore dressing and extractive metallurgy belong.Capturing the knowledge of experienced operators is often a difficult task. Cognition engineers are able to extract this knowledge and transfer it into rules that ultimately are implemented into expert systems. Cognition engineers are however not always available and plant supervisors may prefer to keep training as an internal liability. Another difficulty through interviewing of the process operator is its lack of willingness to transfer what he has learned by hard working to other people, whose ultimate goals are to develop computerized applications that may replace him in a near future, or reduce its importance in the production line.This paper shows that time series can be advantageously used to capture the average process understanding of plant operators and to help reviewing training procedures. The method s illustrated with data collected during normal operation of electric arc furnaces and it is shown how the approach has led to a fruitful discussion between process engineers and operators that ultimately provided savings of more that $200,000 per year per furnace. There are 9 furnaces in the studied foundry. Such savings are not the results of application of advanced control strategies nor of ""miracle press button software», but of an improve awareness by engineers and operators of the importance of properly defining the operating procedures to control a process."

Jan 1, 1996

By George Rice

Foreword Following the explosion in the Hillcrest mine, which occurred in the evening of Sunday, September 19th, 1926, and in which two men lost their lives, the writer was invited by the Hon. J.E. Brownlee, Premier of Alberta, to conduct an investigation into the causes of the disaster, and to make such recommendations as seemed advisable with a view to minimizing as far as possible the chance of future explosions in this and similar Alberta coal mines. Accordingly, the mine was visited, and extensive investigations were made underground on October 21st, 2.2.nd, and 25th, in company with Mr. John T. Stirling, Chief Inspector of Mines for Alberta, Mr. Moses Johnson, District Inspector for the Crowsnest Pass District, Mr. J as. A. Richards, Inspector of Mines, Edmonton, and also Mr. Thomas Davies, manager, and other officials of the Hillcrest mine. Hearings of the coroner's inquest were also attended on October 20th and 23rd, when testimony regarding the explosion was given by various witnesses. The following paper summarizes my general observations in tracing the place of origin of the explosion, and my efforts to determine the cause of ignition. Certain recommendations arc also made, and the writer invites discussion on these and the other matters dealt with in the paper.

Jan 1, 1928