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By Robert T. DeGavre

I have been asked by the Society of Mining Engineers to present a paper on Inco Limited's Indonesian nickel project as a case study in the financing of large overseas mining projects. I welcome this opportunity It is a story worth telling not only because the project itself represents a significant human achievement but also because there are certain important lessons that can be derived from our experience in financing the project. The paper will be divided into four sections: (i) a brief history of the project, (ii) a critical appraisal of the project's financing plan in terms of the goals that we sought to achieve, (iii) some comments on certain factors underlying the relative success of the financing plan, and (iv) the contributions that the engineering staffs must make to a successful financing plan. The paper will not present a technical assessment of the project since Inco Limited has been asked to submit a series of papers on this subject at the International Laterite Symposium as part of the 108th Annual Meeting of the AIME in February 1979.

Jan 1, 1978

By A. R. Bell

Rio Algom Limited are currently undergoing a major expansion of their mining operations in the Elliot Lake area. To date this has involved the increase of output at the Quirke Mine from 4080 to 6350 tonnes per mill day (4500 to 7000 tons), the rehabilitation of the Panel Mine to produce at the rate of 2990 tonnes per mill day (3300 tons) by 1980, and the rehabilitation of the Stanleigh Mine to produce 4540 tonnes per mill day (5000 tons) by 1984. In addition, the planning for the rehabilitation of the Milliken Mine to produce 4990 tonnes per mill day (5500 tons) is now underway. This major expansion is taking place at a time of increasing awareness of occupational health matters and has involved very high capital expenditures and detailed planning related to the ventilation system to endeavour the provision of an acceptable environment. The paper discusses the ventilation systems, established and proposed, and relates them to historical and current data on mine air contaminants.

Jan 1, 1980

Stillwater Mining Company has an extensive history with tunnel boring machines (TBM) at the Stillwater and East Boulder underground PGM mines in Montana. The first use of a TBM was a 4 m (13 ft) diameter main beam unit at the Stillwater mine starting in 1988, where 6.4 km (4 mi) of tunnels were driven parallel to the J-M Reef orebody on four different levels. TBM?s were central to the development of the East Boulder Mine as two 4.6 m (15 ft) TBM?s drove two 5,639 m (18,500 ft) parallel tunnels to access the J-M Reef; one of these units is still in service driving a 2,591 m (8,500 ft) access West of the East Boulder mine for the Graham Creek project. For the Blitz Project, a 5.5 m (18 ft) diameter main beam unit will be utilized to drive a 6,858 m (22,500 ft) ventilation and rail haulage level East of the Stillwater mine. TBM?s have been preferred method for developing new mines and sections of the J-M reef as the geometry and geology of the Stillwater Complex allow for faster development compared to conventional methods.

Jan 1, 2012

Recent expansion programs have made the Yunkang underground coal mine the number one producer in Shenxi Province. The mine is the newest in the Datong Coal Administration, currently rated at around 3 Mt/a of coal. Located in the Wa Chushi mountain range about 23 km north of the city of Datong, the mine has undergone a series of expansion phases since startup in 1973. Initial design capacity was 1.5 Mt/a and ultimately, production will be brought to an estimated 7.0 Mt/a by 1985, according to mine superintendent Li Jia-zhi. How Coal Occurs The coal, Jurassic in age, occurs in three economically identifiable seams designated No. 2, 3, and 7. Seams are 100-250 m below the surface. Reserves from this economic zone were not quantified, but Superintendent Li indicated that there was enough mapped out to sustain the expanded production rate for over 20 years. Below the Jurassic coal is another possible economic zone, a Permocarboniferous coal lying 400-600 m below the surface. Little development drilling has been conducted to ascertain its potential. The Jurassic beds are relatively flat and coal quality is reportedly one of the best in China. Heat content of the coal runs around 33.5 MJ/kg and the ash content is less than 10%. In some areas, it is less than 7%. Coal preparation is simple and involves a washing and screening separation into four principal size fractions. Washed coal is stored in one of six storage silos, each with 4000-t capacity. Mining the No. 2 Seam Since startup, primary production has been derived from the No. 2 seam. The coal is relatively hard and is topped by a hard cement-like conglomerate. These factors, coupled with an average thickness between 4 to 6 m, precluded the use of conventional longwall techniques, according to mine engineers. The solution was development of a room-and-pillar tech-

Jan 3, 1980

By Robert C. Maxton

The foundry industry is a basic source of structural component for all industry. Millions of tons of castings are produced annually in both ferrous and nonferrous alloys. These castings are subjected to a wide variety of heat treatments, finishing techniques, mechanical tests and machining operations. Through all of these steps the quality of the casting is of paramount importance to the end use of the product. The Quality Assurance Program at Minneapolis Electric Steel Castings Company is designed and established to provide a superior product for both original equipment manufacturers and the mining industry.

Jan 1, 1982

The process design of a metallurgical plant follows logical steps, one built on another, to define the circuit requirements. The methodology used and documentation produced is the same for a pre-feasibility study, feasibility study or a complete design, regardless of the process complexity or the commodity. The only difference is the amount of detail developed at each stage. SRK Consulting, an independent, international consulting practice that provides focused advice and solutions to clients, mainly from earth and water resource industries, has consulted on many mining projects around the world. The company was formed in 1974 and now employs more than 1,600 professionals in more than 50 offices on six continents. According to SRK experts, the first element in plant design is collecting metallurgical testwork or operating data from an existing plant. The testwork identifies the process, the metallurgical recoveries and product qualities and establishes the process parameters for economic recovery of the commodity. Test samples must represent both the whole orebody and the feed over the life of the mine, showing the mineral?s variability. With this data available, the process design can be developed.

May 1, 2013

By W. D. Blackburn

If there is a single key to managing a mineral extraction company, it is the control of productivity. American labor costs, in general, tend to be in the range of 10%-15% of total costs. American coal mining labor costs, however, exhibit ranges of 30%-60% of total costs. Is it any wonder that the industry finds itself at a competitive disadvantage? When labor costs take as much as sixty cents of every dollar of revenue, there is little room for profitability. The American coal mining industry must set as a long range goal the reduction of labor costs to the 10%-15% range of total costs in order to be competitive.

Jan 1, 1986

By Michael H. Vallez

On September 13, 1973 MAPCO Inc. leased from Pocahontas Land Corporation an 18,000 acre tract of coal lands in Eastern Kentucky's Martin County (See Figure 1.). In July, 1974 initial run of mine coal shipments commenced and in April, 1976 shipments of a 12,500 BTU, less than 1% sulphur, washed coal was being shipped. Results of exploration demonstrated that large quantities of overburden would have to be moved. MAPCO decided to invest in large surface mining equipment to tackle the job.

Jan 1, 1981

By James D. Bliss

Sedimentary deposits of pluvial Lake Bonneville are an important source of sand and gravel suitable for aggregate and construction in Utah. Data on Lake Bonneville basin sand and gravel deposit thickness, volume, grain size, percent of fines, and durability were statistically analyzed to detect variations associated with geologic domains, geographic location, Lake Bonneville shorelines, and sand and gravel deposit type, and to construct quantitative deposit models. Analysis showed several trends; (1) sand and gravel in younger shorelines was slightly more durable and the deposits considerably larger in volume, (2) younger shore- lines are also more likely to contain more than one genetic deposit type, (3) the volume of terrace deposits is larger than beach deposits, (4) terraces and beaches are generally thicker than spits and bars, (5) the northern part of the Bonneville Basin contains slightly more durable sand and gravel than the southern part of the basin and is more likely to contain deposits composed of more than one genetic deposit type, aid (6) the Wasatch domain deposits are composed of more than one genetic deposit type more often than deposits of the Basin and Range domain. Three additional conclusions with immediate economic significance are; (1) the median sand and gravel deposit in the Wasatch domain, 360,000 m3 (275,000 yd3), is three times larger than that of the Basin and Range domain (120,000 m3 [90,000 yd3]), (2) the median deposit thickness in the Wasatch domain, 5.8 m (19.0 ft), is nearly twice that of the Basin and Range domain (3 m [lo ft]), and (3) the Wasatch domain also contains slightly larger diameter gravel. These three conclusions are significant because the trend for sand and gravel development in the Bonneville Basin is to move from the Wasatch domain to the Basin and Range domain. Smaller, thinner deposits with smaller diameter gravel will require more surface area to mine than would have been necessary in the Wasatch domain. The result is a higher cost for sand and gravel in construction projects in the Salt Lake City area, especially since the gravel must also be hauled farther.

Jan 1, 2001

By W. J. Schlitt, K. McNaughton

A heap-leach field test was conducted during the 1993-1994 winter season at Carmacks, Yukon Territory, Canada. The purpose of the test was to demonstrate the viability of heap leaching Carmacks oxide copper ore in an arctic setting on a year-round basis. The test itself utilized a 5-m-diam crib loaded with 250 t of composite ore from the Carmacks copper deposit. The ore was stacked to a total height of 7 m in the crib, including 1 m of ore as an over- layer above the emitter system. This matched the plan for the commercial heap at the time when the test was started. The design also replicated an interior segment of the commercial heap. Leaching was done at a flow rate of 0.2 L/min/m2 using leachate at 21 °C. This temperature was maintained with no external heat input other than normal process heat transferred from electrowinning to the leachate via solvent extraction. Winter conditions were quite typical of those expected at the mine site. The temperature reached -54°C, while averaging -13°C over a three-month period. In spite of some flow system problems, leaching continued unabated, and freezing was limited to the insulating ore over-layer and isolated points near the outer crib walls. Thus, the test demonstrated that year-round heap leaching of Carmacks copper ore is practical in an arctic setting.

Jan 1, 2000

By J. F. Barry

Newmont Mining Corporation and Barrick Goldstrike Mines, Inc. concluded an exchange of land and reserves in an agreement signed May 3, 1999.This exchange of assets allowed Newmont to develop the Deep Post underground mine from within Barrick’s Betze-Post open pit, thus reducing capital expenditures, lowering operating costs, and advancing the production schedule by nearly three years. Based on previous experience, Newmont is confident that the Deep Post underground mine can be successfully developed and operated within a large, active, open pit mine. The project also faces difficult geotechnical conditions including weak ground, scattered pockets of groundwater, and elevated rock temperatures.

Jan 1, 2000

By Xie Longshui

INTRODUCTION The gold production is from the state-owned gold mines, the local gold mines and the by-product of metal mines. Since 1975, the small gold mines have developed in rapid strides. Currently, there are about 3000 small gold mines in China. Most of them are operated by the local, and the production is about 50% of China's gold output. In the small gold mines, the normalized mining equipments are employed at most of mines, but some mines still use such backward tunnelling and mining tools as pick, shovel and hand hammer etc.. The mining techniques have developed from the primitive to the advanced, especially the methods of open stope, shrinkage and filling have been widely used. Such new mining techniques as bolting, vibrating draw, non-electric ignition and diamond drilling etc. are also introduced in the wall gold mines. In recent years, the development of small gold mines is very fast under the guidance of new mining policy which is ' rapid and great development of large-sized mines, helping small mines to develop, and quick mining for the existing mines; and encouraging the collective and the individual to operate a mine.' GEOLOGICAL FEATURES The gold veins are dominant, which are divided into two types, ie. the mesothermal deposit with altered rock in a crushed zone and the hypothermal deposit with quartz veins. The orebody distribution is not centralized, and the size of deposit and single minable orebody is small respectively. Most of deposit dip at 30° to 50°, characterized by expansion and shrinkage, ramification and compound, thinning out and reappearance, separation and composite at the parallel veins etc.. The ore grade is variable, and the factor of grade change is above 100%. The waste zones with lean or submarginal ore usually exist in deposits. As for the gold deposits with altered rock, the ore boundary is indistinct. Most of gold deposits, particularly the gold deposits with altered rock, are intruded by the late structural rock, thus the faults and joints are developed, and the rock and ore are crushed, especially the host rock of roof wall is very crushed. It ie obvious that the conditions of both formation of deposit and mining are considerably complicated. HISTORY With a long mining history and rich experiences, the local gold sectors are small, but they play an important role in China's gold mining industry. Dated from Xia and Shang Dynasty, the gold goods was made. In the Tang Dynasty, the development of gold mining industry was very fast. A Chinese poem , written by Liu Yuxi -- one of famous poets in the Tang Dynasty, says: As sun is shining over Dengzhou land, The fog on river slowly goes away, The panning girls together meet at bay, The beauty's jewels and stamps of king are gold from river sand. This poem shows the local gold mining was flourishing at that time. In 1888, the local gold mining sectors were all the rage at the moment, and the annual output of gold was as high as 21.5 tons. Since the founding of New China, the development of local gold mining was subjected to several back- sets, but certain advances are made on the whole, especially since 1970. Round about 1970,the simple, backward and indigenous mining was dominant in the small gold mines; for instance, the hand-hammer drilling, the hand-operated winch hoisting and the hand haulage etc.were main methods of gold mining . Up until the late 1970s,great changes took place in stoping, haulage and so on. Currently, some advanced technology and large-sized equipments are adopted in the local gold mines. Generally, the local small gold mining sectors play an important role in development of China's gold mining industry, and are important and attractive sectors. PRESENT DEVELOPMENT

Jan 1, 1987

By Roger Malmström, H. Heden, Kjell Lidin

INTRODUCTION LKAB was formed at the turn of the century when the railways between the ore fields and harbors were built. The mines are situated north of the Arctic Circle in Sweden. Kiirunavaara is the largest mine, with a pro¬duction capacity of approximately 30 Mt/a. Malm¬berget has a capacity of about 12 Mt/ a. Both are under¬ground mines. Svappavaara, the only opencast mine currently in operation, has a capacity of about 4.5 Mt/a. The ore harbors are at Narvik for the Kiruna and Svappavaara mines and at Lulea for the Malmberget mine (see Fig. 1). Production in the form of finished products is shown in Fig. 2a, b, c, and d. Due to poor ore markets in re¬cent years, production and shipments have been cut back, but there was a positive swing in 1978. LKAB has been 96% state-owned since 1957. In addition to the iron mines in northern Sweden, LKAB has subsidiaries in central Sweden which produce sulfide ores, quartz sand, and uranium (Fig. 3). The mining methods employed are opencast bench stoping at Svappavaara and sublevel caving at Kiirunavaara and Malmberget. GEOLOGY The Kiirunavaara ore body is 4000 m long and av¬erages about 90 m wide, with variations in width from a few meters to around 150 m. The ore has been ex¬plored by deep drilling down to about 1000 m, but mag¬netic measurements indicate a depth of at least 1500 m. The Kiirunavaara ore is oriented in a north-northeasterly direction with a number of ores in the boundaries be¬tween the wall rock types. The ore in Kiirunavaara is mainly a fine-grained magnetite with a varying content of fine-grained apatite. The apatite content of the ore decreases with increasing depth. The other ores are all apatite-bearing and a couple are hematite ores (Fig. 4a, b). The ores are sedimentary, tilted, and tectonically de¬formed. They have a lateral dip of 0.87 to 1.2 rad (50 to 70°). The contacts between ore and wall rock are distinct and sharp, but both the hanging wall and the footwall are brecciated and impregnated with magnetite. The footwall of the Kiirunavaara ore consists of syenite porphyry with a low quartz content and rela¬tively good strength; the hanging wall consists of quartz porphyry. Both types are known as Kiruna porphyries. The ore at the boundary with the hanging wall is often rich in kaolin. There are a few veins of syenite porphyry running through the ore, which has a few major faults (Fig. 4c, d). There are two sharply delineated ore grades in Kiirunavaara: low phosphorus ore with less than 0.1 % phosphorus (about one-third of the ore) and high phos¬phorus ore with greater than 0.5% phosphorus. The iron content is 67% in the low phosphorus ore and 60% in the high phosphorus ore. These ore types are sold as different grades and so are kept separate during mining. MINING AT KIIRUNAVAARA The Kiirunavaara and Luossavaara ores were first mined using opencast bench stoping in 1902. When mining costs rose owing to higher waste removal, under¬ground methods were adopted. In the mid-1950s, the ores were still being mined on the surface at the same

Jan 1, 1982

By G. M. Clarke

Minerals are certainly where they are found. The undemocratic distribution of the world's mineral wealth has created an incongruous inbalance: mineral-rich, scarcely populated countries supply highly-populated industrialised countries that in turn consume more minerals than they produce. This has been as much a generating force for colonisation, invasion, and war as religion, political ideals, or megalomania. The Industrial Revolution of the seventeenth century was born in Britain, a country with large domestic resources of coal, iron, lead, zinc, copper, tin, etc., as well as a large population. As consumption outstripped production imports filled the gap, particularly from its worldwide colonies. For example, when Canada was founded in 1867 more than 905 of its investments were British financed, and much of these were mineral-based. The British made similar investments in South East Asia, Australasia, the Caribbean, and elsewhere, as did the other industrialised Western European countries hungry for raw materials. Later the United States emerged as a leading industrial power, again due largely to its abundant natural resources. Consumption soon exceeded production and foreign sources were saught. American business went exploring abroad ant many a mineral resource was developed almost totally on the basis of the US market many .thousands of miles away. Closer to home, Canada was also an obvious target for the US with its rich mineral resource base, small population, and geographical juxtaposition, so much so that about the time of the 1914-18 War the US took over from Britain as the major investor in Canada, and this peaked in 1967 when the US accounted for 80% of the country's foreign investment. After the 1939-45 War Japan joined the ranks of the USA and Western Europe as industrialised powers, and they too searched the world for the deposits lacking in their homeland.

Jan 1, 1981

By James A. Clem

Approximately 2,000 years ago, the Lord Admonished the Scribes (Lawyers) and Pharisees (Religious leaders of that time) that they had paid the tithe but had omitted the weightier matters of law, Judgement, Mercy, and Faith. (Matt. 23:23). I want to talk about "The Weightier Matters of Law." In a situation where big government is trying to have an effect on even small details of a work activity, otherwise simple situations become complex. Regulations are written to such detail that constant compliance with strict interpretations can be a nightmare--not to mention off the target of the intended purpose for the regulation. One soon re- cognizes the oneros characteristics of Federal statues

Jan 1, 1979

By C. J. Webb

Abandoned uranium mines in the southern Black Hills of South Dakota were sampled for uranium, radium, and rare earth elements during 1992 and 1993. Analyses of water samples from several shallow ponds in the mine pits showed pH values between 3 and 4 with uranium concentrations between 1600 and 2600 ppb. Rare earth elements and their respective isotopes were analyzed with an inductively coupled plasma mass spectrometer and were referenced to a shale normalization pattern. All samples showed an enrichment in the middle rare earth elements. Rare earth levels often were greater than 0.2 ppm. At one site, the concentrations of lanthanides were 150,000 times above background levels. While the southern Black Hills have long been known for rich uranium ore deposits, these analyses show that significant levels of rare earth elements also are present, indicating that the potential exist for future development.

Jan 1, 1995

By M. P. A. Hames, D. R. Beaumont

INTRODUCTION Legend has it that when Isembard Kingdom Brunel was confronted with the cost and consequences of one of his bridges having failed, he responded cheerfully that the event had saved investors and taxpayers a fortune because it prevented him from repeating the same design at several other locations. To meet the demands of rejuvenating and expanding the transportation system in an era of industrial growth Brunel and his contemporaries introduced bold designs and many innovations. Great advances in design and construction techniques resulted, yet these too had their practical limits as the story tells. In the gold mining industry today we face the same challenge of expansion, yet designers must respond mindful of economic restraints. Is innovation the answer? It has two meanings; to bring in novelties and to make changes. Distinguishing between improvement and novelties, or simply recognizing the benefits and limitations of new ideas over proven technology is part of good design. This paper will illustrate the practical aspects of selecting appropriate solutions to a design problem by examining a variety of examples common throughout the industry. Since a variety of engineering disciplines contribute to the design of a gold processing plant, and each has some old wisdom to impart or new development to boast this paper is divided into the different areas of expertise involved.

Jan 1, 1987

By Mitchell Gordon

Two mineral processing facilities in North America required near terminal density slurries to perform de-bottle necking in their circuits. The installation at Barrick Goldstrike to ensure efficient oxidation conditions and throughputs in the refractory ore treating autoclaves. The Kidd Metallurgical Division unit to provide a steeper tailings slope to extend the life of the existing tailings dam. To achieve these goals, both operations selected a Supaflo "High Compression" Thickener following on site pilot plant evaluation. Commissioning and the first year of operation is reviewed. Operating data is compared with the pilot plant data. In particular, unusual doughnut formation at Goldstrike and the effect of temperature on the terminal density at Kidd Metallurgical Division are discussed.

Jan 1, 1997

Mill #4 processes mildly refractory ore from Carlin Trend deposits. Diagnostic analysis of plant operating data was used to generate a mathematical model containing the important parameters influencing gold recovery. The model was used to direct modifications to plant operating practice. The cyanide-dosing strategy was changed to reduce gold losses from preg-robbing and to cut reagent consumption. A finer grind was achieved without capital investment. The density in the carbon-in-leach circuit was lowered, and tighter control was exercised over the plant throughput. These changes resulted in a recovery increase of at least 2%, worth $111,000/month at $300/oz ($9.64/g) gold, and concomitant reagent cost savings of $55,000/ month.

Jan 1, 2000

The engineering company's participation in quality assurance in the mining industry is twofold. Not only must it have such a program to ensure the necessary high standards for its own design and construction of a minerals processing plant, but it is also responsible as the "engineer" for both the selection and the quality of purchased equipment which goes into that plant. It is in this latter role that the engineer finds the most difficulty, or controversy, since while it is relatively easy to control his own performance, this is not ncessarily so when dealing with companies, all with their own ideas or standards. The engineer has perhaps rather reluctantly become more involved with the quality assurance of purchased equipment. This is because he has been used to writing performance type specifications and expecting the equipment manufacturer to provide the degree of quality, and control of that quality, for the product to meet the specified operating conditions. However, this has sometimes placed the manufacturer in a difficult position since to remain competitive in today's market conditions, he cannot always insist on product improvements or options which may in the long run be vital to reliable operation of the equipment.

Jan 1, 1982