Search Documents

By Gerald L. Colborne

The major role of financial institutions in the free world in the development of mineral resources is to provide the necessary capital in the form of loans to underwrite the development of these resources by the industry on a stable and continuous basis. This capital provided by the depositors to the bank must be invested in sound projects where the degree of risk is relatively small, the return on the investment is reasonable and the time to retire the loan is of short duration. Money is, therefore, one of the important ingredients along with technology, manpower and an exploitable resource that will provide a sound economic base in this region of development. Canadian banks are similar to banks of other western nations, although each country has some differences in their banking systems. The basic difference between the American and Canadian systems is that the former employs unit banking while the Canadian utilizes the more mobile branch system, which is prohibited or restricted in the United States and some other countries. Canadian banks are the subject of this paper, so, subsequent material will relate to Canadian banks unless indicated otherwise. It will be realized by everyone that the mineral industry is only one area of the economy in which the banks are interested and to cover the subject matter in the time allowed, the topic is restricted to mineral resource development. In Canada this is a vital sector of our economy and before we outline some of the details of financing and services involved in various aspects of mineral development, a review of the Canadian mineral industry is a necessary part of the sequence of presentation. The writer presents this material as a resource engineer advising a major bank in mineral matters, so the presentation may relate more to the financial problems of the developer

Jan 1, 1972

By James W. Furlow

A recent attempt by a major mining company to mine phosphate in Chatham County, Georgia, resulted in a study by the Georgia Department of Mines, Mining and Geology which was intended to evaluate the deposit as well as potential hazards to the major fresh-water aquifer of the area. The study found that the confining layer above the fresh-water artesian aquifer is sufficiently thick and impermeable to allow removal of the phosphate ore zone without significant salt water infiltration into the aquifer. Therefore, phosphate mining under proper supervision will not adversely affect the quality of water used by the city of Savannah nearby. Volumetric studies show that there is a minimum of 4,800,000,000 cubic yards of phosphate matrix containing an average of 22.5% BPL. At an approximate weight of 1.5 tons per cubic yard and a concentration of 22.5% BPL, there are about 1.6 billion tons of 100% BPL concentrate present. At a conservative factor of 50% at least 800,000,000 tons of 100% BPL concentrate could be recovered for market sale. In addition to the area discussed, evidence indicates that the phosphate horizon-may extend continuously out to sea for at least ten miles, and probably beyond.

Jan 1, 1972

By G. R. Green

The centre of the mining operations of the International Nickel Company, Ontario Division is Sudbury, a city of 160,000 population located 240 miles northwest of Toronto (Fig. 1). Within thirty miles of this city and located around the rim of the geological formation known as the Sudbury Basin are the ten underground mines and one open pit operated by the Company (Fig. 2). There are also four developing mines, three in the Sudbury area and one at Shebandowan, near the city of Thunder Bay, Ontario and approximately 150 miles north east of Duluth, Minnesota. In 1971 the mines produced 22,800,000 tons, 20,600,000 tons from underground and the balance from open pits. Also located in the Sudbury District are facilities to extract and refine the metals contained in the ore. There is a nickel refinery located at Port Colborne on Lake Erie. An additional nickel refinery is under construction near Sudbury. Fifteen elements are recovered from the Sudbury ores, nickel, copper, iron, sulphur, gold, silver, cobalt, tellurium and the six platinum group metals, platinum, palladium, iridium, rhodium, ruthenium and osmium. In 1966 a major expansion program was undertaken to meet increasing market requirements. Coinciding as it did with a severe

Jan 1, 1972

By John E. Good

A new coal boom is under way in western Canada. As recently as the mid-1960's, the coal industry in western Canada was considered stagnant and, by some people, dying. But Japan's growing need for coking coal, which became more pronounced in 1966, sparked great interest in western Canadian reserves.' As a result of a rapidly expanding export market and growth in domestic demand, Canadian coal production spurted to 16.6 million tons in 1970. Production in 1965 was 11.5 million tons. Today, about 60 percent of Canada's output comes from western Canada, but by 1975, 87 percent (23.1 million tons) is expected to come from this area, and 96 percent (68.3 million tons) by 1990. Opening, developing and operating new coal mines to meet the needs of a rapidly expanding market for western Canadian metallurgical coals pose some unique and difficult problems. Covering nearly every aspect of opening properties in remote areas, the problems are met in exploration, transportation, construction, mine operations, coal preparation, manpower and ecology. Paul Weir Company has been involved as coal consultants on various projects in western Canada for some years. In presenting this paper, we make no attempt to present an in-depth or detailed analysis of any one specific situation. Each has, or would have, its own peculiarities or characteristics, both physical and economic. Instead, the objective is to provide for those not intimately

Jan 1, 1972

By George E. Aiken

Agglomeration developments in the iron ore industry of North America are closely related to shifting patterns in commercially acceptable ore grades and even the definition of iron ores. These relationships have occurred mainly during the last 20 years. Many of these changes are an outgrowth of events which involved the history of the Mesabi Range. Although magnetic taconites had been discovered in the Lake Superior area about 1870, they remained unworked in part for lack of concentration methods and a generally unfavorable economic climate. Some 20 years later the rich Mesabi hematites were found beginning the era of direct shipping ores which continued through World War II. These Lake Superior iron ores included reserves of an estimated three billion tons. Following World War II, decreasing ore grades and rising costs began to force the closing of many underground iron mines. The early 501 s saw the beginning of the decline in direct shipping ores and a spurt in production of natural iron concentrate s. However, the market for unprocessed concentrates began to decline in the early 601 s as agglomerated products and foreign ores began to dominate the U. S. market.

Jan 1, 1972

By Stanley M. Jarrett

Gentlemen, I am pleased to address this gathering of engineers and operation managers representing a large and important segment of the metal and nonmetallic mining industry. Since you know from the printed program that the theme of my paper is the furthering of safety in open pit mines, perhaps you will have guessed that I will also comment upon the image created in the public mind by the industry's safety record and the potential consequences thereof in national health and safety legislation. Operators of surface mines have some cause to congratulate themselves on the basis of figures issued by the national safety council which show that lost-time accidents per-million-man-hours in surface mining (11.18), is lower than that of all other mining. Moreover, the accident frequency in surface mining is only slightly above the median accident rate for all American industry (8.87). That is a good record.

Jan 1, 1972

By William J. Robinson

What is the cummulative rate of recovery of copper from a sulfide leach dump? This is one of the most frequently asked questions today. We, in the industry, ask it of each other when we meet; however, the technical answers may vary from "I don't know" to 'quite good" from people within the same company. Management also poses this question because it plays a vital role in our planning for future production. The answer is difficult because of the many variables between different operations such as physical construction of the dump, topography of the original site, characteristics of dump material, mineralization, water application, etc. Each has a bearing on the rate of recovery. OPERATIONAL DATA Our method of water distribution is unique in that each dump is drilled to allow physical injection of water into the dump. The in¬jection holes are drilled vertically, on 251 centers, from the surface of the dump. Normally, the holes are drilled 40' deep and cased with 4" PVC perforated pipe.. The pipe is perforated at one-foot intervals with four V diameter holes at 901 spacing on the pipe circumference. We formerly alternated shallow holes (20'-40') with deep holes (80'-l80') in an effort to cover the entire dump and hasten oxidation. The shallow hole depth varied according to the compaction thickness. The deep hole depth varied according to the height of the dump and the original ground profile, We prefer to have the deep holes end 20'-30' above the original ground level. This generally allows us to penetrate the coarse material at the bottom of the dump. We had to discontinue the deep holes_ in order to cover more dump area in a shorter period of time to meet increased production requirements.

Jan 1, 1972

By Robert W. Bartlett

Both hydrometallurgical and vapometallurgical processes often involve ores that have been previously ground and size classified. When the valuable mineral is substantially liberated, the chemical reaction is likely to occur on the particle surface and the particle core will shrink as the reaction proceeds. If the chemical reaction products are solid materials then a solid shell, usually porous, will form around the shrinking core. This is known as the core/shell or topochemical reaction model. Using a spherical approximation for the particles, equations have been developed to express the extent of chemical conversion of the particle, depending on which one of the following process or mass transport steps is rate controlling:1 (1) chemical reaction at the particle surface, (2) diffusion through the thickening reaction product shell or (3) mass transport through a boundary layer surrounding the particle. In a previous paper2 these equations were coupled with the Gates -Gaudin-Schuhmann equation 3 4 describing the distribution of particle sizes resulting from comminution of rocks and other brittle solids to develop reaction yield curves expressing the weight fraction of metal or other valuable component of the feed that was chemically converted as a function of residence time. This was done for (a) batch, (b) continuous plug flow and (c) continuous back-mix flow (continuous stirred tank) reactors or process vessels. To make the curves of general rather than special utility, the residence time (average residence time for back-mix reactors) was normalized to a dimensionless time by dividing by the time required to completely chemically convert the largest particle in the feed to reac-

Jan 1, 1972

By Bruce Congleton

One year ago this month, we in Central Florida witnessed the beginning of a most exciting and glamorous attraction. After three years of construction and anticipation, Walt Disney World opened its gates near Orlando and during its first year of operation received a flood of over 10 million visitors---half of all who came to Florida last year! The side effects of this newest addition to Florida have been phenomenal. Traffic on heavy days has been backed up for 30 miles from the amusement park along a major interstate highway. Hotels and motels have been jammed packed for months, and reservations are still difficult to make. Gasoline stations, restaurants and souvenir shops are doing a booming business. Everywhere you look as you ride the highways of Central Florida you see the signs of growth. New hotels spring up almost overnight. Golf courses galore. New housing projects and apartments sprawl where orange groves used to be. New roads criss-cross areas which were once deserted. There seems to be no end to the steady influx of tourists and new residents to the Sunshine State. And it's mainly because that we are the Sunshine State that they come. Air and water pollution is and has been at a minimum in Florida. Pollution and emissions are fighting words among some groups dedicated to preserving the bountiful environment we share in Florida. Little wonder then that some of these people display concern when they learn that just 50 miles from the entrance to the Magic Kingdom of Disney, phosphate draglines strip away thousands of acres of land each year to extract one of our nation's most precious

Jan 1, 1972

By Borje Bjorkvall

At LKAB's plants in Lappland, Sweden, sintered pellets are manu-factured according to three different industrial processes, viz. shaft furnace at Malmberget, straight-grate at Kiruna and grate-kiln at Svappavaara. At present the total annual capacity amounts to 4.7 million tons. However, since it has been decided to erect a new straight-grate plant (2.5 million tons) at Malmberget, and because of the decision to extend and rebuild the existing plants, it is estimated that the annual capacity will be increased to somewhat over 8 million tons by 1973. The great majority of the pellets produced is exported. They are thus reloaded several times and generally speaking roughly handled, resulting in larger or smaller product losses on arrival at the point of use. It is there-fore of great economical interest to have a good control over the transport strength of the pellets by appropriate quality testing at the point of production. In addition to good transport strength, further demands are ob-viously made on pellets destined for blast furnace operation. The blast furnace burden must maintain a good permeability for the gas. The pellets must thus have a favourable size distribution and must not be so weakened by reduction that they disintegrate under the stresses and clog the blast furnace shaft. Furthermore, the burden must have good reducibility. An increase of the rate of reduction can obviously mean increased blast furnace capacity and reduced coke consumption. In order to optimise the properties of the pellets in these respects, the producer must also be thoroughly familiar with their behaviour during reduction, particularly as the customer's interest in the reduction properties of the pellets' has increased over the last few years. Up to now the only quality demands the customer has made have generally had to do with the cold strength and the screen analysis. Thus a quality control of in addition to good transport strength, further demands are obviously made on pellets destined for blast furnace operation. The blast furnace burden must maintain a good permeability for the gas. The pellets must thus have a favourable size distribution and must not be so weakened by reduction that they disintegrate under the stresses and clog the blast furnace shaft. Furthermore, the burden must have good reducibility. An increase of the rate of reduction can obviously mean increased blast furnace capacity and reduced coke consumption. In order to optimise the properties of the pellets in these respects, the producer must also be thoroughly familiar with their behaviour during reduction, particularly as the customer's interest in the reduction properties of the pellets' has increased over the last few years. Up to now the only quality demands the customer has made have generally had to do with the cold strength and the screen analysis. Thus a quality control of

Jan 1, 1972

By H. A. Kortmann

For the commercial production of iron ore pellets from hematite ores, as it is practiced in various pellet plants, the addition of lime has shown to be an efficient means with a view to improving cold compression and abrasive strength of the indurated pellets considerably. Unfortunately, it has also been shown at the same time, that the metallurgical properties as, for instance, swelling behavior, softening during reduction under load and disintegration of the grain, can be adversely affected to a high degree. In the course of smelting tests carried out by renowned steelworks, blast furnace operation was heavily disturbed by the swelling and early softening of the pellets, also by their disintegration in the low-temperature range, which altogether led to a considerable lowering of the smelting rate (1, 2, 3).

Jan 1, 1972

By D. W. Gillmore

Numerous orphaned strip mines and old refuse piles scar the landscape, contributing to stream pollution and degradation of the natural environment. Field experiments to reclaim acidic surface-mined spoil and refuse banks with fly ash from bituminous coal-fired powerplants were conducted at several sites in West Virginia. Fly ash served as a neutralizing agent and soil amendment, permitting vegetation of waste lands and disposal of large quantities of ash. Reclamation of land by this method is estimated to cost about $300 per acre of leveled site, depending upon the topography of the land and quality and availability of the fly ash.

Jan 1, 1972

By S. S. Sephton

The La Perla Mine, owned by Altos Hornos de Mexico, S.A., is located approximately 100 miles east of the City of Chihuahua in the State of Chihuahua, Mexico. The mine began operations in 1958. Existing ore beneficiating facilities, consisting of heavy media and jig plants, upgrade the ore prior to shipment by rail to the Altos Hornos steelmaking complex in Monclova. Sizable reserves of two distinct ore types, which were not amenable to treatment in the existing beneficiating plant, or usable in the blast furnaces, have been mined and stockpiled in order to uncover the treatable ores. One of these ore types has been labeled "Diseminado" ore, and is low grade containing approximately 42% Fe with sulphurs ranging from 1 to 2%. The other ore type has been labeled "Pulverulento" ore, and is high grade containing approximately 65% Fe and 0.1% S, but at 80% minus 325 mesh, is too fine grained for efficient sintering. Late in 1968, Arthur G. McKee & Company became involved with the problem of improving the above ores for their efficient and economical use in Altos Hornos' blast furnaces. Early in 1969 representative samples of Diseminado ore were obtained for laboratory bench-scale testing at the University of Minnesota, Mineral Resources Research Center. Concentration tests incorporating magnetic roasting, wet magnetic separation, high intensity separation, high tension magnetic separation, anionic flotation of apatite, cationic flotation of silica and oleic acid flotation of iron were performed. Laboratory testing was concurrently carried on at La Perla Laboratory, which resulted in plans to construct a 10 TPD pilot plant. The pilot plant was operational in September, 1969. Analyzing laboratory results as well as pilot plant results, Altos Hornos and Arthur G. McKee & Company metallurgists agreed that the most promising flowsheet for the low grade Diseminado ores entailed wet magnetic cobbing, desliming, and oleic acid flotation of the non-magnetic fraction. A combined concentrate of

Jan 1, 1972

By Louis M. Perlman

Quantitative methods are, by now, a standard tool of the mining industry, and are commonly used by Research Departments in their evaluation of production methods and schedules, and their associated costs. Indeed, much sophisticated computer work has been devoted to such evaluation of controllable costs and capital requirements. These data are an important input into the project evaluation formula, which is probably the most important single calculation per formed by a mining company, since the result decides whether a particular project is viable. It is instructive to summarize the broad principles of project evaluation, since they are crucial to the remaining sections of this paper. PROJECT EVALUATION The most widely used method of appraising projects is known as Discounted Cash Flow (DCF) method. Two main variants are used; they are known as the 'not present value' (NPV) approach and the 'internal rate of return' (IRR) approach respectively. The difference between the two is that the former takes the firm's interest rate as given and uses this knowledge to calculate the present value of the project; whereas the latter calculates the highest interest rate the project could tolerate and still just breaks even. The technique is more simply discussed in terms of the first method (NPV).

Jan 1, 1972

By Walter H. Schwedes

Ore grinding mills are really just slowly rotating barrels, but barrels that are growing in size so fast that the application of electric drives for them is rapidly approaching a technology like that for wind tunnels or pumped storage drives. This application is particularly worthy of care because some 40% of the 75 megawatts of power used by a large copper ore concentrator, or some 60% of the 200 megawatts supplied to a large iron ore concentrator, are for grinding. These ore plants are located where the ore is, not where a utility happens to be. So, the challenge is not only to choose a drive and .power transmission for reasonable cost, high performance, reliability and minimum maintenance, but to afford the interface between mill drive and power distribution and source systems to minimize the whole ore plant's monthly power bill, or costs of self generation. Conclusions can be reached in optimizing a drive selection only for each particular ore plant's set of parameters, but by identifying the criteria for selection and then weighting each type of drive per criteria, yardsticks for final choice become apparent. This is the purpose of this paper. Grinding action takes place inside the barrel, where the ore charge is ground with the aid of balls, or mill length rods, or large chunks of ore as in autogenous grinding.

Jan 1, 1972

By M. A. Kaufman

In this paper I will attempt to present an up to date review of the type of exploration' that has previously been carried out in Alaska, discuss some of the more significant past producers and recent discoveries, and suggest some approaches to future exploration. Hopefully this information may be of some use to those parties tempting to evaluate Alaska's non ferrous, non placer, metal potential or contemplating initiation of exploration in the state. II. SUMMARY AND CONCLUSIONS Past production of non ferrous metals from lode deposits in Alaska has been meager considering the size of the state. Since there have been no major lode mines operative in Alaska since World War II, and since logistical conditions vary throughout the state, it is not possible to generalize with respect to mining costs in Alaska as compared to those in other areas. There seems to be little question, however, that a major deposit situated in a reasonably favorable location' could be profitably operating at present. Host of the known metal prospects in Alaska were discovered by early gold prospectors prior to World War I. From World War I through World War II exploration consisted chiefly of surface prospecting by prospectors on a diminished scale, as compared to the early gold rush days, drilling of some prospects by the U.S.B.M,, and occasional mine or prospect evaluations by mining companies. From the end of World War II to the present time, there has been a generally steady increase in exploration by mining companies consisting chiefly of prospect and district evaluations, large scale aerial reconnaissance programs in search of color anomalies, and regional drainage geochemical surveys. The post World War II increase in mining company exploration has not been matched by an increase in conventional surface prospecting.

Jan 1, 1972

By C. W. Baxter

Eveleth taconite company was formed in 1963 to mine and beneficiate taconite on the Mesabi range of Minnesota. Its thunderbird mine is located midway between the cities of Eveleth and Virginia, Minnesota, and the crude ore is transported by rail to its Fairlane plant approximately ten miles to the south of the mine, "figure 1". As is implied by the names of the mine and plant, the ford motor company is the principal owner of Eveleth taconite company, with an 85% interest, Oglebay Norton company holds the remaining 15% interest and also is the managing agent.

Jan 1, 1972

By Donald G. Rogich

The concept of initiating a large action-oriented contract, directed toward inherently safe mining systems, was conceived by the U. S. Bureau of Mines in January 1970. At that time we were in the process of establishing research contracts and grants, about 100 of which were let in FY 71 to deal individually with fairly specific technological areas. These projects in the aggregate covered a wide spectrum of health and safety problems. What appeared to be necessary was the creation of a project or program that would provide a focal point for the demonstration of many of the results of this research and also in the action sense culminate with working hardware and systems that could be tested and demonstrated over a fairly long teen. The concept of working demonstrable systems, rather than just a conceptual study, was, felt to be necessary for two significant reasons. In the development of any new system, the translation from concept to working hardware is usually a costly and time consuming process which acts as a deterrent to implementation. Secondly, many decisions in the mining community to change equipment or systems ,are based on first hand observation of the new system, in operational practice, an attitude which is certainly understandable in view of the high capital costs of equipment. The decision was made to procure a single R&D contract which would be aimed at developing underground coal mining systems which

Jan 1, 1972

By Charles A. Beasley

Increased technical and legislative analysis by all parties of interest could result in more efficientand better directed regulatory legislation in the mining industry. Efforts to forestall or frustrate legislation through massive lobbying and public relations efforts are seldom effective over time and often lead to more stringent and far reaching legislation than necessary. The Federal Coal Mine Health and Safety Act of 1969 is perhaps an outstanding example of such insufficiences; a future example may well be regulatory surface mine legislation. Although a lack of extensive hard data seldom enables rapid or sophisticated analysis early in the legislative process, even preliminary analysis may be sufficient. Simple statistical analyses of available data, assessment of the legislative rationale, and subjective appraisal of other non-quantifiable constraints to improved mine safety. An average of 115 underground fatalities at an exposure frequency rate of 0.67 can be reasonably expected in the immediate future, under existing levels of technology, degree of regulation, and economic conditions. If gross unrefined estimates of 6 preparation plant, 5 surface, and 30 strip mining fatalities are assumed, the total fatality industry level could be expected to approximate 156 Serious professional, economic, and technical constraints within the the industry probably preclude any major decrease of these accident levels within the near future

Jan 1, 1972

By A. T. Yu

Technology and economies of scale have, in the past decade, brought about the emergence of giant vessels. Meanwhile, to answer the need for rapid dispatch, as a means of combating the proportionately far greater demurrage charges, shiploading and unloading speeds have soared (Ref. 1, 2, 3). As the loading and unloading rates have dramatically increased, so has the cloud of dust grown in unbearable proportions. It not only has threatened to be a real menace to machinery and men, but in certain instances has also seriously jeopardized fish and marine life (Ref. 4). In an era when ecology is king, dust in shiploading and unloading can no longer be shrugged off as a mere public nuisance, and its control is now duly recognized as of grave concern to all. Even if public outcry were not a problem, from the operator's own parochial point of view, dust can adversely affect productivity and the well-being of the operating personnel. Without adequate control, it can also result in costly equipment maintenance, particularly when the dust is micronic in size, and abrasive. The Hierarchy of Control Techniques Given the great fortune of not yet having to deal with gas and odors, in the jargon of pollution control, our problem is confined to having to control "particulates" only. To deal with "particulates", the myriad of dust control techniques can be utterly confusing to those who are not entirely well versed in the methodology. Our analysis of what is available to date results in the following hierarchy of logical preferences: 1. Prevention 2. Removal 3. Suppression 4. Containment 5. Dilution Since it deals with the root cause, prevention always outranks the cure. Once the dust is generated, removal nips it in the bud. Only when dust removal is

Jan 1, 1972