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By Karl J. C. Harries

"The following is an outline or check sheet of some things that might be looked at when considering the concept of a royalty or royalty provisions. It is not intended as a guide to what is right or wrong (that is for the parties to decide). It does not replace the discussions in this work and is not intended to be a complete or exhaustive compilation of matters to be considered. It presumes that you are familiar with the basic concepts of royalties and has been included as an aide memoire only. Use it as such, with caution and common sense, and amend it to suit your needs. Remember also that brevity can result in inaccuracy or imprecision. This is a danger in many points below.The section references are for the sections where the matter is the main subject of the section – see the index for other sections.Royalty TypesNet Proceeds [§§ 5.8.; 11.4.]• No accepted or understood meaning within industry.• Literal meaning, if not defined, would imply “net operating profit”.• Often defined as net profit with revenue base of proceeds from sale of product.• Should not be used without detailed and clear definition. Net Operating Profit [§§ 5.8.; 11.4. – referred to only]• Net profit without recoupment of pre-production expenditures.• Revenue base: usually proceeds from sale of product.• Operating costs deductible.• Some reserves may be permitted.• Recoupment of some post-production capital expenditures may be permitted.• Not often seen as basis for royalties in Canada."

Jan 1, 2003

By Karl J. C. Harries

"The Table of Contents that follows is only an example and is the Table of Contents from an actual negotiated agreement. It is merely intended to show how an agreement might be set out and the nature of possible provisions. As a negotiated agreement the format was dictated by the negotiations. It is not offered as a precedent of what should be contained in a joint venture agreement (“JVA”), the “proper” sequence of Articles, or a complete listing of the contents of joint venture agreements generally. The set-up used for an agreement should be decided by the parties and be one they consider flows in a logical and workable sequence. This example sets out the “deal” first, followed by the provisions relating to how work is to be carried out and then by administrative provisions necessary to make the agreement work. If you are more comfortable with, say, having the Committee provisions at the beginning, by all means have it drafted that way -- you are going to have to live with the agreement and work under it.Notes:1. The Table of Contents provisions appear in bold print. The italicized sections are annotations, which have been provided in some cases where the heading may not clearly describe the contents. They are not intended to be comprehensive, but refer to some specific matters that are considered to be of interest or to need some clarification.2. The subject matter of many of the articles and paragraphs is discussed or commented upon in the text of the book. Some of section cross-references have been provided. Such references are only to sections where the topic is a principal subject and no attempt has been made to provide a comprehensive indexing.3. Although this particular agreement is a three-party agreement, *B* and *C*, the Owners, are required to act as a unit (see para. 1.09. – § 8.44.), making the agreement effectively a two-party agreement. The parties insisted upon having a decision-making Committee and structuring the agreement accordingly. As is explained in § 8.11., such an arrangement is not recommended and can result in problems.5. See also §§ 8.24., 8.41. and 14.13. for discussions on tables of contents, summaries, and headings."

Jan 1, 2003

By Dan Nilsson

INTRODUCTION A company must have an objective, and that usually is to earn money. In some countries an objective can also be to reduce unemployment in an area or to develop nonindustrialized areas. Government-owned companies can also have as an objective that of serving the com¬munity. This discussion is limited to the consideration of normal companies wanting to earn money. Such an objective, however, has to be defined in more detail. It is not satisfactory only to maximize the total annual profit from, for example, a mining project. In comparison with most other branches, the mining in¬dustry is very capital intensive. When starting a new project, the mining company must invest a lot of money in mines, ore treatment plants, etc. It is normally many years before any income is received from the ore. Fig. 14 illustrates the payments for a new mining proj¬ect with an expected lifetime of 10 years. Whether this project is a profitable one depends on a lot of things. If the company has a shortage of money, it can be impossible to finance the project. Even if the company has enough money, the management may think that perhaps the project may not return the money fast enough. Such limitations will not be discussed here. Suppose that the company has internal funds from its own operation or can borrow them. Since the mining company must invest the money in advance, it is not satisfactory only to add all of the costs during the mine's lifetime and compare them with the total income during the lifetime. The company must include the time value of the capital. In this appendix, the basic investment theory neces¬sary to judge the profitability and costs of mining proj¬ects will be discussed. INVESTMENT THEORY Time Value of Money If a private person has a dollar and puts it into a bank, he or she will receive interest. If the interest rate is r%, the value after one year will be $(1 + r), after 2 years $(I + r)2 , etc. The interest rate represents the time value of money. If the same person wants to have $1 in the bank af¬ter one year, he or she has to put $(1 + r)-1 in the bank today. If the person wants $1 after 2 years, it is neces¬sary to put $(1 + r)-2 into the bank today, etc. So one dollar today is worth more than one dollar tomorrow. It is, of course, not correct to compare money at differ¬ent times since each dollar has a different value. It is necessary to transform all payments to the same point in time. That is called the calculation of the capital value of a cash flow, and to do this an interest rate is used. In the same way, the cash flow from a project like that shown in Fig. 14 can be translated to any other point in time. Most common is to translate all payments to the beginning of the mining period. That capital value is often called the present capital value. Interest Rate What interest rate will the company use? A com¬pany, just like an individual, has the basic alternatives of keeping its money in the bank and receiving interest, or borrowing money from a bank and paying an interest rate. The interest rate represents the time value of money for the company. If the company has a shortage of money, or many good potential investment projects, it has to use a higher interest rate than if it has a lot of money available. Most companies also increase their interest rate as a hedge against the risk involved by using money for uncertain investments, because of taxes, etc. Capital Value When the interest rate has been decided, it is possi¬ble to estimate the capital value of a project. Here the discussion will be limited to the estimation of present capital values. Suppose that one wants to know the present capital value of $1 (Fig. 15), which will be received after n years. To transform it n years back in time, one must multiply it by the factor (1 + r)-, where r is the inter¬est rate the company uses. Table 1 gives these factors for different years and interest rates. Example: At the end of year 5 a mining company has to invest $50 million in a new mine. What is the present capital value at the end of year 0? The company uses an interest rate of 15%a.

Jan 1, 1982

By G. Grassmück

The question of whether the air curtain principle could be used under conditions prevailing in Canadian metal mines was investigated. A vertical, portable BERRY air curtain was tested, at first in a wind tunnel built at Ecole Polytechnique at full scale (8-by 8-ft cross section) to simulate a drift and its lateral connections, and then in the haulage ways of a metal mine under actual conditions. The results permit us to predict under what conditions this type of air curtain is capable of acting as an air stopping or flow regulator and how it could be further developed.

Jan 1, 1969

By R. Heikkilä

As a part of a large research and development program in Finland, a system calibration for an UAV measurement method having practical experiments in a Jorvas Railway Yard design and construction project. The Railway yard construction are was measured using an UAV measurement device by Smartplanes (Smartone) and using some reference points measured by a GNSS device. The measured data was cleaned, combined and adjusted through Least Squares Optimization using the software developed by a Finnish company Pieneering Oy. As references, two different laser scans as well as total station surveys were used. For applicability evaluation, the accuracy of measurement, the reliability of measurement, and the economy of measurement were used. Based on the comparisons, the achieved precision of the UAV measurement was high, instead the accuracy of measurement was not sufficient in this case. The principle of this photogrammetric measurement includes a lot of redundant observations making it possible to achieve a high level of reliability. The economy in this Railway Yard Design project was not able to achieve.

Aug 1, 2013

By A Jewbali, R Perry, R Inglis, L Allen

"The use of conditional simulation to characterise mine plan uncertainty is increasing for the assessment of risk in mining projects. While the development of grade uncertainty profiles is relatively straightforward and can be validated using standard geostatistical techniques, the addition of geological uncertainty to evaluate total risk remains problematic. Some of the problems associated with geological uncertainty methods include the clustering of data in favourable geologic units, difficulty in training image definition and the inability to address change of support issues for categorical variables. Despite these obstacles, the importance of geological uncertainty as a contributor to total uncertainty has prompted Newmont to explore and evaluate the use of various techniques (and combinations of techniques) on different deposit types.Two orogenic deposits of different geological complexity were selected for the study: Subika, a shear zone-hosted deposit, and Merian, a deposit containing gold mineralisation associated with quartz vein zones and stockwork within which are found higher-grade quartz breccia zones. Newmont trialled various categorical simulation approaches to determine the applicability of these methods for each deposit type and the effect of parameter choice on the width of the uncertainty interval. Some of the techniques that were trialled include multiple point statistics methods, sequential indicator simulation using local probabilities as well as variations of these methodologies.The goals of this study included: gaining an understanding of which techniques may work best in which deposit types gaining an understanding of the intricacies of each method gaining an understanding of the effect that each method has on total uncertainty analysis.This paper presents a comparison of the various techniques and makes recommendations for their use in uncertainty analysis.CITATION:Jewbali, A, Perry, R, Allen, L and Inglis, R, 2014. Applicability of categorical simulation methods for assessment of mine plan risk, in Proceedings Orebody Modelling and Strategic Mine Planning Symposium 2014, pp 85–98 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Nov 24, 2014

By Raymond F. Moran

The history and development of the FMC Coke process has been reported in numerous presentations over the past 10 years (1, 2, 3, 4, 5, 6) but a short review is desirable, especially regarding the aspects that are influenced by the coal to be used. F'MC has been developing this process in pilot facilities since 1956 and in a modest sized plant in Kemmerer, Wyoming since 1960 (Figure I). This plant produces strong uniformly sized coke briquettes from a completely non-coking coal, namely Elkol, a sub-bituminous coal of the Adaville seam. Since operating commercially, over 300,000 tons have been produced, 90% of which has been used in electric phosphorus furnaces and some 10% of which went for trials in iron blast furnaces. We believe that this commercial use of non-coking coals is a unique experience in the history of coke manufacture.

Jan 1, 1975

By Tetsuji Hirato, A. J. Monhemius, Yasuhiro Awakura, G. W. Warren, E. Peters

An electrostatic pseudo-liquid membrane technique, in which extraction and stripping take place simultaneously in a single reaction vessel using an electrostatic dispersion, was applied to recover Ni(II) from aqueous 0.1 kg m-3 Ni(II)(as NiSO4) – CH3COONa solutions, and the Ni(II) ions were concentrated by a factor of 9 into an aqueous 1.0 kmol m-3 HCI solution using D2EHPA as an extractant at the applied voltage of 3.7 kV for the dispersion. When the process of ESPLIM proceeds favorably, the concentration of Ni(II) in the upper part of the organic phase of the reaction vessel is lower than that in the lower part. In addition, the concentration of Ni(II) in the organic phase of the extraction chamber is higher than that in the stripping chamber. For the stable operation of this process, the stripping rate must be greater than the extraction rate to prevent the excess accumulation of Ni(II) in the organic phase which leads to the poor dispersion of the aqueous phase.

Jan 1, 1993

By H. C. Harrell

The Tennessee Valley Authority began employing geophysical well logging for foundation investigations in October 1973. Since that time more than 3,000 holes have been evaluated for engineering purposes. The Tennessee Valley Authority has not actively used geo-physical well logging for exploration of construction materials, but we feel that much of the information derived from geophysical logs for foundation exploration is applicable to the construction materials industry. This paper will then discuss geophysical logging as applied to foundation engineering and, by implication, the feasibility of use in construction materials exploration. The use of geophysical logging and percussion drilling instead of coring has greatly expanded TVA's data acquisition capabilities and has also resulted in substantial savings in time and money. Economical boreholes are obtained through the use of large percussion track drills (Figure 1). This equipment is capable of drilling through the overburden, setting steel casing on the top of rock, and drilling the rock beneath the casing. Holes as deep as 400 feet (121.9 m) have been drilled by this method.

Jan 1, 1977

By F. J. A. van Ruitenbeek, M. Dalm

In the presented study test work was performed with near-infrared hyperspectral imagery (NIR-HI) on 36 ore samples from a South-American epithermal Au-Ag mine. The aim of the test work was to investigate if NIR-HI provides information about the alteration mineralogy of samples that can be used to predict their economic value. Mineral distribution maps were produced from the hyperspectral images by using correlation coefficients between the image pixels and a set of reference spectra. These maps showed that detection of mineralogy with NIR-HI can be used to distinguish; i) ore particles with low Au and Ag grades, ii) ore particles with high carbon contents, iii) ore particles with high sulphur contents.

Jan 1, 2015

By G. M. Wolfaardt, B. C. Qi

"From a lifecycle point of view, biologically digested sludge is a valuable product that should be reused if possible. Sludge may be applied to agricultural land for further sludge treatment and improvement of the characteristics of the soil. The characteristics of sludge that affect its applicability for soil conditioning include moisture content, pathogens, nutrients and metals. In this paper, the use of solid anaerobic digestion sludge of the lignocellulosic residues to condition soil was investigated in regards to nutrient composition, water content/retention capacity, hygienic quality (contamination of pathogenic bacteria) and heavy metal adsorbing/releasing characteristics of the sludge.It was found that the digested sludge had approximately 44.5% free and immobilized water and 46.9% bound water. The water-holding capacity of the sludge was high. This was a merit to apply the sludge to agriculture in dry areas. Anaerobic digestion under thermophilic conditions showed a promising disinfecting effect to the sludge, in contrast to the landfill digestion. The anaerobic digestion sludge could be considered as a humus-rich hygienic product that improves soil fertility and water holding capacity, nourishes plants and immobilizes heavy metals in the environment"

Jan 1, 2003

By Richard H. Spencer, Warren G. Bender

Since the passage of the Coal Mine Health and Safety Act of 1969, the Bureau of Mines has made many advances in mine communications. These efforts have resulted in the following developments and demonstrations: • Surface-to-surface electromagnetic transmission of baseband voice signals through overburdens as deep as 600 feet. This transmission was achieved with equipment from the Interim Mine Rescue and Survival System Program, and demonstrated that baseband voice communications could be obtained through these overburdens in the absence of mine-generated noise; that is, when the mine power system was shut off. However, during mine operational conditions, the mine-generated noise proved to be so large that effective baseband voice communications to the desired depths could not be effected. • The development of beacon transmitters for locating trapped miners. This work was again the outgrowth of the Interim Mine Rescue and Survival System. Extensions of this work have led to reliable detection and location of trapped miners to depths of 1000 feet. The system, which makes use of a loop antenna deployed where the trapped miner is located, uses low-duty-cycle, tone-burst transmission. Portable tuned receivers and loop antennas are used on the surface to determine the location of the trapped miner. An extension of this work has led to a call-alert paging system concept, wherein a transmitter, similar to that used in the trapped miner system, is used to audibly and/or visually alert key mine personnel carrying pocket receivers that they are wanted at the nearest mine telephone. In addition, a roof-bolt paging system has been developed, wherein commercial paging and mine carrier phone equipment are used in conjunction with a long-wire "roof bolt" antenna to page individuals and relay to them short voice messages.

Jan 7, 1975

By T Y. Ko, Y S. Kang, S J. Park, J H. Hwang

The lunar subsurface, particularly the lava tubes formed by ancient volcanic activity, presents a promising environment for establishing safe and sustainable human habitats on the Moon. Tunnel Boring Machines (TBMs), widely used for excavating tunnels on Earth, offer a potential solution for developing these subsurface spaces. However, the unique lunar conditions, including extreme temperatures, high vacuum, radiation, and the extraordinary strength and abrasiveness of lunar rocks, necessitate significant adaptations to existing TBM technology. This study investigates the feasibility of utilising TBMs for lunar subsurface exploration and base construction, addressing the challenges posed by the harsh lunar environment. We review previous conceptual designs for lunar TBMs, highlighting their strengths and limitations in addressing these challenges. Additionally, we explore innovative excavation methods, such as microwave-assisted rock weakening and undercutting techniques, to enhance the efficiency and effectiveness of lunar TBM operations. By evaluating the geological characteristics of the lunar crust and analysing the potential of lava tubes as launching points for TBM operations, this study provides a comprehensive assessment of the technical requirements and operational considerations for lunar TBM implementation. The findings of this research contribute to the growing body of knowledge on lunar base development and pave the way for future human exploration and utilisation of the Moon’s subsurface resources.

Sep 1, 2024

By M-d-N. Gagnon, P. Okono, Y. Bergeron

In the mining industry, decisions regarding the type and number of comminution tests to be completed typically rely on geologists? observations and conclusions when studying drill cores. Given that these decisions are based on visual observations, they are essentially approximate and often inaccurate from a comminution viewpoint, causing a sizeable margin of error in estimating characterization test needs. Consequently, companies are often forced to perform more tests than necessary, requiring a significant quantity of material, and accruing significant costs. Recently, a new device, called the Hardness Index Tester (or HIT), was developed, offering users a low cost in-house mechanism for estimating the comminution parameter A*b and the Bond Ball Mill Work Index at any mine site, with potential applications on fragments up to 25 mm from drill core. In late 2016, Agnico Eagle Mines Limited initiated a trial to investigate if having an HIT device installed in a core repository would make it possible to identify the different rock properties more accurately and determine the number and type of comminution tests required. The application of the HIT was not to replace the standard comminution tests, but rather to generate a high number of comminution and geomechanical parameters for the rock mass. Ultimately, the objective would be to determine the uniformity of the rock mass and, therefore, easily distinguish any potentially problematic zones. With this method, the appropriate number of standard tests could be determined, making the HIT not only an excellent complement to the standard laboratory tests, but also an indispensable device for a geometallurgical characterization. This paper presents the results from the HIT trial using samples from the Odyssey Project, which is a Mine Canadian Malartic property.

Jan 1, 2017

By N. Nišić, A. Cvjetić, V. Jovanović, D. Knežević, D. Nišić

The risks associated with operating water reservoirs and tailings storage facilities (TSFs) are different because of their different purposes, methods of construction and operation, and characteristics of the materials impounded and their flow behaviour. Regardless of the differences, these two types of structures are often put in the same category when it comes to risk assessment and the application of relevant methodologies, which may result in unrealistic outcomes. In this paper we investigate whether it is possible to apply the risk ranking methodology designed for water reservoirs to TDFs and overview the key differences between these two types of structures. We also provide a comparative analysis of the results obtained by conducting a risk assessment of the operation of a TSF, applying the method recommended by the International Commission on Large Dams (ICOLD), and analyse the results using the failure mode and effects analysis (FMEA) technique. It is concluded that a more realistic evaluation of risk levels can be obtained by adopting a systematic approach to risk assessment in accordance with the traditional risk definition on which the FMEA technique is based.

Nov 30, 2022

By M Castle, D Mendelawitz

The Marra Mamba iron ore in FortescueÆs Chichester Range project area occurs as a very flat dipping series of waste shale and iron ore beddings. These beddings vary from millimetre thickness to several metres. The ore material generally exhibits a moderate degree of competence when subjected to ultimate compressive strength (UCS) tests, normally failing at up to 60 Mpa. However, the strength of the beddings is markedly less when subjected to the tensile forces imposed by the cutting action of the surface miner. Two surface miners of differing age and sizes were tested over a period of almost three months. These machines produced a product that had not been subjected to dilution by blasting and of such a size that primary crushing is not required. The machines were able to cut all ferrous material presented to them with varying degrees of success. Material containing higher quantities of manganese were broken but caused catastrophic wearing of the picks. During the trial the volume of material produced by the two machines in various strength materials very closely matched the manufacturerÆs estimates. The major impact on costs per tonne related to the wear on bits, which in turn varied with the bit design and composition. Bit design and composition testing is continuing.

Jan 1, 2007

By Christopher M. St. John, Tony F. Zahrah

Empirical and numerical methods are the two extremes of the tools available for the seismic design of subsurface excavations and underground structures. Both have their limitations: when relying on purely empirical methods directly relevant experience may be scant; site data may be insufficient to justify a comprehensive dynamic analysis. The primary purpose of this paper is to review the analytical tools available to the design engineer of subsurface excavations and underground structures. Particular attention is devoted to simplifed models that appear to be applicable in many practical cases.

Jan 1, 1985

By Donald E. Hendrickson

A new prinicple of side dumping front end loading for underground mucking machines has completely changed the concept of underground loading and haulage equipment arrangement both in production and development work loading. Versatility and adaptability of this type of machine permits combinations with a broad range of haulage means not possible with -conventional overhead loaders. Steel "armored" conveyors serving this type of loader are replacing conventional rail mounted car haulage to give a continuous loading operation and effect important economics of reduced manpower, faster loading rates and fewer working areas for a required production. First used in Germany this easy to control and highly efficient means of placing rock from the muck pile on or into haulage means has advanced the art of underground rock loading more in the past three years than any other advancement since the first successful small crawler mounted air powered loader was introduced in 1954. Bucket type loaders with a relative new side dump principle are gaining in popularity for underground loading. They are replacing conventional overhead loaders in present applications and becoming first choice in new ones. Primarily for hard rock development and production loading they are also widely used in production loading of coal and other soft materials. This discussion briefly traces the historical development of hard rock underground loaders to the new side dump type and its present population. In more detail various applications, loading techniques and the advantages of operation, production and economy with the side dumper in hard rock loading will be dealt with.

Jan 1, 1966

By Y. H. Zhang

Mechanism of BK501 in desiliconization from bauxite was studied by use of flotation test, EDS, ?-potential, FTIR. Results of flotation show that almost all of diaspore can be depressed when BK501 is put into pulp ranging from pH 4~12, in the meanwhile kaolinite is slightly activated. In the light of surface analyses, it is concluded that the adsorption of reagent on the diaspore is dominant by chemical interaction. Moreover, kaolinite may float more by addition of BK501 because of flocculation.

Jan 1, 2014

By X. O. Xia

This paper introduces a kind of flotation machine for nonferrous metal, ferrous metal and non-metal minerals. With the application and development of flotation machine, researching the designment of master parts, including tank, impeller, stator, false bottom. Through the commercial run to validate the correctness of designment, achieving satisfied technical and economic target and supplying a kind of efficient and reliable flotation machine.

Jan 1, 2014