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By L. C. Raymond

Valuations in the mineral industry differ from those of other enterprises because mines and oil wells have a definite life so cannot be considered a perpetuity. This requires that in any mineral-property evaluation the recovery of invested capital is necessary during the life of the property. Capital writeoffs for nonextractive industries are assumed to be continuously plowed back to sustain the operation and produce yields on the capital invested. The extractive or mineral industry, however, generally attempts to return to the investor both interest and principal during the life of a property. Normally this is done currently and the dividend includes both items. Where the mineral properly possesses large reserves and the life factor approximates a perpetuity, the return on investment is generally comparable to that of industrial stocks. The valuation of a mineral property, at best, is based on educated estimates and judgment factors. This is particularly true as it relates to estimating selling prices over a long term or assessing the quality of management. Also, it is possible to make various assumptions as to rapidity of working out the deposit, varying time for start-up of operations, varying earning rates, so as to obtain different results with the same basic facts. Thus it is not surprising that two engineers, irrespective of their abilities, may not agree exactly even when given the same facts, but their results should be close enough to be used in establishing a fair value for trading purposes. The valuation is no better than the source of basic data and the soundness of judgment factors. Fundamentally the basic principles of mineral valuation are similar for base metals, sulphur, oil, or any other mineral. Each mineral, however, requires an engineer to have a knowledge of such factors as its occurrence, distribution, mining and processing methods, and marketing problems in order to gather and analyze all the facts and data that have a bearing on the earning potential of the property. PRESENT VALUE OF A MINERAL PROPERTY In essence the present value of a mineral property is a sum of money in today's dollars that future earnings from the property are worth. It differs

Jan 1, 1964

By L. C. Raymond

Valuations in the mineral industry differ from those of other enterprises because mines and oil wells have a definitive life so cannot be considered a perpetuity. This requires that in any mineral-property evaluation the recovery of invested capital is necessary during the life of the property. Capital writeoffs for nonextractive industries are assumed to be continuously plowed back to sustain the operation and produce yields on the capital invested. The extractive or mineral industry, however, generally attempts to return to the investor both interest and principal during the life of a property. Normally this is done currently and the dividend includes both items. Where the mineral properly possesses large reserves and the life factor approximates a perpetuity, the return on investment is generally comparable to that of industrial stocks. The valuation of a mineral property, at best, is based on educated estimates and judgment factors. This is particularly true as it relates to estimating selling prices over a long term or assessing the quality of management. Also, it is possible to make various assumptions as to rapidity of working out the deposit, varying time for start-up of operations, varying earning rates, so as to obtain different results with the same basic facts. Thus it is not surprising that two engineers, irrespective of their abilities, may not agree exactly even when given the same facts, but their results should be close enough to be used in establishing a fair value for trading purposes. The valuation is no better than the source of basic data and the soundness of judgment factors. Fundamentally the basic principles of mineral valuation are similar for base metals, sulphur, oil, or any other mineral. Each mineral, however, requires an engineer to have a knowledge of such factors as its occurrence, distribution, mining and processing methods, and marketing problems in order to gather and analyze all the facts and data that have a bearing on the earning potential of the property. PRESENTVALUEOFAMINERALPROPERTY In essence the present value of a mineral property is a sum of money in today's dollars that future earnings from the property are worth. It differs

Jan 1, 1959

This paper examines the methods and people required for the evaluation of project or corporate acquisitions. Experience over the past five years has shown that some growth can be achieved by carefully evaluated acquisition of gold projects within regions where the acquiring company has gold processing facilities. Many Western Australian companies have participated in this process and the trend seems likely to continue with a diminishing number of larger producing companies controlling through joint venture or direct purchase of widely spaced ore deposits. In some cases the acquisition may include ore processing facilities, however an increasing number of smaller project acquisitions, involving small open pit gold deposits, which are within trucking distance of the acquiring company's mill. Whilst gold prices remain at the current depressed level we can expect to see this trend continue.

Jan 1, 1989

By William E. Roscoe

"Valuation methods are well established for mineral properties with production or imminent production, and include discounted cash flow and comparable transactions. Valuation methods for non-producing mineral properties, however, are more subjective. Non-producing mineral properties include those at various stages of exploration, properties at the prefeasibility or feasibility stage, properties with currently uneconomic mineral resources, and past-producers. Different valuation methods may be appropriate for different types of mineral properties.Income approach methods such as discounted cash flow and option pricing are generally not applicable to properties at the exploration stage. The market approach is generally appropriate to all types of mineral properties, although it is difficult to find good comparables because of the unique nature of mineral properties and the small number of transactions. Cost approach methods, such as appraised value and geoscience factor, are commonly used for exploration stage properties.Canadian standards and guidelines for valuation of mineral properties are in the process of being finalized by a Special Committee of the Canadian Institute of Mining, Metallurgy and Petroleum (CIMVal Committee). The CIMVal Standards are intended to be consistent with National Instrument 43-101, which sets regulatory standards of disclosure for mineral projects, and with International Valuation Standards. The intent of the CIMVal Standards and Guidelines is that mineral property valuation be carried out by appropriately qualified individuals and that all relevant information be disclosed."

Jan 1, 2003

By William E. Roscoe

"Non-producing mineral properties include those at various stages of exploration, properties at the pre-feasibility or feasibility stage, properties with currently uneconomic mineral resources, and past-producers. The market approach is applicable to all these types of non-producing mineral properties. Income approach methods such as discounted cash flow and option pricing are generally not applicable to properties at the exploration stage, but may be applicable to non-producing mineral properties with defined mineral reserves or mineral resources.The value of a non-producing mineral property depends on its perceived potential for the existence and discovery of an economic mineral deposit. The potential, in turn, depends on a number of factors which must be considered when choosing market comparables. These comparability factors include such items as geology, mineralization, stage of exploration and results, mineral resources, location and geography, and political jurisdiction. The date of the market comparables must be within a reasonable time period of the valuation date of the subject property. Although it is difficult to find good market comparables because of the unique nature of mineral properties and the small number of transactions, these difficulties are compensated for by analyzing a number of transactions on similar properties to develop a range of values for the subject property.For valuation purposes, market comparables can be expressed in terms of total property value, value per unit area (e.g., $ per hectare), or value per unit of metal contained in mineral resources (e.g., $ per ounce of gold, or $ per pound of copper). The market comparable value can be used to estimate the value of the subject property by using the total property value, unit area value or contained metal value."

Jan 1, 2003

By A. A. de Gast, R. B. James

"The metal content of ore blocks can be calculated by the use of many different methods. These methods range in sophistication from manual calculation to computer. oriented techniques. In this case a cubic polynomial regression model is developed to depict the grade distribution of an orebody. Mine production, in stope dimensions, is then simulated on a computer to predict the output of metal content. The volume, grade and variance of the grade are estimated by triple integration and matrix algebra. A case study shows reasonable agreement between the results from the mathematical model and the mine geologists' estimate of production and ore reserve grade and tonnage."

Jan 1, 1972

By A. Noël, R. Lapierre, M. Provencher

"Modem aluminum smelters are facing significant operating cost pressure. Key methods used by smelters to manage this pressure are automation and production-information systems to optimize processes, manage quality, anticipate problems and reduce operating costs. In 2002, Aluminerie Alouette Inc. began its Phase II Expansion project, and retained the joint venture of SNC-Lavalin and Hatch (SLH) as its engineering, procurement and construction management (EPCM) team. Alouette had the distinction of being one of the most efficient aluminum smelters in the world. Alouette already understood the importance of systems integration in project delivery. For Phase II, key objectives were identified to ensure ""a state of the art"" integrated architecture that would support Alouette's production goals to integrate the existing facilities with the expansion, to form a single efficient facility and meet project schedule and budget targets. Achieving those objectives within the context of a large project often creates major challenges due to the nature of the traditional EPCM delivery model, which relies on several vendors and third-party-systems integrators. In this case, an integrated Alouette-SLH team was made responsible for all aspects of the systems integration, taking over the task from most suppliers. The integrated team was responsible for delivering an automation system and plant-wide-production IT system for the new facilities while accommodating migration for the existing systems. Through the use of rigorous methodology and advanced state of the art technology, the IT and automation strategy led to significant value creation and is recognized today as one of the key factors of the project's success. The primary results were: fast and efficient start-up of facilities, due to quality programming and implementation; a plant able to operate as a single entity; automation and IT systems delivered before time and under budget; standard programming methods implemented throughout the plant; and reduced and simplified maintenance."

Jan 1, 2006

By I. Wayland

Value added blasting is a process methodology that links tasks and processes, with the aim to improve/enhance the technical application of explosives technology and initiating systems, resulting in improved output. The phases and steps of a typical value added blasting intervention are discussed in this paper. Each step having distinct purposes, principles and methodology. The underlying philosophies and process steps of the programme are described for each step. This paper gives an account of projects that have been completed in two Anglo American Gold Mines. This will include a description of the projects that were conducted at Vaal Reefs 8 Shaft and Western Deep Levels South Mine covering: ? The need for blasting improvements ? The approach that was followed ? The result of the programme.

Jan 1, 1999

By J. H. Hill

The globalization of mineral markets and intense competition in downstream mineral-consuming industries such as transportation, agriculture, and construction are requiring raw materials suppliers to innovate, improve quality, invest in new technology, and control costs. Mineral specifications are becoming more refined, and pressure to improve products is felt from increasing numbers of competing producers, substitute materials, customers, and regulators. As a result, engineered mineral products are becoming more like manufactured ones in terms of cost structure, differentiation, and the importance of market driven, customer specific product development. Engineered mineral products are defined as those where the costs of refining and upgrading outweigh those of conventional mining activities (blasting, crushing, classification, haulage etc.), and where close control of physical and chemical parameters is required for customers' processing and manufacturing applications. This includes industrial minerals such as calcium carbonate, kaolin, mica, specialty oxides, talc, and some metal powders. It excludes most metals and bulk commodity materials such as gypsum, lime, sulfur, and soda ash. Engineered mineral products are utilized in common household goods, and are at the forefront of industrial materials engineering in plastics, ceramics, composites, glazes, coatings, and construction materials. As a group, they introduce interesting questions to the minerals firm. Advanced materials or basic? Diversify or specialize? What are the implications of advanced materials and for mineral markets, and most importantly, where can the producer look for long-term value, volume, and profits?

Jan 1, 1993

Mineral Sands - "An Industry for the Future"The mineral sands industry is matched only by the gold industry in relation to its current buoyancy. The strong demand for the various mineral sands products, creates a positive environment in which to review the technical and commercial factors affecting the future of this industry. This conference is clearly being held in the right place at the right time.My role today is to put forward a few ideas that may help Australia to assert its rightful role as a major downstream player in an industry which it has dominated for 25 years as a raw material supplier.

Jan 1, 1986

By J. A. E. Bell

"Inco has shifted part of its traditional extractive research effort at its J..Roy Gordon Research Laboratory in Mississauga toward new, value-added products. Most of the effort is being expended on new Ni powders for batteries and new Ni-coated products which will be produced in Inco's carbonyl nickel refineries. New products under development are Ni-coated powders, Ni-coated fibres and ultra-fine Ni powders. Other new products for advanced material applications include controlled expansion composites, NiGOLD strip, Thermal barrier coatings on Inco alloys, and plasma coatings.Research and Corporate Strategic ThrustsThe newest strategic thru st of the company is to increase the value of the primary metal products. These new products are to be in addition to any new alloys or downstream alloy fabrication.Historically Inco has had the highest research expenditures in the extractive metallurgy field in North America. This has resulted in many new processes including flash smelting , matte separation, fluid bed roasting, pressure carbonyl refining and cobalt electrowinning which have contributed to establishing Inco as the lowest cost nickel producer. The recession of the 1980s caused a restructuring of Inco research and corporate goals .As shown in Figure I, from 1975-1982, i.e. pre-recession, Inco spent around 33 million dollars per year on research. Some 48070 of that sum was spent in Corporate Laboratories in Sterling Forest in the United States and in the United Kingdom , mostly on alloy associated research. A further 10% was spent on alloy research at the alloy production facilities in Hunting- ton, West Virginia, and Birmingham and Hereford in the United Kingdom. On extractive research, 13% was spent by process technology groups at the plant s, 20% at the pilot plants in Port Colborne and 9% at the J. Roy Gordon Research laboratory.The relative research expenditures (Fig. 2) have decreased so that today they are at the same level as 1975-80. The research as a per cent of sales has been cut from 2.2% to 1.2% of normalized sales. A normalized sale price of $4.00/lb Ni was used in the 1988 figures. This was partly achieved by closing Corporate Laboratories. Most of the essential alloy research was moved to producing plants and total alloy research is now 27%.A new thrust initiated in the 80s was mining research which now accounts for 20% of research expenditures. Over a period of the past five years this research has doubled the mining productivity in Inco. The pilot plant expenditures have been cut in half. One entire research station at Port Colborne was converted into a platinum group metals intermediate refinery. The decrease in pilot plant expenditures has been compensated by full scale plant trials devoted to the S02 abatement program at Sudbury."

Jan 1, 1990

By Amila Sandaruwan Ratnayake, T. Dilmi. U. Wijewardhana, H. C. S. Subasinghe

The value addition potential of ilmenite was examined using several characterization techniques. Raw ilmenite is composed of 93.65 wt.% of FeOTiO2, 3.55 wt.% of SiO2, 1.22 wt.% of Al2O3, and the remainder being other minor oxides. Ilmenite and powdered carbonized coconut shells were mixed in the weight ratio of 4:1. A separate fraction of the same mixture was added with powdered seashells in the weight ratio of 4:1:0.5. Six fractions of each mixture were distinctly milled from 1 to 6 h in a planetary ball mill. XRD spectra (broadened and diminished reflections of ilmenite) and FTIR observations (Ti―O―Cbonding) of milled samples indicate the possible incorporation of carbon into the ilmenite structure. Any clues of an occurrence of new rutile peaks were not observed in XRD spectra of milled samples. Consequently, the carbothermic reduction has not been initiated during mechanical activation. In this case, samples powdered for 6 h in a mill were isothermally annealed for 2 h under normal airflow at temperatures of 800 °C, 1000 °C, and 1200 °C, respectively. According to the X-ray diffractograms, the annealing temperatures of 1000 °C and 1200 °C exhibited almost similar trends with rutile (R), pseudobrookite (PB) and elemental iron (F), and a very few ilmenite (I) peaks. Consequently, 6 h of milling and 1000 °C annealing were concluded as the optimum conditions for the carbothermic reduction. Moreover, this study indicated seashells as a potential rate raiser for the carbothermic reduction of ilmenite at 800 °C. Therefore, this process is applicable to upgrade ilmenite into a mixture of synthetic rutile and elemental iron.

Mar 29, 2021

By Charles L. Kimbell

For 1991, the aggregate value of world international export trade in mineral commodities was roughly estimated at $685 billion in current 1991 dollars. The estimated level was about 6 % higher than that for 1990, but still more than 3 % below the record high set in 1980, and the year was the fifth in a row in which the value of exported minerals advanced. Table 8 provides a data series for the estimated value of world export trade in all mineral commodities from 1979 through 1991, as well as a breakdown of this total into fuel and non fuel commodities. The data shown are based on the historically more traditional and realistic (from the viewpoint of data availability) practice of reporting trade values for the year before the year of review. Despite the considerable increase in the dollar value of mineral commodity exports, their share of total export merchandise trade declined to 19.1 % in 1990 from 19.7% in 1989. At 19.1 %, this share was very near the recent year record low of 19.0% reached in 1988. Comparable 1991 figures were not available in time for inclusion here, but it is expected that the mineral commodity share of the total will be little altered from that of 1990.

Jan 1, 1993

By Ivette E. Torres

Table 8 provides data for the estimated value of world export trade of all mineral commodities from 1980 through 1991. It also provides a breakdown of the total into mineral fuels and non fuel minerals. These data have been developed from UN export trade data presented in table 9. The percent distribution and growth of the value of world export by major commodity groups are presented in tables 9, 10, and 11, respectively. In terms of industrial minerals (nonmetals), data in tables 10 and 11 include crude industrial minerals only, while table 8 includes an estimate for other industrial minerals. The 1991 estimates that appeared in the 1991 issues of this publication have been revised. It is typical for this section to review the year prior to the year of review because of the unavailability of data at the time of publication. The aggregated value of export trade in mineral commodities for 1992 was not available at the time of publication. The total value of nonfuel and fuel mineral exports for 1991 was about $616 billion in current (1991) dollars. The value of mineral fuel export trade accounted for about 53 % of the total mineral export trade. In 1980, the contribution of mineral fuel to the value of mineral commodity export trade had been almost 68%. The 1991 world mineral commodity export trade represents a 5.3% decrease (table 8) from that of 1990. The largest decrease was attributed to the decrease of export trade of fuel minerals (5%). The value of non fuel mineral export trade decreased by 4 %. Because the value export trade of all commodities increased by 1.2 %, the share of mineral commodities decreased from 19.2 % to 17.9 % of the total.

Jan 1, 1994

By M. H. Moys, J. A. Finch, A. R. Laplante

"A detailed review of ball milling circuit control practices in industry has been carried out. Based on fundamental process performance objectives, a standard system for base-level control of most ball mill installations is presented. This system is simple, inexpensive, and provides the major economic benefits available from contemporary automatic control technology.Value Analysis of Grinding OperationsValue analysis (or engineering, or management), originally developed by Lawrence D. Miles of the General Electric Company (1), focuses on the identification of value (product or process worth versus cost) and provides a systematic procedure for its improvement. A recent research and development project involving the application of the principles of value engineering to grinding operations has provided a basic technoeconomic model of grinding processes (2). The functional objectives of the ball milling process and the means to achieve value based grinding circuit control originate from this study.The Need for Grinding Circuit ControlThe economic effectiveness of a process is determined by the quality or value of the product and the related processing costs. If the inputs (both the raw feed and the applied processing work) are absolutely constant, the product characteristics and the process efficiency will be determined only by the engineering design. The need for and degree of process control is therefore determined by the nature of variations or upsets in the process inputs, and the extent to which these effect product value and operating costs."

Jan 1, 1988

By Orica

Unlicking the Possibilities ISEE Digital Detonator Workshop New Orleans, LA Wednesday, February 4, 2004

Jan 1, 2004

By C. Lumley

The management of the Anglo Platinum (AP) mining technical systems (MTS) embarked upon a process of defining the strategy for the MTS department. The newly established department forms part of the greater Group Information Technology (IT). The strategic process took place within an environment that had witnessed a dramatic proliferation of IT implementations across the group within the last three years. The IT department has been structured in terms of the classical plan, build and run functions with the applications and integration streams running perpendicular across these three functions. The application stream is divided into commercial and mining technical systems with business systems integration the third stream. The mining technical systems department supports mine management to effectively gather, analyse and disseminate data relating to the ore reserve by integrating a number of strategically selected IT applications to ensure that the safety, legal and operational requirements are met. This service to business is rendered by management of a strategic outsource partner via tightly controlled service level agreements (SLAs). The framework used for creating a mining technical systems department that is empowered to add value to business was formulated using the AP value chain as both the starting point and guiding process to ensure alignment to the greater internal strategy of the business. Keywords: Platinum, Mine planning, Mining technical systems, Value chain.

Jan 1, 2003

By E. Turner

This is the 3rd Paper in a series by this author, the first two being published at the two previous International Conferences. Since the Aachen Conference, Rio Tinto has carried out an extensive benchmarking exercise to see how we are positioned with respect to other leading companies (in our sector and other sectors of major economic importance). We need to be sure that Rio Tinto is at the forefront of best practises in Sustainable Development (SD) and is using the most effective tools and methods. This paper will present key findings from this work. Rio Tinto Minerals, working as representatives of IMA-Europe was a leading contributor to the European Commission DG Enterprise Voluntary Reporting Scheme for SD Indicators in the Non-Energy Extractive Industry. In Rio Tinto Minerals we have been using these SDIs in the management of our business and the paper will report on how they contribute to the management of our business and the paper will report on how they contribute to business value in: deepening customer relationships, eco-efficiency of operations, land use planning and permitting for new and expanding facilities, community relations, policy engagement with government authorities and strengthening the bond between the company and employees. We continue to support the Voluntary SDI Reporting Scheme, considering it to be important in the expanding EU and as a model for other regions globally. For example we have ore suppliers in developing countries and we use these SDIs in assisting them to better their performance, for we have an obligation to use our influence for continuous improvement. The paper will describe this work. Over the last 12 months our company has created a new Industrial Minerals unit called Rio Tinto Minerals which brings together all the borates, talc and salt operations, R&D, marketing, sales and customer care worldwide. The paper will present also the new Sustainability Policy of Rio Tinto Minerals.

Jan 1, 2007

By P. J. Le Roux

"Mining companies are under constant pressure to reduce their cost structures to sustain profitability. In mines using an open stoping mining method, dilution often has a significant effect on profitability. At Target mine in South Africa, dilution in some open stopes was found to exceed 10%, falls of ground being a major contributor to the problem. This dilution can reduce the recovered grade from 5.5 to 4.5 g/t, resulting in a potential loss of about R21 million per month based on a gold price of R240 000 per kilogram. In addition to the cost of dilution, the cost of damage to, or loss of, trackless equipment as a direct result of falls of ground in open stopes is significant. Other associated costs include transport, hoisting, secondary blasting, milling, and plant treatment of waste material. Stable open stopes are essential in order to reduce falls of ground. Back-analyses of stope instability at Target mine have indicated that conventional rock mass failure criteria are unsuitable for stope design. An alternative strain-based criterion has been developed, and has proved to be very successful, allowing the stability of open stopes to be calculated reliably. Since its implementation in 2010, dilution and equipment damage have decreased markedly, creating value for the mine. IntroductionMines that make use of an open stoping mining method aim to extract only the ore, leaving the waste behind. Many orebodies have well-defined boundaries between the ore and the waste rock. In such orebodies, the introduction of waste into the ore due to overbreak dilutes the grade. In massive disseminated orebodies, dilution is less problematic. Overblasting, falls of ground, or other causes may result in dilution. A study undertaken in Canada (Pakalnis et al., 1995) found that approximately 51% of all underground metal mines utilized open stoping mining methods and, from surveys conducted at these mines, open stoping operations experienced dilutions of up to 20%, and occasionally more. Dilution of this magnitude has a significant economic impact on any mining venture. Research carried out in Australia by Capes (2009) came to the same conclusion."

Jan 1, 2017

By Juan Camus

To understand why some companies excel in creating value, Jim Collins (2001) and a group of postgraduate business students engaged in a comprehensive, five-year research project. They examined 1,435 U.S. companies for more than 40 years, seeking those that made significant improvements in their financial performance over time. The distinctive pattern sought was: ?Fifteen-year cumulative stock returns at or below the general stock market, punctuated by a transition point, then cumulative returns at least three times the market over the next 15 years. ?The search identified 11 outperforming companies, all in different industries, that were called the ?good to great? companies. To contrast these companies with similar peers within the same industry, the search also selected a group of comparison companies that failed to make the leap from good to great. Collins then set out to examine the transition point. What distinguishing features did the good-to-great companies have that their industry counterparts did not? At the heart of the findings about these outstanding companies is what Collins refers to as the ?hedgehog concept? ? how to find the one big thing that the company must focus on. According to Collins, those who built the good-to-great companies were, to one degree or another, hedgehogs. Those who led the comparison companies tended to be foxes, never gaining the clarifying advantage of a hedgehog concept, being instead scattered, diffused and inconsistent. This insight is complemented by Peter Drucker (2004), an influential management guru, who asserts that the first question an effective executive should ask is: ?what needs to be done?? Asking this question and taking it seriously, he asserts, is crucial for managerial success; and that the answer almost always has more than one urgent task, but the effective leader only concentrates on one task. In this last respect, Drucker emphasizes: ?If they [executives] are among the sizeable minority who work best with a change of pace in the working day, they pick two tasks. I have never encountered an executive who is effective while tackling more than two tasks at a time.?

Jan 1, 2011