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By Thomas P. Bispham

INTRODUCTION From the lender's point of view, the greatest period of risk in a project financing occurs during the construction phase. Therefore, most projects are supported during this phase by completion guarantees supplied by some credit-worthy entity; for example, the project sponsors in the case of a joint venture, such as that of W.R. Grace, Hanna Mining, and Liberty Capital; or by a strong contract with a utility or foreign importer/investor, such as the way North American Coal Corporation has structured many of its transactions. THE PROJECT LOAN REQUEST A project financing is a more complex form of term loan than one using an ongoing corporation's balance sheet as a credit base and, therefore, a potential lender will subject the loan request to a more rigorous analysis. To support this effort, the financial institution will require a more detailed information memorandum to evaluate the credit and technical risks of a project - especially since much of the necessary information is not otherwise available. (See also Gibbs and Sroka paper above in this Chapter) A well-prepared information memorandum will impress prospective lenders with the planning ability and general competence of management. Also, the process of preparing the memorandum will help management understand the true extent of the opportunities and limitations of its venture. Appendix A outlines the topics which comprise a complete information memorandum for a loan request. Of some interest to those seeking to sell a currently-operating mining venture, a similar information memorandum should be prepared i.e., covering the same topics discussed here, for the investment banker to use with potential purchasers. For that purpose, though, one might not want to prepare quite as much detail as for a lender. Appendix B outlines the elements of a reserve evaluation and feasibility study, often called the "Bankable Document." Usually, these studies are prepared by independent engineering consultants for use by potential borrowers and sellers. (Potential purchasers will often contract for a similar study for their use in evaluating an acquisition.) ELEMENTS OF A LOAN INFORMATION MEMORANDUM 1. Outline: The information memorandum should begin with a one-page outline covering such topics as: a. The borrower's name, address, and phone number. b. Principal contact at the borrower. c. Amount of the proposed financing. d. Desired pricing and structure of the proposed financing. This should include a description of the amount and source of equity in the proposed financing. e. Use of the proceeds and timing. 2. Summary: The most important information contained in the memorandum should be summarized in two pages. Note - If the borrower is a recently-formed single-purpose company, then elements 3, 4, and 5 will apply to the guarantors of completion and to the project sponsors. 3. The Borrower: This section is a brief biography of the borrower including such topics as date and state of incorporation, founder(s), lines of business, etc. 4. Capitalization: The borrower's current debt and equity position, including leases and trade debt, with amounts, terms, names, and addresses enumerated. Equity owners, and percentage ownership, should be identified. 5. Historical Financial Statements: If available, a minimum of five year's worth of complete historical financial statements

Jan 1, 1985

By Reed S. C. Rogers

There is recent evidence that high frequency screening can be a viable alternative to hydrocyclone classification for a wide variety of grinding applications. However, since high frequency screening is a relatively new development, the decision to use screens generally must be based on full scale screening tests of a slurry material of interest. In this paper the authors employ mathematical simulation models as an aid to evaluating the use of screens versus hydrocyclones for closed circuit fine grinding. This approach is validated in a pilot plant study and then demonstrated for the design of full-scale grinding circuit, including classifier cost comparisons. For the case of maximum production rates versus product size, without a constraint on fine product solids densities, results indicate that screening with Derrick sandwich type cloths can give higher grinding circuit production rates with more narrowly sized products than when hydrocyclones are used. These results are explained in terms of the bypass and Sharpness Index of the respective classifier partition curves. Classifier cost comparisons for the full scale circuit show that although the installed cost of screens is substantially higher than equivalent capacity hydrocylone operations, even modest increases in circuit capacity caused by screens; can significantly reduce total grinding costs.

Jan 1, 1985

Alluvial gold grades are typically highly erratic. It is very often difficult to establish with confidence the in situ grades of reserve blocks due to the small number of pit or drill hole samples available, and their erratic values. Trends in grade are often obscure. Geostatical methods are inappropriate due to the extreme nugget effect found in alluvial gold field data. Classical statistics appear more suited to such data but require assumptions to be made regarding the nature of the population sampled. Recent developments in computer intensive non-parametric statistical methods provide a new approach to dealing with some of the above problems. These methods avoid making assumptions about the type of population distribution, usually through some kind of re-sampling scheme. The bootstrap procedure involves taking the estimate of interest and synthesising its population of by re-sampling the original data a large number of times (1000+), at random and with replacement. The synthetic population is then used to draw conclusions about the likely behaviour of the true population.

Jan 1, 1985

By C. Richard Tinsley, Norman Miskelly, S. James Hodge

Construction of the Ranger uranium project, located 230 kms east of Darwin in the Northern Territory, Australia, commenced in January 1979. Energy Resources of Australia Ltd (ERA) was incorporated in February 1980 to acquire all the rights in the project. The total cost to ERA of these rights was A$407 million, made up of A$125 million in cash to the Federal Government and the issue of 125 million A$1.00 shares at par, plus a payment of A$16 million in cash to each of Peko-Wallsend Ltd. (Peko) and EZ Industries Ltd. (EZ). ERA's cash requirements to complete the project were estimated in October 1980 to be A$553 million. Project loans, secured by first ranking debenture stock, were arranged for a total of US$390 million, while second-ranking debenture loans totalling A$60 million were [ ] obtained from the vendors, Peko and EZ. Overseas participants (power utilities who had agreed to purchase uranium yellowcake under contract) arranged to take up 25% of the equity capital for A$102.5 million; Peko and EZ were allotted 30.5% each as satisfaction of vendors' consideration; and 14% representing A$57.5 million was issued to Australian residents in an underwritten public flotation in November, 1980. The loan and equity financing arrangements required the successful resolution of many complex and interlocking factors, including technical and economic feasibility, agreement with Aboriginal interests, compliance with Government policies, and securing of sales contracts.

Jan 1, 1985

By Robert W. Row

Advanced physical coal cleaning processes that are now under development may remove significantly greater fractions of pyritic sulfur and ash than do commercial coal cleaning processes at comparable heating value recoveries. These processes may be useful for reducing sulfur dioxide emissions from electric utilities and other emission sources. However, little work has been done to determine their applicability to any major coal market. The northeastern states of the United States are interested in burning more coal, but with further sulfur dioxide emission restrictions. Their nearest coal sources are relatively high sulfur Northern Appalachian coals. The project discussed in this paper, which is scheduled to be completed in June 1985, has the objective of technically and economically evaluating various coal supply scenarios involving five selected advanced physical coal cleaning processes; and comparing the economics of them with alternative fuel supply options open to the northeastern users.

Jan 1, 1985

By L. A. Vermeulen

A simple argument shows that it is impossible for the flight of a rod in contact with a litter bar in a rotary mill to be initiated at that point on the upside of mill rotation when all the forces acting on the rod are in equilibrium. The argument was confirmed experimentally in a study showing that the lift of litter bars is a function of their height, that the rod velocity at the point of departure has a significant radial component, and that the subsequent flight of a rod is along a parabolic trajectory as predicted by elementary mechanics. A quantitative account of the observed effects, which is based on a dynamic theory of the sliding interaction between rods and litter bars, revealed interesting properties of the motions of rods down the surfaces of litter bars when the latter are in uniform circular motion during the rotation of a mill.

Jan 1, 1985

By D. M. Stephens

Feeder-Breakers were an unknown but much needed piece of machinery when U. S. underground coal mines started converting to more efficient belt haulage of the R.O.M. coal as compared to conventional methods that the 1950's offered. These simple electromechanical machines offered efficiencies in three areas: (1) they contained a surge hopper that allowed a "load' of coal to be dumped without delay; (2) this material was fed horizontally by a drag chain conveyor into a rotating carbide pick breaker that broke all oversize material into a beltable size, and (3) it fed this broken material onto the belt conveyor at a rate conducive to its design. Since its introduction, the Feeder-Breaker has evolved from that first low capacity, low breaking force machine to today's model capable of breaking materials up to 5 MOHS in hardness and having throughput capabilities exceeding 3,000 TPH with availability in the 90 percentiles.

Jan 1, 1985

By J S. Gozon, R R. Britton

Various methods have been proposed over the past two decades to predict the borehole pressure in decoupled boreholes. In an effort to establish which characteristics best accomodate present day explosive effectiveness, a comparision has been made between two explosives. The first displays high detonation characteristics while the second produces gases which continue to fill the borehole and radial cracks for relatively long periods of time.

Jan 1, 1985

By David A. Newman

The Geomechanics Classification (Bieniawski, 1979) was modified for entry and roof support design in underground room-and-pillar coal mines. Adjustment multipliers were introduced to incorporate the influence of strata weatherability, high horizontal stresses, and the roof support reinforcement factor into the existing classification system. Sixty-two case histories of both standing and fallen mine roof were collected from two mines in the northern Appalachian coalfield. Twenty-seven engineering and geologic parameters were recorded for each case. A partial correlation analysis was carried out on the cases to establish which parameters have a significant impact upon the supported stand-up time of coal mine roof. Survival analysis, a statistical technique used in medical research to assess the effect of a drug or treatment on a patient's life expectancy, was conducted together with stepwise multiple regression to derive values for the adjustment multipliers. A practical example is included to illustrate the application of the modified Geomechanics Classification to underground coal mine design.

Jan 1, 1985

By J. E. Schiller, S. E. Khalafalla

To improve technology for treating process water, US Bureau of Mines research has shown that magnesium oxide (MgO) has many advantages over lime or caustic soda for precipitating heavy metals. Sludge produced by MgO occupies only 0.2-0.3 times as much volume as the precipitate made wing a soluble base. While a settled, lime-formed precipitate is easily resuspended, the MgO-metal hydroxide sludge becomes cemented together on standing. Settling of the metal hydroxides from a dilute suspension is more complete than precipitates formed with other bases. Virtually any metal that can be precipitated by raising the pH can be treated using MgO. A three fold to fourfold stoichiometric excess of solid reagent is added. The mixture is reacted for five to 10 minutes. Polymer is added, and settling or filtration completes the process. Because of the greater cost of MgO compared with lime, large-scale practice of this technology will probably be limited to water containing 50 mg/L (3 gr per gal) or less of dissolved metals. For such dilute solutions, chemicals are not a large fraction of total treatment costs, so more desirable sludge properties might justify higher chemical expenses. While the MgO process is technically suitable for widespread application, the extent to which it is adopted will probably be determined by a trade-off between the greater cost of MgO compared with lime and the superior properties of the precipitates and their corresponding ultimate disposal costs.

Jan 1, 1985

By C. O. Beale

This, the second and final part of a review on the subject(the first part was published in the March issue of this Jouma/), deals in detail with the 9 copper-producing companies in the Republic of South Africa. These are The Phosphate Development Corporation, Prieska Copper Mines (Pty) Ltd, Black Mountain Mineral Development Co. (Pty) Ltd, Rustenburg Platinum Holdings Ltd, Impala Platinum Holdings Ltd, Western Platinum Ltd, The O'okiep Copper Co. Ltd, Messina Ltd, and Palabora Mining Co. Ltd. The following are described for each company: background, development, geology, mining, concentration, and current situation. The last-mentioned company, being South Africa's largest producer, is dealt with in greatest detail.

Jan 1, 1985

By Timothy P. Smirnoff, Tracy K. Lundin

INTRODUCTION The City of Phoenix, Arizona is located in the Phoenix Basin watershed which is prone to flash flooding several times each year. The runoff from these storms moves from the mountains in the north to the Salt River in the south. An extension of Interstate Highway 10 (1-10) will pass through the city east to west to form an Inner Loop through the downtown business district. PROJECT DESCRIPTION The I-10 Inner Loop extension will be a depressed roadway which would intercept the surface drainage of the Phoenix Basin and separate the watershed into two regions. To prevent flooding of the depressed roadway, runoff storm water collected from the northern half of the drainage area will be conveyed beneath the roadway to its natural outlet at the Salt River. A conveyance system composed of pressure tunnels beneath the city, shown in Figure 1, was proposed to achieve this goal . Table A presents the prominent features of each of the tunnels. This paper will describe geologic and engineering parameters specific to Phoenix which were used in the design of a series of tunnels to convey storm water from the I-10 Inner Loop to the Salt River. The design of tunnel initial and final support is described along with support and construction methods used by the Contractor.

Jan 1, 1985

By P. Campbell, E. M. Gardy, L. Hachkowski

Introduction The efficient process control of a uranium mill and its associated mining operation requires a nearly continuous knowledge of the uranium concentration in the ore. Generally, the approach is to use laboratory assays of grab samples from the mill feed belt. In some cases, elaborate and expensive systems have been used to ensure random sampling, but even with these systems, mass-balance discrepancies still exist. There is a requirement for an on-line instrument that can give a prompt, accurate analysis of a large portion of the feed stock. The authors have recently evaluated a laboratory system that achieves these goals using neutron activation and delayed neutron counting. The development of the on-line uranium ore analyzer is a consequence of previous work done at the Whiteshell Nuclear Research Establishment (WNRE) (Campbell et al., 1978 and 1981), and is based on the emission of delayed neutrons after the neutron irradiation of fissionable materials. The mechanism of delayed neutron emission has been described (Keepin, 1965), but briefly is as follows. The fission fragments resulting from irradiation are in an excited state. Certain of these delayed fission products, precursors, decay to a more stable state by the emission of a delayed neutron. The delayed neutrons can be divided into six groups with effective half-lives ranging from 0.2-55 sec. It is important to note that more than 50% of the delayed neutrons are emitted within the first 6 sec after irradiation; this has an influence on the design of the analysis instrument. Measurement Cycle The measurement cycle involves a neutron irradiation, a delay time, and a counting period. The laboratory demonstration model of the ore analyzer comprises a californium-252 neutron source, a source chamber, a pneumatic transfer facility, and a neutron irradiation and counting module [(Fig. 1)]. The ore sample is placed in the irradiation chamber. The neutron source is transferred to the center of the chamber for a 5-sec irradiation while the helium-3 thermal neutron detectors are switched off. As the source returns to the storage chamber, the detectors are switched on and the delayed neutrons counted. The total assay cycle is 16 sec. The current instrument design calls for the ore to be cut from the main belt every 16 sec by a mechanical arm and dropped into the analyzer directly, or via another belt. The cycle starts when there is a sufficient mass of ore in the irradiation chamber to depress a switch and stops when the delayed neutron count is finished. The ore is then dropped through the bottom of the analyzer chamber and returned to the main belt. The counts from each cycle are accumulated and the data reduced to give the desired information.

Jan 1, 1985

By T. K. McCranie, A. H. Tousley, A. H. Kackman, L. R. Gregory, A. Jr. McElrath, R. J. Krekel

In Roman and earlier civilizations the term cement was applied only to mixtures of lime, pozzolana, sand, water, etc., used as a mortar to bind larger stones. Today, portland cement, the subject of this section, can be briefly defined as follows: The product obtained by finely grinding clinker produced by calcining to incipient fusion (i.e., sintering) an intimate and properly proportioned mixture of argillaceous and calcareous materials. History The Egyptians were probably the first to join building stones with a mixture of sand and a cementitious material (i.e., having the property of or acting like cement). It is generally accepted that the cement used by the Egyptians on such structures as the Great Pyramid was calcined gypsum, Later the Greeks began to calcine limestone for use as a mortar with sand and water. Still later, broken brick and tile were added to the mortar to make the first concrete. The Greeks and Romans found that some sands produced mortars that were especially resistant to the action of water. Hydraulic (i.e., underwater-hardening) cements formed by combining slaked lime, water, and finely divided siliceous materials (e.g., pozzolana) possess superior strength and are capable of resisting the destructive action of water. They were used on the Pantheon, Colosseum, and other structures, some of which are still standing. In 1756 an English engineer, John Smeaton, found that an argillaceous limestone (i.e., containing an appreciable amount of clay as an impurity) produced a cement with greater resistance to the action of water. Despite Smeaton's findings, the use of the old mixture of lime and pozzolana long retained its popularity. Significant contributions in cement technology from England, Swe¬den, France, and Holland were made in the next 68 years. However, the invention of portland cement is generally credited to Joseph Aspdin, an Englishman, who in 1824 patented "portland cement." The name was selected because, on hardening, it resembled the natural building stone from the Isle of Portland, England. The patent features mixing ground limestone and argillaceous materials in appropriate proportions and calcining (i.e., expelling CO2 by roasting) the mixture. This superseded the existing practice of calcining naturally occurring argillaceous limestone. In about 1845 Isaac Johnson, also English, conducted experiments on proportioning the components and calcining them at higher tem¬peratures. His accomplishments are accepted as the beginning of the present-day portland cement industry. The U.S. cement industry originated with the demand for good hydraulic cement for building structures such as the Erie Canal, which was started in 1817. The first discovery of cement rock (i.e., naturally occurring argillaceous limestone with near-optimum ratios of calcium carbonate, alumina, and silica) near Fayetteville, N.Y., was made by C. White. In 1818, White secured a patent for the manufacture of natural cement from that deposit. Subsequently, several natural cement plants were built in 1830-1840 at Rosendale, N.Y., and in the Lehigh Valley of Pennsylvania. David Saylor, who participated in establishing a natural cement plant at Coplay, Pa., in 1850 discovered that a superior cement could be produced by calcining the rock at higher temperatures than hith¬erto. In 1871, Saylor obtained a patent and commenced the manufac¬ture of portland cement. By 1890, there were 17 portland cement plants in the United States with a combined annual output of 62,300 tons. At the end of 1970, the number of plants producing portland cement in the United States (including Puerto Rico) was 169, down from a maximum of 185 in 1967, with total annual shipments of 73.4 million tons valued at $1,298 million. (Fig. 1). In 1970, annual world production of hydraulic cement (which includes pozzolanic materials, hydraulic limes, natural cement, alumina cement, and portland cement, all of which are in current use in various parts of the world) reached 630 million tons (Table 1). Flowsheets of typical U.S. cement plants are shown in Chapter 13. Chemical Composition and Physical Properties It is generally accepted that portland cement clinker consists of a mixture of compounds or synthetic minerals. The four principal compounds are:

Jan 1, 1985

By T. C. Bibb

Longwalls using shearers in seam heights of less than 1.2 m (48 inches) are relatively rare in the U.S. Westmoreland Coal Company is currently operating a shearer-equipped longwall at a cutting height of 1.17 m (46 inches) in its Bullitt Mine. This face has averaged 2795 metric tons/day of operation since its startup on April 3, 1984. Longwall productivity in thin seams is substantially impacted by equipment reliability and availability of useable working room for travel and access. This paper addresses the design criteria used in selecting this face equipment, with the goal of maximizing these two parameters. Equipment discussed includes shearers. face conveyor, shields, stageloader, and emulsion system.

Jan 1, 1985

By T. E. Kobrick

When Ralph Banks called and asked if I would agree to present a paper on environmental health in the coal industry, I was reluctant because I have not been actively involved in coal mine dust control on a day-to-day basis for a number of years. Ralph reminded me that I am one of the few industry people with an industrial health background who remembers the pre-1969 Federal Coal Mine Health and Safety era. This marks the second time within the past year that I have had a similar request based on the same basic reasons. While I was pleased to have been remembered, I'm beginning to feel like the football player who has played one too many games. In responding to Ralph's request to present an overview of the past, present and future of environmental health in the coal industry, I have attempted to take the broad approach of someone who, having been intimately involved in an area of endeavor for a number of years and then leaves, has an opportunity to revisit that area at a later date to see what has changed and what remains the same, what have been the successes and the failures. Since none of us can foresee the future, trying to project too far ahead is fraught with frivolity, except that unless one is foolish enough to accept a future invitation to review those predictions compared to actual events, no one will recall how accurate or inaccurate those projections might have been. I can assure you that I will not ask to accept that challenge, so you can rest comfortably that five years from today you will not be asked to sit through a similar presentation by me - and that's a promise.

Jan 1, 1985

By Doyle P, Mulroney D

The Cassidy Shaft was sunk to access the Mount Charlotte and Reward Orebodies below the Flanagan Fault. The 1,184m deep shaft is concrete lined to 6.5m diameter for its full depth. The initial 590m was excavated by stripping into a 1.8m diameter borehole and hoisting the broken material through the existing mine. The remaining 594m was excavated by conventional shaft sinking methods. The shaft was sunk through 3 existing plats and an additional 8 plats cut. 1,800 tonnes of steel and 8 cables were installed during the furnishing of the 4 compartments.

Jan 1, 1985

By H. W. Schreiber, H. R. Babitzke, R. E. Rodriquez, Patterson J. A., C. D. Masters, J. J. Schanz, R. B. McCammon, E. A. Noble, P. M. Krishna

A five-year effort by the ASTM subcommittee E10.14 on uranium resource evaluation has culminated in the approval of E901-82, Classification System for Uranium Resources (ASTM Standard E901-82, April 1983). The standard classification was prepared with participation of representatives from the US Department of Energy, the US Department of Interior's Geological Survey and Bureau Mines, utilities, and consultants. The classification a resource is based on level of knowledge and the economic producibility of the resource at a given time. Alphanumeric identifiers are used rather than words to avoid confusion with existing terms, definitions, and classifications. An example demonstrates the dynamic nature of the process of classification and attests to the necessity of addressing both the aggregate needs of broad-scale resource planning and the specific needs of individual property evaluation. Problems that remain infixing the classification a given uranium resource include uncertainty in estimating the quantity of undiscovered resources and resolving differences that may exist in deciding when the drill-hole spacing is adequate to determine the tonnage and grade of discovered resources.

Jan 1, 1985

By Leo L. Van Sambeek

An understanding of the creep and yield behavior of salt is required for the rock mechanics design aspects of solution mining. Most previous studies of salt behavior have been performed on small specimens of salt under homogeneous stress conditions; i.e., uniaxial and triaxial tests on specimens <0.002 m3. The corejacking test is a larger scale test (-0.75 m3) with inhomogeneous stress conditions that provides data on the structural response of salt. Interpretation of the responses from eight such corejacking tests provides verification of the requisite constitutive parameters required to predict salt behavior at different levels of stress and temperature. These constitutive parameters are not those studied in the usual laboratory test. Corejacking test results show almost inseparable elastic and plastic closures simultaneous with the corejack pressurization. Very rapid closure (on a relative basis) continues for a period of time after the pressurization. This rapid closure is shown to be both continuing yield deformation and creep deformation. After the period of rapid closure, the closure rate approaches a constant value. Numerical modeling of the corejack tests using a creep law containing both transient and steady-state creep functions does not provide results that agree with the responses measured in the corejack tests. Using an experimental design technique plus additional numerical modeling that includes yielding of the salt, results in identification of the significant parameters which allow agreement. The significance of the results from the study is demonstrated by comparing the postulated stability and creep response of a solution-mined cavern using the previous understanding of salt behavior and the understanding developed from this study.

Jan 1, 1985

By Thad M. Jones

This paper considers the sampling, digitizing and reconstruction of seismic signals. A sampling frequency range is proposed and a minimum limit is suggested. Digitizing precision criteria for both peak velocity and analysis applications are given. Several methods for reconstructing signals from sampled data are presented.

Jan 1, 1985