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By D. W. Loughridge

INTRODUCTION Raising capital in the 1990s is a timely subject. However, many of us thought why should raising capital in the 1990s prove to be unlike it was in the 19805, the 1970s, the 1%0s, or earlier? There are a lot of creative people in banking and in corporate treasury departments. New tools and techniques are continuing to emerge, many of which are discussed in other papers in this book. While we have new financing tools at our disposal, the underlying issue has not changed. Projects and investments must be judged on their own merits. If they cannot be justified by conventional financial analysis, they should not be built. If they can be justified, it is likely that the financing will be available. The challenges faced in raising capital in this decade will persist to the next. The issues of the 1980s -- currency fluctuation, disruptive merger and acquisition activity, commodity price volatility, political risk, and debt crisis -- will all persist in an increasingly international business environment. I will focus on the financing we have just completed for the Escondida Copper Project in Chile. The Escondida financing is structured along the classic project financing model developed in the late 1970s, but it deals with issues of the 1980s and the 1990s. The financing was intriguing, not just because of the technical issues involved, but also the challenge of reaching an agreement in a large and diverse group. Escondida had the one essential feature that made its financing possible. It was commercially very attractive. It would produce at low cost a commodity (copper concentrates) that direct consumers felt would be in tight supply. The project had the direct support not only of its sponsors, but also its customers, and, very importantly, its host government. The non- recourse financing of Escondida would not have been possible without the support of these parties, and without the robust economics that made this effort worthwhile. The issue was more complicated. Operations in all parts of the world entail some political exposure. This project is in Chile, where there was a constitutional requirement that a plebescite be held when the project would be in its early stages. This plebescite would determine the fate of a 15 year old military dictatorship. The project is copper, a commodity generally deemed to be in surplus. Copper has a history of price volatility (whose price has varied from $.58 to $1.53 per pound over the past two years). It is politically sensitive, not only in Chile, but in the United States, Canada and other developed countries. The project is international, with all the problems of dealing with a variety of currencies, a variety of cultures, and a variety of laws and commercial practices. The project is also large and capital intensive, with a total cost of U.S. $1.1 billion. ESCONDIDA PROJECT Escondida, the largest known copper ore body in the world, was discovered in March of 1981, by Utah International in a joint venture with Getty Oil Company. In 1984, both Utah and Getty were involved in ownership changes, Utah being acquired by BHP. A later restructuring of the ownership of Escondida resulted in BHP, as manager, carrying a 60% interest, Rio Tinto-Zinc Corporation (RTZ) 30%, and a consortium of Japanese companies led by Mitsubishi Corporation with 10%. The Japanese consortium is incorporated as JECO (Japan Escondida Corporation). This ownership structure, which spread ownership around the world, was the first tangible step toward managing both the commercial and political risk associated with the project.

Jan 1, 1990

Provide a means for reliable in situ stress change measurements in soft, friable geologic materials under high stress. Background Effective mine design requires a knowledge of changes in rock stress generated by a mining operation. In situ stress measurement can provide a means of obtaining this knowledge from an active mine for the ultimate purpose of design verification and analysis. The Bureau of Mines has designed and tested a device for measuring changes in rock stress-the borehole platened flatjack (BPF). It has found application in investigating stress anomalies due to geologic structures, stress concentrations from multiple seam interaction, and stress abutments from pillar retreat and longwall mining.

Jan 1, 1990

By J. Rastas

The recovery of lead, silver and gold from existing and potential zinc process residues using a sulfidization-flotation method was investigated on a laboratory scale. The following residues were tested: neutral leach residue, high acid leach residue, and hematite residues. The sulfidization of lead and silver is carried out at low pH by the addition of a stoichiometric amount of sulfide at a controlled rate. To increase the particle size of the sulfides, seeding with synthetic lead and silver sulfides -is employed. The flotation is carried out at pH 2-4 using low pH-collectors such as dithiophosphates and dithiophosphinates. Special attention must be paid to the role of oxygen in the conditioning stage. The effect of different parameters on both the sulfidization and the flotation has been evaluated. Recoveries of 85-90, 90-95 and about 80 % were obtained for lead, silver and gold, respectively. Typically, concentrates containing 50-60 % lead, 3-5 kg/t silver and 10-15 git gold were produced.

Jan 1, 1990

By Lynn B. Hales, John A. Herbst, Thomas L. Gabardi

A system for a continuous determination of the charge volume of grinding media in ball mills and SAG mills has been developed. The system, comprised of a unique measurement device and a model based Kalman filter algorithm, determines grinding media level within a mill and calculates media and liner wear rates. The signal from an instrumented washer mounted on the exterior of the mill shell is used to provide the measurement that, along with mill power and on-line models for media mechanics, result in estimates of mill parameters that can be used in media addition control strategies. Data are presented for a 12.5 x 15 ft. ball mill.

Jan 1, 1990

By A. S. Ibrado, D. W. Fuerstenau

The adsorption of the cyano complexes of Ag(I). Cu(l), Hg(II), Cd(II), and Zn(II) on activated carbon was investigated as a function of pH and correlated with the speciation diagram for each metal. The results show marked changes in uptake with pH, closely resembling the predominance profiles of their neutral and singly charged cyano complexes. Multicharged negative complexes are repelledby the negatively charged carbon surface. The sensitivity of activated carbon to the charge of the adsorbing species indicates that silver adsorbs as an anion, not chemically bound to the coadsorbing counterions. For the same reason, activated carbon is selective to metals that preferentially form neutral and singly charged cyano complexes, namely gold and silver.

Jan 1, 1990

By George H. Schnakenberg

The application of automation and robotic technologies to coal mining equipment at the face offers improvements in worker safety and efficiency. The evolutionary introduction of autonomous, intelligent machines to perform the most hazardous tasks in underground coal mines may become a reality within the next 10 to 15 years. The US Bureau of Mines Advanced Mining Systems research program is developing the technology necessary to achieve this goal. This program consists of both core and applications re¬search that focus on the fundamental issues of sensor-based, computer-assisted, machine control technology. In the near term, the research is directed specifically to the computer-assisted control of present-day underground equipment. The immediate effect will be relocating equipment operators to a nearby area of safety. It is being performed in a manner that can make incremental improvements in safety and efficiency. The research is being performed closely with private, government and academic researchers in the miring, space, armed forces and factory automation and robotics research areas. It is a mixture of basic research, applied research and the application and adaptation of existing technologies from a multitude of sources.

Jan 1, 1990

By Whiteley M, Robinson T, Vernon B

The Western Australian gold industry has approximately 100 operating plants, mainly CIP/CIL. The nature of the State's rapidly expanding gold industry gave rise to concerns over management of the cyanide hazard, in that most plants are remote from major population centres, have a workforce with a high turn over and use highly saline process water. Approximately 4,500 workers in the industry have the potential to be exposed to cyanide in the course of their normal work.This paper outlines the risk management strategy developed by Government and industry to monitor atmospheric HCN gas in the work environment and the role of continuing education and training along with regular site inspections by Department of Mines Inspectors.

Jan 1, 1990

By M. Zaki Rashad

In this paper, if three slant distances are measured from three given points of known coordinates to an unknown point, the position of this point (X, Y, and Z coordinates) can be determined. A computer program was designed for observing the movement of a point in the roof in Abu-Tartour mine (western desert, Egypt) to measure the convergence. This method, for general using, is very fast and can be applied without any restrictions.

Jan 1, 1990

By Harleigh V. S. Tingley

Investment in the mining industry has increased substantially throughout the world in recent years. So have acquisitions, divestitures, and financial restructurings. The return of outside investors to the industry is welcomed. The trend toward stockholder litigation is not so welcomed. Both have provided the impetus for commissioning outside professional due diligence studies of potential minerals transactions. For a number of reasons, some unique to the industry, evaluation of mining investments is a challenging task for the investor. Investments in exploration prospects and undeveloped properties have a high speculative content. Buyers pay for uncertain future prospects. Alternatively, most developed mining investments are large and long-lived and cannot easily be modified during that life. Even so, to be successful, they must compete in an environment in which their reserves - the source of their profits - are often imperfectly known. And markets, competition, technology, and politics are among the many continually changing factors that affect investment performance. Minerals investment evaluation is further complicated because each minerals investment has its own singular combination of risks and opportunities. Each ore type and each ore body presents different problems in reserve evaluation, mining, and extraction. Each minesite has its own often unique combination of mine, infrastructure, political, environmental, and other risks. And the key requirements for commercial success differ substantially among various minerals.

Jan 1, 1990

This paper describes the new legislative regime that will apply to the regulation of the minerals industry in New Zealand. The reform of New ZealandÆs minerals legislation was initiated in January 1988 when the Minister for the Environment, Rt Hon Geoffrey Palmer, announced the Governments intention to review all the major laws governing New ZealandÆs resources. The Resource Management Bill is scheduled for introduction to the House in December 1989 and its date of enactment is scheduled for June 1990. With some matters still to be determined (at the time of writing), this paper cannot be a definitive review and description of the new legislation, it is instead an attempt to outline the major features of the Bill, to date, that are seen as important to the mining industry.

Jan 1, 1990

The richer, shallower sapphire deposits of the New England region of New South Wales which have been traditionally mined by the small miner are almost worked out. Larger mining and exploration companies are replacing the small miner and exploring for the primary source of sapphire or lower grade alluvial deposits.   Although in recent years considerable exploration effort has been directed at locating the primary source, commercial exploitation of sapphire is still restricted to the working of alluvial deposits.   If the Australian industry is to compete against Asian and African producers it must use cost effective exploration, mining) processing and marketing methods.

Jan 1, 1990

The Adavale Basin and Warrabin Trough are remnants of a much more extensive Devonian to Carboniferous depression which evolved through four tectonic stages; an initial period of rifting and three periods of foreland thrusting, which cannibalized much of the earlier depression. The Basin has subsequently been buried by sediments of the Galilee and Eromanga Basins.The Basin was initiated during the Early Devonian when the earlier cratonized Thompson Foldbelt rifted away to form a marginal sea comparable to the South China sea. This crustal extension was probably in a Northeast-Southwest direction. These initial rifts were the site of acid volcanism (Gumbarbo Formation) and later, deltaic and shallow marine facies (Eastwood Beds).

Jan 1, 1990

Carbon-concentration Meter The latest of these, the ultrasound-based carbon concentration meter, was developed by Mintek with original sponsorship by the Chamber of Mines Research Organization, and is now being manufactured and marketed worldwide by Debex Electronics in Johannesburg. Testing of detonators* The Chief Mining Engineer has asked the South African Bureau of Standards to monitor locally manufactured, as well as imported, detonators. This could ensure greater safety in fiery mines.

Jan 1, 1990

By Geff Gordon, Dale Nies

Small diameter borehole blasting can be very efficient and cost effective. As residential development continues to expand, many areas are now requiring blasting for site preparation and upgrading old utility systems or constructing new ones.

Jan 1, 1990

By H. Dho

The role of sodium silicate in the anionic flotation of a Florida phosphate ore was investigated using laboratory continuous flotation tests, frothability tests and SEM observations. In the absence of sodium silicate, Ca++ promoted the unwanted activation of quartz by forming calcium bearing precipitates. The addition of sodium silicate enhanced the flotation efficiency through: (1) the removal of impurity minerals and calcium-bearing. precipitates from quartz surfaces by dispersion, (2) drier and more persistent froths stabilized by oily droplets containing calcium silicate precipitates, and (3) higher specific flotation rates of phosphate relative to quartz, leading to faster flotation rates and increased selectivity of separation.

Jan 1, 1990

By James J. Anderson

In this talk I will report on an effort to reassess the risk of pile driving to juvenile salmonids migrating through Puget Sound. The study was motivated by the concern of the construction industry that provisions restricting pile driving during the spring migration is resulting in an unbalanced burden to the industry. In simple terms the industry wants to know if some construction can be conducted in the spring without harming the juvenile fish. Fisheries agencies have agreed to reconsider their regulations in the context of additional studies. So, in this talk I will present some thoughts on risk assessment in general and the results of our study to assess the impact of pile driving on Snohomish River juvenile pink and chum salmon that migrate through the Navy Homeport construction site at Everett. The research, which is being carried out by the Fisheries Research Institute at the University of Washington, was planned and is supported in a joint effort including: the Washington Department Fisheries, National Marine Fisheries Services, U.S. Fish and Wildlife Service; General, Manson, and Hurlen construction companies, the Department of Transportation and a number of Puget Sound ports authorities. I will first briefly discuss the early life history of the juvenile salmon the regulations are designed to protect Second, I will outline the legal criteria required for risk regulation and some specific thoughts on how a reassessment of pile driving risk might be approached. With this basis I will report on our research and how it can be applied to a new risk assessment.

Jan 1, 1990

By Robert M. St. Louis, Janet M. Edgecombe

The Mercur Mine's autoclave is an alkaline pressure oxidation system, operating at 220°(428°F) and 3061 kPa (444 psig) (total). Up to 725 metric tons (800 st) of ore, grading 2.02 g per mt (0.059 oz/st) Au and containing 1 to 2% sulfide sulfur, are treated daily in this circuit. A mineralogical and chemical investigation was initiated to locate the cause of lower than anticipated gold recoveries. Greater than 70 wt. % of reduced sulfur is oxidized; therefore, the autoclave is operating at specification. The low recoveries were attributed to increased concentrations of organic carbon in refractory ore. Activated carbon concentration in the attached CIL circuit was increased from 15 to 40 g per 1, leach temperature held below 21°C (70°F), and carbon flow changed to counterflow. These measures resulted in gold recovery improving from 75 to 82%.

Jan 1, 1990

By Patricia Mendoza Watson, Lundquist Robert G

The velocity with which the burden moves after blasting is of concern for safety and economic reasons. Models developed for motion velocity by various researchers were reviewed and likely model parameters were used to develop statistically significant models. Regression analysis and residual analysis were used to determine the model coefficients and the accuracy of the models.

Jan 1, 1990

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 Gray J, Krouse HR, Changkakoti A, Morton RD

A group of stratabound-stratiform Fe-Ba-Zn-Pb-Ag deposits within the La Minita mining district of Michoacan, southwest Mexico have been investigated. The results of the study show that these deposits were generated around submarine hot-springs issuing in a Cretaceous island-arc environment. The exhalative mineralization, which is both epigenetic and syngenetic in character, was developed above fault-systems which constituted the loci of both volcanism and subsequent hydrothermal systems.Fluid inclusion data suggest two hydrothermal events during ore mineralization, one at 240¦C and the other at 161 to 205¦C, with salinities between 2.1 and 12.8 wt.% NaCl equivalent. Stable isotope data support a marine origin for the ore-fluids, as well as, for carbon and sulfur. Strontium isotope data suggest that Sr in the barites was extracted from the volcanics and limestones by circulating seawater. The ore-depositional environment was one of shallow, sub-tropical marine character, where mineralization was in part geochemically controlled by carbonate reefal facies within the volcanic/pyroclastic suite.

Jan 1, 1990