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By Karl J. C. Harries

"11.1. INTRODUCTIONA royalty is the most common form of interest retained by an owner who is disposing of his property or by a joint venturer who ceases, voluntarily or otherwise, to participate in the joint venture.1 Rarely does a non-participating party have a direct interest in the property and/or assets of a project, except during the period when a non-participating joint venturer may be having his interest diluted.2 In fact, it is most unwise to permit a non-participating party to have such an interest. It may give rise to significant problems that could prevent or substantially delay the development of an orebody and require a considerable amount of time, effort, and money to correct.3In negotiating a royalty, it is important to be aware that there is no law or convention that says, “You just don’t do that in a royalty agreement.” As with any agreement, inventiveness and flexibility on the part of the negotiator are not just assets, but virtual necessities. It is also for this reason that it is essential to read the royalty provisions, particularly the definitions, fully and carefully, especially if you are the recipient. On the other hand, if your inventiveness and flexibility cause your accountant to question the advisability of one of your ideas, pay close attention to him.4 He will, no doubt, have had experience with many royalties, and no competent professional adviser disparages a client’s ideas without good reason. Besides, he will probably be the person who will be determining the royalty or certifying the determination of it. At the very least, he will be auditing your general financial statements, which must, of course, reflect the royalty determination. Heeding his advice not only may make the determination easier but also will probably save you money in professional fees later on. Nevertheless, do not simply accept his comments or recommendations without understanding what they mean, why they have been made with respect to your royalty agreement (sometimes professionals have comments that they make as a matter of course and, even though they may be valid, you should require them to be justified to you), and how they will affect your royalty determination.It is surprising how many corporate payors insist that their standard royalty provisions5 be used as a matter of policy, thereby effectively tying the negotiator’s hands. It is even more surprising, and to professional advisers frightening, how many of the senior employees who insist that such a policy be adhered to, virtually without variation, do not know what is in the standard provisions and would be hard-pressed to explain them to a property owner. If standard provisions are appropriate, by all means use them, but do allow experienced and sensible negotiators some flexibility and make sure that everyone within the corporation who may have to use such provisions – negotiator and supervisor alike – knows what they contain and why they are as they are. For example, there are often good and convincing reasons to describe a deduction in a certain way or to include a certain specific type of deduction. On the other hand, quite often the answer to the question “why?” is that “it has always been there”; this is, or should be, an unacceptable answer. In any event, if you, as the negotiator, appear to know what you are talking about, are familiar and comfortable with your royalty provisions, and are backed up by your boss with the same words or reasoning, a property owner cannot help but be satisfied that you are knowledgeable, even if he still does not agree with your provisions. Finally, if you do use standard provisions, make sure that they are reviewed and updated regularly."

Jan 1, 2003

By Yoshihiko Maeda

It is said that the 21st century will be an era of the remedy of the global environment. In order to reserve natural resources for the future and to avoid the dispersion of heavy metals after usage and to avoid pollution problems, it is extremely important to recycle heavy metals as much as possible by reasonable recovery procedures. The nonferrous metal industry is expected to play a important role in the recycling of heavy metals that are originally their products. From the depressed metal price experienced in Japan in 1980'h due to the sudden change in current exchange rate between US dollar and Japanese yen, one of major nonferrous metal company, Dowa Mining, has diversified its business area not only to the so-called down stream, but also to the environmental business including metal recycling, industrial waste treatment and soil remediation by utilizing technologis and facilities once used or still used for mining and smelting of copper, zinc, lead and precious metals. In this paper some of these applications will be presented.

Jan 1, 2003

By E. Berrezueta

Automatic digital phase imaging should yield unbiased and representative characterizations of gold ores. However, this is not a simple tusk due to low gold grade, fine grain size, possible complex mineralogy, nugget effect, etc. Using the same sections of a gold-rich ore, a critical test was performed using an optical microscope (OM) and an electron microscope (EM). In general, the two methods are consistent and useful for ore processing. There are some minor differences, such as the detection of very fine gold grains is enhanced by EM. Key words: Digital imaging, Gold ores, Mineralogy, Electron microscopy, Optical microscopy

Jan 1, 2003

By Y A. Stepanyants, J Crawford

A practical field method for determining the maximum value of the intrinsic oxidation rate, Smax , of sulfidic materials in waste rock dumps is proposed. Knowledge of the intrinsic oxidation rate of sulfidic materials distributed in a dump is necessary for predictive modelling of oxidation and pollutant generation over time. The suggested method uses the fact that drilling waste rock dumps to install probes for monitoring temperature and oxygen concentration causes large volumes of air to be injected into a dump by the drill rig. By measuring the rate of decrease of oxygen concentration along the length of a borehole immediately after installation, it is proposed that Smax can be calculated at different depths. The aims of this work were: to derive a simple, practical formula for the estimation of Smax from the oxygen concentrations measured over time, based on some simplifying assumptions; to use a two-dimensional numerical model that incorporates all the necessary physical processes to model the behaviour of an aerated dump over time for a reasonable range of dump and material parameters; and to compare the results of the two approaches to assess the validity of the simple formula as a method for estimating Smax. It has been found that the technique can provide reliable estimates of Smax when the value is of the order of 10-7 kg(O2) m-3 s-1 or greater. At the lower end of the range however the radius of the zone aerated during drilling becomes an important parameter and further work has been recommended to investigate this aspect of the method.

Jan 1, 2003

By Michael Bourassa, Sonja Felderhof, Normand Champigny, Steve Vaughan

Introduction -Comparison of International Reporting Standards (Sonja) -Legal and Due Diligence Requirements for Reporting (Steve) -Flexibility to Recognize International Reporting Standards (Michael) -Obligation of SRO’s to Discipline (Michael) -Impact of Sarbanes Oxley on Reporting (Normand)

Jan 1, 2003

By J. M. Shneerson

At Gipronickel Institute a technological flowsheet of pressure leaching of copper from rich copper concentrates (i.e. containing: Cu -59-75%; Ni -D.5-4.64%; Fe -D.2-J.3%; S -21.8-26.9%) was developed. As a result, the possibility of deep decomposition of copper-containing minerals with extraction of elemental sulphur (up to 90-95%) was established. The obtained sulphur concentrates contain 80-90% of elemental sulphur, which can be separated from sulphide residue through autoclave melting and settling. As a rule, sulphide concentrates remaining after extraction of sulphur contain up to 1-2% of noble metals. The sulphide concentrate can be purified to the level of rich concentrates or pure metals using the well-known methods as in the case of tankhouse slimes. The presented research specifies the parameters of main operations: pressure leaching and sulphur extraction. It was established that 98% of copper could be transferred into solution at temperatures of 108-1 10°C and oxygen partial pressure 0.4-0.6 MPa. Experiments were carried out in autoclaves of various volumes using the products of nickel matte processing.

Jan 1, 2003

Pyrometallmurgical reactors constitute a key processing component in the total primary and secondary resource cycle, being involved both in primary smelting, converting and extraction, as well as the reprocessing of scrap, from aluminum cans to end-of-life automobiles. To effectively control the overall resource cycle, one needs to take a systems modeling approach of the whole cycle, seeking to also understand the dynamic process behavior of the individual components of the cycle, and then especially the part that contributes most to the chemical conversion, namely the pyrometallurgical reactor. This paper highlights the role of pyrometallurgical thermodynamics, in the whole resource cycle and specifically places equilibrium thermochemistry in the context of process dynamics where large variable inventories are recycled or maintained within the system. This paper will therefore review the semi-empirical dynamic modeling tools, which are used to model complex systems with the specific goal of developing dynamic predictive models, which also include slag-alloy chemistry, towards controlling the recycling in a feed forward manner. To illustrate the primary processing side, high carbon ferrochrome will be presented as a brief case study. It also will show how the distributed nature of the chemistry of melts in the case of primary extraction, and secondary materials such as recycled end-of-life vehicles, have a significant impact on the process outcomes and model predictions. It is therefore argued that the fundamental thermodynamics and kinetics in metallurgical reactors playa final crucial role in modeling the closed material cycle, but only when it is used in conjunction with process systems theory based on reconciled data for parameter estimation and model calibration.

Jan 1, 2003

By Jonkion M. Font

An expression for the distribution ratio of arsenic between slag and copper matte or liquid copper was developed by both, an extension of the Reddy-Blander moderl for deriving a priori the arsenic capacity, and by a relationship between the arsenic capacity and the arsenic distribution ratio. In this study, the a priori arsenic capacities in the FeO-SiO2, CaO-SiO2,MgO-SiO2, FeO-CaO-SiO2, FeO1.5-CuO0.5-MgO-SiO2, FeO-FeO1.5-CuO0.5-CaO-Mgo and FeO-FeO1.5-CuO0.5-CaO-Mgo-SiO2, slags were calculated at 1573 K. The a priori arsenic distribution ratio between the FeO-FeO1.5-CuO0.5-CaO-MgO-SiO2 slag and copper matte mn (Lx, )' and between the FeO-FeO1.5-SiO2 or FeO-FeO1.5-CuO0.5*-CaO-Mgo slag and liquid copper (Ls/cua) were calculated. The model calculated data are found to be in good agreement with the reported experimental data. The availability of reliable thermodynamic data for slag components and impurities in the slag-matte- metal system is essential for the accurate prediction of impurity capacities and distribution ratio data. The arsenic distribution ratio model developed here, can be extended for predication in multi-componet slags and mattes or liquid metal, and thereby may lead to the development of new slag systems for the efficient removal of arsenic in the copper smelting, converting and refining processes,

Jan 1, 2003

By N J. Arunakumaren

A coal mine is proposed for an area where a major river traverses the project area. There were initial concerns that inflow of groundwater from exposures of high permeability alluvium associated with the river system could pose mine dewatering problems together with adverse impacts on surface water resources in the river. The project included collation and analysis of geological and hydrogeological data collected historically over a long period of project investigation and evaluation. The project also included establishment of additional groundwater monitoring points to provide a reliable groundwater contours. The groundwater level contours were produced to allow numerical models to be calibrated to support estimation of groundwater inflow. River bed cross sections were also prepared to assist study of the effect of river flow on the inflow. Two separate MODFLOW groundwater models were produced to simulate long-term groundwater inflow to the mine with an upper model consisting of the Quaternary and Tertiary alluvium lumped together and a lower, separate model consisting of Mesozoic coal measures. Analytical solutions were used to predict initial inflow from the alluvium and from the coal measures.

Jan 1, 2003

By William E. Roscoe

"Mineral exploration properties are those on which an economically viable mineral deposit has not yet been discovered. Such properties are bought, sold, optioned and joint ventured on the basis of their perceived potential for the existence and discovery of a viable mineral deposit. The intrinsic value of an exploration property is therefore based on the exploration potential. One measure of the exploration potential is the amount that can be justified to spend on exploration for a viable deposit.The appraised value method uses a cost approach to value exploration properties. It is based on the premise that an exploration property is worth the meaningful past exploration expenditures plus warranted future costs to test remaining exploration potential. Results of past exploration work are analyzed in order to retain only those past expenditures that are productive in terms of identifying remaining potential. Warranted future costs comprise a reasonable exploration budget to test that potential.INTRODUCTIONThe purpose of this paper is to describe a cost approach to the valuation of mineral exploration properties and to provide some valuation examples. The particular cost approach described is the Appraised Value Method, which is best applied to mineral properties at the exploration stage.At present there are no comprehensive regulations or guidelines in Canada which specify what approaches and methods to use for the valuation of mineral properties. In this paper, the Appraised Value Method described is one method that the writer considers to be accepted industry practice for mineral properties at the exploration stage.Mineral properties are valued for a number of reasons, including mergers and acquisitions, non arm's length transactions, pricing of initial public offering of stock, support for property agreements, litigation, expropriation, and insurance claims."

Jan 1, 2003

By Arthur E. Morris

Fifty years ago when Professor Yazawa began his career, the field of process simulation and modeling was in its infancy. Since then, tremendous progress has been made in our ability to model metal production flowsheets from mine to refined metal. This progress has come about by parallel developments in basic understanding of process chemistry and in computational techniques, This paper will review the progress made in process understanding and modeling in lead, zinc, and copper metallurgy from its inception to the present, and the role of Professor Yazawa's work in furthering this progress. Specific examples will be given for the sintering of lead concentrates, slag fuming, zinc concentrate roasting, flash smelting of copper, and pyro-extraction of zinc. Factors limiting further progress will be described.

Jan 1, 2003

By L. Spiers

Motorized Conveyor Pulleys contain all the traditional conveyor belt drive components inside the pulley. Light duty airport check in, grocery stores and food processing conveyors; requiring compactness, elimination of guarding and component containment have been using them for years. Portable Aggregate Processing Equipment require these features but with higher belt pulls and severe duty beyond the capacity of traditional components in a limited space. New materials, design technologies and automation; converging with safety issues, higher energy and operating costs; have created a pressing need. The challenge is to integrate new technologies and traditional components into a reliable, compact, conveyor belt drive system.

Jan 1, 2003

By Guojun Qi

This work relates to wafer bumping technologies for flip chip packaging applications in the electronics industry. Nickel and its alloys are alternative under bump metallization (UBM) materials because of their slower reaction rates with Sn-based solder as compared to Cu-based UBMs. In this study, we compared the morphologies of the intermetallic compounds (IMC) formed between Sn-bearing solders (Sn3.5Ag and eutectie Sn-Pb) and two types of nickel- based UBMs, electro less Ni-P (EN) and sputtered nickel. Both chunky-type and needle-type of intermetallics were observed between the EN UBM and the solders. In the case 'of sputtered Ni UBM, there is only a layer of scallop-type intermetallics formed, The morphology change and growth kinetics of the IMC in thermal aging process were analysed. Kirkendall voids were noticed from samples ofSn3.5Ag solder vs Ni-P UBM that have undergone prolonged thermal aging at high temperature.

Jan 1, 2003

By J. E. Chilton

No regular monitoring of methane is required in areas of gassy coal mines outby the mining face. Methane ignitions that have occurred in mine outby areas indicate the need to provide better protection to workers. Handheld methane monitors are now used by some miners to make periodic measurements of methane at the working face. The IYONI II gas detector which is incorporated into a miner’s cap lamp and worn on a miner’s helmet can continuously provide an alarm signal whenever methane levels exceed a set level. Tests were conducted to evaluate the performance characteristics of this methane detector by measuring response times with methane gas supplied through a calibration fixture or adaptor. Other response time tests were performed with the detector in an environmental test box. Performance was also evaluated in a full scale test gallery where face methane emission and underground ventilation were simulated. Procedures for calibration by response time measurement of the IYONI II detector have been developed. In limited testing, the IYONI II detector was found to reliably detect the presence of 1 percent by volume methane.

Jan 1, 2003

Hazardous waste has often very complicated chemical compositions in a variety of physical forms and is normally processed in rotary kiln incinerators. Due to large variations in waste types and difficulties in feed characterization, the complex transport processes within the incinerator are not well understood, and the incineration process meets challenges in a smooth operation, and expects various uncertainties in the process chemistry and emission control. For better understanding of the incineration process, simulation was carried out by using Computational Fluid-dynamics (CFD) to characterize temperature and species distribution in the incinerator. In order to catch certain aspects of thermal and chemical behavior, a novel approach is proposed to represent approximately the waste streams and the subsequent combustion process. Hazardous waste in various forms from an industrial-rotary-kiln waste incinerator is firstly converted to a hydrocarbon-based virtual fuel mixture with approximately the same HIC molar ratio and calorific value. The simulation of the combustion process of the simplified hazardous waste was proceeded with a combustion model. The distribution of temperature and chemical species especially the remaining CO in the system is preliminarily investigated. Distribution of CO concentration, as a good indicator of emission level for the incineration process, could be used to evaluate the emission control. The predicted temperature distribution has been compared with available measurement data from an operating rotary kiln waste incinerator at AVR-Chieme, in the Netherlands. Reasonable agreement has been reached between the measured and predicted temperature data. In the next step, measurement of species distribution in the system is planned to further validate the combustion model.

Jan 1, 2003

By S. A. Ferguson

Purpose: Marras et al. developed a technique to evaluate sincerity of effort during dynamic trunk motion performance. The validity and reliability of the technique have not been evaluated. Therefore, the objective of this study was to first determine whether or not a sincerity of effort measure correctly identified those giving a sincere effort in a blinded randomized control trial and second to quantify inter-rater and test-retest reliability. Methods: This article reports the findings of a two phase study. In phase one, the blinded evaluation, participants were randomly assigned to either a sincere or insincere performance condition. An examiner tested participants without knowledge of the participant's group membership. In the second phase, two examiners evaluated each participant twice to quantify inter-rater and test-retest reliability. Results: In the blinded phase the specificity was 100% and sensitivity was 90% for identifying sincere and insincere effort, respectively. Phase two results showed no significant difference in probability of sincere effort between raters or between testing sessions. Conclusion: A performance criterion that accurately identifies sincere vs insincere group membership during functional evaluations was identified. There were no significant differences between raters or between testing sessions. These findings indicate that this test is reliable and possesses good predictive validity in assessing sincerity of effort.

Jan 1, 2003

By Patrick R. Taylor

In the search for the development of more "environmentally friendly" and more intensive waste disposal approaches to meet more and more stringent environmental regulations, thermal plasma-based processes are considered one of the most promising alternatives to well- established technologies such as incineration. This paper presents an overview on the research and development status of thermal plasma-based waste remediation technologies. The properties of thermal plasma are described. Due to its unique feature of high-energy intensity and super high temperature, thermal plasma is particularly capable of destroying organic- containing wastes. Its potential and promising application to waste remediation may include: treatment of incinerator ashes; metallurgical dusts (especially, electric arc furnace dust); medical wastes; radioactive wastes; and other Resource Conservation and Recovery Act (RCRA) listed hazardous wastes. Many research institutes and vendors have been involved in the development of thermal plasma-based waste treatment technology encouraged by the cleanup programs supported by the Environmental Protection Agency (EPA), the Department of Energy (DoE) and the Department of Defense (DoD). More recently, thermal plasma-based waste treatment technologies (sometimes called plasma-enhanced pyrolysis) are focused more and more on not only just destroying organic wastes but also on how to practically, and economically recover energy contained in the organic waste materials in addition to the recovery of metals in order to offset the high operating costs.

Jan 1, 2003

By N Bezuidenhout

The performances of ten field-scale experimental final covers were evaluated over an eight-year period. The covers were evaluated as part of the rehabilitation of acid generating coarse coal reject dumps and opencast coalmines in the Northern KwaZulu Natal province in South Africa. The main purpose of the experimental covers was to restrict rainfall infiltration into acid generating coal discard. The mean average rainfall over the monitoring period was 839 mm with 84 per cent occurring between October and April. The average evaporation was 2100 mm. The site is described as a ædry siteÆ since the evaporation exceeds rainfall by a significant margin. Approximately 30 per cent of rainfall infiltrated the uncovered cells. Rainfall infiltration into the fine coal discard was reduced to 20 per cent and 15 per cent for a 300 mm and 500 mm cover respectively. Infiltration was reduced to ten and 12 per cent of rainfall for fine coal discard provided with a 1000 mm double soil cover and a compacted bottom layer. This relatively high infiltration was probably caused by moisture being entrapped in the bottom retentive layer, and not being released by evapotranspiration. The best performing cover comprised 1000 mm single soil with a compacted bottom layer and infiltration was reduced to four per cent of rainfall. Rainfall infiltration into sloped cells varied between seven per cent and 14 per cent of rainfall. The computer software, SoilCover, was used to predict infiltration and moisture content in the cover. Predictions of rainfall infiltration were accurate, but were less accurate for covers where the hydraulic properties of field compacted soils were not adequately characterised. Oxygen ingress was significantly reduced for cells provided with a 1000 mm cover. Oxygen concentrations were generally below one per cent, with the exception during exceptionally dry periods when the cover dried out, resulting in increased oxygen ingress. For other covers, and the uncovered cells, oxygen concentrations were close to atmospheric concentrations. During the eight-year monitoring period, acid breakthrough occurred in five of the cells, including three uncovered cells, one cell with a 300 mm cover and one sloped cell. In contrast, cells covered with 1000 mm, bottom compacted soils shows a marked improvement of leachate quality, indicating that sulfide oxidation processes have been slowed. There was a distinct relationship between oxygen ingress and leachate quality for all of the cells. No cover degradation was evident over the eight-year period, except for some erosion observed on a sloped cell. The results indicate that the onset of acid drainage can be delayed by perhaps hundreds of years and salinity loads can be reduced by more than 90 per cent, if coarse coal reject dumps in the KwaZulu-Natal provinces in South Africa are provided by an adequate cover system. These research outcomes can be extrapolated and applied to other dry site regions where similar materials are being considered.

Jan 1, 2003

Mine planning is difficult. Even for small operations, it involves reasoning with complex variables and the practical difficulties of mining. It is also about predicting and planning the future in an unpredictable physical and economic environment. Yet we rely on a handful of individuals and their spreadsheets to tell us how to do it û planning the business and activities of mining to hopefully produce results that will please stakeholders. Does it work? Not as well as it could. Planning affects everyone in the organisation. Company executives are demanding more reliability and stability in cost and revenue forecasts from their operations. Management want to explore ways of being more cost effective. Miners and contractors want more useful plans and realistic targets. And the planners have to describe the method that will translate business objectives into implementable plans. Even with the use of computer technology a lot of effort is expended to produce plans that are largely qualified by the level of knowledge and experience of individuals. Better use of information and the application of Intelligent Technologies can improve the quality and reliability of mine plans and schedules. By capturing the knowledge within the organisation and speeding up the planning process, Intelligent Technologies allow more options to be considered more rigorously. But it is not just about technology. It is about how technology is implemented and embodied in the way the business is managed for performance. When this happens, the real benefits of better planning start to flow.

Jan 1, 2003

By Tapani Järvinen

Non-ferrous metals and metals in general are considered as being non-renewable natural resources. Metals are needed because of their excellent and irreplaceable properties. The consumption of metals, with the exception of carbon steel, is steadily growing by 1-3 % annually, and that of stainless steel as much as 3-6 %. This is a general trend, which is periodically disturbed by cyclical variations. In recent years so-called "New Economy" has become prominent in the public media and the market value of the traditional industry has been well below its real value and importance. Nevertheless, the modem society requires metals today and also in the future, and the companies using the most modern technology in a responsible way and innovative solutions not only in technology, but also in everything they do will survive. This paper describes the role of Europe as a producer of primary base metals and as a supplier of technologies in the base metals industry. It concentrates on the development and commercialization of technologies and project implementation in the metallurgical industry. As one example ofa European approach to these matters the paper presents Outokumpu's response to the future challenges in the base metals industry. Outokumpu Oyj is one of the leading metals and technology companies in the world of stainless steel, copper, zinc, and sales of technology in metals and minerals businesses. Outokumpu applies its knowledge of metals and processing to generate value for its customers and shareholder. Everything we do, we do in an economically, environmentally and socially responsible way.

Jan 1, 2003