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By R. R. Stone

"This paper will examine the role of debt and equity in project financing and will illustrate the impact on the return to the project sponsor of each type. Conventional debt sources will be examined, as will product purchaser advances, foreign export-import bank loans and lease financing. The paper will review guarantees, charges against the project, dividend restrictions and other commitments. It will also discuss various features of sales contracts and the degree to which they can assist in securing financing. IntroductionThe cost of bringing new mining projects on stream is escalating significantly more rapidly than general rates of inflation. Reasons for this include the higher costs of safeguarding the environment and ensuring the health and safety of workers. The need to develop properties in more remote areas is also a significant factor. These higher costs have not been matched by increases in metal prices, making the task of financing these projects ever more difficult. At the same time, the imagination of borrowers and lenders seems boundless, and innovative schemes for financing projects are constantly being unveiled.It is probably safe to say that no two projects have ever been financed in precisely the same way and the number of financing options for any project is limited only by the imagination of the sponsors themselves. The objectives of the project sponsor represent the most important factor in determining the scope of possible financial arrangements. For example, the sponsor may wish to maximize over-all company leverage by isolating each of its projects in separate companies. In so doing, it hopes to facilitate more ventures than would otherwise be the case. These objectives point toward true project financing. Additional objectives may be to develop a number of its properties by joint venture and to reduce the amount of debt on the sponsor's balance sheet. Those sponsors whose objectives include minimizing over-all financing costs will wish to increase the number of financial options and, as a result, will not be so concerned with effecting true project financing. This approach may also provide ""greater certainty that tax benefits are utilized quickly."

Jan 1, 1980

By Rolf N. Schulz

The recently completed major modifications and additions to Reserve Mining Company's taconite concentrating process incorporate a totally new control system. Design of the new control scheme is centered on reliability, versatility, centralization, and optimization. The design objectives were achieved through a distributed control system based on a network of independent field located micro-processor based control systems connected to a central control room. Operation of each micro-processor can be interrogated and modified from the central control room by the operator or by either of two computer systems. The two computer systems handle logging, alarming, specialized sequenced controls, and complex process optimization routines.

Jan 1, 1980

By Richard R. Klimpel

The role of dispersion is described in the wet grinding of ores using tumbling media mills and the flotation of coal, sulfide, and non-sulfide ores. Emphasis is placed on characterizing the effects of dispersion in laboratory tests using engineering models which provide information useful for the improvement and control of existing plant operations. Significant economic gains in the above named operations have been realized using these models as guides for full- scale plant testing.

Jan 1, 1980

By N. Staroselsky

"Significant energy savings are often possible for centrifugal compressors operating in parallel by improved control strategy and improved instrumentation. Blow-off can usually be reduced by improved surge control combined with a better control strategy for loading and unloading the group of machines. More precise and stable pressure control then becomes possible. This improved control strategy will also decrease the frequency of operation near the dangerous limits of surge or overload or overspeed. A sample station of mixed centrifugal and reciprocating compressors is examined and a substantial energy saving with the recommended control strategy is projected from operating data. Present Operating Conditions of the Compressed Air StationThe Compressor StationThe compressor station described here has three centrifugal compressors and three reciprocating. It supplies a mine in New Brunswick.Compressed Air and Power ConsumptionFigure I and Figure 2 provide graphs of air consumption and pressure changes based on the owner's data.During the typical two-shift operating day (Fig . I) in the non-productive shift (midnight to 8:00 a.m.), the consumption stays at a level of 9,000 SCFM. This corresponds to a pressure of 110 PSIG. Then, after 8:00 a.m ., the air consumption starts to increase and th e pressure decreases. Around 10:00 a.m., the consumption reaches its maximum level at 97 PSIG. Around II :30 a.m., the air consumption starts to decrease because of the production drop during the lunch break of the first shift. Pressure increases again up to 109 PSIG. After the break, consumption rises to its maximum level over 16,000 SCFM andpressure drops to 97 PSIG.Around 2:30 p.m., the air consumption drops sharply to 9,000 SCFM because of the production decrease to zero level. This drop results from changing of shifts. The pressure at this time increases again up to 110 PSIG. The second shift (2:30 to II :30 p.m.) is an alogous to the first.During the three-shift operating day, the break around 4:00 . a.m . and the shift change around 6:30 a.m. cause sharp drops in air consumption. The pressure for almost the entire night shift stays near 110 PSIG because the station is working with blowing-off even under the maximum consumption. The analysis of Figures I and 2 shows that the pressure varies with the air consumption changes. During non -productive time (non-production shifts , shift changes and breaks) or during the night shift, the total station capacity is proportional to the discharge pressure. By decreasing the level of this pressure up to 97 PSIG, the flow of the station may be decreased during the non-production time as follow s:"

Jan 1, 1980

By K. Ananthanarayanan, R. I. L. Guthrie, S. A. Argyropoulos

"The low cost and availability of micro-computers and their peripherals provides the metallurgical engineer with the opportunity to use such computers in a wide variety of applications. In this paper, the authors describe the development of a low cost data acquisition system capable of measuring up to 8 analogue channels at a sampling rate of up to 5000 measure mentsper second. This system is equipped with proper hardware and software so that the micro-computer can be linked to a central computer facility such as the McGill System for Interactive Computing (MUSIC). This central computer facility is supported by an AMDAHL V7 computer. Using the present interface, communication rates between the microcomputer and the central computing facility can be as high as 9600 (baud).The above mentioned data acquisition system is currently used for monitoring dissolution kinetics of ferro-alloy additions in liquid steel. In addition to this, special software has been developed which enables the user of this system to monitor solidification rates of ingots, etc. As economic considerations are always important, comparisons have been made with existing recorders which show that the cost Of the present system is only 30 per cent more than a two-pen strip chart recorder.RESUMELa disponibilité et le bas prix des micro-ordinateurs et de leurs périphériques permet à l'ingénieur métallurgiste d'utiliser de tels ordinateurs pour diverses applications. Dans ce rapport, les auteurs décrivent le développement d'un système d bas prix pour l'acquisition des données, capable de mesurer jusqu'à huit canaux analogues jusqu’à une vitesse de 5000 mesures par seconde. Ce système est équipe avec son propre ""hardware"" et ""Software"" qui relient le micro-ordinateur d’un ordinateur central, comme le système de McGill pour computations réciproques (MUSIC). Ce central d'ordinateurs est soutenu par l'ordinateur AMDAHL V7. Utilisant cet "" interface"", la vitesse de communication entre Ie micro-ordinateur et l'ordinateur central peut atteindre jusqu'd 9600 (baud)."

Jan 1, 1980

By D. W. Dareing

Multiple branch wellbores and horizontal holes, when applied to deep lying ore bodies, have the potential of significantly reducing well costs by reducing total footage drilled per acre of well pattern. In addition, horizontal holes may increase sweep efficiency. Well completion is a major problem. They must be cased to contain leaching solutions within the underground portion of the production loop. Several drilling and completion concepts are given and evaluated in the report. Our evaluation shows that there is economic incentive to further develop these concepts for field application to ore bodies 1,500 feet. Multiple branch concepts are the most attractive. They can reduce well costs by as much as 30° when applied to 2,000 feet ore body depths (44%, at 5,000 feet) and can accommodate a lamer pump than conventional vertical wells. We recommend this concept be developed further to accommodate either dual or triple branches.

Jan 1, 1980

By G. M. Ritcey, S. H. Lucas

"On the north shore of the St. Lawrence River, in Quebec, are located orebodies of low-grade titaniferous magnetite. The Quebec Mining Exploration Company (SOQUEM), who have an interest in the deposits, believed that beneficiation of the could generate sufficient revenue to defray the mining costs and the costs of transporting the ore to a steel production facility. A joint research project of SOQUEM and CANMET investigated alkaline roasting of a magnetic concentrate, followed by leaching of the calcine and separation and recovery of Cr and V by solvent extraction. Aluminum was recovered by precipitation.The present paper describes the roast-leach bench-scale and pilot-plant work leading to the development of the optimum conditions f or the integrated process.A plant flowsheet was developed for the treatment of 5 x 106 tons of magnetic concentrate per annum. Estimates of capital and operating costs were made.Based on a recovery of approximately 90% V, 85% Cr and 75% AI, the total hydrometallurgical plant fixed capital costs, including mining, concentration and shipping, are estimated at $1.021 x 109; the operating costs are estimated at $131.92/ton concentrate. Annual revenue from the Na2CrO4.H2O, V2O5 and A12O3 produced is calculated to be $421 x 106.IntroductionThe Quebec Mining Exploration Company (SOQUEM) acquired in 1968 an interest in four titaniferous magnetite orebodies located in Eastern Quebec. 85 miles north of Mingan on the north shore of the St. Lawrence River. The Mingan deposit, with an estimated tonnage of one billion tons, has a reported average grade of 43% Fe, 6.3% Ti , 1.60% Cr, 0.19% V and 6.1% Al with minor amounts of nickel. SOQUEM, on the basis of previous bench-scale data, believed that the recovery of chromium, vanadium and alumina by alkaline roasting would generate sufficient revenue to defray the mining costs and the costs of transporting the ore to a steel production facility on the coast. One of the approaches selected by SOQUEM for beneficiation of the ore consisted of a combination of magnetic concentration followed by alkaline roasting of the calcine."

Jan 1, 1980

By Charlie Wyche

The British Solomon Islands Protectorate continued developmental work on bauxite deposits on the Islands of Rennell and Vaghena. A feasibility study was completed by Mitsui Mining & Smelting Co., Ltd., and Pacific Aluminum Ltd. (a subsidiary of Conzinc Riotinto of Australia Ltd,), and negotiations with the Government were in progress. The Government will receive a 25% share if the project is realized. It was estimated that the Islands contain 60 million tons of bauxite with an alumina content of 45% to 50%.

Jan 1, 1980

By S. J. Lefond

Most people, when Borates are mentioned, mentally visualize the famous twenty mule team (really eighteen mules and two horses), trudging across the Mojave Desert or "she burns green Rosie, we are rich." Actually, however, the first use of borax was prior to Babylonian times. Their emissaries had orders to bring borax Iron the Gobi desert for use as a flux by the Babylonian goldsmiths. The borate mineral imported for this is not known but probably was borax. The ancient Persians and Arabians knew about borax and the Arabic word "Baurach" appears in a two thousand year old manuscript. The Sanscrit word for borax was tincana which has been corrupted to tincal. The Chinese were using borax as a glaze in three-hundred B.C. Marco Polo brought the first borax, along with gunpowder and spaghetti, from Mongolia to Europe in the late 1300's. Borax from Tibet was imported to Europe for nearly 500 years. In 1772 boric acid (sassolite) was discovered around Tuscany, Italy as a precipitant from volcanic steam vents. Production of boric acid started there about 1815 and provided the sole competition to the borax from Tibet. Borate deposits in Turkey have been known and exploited on a small scale since the 13th century. It is only recently that the operations are being modernized and production increased. About 1836, borax minerals were found in Chile and Argentina with borax production starting in 1852 in Chile and in Argentina in 1886. During the latter half of the 19th Century, Chile was the principle world producer of borax.

Jan 1, 1980

By G. M. Ritcey, K. E. Haque, S. H. Lucas

"Laboratory-scale hydrochloric acid leach tests were conducted on an Elliot Lake uranium ore. Hydrochloric acid leaches without an oxidant or with molecular oxygen (i.e., air or pure oxygen gas) as an oxidant favoured uranium and radium extractions. Conditions for maximum uranium, thorium and radium extractions with hydrochloric acid in the presence of sodium chlorate were determined. The highest extractions of uranium (96%), thorium (81%) and radium (91%) were obtained using a mixture of 44.0 kg HCI and 2.5 kg NaCIOJ per tonne of ore at 75°C with 18 hours ' retention.Flowsheets for two-stage leaching are proposed. The residues obtained from the second-stage leach contain uranium (0.002%), thorium (0.006%) and radium (15 to 20 pCi/g). Tailings of this nature are considered suitable for mine backfill, and, if pyrite is removed, suitable for surface disposal.IntroductionThe nuclear energy industry forecasts an increasing demand for uranium. This increasing demand requires not only largescale mining and processing of conventional and complex uranium ores, but also leads to the consideration of new and nonconventional sources of uranium, e.g., black shales, phosphate rocks, granite, sea water and fossil-fuel ash."

Jan 1, 1980

By Ride G

The provision of a water supply is a major consideration in planning mining developments particularly in remote areas. The evaluation and development of adequate water supplies in and areas of Australia is often as important as the discovery of the orebody. The copper orebody at Warrego near Tennant Creek could not be mined economically if cheap treatment water was not available near the mine. This paper describes the difficulties in obtaining water in the Tennant Creek area and the water supply investigations carried out near the Warrego Mine which resulted in the successful discovery and evaluation of a reliable large scale water supply. It is contended that the establishment of a water supply must be approached on a systematic and scientific basis similar to the approach with the exploration and establishment of actual ore reserves. Mining companies with similar water supply problems may benefit by approaching their problem on this basis. The approach adopted by Peko Mines is outlined in this report.

Jan 1, 1980

This publication summarizes the in-house and contract research and development projects programed for fiscal pear 1980 by the Bureau of Mines under its Minerals Environmental Research activity. The document provides a mechanism for interested parties, including potential contractors, to gain insight into ongoing and projected work of the Bureau's environmental research efforts. Research to identify and correct environmental problems associated with mining and metallurgical operations has long been an integral part of the Bureau's mission. Through the years, efforts of various Bureau programs have yielded valuable information on the origin and control of many of these problems. With the reorganization of the Bureau of Mines in 1979, the Minerals Environmental Technology program was structured to consolidate these efforts into a single program that will systematically investigate al aspects of mining- and processing-related environmental pollution and damage-from initial discovery of the mineral resource to ultimate return of the land to productive use. In fiscal year 1980, the Bureau received an appropriation of about $21 million to conduct research and development work on these problems.

Jan 1, 1980

By L. J. Heaslip, J. M. Toguri, T. R. Meadowcroft, R. L. Addinall

"""Pilot Plant Operations"" is a final-year core course given to the Metallurgy and Materials Science students at the University of Toronto. This course involves a laboratory study of an industrial project at an industrial site. Details of this program are discussed and reviewed after eight years of experience. IntroductionEducators in the field of Metallurgy and Materials Science have long agreed that ""hands-on"" experience is an important component in the education of metallurgical engineers. This philosophy is reflected in the undergraduate curricula of most metallurgical schools. The major problems encountered with laboratory-associated courses are the requirements for equipment, space and funds for both purchase and maintenance of equipment. For example, consider an exercise in crushing and grinding treatment in a mineral processing laboratory. Such operations require the handling of tons of material and often equipment of large size. The problems of storage of ore, methods of handling and maintenance of equipment are a few of the concerns facing the department. Considering that metallurgical departments at universities are, in general, relatively small, the support to purchase and maintain largescale equipment becomes an annual budgetary concern. In reality, universities today are not geared to operate mini-pilot plant equipment, either in terms of space or personnel.For the above reasons, in 1972an undergraduate core course called ""Pilot Plant Operations"" was introduced to the fourth year curriculum in Metallurgy and Materials Science at the University of Toronto. This course consists of I to 2 full weeks (8 hrs per day) of pilot plant laboratory study at an industrial site on a project of mutual interest with the industrial organization whose facility is being used. The first 5 years of the program were carried out at the pilot plant facility at the Ontario Research Foundation; Stelco's Research Centre in Burlington, Ontario, was used for the last 3 years. The nature of the projects undertaken during the 8-year period is shown in Table 1."

Jan 1, 1980

By K. B. Chaudhuri, I. D. Webb, F. E. Rachor, F. A. Sauert

"A characteristic of all methods of copper concentrate smelting is that slags with a high copper content are produced at some phase of the operation. Recirculation to the smelting unit, electric furnace reduction or flotation are at present used on an industrial scale to recover the copper from these slags. This paper describes the application of the top-blowing technique, originally developed by KHD Humboldt- Wedag AG for refining of metallic copper, for the treatment of copper-containing slags. By this method, a mixture of a reducing gas and commercial oxygen is blown onto the melt at velocities which can be supersonic from the tip of a water cooled lance. The impingement of the reaction gas mixture on the surface of the slag forms a depression in the molten phase and a deflection of the jet which brings the slag into a rotating motion. This causes high rates of heat and mass transfer. Results of pilot-plant tests for batch and continuous treatment of slags are presented, and the potential applications of top blowing for industrial-scale operation are indicated. In combination with the cyclone as a smelting unit, this process appears to be economic for smelters of very low capacity."

Jan 1, 1980

By Norman F. Schulz

Relative fineness is an important characteristic of iron ore balling feeds. It is frequently expressed in terms of the Blaine Number which is determined by standardized permeametry procedures. Inconsistencies in Blaine Number specifications for balling feeds from different sources prompted an investigation of permeability methods. A revised procedure for permeametry tests was developed for use with conventional apparatus that yields an Effective Blaine Number which is similar to the Standard Blaine Number except that it more accurately describes the effective fineness of the actual test sample.

Jan 1, 1980

By Joseph E. Schiller

As part of the Bureau of Mines research on identification of asbestos fibers, a method was discovered for removing asbestos fibers from water. This report describes this process and its theory of operation. The surface charge of amphibole minerals in potable water was found to be negative, and in common with most other silicate minerals, the isoelectric point of amphibole asbestos fibers lies in the pH range 4 to 6. Magnesia is one of the rare oxides with a high isoelectric point of about 11. The surface of magnesium oxide will, therefore, be positively charged in water at pH 6 to 6, while the electric charge an. amphibole asbestos fibers is negative. Because of the electrical attraction of these oppositely charged solids, it was possible to remove negatively charged asbestos fibers from water by percolating water that contained suspended-asbestos through a porous bed of magnesium oxide particles. A bed of 100/200-mesh MgO was added to a glass tube with a cotton plug. Aqusous suspensions of 1 to 10 ppm cummingtonite asbestos (amosite), crocidolite, and chrysotile were percolated through this porous plug of MgO. Even though chrysotile is positively charged below pH 11, MgO is an effective filter medium for removing it. The highly basic MgO appears to cause the chrysotile to flocculate and attach to particles within the bed. Scanning electron photomicrographs indicated that essentially complete removal of the fibers from water was accomplished. Other materials tested as contact filter media and found to be ineffective or only partially effective were sand, calcite, carbon, diatomaceous earth, and cellulose. Acidic alumina collected amphibole fibers but not chrysotile fibers.

Jan 1, 1980

Aluminum Production. -By October 1, Aluminum Company of America will restart a 35,000-ton-per-year unit at its aluminum smelter at Rockdale, Tex., restoring that facility to its full capacity of 325,000 tons annually. Primary Ingot Price Increase. -Most U.S. aluminum producers in mid-September were quoting a price of 72 cents per pound for primary aluminum ingot. On September 19, Kaiser Aluminum & Chemical Corp. announced that it would increase the price of primary aluminum ingot 4 cents to 76 cents per pound.

Jan 1, 1980

By D. J. MacKinnon

Smooth, compact, dendrite-free, 24-h zinc deposits have been electrowon from zinc chloride electrolyte using a diaphragm cell. The cell consisted of sealed anode compartment con- taining DSA anodes which were separated from an open cathode compartment by Dynel cloth membranes. Fresh electrolyte was fed to the cathode compartment where zinc deposition onto an aluminum cathode was aided by air-sparging. The catholyte passed through the diaphragm into the anode compartment from which chlorine gas and spent anolyte were withdram.

Jan 1, 1980

By Per-Lennart Nystedt

"The Boliden Lead Kaldo Plant for the treatment of lead bearing flue-dust from the Copper Smelter and the Slag Fuming Plant has been in operation at the Ronnskar Works of Boliden Metall since the middle of 1976. At the present stage, the plant can treat lead-bearing dust of different kinds and compositions. The process allows good separation of arsenic and halogens from lead.The flue dust from the Copper Smelter and the Slag Fuming Plant is very complex and, apart from lead, also contains zinc, copper, tin, bismuth, cadmium, antimony, arsenic, sulphur, silver, chlorine and fluorine. The metallurgical process has been developed by Boliden Metall and has been tested on a pilot scale at the Foundation for Metallurgical Research (MEFOS) in Lulea, Sweden.The pelletized dust is smelted in the converter, where the heat is generated by an oil oxygen burner. The second step consists of reduction with coke. A lead bullion and slag are obtained. The slag, transported in liquid form, is treated in the Slag Fuming Plant for the recovery of zinc. The third step is the elimination of arsenic from the bullion. This is achieved by treating the lead with iron (turnings or pellets). The result is a crude lead and speiss. The lead contains silver, tin, antimony and bismuth, and is suitable for the final refining stages in normal plant equipment for refined lead.For process control, we use the rapid analysis centre, which is pneumatically and electronically linked to 'all major plant sections and allows for a quick turn-around between delivery of the sample and feedback of results. All three steps in the process are performed in the same converter.Since the starting up of the plant, the original process has been subjected to some modifications. Initial problems related to equipment, maintenance and environment have been solved step by step. Examples are quoted. Recent operating particulars are presented."

Jan 1, 1980

By G. Knight

It is shown that the dust exposure of all underground workers varies greatly from day to day even though each man did the same job in the same working place each day. The variability follows a logarithmic normal distribution with a geometric standard deviation of about 1.6 for the three dust assessments; total respirable dust, respirable combustible dust and respirable quartz dust in both mines studied. The variability was homogeneous for all men and most jobs. The differences between men doing the same job was found not to be significant and it is suggested that the dust sampling program should determine the average for each job and use this as the best estimate of the exposure for each man.

Jan 1, 1980