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By George H. K. Schenck

The investment analysis methods that are most generally accepted in the mineral industries in the mid-80's are presented along with their advantages and disadvantages. Also covered are current widely-used practices for introducing the uncertain nature of most of the important variables in an investment analysis, which is contrasted to the former dominance of deterministic analysis. Finally, the discussion turns to current practice for handling the two critical areas: cost of capital and inflation. The advice contained is reinforced with data from a survey of current practices in the petroleum industry.

Jan 1, 1985

By J. L. Page, A. C. Marlowe

The Research and Development Services of South Africa has begun underground trials with a Robbins 52RE blindhole borer using a cutterhead fitted with high pressure water jets to assist mechanical cutting. The objectives of the work are to reduce cutter costs by increasing cutter life and to increase overall penetration rates. The paper reviews blindhole boring in South Africa and laboratory experiments in rock cutting assisted with high pressure water jets. The borer and its ancillary equipment are described. Initial results of underground boring experiments are presented. The paper concludes with the test programme for the future.

Jan 1, 1985

INTRODUCTION The International Finance Corporation (IFC) is affiliated with the International Bank for Reconstruction and Development (World Bank) but operates with a separate staff and funding. It supplements the activities of the Bank by providing, to private business, equity and loans without government guarantees in whatever form and combination most suited to the project. IFC frequently complements the Bank's activities by utilizing, for example, the Bank's public sector infrastructure activities to support IFC's private sector projects. In the case of local financial institutions especially, IFC collaborates with the Bank by providing technical and financial assistance. IFC is the world's largest multilateral organization which finances private sector business in developing countries. IFC's fundamental purpose is to promote the economic development of its developing member countries through the support of the private sector. Of the 124 member countries of IFC, more than 100 are developing countries. Since it began operations in 1956, IFC has been associated with more than 2,000 companies and financial institutions in supporting over 700 business ventures in more than 80 countries. The total capital costs of these projects exceeds $26,000 million. In the 1984 fiscal year, IFC approved 62 projects in 37 countries with a total project cost of $2,473 million. IFC will make investments only if sufficient capital cannot be obtained on reasonable terms from other sources. IFC often serves as the catalyst for a project by encouraging other investors--from inside and outside the host country--to make their own equity investments along with the local sponsor for a particular project. IFC'S SPECIAL ROLE The significance of IFC's role extends beyond just its financing and technical assistance: IFC's capability to raise investor confidence in a project and to help all the participants to arrive at mutually satisfactory investment arrangements is its distinctive character. Direct Investments IFC invests in all types of projects both large and small. Heavy industrial ventures not only supply essential materials and equipment for other domestic enterprises, but also earn foreign exchange through exports. In recent years, increased emphasis has been placed on agriculture and agribusiness products, aquaculture, food and food processing, and other renewable and nonrenewable resources such as metals and energy. [ ] An overall objective of IFC is to assist entrepreneurs and others in the private sector raise the needed capital for business ventures. IFC does not compete with, nor seek to replace private initiative and capital. Rather, IFC helps to raise funds in order to undertake projects that would otherwise be held back by the lack of adequate funding. IFC can do this in several ways: IFC can invest in equity and make loans for its own account. But beyond that, IFC can reach out into the international capital markets in search of additional capital. Because of IFC's 25 years experience and record, outside investors who might otherwise be

Jan 1, 1985

Mineral processes are relatively simple and metallurgical accounting would also be simple if it were not for the nature of the raw materials and the large scale of operations. Essentially the balance between input and output requires only weighing and assaying of the feed, salable products, and waste. but because of complexities to be described in the following pages there are few plants that do not encounter difficulties that cause some sacrifice of precision for economy and practicality. In arriving at a sound compromise, capable

Jan 1, 1985

By J. F. T. Agapito, G. P. Bratton

A 16 m by 4.7 m by 24.5 m (52 ft by 15.5 ft by 80.5 ft) underground ore bin was constructed at an 810 m (2660 ft) overburden depth in poor quality, faulted and altered intrusive rocks at Molycorp's block caving molybdenum mine. Geological engineering incorporated detailed structural mapping, rock quality classification, in-situ stress field determinations, numerical stress and failure analysis, and convergence monitoring. The ore bin was mined by conventional methods from the top down and utilized a bored raise for mucking. The initial ground support of rock bolts, lightweight steel sets, and reinforced concrete was later supplemented with an array of 6, 12 and 21 m tensioned, grouted rock bolts when wall closure was noted in the upper ore bin area. The supplementary support was optimized by computer analysis and monitoring.

Jan 1, 1985

By Phillip R. Moyle

A mineral survey of 19,350 acres of the Gooding City of Rocks Wilderness Study Areas (WSAs) in the north-central Snake River Plain was conducted by the U.S. Bureau of Mines in 1984. No formal mining districts are known in or near the study area. Forty-two placer claims within and adjacent to the study areas cover the Clover Creek diatomite deposit. Minor production from four pits was reported by the owners. The diatomaceous sediments are underlain by dacitic welded tuff and capped with basalt. Five exposures or blocks totaling 416 million tons of the diatomaceous material comprise the Clover Creek deposit; four of the blocks are in the study areas, out are predominantly covered by basalt. The North Clover block, just west of the areas, is only partially capped, and could be mined by open pit methods on the western flank of the exposure. The minable wedge contains an inferred marginal reserve of 35 million tons of diatomite possibly suitable for filter aid, filler, insulation, and other applications. At a production rate of 150,000 tons/year, total mining and milling costs for high-grade filter aid diatomite would be about $100/ton. The deposit is classed as marginal because products from this deposit may be inferior to currently marketed diatomite products. The market is well supplied by developed sources.

Jan 1, 1985

Whilst decisions to commit projects have traditionally been heavily influenced by hurdle rates for d.c.f. analysis, it is suggested that evaluation of competitors' costs may be a desirable additional tool.The MICAS system developed over the past four years is described. This computer system uses standard costs modified by District and Mine factors to allow estimation of individual mine costs. The data base contains more than 15,000 items of data and more than 6000 costs are calculated.Recent applications include use for competitive analysis, predictive analysis, statistical analysis, and comparative assessments with scopes ranging from a few mines to the whole Australian export industry. Some areas where care is necessary are outlined and potential further uses are discussed.

Jan 1, 1985

By Y. C. Kim, S. L. Barua

Underground coal mine planning has traditionally focused on the mine design aspects concerning safety and efficiency in the quest to produce low cost coal. Very little attention has been given to coal quality control aspects of mine planning at most US underground coal mines. With the enactment of the Clean Air Act of 1970, the generally high sulfur content of coal has become a major concern for the coal-fired power plants in the east. Similarly, the ash and the Btu content of coal are equally important for boiler efficiency. Coal mine planning must incorporate coal quality control aspects as well as traditional safety and efficiency aspects. According to an article in Coal Age (March, 1982), nearly one-half of the US coal exported to Europe does not meet the contract specifications regarding ash, sulfur and Btu contents. Although one of the reasons cited for this problem was "inadequate sampling at the US ports," the more fundamental cause probably lies in the inadequate quality control of run-of-mine (ROM) coal at the source. To perform adequate quality control of ROM coal, mines need predicted short-term in-situ coal quality information. Such predictions are generally based on whatever available sampling information is around the mine workings. Unfortunately, the closest sampling information, in the form of diamond drill hole assays, is often several thousand feet away in most underground coal mines and is inadequate for short-term coal quality prediction purposes. This is because the diamond drill holes (DDH) were traditionally placed in the coal deposit during the mine development phase to determine coal seam continuity and overlying roof conditions. They were not placed for short- term mine planning. A study was undertaken by the University of Arizona for the Homer City Owners in Pennsylvania to show that there is a need for more closely spaced samples, if the short-term coal qualities are to be predicted with any "reasonable" degree of accuracy. Prior to this study, a short-term quality prediction model, STPM, had to be developed. This model uses not only DDH, but also other sample information obtainable during face development work to predict the qualities of in-situ coal that are available in the immediate future.

Jan 1, 1985

By E. P. Evert

Profitable marketing of most minerals is dependent upon the total delivered cost to the user. Transportation costs are often greater than the value of the mineral f.o.b. the mine or processing facility. In some cases, transportation costs are three to five times the mineral cost. For many years, transportation costs were controlled by a complex system involving the transportation companies and supervised by regulatory agencies. This paper will deal with the effects of deregulation on rail costs and outline the major changes in transportation economics.

Jan 1, 1985

After the last world war, management tended to change from an acquired skill more associated with experience than formal training, to a specific widely-recognised specialism requiring an involved formal education process.That process, of necessity, required the development of business schools, M.B.A. courses -indeed the setting up of professional chairs to deal with the intricacy of general management development.Management research burst forth bringing forward new and exciting theories which developed new techniques, tools and terms.

Jan 1, 1985

By S. W. Thomas

One of the most difficult tasks associated with placer mining is the sampling of the deposit. More placer projects have failed due to inaccurate assessment of the reserves than to any other reason. Within the realm of placers, those containing valuable minerals with a high unit value .are more difficult to sample than those with larger bulk, lower unit value minerals. Some items to consider when sampling a placer deposit are as follows: A) A relatively large size sample is needed for accurate valuation of the ground being tested. Placers are composed of many sizes of gravel which makes a representative sample difficult to obtain. B) When sampling placers for high unit value minerals such as gold, any error in mineral content of the sample will be magnified in the calculation of reserves.

Jan 1, 1985

By S. D. Maksimovic

The Bureau of Mines identified and evaluated major sources of quartz dust during overburden drilling at a surface coal mine, The relative contribution of each source to the total dust hazard was estimated, using personal gravimetric and instantaneous dust-sampling devices. No attempt was made to determine actual dust generation rates. The major sources of dust at the drill rig during dry drilling opera-tions were the collector dump, drill shroud leakage, and drill stem seal leakage, These sources contributed 90 pct of the respirable dust and 89 pet of the respirable quartz dust generated during drilling, The collector dump cycle (21.6 pct of total drilling time) accounted for 38 pct of the respirable dust and 41 pct of the respirable quartz dust, with peak dust concentrations reaching 68 mg/m3. Shroud and drill stem leakage contributed 28 and 24 pct of the respirable dust and 32 and 16 pct of the respirable quartz dust, respectively. A dragline and second drill rig contributed the remaining 10 pct of dust and 11 pct of quartz dust. Gravimetric dust samples collected inside the drill cab and outside, near the cab door, averaged 1.65 and 1.43 mg/m3, respectively, with 6 pct respirable quartz.

Jan 1, 1985

By George CW

Western Mining Corporation (W.M.C.)operate a 30 000 tpa nickel refinery at Kwinana, W.A. using the Sherritt Gordon Process. Following ammonia/air leaching of sulphideminerals and subsequent copper removal, nickel metal is produced as powder by hydrogen red-uction of the ammonium sulphate-rich solution. Batchwise reduction in pressure autoclaves is preceded by an oxidation/hydrolysis step to ensure nickel powder quality.The reduction process is energy intensive, requiring high temperatures and pressures. Present energy requirement is 24 GJ per tonne of nickel reduced. Of this, 95% represents steam and hydrogen consumption and 5% electric power. The design and operation of the red-uction circuit is reviewed, outlining the main areas of steam and hydrogen usage.

Jan 1, 1985

By P. L. Woolf

Blast furnace coal injection tests conducted by the Bureau of Mines in cooperation with a consortium of 22 steel companies in 1963-1964 are described. These tests were part of a program of extensive investigation of auxiliary fuel injection in the Bureau's experimental blast furnace located at Bruceton, PA. Seventeen coal tests are described on various coals ranging from anthracite to subbituminous. Factors affecting maximum rates of injection were studied. These included coal size, coal type, and oxygen enrichment. The effect of high sulfur content coal and the means to control metal sulfur were investigated. An epilogue briefly describing the commercial experience with coal injection from 1960 to the present has been included.

Jan 1, 1985

Die Suid-Afrikaanse Instituut vir Mynbou en Metallurgie het 'n paar jaar gelede 'n toekenning vir voortreflike akademiese prestasie deur vierdejaarstudente aan technikons ingestel. Disinvestment campaign by COLIN M.SPENCE As President of the Federation of Societies of Professional Engineers, which is an organization representing twelve institutions of the engineering profession comprising over 18 000 engineers of all kinds-of whom over 15 000 are either professional engineers or engineering graduates-I have been asked to make a statement on the disinvestment campaign on behalf of the profession.

Jan 1, 1985

By Krzyszof Borowiec

With the aim of determining the thermodynamic conditions for sulfation of impurity elements, in particular magnesium, in titaniferous slags the equilibrium gas composition for the sulfation reaction: MO + so2 + 1/2 02 = MS04 has been studied by an EMF technique with a solid zro2 + Cao electrolyte. Here M denotes the impurity elements: Mg, Ca and Mn, and the following _oxide systems have been studied: Ti02-MgO-Fe2 o 3 , Ti02-MnO-Mn2 o 3 , and Ti02 -CaO-Si02 , all in the . temperature range 700-1000ºc. Reproducible EMF values were obtained by adding small amounts of -Na2so4 to the oxide-sulfate mixture. From the observed results the Gibbs energy of formation of the phases Mg 2Ti04 , MgTi03 , MgTi 2o 5 , MnTi03 , CaTi03 , and CaTiSio5 , as well as the activity of MgTi05 in the solid solution with Fe2Ti05 have been calculated. The results show that, from a thermodynamic viewpoint, sulfation of these impurities in titaniferous stags i:s favorable- at around and below 800ºC.

Jan 1, 1985

By M. Hertzberg

The Bureau of Mines measured the energy requirements for the spark ig-nition in air of Pittsburgh seam bituminous coal dust, lycopodium spores, and polyethylene powder with a 1.2-L furnace and 8-L and 20-L chambers. Thermal autoignition temperatures of the same dusts were mea-sured in the 1.2-L furnace. Electrical ignition requirements are given in terms of both effective spark gap energies, [ ] and stored circuit energies, 1/2 CE2. The measured order of electrical ignitability for the three dusts is consistent with the data of other researchers; however, the absolute values are systematically higher, probably because of higher flow and turbulence levels in the chambers used and lower electrical efficiency in the circuit used here. The temperature dependence of the lean limit of flammability for lyco-podium was measured wi th the 1.2-L sys tem, and those measurements con--firm the applicability of the modified Burgess-Wheeler law to a dust. Due to experimental complexities, the minimum ignition energies for dusts may not reflect intrinsic flammability behavior. However, some valuable information may be obtained from the relative ignition energies of various dusts at ambient and elevated temperatures. In addition, the concept of minimum electrical ignition energies for homogeneous gas mixtures is reevaluated theoretically.

Jan 1, 1985

By J. G. Martin, J. C. Campbell

THE VICTORIA JUNCTION 31,4-million-ton coal preparation complex went into operation in October 1976."' It is designed to produce a metallurgical coking coal by lowering the sulphur and ash content of the raw coal using a heavy-media cycloning process to treat deslimed crushed coal, with scavenging of fine coal by flotation from the primary minus-28-mesh screen product. A secondary H-M cyclone scavenges a thermal-grade coal from the primary H-M cyclone tailing.

Jan 1, 1985

By P. Somasundaran, K. P. Ananthapadmanabhan

A knowledge of the role of effects and interactions of chemical species is important in developing an understanding of the behavior of mixed minerals and natural ores in beneficiation processes such as flotation and flocculation. In this study the role of such species was examined for the calcite-apatite system by conducting flotation of each mineral in various supernatants prepared by mixing with water. Supernatants of apatite and even that of calcite depressed the flotation of calcite markedly in the pH range of 5 to 13. Addition of Ca(NO3)2, K2C03, and K3P04 also produced definite effects under various pH conditions. Apatite flotation was also affected by the mineral supernatants and by carbonate and phosphate solutions. The results are analyzed in terms of the surfactant's solubility properties and the mineral's electrochemical and dissolution properties. While depression of calcite flotation by the dissolved species is found to be governed by depletion of oleate by bulk precipitation, the depression of apatite flotation is caused by the carbonate and phosphate species in the system. Turbidity measurements and a thermodynamic analysis of possible interactions in the system support these considerations. The effect of the supernatant of minerals on their own flotation suggests the important role of kinetics of various surface interactions in comparison to that of mineral dissolution.

Jan 1, 1985

By Robert L. Grayson

In small coal mining operations, little is done in controlling supply and material inventories and optimizing total inventory costs. Material Requirements Planning (MRP) is an efficient material control system which time-phases net material requirements based upon production plans, bills of material data, and inventory status records. Inventory levels and total inventory costs are optimized using a lot sizing technique in placing time-phased purchase orders. The MRP system has been applied in large manufacturing firms utilizing mainframe computers, but it can be adapted to micro-computers for inventory control. This paper presents an application designed to assist the coal mine manager in optimizing inventory costs.

Jan 1, 1985