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By Anthony Tuke

Members of the Society of Mining Engineers may well regard it as rather unusual that a paper on this subject is being presented by someone whose first taste of mining came at the age of 60 or so - someone who last heard of cathodes and anodes in 1938. On the other hand, the title does refer to the financing of a mine and at least I can claim to have spent all my business life since the war until 1981 in the world of banking, though this inevitably means that I have been used to looking at these and other problems through what you might regard as the wrong end of the telescope. The lending of money, and more particularly the provision of finance for commerce and industry, is the central job of a banker and I have been involved in this in various ways over many years, but regrettably only very marginally in the world of mining. As you will see from what follows, the rather specialised form of finance which RTZ required was, to my regret, not provided by the British banking community since the great majority of the finance came from American banks and, to a lesser extent, from German banks. I am most indebted to Mr. Roy Wright for a great deal of the nuts and bolts in this paper. He was one of the three central figures in the growth and expansion of RTZ during the 1950's and 1960's and was right at the centre of the negotiations with bankers, with governments and with many others. The going, as you will see, was far from easy. The essential basis for the financing of each of the RTZ group's mining projects was a firm long-term sales contract for sufficient of the output of the particular mine to produce the cash flow necessary to service the loans. Wherever possible, loans were raised in the same currency as the sales contracts were made. Each sales contract was designed to give the customer the product he wanted with a long-term assurance of supply and at the same time to give the bankers the protection they required. Thus the marketing concept and the financing concept for a particular mine formed one overall plan, and talks with the customers and the bankers were conducted in parallel until a satisfactory marketing/financial package was agreed in principle. Preliminary talks were begun soon after the discovery of a potentially viable orebody. As confidence about a discovery increased, customers were persuaded to enter into contingent sales contracts before the very detailed and costly business of the economic and technical feasibility study of the mine was launched; such a study might cost 10% or more of the estimated total capital cost. At the same time provisional understandings were reached with the bankers. The contingent sales contracts usually gave a period of grace of eighteen months to two years, during which time the decision whether or not to continue with the mine had to be made. This decision rested mainly on the result of the feasibility study and also on coming to a firm agreement with the bankers. If all went well and the mine went ahead, then the contingent sales contracts became firm, but they fell away if the decision was negative. The Company was fortunate that during the whole period when its major mines were being developed, world trade was increasing rapidly and Japan was becoming a dominant industrial power. The Japanese supported many of the mines, including Hamersley Iron Ore, Lornex Copper, Bougainville Copper to name a few, with the basic long-term sales contracts that enabled their development. The Germans supported Palabora and to a lesser extent Bougainville. The mines were financed as individual projects generally with a loan/equity ratio of about 65/35, without legal recourse to RTZ for the loans. RTZ was, however, responsible for providing any capital overruns required to bring the mines into commercial operations. Nevertheless, the RTZ management regarded itself as morally responsible to the lenders because, Palabora aside, the sales contracts had either a fixed selling price (like Hamersley), an indexed price (like the Elliot Lake Uranium Mines and Mary Kathleen), or a floor price (as in Lornex, Bougainville and Rossing). Thus the Company believed that any financial failure would have been due to poor management or technical

Jan 1, 1985

By Robert B. Parsons

"1984 was an eventful year in the courthouse f or observers 0/ the mining tax scene in Canada. For the first time in a number of years, the Federal Court heard several important tax cases which pertain directly to the resource industries. Tax Notes discusses/our cases that could affect the taxation 0/ operations and investment in the mining sector.Capital Gain or Income?Ever since tax reform, risk-takers in the exploration business have maintained that the taxation of capital gain s is a significant impediment to raising risk capital. It must be akin to rubbing salt in the wound, then, when an entrepreneur sells shares and the Court upholds Revenue Ca nada taxing the gain as ordinary income instead of capital gain. But, this is precisely what happened in the case of The Estate of Murray Watts, et al. v. The Queen.The issue that had to be decided by the Federal Court, Tri al Division, in this case was whether or not the profit from the sale of shares in Hearne Coppermine Exploration s Limited in 1968 was a capital gain, or income subject to tax.Hearne was incorporated in July, 1967. At that time, the three plaintiff s, together with seven other individuals, subscribed for 400,000 shares at 10 a share. The plaintiff subsequently subscribed for an additional 500,000 shares at $1.A pooling agreement was entered into by all ten shareholders regulating the disposition of any o f their shares; any sale required approval of seven of the ten initial sub scribers. It also provided for the sale of their shares 30 days after any public offering."

Jan 1, 1985

By W. J. Weymark

"The Gregg River project is located 40 kilometres southwest of Hinton, Alberta, adjacent to and east of Jasper National Park. This metallurgical coal mine has been developed as a joint venture between Gregg River Coal Ltd. (a subsidiary company of Mana/ta Coal Ltd.) and seven Japanese companies. This 200-million dollar project consists of a conventional truckshovel open-pit operation and a coal preparation plant rated at 2.14 million tonnes of clean coal per year. Mining operations started in October 1982 with plant start-up following in April 1983. Introduction This paper is an overview and update of the Gregg River project, a metallurgical coal mine being developed as a joint venture between Gregg River Coal Ltd. (a subsidiary of Manalta Coal Ltd.) and seven Japanese companies. The Gregg River Coal leases cover 3440 hectares and are located 40 kilometres south of Hinton, Alberta, adjacent to and north of Cardinal River Coal Mine (Fig. 1). This 200-million dollar project consists of a conventional truck-shovel operation and a coal preparation plant rated at 2.14 million tonnes of clean coal per year. A total of 31.5 million tonnes of clean metallurgical coal will be sold to the Japanese over a fifteen-year term. At present, mining operations are ahead of schedule and the plant started up on schedule in April 1983. Access and Climate An all-weather road, Highway 40, connects the minesite with Hinton (the nearest commercial centre) and a Canadian National Railway (C.N.R.) spur line connects the minesite with the C.N.R. main line in Edson. Hinton is accessible by road chartered airline and rail. ' ~h~ rug~ed and varied topography in the area creates large vanations m temperature and precipitation over short distances. The region is characterized by precipitation throughout the year long cold winters and short cool summers. The mean temperatur~ of the area range from a low of -14°C in January, the coldest month, to a high of 12°C in July, the warmest month. Long-term precipitation data indicates a mean yearly precipitation of 870 mm of which 620Jo occurs during the summer months."

Jan 1, 1985

By P. L. Stavenger

Principles of Operation and Mechanical Features General Mechanical Description Sieve-bend screens are high-capacity screening devices which utilize stationary, concave, wedge-bar screening surfaces. A complete sieve bend is comprised of a feed distribution chamber, a structure for holding the screen surface, and collection chambers or chutes for oversize and undersize materials. In devices used for metallurgical practice, provision is usually made for reversal of the direction of flow over the surface, either by rotating the surface or by changing the feed nozzle position. The size of the unit varies in height from 5 to 8 ft, and in width from 2 to 8 ft. The orientation of the wedge-bar surface is such that the slots between the wedge bars are perpendicular to the flow of feed material over the surface. The feed distribution means is arranged such that the flow of liquid suspension is distributed evenly and tangentially over the width of the screen surface. A variety of means are used including simple gravity weir feeds, long slotted nozzles, and a multiplicity of round nozzles. A typical gravity-fed weir type nozzle is shown in Fig. 18. Most sieve bends are fed with gravity feed in such

Jan 1, 1985

By L. Hartsell Cash

INTRODUCTION Created in 1944 to help rebuild those economies, principally in Europe, which were seriously damaged or destroyed during the Second World War, the World Bank--or to use its correct name, the International Bank for Reconstruction and Development-began its operational phase by making a loan to the Government of France to accomplish two tasks: (i) to import coal for space heating purposes; and (ii) to buy new machinery and equipment to help rehabilitate its coal mines. Once the thrust of reconstruction in postwar Europe was largely accomplished, the World Bank Group (for today the World Bank has three separate lending windows) turned to mobilizing funds to improve living standards in developing countries, which remains its primary goal today. Over this period of time, the World Bank Group has continued to assist the world mining industry in various ways and, since 1955 the World Bank Group has financed mining or mineral processing projects with loans/credits totalling $1.5 billion. The World Bank Group consists of two institutions--the World Bank itself and the International Finance Corporation (IFC), which was founded as a separate institution in 1956 and three separate lending windows--the World Bank, the International Development Association (IDA), and IFC. The World Bank loans are provided at commercially-related interest rates but have grace periods usually of up to 3 to 5 years and repayment periods ranging from around 15 to 20 years. Since the World Bank raises its operating funds on the international capital markets in varying currencies and in varying interest rates, it relends a basket of currencies at floating interest rates which are fixed every six months to reflect the Bank's own borrowing cost. At the present time, the interest rate is just below 10% per year and in addition, a one-time front-end fee of 1/4 of 1% is charged. Also, a commitment fee of 3/4% per year is charged on the undisbursed amount of the loan itself. For loans to industrial and mining projects, it is normal to charge an additional guarantee fee of 1 to 1.5% in addition to the annual interest rate. This guarantee fee is payable to the government of the country in which the project is carried out since, by its charter, the World Bank is required to have the guarantee of the host government for each loan made in a specific country. By far the greatest source of lending funds within the World Bank Group is that of the World Bank itself and for the fiscal year ending June 30, 1984, the World Bank approved loans totalling $12 billion. The second lending window within the World Bank Group is IDA which performs the same functions as the Bank itself and has the same staff. Nevertheless, its loans (called credits) are made on much softer terms and are made to the poorest nations only. IDA funds are subscribed by the wealthier countries, usually as grants, and these are relent as credits to those countries with the lowest per capita income. IDA credits are made for 50 year periods, including 10 years of grace, to the government itself. The credits are interest free, but there is a service charge of 3/4% per year on the amount withdrawn and outstanding to defray the administrative costs of IDA. Credits approved during fiscal 1984 totalled $3.5 billion. The third lending window is IFC. While IFC is a separate corporation and operates quite separately from the World Bank and has its own staff and regulations, it works very closely with the World Bank on its overall approach to the mining sector and to a particular country. IFC's mission is essentially to supply venture capital and to stimulate development of the local private sector in capital markets as well as to promote the international flow of private capital to developing countries. Unlike the World Bank and IDA, the IFC does not lend directly to governments

Jan 1, 1985

By Stephen A. Swan

Bureau of Mines research has not included analyses of mining dredge safety since 1948. Because of the increasing use of dredges, 63 fatal accidents and several hundred nonfatal injury accidents involving dredges were examined. Also, 31 working dredges and 3 dredge manufacturers were visited to acquire qualitative information. Drowning accidents represented 59 pct of the fatalities and are delineated in detail. Also, countermeasures against other hazards are discussed.

Jan 1, 1985

By R. S. Datta

In the article "Concentration of Oil Shale,"(1) Dr. N. Arbiter stated, "One of the major factors in the delayed utilization of oil shale as an energy raw material is the low grade or content of hydrocarbon (kerogen) in oil shale as compared with coal and even more so to the liquid and gaseous fuels. " When the availability of high-grade deposits decreased, mineral industries started adopting prebeneficiation procedures for the low-grade deposits. This practice, which is becoming standard in these other industries, has been largely overlooked by the oil shale industry in its drive to produce oil from oil shale. If a major portion of this mineral matter can be removed, there can be potentially large savings in the capital and operating costs of oil shale retorts. Moreover, the environmental impact, associated with recovering the shale oil, could be reduced considerably. In 1980 Roberts & Schaefer Resource Service (RSRS) completed successfully the first set of demonstration runs with a 20-ton oil shale sample from Cathedral Bluffs (C-b tract), Colorado. This relatively low grade (~12 gpt oil content) oil shale was beneficiated applying the Dutch State Mines Heavy Medium Cyclone process. (2)

Jan 1, 1985

By B. E. Davis

A technique was devised by the Bureau of Nines to recover coarse (plus 1.7 m) North Carolina phosphate now discarded as waste. Concentration utilizes the difference in particle sphericity between the relatively flat calcite and the rounded phosphate pebbles. Sizing, treatment in a continuous hydraulic classification system, and grinding upgraded a 17.0-pct-P205 reject to 24.5 pct P205 with a phosphate recovery of 63 pct.

Jan 1, 1985

By Keith Harris

The U.S. economy grew moderately in the second quarter of 1985 with real gross national product (GNP) recording a seasonally adjusted annual growth rate of 2.0%, up from the 0.3% growth of the previous quarter but significantly below the 7.1% growth of the second quarter of 1984 (table I). Personal consumption expenditures grew 5.3%, with purchases of durable and nondurable goods rising 7.4% and 5.1 %, respectively; nonresidential and residential fixed investment--the two components of fixed investment--grew 11.8% and 5.6%, respectively; and Government spending rose 3.6%. However, these gains were tempered by a major decline in the growth of business inventories (from $19.1 billion to $8.3 billion) and the continuing growth of the net export deficit (from -$28.4 billion to -$33.3 billion). While the high value of the dollar compared with other currencies has been a major cause of the expanding trade deficit, its value, as measured by the monthly Federal Reserve Board (FRB) multilateral trade-weighted dollar index, has declined over 17 index points from its February peak to 140.94 in July. The July dollar value was still high historically. The rate of inflation, as measured by the fixed-weighted price index for GNP, remained low at 4.1%, down from 4.3% in the first quarter, and employment continued to grow at a rate sufficient to keep up with new additions to the labor force. Civilian unemployment has remained steady at 7.3% over the past 6 months. Industry Statistics The FRB recently revised its index of industrial production and changed the base year from 1967 to 1977,1/ The revised total index shows a 0.1 % higher annual growth rate between 1967 and 1984 than the previous index. In the slower growing or declining industries, such as metal mining, primary metals, and fabricated metals, however, downward revisions in the indices and rates of growth have occurred. The previous and revised annual rates of growth between 1977 and 1984 for several of the sectors of interest to the mining industry are shown in table 2.

Jan 1, 1985

Direct smelting of copper in a single vessel has long been the extractive metallurgist's dream. Such a process offers the important alvantage. of (i) maximum use of the energy available from oxidizing the sulphur and iron of the concentrate: (ii) restriction of SO2 emissions to a single constant-strength source; (iii) minimum materials handling and (iv) elim-ination of at least one process step. Extensive developmental work was carried out in the 1960's and 1970's to implement such single-step processes. Some of the processes reached the prototype stage and it appeared that copper smelting technology was on the thresthold of a new, efficient, minimum-pollution era. Since that time, however, the forward thrust has slowed and single-step copper smelting is still a process of the future.The paper describes the potential advan-tages of single-step smelting; its history and current status; and the reasons why it has not been adopted industrially. It concludes that the potential benefits of single-step smelting are powerful and that many of the difficulties encountered in the 1970's will be overcome in the 1980's.

Jan 1, 1985

The Merrill-Crowe process for gold and silver recovery yields a low grade concentrate containing high levels of zinc and copper. External refining charges and high transport costs prompted the company to establish itsown enrichment facility.The route chosen was a wet chemicaltreatment which converts the gold, silver and other metals to their chloride. This is achieved with hydrochloric acid and sodium hypochlorite. Gold is recovered from the resulting filtrate by cementation with copper.The solid residue from the gold process is washed and treated with ammonia which dissolves the silver chloride. Metallic silver is recovered from this solution, againby cementation with copper.

Jan 1, 1985

By I. R. Muirhead

"One approach to making new technology available is to demonstrate its value under full-scale operating conditions. Studies were undertaken to assess the feasibility of this approach to introducing a longwall mining system to the western Canadian coalfields.The longwall method of mining coal is described, world and Canadian usage is reviewed, and the merits of the system in comparison 10 other coal mining methods are discussed.The rationale for a longwall demonstration in western Canada is presented, along with a proposed organization for the design, operation and dissemination of the findings from such a trial. The factors which must be considered in the design of the demonstration, and in the assessment of a potential site are highlighted. It is concluded that a demonstration of this technology is both timely and essential to prepare the way for the western Canadian coal industry of future prospects for coal.IntroductionFor many years CANMET has encouraged research work organized on a cooperative basis. This requires that a working consensus must be negotiated by researchers and operators at the beginning of the project and continuously refined as work proceeds. The result is usually a more relevant selection of research problems, improved direct ion and con duct of experiment al work and often a validation phase in which research concepts are tested in an opera ting environment. All this tends to narrow the gap between obtaining research results and applying them.Even under the best of circumstances cooperative projects require a good deal of coordination and enthusiasm to maintain focus and the pace of work. The working perspective of a research scientist in a government laboratory is substantially different from that of a mine operator at a producing mine, and a common ground must be found. This is difficult to do and cooperative projects typically evolve over several years as experimental results progressively define the potential solutions to mining problems."

Jan 1, 1985

By B. W. Haynes

This Bureau of Mines report describes the laboratory processing of manganese nodules and the results of tailings characterization obtained during the cooperative program with the Department of Commerce's National Oceanic and Atmospheric Administration (NOAA) and the Bureau. Five technically feasible first-generation nodule processing methods were operated at bench scale to generate sufficient tailings and slags for physical and chemical analyses. A description is given for the laboratory operation of the individual unit operations of each process. The laboratory-generated tailings and slags were tested for physical properties, mineral content, elemental and ion content, and leachability for all five processes. The results of leachate testing using the Environmental Protection Agency extraction procedure (EP) toxicity test, the American Society for Testing and Materials shake extraction test, and the EPA-U.S. Army Corps of Engineers seawater elutriant test showed very low to negligible leaching of metals from the tailings and slags. Results of the EP toxicity test demonstrated that the wastes are nonhazardous as defined in the Resource Conservation and Recovery Act (Public Law 94-580).

Jan 1, 1985

By A. May

Florida has accumulated about 400 million tons of phosphogypsum, a mineral process waste generated in the production of fertilizer, and is adding 30 million tons to this annually. To minimize storage of this waste and reduce potential environmental effects, the Bureau of Mines conducted research into utilizing the phosphogypsum, by identifying and developing high-volume uses for this material. Admixtures of phosphogypsum, fly ash, and lime that could produce a coarse aggregate suitable for road construction were investigated. Using phosphogypsum with asphalt, cement, cement-kiln dust, silica, clays, and oxychlorides to pro-duce aggregate was also examined.

Jan 1, 1985

By Robert F. Conley

In the mining, manufacturing and application of inorganic pigments, dispersion contributes significantly. This is especially true with mineral pigments because of the variety, in slurry operations required for their processing. Such operations include any of the following: (1) mine-transport (2) wet grinding (3) flotation/beneficiation (4) wet magnetic separation (5) selective floculation (6) size classification (7) chemical processing (8) spray drying Dosage levels and general economics of dispersant use are broadly variant, being dependant upon the agents employed, from the simplist, i.e., sodium silicate or sodium carbonate, to the more complex, as polyacrylates and organo-phosphates. In certain unit processes the dispersant must exhibit unusual chemical stability and persistence, e.g., in protracted pigment slurry shipments. In others, the agent should be fugitive to prevent secondary reactions from occurring, e.g., with high temperature calcination where alkali salts can act as aggregation fluxing agents.

Jan 1, 1985

By R. H. Lien

The Bureau of Mines investigated a roast-leach process for recovering a marketable lithium product from a montmorillonite-type clay deposit located on the Nevada-Oregon border. The clay sample treated in the investigation contained 0.6 wt pct Li. The lithium recovery process consisted of several unit operations. The lithium silicate compounds in the clay were converted to Li2SO4 by roasting a pelletized mixture of clay, limestone, and gypsum at 900° C in a direct-gas-fired rotary roaster. Water--leaching the calcine at 40 pct solids extracted the Li2SO4. Lithium recovery from the leach solution involved concentrating the solution by evaporation, adding Na2CO3 to the concentrated solution to precipitate Li2CO3 , and filtering the slurry to obtain the product. The product filtrate was recycled to the evaporator following a crystallization step. About 80 pct of the lithium in the clay was recovered as 99-pct-pure Li2CO3. Process operating costs were estimated at $2.12/lb Li2CO3 produced; the current Li2CO3 selling price is $1.48/lb. Raw materials. accounted for 30 pct of the total operating cost.

Jan 1, 1985

By D. S. Cronan

Mineral exploration problems in the S.W. Pacific are not unique to that region, but a combination of favourable circumstances render it an ideal area to attempt to solve such problems. The land area of the S.W. Pacific island nations is only a fraction of the total sea area they can claim under current International Law. Hence, they have a great need to explore and evaluate their offshore areas. For the past ten years the focus of this work has been CCOP/SOPAC which has individually and jointly with other groups initiated and maintained far reaching marine mineral exploration programmes. In association with CCOP/SOPAC the writer has obtained and analysed approximately 650 sediment samples from the S.W. Pacific region for seventeen elements. Multivariate statistical techniques have been applied to the data set. The aim has been to identify chemically anomalous sediments reflecting either sea floor mineralisation and/or mineralisation on adjacent land areas.

Jan 1, 1985

An automatic control system of a longwall roof support is dis-cussed. Hydraulic automatic control systems for longwall roof support have not met all requirements for such systems. Utilization of standard hydraulic elements to form a system that would-comply with all demands leads to a very complicated structure with a large number of hydraulic hoses within and between adjacent supports. So, only simplified systems have been made. This paper describes the multifunctional valve that per-mits realization of any desired logic functions, while maintaining a com-pact form, and analyses its application as a fully hydraulic automatic control system of a roof support.

Jan 1, 1985

By V. Adamek

The specific lithological conditions over the Pittsburgh coalbed, highly resistive limestone and sandstone units with relatively shallow overburden, prevent the use of any predictive method as developed for European conditions. This paper describes the development of a subsidence precalculation methodology suitable to the mining-geological conditions in the Northern Appalachian Coal Field. It has been found that due to lithological conditions over the Pittsburgh coalbed the subsidence coefficient varies within the area of the subsidence trough. This is different from the European conditions where the subsidence coefficient is considered to be a constant. The effects of lithology, in-the form of a variable subsidence coefficient, have been separated for each test site by introducing a correlation between hypothetically homogeneous overburden and existing lithological conditions, while providing for different mining conditions. Field data from eleven Bureau longwall panel studies were used in the regression analysis. For each panel the characteristics of the variability of the subsidence coefficient along individual profile lines were defined. Regression analysis of the subsidence coefficients from all test sites on the location relative to the edge of the panel has yielded a third degree polynomial equation with a coefficient of correlation of 0.9999. All sensitivity tests have shown good results.

Jan 1, 1985

"Technological innovation is an extremely complex activity. The author presents his interpretation of innovation and the innovative process. He reviews the strategy used by participants in coal mining innovation in the past and discusses changes required to meet the challenges of the future.Introduction if an industry is to be successful and viable in today's world, the companies active within the industry must remain close to the frontiers of knowledge. The coal mining industry is no exception. Technological problems facing the coal mining industry are basically economic and social. Economic problems are those concerned with the long-term growth and profitability and social problems, with the health and safety of the mine worker and the impact of the mining operation on the environment.Technological innovation can be a key factor in meeting these problems successfully. The general belief is that the information base for technological innovation exists within mining companies and governmental agencies but current industrial and governmental strategies and structures impede the transformation of this knowledge into the mining products and processes required for growth.The purpose of this paper is to determine where Canada is in terms of coal mining on the innovative ladder. The paper as presented: defines innovation and innovative process; gives an historical ""broad brush"" review o f innovation in the industry; and suggests the challenges to be faced in the future."

Jan 1, 1985