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By Edgar F. Cruft

INTRODUCTION It is sometimes said that "mines are made, and not found." I rather doubt that the exploration geologist would be overly sympathetic to that statement, and, of course, like most one-liners it is only partly true. Access to different financial markets are important at the mineral prospect stage. The modern mine financier has a much more complex, and interesting, job than the financiers of an earlier era, for example, the Canadian financiers of the 40's and 50's who had one simple set of options; i.e. float a company, promote it, and sell an equity stock issue, and then promote it some more. QUALITIES OF A FINANCIER Because technical people are seldom taught financing in their basic training, and because they are usually not involved in it until at quite a senior level in their careers, the whole field often acquires a certain mystique. The engineering professions have too often believed financing is the province of the accountant or financial executive and just as we in the technical world are often too quick to bristle if the latter try to tread on our domain, the opposite can just as easily be true. Unfortunately, this is another example of a compartmentalized individual, and that is one thing the successful financier cannot be. However, to be a successful financier one does not need extensive training or experience in accounting or finance. In fact it can sometimes be a disadvantage to get too buried in working only from the standpoint of discounted cash-flow analyses, ROI's, etc. It must be stressed, however, that one had better know how these analyses are made, and be knowledgeable in understanding a balance sheet, and have a good understanding of financial terminology. The difference between a simple project-type debt financing with a commercial bank and a more inventive and creative financial package comes from an intuition and an experience relating to risk-reward factors. The most important element is "common-sense", based on knowledge and experience. The goal is structure a financial package that fits the project, and in so doing it is important to recognize that it must fit within the limitations of the group supplying the money. I find insensitivity to recognize these constraints the most common mistake made in the field. Put yourself in the other person's place and understand his sources of funds and financing limitations. The engineer has an advantage in financing, as he or she has (or should have) a better idea than anyone of the value of the product, be it the mine, prospect, or company i.e. the intangible or potential worth which cannot be put on a pro-forma. He also knows, or should know, the risks involved. Two projects might look the same on paper, but a good financier must have a sense of when to take whatever deal he can get, and when to hold out based on his evaluation of future developments. It is essential to have a good sense of commodity values and trends, trends affecting the general economy (money supply, interest rates, effects of energy costs, etc.), and political considerations. He must also have a good understanding of the science and art of taxation as deals can often be financed using the government as a silent and unwitting partner by proper use of the tax laws. WHEN TO SEEK FINANCE The first critical decision to make in financing a mineral prospect is "when". At the exploration level, when it is only a dream in the geologist's eye, the alternatives are more limited than when it is a fully-engineered project. The "when" decision depends on how much in internal funds the company has to play with, and how desirable it is to invite financial participation to spread the risk. Assuming that decision is not taken out of lack of money, no one can categorically say when to do it. There is

Jan 1, 1985

By A. C. Alexander

Chevron Resources Company owns and operates an open pit phosphate mine and mill 11 miles north of Vernal, Utah. The plant currently produces 500,000 tons per year of concentrate and has the capacity to produce 750,000 tons per year. The operation is currently being expanded to 1,300,000 tons per year of concen¬trate in order to supply a new fertilizer plant being constructed by Chevron Chemical Company in Rock Springs, Wyoming. A 10-inch, 96-mile pipeline is being built to transport the concentrate from Vernal to Rock Springs. The present and expanded operation will be discussed. HISTORY In 1915, Harry Ratliffe staked nearly 15,000 acres of low to medium grade phosphate rock along the southern flank of the Uintah Mountains. This deposit became the largest privately owned phosphate deposit containing approximately 700 million tons of reserves. Initial development of the deposit began in 1958 by San Francisco Chemical, a joint venture between Stauffer Chemical Company and Mountain Copper Limited. In 1968, Stauffer Chemical Company bought out Mountain Copper Limited and became sole owner and operator. In 1981, Chevron Resources Company bought the property from Stauffer and has operated the mining and milling operations since.

Jan 1, 1985

By A. L. Hinde

The recovery of heavy minerals by gravity concentration during grinding is practised widely in the minerals industry. Studies have shown that the grade and recovery of the concentrate depends not only on the performance of the concentrator but also on the degree of liberation achieved in the mills and the scavenging action of the hydrocyclones closing the grinding circuit. In the current study, consideration is given to the development of mathematical models to quantify and unify the operations of comminution, liberation, classification and concentration. The models are based on test work done at production scale with gold ore.

Jan 1, 1985

By Michael T. Nigbor

This Bureau of Mines publication identifies the significant environmental issues associated with the potential development of strategic and critical minerals in the Stillwater Complex, MT. The Stillwater Complex contains deposits of Cr, platinum-group metals (PGM), and Ni. Issues that must be addressed prior to minerals development include the effects mining, milling, and smelting will have on the land, water, and air, and methods of minimizing the environmental impacts.

Jan 1, 1985

By Frank F. Aplan

Introduction Heavy media separation (HMS), also called dense media or float¬sink separation, is one of the newer forms of gravity concentration. Though the concept can be traced to the last century, the process has enjoyed its major growth since 1940. Heavy liquid separation is a mutation. The heavy media process is used extensively to clean coal and for the concentration of a wide variety of ores such as those of iron, lead-zinc, chrome, manganese, tin, tungsten, fluorspar, magnesite, sylvite, garnet, diamonds, gravel, etc. It may be used where ever a significant density difference occurs between two minerals, and commercial separations are typically made in the range of 1.3 to 3.8 sp gr. The particle size treated ranges downward from 6-8 in. top size. Particles greater than about 1/16-in. (10 mesh) may be treated in a "static" bath, though for reasons of separation efficiency, + 1/2 -in- feed is usually preferred. For particles less than this size, separation in a heavy media cyclone is generally used. The flowsheet of a typical heavy media process, in this case one using a ferrous medium, is shown in Fig. I. In essence, the process consists of: (1) preparation of the feed usually by wet screening to remove undesired fines, (2) heavy medium separation, and (3) removal and recovery of the medium from the separated products. Many muta¬tions of the basic scheme are possible and numerous options are possi¬ble. HMS offers the following potential advantages:12 1) Ability to make sharp separations. 2) Ability to change the specific gravity of separation quickly to meet changing conditions. 3) Ability to remove products continuously. 4) Ability to treat a broad size range of products. 5) Ease of start-up and shutdown without loss of separating efficiency. 6) Relatively low medium cost and low media losses. 7) Low operating and maintenance costs. 8) High capacity with the use of relatively little floor space. 9) Relatively low capital investment per ton of capacity. The process may be used to produce a finished concentrate, two finished concentrates, or a concentrate and a middling of differing quality, or a preconcentrate by rejection of unwanted gangue. It is an ideal method for the reprocessing of coarse waste dumps. The greatest use for the process lies in coal cleaning and in the preconcentration of ores. The relatively inexpensive heavy media process may be used advantageously to reject large quantities of coarsely crushed gangue. When used in this way, the process will allow: (1) the use of lower cost but less selective mining methods with the "overbreak" material being removed at the front end of the concentrator or preparation plant; (2) a substantial reduction in the quantity of ore that must be finely ground for subsequent mineral liberation and separa¬tion. Since comminution is often the single most expensive step in beneficiation, it is desirable to eliminate as many essentially barren pieces of rock as possible before the grinding step, (3) a decrease in overall plant capital cost per ton of concentrate since the size of the plant from the dense medium step onward will be smaller. Several general references are available,12-18 though much of the technical data on the process is widely scattered in the general litera¬ture. Heavy Liquid Separation Organic Liquids Given sufficient settling time, it is possible to make a perfect separa¬tion between two particles of differing density by placing them in a liquid whose density is intermediate between the two. This means of achieving a perfect separation has proven to be elusive because of problems in feed preparation, particle settling rates, operational considerations, and economic constraints. There are a wide variety of heavy liquids that could be used, most of them halogenated hydrocarbons, and a few typical examples are given in Table 4. These liquids are most commonly used in ore dressing for the laboratory fractionation of ore particles on the basis of specific gravity. Laboratory Separations. Using liquids typified by those given in Table 4, separations are made to develop either the standard washability curves used to estimate the response of a given sample to gravity concentration or to prepare a partition curve to evaluate the effective¬ness of a given gravity separation process or piece of equipment. A typical washability curve is given in Fig. 2.19 Such curves are generated for raw coal, e.g., by treating either the whole or various size fractions of the sample in a series of heavy liquids and analyzing the various specific gravity fractions so produced. The procedure is relatively simple for coal samples because of the ready availability of a wide variety of relatively low cost heavy liquids in the density range 1.2¬-2.0. For ores the problem is much more complicated, because only a few high density liquids, all of rather high cost, are available. Parti¬tion curves are generated in the same manner by treating the separated products in the same liquids. Greater details on the procedures to be used in heavy liquid separa¬tions are to be found in the literature (for coal, Refs. 13, 14 and 19 and for ore, Refs. 20 and 21). For testing coal, calcium and zinc chloride solutions have been used extensively in the past, though today halogenated hydrocarbons (available under the trade name Certigrav) are the preferred media. The liquids shown in Table 4 may

Jan 1, 1985

By James D. Bennett

During the past decade many U.S. industries have realized the importance of a total loss control program; the bituminous coal mining industry is no exception to this trend. Oftentimes, we realize that the circumstances surrounding a "near miss" (an incident which does not result in personal injury or property damage) are practically identical to those associated with a fatality, disabling injury, or major property damage. And, many organizations suffer enormous financial losses in cases where no one is injured or property damaged but costly delays in production result. Detailed analyses of both injury and non-injury cases can provide valuable input into those engineering, behavioral, and management controls that are necessary to prevent their recurrence. The purpose of this paper is to describe a comprehensive loss control surveillance system (LCSS) that will enhance management control in preventing personnel, property, and production losses, thereby, maximizing profit. The next section describes the components of this LCSS. Then, we present one practical example of how this valuable management tool can be used to minimize loss through safety and training programs.

Jan 1, 1985

By E. L. Horner

"Srnoky River Coal is capable ofprocessing 3 million tonnes per year ofrun-of-mine coal at the Smoky River Coal preparation facilities to produce 2.1 million tonnes of high quality, low volatile coking coal for export markets. Multi-seam surface and underground mining operations are scheduled to maintain raw coal feed to the plant. Two beneficiating circuits wash the coal. A heavy medium cyclone circuit cleans the plus 0.5 mm coal and a froth flotation circuit cleans the minus 0.5 mm coal. Clean coal is thermally dried, loaded into unit trains, treated for dust suppression, and transported to west coast port facilitiesf or export. Plant by-products are used as thermal fuel Jn an adjacent power station. Quality control procedures ensure efficient resource recovery for a yield of uniform specification product, at a 7% ash level. Introduction Smoky River Coal operates surface and underground mines in the Smoky River coalfield. Approximately 3 million tonnes per year (mt/ a) of run-of-mine (ROM) coal can be processed at the coal preparation plant to provide 2.1 mt/ a of clean, high quality, low volatile bituminous coking coal. Coal is processed by heavy media and froth flotation cleaning circuits and is thermally dried.Raw Coal Characteristics The characteristics of the ROM coal, both in terms of quality and size consistency, vary with intrinsic seam qualities and mining methods employed. The two seams mined (No. 4 and No. 10) show distinctly different washability characteristics. Seam No. 4 contains relatively few middlings and can be readily cleaned by dense-medium cyclones and froth flotation to give a clean coal at specification ash content. Seam No. JO is more difficult to wash, and the ash content of the clean coal is higher than No. 4 seam at the same operating conditions. However, when the upper I m is excluded from the plant feed, the remaining lower section has washability characteristics similar to No. 4 seam. Coal mined by underground means sometimes contains caprock and consequently tends to be dirtier than similar coal mined by surface means."

Jan 1, 1985

By M. E. Learmont, R. J. Lipp, I. Iwasaki

In the selective flocculation of iron ores, the concentration of alkaline earth ions in pulp solutions plays a critical role. Sodium silicate, alone or with sodium tripolyphosphate, has been used as a dispersant. When Ca+ + concentration exceeds 15 to 20 ppm, however, only a strong complexing agent, such as ethylenediaminetetraacetate (EDTA) was found to be effective (Heerema, Lipp, and Iwasaki, 1979). Some iron ores release Ca+ + in excess of 20 ppm. With ores that contain gypsum, the Ca+ + concentration may reach several hundred ppm. The purpose of this investigation was to compare the effectiveness of EDTA with nitrilotriacetate (NTA) in countering the adverse effects of Ca+ +, particularly at high Ca+ + concentrations. Emphasis was placed on the use of NTA since it is more cost-effective than EDTA. It is also used in detergents in some countries (Malaiyandi, Williams, and O'Grady, 1979). NTA, like EDTA, forms a soluble complex with Ca+ + with a 1:1 molar ratio. Its structure and the value of log Kca are given below together with EDTA (Shibata, 1963). [ ] For experimental materials, an equal weight mixture of Lac Jeannine hematite and a high-purity quartzite from Thompson, MN, both ground to - 30 µm (- 560 mesh) was used. Selective flocculation test conditions and procedures were identical to those used in previous investigations (Heerema, Lipp, and Iwasaki, 1979). The optimum level of starch addition for the above mixture was determined to be at 300 g/t (0.6 lb per st). Initially, a series of selective flocculation tests were performed on the mixture pulped with 10-3M CaC12 (40 ppm Ca + +) at pH 11. With no NTA present, flocculation of the entire suspension resulted. The selectivities achieved in tests with 90, 100, and 150% of the stoichiometric amount of NTA were virtually identical to each other and also to the selectivity of separation obtained in the absence of Ca+ + Such an observation could have been expected since Ca+ + concentrations up to a few ppm may be tolerated in selective flocculation (Krishnan and Iwasaki, 1982). A similar series of tests were performed at 10-2M CaC12 (400 ppm Ca+ +). The results are shown in Fig. 1 as grade¬recovery curves. For comparison, the results obtained in the absence of Ca++ are included. At 90% of the stoichiometric amount of NTA, a large enough concentration of uncomplexed Ca+ + was left in solution to cause indiscriminate flocculation. Note in this figure that NTA is capable of countering the adverse effect of Ca+ + even at this high concentration when it is used in excess of stoichiometric amounts. The free Ca+ + concentrations at 100 and 150% are calculated to be 2.5 and 0 ppm, respectively. [ ] The relative effectiveness of NTA and EDTA was then compared at 100% of the stoichiometric amount using 10-2M and 10-3M CaCI2 (Fig. 2). EDTA appears to be slightly more effective than NTA. The free Ca++ of 0.02 ppm in 10-2M CaC12 with EDTA compared to 2.5 ppm free Ca+ + with NTA might account for the difference. As evident, prohibitively high additions of EDTA and NTA were required to complex high concentrations of calcium ion. The use of both of these agents would result in the accumulation of complexed Ca+ + in recycle water.

Jan 1, 1985

By R. Bruce Tippin

because of the mineral's high monetary value and the spotty occurrence of free gold in the deposit. Setting up a plant sampling procedure by simply applying the usual statistical sampling theory was questionable. Two sampling concepts were considered in the sampling study: o a sufficient number of assays can be taken such that the average determined from these individual samples represents a known quantity of ore. o a sufficient weight of sample can be taken such that when assayed it represents a known quantity of ore. The test program included evaluation of sampling techniques, sample preparation and analytical methods. The overall sampling program is depicted in Figure 2.

Jan 1, 1985

L&M have been involved on the Shotover since 1980 when we joined Jack and Barney Ryan, who had started in 1972 with gold at $45 per ounce after a successful career as roading and demolition contractors in Christchurch. The first 85 tonne plant was a typical NZ trammel-riffle table plant with an armour plated hull for surviving Shotover floods, and was fed by a 53 tonne UH20 excavator. All this gear had to be carted in over the Skippers road on a small truck or sledge for the heavy loads. This operation was successful and generated the cash flow to sample the lower section of river and plan a second plant. To reduce fine gold losses this was planned to be a jig recovery plant and also included a vibrating screen which saved space and weight over a trammel. There are five flowlines of primary jigs and one secondary, followed by two Knudsen bowls for cleanup.

Jan 1, 1985

By John K. Hammes

INTRODUCTION This introductory paper presents a description and definition of what the finance function is and what it specifically means for the mining industry. In its simplest terms, finance is, "management of money matters". As an area within the discipline of business administration it draws heavily on the related fields of economics and accounting, and to a lesser extent on marketing and production. MINING FINANCE DEFINED In preparing to write about what finance means to the mining industry, I asked a number of mining people the question, "What does mining finance mean to you?" Most responded that mining finance was "How a company borrowed money for mine development", and perhaps half those questioned included "raising equity" in the definition. It is not surprising that the mining industry concept of finance is the providing of funds needed for the objectives of the business, for that was once a view shared by authorities in the field of business administration. Further, it is certainly the area where much of the emphasis has been placed in the past ten to fifteen years as the industry struggled with the development of more remote and more refractory or lower-grade orebodies while profitability and internal cash flow were below expectations. No wonder project finance became such a popular topic. Twenty years ago it is probable that the emphasis would have been on mine valuation, for that subject was the area of finance then most often examined in industry publications. Papers concerning the pros and cons of payback, internal rate of return, and discounted cash flow appeared regularly. Let's examine the following situations, each the result of a financial decision: - Funding the exploration program in a developing country was accomplished by buying the next six-months budget needs in local currency. One week later the currency devalued 30 percent. If the purchase had been delayed or the local currency borrowed short term, a substantial saving would have been made in funding the program. - A major mining company borrows heavily to finance both expansion of its primary mining business and its entry into several new industry segments. When markets for all of the commodities it produces turn down for a prolonged period, there is concern over the adequacy of cashflow to cover debt service in addition to other company needs. The company's financial officers, however, had arranged very large committed credit facilities from numerous financial institutions which assured the availability of funds for several years. This enabled the company to implement a strategy to conserve cash, sell assets and survive until conditions improved. Further, short term suppliers of credit also were comfortable with the assurance that longer term credit was there to support them. -A medium size mining company financed several mines independently with limited obligations on the part of the parent company. The company decided to refinance the operations under one agreement. More flexible terms, lower interest cost and a longer tenor financing were achieved in return for assuming the risk as a direct obligor. - The exploration and development group of a large mining company proposes to develop a new mine in a country in which the company does not presently operate. When the investment is rejected they are advised that one reason was that the reinvestment assumption inherent in the discounted

Jan 1, 1985

By F. D. Ball, D. E. Gemmell

"Coal mining in New Brunswick dates from the year 1639, when, as today, coal was produced from the area surrounding Grand Lake near the geographic centre of the province. Current production by N.B. Coal Ltd. is approximately 453,000 tonnes per year and comes from a single, thin Pennsylvanian age seam. The history of development and understanding of the geological setting of New Brunswick coals is discussed, beginning with the work of A. Gesner in 1839. The lithostratigraphic sub-divisions of the Pennsylvanian strata proposed by various workers are summarized and the present hypothesis that only biostratigraphic subdivision is possible is detailed. The Pictou Group, which includes the New Brunswick coals, consists of repetitive sequences of sediments consistent with flu vial and upper delta plain sedimentation. The development of coal mining in the province has progressed from horse-powered stream-bank stripping operations prior to the late 1800s through to the present use of open stripmining techniques utilizing eight walking draglines of various sizes. During the intervening years the introduction and eventual phasing out of underground mining occurred with the near termination of the coal mining industry in the province prior to 1973. The coal seam worked by N.B. Coal Ltd. averages 46 cm in thickness, has never been found to be more than 76 cm thick and has both high ash (12.4 -31.1%) and sulphur (4.9-7.8%) content. The wide variety of coal beneficiation studies and tests completed on New Brunswick coals have lead to the conclusion that a washed New Brunswick coal product could be expected with 10 to 12% ash, 5 to 6% sulphur, and 30,225 to 31,388 1/gm. Recoverable coal reserves, including those in the area licenced to N.B. Coal Ltd. and those licenced, although not yet in production, to both the St. Lawrence Cement Co. Ltd. and Provincial Holdings Ltd. at Lake Stream and Beersvil/e, total 60 million tonnes. At present, coal in New Brunswick is removed from prospecting and staking and all existing and future coal exploration and development will be administered by agreement under the Mining Act. Based on the results of a recently completed drilling project undertaken by the Department of Natural Resources, seventeen coal exploration blocks which carry minimum work commitments will be offered to the New Brunswick Electric Power Commission on a sixty-day first right ofrefusal basis. Those blocks not taken up by the Power Commission will be offered under the same commitments to the private sector."

Jan 1, 1985

By A. Darragh

"Past Growth The Canadian coal industry has grown rapidly during the past two decades. Coal production increased over four-fold between 1965 and 1982; consumption almost doubled, imports remained relatively flat, exports soared and total demand increased nearly two and a half times. Coal production grew during this period at an average rate of 8.60/o, compounded annually; this remarkable performance is shown in Table 1 and Figure 1. The relationship between production and consumption is shown in Figure 1, where in 1981 the total Canadian production of coal for the first time exceeded total Canadian consumption. ln Figure 2, the relationship between imports from the United States and Canadian coal exports is shown; in_ 1981 again for the first time, exports offshore exceeded imports into Canada. The rapid growth in Canadian coal use between 1965 and 1982 followed a major decline after World War II, as the country moved rapidly to an oil based economy. Changes in consumption patterns between 1945 and 1982 are shown ~n Table 2. Railway consumption of coal was reduced to zero m the early 1960s. The industrial and domestic consumers market share fell from about 660/o in 1960 to 6.70/o in 1975; this share, however, appears to have stabilized in recent years and actual volumes can be expected to increase in the future. The steel industry's share of the coal market fell over the same period, but the volume in recent years has remained fairly constant at about seven megatonnes per year.Perhaps the most significant change in consumption is in the share of coal consumed in the generation of electricity; this has increased from 80/o in 1960 to over three quarters of the total Canadian coal consumed in 1982. This increase in thermal coal consumption has been supplied by indigenous coal, and was accompanied by a decreasing share for coal imported from the U.S.A. into central Canada. It is expected, because of the nuclear power commitment in Ontario, that this share will continue to decrease, although the total volume of coal imported may increase slowly over time. This will likely also have a dampening effect on future coal sales to Ontario from western Canada."

Jan 1, 1985

By John R. Bartels

This report discusses an improved method for rerailing underground railcars devised in a joint effort by the Bureau of Mines and Hoesch MFD. This improved method utilizes a lightweight hydraulic ram with hand-pump activation to move a bridge-mounted roller carriage in conjunction with steel-reinforced air-lift bags. This method provides a lightweight portable system in which only two workers are required to perform the mine car rerailing operation. Because of the very narrow confines in underground mines, use of overhead cranes and other surface rail techniques is not possible. This new system is designed for very low profile work, and provides the necessary lifting force from light- weight compressed-air bottles.

Jan 1, 1985

By A. W. Randall

Geological Aspects of Ore Reserve Estimates of Pine Point District Zinc- Lead Deposits, N.W.T. Zinc-lead ores of the Pine Point District, Northwest Territories, Canada are hosted in paleokarst cavities within a Middle Devonian carbonate barrier complex. Of the nearly 100 deposits found, most are irregularly distributed along two main regional stratigraphically controlled trends. The ores, which occur predominantly as open space filling, form deposits most of which average one million tonnes in size with an average grade of 10% combined zinc plus lead. Geological features related to karsting control not only distribution of deposits but also their shape, size and grade. The higher grade ore in these deposits generally occurs in a relatively small core area. Consequently, accuracy of reserve estimation is dependent on drill hole density and understanding of karst geometry. Several case examples will be reviewed to demonstrate the relationship between shape, size and grade of deposit, geological reserves and drill hole density, along with a discussion of geological ore reserve estimation methods.

Jan 1, 1985

By Mark S. Sanders

The purpose of the present study was to develop and test improved Type V workvests for use on dredge operations. The goal was to design workvests that would be more comfortable to wear, would interfere less with task performance, and would better meet the needs of dredge workers. It was hypothesized that by attaining these goals, the resulting vests would be worn more often and would be kept buckled more of the time than traditional vests. The study involved three major phases. In Phase I, visits were made to dredge operations and a definition of the problem was developed. Problems with current vests were identified and working conditions and tasks surveyed In Phase II, prototype vests were developed and laboratory tests were per-formed to assess comfort and interference. In Phase III, the prototypes were modified and field tested with actual dredge operators and workers.

Jan 1, 1985

By Robert G. Paul

President Reagan's Exclusive Economic Zone (EEZ) Proclamation of March 10, 1983, extended United States ocean jurisdiction 200 nautical miles offshore our coastal states and territories. The accompanying policy statement noted that this action was a result of recently discovered deposits of polymetallic sulfides and cobalt-rich manganese crusts, which could be a major source of minerals important to the U.S. economy and security. Within these 3 billion acres of exclusive economic jurisdiction, the United States has sovereign rights to explore, develop, conserve, and manage the mineral and other natural resources of the seabed. The President has directed the Department of the Interior (DOI) to encourage exploration and production of minerals from this area. The DOI, through the Minerals Managment Service (MMS), is responding to this presidential directive by developing a leasing program for nonenergy minerals in the EEZ. The authority to develop this leasing program is the Outer Continental Shelf Lands Act of 1953, as amended in 1978, which authorizes the Secretary of the Interior to grant leases for oil, gas, sulfur, and other mineral resources on the Outer Continental Shelf (OCS). The Solicitor of D01 has determined that the definition of the OCS for legal purposes extends at least 200 nautical miles offshore of our coastal states to the EEZ boundary. Section 8 (k) of the Act allows the Secretary to lease minerals, other than oil, gas, and sulfur, on the basis of competitive bonus bidding and under such terms and conditions as he may prescribe at the time of offering the area for lease.

Jan 1, 1985

This publication summarizes the research (in-house and contract projects) programmed by the Bureau of Mines for fiscal year 1985 (October 1, 1984-September 30, 1985) under its Health and Safety Technology Program. The objective of these projects is to provide an ordered and sequenced advance toward the Bureau's overall goal of providing the system technology required to create a more healthful and safer working environment for the Nation?s mining and minerals processing workers.

Jan 1, 1985

By Rod Heath

The Saskatchewan industry has the advantages of an ore body of a size and consistency unmatched anywhere else in the world, and large, efficient mines with production costs that compare favourably with those in other countries. On the minus side, Saskatchewan is remote from most major markets, and producers face a distribution challenge to reach the offshore markets which is the main focus of this presentation. One of the characteristics of the world potash business is that all of the major sources of production are located in the developed areas of the world, while there is no significant production in any of the highly populated developing countries. The major potash producers are located in Canada and the United States, in West Germany, France, Spain and the U.K., in Russia and East Germany, and in Israel and Jordan. There is currently no significant production in any of the countries in Asia (with the exception of Jordan where a plant is currently in the start-up phase), Africa, Latin America or Oceania, and all of these areas must, therefore, import a11 of their potash requirements from the producing countries.

Jan 1, 1985

By F. A. Edwards

The Macassa Division of Lac Minerals Ltd. is a high grade gold mine that has been operating in Kirkland Lake, Ontario for the past 51 years. It produces approximately 120,000 tonnes of ore per year, averaging approximately 18.7 grams per tonne (0.45 ounces per ton) of gold. Over the years, the ore body has been developed to a point where mining takes place below the 1,220 m (4,000 feet) elevation and 1,830 m elevation (6,000 feet) west of the original shaft. The mine is currently serviced by two surface and two winze shafts. (Figure 1). The ore body extends below the 1,930 m (6,400 feet) Level which is the bottom of the existing mining operation. An ambitious underground exploration program has substantially increased these reserves. Concurrent with the discovery of greater reserves, has been rapidly escalating mining costs, particularly labour which constituted 66% of the total cost in 1981. These costs continued to escalate as the major proportion of mining was carried out to the west, far away from the existing hoisting systems. This required a three lift hoisting system for men, materials and ore. In addition to the increased travel time and ore handling expense, increased humidity, temperature, ventilation and compressed air losses have added to the inefficiency of the operation. As a result, studies were initiated in 1980 to assess the future of the Macassa operation. The results of the studies indicated that a new deep shaft with a potential to hoist from 2,135 m (7,000 feet) or below was the most attractive option. Detailed design of the shaft and associated surface plant commenced in January, 1982 and the following milestone dates were achieved: 1980 - initial study of hoisting and haulage facilities; January, 1981 - ore reserves in excess of 1 million tonnes of ore at 18.7 g/tonne (0.45 oz/ton) confirmed; March, 1982 - preliminary study of Macassa No. 3 Shaft completed; April, 1982 - permanent hoisting plant purchased; June, 1982 - site clearing commenced; September, 1982 - shaft collared; May 1, 1983 - shaft sinking commenced; February 11, 1985 - shaft reached 1,600 m (1mile); December 1, 1985 - shaft scheduled for completion.

Jan 1, 1985