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By Karl J. C. Harries

"12.1. NO DEPRECIATION/GAAPAll calculations and computations relating to the Royalty shall be carried out in accordance with generally accepted accounting principles consistently applied to the extent that such principles are not inconsistent with the provisions of this Schedule and the agreement attached hereto, it being specifically agreed that nothing herein contained shall permit, or be construed to permit, the Operator to deduct any amount for depletion, depreciation, amortization or any deduction that represents a non-cash outlay.Comment: In cases like net profit royalties where recoupment of prior expenditures is permitted, care should be taken to avoid any implication that depreciation may also be taken. It is only logical and equitable that Property Owners should not be permitted an apparent ability to “double dip” with respect to deductions. A provision like this example should accomplish the task. It will be noted that the example specifically contemplates that the negotiated arrangements will prevail over any requirements of GAAP. Accordingly, if the parties agree to an unusual formula for recoupment, it will not be set aside to accommodate GAAP requirements. Under GAAP, revenues and expenditures are accounted for on an accrual basis. In addition, it specifically prohibits the taking of non-cash deductions, which is in keeping with the concept of recoupment.Although in some ways the example states the obvious and could be considered redundant, its presence, especially in provisions contemplating recoupment, makes it clear to the financial people that there may well be some variations from normal practices dictated by GAAP, while at the same time confirming the availability of GAAP to fill any voids.The accounting profession often makes the caveat that application of GAAP is an “art”, not a “science”. GAAP do not provide a cure-all and can create problems that will have to be addressed. For example, GAAP contemplate that asset costs are to be reduced by investment tax credits, which can cause a problem for a payor with more than one mine."

Jan 1, 2003

By P Church

What is the best method of splitting a sample from a reverse circulation drill rig? How important is it to obtain a correctly split sample? What is the impact of an incorrectly split sample? These are just a few of many questions asked daily in the mining industry with regard to sampling. Modern sampling theory is well described in the literature in texts and is taught in short courses throughout the world, however little has been published on the relative performance of sample splitting devices used in the field. This paper compares the performance of the Jones tiered riffle splitter with a cone splitter manufactured by SGS Metal Craft in Western Australia. The testwork was carried out at AnglogoldÆs Sunrise Dam Gold Mine, 55 km south of Laverton in Western Australia. Mineralisation at Sunrise Dam is hosted in a structurally complex framework of shear zones with dips that range from steep (70¦) to shallow (25¦). The deposit is characterised by significant amounts of coarse gold, which presents a challenge in sampling, analysis and grade estimation. The three major areas where sampling errors can occur are in drilling, sampling, sample preparation and analysis. Sampling errors attributable to drilling and sample preparation often far outweigh the errors made at other stages in the process, however historically most effort to identify sampling errors has concentrated on the laboratory and analytical procedures. Splitter design and cleanliness can have a large impact on sample collection and preparation. Splitter performance was tested with respect to sample weights, particle size distribution, and gold grade consistency. The aim was to determine if each particle has an equal probability of being sampled, the resulting sample has integrity, and if any segregation problems occurred. The cone splitter was found to provide the best split in terms of particle size distribution, with no apparent size bias. Duplicate samples had more comparable masses than those provided by the riffle splitter. Most importantly, the cone splitter gave less grade variability between duplicate samples than the riffle splitter. Testwork also confirmed that, like the riffle splitter, the cone splitter must be oriented vertically and the design of the rig or cone splitter trailer should accommodate this requirement.

Jan 1, 2003

By G. A. Brooks

Reactive ball milling has been proposed as a new route for producing carbides from oxides through carbothermic reduction. It is claimed that through milling oxide and graphite powders to the nanoscale, amorphous materials with very high reactivity are formed, that allows for easy transformation of the starting material to another in a subsequent thermal process. Thermodynamic analysis of this proposed process suggests that unless particle sizes are reduced to below 10nm, then reduction in size alone cannot explain a change in the stability of oxides. Even with nanometer scale powders, the products formed need to have a lower total surface energy than the reactants before a chemical change will occur. A model developed by Bhattacharya and Arzt for predicting localized temperature changes based on milling conditions suggest that temperature rises less than 400 K will be achieved in laboratory conditions. The present calculations suggest that nanometer scale powders formed through high speed ball milling (> I 0 mls) may have undergone a process analogous to melting and quenching. Further work is required to fully distinguish these features.

Jan 1, 2003

By P. Somasundaran, G. Anastassakis, Z. Pan, D. R. Nagaraj

Gums are often used as depressants for talceous gangue minerals in the flotation of nickel and platinum bearing ores. However, the mechanisms of gum adsorption on talc are not clearly established. In this work, adsorption of guar gum at the talc-solution interface is investigated using spectroscopic and allied techniques. Guar gum adsorption on talc is not affected significantly by changes in solution conditions such as pH and ionic strength. Electrokinetic studies showed that guar gum decreased the negative zeta potential of talc but did not reverse the charge. Fluorescence spectroscopy studies conducted to investigate the role of hydrophobic bonding using pyrene and dansyl probes showed no evidence of the formation of hydrophobic domains at talc-aqueous interface. Urea, a hydrogen bond breaker, reduced the adsorption of guar on talc to the same extent as that for guar/alumina system, in which hydrogen bond plays an important role. All of the above results suggest that one of the main driving forces for guar adsorption on talc is hydrogen bonding rather than electrostatic or hydrophobic force.

Jan 1, 2003

By J. Kern, M. Cain, T. Torries

Until recently, the generation of electricity was regulated in all states, and the value of generation assets in a regulatory environment for ad valorem taxation were based largely on the book value of the plant plus the rate of return on capital allowed by the state regulatory agency. This method of appraising utility generation assets is inappropriate in a competitive environment because past capital expenditures are not relevant in a competitive environment. However, it is not clear what valuation methods are appropriate after restructuring. This paper identifies important problems and advantages of other appraisal methodologies and makes comments on various valuation and taxation methods.

Jan 1, 2003

By Dean E. Matthews

The concept of a pile for construction is credited to a Neolithic tribe called the "Swiss Lake Dwellers" who lived in what is now Switzerland about 6,000 years ago. They used piling, not for supporting heavy loads as we do today, but for elevation to protect themselves from wildlife. The Romans often used piles, and built many structures, including buildings, homes, bridges, roads and viaducts on piling. The Romans built the first bridge across the Tiber River in Rome on timber piles in B.C. 1620. Homes in the cities of Venice and Ravenna were built on piles from B.C. 100 to A.D. 400. The Romans also built the first bridge across the Thames River in London in A.D. 60 on timber piling.

Jan 1, 2003

By Trevor R. Ellis

"The valuation of mineral properties in the U.S. is only partially regulated. The regulations which have jurisdiction or impact appear to have such mainly as a consequence of unintended fallout, since the regulations were designed for other purposes. Court case history can also be important. The combined results are a mixture of bad and good, with important lessons to be learned.Since 1981, the Securities and Exchange Commission has prohibited U.S. listed companies from reporting quantitative estimates of mineralization and the value of mineralization, other than proven and probable reserves. This results in the minerals appraiser (valuator) working with a shortage of data in his everyday work, both on the subject property and in sales analysis.Between 1989 and 1995, all 50 states and essentially all Federal agencies adopted the Uniform Standards of Professional Appraisal Practice (USPAP) for real property appraisals (valuations). The major national appraisal societies also require their members to abide by USPAP. A significant portion of minerals appraisals must now follow these standards. This paper will discuss the content of USPAP. It provides a very good framework for the valuation of a minerals property or a mine, both as real property and as a business. However, the credentialing standards for real property appraisers are now prohibitive for minerals appraisers."

Jan 1, 2003

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

Jan 1, 2003

By Markus A. Reuter, Bernardete Castro, Antoinette van Schaik, Han Remmerswaal

This paper describes the inseparable relation between product design, liberation, and metallurgical recovery in the optimisation of the recycling of passenger vehicles. This is illustrated by the use of an optimisation model that uses among others a material combination matrix based on metallurgical process data, which depicts the consequences of the quality of intermediate recycling products on the metallurgical material recovery and final alloy metal quality. Various simulations will illustrate the effect of changes in product design and hence liberation on the recycling of end-of-life vehicles. Although this paper focuses on cars, the discussion is equally valid for any end-of-life product. Calibration of the model will be discussed with reference to experiments carried out in order to study the optimal recovery of aluminium applications used in passenger vehicles.

Jan 1, 2003

By Graham A. Davis, Michael Samis

The dramatic fluctuation in metal and energy prices in the last few years is causing mining companies to consider alternative analytical methods for mine design and valuation. The goal is to improve insight into unforeseen changes in the economic and project environment and to design projects that take advantage of management's ability to respond to these changes. Such flexibly managed projects will contain value that cannot be measured using traditional engineering economic approaches, further motivating the used of alternative, modern valuation methods. This paper considers the valuation of an uneconomic low-grade resource at an open pit gold mine using two of the most popular modern valuation methods, Dynamic Discounted Cash Flow and Real Options. Our analysis demonstrates that the conventional valuation method may incorrectly represent the value and risk attached to mining this type of resource because it is unable to recognize management's ability to respond to future events in a manner that minimizes losses and exploits advantageous business conditions. The results of this paper highlight the importance of recognizing flexibility and business uncertainty in both mine design and valuation.

Jan 1, 2003

By Gabriel Riveros

Fire refining of copper consists of two stages copper oxidation and copper reduction. Very frequently the capacity of the anode furnace is determined by the rate of copper reduction. The analysis of factors affecting the rate of the oxygen reduction from a liquid copper with solid carbon or injected hydrocarbons pointed out the role of the mass transfer in a liquid copper in final stage of the reduction. Experimental results of copper reduction with graphite and injected natural gas in laboratory- scale crucibles showed two stages of the reduction process with a sharp change of the controlling mechanism. The estimated dynamic surface area of gas bubbles based on the measured bubble frequency and the gas flowrate allowed for the detennination of the reaction constant as a degree of the partial pre-combustion of the air/natural gas mix. The variation of the used reductant as a function of the oxygen concentration and temperature has been evaluated based on the detennined kinetic model. The intensification of copper reduction in fire refining has been discusses on the basis of obtained kinetic data and analysis of various factors detennining the time of reduction.

Jan 1, 2003

By S. F. Dudka, T. Dang, M. L. Wong

Abstract - The Nui Phao W-F-Cu-Au-Bi deposit is located in one of the poorest regions of northern Vietnam. The deposit is currently undergoing a pre-feasibility study by Tiberon Minerals Ltd., with a view to developing what would be the largest WO3 mine and one of the five largest fluorite mines in the world. The project is being planned in close compliance with World Bank and national guidelines for environmental and social protection. Development of the mine is anticipated to bring the following benefits: remediation of serious pre-existing environmental conditions (natural and anthropogenic heavy metal contamination and acid rock drainage); provision of employment and training, and thereby wealth, to local communities; significant tax and royalty payments to government, which will be reinvested as social spending; and development of municipal and industrial infrastructure to build sustainable post-mining communities. The role of governments at all levels is critical in guiding and facilitating this process. This paper was written prior to development of the mine, and relays the intentions of the developers. Future studies will be needed to evaluate the degree of attainment of sustainable development objectives, both during mine operation and after closure.

Jan 1, 2003

The minerals industry contributes to the economic growth, prosperity and quality of life of nations, particularly in areas where there might be limited opportunities for employment in other sectors. However, notwithstanding their economic importance, the minerals extraction and processing industries are considered to have significant impacts on the surrounding environment. In recent years many mines have implemented modern monitoring technology and modelling of the monitored environmental parameters to provide scientifically proven indicators about the state of the environment. The flexibility required by the minerals industry to respond dynamically to a changing natural, social and economic environment has become a major consideration. Whilst the notion of continuous improvement is embodied within most environmental management systems, what is now required is a structured audit trail which tracks the flow of resources through the production process to the ultimate environmental impact associated with their consumption, transformation and disposal. Imperial College is coordinating an EC funded project, which is developing a methodology to minimise the ?full life-cycle? impact of metalliferous mining projects, adopting an integrated approach to production and process design, and the costs involved. In order to develop a life cycle assessment (LCA) system that will incorporate different types of data related to the minerals extraction operations, a data inventory was designed and coded in an object-relational database model. The calculation procedures accounting for the input/output balance of the alternative scenarios for mining production, processing, waste disposal, monitoring, and their financial implications are being programmed into a software system. This paper presents the rational and innovative aspects of this work. The methodology developed for the life cycle database is illustrated for the mining production and gaseous emissions components of the system.

Jan 1, 2003

By Ramon V. V de Araújo, Roberto B. E Trindade, Pablo R. Fica-Piras

"Lead has been reported to affect blood vessels and kidneys. It also produces adverse effects in the mental and physical development of children and nervous system of adults. It is also considered as a possible cause of cancer. Because of all these threats to the human life, the reduction of its environmental occurrence, by means of recycling, is an important additional advantage to the usual ones derived of the procedures of the secondary metallurgy: lead can be recycled several times maintaining its characteristics equivalent to the primary one.Furthermore, this way of producing the metal avoids the environmental impacts of primary lead melting. Also, as an additional advantage, it triggers the metallurgical process with a raw material in what we observe higher lead content than in the natural ores. Some of the potential sources for these purposes are: ashes, slags, electrode residues, anodic muds, spent electrolytes, solid and liquid wastes, industrial or automotive catalysts, worn-out or obsolete equipment components and/or final consumption products.About 40% of world’s lead production comes from automotive batteries, mainly composed of four parts: plastic box, electrolyte (diluted sulphuric acid), contacts and connectors of Pd-Sb and plates (PbSO4, PbO2 and PbO). The plates represent 75% of the total mass. Metallic parts can be melted at moderate temperatures and then refined. The remaining fraction, constituted by the non-metallic portions, can be recovered by hydro and electro-metallurgical routes. These routes are preferred instead of pyrometallurgical ones due to the ultimate emissions of lead particulates and sulphur dioxide.The principal constituent of the residual paste of batteries is the lead sulphate. In this process, the paste is treated in two stages: in the first, lixiviating with Na2CO3 (desulphurization of the paste), obtaining PbCO3 and Na2SO4; in the second, the lead carbonate is lixiviated with HNO3, producing Pb(NO3)2, soluble, that can be converted to metallic lead by electrolysis. The reaction of PbSO4 with Na2CO3 in aqueous solutions is fast: the global rate is limited by the diffusion of the carbonate ions inside the reaction medium."

Jan 1, 2003

By Andrzej Warczok

Liquid slags produced in smelting of copper concentrates contain copper in a dissolved form as well as mechanically entrained inclusions of copper matte. Coalescence and sedimentation of inclusions during slag cleaning plays a key role in copper recovery. Liquid matte inclusion in a molten slag presents a system of metallic conductor in an ionic solution. Constant electric field induces migration of the matte droplet along the current lines. Additional phenomena occur in a system under crossed electric and magnetic fields. Electromagnetic buoyancy force acting on the inclusion affects its settling rate. Electromagnetic buoyancy force of insulating and metal spheres has been measured in a liquid synthetic slag. It was found that depolarisation of the metal sphere, related to the electrode reactions occurring in the surface, plays an important role in the determination of the direction and magnitude of the electromagnetic force. On the basis of the existing theories and results of measurements a mathematical model describing the behaviour of metallic inclusions in the liquid slag under the influence of crossed electric and magnetic fields was developed. Simulation of behaviour of copper matte inclusions under crossed fields showed trajectory of motion in a liquid slag as a function of the slag properties and the inclusion size.

Jan 1, 2003

At its Copper Cliff Smelter, Inco Limited processes a bulk copper-nickel concentrate in two Inco oxygen flash furnaces. The furnace matte is converted to low iron matte for further processing, and the molten converter slag is recycled to the flash furnaces. The flash furnace slag is discarded. Natural gas or coke supplies a minor proportion of the process heat requirements, thus limiting the flash furnace matte grade to the target 45% CuNiCo. Coke addition to the furnace offers a potential means of establishing a reducing barrier on the surface of the molten bath. Such a practice would be conducive to producing sulfur deficient (partially metallized) matte. At the same iron content, the iron activity of sulfur deficient matte is higher than that of regular matte. A supernatant coke barrier could, therefore, be expected to lead to higher nickel and cobalt recoveries, reduction or even elimination of magnetite furnace bottom build-up and increased sulfur elimination as SO2 in the flash furnace. Preliminary experiments were conducted in a mini plant flash furnace to investigate the effect on process metallurgy of the suggested modified scheme. This paper presents the experimental results and discusses key aspects of the possible operation of the Inco flash furnace with a coke barrier separating the freeboard from the molten bath.

Jan 1, 2003

By Karl J. C. Harries

"1.1. WHAT ARE AGREEMENTS AND HOW ARE THEY FORMED?In order to have an agreement, at common law, there must be an offer, acceptance of that offer, and consideration passing between the parties. In addition, the material terms (i.e. the basics or substance) of the agreement must be discernible, preferably by means of documentation. Although these concepts may appear simple and straightforward, the law relating to them is voluminous and complex. Some brief comments are worthwhile.• Offer/acceptance: Both offer and acceptance should be in writing, but they need not be. The actions, conversations, and/or correspondence of the parties may constitute either or both of them. Notwithstanding, the local law or practice of a jurisdiction will impose some specific requirements for certain types of agreements. If these requirements are not met, the agreement may be unenforceable. For example, Ontario’s Mining Act requires transfers of unpatented mining claims to be evidenced in writing and recorded.1• Consideration: Consideration is usually thought of as being money, but it can be virtually anything, even “the premises” (i.e. the mutual covenants or promises contained in the agreement itself). In addition, if one party, relying upon the offer of another, does something to his detriment, then the doing of the act can be considered to be an acceptance of the offer and, under the legal concept of “detrimental reliance”, can also be consideration. Whether or not detrimental reliance exists will depend upon the circumstances of each case.2• Material terms: The requirement that the material terms of an agreement must be discernible does not mean that all of the terms of an agreement must be documented or even have been considered, just the basic or material ones. In addition, it will be up to a judge to decide what is material – not necessarily the parties. In order to establish the material terms, a Court may look at all relevant documentation and may hear oral evidence. It will resist “writing the agreement”"

Jan 1, 2003

By Åke Saudström

An EAF dust sample generated in a scrap based steel mill was treated by a combination of hydro- and pyrometallurgial techniques. The EAF dust contained mainly ferritic spinels forming solid solution phases according to the general chemical formula (MnxZnyFe1-x-y)Fe2O4 and other oxide phases such as ZuO. CaO and Ca2Fe2O5. The EAF dust was first treated by hydrochloric acid leaching at p8=3 which dissolved 63% of the zinc. The pyrometallurgical treatment of the leaching residue was studied using an induction heating system to simulate some important operations of EAF smelting of the residue in combination with steelmaking. The leaching residue was mixed with carbon powder to obtain a mixture with 52.1% ZnFe2O4 and 175% carbon. The mixture, scrap, and slag former were charged together in a crucible and heated to attain a melt temperature around 1650°C. The effects of different amounts of mixture on the zinc balance and iron recovery were examined. Based on the test results, suggestions are made for the EAF recycling procedure of the leaching residue.

Jan 1, 2003

By Mitsuru Tanahashi

In order to develop an effective process for the production of from metallurgical-grade one (MG-Si), the oxidation removal of boron from molten MG-Si was investigated at a solar-grade silicon (SOG-Si) 1773K by the following two CaO-saturated CaO-CaF2 flux treatment processes. I) Boron removal by flux addition onto the molten M6-8 followed by oxygen gas injection into the melt (Two-stage connecting process). II) Boron removal by simultaneous injection of flux powders and oxygen gas into the molten MG-Si (Simultaneous injection process). These processes can establish the special condition of both high basicity of the flux and the high oxygen partial pressure at the boron removal reaction sites. Through these processes, especially by the simultaneous injection Process using a flux powder injection equipment, the boron content in MG-Si can be efficiently reduced. The obtained results clarified that both processes should be conducted for a time period as short as possible by using as much flux as possible. By repeating the simultaneous injection process for 60 s three times under the optimum operating conditions determined in the present study, the boron content in MG-Si can be reduced from 14 to 4.7 mass ppm.

Jan 1, 2003

By Mark F. Vancas

Virtually every new process plant project goes through the ?Feasibility Study? phase before actually being built. The Feasibility Study is used by the owners and the bankers to evaluate the economics of the project and determine whether or not the proposed investment meets their respective investment guidelines. With a positive result, the project is approved and goes to construction and operation. Then, the actual costs are incurred and these actual costs may or may not agree with what the Feasibility Study predicted. Just how good have Feasibility Studies been? This paper looks at various projects and compares predicted to actual results and also gives information on how to spot a poor feasibility study.

Jan 1, 2003